Mumbai-based Mazagon Dock Shipbuilders Ltd (MDL) on Thursday (September 7) said it has formally inked a Master Ship Repair Agreement (MSRA) with the US government, represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka.

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This non-financial pact holds great strategic importance and positions MDL as one of only two shipyards in the country to have entered into such an agreement, according to a stock exchange filing.

The MSRA sets the stage for Mazagon Dock Shipbuilders to provide voyage repairs for US Navy ships, a development that marks a significant step in bolstering India's maritime capabilities. Under this agreement, MDL is poised to offer crucial repair and maintenance services to the US Navy's fleet.

Recently, Larsen and Toubro (L&T) entered into an MSRA with the US Navy, highlighting L&T's Kattupalli Shipyard near Chennai as a qualified facility for conducting voyage repairs of military sealift command vessels.

What is MSRA

The MSRA is a legally non-binding arrangement between the US Navy and private shipbuilding contractors to pre-approve shipyards to repair US naval vessels. The MSRA involves a rigorous vetting process.

For instance, the contractor must be able to complete 55 percent or more of the work package of a vessel, own facilities, utilise its own shops and workforce, maintain a track record of a safe working environment, and be capable of subcontracting to provide adequate oversight of the voyage repair.

Shares of Mazagon Dock Shipbuilders Ltd ended at Rs 2,087.75, up by Rs 182.65, or 9.59 percent on the BSE.

(Edited by : Shoma Bhattacharjee)