Defence Ministry okays Rs 43,000 crore tender for 6 more submarines

Ajay Banerjee
Tribune News Service
New Delhi, June 4

The Ministry of Defence on Friday okayed the proposal to issue a formal tender for a Rs 43,000 crore project to construct six new-generation stealth conventional submarines in India.

A foreign manufacturer will tie up with an Indian partner under what is termed as ‘strategic partnership (SP) model’ to make these under-sea vessels for nearly $ 5.8 Billion. The SP model entails foreign manufacturers working in India at the facility of its Indian partner.

India has asked for submarines, that will run on a mix of Diesel-electric power, to have air-independent propulsion (AIP). An AIP adds to be submergence capabilities, allowing the submarine to dive for 12-15 days, much more than the 4-5 days endurance of conventional subs.

The Indian Navy would have the option to manufacture six more submarines under the project.

The Defence Acquisition Council (DAC), headed by Defence Minister Rajnath Singh, okayed the move. The DAC is the apex decision making body of the MoD. The case will go to the Cabinet Committee on Security for formal ratification. Known as the ‘project 75-India’, the DAC okayed the next step that is Request for Proposal (RFF) for the submarines.

Under the procurement rule of the MoD, the RFP is the second stage of the tendering process. This will be followed by technical evaluation of bids, cost evaluation and negotiations, technology transfer on offer, before a contract is signed.

The Ministry of Defence owned shipyard Mazagon Docks (MDL) and Larsen & Turbo (L&T) have been shortlisted among bidders. The latter is a private entity and is engaged in making the hulls of the Arihant Class of Indian strategic submarines.

Both will have a tie-up of their own with the original equipment manufacturer (OEM) from the five makers short-listed by the MoD earlier.

The five foreign companies in the race are South Korean company Daewoo Shipbuilding & Marine Engineering, The Naval Group of France, Navantia of Spain, ThysenKrupp Marine Systems of Germany and the Rosboronexport of Russia.

The Naval group in collaboration with the MDL is already making six conventional submarines.

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