Pipavav Defence and Offshore Engineering Company Ltd has been chosen as partner for formation of joint venture with state-owned Mazagon Docks Ltd to build warships for the Indian Navy.
The approval is pursuant to the defence ministry approving the guidelines for setting up joint venture companies by defence PSUs (DPSUs), Pipavav Shipyard said that it has received permission from the foreign investment Promotion Board (FIPB) for foreign direct equity investment and the necessary licence to build warships for the Indian Navy.
''The company has obtained all statutory clearances required for warship building for defence sector. The clearance will help Pipavav bid for all future warship projects like frigates, destroyers, aircraft carriers, LPDs, submarine, corvettes of the Indian Navy,'' the company said in a filing with the stock exchanges.
''For building warships you need to have three things - world class facility, defence production licence and FIPB approval. So now we have all three of them in place and will be bidding for any opportunity in this field. There is a lot of potential in this field and we are proud to have Northrop as our partners which gives us an edge above the rest to build complex warships," said Nikhil Gandhi, non-executive director and chairman of Pipavav Defence and offshore Engineering Co Ltd.
The company had, last month, signed a memorandum of understanding (MoU) with Northrop Grumman Overseas Service Corporation, Delaware, USA. Northrop is one of the largest defence companies in the segment with an expertise in defence systems, airspace management systems, navigation systems, precision weapons and marine systems.
The defence ministry on Wednesday conveyed its decision to allow Mazagon Dock Ltd, the country's premier defence shipyard, to partner Pipavav Defence and Offshore Engineering Company Ltd, the company said in filing with the Bombay Stock exchange (BSE).