India is emerging as a business market for the futuristic companies to invest and gain out of the potential of the domestic Indian market. The plan in regard to the country’s growth is based on providing not only foreign investment but also the domestic, private and public companies to gain out of the new policies in regard to business standards. This feature has been made possible with the advent of introducing new reforms for the investors like FDI etc.
By providing suitable environment and utilization of the resource-rich lands of the country both domestic and foreign investors are keen on providing their investments in the country. This has helped in raising the economic standards of the nation, employment opportunities, living standards of people and per capita income have increased. India is attracting not only foreign companies but also the domestic multinationals are now keen in investing with India on large scale. In regard with domestic companies like Cochin Shipyard, Larsen and Toubro, Reliance Industries etc. are also gaining momentum in investments.
Out of many sectors for investments, most of it is seen within the defence sector. India’s defence sector is regarded as the most beneficial and growing industry within India. With the second largest standing army in the world, India’s defence is the biggest venture for investment. On similar stands, defence has been expanding at a global rate. It is envisioned that it will be soon to be leading purchaser of arms and even the strategic market for investment.
All three tiers of defence air, land and water are emerging in a blooming way. The domestic multi-nationals are keen to invest in the defence sector. With the Indian Navy expanding and trying its level best to emerge on the top of the world, it has issued its demand for multiple anti-submarine ships. It had asked for tenders from various investors to propose their deals to the Indian Navy. Amongst the top bidders include, “Larsen and Toubro Ltd, Reliance Naval and Engineering Ltd, Garden Reach Shipbuilder and Engineering Ltd, Goa Shipyard, Hindustan Shipyard and Cochin Shipyard Ltd”.
The lowest bidder was supposed to get the deal of providing 8 anti-submarine ships to the Indian Navy. The project was estimated to be around 5,400 crores. The Cochin Shipyard being the lowest bidder has gained this tender and is now in a process to build 8 anti-submarine ships. This project will be held in close cooperation with the Ministry of Defence of India. It is country’s long-standing ASW shallow-water craft project. There was participation from both public and private sector multinationals in the bidding process. But the Cochin Shipyard being the best out of the deal bagged the contract. This contract will provide a great boost to the defence and even to the Cochin Shipyard. The Navy’s project will enhance the submarine capacity of the country and will make advancements in the core capabilities.
There has been in the news that Indian defence ministry’s Defence Acquisition Council approved a tender for nearly 16 ASW shallow-water ships in December 2013. The report stated that, the platform which would be built will host to a 700-tons displacement and a range of 200 n miles. Also, the maximum speed which would be attained would feature around 25 kt and an endurance of 1,800 n miles at 14 kt. This calls for a check of the latest developments of Navy which are featured in these ships. This is a large and multilevel featured progress of the Indian Navy.
The first vessel from the side of Cochin Shipyard is deemed to be delivered in next 42 months. This will be a continuing process and after that, the state-owned shipbuilder will deliver two vessels every year. The shipyard’s order was for INR 3,500 crore but before it won the order. The company is indulged in building vessels for the Indian Navy in the past too. It is building an aircraft carrier which is an advanced vessel to carry fighter aircraft in the future.
There has been a great developmental increase in the company’s share in the BSE and NSE. It has raised INR 1,468 crore after listing on stock exchanges of 76.2 times the number of shares on offer. It is mentioned by top officials of the company that this increase would be used for building and setting up a new manufacturing unit. This offer for the company to build eight vessels for the Indian Navy is the first big tender in concern with the company getting initial public offering in August. The ship which would be built by the CSL will feature ASW sensors and equipment, including hull-mounted sonar, variable-depth sonar, and torpedo tubes. This highly modernized feature of advance engineering is a great deal for the CSL to achieve and Indian Navy to utilize it in future missions.
The Indian Navy had planned for the 212-ship fleet as featured in the service’s 15 year Maritime Capability Perspective Plan for the 2012-27. The new eight ASW will be an added feature to this plan of the defence ministry in boosting the strength of Indian Navy. Under country’s Next Generation Corvette programme is assumed to acquire seven to ten ships more. This will add to the basic demand featured by Navy for carrying out the operations in the future. This 120 m platform will feature ASW capabilities as it is for the multipurpose target achievement.
The CSL and Indian Navy working in cooperation with each other will lead to dynamic growth in the defence sector of the country. The nation’s long-standing attribute of being the best will be achieved by this contract. It will not only provide with latest and advanced ships but will be a productive asset as being the public sector company, which would grow eventually by the mean of this contract. The contract of providing eight ASW will lead to developing Indian Navy’s capabilities in global waters. This will create a progressive path for both the CSL and Indian Navy as both will be.
By: New Delhi Times
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