Pipavav, Mazagon Dock in JV to build warships for Navy

 Mumbai, Sep 12 - State-run Mazagon Dock and private shipbuilder Pipavav Defence today formed the country's first public-private partnership venture to build warships and submarines for the Navy.

 Pipavav Defence & Offshore Engineering Company (PDOL) and Mazagon Dock will have an equal stake in the joint venture --Mazagon Dock Pipavav. The partnership will also help Mazagon Dock to fast-track delivery of its Rs 1 lakh crore order book.

 ÒThis partnership is formed primarily to fast-forward the process of warships and submarine contracts held currently by the MDL,Ó PDOL Chairman Nikhil Gandhi told reporters here.
 ÒThe PDOL board unanimously approved setting up of the joint venture company with Mazagon Dock to be named as Mazagon Dock Pipavav Ltd,Ó Gandhi said.

 Apart from carrying out work for the Navy, the JV will also look at export orders from Òfriendly countriesÓ, Gandhi said, adding, Pipavav has the capacity to carry out work on a dozen submarines and warships each at a given time due to its modular yard.

 The joint venture will also be looking at bidding for future projects of the Navy, Gandhi said. The Navy is estimated to purchase assets worth USD 30 billion in the near-term, he added.
 Modalities of the joint venture like the equity to be brought in by the partners, what kind of work to be undertaken, the quantum of work to be undertaken by Pipavav, etc, were not disclosed by Gandhi, saying work on many issues is under progress.

 Reacting to the announcement, shares of the company jumped 11.31 per cent to close at Rs 91 on the BSE, after hitting an intra-day high of Rs 92 on a day when the main gauge Sensex plunged 365 points, or 2.17 per cent.