MDL-Pipavav JV put on hold: Antony

September 26th, 2011 - 9:34 pm ICT by IANS  

New Delhi, Sep 26 (IANS) The government Monday put on hold a joint venture (JV) between defence public sector unit Mazagon Docks Limited (MDL) and private sector Pipavav Defence and Offshore Engineering Company Limited announced earlier this month.

Defence Minister A.K. Antony informed a ministry-related parliamentary panel that a new policy for such public-private business partnerships was under formulation and the decision on the joint venture between MDL and Pipavav would be decided after examining complaints against the partnership.

“The ministry has decided to put on hold the joint venture of Mazagon Docks Limited (MDL) till a policy on JVs is put in place by the government,” Antony told the parliamentary consultative committee meeting here.

The JV was announced Sep 12, when Pipavav intimated the Bombay Stock Exchange that its board had approved the tie-up under which MDL will work with the private sector shipyard on their shipbuilding orders.

“The ministry will study the complaints received from some private shipyards regarding the JV. The issue needs to be fully examined and settled before any forward movement takes place on this front,” he said.

Other private shipyards such as Larsen and Toubro, ABG and Bharati have questioned the JV formation and have protested the move.

Antony also said that any public-private JVs must compete for contracts and should not get them on nomination basis. “We are treading on a new path and we would like to ensure that transparency is maintained at all levels,” he added.

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