MoD to review Mazagaon-Pipavav warship deal
24 Sep 2011
Mumbai: Faced with a spate of complaints from private sector firms interested in bidding for defence contracts the ministry of defence (MoD) has said it could "interfere" in one such contract recently clinched between state-run Mazagaon Dock and private firm Pipavav Shipyard.
Complaints were lodged after other firms lost out on the high-profile deal complained of a lack of transparency.
Reports suggest the MoD has asked Mazagon to submit a detailed report on the selection of Pipavav as its partner for a venture to build warships. Defence sources said the MoD will study the report and, if required, will ''interfere in the selection process".
The MoD has been forced to react after receiving complaints from Pipavav rivals, ABG Shipyard and Larsen and Toubro. These firms had, in separate letters to the ministry, alleged that the deal between Mazgaon and Pipavav lacked transparency and was concluded in a hurry. In its letter to Mazagon, Bharati Shipyard even refused to acknowledge the award of contract to Pipavav Defence and Offshore Engineering, the new name of Pipavav Shipyard.
Mazagon Dock maintains that the award process was fair.
L&T and ABG have alleged that their companies were not given adequate time to respond to the proposal and no timelines were indicated for the submission of the detailed JV proposal.
