Concall — clean across the call.

What is the opportunity for shipbuilding in India — Navy/Coast Guard expansion plans and tendering?

Thank you, Mr. Dalal. I would like to answer this question in two parts . One, as far as the current fleet, strength of Navy and Coast Guard are concerned. Navy has got around 150 platforms and Coast Guard about nearly 100 platforms, when I say platforms, they include small vessels like Fast Interceptor Crafts to larger platforms. Right now, currently 61 platforms are being built for both the forces put together and of these 61 , 60 are being built by Indian Shipyard. Now coming to their capacity augmentation plans, both the forces have got their perspective plan, and as per what is available in the open domain, both these forces, Navy and the Coast Guard, want to expand their numbers. The Navy perhaps to a figure of +200 and Coast Guard perhaps to a figure of around 150.

Order book breakup project-wise; pipeline order sizes; NGC bid timing?

Thank you, I will start with the order book break up. As I mentioned, our order book stands at ₹22,680 crores and P-17 Alpha still continues to be the biggest bread earner. We are left with around ₹11,435 crores from P-17 Alpha project. The Anti-Submarine Shallow Watercraft project ₹3,946 crores. T he Survey Vessel Large project, it is actually on the anvil of closing so, ₹530 crores, the Offshore Patrol Vessel i.e. NGOPV project, ₹3,327 crores. The non-defence platforms, the NCPOR Ocean Research Vessel, ₹785 crores, the Acoustic Research Ship, ₹466 crores, the Ferry project, ₹226 crores. And the export projects, the M ultipurpose Vessel, Dredger and so on, around ₹1,200 crores. And the 30 mm G un project, ₹201 crores.

NGC and other pipeline value sizing?

Now coming to you had asked a question about, what is the likely the value of the projects that are on the anvil. As I had mentioned, the Next Generation Corvette project is a high value project, and here we expect, our anticipation is that the total order value could be to the tune of ₹40,000 plus crores. But this ₹40,000 crore will be split between two shipyards, with the L1 shipyard getting 5 ships, that is 5/8, which means the L1 shipyard, the order of value could be to the tune of ₹25,000 plus crores, which is a very big order . Coming to the Next Generation Survey Vessel, our appreciation is that the order value could be to the tune of around ₹3,500 crores. And the 18 NGFPV project could be to the tune of ₹3, 000 crores.

₹433 crore provision write-back — what is it related to?

This is linked to the P-17 Alpha project. The first ship is actually at the verge of delivery, I had mentioned that the first ship has completed her final machinery trials, and she is actually getting ready for delivery, so we have reasonable clarity on the cost to completion. Accordingly, the provision is reversed, and we will be this profit will be accounted over the next one to two years, when the entire project gets completed. Which means this a three ship project, so the first ship now ready for delivery, and the next two ships , as I had mentioned, will be one of them will be definitely spilling over to the next financial year. So, this will get recognized within one to two years.

Can the provision write-back amount go higher than ₹433 crores?

It will be more or less same. Since we know the cost to completion of the first ship, the condition is going to be more or less same, which is the positive side.

When is NGC contract likely to be awarded?

In the normal course of events, after the L1 is declared, then the contract negotiation starts . The contract negotiation is the long -drawn process for major projects like this. We expect very, very optimistic timeline of contract conclusion by December this year, and a conservative timeline of March next year. But, I personally feel if together over the L1 shipyard and the Navy pushes, the contract can be signed by end of this calendar year.