Mazagon Dock in advanced talks with Defence Ministry for Rs 35,000-cr Kalvari submarine deal
Scorpene submarine Vaghsheer. Source: PIB
State-owned Mazagon Dockyard Limited (MDL) is said to be in advanced discussions with the Defence Ministry for a potential Rs 35,000-crore deal on acquiring additional Kalvari-class (Scorpene) submarines for the Indian Navy. The pact will help boost India's underwater strength.
A report by The Economic Times quoted sources as saying that the three additional Kalvari-class submarines, which are under negotiation, will be larger than their predecessors and will come equipped with latest electronics that will provide them better strength as well as longer endurance.
The report further said that the technological advances in propulsion will also be integrated on the new submarines, which will be able to cover a longer distance than their predecessors that have reached as far as Australia as part of operational deployment
A detailed techno-commercial bid for the contract has also been submitted by the MDL to the Ministry of the Defence, the report said. The contract promised at least 60 per cent indigenous content in the new boats, with the maximum amount of work being given to Indian sub suppliers as well as the MSME sector.
The report mentioned the source as saying that the final price is yet to be determined between MDL and the defence ministry after negotiations, the deal could be valued around Rs 35,000 crore, in line with international prices of the new submarines of the class.
The order is also being said to create nearly 5,000 jobs over the years.
MDL as well as its suppliers are expected to gain significant technology transfer that would pave a path for future submarines of the class to be fully designed, developed and manufactured indigenously.
At present, MDL is constructing the Kalvari class of submarines under Project 75 with the help of France and the sixth and the final one is expected to be delivered by the end of 2024.
The additional submarines, as proposed, could be delivered within six years.