Lok Sabha Question No. 259 (STARRED), answered on 2020-03-11
Subject: Review of Performance of Defence PSUs
Ministry: DEFENCE
Asked by: Bidyut Baran Mahato, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA STARRED QUESTION NO. 259

TO BE ANSWERED ON 11 th  March, 2020

## REVIEW OF PERFORMANCE OF DEFENCE PSUs

*259. SHRI BIDYUT BARAN MAHATO: SHRI SANJAY SADASHIV RAO MANDLIK:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a)  the  details  of  the  Defence  Public  Sector  Undertakings  (PSUs)  engaged  in shipbuilding in the country;
- (b) whether the Government has recently reviewed the performance of such PSUs;
- (c) if so, the details and the outcome thereof;
- (d) whether these PSUs are also exporting their products to various countries;
- (e) if so, the details thereof along with the revenue generated through exports during the last three years, country-wise; and
- (f) the steps taken/being taken by the Government to improve the performance of such PSUs?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                    (SHRI RAJNATH SINGH)

j{kk ea=h

¼Jh राजनाथ स िंह )

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- (a) to (f):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN  REPLY  TO  PARTS  (a)  TO  (f)  OF  LOK SABHA  STARRED  QUESTION  NO.  259  FOR  ANSWER  ON  11.03.2020 REGARDING 'REVIEW OF PERFORMANCE OF DEFENCE PSUs'.

- (a)  The details of four Defence PSUs engaged in shipbuilding are as under:-

## Mazagon Dock Shipbuilders Limited (MDL), Mumbai:-

Mazagon  Dock  Shipbuilders  Limited,  incorporated  as  a  Defence  PSU  Shipyard  on 14 th May, 1960 constructs warships and submarines for Indian Navy and Indian Coast Guard.  MDL is a Mini-Ratna category I company.

## Goa Shipyard Limited (GSL), Goa:-

Goa Shipyard Limited established in 1957, is capable of indigenously designing and building ships required for the Indian Navy & Indian Coast Guard.  GSL is a MiniRatna Category-I company.

## Garden Reach Shipbuilders & Engineers Limited (GRSE), Kolkata:-

Garden Reach Shipbuilders & Engineers Ltd (GRSE) was taken over by Government of  India  in  1960  and  is  now  a  Mini-Ratna,  Category-I  company  listed  with  BSE  & NSE.  It is engaged in business of shipbuilding and engine manufacturing.

## Hindustan Shipyard Limited (HSL), Visakhapatnam:-

Hindustan  Shipyard  Limited  (HSL)  at  Visakhapatnam  was  set  up  in  1941  by  the Scindia Steam Navigation Company and later taken over by Ministry of Shipping in 1952 and eventually became a government enterprise in July, 1961.  The shipyard is engaged in Ship/Submarine construction and Repairs.

- (b)  &  (c):    The  review  of  the  performance  of  the  DPSU  shipyards  is  an  ongoing process.  A Memorandum of Understanding (MoU), which lays down annual targets for Revenue from Operations, Profit After Tax (PAT), Import Substitution, Exports, etc.  is  signed  annually between  Government of India and DPSU Shipyards.  While finalizing  the  MoU  targets  of  a  year,  the  review  of  the  performance  with  regard  to previous year targets is done every year.  Authenticated copy of MoU is also laid in both the Houses of the Parliament.

- (d) & (e):  The details of exports by Garden Reach Shipbuilders & Engineers Limited (GRSE) during the last three years are tabulated below:-

(Rs. in Cr.)

| YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS                                      | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   |
|------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|
| Country                                  | Items                                                                       | 2016-17                                  | 2017-18                                  | 2018-19                                  |
| Bhutan                                   | Portable Pre-Fabricated Portable Steel (Bailey & Bailey Suspension) Bridges | 1.68                                     | 3.89                                     | -                                        |
| Nepal                                    | Portable Pre-Fabricated Portable Steel (Bailey & Bailey suspension) Bridges | -                                        | -                                        | 4.55                                     |
| TOTAL                                    |                                                                             | 1.68                                     | 3.89                                     | 4.55                                     |

The details of exports by Goa Shipyard Limited (GSL) during the last three years are tabulated below:-

(Rs. in Cr.)

| YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   | YEAR-WISE &COUNTRY-WISE EXPORT DETAILS   |
|------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|
| Country                                  | Items                                    | 2016-17                                  | 2017-18                                  | 2018-19                                  |
| Sri Lanka                                | Off-Shore Patrol Vessels                 | 215.28                                   | 516.00                                   | 9.87                                     |
| Mauritius                                | FRP Boats & Fast Interceptor Boats       | 145.31                                   | 91.00                                    | 4.67                                     |
| TOTAL                                    |                                          | 360.59                                   | 607.00                                   | 14.54                                    |

- (f)    To  improve  the  performance  of  the  DPSU  Shipyards,  modernization  of  their infrastructure  is  done  on  need  basis.    Performance  of  Shipyards  is  evaluated  as  per their  MoU  targets  and  annual  score  &  rating  is  given  based  on  achievements. Government  has  shifted  the  focus  from  orders  on  nomination  basis  to  competitive basis,  requiring  DPSU  Shipyard  to  compete  with  other  shipyards  on  merit.    The Government  has  also  taken  a  host  of  measures    and  initiatives  like  Purchase Preference Policy, Development of Defence Corridors, thrust on Artificial Intelligence,  Developing  Intellectual  Property  Culture  in  Defence  PSUs  and  OFB through Mission Raksha Gyanshakti, Ease of Doing Business by procuring some of the items required by DPSUs through GeM, etc. to improve the performance of the DPSUs.

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