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Tuesday, May 26, 2015

Ajai Shukla: Nurturing shipyards: the case of HSL

Kilo class SSKNotwithstanding the National Democratic Alliance (NDA) government's declared commitment to "Make in India", its procurement decisions adhere to this only sporadically.

The decision to buy 36 "Made in France" Rafale fighters is only the latest violation of "Make in India". Much earlier, then defence minister Arun Jaitley had, in his first procurement meeting on October 29, ruled that Moscow would benefit from a Rs 1,800-crore order to refit two Kilo-class submarines in Russia, even though such refits have been - and must continue to be - done in India.

Mr Jaitley's poor decision relates to the Rs 4,800-crore overhaul of six submarines. It allocates the refitting (which involves modernisation-cum-overhaul) of two Kilo-class boats (as submariners refer to their vessels) to Naval Dockyard, Mumbai, and two HDW-origin submarines to Mazagon Dock Ltd (MDL), Mumbai.

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