Friday, September 23, 2011

SHIP BUILDING IN INDIA : CONCERNS

The ship building industry in our country has not matured till date and as a result of this even today we are not self sufficient in ship building which is very vital to the safety and security of our nation.

This industry has been crippled by lack of state of art infrastructure, skilled manpower and due to archaic laws practised by government entities like customs and central excise.

It is high time that the government addresses these very critical problems and seriously sets up a task force to ascertain the reasons for non-development of this important industry.

Time frame should be established for addressing the critical problems and a committee should be set up for co-ordinating with the government agencies and other interested parties like ship builders, financiers, suppliers, work shops etc.

The development of skilled manpower and material resources on large scale needs to be addressed; research and development teams for improvement of various processes and setting up of innovative and state of art infrastructure should be taken up.

Uniform labour laws for the industry should be enacted in order to protect the industry as well as the labour.

It is also important to set up benchmarks as the industry suffers from very low productivity; the present situation will not help the industry to sustain and grow. The industry needs to set up more efficient production systems and use of better technology in order to improve the performance of the industry.

Almost all the ship yards suffer from delayed deliveries and it finally results in cost overruns and therefore, reduced margins.

The project managers are not very well versed with time/cost management and there is scarce use of Information Technology in this industry. The project managers need to be well trained in order to efficiently manage their projects; process improvement and design of facilities would also improve the performance in the industry.

The industry should get together and co-operate with others in order to address the problems and find solutions; it would be in the interest of the industry and the nation.

FUTURE OF NAVAL SHIP BUILDING IN INDIA

The decision of MDL to form JV with Pipavav Defence is in the right direction considering the quality and capacity of infrastructure created at Pipavav.

The objections of other private players is only to create a roadblock in the whole process. All other private players do not have the type of infrastructure required for JV and the quick decision taken by MDL at an appropriate time should be appreciated by all.

Generally, decision making processes are very slow when it comes to government controlled entities. This JV will strengthen the construction of naval vessels required for our navy which is very critical for the safety of the nation.

All the shipyards who have objected to the JV do not have enough berths, capacity and infrastructure for naval building. The stragtegic joint venture shall accelerate production of naval vessels and give our nation strategic advantage.