India may drop experience clause for local shipbuilders

Monday, 10 January 2011 00:01 - - {{hitsCtrl.values.hits}}

Reuters: India is likely to drop the ‘experience’ clause for local shipbuilders bidding for state contracts by end-January, opening up more opportunities for smaller players and helping them compete with larger international shipyards, a government official said on Friday.

“We will come out with a proposal very soon, probably this month itself,” Shipping Secretary K. Mohandas told Reuters, referring to the ‘experience’ rule.

According to the experience clause, relatively smaller or inexperienced shipbuilders are not allowed to bid for large vessel contracts by state-owned firms.

“If they are assessed to have the proper facilities and competence, then they can be made eligible to bid,” he added.