Make in India: Indian and Turkish shipyards close contract for building FSS ships for the Indian Navy

The Hindustan Shipyard Limited (HSL) is going ahead with Turkish shipyard partner M/S Anadolu shipyard after signing a contract with them for technical collaboration for enabling the shipyard to build five fleet support ships.

Confirming this, a senior official said that “The total initial estimated project cost is about Rs 10,000 crore for the 45,000-ton fleet support ships (FSS) for the Indian Navy. The contract with the Ministry of Defence (MoD) is expected to be inked within the next 6-8 months.”

“Though the contract is between the two shipyards, it is a good sign that the Defence ministries of both countries are onboard for this `Make in India’ project.”

As was first reported by Financial Express Online in 2019, the Turkish Shipyard was L1 and had technically qualified for the FSS project for the Indian Navy. In fact, it was down-selected from among three companies who had made the cut earlier.

In the initial stage, seven global companies had responded to the Request for Proposal (RFP) and these included Italy based Fincantieri, Navantia from Spain, Rosoboronexport (ROE) from Russia, the German ThyssenKrupp Marine Systems (TKMS), and Turkey’s Anadolu Shipyard. The RFP was for the construction of five ships under the FSS project and was estimated to be at a cost of $2.3 billion.

At the end of talks and negotiations, only three companies were shortlisted and these were TKMS, ROE and Turkey’s Anadolu Shipyard.

The contract between the two shipyards was inked after the detailed analysis was done of the technical and financial aspect. There were a series of discussions related to price and ensured that all requirements were met before the contract was inked between the two yards recently.

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