India, South Korea signed MoU for Defence Industry Co-Operation in Shipbuilding
The co-operation with South Korea will help India in upgrading and modernising its facilities and execute naval shipbuilding projects in a timely and cost effective manner.
India and South Korea on 21 April 2017 signed a inter-governmental Memorandum of Understanding (MoU) for defence industry co-operation in shipbuilding.
The MoU was signed by Secretary (Defence Production), Ashok Kumar Gupta from the Indian side and Minister of Defence Acquisition and Programme Administration (DAPA), Chang Myoung-Jin from Korea’s side.
Salient features of the India-South Korea MoU
• The MoU seeks to develop and strengthen defence industry co-operation between India and South Korea.
• As part of the MoU, the two sides will recommend the organisations for collaborating in the implementation of specific projects.
• The organisations recommended for co-operative projects may conclude separate agreements (contracts) between them to implement the specific projects.
• The MoU will be initially valid for a period of five years and would be automatically extendable for further successive five year at a time.
• The Inter-Governmental Memorandum of Understanding (MoU) was conceived under the overall umbrella of the ‘Special Strategic Partnership’ between India and South Korea.
• The Special Strategic Partnership was mentioned for the first time in the Joint Statement of the Prime Minister of India and the President of South Korea in May 2015.
• To substantiate the ‘Special Strategic Partnership’, the two sides had inter-alia agreed to encourage greater co-operation between their shipyards in the defence sector.
• Accordingly, it was decided to sign an inter-governmental MoU on ‘Defence Industry Co-operation in Shipbuilding’.
• The Cabinet Committee on Security (CCS), headed by the Prime Minister Narenda Modi, has accorded its approval for signing the above MoU with South Korea.
• The CCS also gave its nod for the nomination of Hindustan Shipyard Limited (HSL), Visakhapatnam from the Indian side for the collaboration.
• South Korea will indicate the name of its recommended organisation for the collaboration in due course of time.