Defence Min clears Rs 43K cr project to build 6 submarines
The Defence ministry on Friday cleared a mega project to domestically build six conventional submarines for the Indian Navy at a cost of Rs 43,000 crore in a major decision aimed at significantly boosting the country’s naval prowess in the face of China rapidly expanding its maritime capabilities.
The Defence Acquisition Council (DAC) approved the issuance of the request for proposal (RFP) or the formal tender for the project which will be the first such procurement under the strategic partnership model that allows domestic firms to collaborate with foreign players to produce high-end military platforms in India, according to the defence ministry.
The DAC, chaired by Defence Minister Rajnath Singh, also approved proposals relating to acquisitions of various military weapons including air defence guns and ammunition for the Indian Army at a cost of around Rs 6,800 crore, according to his office.
The formal clearance to the mega submarine programme called Project 75-India came two decades after it was mooted and it may take at least 10 years for the first submarine to roll out after the deal is sealed, sources said. They said the DAC approved the issuance of the RFP to leading shipbuilder Larsen & Toubro (L&T) and state-owned Mazagaon Docks Ltd (MDL) soon. The L&T and MDL were selected following a long-drawn process.
Both L&T and MDL will have to respond to the RFP by tying up with one of the five already short-listed foreign shipyards -- Rosoboronexport (Russia), Daewoo (South Korea), ThyssenKrupp Marine Systems (Germany), Navantia (Spain) and Naval Group (France).
“This project envisages indigenous construction of six conventional submarines equipped with the state-of-the-art air independent propulsion system at an estimated cost of Rs 43,000 crore,” the defence ministry said about the naval project.
“This is a landmark approval, being the first case processed under the strategic partnership model. This would be one of the largest ‘Make in India’ projects and will serve to facilitate faster and more significant absorption of technology and create a tiered industrial ecosystem for submarine construction in India,” it said in a statement.
The ministry said the project will help reduce current dependence on imports and gradually ensure greater self-reliance and dependability of supplies from indigenous sources.