What challenges do state-run shipyards face in carrying out complex naval refits on time and within budget? Suggest reforms.

Refits keep warships in service. In November 2026 the Ministry of Defence awarded Cochin Shipyard Ltd. ₹498.58 crore to refit INS Betwa and convert its propulsion from steam to diesel [1]. That shows how complex these jobs have become. Yet the CAG found that 74% of 152 naval refits finished late [3], so the problem is structural, not occasional.

Challenges

• Late starts that cascade: Ships often reach the yard late because of operational commitments. One late refit delays the next, and the Operation-cum-Refit Cycle breaks down [3].
• Infrastructure gaps: The CAG found repair facilities were not equipped to finish refits in the planned time [3].
• Spares shortages: In one submarine refit, spares were finalised 17 months after work began. The Navy then had to use cannibalised and refurbished parts, and re-tendering cost an extra ₹18 crore [5].
• Weak project management: INS Sindhukirti's medium refit was due in 2001 but began only in 2006. Its cost rose from ₹629.50 crore to ₹990.52 crore, and no dedicated project team oversaw the work [4].
• Technical novelty: Changing from steam to diesel means redesigning the engine rooms and other systems [1]. This kind of first-time work makes delays more likely.
• Opaque costing: Betwa's "normal refit" costs more than Beas's broader Mid-Life Upgrade (₹313.42 crore) [1][2]. MoD has not explained the difference, and the reported contract gives no completion date [1].

Reforms

• Dedicated project teams for refits given to outside yards, as the CAG recommended [4]. The team that oversaw Beas at the same yard could carry its lessons to Betwa [2].
• Spares ready on day one: Long-lead items such as engines should be in hand before the ship arrives [5].
• Milestone-based contracts: Publish completion dates, add penalty and incentive clauses, and let the Parliamentary Standing Committee on Defence check costs against earlier contracts.
• Staggered scheduling: Plan refits of sister ships one after another so that force levels hold.
• Greater indigenous content: Measure success by the share of value made in India, not just by counting the 50+ MSMEs involved [1].

State-run yards have the skills but lose time to poor planning, missing spares and weak oversight. Dedicated project teams, firm deadlines and transparent costing can make each refit a test of Aatmanirbhar Bharat in defence and keep the fleet ready.