Our foray into modern military shipbuilding began in the 70s-80s with a lot of Russian technical assistance. As such it was to be expected that Russian influences in design choices and weaponry would remain prominent for decades to come. Our shipyards had some experience in building ships, mostly fishing trawlers, patrol boats etc but knew nothing of how to handle construction of large military vessels. As they lacked technological sophistication, they adopted the easiest way of building ships which was the telescopic construction method. The telescoping method was again a Russian influence.
This method of construction is very simple. You start from the bottom and work your way up. First the keel would be laid, then small blocks of hull would be welded together on the keel. The surface of the hull in contact to water would be put together plate by plate, after one plate is welded it would need to be tested for leakages and so on. Then the extra weld beads would have to be grinded to maintain surface quality. Now once you are done with one plate, move to the next and repeat the whole process. Once the hull is complete and tested in the dry dock for leakages, you will have to test it in a wet dock(leakage and static float test) after that the boat is floated out of the dock in an event called "launching". This is to see if the boat floats well under dynamic conditions. Then repeat the whole block-by-block process for the superstructure and finally you have built a ship.
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Pic: A hull module unit of Project 15A Kolkata Class destroyer being built in the Assembly Shop at Mazagon Docks Ltd.
The advantages of this process is that its very simple, doesn't need highly trained labour, doesn't need sophisticated expensive equipment etc. The dis-advantages are : its very time consuming, the cost of ship per unit will be higher than it should be, produces a lot of scrap metal etc.
For any observer of Indian shipbuilding the dis-advantages would sound very familiar. Delayed delivery, cost over runs, expensive per unit costs are some of the most common problems the navy faces today. To answer the initial question of why orders are restricted to 3 or 5 or some other measly number, it is because of these problems. The Navy worries that no matter how modern a ship they may design by the time it is commisioned it might be outdated. Navy also gets the smallest share of budget and the constant cost over runs aren't helping.
So what is the solution out of this doom and gloom situation. Adopting a newer construction method and changing the cycle of piecemeal orders. Over the years the Navy has studied what is known in the west as "Modular construction method". They have worked out what is needed to perform such construction in India and they have modernised shipyards accordingly.
In Modular construction method the entire ship design is cut to large pieces. Think of it like cutting large pieces of a cake. These large blocks would be constructed separately and then joined together to form the entire ship.
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L&T Shipyard repairing a large commercial vessel. Look at the size of those blocks.
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L&T has managed to utilise modular construction method to deliver every ship ordered by the Coast Guards ahead of schedule and with no cost over runs.
The Navy wants to use this method to build the P-17A class frigates. They have also gone from ordering 3-4 ships to 7 at once. It is also important to remember that the Navy isn't opting for modular construction as it is in the west. They have modified it to our requirements and constraints. Whether this experiment will work or not we'll have to wait and see