India and the Republic of Korea (RoK) signed an Inter-governmental Memorandum of Understanding (MoU) for Defence Industry Co-operation in Shipbuilding.
Salient points of the MoU
- Develop and strengthen defence industry co-operation between Republic of India and the Republic of Korea.
- 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.
- MoU will come into effect from the date of signature by both sides and will be initially valid for a period of five years and would be automatically extendable for further successive five year at a time.
- 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.
Significance
Co-operation with the recommended Korean Shipyard would enable Hindustan Shipyard Limited (HSL) to upgrade and modernise its facilities and execute naval shipbuilding projects in a timely and cost effective manner. HSL would be able to imbibe best practices in shipbuilding leading to effective project management. the production of HSL is expected to grow substantially, leading to creation of more employment avenues.
Source : Pib
GS III : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests