Defence Ministry clears Rs 43,000 crore plan to build six submarines in India

The decision was taken at a meeting of the Defence Acquisition Council

More than 13 years after the Centre accepted the necessity of having a second batch of conventional submarines to guard Indian waters, the Defence Ministry on Friday approved a Rs 43,000 crore global tender to build six under-water boats at an Indian yard with technology from a foreign vendor.

The Defence Acquisition Council headed by the Defence Minister Rajnath Singh cleared the long-awaited project, which would be the first Strategic Partnership programme of the Narendra Modi government that announced the scheme in its first year in office to boost the manufacturing sector.

All the six submarines will be fitted with air independent propulsion technology that would allow such diesel-electric boats to stay under water for a longer duration.

Three from the first batch – the Scorpene class submarines INS Kalvari, INS Khandari and INS Karanj – have been inducted in the Navy while the fourth and fifth, Vela and Vagir, are under sea trial. The sixth submarine of Project-75 is being outfitted now.

The new batch of six submarines will be built either by Mazagon Dock Limited or the L&T, which will win the final bid. They are the two Indian shipyards that have been selected by the Defence Ministry last year for the submarine construction under Project-75I..

The five foreign vendors in contention are Rosoboronexport (Russia), Naval Group (France), Daewoo (South Korea), Thysenkrupp Marine Systems (Germany) and Navantia (Spain). They would have to tie up with the Indian vendors for submitting the bids, which will be examined first by the Defence Ministry and subsequently by the Cabinet Committee on Security before the final contract is awarded.

"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,” a Defence Ministry spokesperson said in a statement.

India is critically short of submarines while China is ramping up its underwater fleet. Way back in 1999, Indian Navy planned to acquire 24 diesel electric submarines over the next 30 years. Even though the plan and the deadlines were modified twice later, the targets set up in the 2008-2022 indigenisation plan is way off the mark as Indian Navy currently operates 15 diesel electric and two nuclear-powered boats.

Even if everything goes according to the plan, sources said it would take at least 10 years to induct the first submarine from P-75I.

In addition, the DAC approved procurement of air defence guns and ammunition at an approximate cost of Rs 6,000 crore.