Bangalore: India has allowed ABG Shipyard Ltd, the country’s biggest private shipbuilder, to build warships and support vessels for the Indian Navy.
The commerce ministry on Wednesday granted ABG a licence to build submarines, attack craft and propulsion systems for the Indian Navy, chief financial officer Dhananjay Datar said.
The licence also allows the company to build weapons, equipment and assemblies for the Navy, Army and Air Force, Datar said. The licence was granted to ABG’s shipyards at Surat and Dahej, both in Gujarat. ABG is the second private sector shipbuilder to win such a licence after Pipavav Shipyard Ltd.
“This opens up a major opportunity for defence shipbuilding, which is one of our long-term objectives,” Datar said. Local shipbuilders are increasingly eyeing government-funded defence shipbuilding contracts to stay afloat as orders for constructing commercial ships dry up in the wake of an oversupply of vessels and stagnation in the tanker and dry bulk markets globally.