June 20, 2019 – As a major initiative towards ‘Make in India’, the Government immediately on taking over has issued the Expression of Interest(s) for shortlisting of potential Indian Strategic Partners (SPs) for “Construction of six Conventional Submarines” for P-75(I) Project of the Indian Navy on 20 Jun 19. The project cost is about Rs 45,000 Crores. This is the second project being undertaken under the latest Strategic Partnership (SP) Model, with the first being the procurement of 111 Naval Utility Helicopters (NUH). This would provide a major boost to the indigenous design and construction capability of submarines in India, in addition to bringing in the latest submarine design and technologies as part of the project. The case was approved by the Defence Acquisition Council on 31 Jan 19. The EoI for shortlisting of Indian Strategic Partners has been uploaded on MoD and Indian Navy websites. The EoI for shortlisting of OEMs will be issued in two weeks.
The SPs in collaboration with OEMs have been mandated to set up dedicated manufacturing lines for these submarines in India and make India the global hub for submarine design and production. All six submarines under this project will be built in India by the selected Indian Strategic Partner in collaboration with the selected OEM. In addition, Indian Navy would have the option to manufacture six more submarines under the project. The project would not only aid in boosting the core submarine/ ship building industry but would also greatly enhance manufacturing/ industrial sector, especially the MSMEs by development of an industrial eco-system for manufacture of associated spares/ systems/ equipment related to submarines.
The potential SPs are expected to respond to the EoI within two months. The Indian companies would be shortlisted based on their capability for integration of system of systems, expertise in shipbuilding domain and the financial strength. The OEMs would be shortlisted primarily based on their submarine design meeting the Indian Navy’s Qualitative Requirements and qualifying the Transfer of Technology and Indigenous Content (IC) criteria.
The overall aim would be to progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon systems for the future needs of the Armed Forces. This will be an important step towards meeting broader national objectives, encouraging self reliance and aligning the defence sector with the ‘Make in India’ initiative of the Government.