Russian company forms joint venture with Indian firm for submarine repair
Pipavav Defence and Offshore Engineering Company (PDOC) on Tuesday announced the setting up of a joint venture with a Russian firm for repairing submarines in India. The agreement with JSC Ship Repairing Centre Zvyozdochka, Russia is meant for medium refits and life certification of 877 EKM submarines in India. “PDOC proposes to execute the program under a joint venture, with 51% stake, consistent with MoD (Ministry of Defence) regulations. This will also mark the first time the work for refit of submarines is being considered for the private sector in India,” the company said in a statement. The estimated value of work proposed to be undertaken by the JV is around Rs. 11,000 crore. As per the agreement, Zvyozdochka will provide technical assistance, including infrastructure support at the PDOC facilities, training of engineers, etc. PDOC technicians will also be closely associated with the first refit to be carried out in Russia. “Refit and modernisation of submarines is an ongoing need for our blue water navy. PDOC and Zvyozdochka are deeply committed to playing an enabling role towards enhancing naval preparedness, which is vital for our national security," said a PDOC spokesperson. The company said that the new venture will help PDOC in undertaking similar work for large submarines used by countries like Algeria, Vietnam and Iran, with potential additional revenues of around Rs. 20,000 crore. Refitting of submarines in India will not only cut the additional cost incurred on transporting a submarine between Russia and India for repair work, but also enhance the operational availability of the submarine for thousands of additional hours. Zvyozdochka selected PDOC as its partner on the basis of the availability of the world-class infrastructure and commitment of Anil Ambani led Reliance Group to transform PDOC into the leading naval and defence shipyard in the country, the statement said.
July 21, 2015 | 6:41 pm IST.