Hindustan Shipyard Limited (HSL), a Ministry of Defence Enterprise was on-course to sign a contract with a consortium formed by five leading shipyards in Turkey for technical collaboration to construct five Fleet Support Ships worth a whopping $2.3B.
However, due to the Turkish President’s rants against India at the United Nations over Kashmir, the Hindustan Shipyard Limited’s collaboration with Turkish consortium for the FSS project is expected to be put on a hold.
Without mentioning any reason, speaking to Financial Express Online on condition of anonymity, a senior official confirmed that “The contract for the 45,000-ton fleet support ships (FSS) for the Indian Navy with the Turkish Company could be delayed.”
“It could be a fall out of Turkey cosying up to Pakistan and raising Kashmir issue at the recently concluded 74th United Nations General Assembly (UNGA),” said the officer.
Earlier, as EurAsian Times reported, Turkish TAIS won a cooperation tender that involves the production of five fleet support tankers of 45,000 tons.
A member of the SAHA Istanbul Defense, Aviation and Aerospace Cluster, Turkey’s largest industrial group that has undertaken important responsibilities for the country’s defense and aviation industries, TAIS will manufacture the ships in a local shipyard as part of the Indian project.
As part of its tasks in the project, TAIS will be responsible for the modernization of the shipyard, the design of the ships, engineering services, planning and management of production, preparation of shipbuilding material specifications and main materials.
As a pilot shipyard, the tender contract will be signed by Anadolu Deniz İnşaat Kızakları, TAIS’s co-founder. A process of eight years is projected for the $2.3-billion tender. The total amount will be shared between TAIS and the local shipyard.
“We have won this tender in one of the most difficult markets in the world against the biggest global competitors with our design capabilities, technical competence, determination and courage. We have proven to the world what the Turkish private sector can do,” said Süalp Ürkmez, deputy chairman of the board of directors of TAIS and CEO of Anadolu Deniz İnşaat Kızakları.
However, after the Turkish President Erdogan raised the Kashmir issue provoked by India’s arch-rival Pakistan, Ankara could lose substantial business from one of the world’s fastest-growing economy.