Indian Navy in talks with Mazagaon Dockyard for three new Kalvari submarines

24 Jun 2024 , 05:35 PM

State-owned Mazagaon Dockyard is reportedly in advanced discussions for a potential ₹35,000-crore deal with the Indian Navy, as reported by The Economic Times. This deal aims to strengthen India’s underwater capabilities by acquiring additional Kalvari-class (Scorpene) submarines. Three new Kalvari-class submarines, larger and equipped with modern features, are under negotiation. These new submarines will have enhanced propulsion technologies, allowing them to travel further than their predecessors, which can already reach as far as Australia.

On Monday, shares of Mazagon Dock Shipbuilders were trading 3.48% higher at ₹4,030. At this price, the turnover on the counter was ₹67.66 Crore, with a market capitalization of ₹81,684.45 crore.

Mazagon Dock Shipbuilders has submitted a detailed techno-commercial bid for the contract to the defense ministry. The new submarines would feature at least 60% indigenous content, benefiting Indian submarine suppliers and the MSME sector.

The deal, which could be valued at around ₹35,000 Crore, is expected to create nearly 5,000 jobs. Mazagon Dock Shipbuilders is set to gain significant technology transfer, enabling future submarines of this class to be fully designed, developed, and manufactured domestically.

Currently, Mazagon Dockyard is constructing the Kalvari class of submarines under Project 75 with assistance from France. The sixth and final submarine of this project is expected to be delivered by the end of the year. The proposed additional submarines could be delivered within six years.