NEW DELHI- India’s largest state-owned defense shipyard, Mazagon Dock Shipbuilders Ltd. with an order book of $7.69 billion, is striving to be a progressive and profitable shipyard building world-class warships and submarines using state-of-the-art technology.
The company says it is the only shipyard with a proven track record of building and delivering frontline warships and submarines to the Indian Navy.
MDL is currently constructing two major warship projects and one submarine project: four advanced missile destroyers under Project 15B "Visakhapatnam Class," four stealth frigates under Project 17A and six submarines of the Scorpene class under Project 75.
The company’s outgoing chairman and managing director, retired Rear Adm. Rahul Shrawat, who will leave MDL on Dec. 31, told Defense News in an exclusive interview that a shipyard-sponsored study of major global warship building costs deems indigenous warship construction, particularly related to frigates (P17 ships) and destroyers (P15A and P15B) built by MDL, to be extremely competitive.
How do you compare MDL with any other shipyard overseas? What is your specialty feature?
MDL is the leading shipyard in India and is comparable to any other shipyard in the world. MDL has the requisite skill sets, design capability, required infrastructure and expertise for constructing any weapon-oriented platform. With the inauguration of the modernization project, MDL is all set to take on the integrated modular construction used worldwide for building ships. Further, MDL has created a facility for taking on a parallel line of submarines.
The shipyard has built a state-of-the-art shore integration facility (SIF) created for complete combat system integration prior to installation. This is the first of its kind in India.
What is the delivery schedule of the Scorpene submarines?
MDL has been awarded a contract by the government of India for construction of six Scorpene type submarines of French design for the Indian Navy under "Project 75." These submarines are being constructed as per the build specifications, drawings and documents provided by the collaborator [DCNS of France].
The delivery of the first Scorpene-class submarine, "KALVARI," is planned in early 2017.
The remaining five boats will be delivered at intervals of nine months from each other, as against the earlier plan of one-year intervals.
What is current level of indigenization in Scorpene submarines?
Although indigenization is not a contractual requirement, it is being pursued vigorously by the Indian navy and MDL. Submarines being a very complex platform with no industrial-support base for its equipment in India, the scope for indigenization is limited. The material package accounts for bulk of the cost of production. It is estimated that 30 percent indigenization will be achieved by the sixth submarine.
Is your shipyard equipped to build AIP (Air Independent Propulsion) enabled submarines?
An AIP system is being developed by Naval Materials Research Laboratory, based on fuel-cell technology. Collaborator on the P-75, DCNS, is working with NMRL on marinization and integration of the Indigenous AIP system on Scorpene submarines. NMRL has placed an order for a "Definition Phase" with DCNS in August 2015. MDL has indicated the wish to be "Lead Integrator" for the NMRL AIP to Indian Navy.
MDL has not tied up with any other domestic or overseas shipyard to bid for the forthcoming AIP-enabled submarine tender. However, we are in talks with TKMS (Germany), DCNS (France) and SAAB Kockums (Sweden).
Do you favor giving the AIP submarine tender on nomination basis to MDL, or awarding it on a competition basis?
Envisaging MDL’s track record of successfully delivering more than 25 warships and submarines to the Indian Navy, priority should be given for any new order. However, this decision lies in the hands of the Ministry of Defence.
MDL is all set to take on any new submarine construction order. In fact, MDL has already developed exclusive capabilities for indigenous construction of conventional submarines with quality that matches global standards. The knowledge base acquired as a consequence of building six boats of the Scorpene class gives an edge to MDL to take up any order for constructing submarines.
Further, our hull construction facilities are idling since December 2012. Therefore, if the government decides and places order on MDL, work can commence right away. It is also essential to retain submarine-building skills which were earlier lost and which MDL has been able to revive with great difficulty.
In addition, a new workshop for submarine construction has been built as part of the modernization program. With this new state-of-the-art workshop, MDL has a parallel submarine construction and assembly line. Thus, it is now possible to undertake construction of both P-75I as well as "follow-on" of P-75 Submarines.
What is your arrangement with the Germans for the upgrade of the HDW class submarines?
MDL has indicated to Indian navy regarding our readiness to work with TKMS, Germany, for life-extension program of HDW-class submarines. A non-disclosure agreement has already been signed with TKMS.
What are your overseas tie-ups for technology sharing and other inputs?
MDL has already appointed Fincantieri of Italy as a know-how provider (KHP) for technology upgrades and capability enhancement [of the shipyard]. The principal objective of appointment of a KHP is to provide the know-how to facilitate MDL to reduce the build period of the P17A program.
Is MDL negotiating for export or maintenance of warships from overseas countries?
MDL is not negotiating for export or maintenance of warships from overseas countries.
What is the reason for delays of warship building at Indian yards, including at MDL?
In warship construction, there are delays in receipt of vital weapons and sensors and certain propulsion machineries from suppliers abroad as this equipment is not available indigenously. Further, there is a delay in receipt of items and systems which are being developed indigenously.
All major items onboard a submarine are to be procured from collaborator-nominated vendors (foreign) over which the shipyard has very little control. There have been delays by the collaborator in finalizing vendors and also in the supply of these items by the vendors, and both these factors have equally contributed to the delays experienced in the P-75 program.
Can defense shipyards like MDL deliver cheaper warships and submarine products compared to your Western competitors?
We are extremely competitive. Even in absolute terms, if the costs of indigenous products – say, frigates -- are higher, it is actually on account of our platforms being larger (compared to imported ones), thereby making them far more capable and potent. When normalized, our platforms are cheaper, as this study brings out. Further, indigenous platforms also provide a total freedom to the user, the Indian navy, to select each and every system, weapon and sensor, as opposed to a case of imported platforms wherein almost every system comes from the country of origin, barring a few, such as communication system, sonar etc.
Do you have footprints outside India?
Exporting of naval platforms is entirely a government decision. Shipyards in India are constructing world-class destroyers, frigates, smaller potent platforms along with nuclear and conventional submarines for the Indian navy. By virtue of capabilities, expertise and skill sets available within the country’s shipyards, export orders can easily be handled, however the demand of the Indian navy is huge and which would take some time to fill in. Once requirements of the Indian navy are met and government decides, we would be able to focus on export orders.
However, we had exported several non-military vessels in the past; our latest export orders were two multi-support vessels for foreign clients.
What is your vision for MDL and India's warship building industry?
India is already one of the seven-odd countries capable of building conventional submarines. With orders for four frigates of Project 17A and the follow-ons of Scorpene-class submarines around the corner, India will be taking the lead in warship building in the coming years. The quality of warships and submarines being built by MDL is comparable to the best in the world. Introduction of Integrated Hull Construction Methodology will radically cut down the warship build period and make us comparable to the best shipyards in the world.
Vivek Raghuvanshi is the India correspondent for Defense News.
