New Delhi (Sputnik) — India's state-owned shipbuilder Goa Shipyard Limited (GSL) is soon expected to issue a fresh expression of interest for the $4.9 billion mine countermeasure vehicles (MCMVs) project after canceling an earlier deal with South Korea's Kangnam Corporation. This could be GSL's third attempt in the last 10 years to build such vessels at its local facility.
"Regarding MCMVs, the parliamentary committee has been [informed by the defense ministry] that the six MCMVs in operation are over 26 years old. Therefore, the rapid induction of MCMVs must be taken care of," noted a parliamentary panel report tabled on December 19, 2017.
India had bought six MCMVs from the erstwhile Soviet Union in the 1970s.
Highly placed government sources told Sputnik that the defense ministry has asked the state-owned shipbuilder Goa Shipyard Ltd (GSL) to start a fresh tendering process. The decision was taken against the backdrop of failed negotiations with Kangnam Corporation regarding some critical issues, including the cost and transfer of technology. Several rounds of unsuccessful talks were held between the two sides on those issues within the last one year.
"Final negotiations did not reach a conclusion due to issues involving the transfer of technology and cost. Thereafter, the government wanted to start a fresh tendering process for the MCMVs," a government official told Sputnik on the condition anonymity.
The Indian Navy needs at least 24 MCMVs to plug the shortfall. China, on the other hand, has more than 100 minesweepers and mine countermeasure vehicles.