Digital Transformation in the Ship Building Industry
January 20, 2021:
As per Indian Navy’s long term plan around 90 ships including 24 numbers of submarines are due for acquisition by 2027.
• Indigenous construction of these assets requires an estimated annual capacity of 107 Standard Ship Units ( The combined capacity available in the 03 DPSU shipyards is presently for construction of only 39 25 SSUs.
• If the requirement of the Coast Guard 160 ships till 2020 is also included the gap in strategic warship building capacity further widens.
• Further the perspective plan is structured to continue at a pace such that Navy inducts ships and submarine at an average rate of five platforms per year.
• This necessitates increased ship building capacity in India as the present capacity of the defence shipyard is hardly adequate to meet even half of the projected requirement.
• The demand and supply gap will continue if the preferential treatment by the Government continues. For example, Goa Shipyard, which has never built a frigate or destroyer, is being entrusted to build two Russian designed upgraded Krivak III frigates while L&T Shipbuilding has only ever awarded an order for a single floating dock, delivered in 2017 despite the firm building many Indian Coast Guard ( patrol craft and offshore patrol vessels on time.
• The majority of the DPSU shipyards have over utilized facilities with new building activities and as a result there is a huge backlog which needs to be catered first before constructing new vessels/ships
• Between 2000 and 2020 the Navy added 59 vessels to its fleet only four of them were built in private shipyards The ICG got 163 vessels, 101 of them from private shipyards