On the Keel laying of India’s stealth Frigates Mission 17 Alpha at MDL, BW
Businessworld’ s Manish Kumar Jha spoke with MDL’s Chairman & Managing
director, Vice Admiral, Narayan Prasad. MDL’s IPO has seen the file
subscription, receiving bids value Rs 70000 cr. CMD talks about Indian navy’s
subsequent technology submarines Mission 75 I, collaboration and its core AIP system
MDL’s IPO has seen file general subscription. How will it increase MDL?
It’s world’s distinctive shipyard with such various set of merchandise. It proves
that folks have immense religion in us. We’re continuously engaged on our
management place in defence ships and submarines.
For IPOs which have occurred until now in FY21, MDL has set the next
Usually referred because the “Ship Builder to the Nation”, Mazagon Dock
Shipbuilders (MDL) has essential function in constructing maritime muscle of India.
Might you discuss such imaginative and prescient and the way MDL gears up for future
MDL has a wealthy legacy of constructing entrance line warships submarines, offshore
platforms and a variety of economic vessels. MDL has performed a really
essential function in contributing to the blue water functionality of the Indian Navy
since we launched into the primary indigenously constructed warship INS Nilgiri. Warship
constructing in India has been the forte of state owned enterprises. The nuances
of warship constructing is completely different from that of service provider shipbuilding.
With the continued help of indigenous shipbuilding business, the Indian
Navy has already reworked right into a ‘Makers Navy’ from a ‘Purchaser’s Navy’.
R&D initiatives, adoption of business greatest practices, benchmarking of our
key processes towards world requirements, enchancment in productiveness needs to be
the important thing drivers that may assist obtain the purpose.
For a rustic that’s predominantly peninsular in nature with a shoreline of
roughly 7500 kms, requires a vibrant and powerful shipbuilding business
for financial in addition to strategic causes. India’s shipbuilding capabilities
must hold tempo with its macro financial growth, market demand and the
huge human useful resource potential that we now have.
MDL’s mission assertion ‘Construct High quality Ships on Time’ displays our aspiration
as a shipyard for continuous holistic enchancment in all spheres of the
firm’s actions. We’re taking a number of steps to stay as a centre of
excellence in ship and submarine constructing. I’ll point out simply 4 of the important thing
initiatives viz Human sources, greatest practices, procurement and
Human sources with the requisite advanced ability units are our most important asset. It
is our focus.
We’ve accomplished a means of benchmarking our key processes with
worldwide shipyards. With this we anticipate worldwide greatest practices to
be adopted within the yard for each ongoing and future applications. We’ve already
applied Enterprises Useful resource planning and likewise gone for e-tendering for
excessive worth purchases to make sure transparency and probity in our procurements. With our modernized infrastructure MDL is able to implementing built-in
building methodology that’s at par with world requirements. To enrich
this upgradation, we’re collaborating with a world shipyard for
imparting the requisite comfortable expertise, reengineering of course of. With this
effort an upgradation of know-how ranges and likewise enhancement of
capabilities are anticipated.
What’s the general order e book of Mazagon Dock Shipbuilders ( MDL)
At the moment we now have an order e book comprising of 4 in quantity venture 15 B
destroyers, 4 in quantity stealth frigates and 6 submarines of P75, we now have
delivered two of them and we’re now constructing remaining 4. As well as,
we’re additionally doing one other vertical which is the refit and repairs of ships and
submarines and that is also a really promising line. So collectively proper now the
order e book represent about Rs. 54,000 crores.
MDL & Naval group joint growth of Scorpene class submarines are
delayed and stretched. Whereas the 4th Submarine “Vela” was launched in Could
2019, what is going to the time line for the remainder?
Two boats have already been delivered and as concerning the third one, we’re
planning to ship in all earnestness by 31st December this yr. On the
most, it would spill over to early January or possibly early February subsequent yr.
And subsequent boats are all being delivered at an interval of a few yr.
So by what I’d say that by mid-24’ or finish of 23’ we’d’ve delivered all
the boats with regard to Residual Four boats.
