Mazagon Dock Wins Order Worth Rs 1,614 Crore From Defence Ministry

The Mumbai-based companyMazagon Dock Shipbuilders Ltd. has bagged an order worth Rs 1,614.8 crore from the Ministry of Defence on Wednesday.

A contract was signed with the company for procurement of six next-generation offshore patrol vessels for the Indian Coast Guard, the Defence Ministry said in a statement.

Out of the six vessels, four would replace the existing aging OPVs and the other two would augment the ICG fleet, it said.

"The acquisition of these major ICG platforms is aimed to boost the ICG's capability and reinforces the increased focus of the government towards Maritime Security," it said.

These multi-role vessels will be indigenously designed, developed, and manufactured by Mazagon Dock in Mumbai. The contract will be delivered in a total period of 66 months.

The contract achieves the objectives of ‘Aatmanirbhar Bharat' to boost the nation's indigenous shipbuilding capability, bolstering maritime economic activities and fostering the growth of ancillary industries, especially of the MSME sector, it said.

On Dec. 8, the Mumbai-based company received an order worth Rs 1,145 crore from Oil and Natural Gas Corp. for the replacement of the pipeline.

The company's Chairman and Managing Director Sanjeev Singhal said that the company expects to add orders worth Rs 2,000 crore in the December quarter.

He also expects a positive development on one small value export order to form up in the next two months. "This would be providing us a foothold in the export market segment, which we have been trying for quite some time but have not been able to succeed," Singhal said in an interaction with NDTV Profit.

Shares of Mazagon Dock closed 4.37% higher at Rs 2,046.25 apiece on the NSE, as compared with a 1.41% decline in the benchmark Nifty 50.