India and the Republic
of Korea (RoK) signed an Inter-governmental Memorandum of Understanding
(MoU) for Defence Industry Co-operation in Shipbuilding here today. The
MoU was signed by Secretary (Defence Production), Shri Ashok Kumar Gupta
from the Indian side and Minister of Defence Acquisition and Programme
Administration (DAPA), Mr. Chang Myoung-Jin from the RoK side. The MoU
will help the ‘Make in India’ initiative of the Government of India.
The salient points of the MoU are as follows:-
• Develop and strengthen defence industry co-operation between Republic
of India and the Republic of Korea.
• The two sides will recommend the organisations for collaborating in
the implementation of specific projects.
• The organisations recommended for co-operative projects may conclude
separate agreements (contracts) between them to implement the specific
• The MoU will come into effect from the date of signature by both sides
and will be initially valid for a period of five years and would be
automatically extendable for further successive five year at a time.
The Inter-Governmental MoU, was conceived under the overall umbrella of
the ‘Special Strategic Partnership’ between both sides as declared in
the Joint Statement of the Prime Minister of India and the President of
RoK in May 2015.
To substantiate the ‘Special Strategic Partnership’, the two sides had
inter-alia agreed to encourage greater co-operation between their
shipyards in the defence sector. Accordingly, it was decided to sign an
inter-governmental MoU on ‘Defence Industry Co-operation in
Shipbuilding’. The Cabinet Committee on Security (CCS) has accorded its
approval for signing the above MoU with RoK and also for nominating
Hindustan Shipyard Limited (HSL), Visakhapatnam from the Indian side for
the collaboration. RoK will indicate the name of its recommended
organisation for the collaboration in due course of time.
The co-operation with the recommended Korean Shipyard would enable HSL
to upgrade and modernise its facilities and execute naval shipbuilding
projects in a timely and cost effective manner. HSL would be able to
imbibe best practices in shipbuilding leading to effective project
As a result of the proposed partnership, the production of HSL is
expected to grow substantially, leading to creation of more employment
avenues. Further, in consultation with the recommended Korean partner,
it is planned to identify and develop indigenous sources/vendors for the
supply of majority of the material and equipment that would be needed in
co-operative naval projects, thus paving the way for the development of
ancillary industry /maritime cluster in the region.