Defence ministry signs ₹19k-cr contract with HSL for five fleet support ships

The order for the five new vessels will provide a major boost to self-reliance in the defence manufacturing sector as these ships will be indigenously designed and constructed by HSL, the statement from the ministry said

In a significant boost to self-reliance, the Union defence ministry on Friday signed a Rs.19,000 crore contract with Visakhapatnam-based Hindustan Shipyard Limited (HSL) for five indigenous fleet support ships for the Indian Navy, with the vessels capable of replenishment of warships at sea and extending their range and endurance for longer missions, officials aware of the matter said.

The contract was signed between Ministry of Defence and Hindustan Shipyard Limited (HSL), Visakhapatnam (Twitter/@SpokespersonMoD)

HSL is expected to deliver the first vessel to the navy in four years, with the rest to follow at the rate of one every 10 months thereafter, said one of the officials cited above, asking not to be named.

The vessels, with a length of 225 metres and a width of 32 metres, will have a displacement of 44,000 tonnes.

The fleet support vessels will be employed for replenishing ships at sea with fuel, water, ammunition and stores, enabling the naval fleet to operate for prolonged periods without returning to the harbour, the defence ministry said in a statement.

“These ships would enhance the strategic reach and mobility of the fleet. Their induction will significantly enhance the blue water capability of the Indian Navy. The ships can also be deployed for evacuation of people, and human assistance and disaster relief operations,” it said.

HSL also signed a Rs.1,100 crore contract with Bharat Electronics Limited on Friday for communication and navigation equipment for the new vessels, said a second official, who also asked not to be named.

The Indian Navy, which currently operates four such vessels commissioned between 1996 and 2011, has been scouting for more such ships for several years to cater to its growing replenishment needs amid the expansion of its fleet and increased roles and responsibilities in the Indian Ocean region. The Cabinet Committee on Security, headed by Prime Minister Narendra Modi, cleared the acquisition of the fleet support ships on August 16.

The order for the five new vessels will provide a major boost to self-reliance in the defence manufacturing sector as these ships will be indigenously designed and constructed by HSL, the statement from the ministry said.

“The fleet support ships of 44,000 tonnes will be the first-of-their-kind vessels to be built in India. The project will generate employment of nearly 168.8 lakh man-days over eight years,” added the statement.

The project will provide a new dimension to the Indian shipbuilding industry and encourage active participation of associated industries, including MSMEs, the statement said.

“With the majority of the equipment and systems being sourced from indigenous manufacturers, these vessels will be a proud flag-bearer of ‘Aatmanirbhar Bharat’ in consonance with the ‘Make in India’ initiatives of the government,” it added.

The development comes at a time when the navy is working on becoming fully self-reliant by 2047 when India celebrates 100 years of independence.

India has taken a raft of measures during the last four to five years to boost self-reliance in defence. Apart from a series of phased import bans, these steps include creating a separate budget for buying locally made military hardware, increasing foreign direct investment (FDI) from 49% to 74% and improving ease of doing business.

In May, India announced that the value of defence production in the country crossed ₹1 lakh crore for the first time on the back of key reforms to spur growth in the sector. The figure stood at ₹1,06,800 crore in FY 2022-23 compared to ₹95,000 crore in FY 2021-22 and ₹54,951 crore five years ago.

India is eyeing a turnover of ₹1,75,000 lakh crore in defence manufacturing by 2024-25.