The Ministry of Defence places large orders with Mazagon Dock and Cochin Shipyard

21 Dec 2023 , 12:25 PM

On December 20, Mazagon Dock Shipbuilders announced that it would be building and supplying the Indian Coast Guards with six vessels for an approximate cost of Rs 1,600 crore.

The company announced that it has entered into an agreement with the Ministry of Defence’s purchasing wing to build and deploy six Next-Generation Offshore Patrol Vessels (NGOPVs).

After the Ministry of Defence releases the advance payment, the first vessel will be delivered in 41 months (3 years and 5 months), and the other boats will be delivered every five months after that. The payment’s release date was not specified by the company.

The transaction comes after a $42 million order from a European client was finalized last week. The company is going to build 7,500 DWT Multi-Purpose Hybrid Powered Vessels and provide them. It will take 27 months to deliver the first vessel.

Mazagon Dock’s shares closed at Rs 2,046.25 on the BSE earlier in the day, down 4.44%.

Another government-owned company, Cochin Shipyard, announced on December 20 that it had inked a Rs 488.25 crore contract with the Ministry of Defence. The work package covers upkeep and repairs for the naval ship’s systems and equipment.

According to the MoD’s Approval of Necessity (AoN), the company stated that work on the project has already started in Q2 of FY24 and is anticipated to be finished by Q1 of FY25.

Cochin Shipyard’s shares finished at Rs 1,223.95, down 6.34% on the BSE, earlier in the day.

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