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Pipavav Defence and Offshore Engineering today announced the signing of a multi-crore agreement with Russia-based JSC Ship Repairing Centre Zvyozdochka for medium refits and life certification of eight EKM 877 submarines in India.
Pipavav, in which Anil Ambani-led Reliance Group is in the process of acquiring a majority stake, proposes to execute the program under a joint venture, with 51 per cent stake, consistent with MoD regulations, a company statement said.
This will also mark the first time the work for refit of submarines was being considered for the private sector in India.
The indicative value of work proposed to be undertaken by the proposed JV is approximately Rs 11,000 crore, it added.
The company said that the skills and experience developed by the JV would position Pipavav favourably for undertaking similar work for large submarine forces of similar class deployed by countries like Algeria, Vietnam and Iran, with potential additional revenues of approximately Rs 20,000 crore.
Under the terms of the agreement, Zvyozdochka will provide complete technical assistance and support to the JV, including inter alia for enhancement of infrastructure at the Pipavav facilities, training of engineers among others.
Pipavav technicians will also be closely associated with the first Refit to be carried out in Russia, it said.
"Refit and modernisation of submarines is an ongoing need for our Blue Water Navy. PDOC and Zvyozdochka are deeply committed to playing an enabling role towards enhancing Naval preparedness, which is vital for our national security," a spokesperson for Pipavav Defence & Offshore Engineering Co. Limited (PDOC)said.