At this explicit level of time, we’re at a really superior stage within the
building and trials of all of the Four boats. The boat quantity three that we’re
speaking about, has already been to the ocean, a couple of occasions, has operated, and has
carried out extraordinarily properly. It has come for sure upkeep and restore work
which must be undertaken. On completion we will probably be placing her again to sea
and we’re very positive the cardinal dates we must always be capable to adhere to.
MDL with L&T for P751 is scouting for overseas associate below SP Mannequin.
What’s the technological assimilation MDL is on the lookout for? How will the
partnership with L&T will unfold? When is it anticipated to take off?
In the meanwhile each L&T and MDL are the 2 key strategic companions of MoD
which have been recognized by the federal government severally to undertake this
program of P75 I, not collectively. Additional, there are 5 overseas OEMs who’re potential know-how
collaborators. The strategic companions should determine their collaborator
primarily based on techno-commercial deserves.
Proper now I don’t foresee a collaboration between MDL and L&T as we now have
to submit aggressive bids to MoD independently. Having mentioned that we’re very
hopeful due to one cause – we now have the present expertise of constructing six
Scorpene submarines and previous expertise of constructing two SSK class submarines.
L&T however hasn’t constructed a traditional submarine in any respect. Nonetheless, L&T has been a really proud engineering institution for this
nation and we’re all very proud to have L&T with us, creating and
making an attempt to get as many variety of indigenous merchandise with vital
contribution in our journey to self-reliance.
The unique plan of P75 Scorpene submarine to have an air unbiased
propulsion system (AIP), has not materialized thus far. We’re nonetheless
combating AIP know-how for our future project- P75 I. Why might we
not get an AIP system for the Scorpene submarine?
So far as the air unbiased propulsion system is anxious, now these are
very area of interest applied sciences very not often accessible in as we speak’s fight market. I’d
similar to to share with you, we now have an R&D lab with DRDO known as NSTL
Visakhapatnam and manner again in 2002 they began having a tryst with an
air-independent propulsion bundle and so they developed a closed-cycle diesel
engines which is likely one of the apes however this is likely one of the very, very primary
In as we speak’s state of affairs a few navies are claiming to have developed an
air-independent propulsion system, largely primarily based on gas cells. Nevertheless, they
is probably not keen to share these applied sciences with us. In P75I the AIP is
launched with an intention to reinforce the submerged endurance of the boat. AIP
will improve the submerged endurance by could also be about 10 to 15 days vis-à-vis
what’s being achieved historically. It’s envisaged that the overseas associate
within the P75I’ll present the AIP know-how to the Indian aspect.
So, P75 I is likely one of the area of interest applied sciences which has to return out with that it
must be a traditional submarine with an air unbiased propulsion system
for enhanced submerged endurance. And by way of applied sciences that are
accessible on this planet, definitely Germany claims to have all of the commissioned
boats with an air bundle largely once more on the gas cell. We’re additionally listening to
about Navantia from Spain that they’re very quickly going to fee a ship
with one other further bundle, Daewoo in South Korea claims with one of many
boats what they’ve already produced. Equally, even Rosoboronexport, an
Amur-class of submarine which they’re making an attempt to supply to us can be one of many
boats wherein the land trials of air-independent propulsion system is
presently in progress, and so they’re hopeful to supply a product of that sort.
We’re additionally placing an enormous quantity of effort in our indigenous programme of the
air unbiased propulsion system, however the full particulars proper now should not
accessible within the open public area. However I can solely suffice to say that this
will take a little bit extra whereas.
So, the Air Impartial Propulsion (AIP) System would be the core of P75I.
The place is DRDO now by way of creating this know-how as a result of it would
delay this program? Might you share an replace on this – and whether it is being
I’d solely share with you that the indigenous program is at a really superior
stage however actual stage isn’t recognized to me as a result of it’s not totally accessible in
the general public area. They’re additionally placing up an enormous quantity of impetus to develop
as a result of it’s to be built-in with the P75 I for which a RFP is already
anticipated someplace in the long run of October or possibly mid of November this yr
itself. Now a vagueness can’t be retained there.
If, it [DRDO] is to include an indigenous air unbiased propulsion
system every time the boats are going to be commencing their manufacturing, they
needs to be prepared and usable by the point they attain that stage of building
or it has to go for a overseas developed air unbiased propulsion bundle.
