New Delhi: The defence ministry on Friday cleared a mega project to domestically build six conventional submarines for the Indian Navy at a cost of around Rs 43,000 crore, in a major decision aimed at significantly boosting India’s naval prowess in the face of China rapidly expanding its maritime capabilities.
The submarines will be built under the much-talked-about strategic partnership model that allows domestic defence manufacturers to join hands with leading foreign defence majors to produce high-end military platforms to reduce import dependence.
The defence ministry also approved proposals relating to capital acquisitions of various military weapons and equipment worth around Rs 6,800 crore, according to Defence Minister Rajnath Singh’s office.
The decisions to approve the naval submarine project named ‘P-75 India’ and the procurement of the military weapons and equipment were taken at a meeting of the Defence Acquisition Council chaired by Singh.
The DAC is the defence ministry’s highest decision-making body on procurement.
In another important decision, the DAC also extended the timelines for procuring urgent capital acquisitions under the delegated powers to the armed forces up to August 31, 2021, to enable them to complete their emergency procurements. “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 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.
“With accord of this approval, the country 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,” it said.
It said the availability of new technologies and advanced manufacturing capabilities to the industry will be an important step towards enhancing the nation’s quest for self-reliance in modern conventional submarine construction
Under the strategic partnership model, domestic defence manufacturers are allowed to join hands with leading foreign defence majors to produce high-end military platforms to reduce import dependence.
Officials said the project will be implemented in a period of around 12 years and the final cost may go up depending on the weapons systems to be incorporated into the stealth submarines.
Sources said the DAC approved the issuance of the request for proposal or tender to shipbuilder Larsen & Toubro and state-owned Mazagaon Docks Ltd.
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 which are Rosoboronexport (Russia), Daewoo (South Korea), ThyssenKrupp Marine Systems (Germany), Navantia (Spain) and Naval Group (France).
It will be for the L&T and MDL to decide about the foreign entity they would like to collaborate for the project.
The RFP is expected to be issued within a month and the contract will be awarded following a detailed evaluation of the response of the L&T and MDL, the sources said.
The groundwork like specifications of submarines and other critical requirements for issuance of the RFP for the mega project has been completed by separate teams of the Defence Ministry and the Indian Navy.