State-owned Mazagaon Dockyard is reportedly in advanced discussions for a potential Rs 35,000-crore deal with the Indian Navy.
According to a report in The Economic Times, the deal is to boost India’s underwater strength by acquiring additional Kalvari-class (Scorpene) submarines for the Navy. Three additional Kalvari-class submarines are under negotiations. These submarines will be larger than their predecessors, the report stated, as well as equipped with modern features. They will also be able to travel further than their predecessors, which can already travel as far as Australia, because of the new technologies in propulsion.
Meanwhile, Mazagon Dock Shipbuilders shares were trading 3.48 per cent higher at Rs 4,030 in Monday’s trade. At this price, turnover on the counter came at Rs 67.66 with a market capitalisation (m-cap) of Rs 81,684.45 crore.
Mazagon has submitted a detailed techno-commercial bid for the contract to the defence ministry, the report added. The new submarines would have at least 60 per cent indigenous content, with a large chunk going to the Indian submarine suppliers and the MSME sector.
While it is yet to be ascertained, the deal could be valued at around Rs 35,000 crore, the report stated adding sources. The deal is further expected to create close to 5,000 jobs.
MDL is expected to gain significant technology transfer that would enable future submarines of the class to be fully designed, developed and manufactured indigenously.
Mazagon is currently constructing the Kalvari class of submarines under Project 75 with the help of France. The sixth and the final one is expected to be delivered by the end of the year. The additional submarines, it proposed, could be delivered within 6 years.