Article Posted on : - Feb 08, 2014

Pipavav Shipyard is located within the vicinity of Pipavav Port, Gujarat. A File Photo.

NEW DELHI (PTI): Indian shipyard Pipavav and German Atlas Elektronik will enter into a joint venture to offer a heavyweight torpedo to the Indian Navy.

"Pipavav Defence aims to offer the Navy a cutting edge heavyweight torpedo in partnership with Atlas Elektronik," an Atlas Elektronik release said here.

The German firm said it has worked with the Navy for over two decades having supplied the hugely successful SUT torpedo for the Shishumar class submarines.

The Navy has recently entered into a contract with ATLAS to upgrade the SUT torpedo.

The firm said it will transfer technology to meet 'buy' (Indian) and 'buy and make' (Indian) criterion.

"Pipvav and Atlas Elektronik will create a JV in which the German firm undertakes ToT while the Indian partner will handle domestic manufacturing and business development. The parties will ensure the suitable financing of the JV through equity or other appropriate investments," it said.

The release said the JV company is also mulling the creation of a Center of Excellence for Torpedo Technology with DRDO and leading public sector defence companies such as BEL and BDL.

"This cooperation will go beyond licensed production and promote domestic absorption of advanced technology to pave the way for a truly indigenous Indian torpedo," it said.

"Our decision to partner with Pipavav is in-line with our ongoing commitment to the Indian market," Atlas CEO Volker Paltzo said.