Press Information Bureau
Government of India
Ministry of Defence
03-September-2012 15:29 IST
Joint Venture of MDL
After the initial selection of Joint Venture (JV) partner by Mazagon Dock Limited (MDL) some apprehensions were raised by private shipyards. Thereafter, Government of India has issued detailed guidelines to be followed by Defence Public Sector Undertakings (DPSUs) for forming JVs. After following these guidelines, MDL has signed Share Holders' Agreements with M/s Pipavav Defence & Offshore Engineering Company as well as M/s Larson & Toubro Limited for construction of surface ships and conventional submarines respectively.

MDL has been exercising the option of outsourcing / subĀ¬contracting. As per JV guidelines, DPSUs may enter into JVs only in cases where the partners requires engagement for a longer term and results in achieving either lower costs or better risk management or greater efficiency or shorter timeframes for delivery or enhancing self- reliance in the defence sector as a whole. The option of going in for JV has been adopted by MDL after due diligence.

This information was given by Minister of State for Defence Dr MM PallamRajuin a written reply to ShriK. Sudhakaranin Lok Sabha today.