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Defence shipyards losing out due to Higher wage rates, procurement delays Print E-mail
Written by Anand   
Tuesday, 29 November 2011
New Delhi: Defence Shipyards quoted for Naval Offshore Patrol Vessels, Barges, Hovercraft, Fast Patrol Vessels, Interceptor Boats, Cadet Training Ships and Fast interceptor crafts but lost to private yards.

The Defence shipyards have indicated that major reasons of losing out are higher wage rates for labour resulting in increase in overheads and delays in procurement of materials due to adherence to laid down procedures which push up their prices. In accordance with the Defence Procurement Procedure, 2011, Chapter-III, Procedure for Defence Shipbuilding , for indigenously building ships and other naval crafts, Defence shipyards are awarded some contracts on nomination basis while other contracts are awarded on competitive basis. "Defence shipyards are participating with private yards in an open competition. In some of the cases they have lost out to private shipyards," said Minister of State for Defence Shri M M Pallam Raju.

Modernization of DPSUs is being undertaken to enhance the competitive edge in future. Defence shipyards are being equipped with latest state-of-the-art facilities and modern integrated construction methodology; design and production facilities are being strengthened; manpower is being inducted at both at the skilled worker level and at the management level.
Last Updated ( Tuesday, 29 November 2011 )
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