Wednesday, August 03, 2011

Time & Cost Spikes In Indian Warship Efforts, Parliament Told

Indian Parliament today was provided with details of substantial time and cost overruns in three of India's key warship building efforts: the Project 15A (Kolkata-class guided missile destroyers), Project 17 (Shivalik-class stealth frigates) and Project 28 (Kamorta-class ASW corvettes). These details have been put out for the first time. Here's what Parliament was told, in full:

The major indigenous warship building projects of the Navy running behind schedule are Project-15A, Project-17 and Project-28. The cost escalation in these projects has been about 225% for Project-15A, about 260% for Project-17 and about 157% for Project-28. The major cost escalation has been due to uncertainties associated with the complex warship building process. Project-wise reasons for cost escalations are as follows:

P-15A: The main reasons contributing towards cost escalations are: delay in supply of warship building quality steel by Russia, escalation due to increase in expenditure towards services of Russian specialists on account of inflation during the build period, impact of wage revision due from October 2003 and finalization of cost of weapons and sensors.

P-17: The main reasons contributing towards cost escalations are: delay in supply of warship building quality steel by Russia, delay in acquisition of weapon equipment from Russia, and delay in finalization of propulsion equipment in view of complex combined diesel and gas arrangement introduced for the first time in Indian Navy frigate. In case of Project-17, Air Conditioning system procured from M/s York Marine Systems, UK has been functioning satisfactorily on the first two ships. In case of Project-28, it was tendered on competitive basis and the order was placed on M/s York India.

P-28: Navy was using D40S/B-quality high tensile strength steel for construction of warships; however, due to high cost of import, indigenously developed DMR 249A steel was decided to be used on P-28 ships. However, there was delay in development of indigenous steel and associated complexities related to development of new weld consumables and welding techniques. The delay in identification of suitable propulsion package to meet stealth requirement of ships and delay in development of indigenous weapons and sensors also resulted in cost escalation.

Photo/Shiv Aroor [INS Shivalik commissioning]


12 comments :

Anonymous said...

Totally delay delay delay = cost overrun , The failure admin team should be completely changed , MoD should try to offer next ship building orders to private firms ..

Bhavin said...

Dont know who fool takes decisions to purchase imported steel !!! Are not we own steel production here. We mechanicals are to serve you? Haven't we have expert metallurgists??? Why & upto whn to be dependent on foreign materials? Bloody Democracy, bloody democracy , . . . . . .

ananta chaudhuri said...

for these quality steel/D40S/B-quality high tensile strength steel why are we depending only on Russia? Why dont we try with Germany and Japan

A.X360 said...

Shiv can u plzz let us know wen the first of Project 17A stealth destroyers that is Ins Kolkata get commissioned into the Indian navy??Thanks

Anonymous said...

The Navy is still the best as far as indigenous weapons/ships go.This is all part of the learning process.Remember,the west has had more than a century to learn from its mistakes.We are doing pretty good.Of-course,we can do much better,but no need to panic!

Anonymous said...

Cost over - runs may be due to delayed decisions on many fronts. Silver lining - now India is capable of making high tensile strength steel...

Though sceptics would say at what cost. Counter argument - cost payed so far(as upfront) would be far less when India would use same technology for various other indegenious Battle products (comparitive cost in next decade or so)...

Good Luck & keep building with future needs in mind. As Toyota's punch line "Prepare Today for Tomorrow".

thelazyreader said...

See, the main problem is not lack of indigenous potential but the morons in our MOD don't WANT to use that potential.

The PSU shipyards can't meet the Indian Navy's demands on their own? Heck, we've got half-a-dozen top tier private shipyards that regularly outperform them in commerical orders(L & T, Pipavav, Bharti, ABG Shipyards etc). Why not give them a few major contracts before you complain about limited capacity and such?

As for the warship grade steel Essar Steel had offered to supply it under certain conditions(namely assurance of orders, because demand volume for special steels is relatively low) but as usual this Socialist(forget what the media hypes about Manmohan as a 'reformer') government refused to accept their terms and continued with imports instead.

Prasun K. Sengupta said...

To Bhavin & ananta chaudhuri: The RM was being economical with the truth yesterday. What he failed to clarify is that only the lead boat of each class (INS Shivalik & INS Kolkata) was built of imported Russian steel. The subsequent vessels are all built of SAIL-supplied steel. All this was highlighted almost two years ago by Ajai Shukla in BROADSWORD.

Anonymous said...

next is cost escalation, next money laundering, next media investigation.....

Anonymous said...

Seems like Russia is the main culprits behind Indian naval shipbuilding. It is acting like a true friend of PRC.


Now India developed own AB class steel for carrier so it will low the dependencies on Russia.

Anonymous said...

Indian ARTILLERY SEMINAR
http://www.youtube.com/watch?v=dIPuUkVR7c0&feature=player_embedded#at=13

Part-2
http://www.youtube.com/watch?v=OMcLy8fVv1k&feature=mfu_in_order&list=UL

Mr Singh said...

shiv g , jaguar crashed, killing pilot and girl.

RIP