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[THE HINDU] The Indian Navy will commission the first {ln:project-17-shivalik-class-frigate 'Shivalik class frigate} later this month. The project took over a decade to complete, highlighting the problems of time overruns being faced in domestic ship-building, a point stressed by Chief of Naval Staff Admiral Nirmal Kumar Verma. The keel-laying for the first of the three {ln:project-17-shivalik-class-frigate 'Shivalik class ships} was done in 2001, but its completion was delayed on account of a series of issues, including steel being sourced from outside and weapons systems. Defence Minister A.K. Antony is scheduled to commission the ship at Mumbai on April 29.
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New Delhi –The Indian private sector has finally been given an equal footing with state-run entities as the Indian government will allow private Indian shipyards to construct naval ships. The Defence Minister A K Antony has said that starting January 2011, state owned shipyards will have to compete with private ones for ship building contracts.

Hence, the Defence Acquisition Council (DAC) will no longer give any nominations to the defence shipyards for naval projects and they will have to compete with the private shipyards for the tenders. This major policy shift has been affected for the Indian Navy and will later be extended to acquisition by the Indian Army and Indian Air Force (IAF) as well.

The Indian Defence Ministry has also indicated the need for stronger indigenisation and cited that the “Buy Indian Make Indian’ will remain the major policy when it comes to procurement as this will augment a strong defence industrial base.

The current policy shift is a major impetus for private players who are in the shipbuilding business and will now be able to contest for building naval warships.

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