Mazagaon Dock's choice of Pipavav Shipyard as its proposed naval joint venture partner for building warships has embroiled in a controversy with two other bidders, ABG Shipyard and Larsen and Toubro questioning the selection process.

Both the companies, in their separate letters to Mazagaon Dock said that they had not been given a chance to respond to MDL's proposal to become the joint venture partner, despite making presentations to the defense PSU on August 23 and submitting their expression of interest.

Both the companies have forwarded their letters to Defense Secretary, Defense Production Secretary and Chief of Naval Staff, while requesting Mazagaon Dock to reconsider its decision.

On September 12, Pipavav announced that it had been selected by Mazagaon Dock as its equal joint venture partner for construction of warships and submarines among others. The move would be the first example of public-private partnership in the defense sector.

ABG Shipyard in its letter written to the defense PSU said that "No timeline was indicated for submission of the detailed JV proposal, nor was any evaluation criteria discussed or made available. However, ABG was surprised and dismayed to learn from the print and electronic media ....That MDL had already selected the 50:50 JV model of collaboration and Pipavav Shipyard as its partner, even before ABG could respond to MDL's request.”

L&T Heavy Engineering, an arm of Larsen and Toubro in its letter dated September 13 said that "no guideline was mentioned regarding the criteria for selection of JV partner.”

It added that among proposed model of synergy, MDL had sought further details including major terms of reference regarding joint venture model from L&T on August 25.

(Sourced from PTI)