Defence Ministry clears Indian Navy’s proposal to issue tenders for 6 submarines

The Defence Acquisition Council (DAC), on Friday, June 4 approved proposals concerning capital acquisitions of various equipment for the modernisation and operational needs of the Armed Forces amounting to approximately Rs 6,000 crore. The meeting was chaired by Defence Minister, Rajnath Singh.

In addition, the DAC also approved the issue of Request For Proposal (RFP) for the construction of six conventional Submarines under Project P-75 (I) under the Strategic Partnership (SP) Model.

Self-reliant India

Project 75 (I) envisages the 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.

One of the largest ‘Make in India’ projects, it will serve to facilitate faster and more significant absorption of technology and create a tiered industrial ecosystem for submarine construction in India.

From a strategic perspective, the project will also help in reducing the current dependence on imports and gradually ensure greater self-reliance and dependability of supplies from indigenous sources.

“With accord of this approval, India will be enabled to achieve its 30 year Submarine construction programme envisioned by the Government to acquire national competence in submarine construction and for the Indian industry to independently design and construct submarines in India,” Rajnath Singh said in a tweet.

This decision of the government will also help in creating direct and indirect job opportunities in India. Availability of technology, advanced manufacturing capabilities will provide a unique long-term opportunity and planning certainty for the industry to invest and support submarine construction.

Project-75 (I)

The DAC accorded approval of procurement of Air Defence Guns and Ammunition at an approx. cost of Rs 6,000 crore under the Buy & Make (Indian) category.

Further to better equip the Armed Forces to meet the operational challenges and facilitate faster induction of required arms and ammunition, the DAC extended the timelines for progressing urgent Capital Acquisitions under the delegated powers to the armed forces up to August 31, 2021. This will enable the Armed Forces to complete their emergent and critical acquisitions.

Last year, on January 21, DAC had selected two domestic shipyard companies, Mazagon Dock Shipbuilders Ltd (MDL) and private sector firm Larsen & Toubro (L&T), as strategic partners for the Project- 75 programme.

L&T and MDL, under the project, can collaborate with global manufacturers which would boost the indigenous design and construction capability of submarines in India. Moreover, this will also introduce the latest submarine design and technologies as part of the project through strategic tie-up between Indian Industry and leading foreign OEMs.

The Indian Navy has two major projects under the strategic partnership policy which helped develop the indigenous private sector in defence as major producers.

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