Focus on mercantile marine can help India attain critical mass: Naval Chief Admiral Karambir Singh

Jul 25, 2019

         India can be a hub for warships production and repair for friendly countries

         Shipbuilding can contribute immensely to the government's vision of making India a $5 trillion economy

 

NEW DELHI, 25 July 2019: Admiral Karambir Singh, Chief of the Naval Staff, Indian Navy today said that there is enough headroom in mercantile marine sector for India to attain the critical mass and become a hub for defence shipbuilding.

 

Speaking at the 'International Seminar on Nation Building through Shipbuilding', organised by FICCI, Admiral Singh said that shipbuilding can contribute immensely to the vision of making India a $5 trillion economy by 2024.

 

"As India's shipbuilding industry matures, there is immense potential to forge strategic partnerships and convert India into a hub for defence shipbuilding exports and repairs to friendly foreign countries," said Admiral Singh.

 

However, to enable the strategic outcomes, there is a need for the nation to achieve a certain critical mass in indigenous ship production and repair capability, he said.

 

"While defence shipbuilding plays an important role, we actually need to harness the headroom which is available in sectors such as mercantile marine and coastal shipping to increase capacities and attain our true potential," Admiral Singh added.

 

Dwelling on Indian Navy's shipbuilding initiatives and its linkage to nation building, Admiral Singh said that the navy was fully invested in encouraging the indigenous shipbuilding ecosystem for 50 years before Make in India became a national mission.

 

"More than 60% of the naval budget is dedicated to capital expenditure and nearly 70% of this capital budget has been spent on indigenous sourcing amounting to nearly Rs 66,000 crore in the last five years. Since the launch of Make in India in 2014, 80% of the AoNs (Acceptance of Necessity) on cost basis have been awarded to Indian vendors. Of the total 51 ships and submarines on order at various shipyards as on date, 49 are being constructed indigenously," he noted.

 

He further added, "Nearly, 90% of ship repair by value is undertaken by Indian vendors and mostly MSMEs, implying that in addition to the capital budget a high proportion of navy���s revenue budget is also being ploughed back into the economy."

 

Further, Admiral Singh highlighted how shipbuilding created logistics, spares and project support ecosystems, new capacities within shipyards, employment generation and skill development. He also said time and cost overruns in ship construction created challenges for the navy.

 

"Studies show that labour employed for a given sum of industrial turnover is one of the highest in shipbuilding industry. Besides, the multiplier effect of one worker employed in a shipyard is about 6.4 in ancillary industries," he said.

 

Admiral Sunil Lanba, Chairman, National Maritime Foundation (NMF) and former Chief of the Naval Staff said, "We need a comprehensive policy and support which will address all three segments - construction, repair and breaking."

 

Mr Vijayendra, Joint Secretary (NS) & CVO/DDP, Department of Defence Production, Ministry of Defence said that the navy has a long-term perspective plan for 2015-30 laying out in detail as to what items will be indigenized by local vendors.

 

Vice Admiral AK Saxena, Controller of Warship Production and Acquisition, Indian Navy said that the international seminar was very timely as shipbuilding has picked up in India and there was a need to capitalize on the prospects in merchant marine.

 

Mr Sandip Somany, FICCI President said, "A vibrant shipbuilding industry has contributed to the economy and security of most great powers since it directly impacts national GDP, generates demand both in the upstream and downstream sectors of the economy."

 

Mr JD Patil, Whole Time Director and Member of the Board, Larsen & Toubro Ltd and Chairman, FICCI Defence Committee said that more and more countries are putting greater money in their navies as against on the land, and that shipbuilding had a bright future in India.

 

Also Read

• Shipbuilding can contribute immensely to the government's vision of making India a $5 trillion economy: Indian Naval Chief
• India to keep eye on China’s growing naval presence in Indian Ocean: Navy chief
• Within budget constraints, India has to respond to China's Navy expansion: Admiral Karambir Singh
• India to keep eye on China’s growing naval presence in Indian Ocean: Navy chief
• Nijjer says China's naval spending nothing new
• Lot of resources been shifted from other arms of PLA to its navy: Navy Chief
• Need long term fiscal support to counter PLA Navy, says Naval chief
• 'Focus on mercantile marine can help India attain critical mass'
• For future aircraft carrier, Navy homes in to electric propulsion, could use hybrid system
• India likely to sign multi billion dollar naval helicopter deal with US by year end
• Navy chief Admiral Karambir Singh argues for more funds to build warships
• 2nd Scorpene submarine expected to be commissioned into service by Sep-Oct: Navy chief
• Need to watch China’s global ambitions & respond within existing budget, says Navy chief
• 'Deal to buy 24 choppers from USA by 2019 end'
• Lot of resources been shifted from other arms of PLA to Chinese navy: Indian Navy chief
• Second Scorpene Submarine May Be Commissioned This Year: Navy Chief
• Make in India: How the country is upgrading its shipbuilding capacity
• India is keeping a close watch on China’s focus on navy, says Indian Navy chief
• Indian Navy to 'carefully' watch Chinese Navy's intentions to grow into global power
• Need long-term fiscal support to build Navy: Admiral Karambir Singh
• Need Long-Term Fiscal Support To Build Navy: Admiral Karambir Singh
• Second Scorpene Submarine May Be Commissioned This Year: Navy Chief

Event

• FICCI-Indian Navy International Seminar on 'Nation Building through Shipbuilding'