MoD Inks ₹19,000 Crore Contract with HSL for 5 FSS for Navy

On August 25, the Ministry of Defence formalized a contract with Hindustan Shipyard Limited (HSL) located in Visakhapatnam. This agreement pertains to the procurement of five Fleet Support Ships (FSS) for the Indian Navy, with a total estimated cost of approximately ₹19,000 crore.

This significant initiative aligns with the objective of enhancing self-sufficiency in defense manufacturing, as these vessels will be designed and constructed within India by HSL in Visakhapatnam. The acquisition of these ships was endorsed by the Cabinet Committee on Security during its meeting on August 16, 2023.

Benefits of The Fleet Support Ships (FSS)

  • The Fleet Support Ships (FSS) will serve a crucial role in replenishing ships at sea with essential supplies like fuel, water, ammunition, and stores.
  • This capability will enable the Indian Naval Fleet to operate for extended durations without the need to return to port.
  • This strategic advantage will enhance the operational reach and flexibility of the Navy, contributing to its blue water capabilities.
  • Furthermore, these ships will bolster the Indian Navy’s capabilities for humanitarian assistance and disaster relief (HADR) missions, as well as evacuation operations.

Significance of the Contract

  • These FSS vessels, with a total weight of 44,000 tons, will be a pioneering achievement as they will be the first of their kind to be constructed in India by an Indian Shipyard.
  • The project is expected to generate approximately 168.8 lakh man-days of employment over an eight-year period.
  • By involving various industries, including Micro, Small, and Medium Enterprises (MSMEs), the construction of these ships will not only contribute to the shipbuilding sector but also promote self-reliance in line with the ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives of the Government.
  • Many of the components and systems used in these ships will be sourced from indigenous manufacturers, further exemplifying India’s commitment to self-sufficiency and domestic production.

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