India selects South Korean firm for $5 bln military contract

By Park Sae-jin Posted : April 1, 2016, 14:20 Updated : April 1, 2016, 14:20

[Courtesy of maritime police]


South Korea's defense firm Kangnam Corp has emerged as a sole bidder for India's five billion US dollar project to jointly build 12 mine sweeping vessels, Defense News, a US military news outlet, reported.

Defense News said Kangnam was the sole respondent to a global expression of interest (EOI) floated by India's state-owned Goa Shipyard Limited (GSL). It quoted a GSL source as saying the joint effort would cost India's navy $5.0 billion.

GSL has sought special permission from India's defense ministry to go ahead with selecting the South Korean company as its technology transfer partner, Defense News said, adding the ministry last week accepted the GSL's proposal.

Kangnam will transfer technology and help in the production of the mine countermeasure vessels (MCMVs), it said. The company has built patrol boats, FRP ships, and steel vessels.

A final contract will be awarded within the next six months, and Kangnam would get about $1 billion in the form of a technology transfer fee, Defense News said.

There was no comment from Kangnam, but Defense News said the South Korean company has already helped the Indian partner modernize its facilities.

MCMVs use specialized composite material and high-grade steel and are equipped to detect all kinds of underwater mines. Defense News said the Indian Navy operates around six aging Russian-made MCMVs.

It said India has a total requirement of 24 MCMVs and there will be an additional order of 12 MCMVs to top the current order of 12.

Aju News Lim Chang-won = cwlim34@ajunews.com

 
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