Source : Indian Defence News
India's defence public sector shipyards have lost to private players for
construction of a number of naval vessels in recent times, Defence
Minister A.K. Antony informed the Lok Sabha.
In written reply to questions, Antony said the defence shipyards have cited higher wages for its workers and time overruns for procurement of material for ship construction have pushed the cost of its shipbuilding.
The contracts for which the private shipyards have scored over the defence shipyards included naval offshore patrol vessels, barges, hovercraft, fast patrol vessels, interceptor boars, cadet training ships and fast interceptor craft.
"Defence shipyards lost to private yards (for these vessels)," Antony said.
"The defence shipyard have indicated that major reasons of losing out are ... higher wage rates for the labour and thereby increase in overheads, and longer time taken to procure the materials by observing the laid down procedures thus pushing up their prices," he added.
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