So there’s an enormous quantity of hastening up that occuring within the DRDO sector
which is occurring round there however as I’ve instructed you, it’s all the time good
notably in a distinct segment know-how like this one which we match our personal ones
as a result of as soon as we begin crusing these boats what sort of an issue that we’re
going to envisage isn’t recognized. What sort of a upkeep downside will come
out right here, and submarines by and enormous is a really know-how intensive platform
and if it has to stay underwater that’s what the fight effectivity of the
platform and its punch supply capability will discuss that she shouldn’t
come out as soon as she dive.
As soon as the place of the submarine is revealed, it turns into very weak.
So, its power lies in remaining in deep water for a really very long time
undetected. So she shouldn’t come out at any level of time. So with such
know-how getting confirmed we do not need very neat and clear and open discussion board
knowledge accessible. So we should have a really concerted sort of a glance and
this RFP is taking a little bit period of time as a result of we now have to be very, very
clear that if the event programme from the Indian aspect goes to get
delayed, we could delay the programme or else attempt to search for a overseas
However India will all the time look, in case they’ll incorporate the one which is
indigenous growth which would be the greatest one.
MDL’s Nhava Yard is all set for futuristic venture which can have a far
reaching capability, in all probability making MDL the busiest dock. Aside from the
P75I venture, what are the initiatives earmarked?
Proper now, the order e book is about 54,500 crores, and we’re additionally saying that
out of the overall capability that we now have for 11 submarines, we now have solely about 4
in quantity proper now and which additionally we are going to ship in 2.5 to three years from
as we speak. Equally the ship’s programme that we now have eight towards the 10 capability
and these all will get delivered in 5 to 7 years from now. Having talked about
that, we’ve additionally bid for sure applications. The case-in-point is new technology
missile vessels. They’re roughly about 6 in quantity. We’ve already submitted
our bids and the navy will take its personal course of time to determine sure
aggressive bidding and we’ll get to know.
With depleting Naval Finances -reduced from 18% to 13% of the Defence
outlay- how does it have an effect on the modernization as far the MDL is
Creation of a modernized infrastructure at MDL was undertaken within the 1990s as
a partly buyer funded asset. MDL has already accomplished the modernization
and this infrastructure is already in place and is being utilized. The
modernization program was conceived as an infrastructure improve to allow
implementation of the ‘Built-in Development’ methodology of shipbuilding
practiced by superior shipbuilding nations.
Aside from enabling assembling and dealing with grand blocks, the ability will
facilitate huge quantity of pre-outfitting which is able to pave manner for a
substantial discount in construct durations. A 300 T goliath crane that straddles
throughout the slipways, a modular workshop the place grand blocks may very well be assembled
and lifted, an impounded moist basin that may maintain two destroyer sized warships
and two submarines concurrently, a cradle meeting store for assembling the
sections of the traditional submarines, digital shops and so forth have been the foremost
elements of the modernization program. Due to this fact, the discount in Naval
Finances isn’t envisaged to adversely have an effect on MDL’s modernization program.
What’s the export outlook for MDL? And what are the plans for scaling up
By way of export of this explicit shipyard, we take pleasure in a really enviable previous.
We’ve exported 243 vessels up to now which incorporates nations like Mexico,
France, UK, Singapore, Yemen, Iran, Mozambique, however all of them are small sized
utility vessels like multi-purpose help vessels to Mexico, some drizzle to
France, some basic cargo vessels to UK, bulk provider to Singapore, and
likewise water-tankers, cargo barges, lighters, pontus. Now these all are
the place our verticals at sure level of time after we didn’t have a lot of
order e book. Having migrated into the present order place proper now and since we now have a
capability, we’ve an export section which is out there as a result of we’ve been
researching these markets and we’ve visited these markets.
