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India : HSL wins a work order involving FSS & LPD from INDIAN NAVY worth Rs 14K-cr
Publish Date : 05-Jul-2016
The Hindustan Shipyard Limited (HSL) has been successful to secure a major work order from the Indian Navy worth Rs 14,000 crore.
HSL, the nations only shipyard with a spacious covered dock, has received this contract after the Union Government took the decision of handing over the works relating to five Fleet Support Ships (FSS) and a pair of Landing Platform Docks (LPD) worth Rs 14,000 crore in total to the company.
Moreover, grounds have been prepared to award the seven-ship building contract on the basis of nomination to the company, which reported a profit of Rs 20-crore in the last fiscal year (FY2015-16).
The work orders will be issued by late 2016 and the HSL will have to complete these projects by 2023, revealed sources privy to the development.
The Central Government, meanwhile, has told the HSL management on its disinclination to provide any financial support to implement the work orders.
And, thus the shipyard will have to generate money to accomplish the job, for which it must take advance payments against the work orders.
The Indian Navy has already decided to dispatch INS Sindhuvir, a submarine of the naval forces, for refitting works. It is anticipated that the work will be initiated in the next January.
HSL CMD LV Sarat Babu stated, The Navy has decided to give us five Fleet Support Ships worth Rs 9,000 crore and two Landing Platform Docks worth Rs 5,000 crore. The five FSS building contract is on nomination basis. In fact, the Navy has decided to construct four LPDs and two of them through open tender system. While attending the ship building works, the HSL will continue its repair and refit works as usual.
The HSL has been successful to become profitable in last financial year (FY2015-16) after suffering financial losses for 35 years, attributable to its implementation of a number of reformation measures in the yard.
