Two major defence public-sector undertakings (PSUs) – Mazagon Dock Shipbuilders and Cochin Shipyard have bagged new contract orders from the Ministry of Defence on Wednesday, December 20. The defence PSU majors will remain in focus in tomorrow’s session (December 21) as the announcement of the order receipts came after market hours on Wednesday.
Mazagon Dock Shipbuilders said it will be constructing and supplying six vessels to the Indian Coast Guards (ICG) for about ₹1,600 crore while Cochin Shipyard said in its regulatory filing that it has signed a deal with the Ministry of Defence for a value of ₹488.25 crore.
Mazagon Dock Shipbuilders wins order worth ₹1,600 crore
The company said it has signed a contract with the acquisition wing of the Ministry of Defence for the construction and delivery of six next-generation offshore patrol vessels. Out of the six vessels being procured, four would replace the existing aging offshore patrol vessels and the other two would augment the ICG’s fleet.
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The first vessel will be delivered in 41 months (three years five months) from the date of release of advance payment by the Ministry of Defense and subsequent vessels at intervals of five months.
“The acquisition of these major ICG platforms is aimed to boost the ICG’s capability and reinforces the increased focus of the Government towards maritime security,” the defence ministry said in a statement.
“These modern and high-tech ships will play a critical role in enhancing surveillance, law enforcement, search and rescue, maritime pollution response, and other important capabilities including humanitarian assistance,” it said.
It said along with several high-tech advanced features and equipment, these offshore patrol vessels would be equipped with multipurpose drones, AI (artificial intelligence) capabilities, and wirelessly controlled remote water rescue craft lifebuoy, enabling greater flexibility and operational edge.
Ahead of the announcement of the order, shares of Mazagon Dock Shipbuilders settled 4.44 per cent lower at ₹2,046.25 apiece on the BSE.
Cochin Shipyard’s order from defence ministry
The work package of the order won by Cochin Shipyard includes repair and maintenance of the equipment and systems onboard the naval vessel. The company added that the work on the same has already been commenced during Q2 of FY24 based on the Approval of Necessity (AoN) from the defence ministry, and is expected to be completed by Q1 of FY25.
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‘’None of the promoter/ promoter group / group companies have any interest in the entity that awarded the order. Further, the said order also does not fall under the preview of related party transactions,” said Cochin Shipyards in a regulatory filing to the stock exchanges.
On Wednesday, shares of Cochin Shipyard settled 6.34 per cent lower at ₹1,223.95 apiece on the BSE.
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Aisha Patel is a dedicated Indian correspondent with a deep understanding of the nation’s diverse affairs. With a background in Indian culture, politics, and current events, she provides in-depth analysis and timely reporting on domestic issues within India.
