The Centre of Indian Trade Unions (CITU) has raised concerns over the Hindustan Shipyard Limited's (HSL) decision to share a significant naval contract with a private company. The central government had awarded HSL a ₹20,000 crore project to construct five Fleet Support Vessels (FSVs) for the Indian Navy. However, reports indicate that HSL has opted to delegate the construction of two of these vessels to Larsen & Toubro (L&T).
CITU argues that this decision, allegedly made under political pressure, undermines HSL's capacity and expertise. They emphasize that HSL possesses the necessary infrastructure, including a natural yard and dry docks, to handle the entire project independently. Additionally, HSL has a proven track record, having built over 200 vessels of various categories in its 82-year history.
Ch. Narasinga Rao, the CITU State general secretary, voiced concerns during a media conference, stating, "It's unfortunate that the HSL management has planned to hand over part of the work to a private entity, even though these work orders could help revive the fortunes of Hindustan Shipyard Limited."
The union further alleges that HSL's current leadership has taken questionable financial decisions, such as taking out a ₹5 crore loan two years ago for "slip way" amenities, without any tangible improvements being made.
CITU demands that HSL withdraw its plan to share the contract with L&T and utilize its own resources to construct all five FSVs. They argue that this would not only benefit HSL's workers but also bolster India's domestic shipbuilding capabilities. The union has also called for greater transparency in HSL's recruitment processes and urged the government to ensure that all five vessels are built domestically.
This controversy highlights the ongoing debate in India about the role of public sector enterprises versus private companies in key national projects. The outcome of this dispute could have significant implications for the future of India's shipbuilding industry and its defense capabilities.