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India-South Korea sign MoU on shipbuilding

Saturday 22nd of April 2017

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April 22, 2017

A MoU continues to be signed between India and South Korea for defence industry cooperation in shipbuilding. Inside the given MoU, each of the countries would recommend the organisations for collaborating from the implementation of specific projects. The MoUs signed shall be valid temporarly while period of 5 many are automatically extendable for further successive 5 years in a time.

While South Korea is yet to mention its recommended organisation, India has nominated Hindustan Shipyard Ltd (HSL), Visakhapatnam in the collaboration.

HSL along with the nominated shipyard by South Korea will see and develop indigenous sources in the method to obtain flavor the fabric and equipment for the construction of the warship. HSL has now teamed with Hyundai Heavy Industries to form five fleet support ships and strategic operating vessels.

Aside from the above project, Kangnam Corporation of South Korea is slated to provide consultancy, design and technological be an aid to India’s state-owned Goa Shipyard Limited in building 12 mine countermeasures vessels.

Significance

The cooperation is the main Make in India policy. Accordingly, the warships shall be built at domestic shipyards through the help of South Korea. This willenable HSL to upgrade and modernise its facilities and handle shipbuilding projects from a timely and cheap manner. It could imbibe best practices in shipbuilding. Because of which, the production of HSL will increase manifold leading towards the advance of more job opportunities towards the unemployed.

What's more, the payment plan for and develop indigenous sources in the method to obtain material and equipment would pave way to build up ancillary industry /maritime cluster from the region.

Background

The partnership was conceived beneath overall umbrella in the ‘Special Strategic Partnership‘ as declared from the Joint Statement in the Prime Ministers of both the nations in May 2015. Subsequently, each of the countries approved encourage co-operation between their shipyards from the defence sector.

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