Bangalore: India's ABG Shipyard Ltd, the country's biggest private shipbuilder, has received government clearance to build warships and support vessels for the Indian Navy. The shipyard received a licence Wednesday that will now allow it 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.
With India's defence upgrade and acquisition programme moving apace local shipbuilders are increasingly eyeing government-funded defence shipbuilding contracts as a viable commercial option.