Africa, we’ve engaged with Ghana, Nigeria, Sierra Leone, Cameroon, they’ve a
requirement for floating docks, fishing trawlers, offshore patrol vessels,
quick interceptor crafts and anchor hanging vessels. Center east, Egypt and
Saudi Arabia have a requirement for anchor dealing with decks, Europe-Portugal
require maritime electrical tools, Asia-Bangladesh have massive patrol
vessels and floating dock, South America-Peru they want offshore patrol
vessels FIC’s. We’ve additionally engaged with Brazil very not too long ago. So all these
potentials can be found and we’ve about 14 to 15 brokers distributed all
throughout who give us the result in determine what are the necessities and the way do
we go about doing it. So there’s a large potential. Really we’ve submitted
a few of our bids additionally however simply when the entire thing was shaping up, we’ve this
No matter we now have given to ourselves, we must always be capable to place if not realise
place-in order for about 70 to about 90 crores this yr however over a durations of
about 5 to 7 years it’s to be taken to about 1000 to 1500 crores however what
we’re taking a look at, sadly this we don’t have a giant marker for capital
warships like destroyer frigates and submarines. The nations that we now have in our neighborhood or geographical space out right here, they
do not have their frigates and destroyers. And as they’re all financially very
intensive platforms costing 5000 crores to about 7500 crores they don’t need
to purchase these. So, figuring out a marketplace for these vessels goes to be a
powerful one, I gained’t say no, as a result of if Bangladesh is there, and Sri Lanka is
there and in the event that they’re additionally migrating to accumulate frigates, you possibly can construct for
Will MDL be eager to go to the abroad market and purchase a few of the
present ship-building corporations, positioning as a worldwide participant. Is that this
thought doable so far as MDL is anxious within the close to future down the
We should barely wait and watch what will be the rising
Proper now, so far as the Division of Defence Manufacturing is anxious, we
haven’t migrated to go – I imply that mandate has not been given to us to
migrate and put a foothold on the market and do a merger or acquisition of the –
any shipyard. However ought to there be any such alternative which the federal government
mandates us to do that work, we now have the capability and we now have the aptitude
to do it.
Within the management place on India’s main DPSU, you even have a
larger duty to hand-holding non-public gamers to be the a part of
ecosystem which is able to result in larger innovation & effectivity?
I’ve talked about what’s the imaginative and prescient of MDL. Mission and the imaginative and prescient I’ve
spelt out proper in my opening assertion right here however I can let you know what we’re
doing is we’re not solely making an attempt to execute with the standard and well timed supply
of our initiatives, we’re additionally making an attempt to share applied sciences and we’re making an attempt to
bolster all defence PSU shipyards. Like as we speak, the venture 17 Alpha programme,
the entire designing particulars are being developed out right here. Although three ships
are being constructed by GRSE however the detailed designs are all being performed. The
full provisioning motion of main tools, their worth negotiation which
occurs with all of the distributors for the economic system of scale and a greater sort of a
rebate is all being undertaken and led by MDL. Additionally, their reps are additionally
current right here. In order that’s an enormous quantity of collaborative effort with GRSE and
definitely they’re getting bolstered to supply such sort of stealth frigates
of their premise.
As you’re conscious, we now have 42% of fairness stake in GSL and Goa Shipyard Ltd,
as we speak they’re additionally producing in collaboration with a Russian associate, 2 in
quantity, Talwar-class stealth frigates. We have already got 6 in variety of such
platforms, Four extra acquisitions the place 2 are being inbuilt GSL and a couple of in
Yentania Zavrot. Since we’re positioned right here, and we now have a knowhow of constructing
frigates and all, no matter help is being required by our sister shipyard
which is Goa shipyard, we’re very eager to work with them.
Now coming to share our whole efforts even with a non-public associate, we’re
giving impetus to 2 shipyards, who’re additionally constructing completely different blocks of our
working applications. We’ve Chouglay shipyard in Goa and we even have a non-public
shipyard – Shoft shipyard in Bharuch. They’re constructing sure blocks and it
is a really good hand holding. It’s a very good offloading, because it lessens my
routine mundane sort of a job, on the similar time they’ve additionally obtained totally
entrenched with constructing such sort of difficult platforms in order that’s a really
good factor to occur.
Like we gave an order for 5 in quantity naval OPV vessels to Pipavav, three in
quantity cadet coaching vessels to ABG shipyard. Equally there’s a Gujarat PSU
known as Alcock Ashdown, we’ve given 6 in quantity vessels to them.