The defence sector could well become the state’s economic mainstay for the next decade; especially given that mining, even when it starts will never be the same.
The recent Union Defence Ministry’s clearance for the approximately Rs. 32,000 crore project to manufacture 12 Mine Counter Measure Vessels (MCMV) indigenously, by Goa Shipyard Ltd (GSL) could be the precursor of things to come given the government’s ‘Make in India’ policy.
The decision of the Defence Acquisition Council (DAC) on 28 Feb 2015, chaired by the Raksha Mantri, Manohar Parrikar, former chief minister of the state – if all goes well – could provide a major boost to the Goan economy given that GSL is likely to outsource or subcontract many allied works of the project to local Goan companies. According to GSL sources, this is being contemplated and would help in spurring the shipbuilding industry in the state. It will further increase avenues for local employment.
“The project is of great significance, as it will bring in a substantial part of the project fund to Goa’s economy and will help in making Goa a big defence manufacturing cluster for supply of various materials, sub-assemblies and services required in construction of these special purpose vessels,” said Rear Admiral Shekar Mital (retd) chairman and managing director, GSL.
Mital said allocation of this big ticket project to GSL is validation of excellent industrial climate, availability of qualified skill set and advanced infrastructure in the State.
According to the GSL management, the company has already invested about Rs 500 crore in its infrastructure upgradation for the MCMV project over the last five years and a further Rs 700 crore is expected to be invested over the next three years.
According to the CMD, “This decision has shown the resolve of the Raksha Mantri Manohar Parrikar to provide the much needed hardware and assets to the defence forces, by resolving long pending requirement of Indian Navy for MCMV vessels, in favour of State of Goa.”
MCMV vessels are highly sophisticated vessels used for the detection of moored or drifting underwater mines, which are also seen as a threat to commercial and naval vessel traffic within Indian and near enemy territory.
With an order of this magnitude, GSL will have the unique distinction of construction of steel, aluminum, GRP and other composites vessels. GSL is likely to tie up for a ‘Transfer of Technology’ for design and construction of these non magnetic, explosive proof vessels. Very few countries in the world have such capabilities.
The state has not really been able to exploit its 105 km coastline and a lot if its inland water ways except for tourism and that too concentrated in certain areas, not forgetting barge traffic. However, this barge traffic will never be the same again and the state has to look to use the natural water resources more.
It is this ship building business that can encourage the growth of ancillary units and vendor networks, which will further strengthen all thanks to the new mega project.
