In big boost to Indian Navy, Defence Ministry clears Rs 45,000 crore mega-deal for submarine procurement

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New Delhi: The Defence Acquisition Council (DAC) on Friday cleared the issuing of a Request For Proposal (RFP) for the Indian Navy`s mega-deal to procure six submarines under Project-75I through a strategic partnership route worth over Rs 45,000 crore.

Two Indian companies and five foreign Original Equipment Manufacturers had already been shortlisted earlier. Indian Navy's mega-deal was approved during the DAC meet on Friday led by Defence Minister Rajnath Singh.

The DAC also approved issue of RFP for construction of six Conventional Submarines under Project P 75 (I) under the Strategic Partnership (SP) Model. This project envisages indigenous construction of six conventional submarines at an estimated cost of Rs 43,000 cr. — रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) June 4, 2021

The mega submarine project for the building of indigenous submarines for the Navy got the final clearance wherein two Indian companies can work in collaboration with a foreign manufacturer. The RFP has been issued to Mazagon Docks (MDL) and private company Larsen & Toubro.

Under Project 75I, the submarines for the Indian Navy are going to be constructed in India and will be through ToT by the OEMs. This project is under the strategic partnership model which was adopted in an effort to ensure building capacity in the Indian industry.

The idea is that this is going to help in the local manufacturing of major military platforms. The project received a clearance from the Cabinet Committee on Security (CCS) way back in 1999 and Acceptance of Necessity granted in 2007.

The strategic partnership model aims at promoting India as a manufacturing hub for defence equipment, in addition to establishing an industrial and R&D eco-system capable of meeting the future requirements of the Armed Forces besides giving a boost to exports.

The Indian Navy currently has 12 submarines. In addition, there are two nuclear submarines INS Arihant and INS Chakra in the navy`s fleet.

Upgrading its submarine operations and the naval fleet has been the top priority for the Indian Navy in wake of the increased presence of Chinese vessels in the Indian Ocean region.