Bharat Forge Buys Majority Stake In Ukrainian Gas Turbines Manufacturer Zorya-Mashproekt
Bharat Forge recently acquired a 51% stake in the Indian arm of Ukrainian firm Zorya Mashproekt. Zorya's gas turbine powerplants are used in all of India's destroyers and the Talwar class frigates.
The war in Ukraine has caused India to accelerate its process of moving away from the Russian defence industry. The ongoing war had put India in a Catch-22 situation and delayed the two remaining ships in the class.
The agreement for the acquisition was signed by the Kalyani Strategic Systems Limited, wholly owned by Bharat Forge on May 9, 2023, and the acquisition process was completed on December 31, 2023, the EA Times reported.
A majority of Indian warships use Ukrainian engines. Besides manufacturing key components for regular overhaul and maintenance, the factory is currently producing gas turbine engines for two Russian origin frigates that are to be made at the Goa Shipyard Limited (GSL) under a contract signed in 2016.
In September 2016, the defence ministry had signed contracts with Zorya-Mashproekt for the supply of two sets of gas turbine engines that are to be fitted on the Project 11356 class frigates. The $71.6 million contract for the turbine engines had been fulfilled with the equipment being delivered to the Russian Yantar shipyard, where two of the frigates are being manufactured.
Another contract for additional two sets was signed for the balance two frigates that are being made at the Goa Shipyard Ltd. Work on these frigates has already started while the Russian made ships are expected to be delivered within two years.
Contingency plans are also being considered given the crisis in Ukraine, according to the people cited earlier, to reduce dependency on a single source for such critical equipment. One option is to set up gas turbine manufacturing plants in India under a partnership programme but the financial viability has to be studied.
It is also learnt that European gas turbine manufacturers are offering their products as an alternative to Ukrainian systems. This fitment of a different engine would be a complex process as it would require some design changes.
The situation will be remedied soon as Kalyani Strategic Systems (KSSL) has acquired a majority stake in the Indian arm of Ukrainian Zorya Mashproekt.
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