Defence Ministry approves Rs 5,100 crore worth of procurement

New Delhi, January 21

In a significant move, the Defence Ministry on Tuesday shortlisted two Indian shipyards and five foreign defence majors for the Rs 50,000 crore project to build six conventional submarines in India for the Navy besides approving military procurement worth Rs 5,100 crore.

The shortlisted Indian entities to construct the submarines, being billed as one of biggest ‘Make in India’ projects, are L&T group and state-owned Mazagaon Docks Ltd (MDL), official sources said.

Adani Defence, which was a strong contender for the project, named as P-75 I, failed to make the cut following a detailed evaluation of eligibility criteria by a high-powered committee, they said.

The mega project is being implemented under the ambitious strategic partnership model under which select private firms are being roped in to build military platforms like submarines and fighter jets in India in partnership with original equipment maker.

The decisions on the submarine project and procurement of military equipment were taken at a meeting of the Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh and attended by Chief of Defence Staff Gen. Bipin Rawat.

The five global defence majors selected by the committee for the P-75I project included — ThyssenKrupp Marine Systems (Germany), Navantia (Spain) and Naval Group (France).

Within the next six weeks, the Defence Ministry will issue RFP (request for proposal) to MDL and L&T and the two firms will have to submit their detailed bid within 3-4 months after receiving the document.

Both L&T and MDL will have to select a foreign partner out of the five shortlisted entities.

“The DAC approved shortlisting of Indian strategic partners (SP) and the potential original equipment manufacturers (OEMs) that would collaborate with SPs to construct six conventional submarines in India,” the Defence Ministry said in a statement.

It said strategic partner is expected to play a “transformational role” in building an eco-system in the country, comprising development entities, specialised vendors and suppliers.

The Indian Navy plans to acquire 24 new submarines, including six nuclear attack submarines to bolster its underwater fighting capability.

The Defence Ministry also said the DAC accorded approval for procurement of equipment worth over Rs 5,100 crore from indigenous sources.

These include sophisticated electronic warfare systems for the Army designed by Defence Research and Development Organisation (DRDO) and manufactured locally by the Indian industry.  — PTI