Pipavav Defence and Offshore Engineering Co Ltd has signed an agreement with Russian ship repair giant JSV Ship Repairing Centre Zvyozdochka. Pipavav will hold 51 per cent stake in the venture which is created for medium refits and life certification of 877 EKM submarines in India. The indicative value of the work proposed to be undertaken by the joint venture is approximately Rs 11,000 crore.
“This will also mark the first time the work for refit of submarines is being considered for the private sector in India. The skills and experience developed by the joint venture will position PDOC favourably for undertaking similar work for large submarine forces of similar class deployed by countries such as Algeria, Vietnam and Iran, with potential additional revenues of approximately Rs. 20,000 crore,” said a company statement.
As per the terms of the agreement, Zvyozdochka will provide with complete technical assistance and support to the project, including enhancement of the infrastructure at the Pipavav Defence facilities and training the engineers.
JSC is one of the biggest companies of Russia and repairs and upgrades warships and submarines of the Russian Navy. So far, it has refurbished more than 120 submarines and 90 warships. The company conducted an extensive survey of all the shipyards in India before it signed on with Pipavav.
