Pipavav Shipyard was chosen by Mazagon Dock as a joint venture partner on the merits of the infrastructure it could offer, more specifically, the dry dock, said Mr Nikhil Gandhi, Chairman, Pipavav.
Brushing aside allegations that there was no transparency in selection, he said Mazagon Dock had made it clear that it had the experience and technology, besides the manpower, to take the tie-up forward.
On delays at Pipavav Shipyard, he conceded that the first ship was delayed by several months as the visa extension of Chinese workers could not be obtained.
On charges that Pipavav had not delivered a single ship so far, he said two Panamax ships were delivered on June 12. Referring to the ONGC order for 12 Offshore Supply Vessels, he said the delay was because the PSU wanted to incorporate some changes in equipment, which required additional clearances.
Denying that the selection of Pipavav happened in a fortnight, he said the whole process initiated by Mazagon Dock was on for over eight months and each of the bidders was given ample time to demonstrate their capabilities and strengths.
All the bidders had made multiple presentations and were given more time to revert.
SEEK SELECTION CRITERIA
Both Larsen & Toubro and ABG Shipyard have raised questions about the selection process and sought details on the criteria adopted by Mazagon Dock Ltd (MDL) for finalising its joint venture with Pipavav Shipyard.
They have also communicated their displeasure to Adm Nirmal Verma, Chief of Naval Staff; Mr Shashi Kant Sharma, Secretary of Defence; and Mr Shekhar Agarwal, Secretary of Defence Production.
The companies pointed out that MDL had not made available any evaluation criteria/ process of the collaborative effort or joint venture, either by way of an expression of interest or during discussions when the companies had provided business plans and joint venture strategies.
Mr M.V. Kotwal, Member of the L&T Board and President, Heavy Engineering, said during interactions MDL officials had said that “complete clarity” was yet to emerge and they would consider all proposals from eligible shipyards prior to taking any decision.
Mr Kotwal said being a sensitive defence project, L&T, in which Government agencies hold 32 per cent stake, was better placed than others. In addition, it had a track record of participating in a number of MDL warship programmes.
NO TIMELINE
Major (Retd) A. Phatak, President and Executive Director of ABG Shipyard, said neither was a timeline given for submission of a detailed joint venture proposal nor were any evaluation criteria discussed or made available. On August 25, MDL had asked ABG to elaborate on the terms and conditions it had submitted earlier.
He said the basis for the selection of Pipavav Shipyard, which is yet to deliver its first ship, over ABG, which had delivered 142 ships over the last two decades, was unclear.
Vice-Admiral (Retd) H.S. Malhi, Chairman and Managing Director, Mazagon Dock, who is currently in London, could not be reached.