The Defence Ministry has shortlisted two Indian and five foreign firms for submarine project. It has given nod for Rs 50,000 crore project which involves building six conventional submarines in India for the Navy, besides approving military procurement worth Rs 5,100 crore.
Larsen & Toubro Group and Mazagaon Docks (MDL) have been shortlisted for the Project 75 India, or P75(I), to construct the submarines which is billed as one of biggest Make in India projects.
However, the Defence Ministry rejected the bid placed by Adani Defence and Hindustan Shipyard following a detailed evaluation of eligibility criteria by a high-powered committee.
The five global defence majors have also been selected by the committee for the project, namely ThyssenKrupp Marine Systems (Germany), Navantia (Spain) and Naval Group (France), Rubin Design Bureau (Russia), and Daewoo Shipbuilding and Marine Engineering (South Korea).
Reliance Naval & Engineering was also among the Indian contenders. Within the next six weeks, the Defence Ministry will issue request for proposal (RfP) to MDL and L&T Group, and the two firms will have to submit their detailed bid within three to four months after receiving the document.
Both the companies will have to select a foreign partner out of the five shortlisted entities.
The Indian Navy plans to acquire 24 new submarines, including six nuclear attack submarines to strengthen its underwater fighting capability.
The DAC also 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 the Defence Research and Development Organisation (DRDO) and manufactured locally by the Indian industry.
It also approved prototype testing of trawl assemblies designed by DRDO for T-72 and T-90 tanks providing an indigenous de-mining capability to the Army. Nod was also given for inclusion of innovations for defence excellence (iDEX) in defence procurement procedure which will provide for avenues to startups and innovators wanting to be associated in military supplies.