Indian MoD Kicks off $6.5 B Project 75 (I) Submarine Acquisition Program

The Indian Government issued an Expression of Interest (EoI) for short-listing of potential Indian Strategic Partners (SPs) for the construction of six conventional submarines under the P-75(I) project of the Indian Navy on 20 Jun 19.

The project cost is about Rs 45,000 Crores (US$6.5 Billion). The SPs will in turn partner with international original equipment manufacturers (OEMs) to execute the project. 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), a government press release said.

The case was approved by the Defence Acquisition Council on 31 Jan 19. The EoI for short-listing 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 by development of an industrial eco-system for manufacture of associated spares, systems and 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.

Potential international vendors include the Naval Group, which is executing the Project 75 submarine project in collaboration with Mazagaon Docks, Russian Shipyards and Saab which has experience in building submarines for the Swedish Navy. Japanese Kawasaki and Korean Daewoo and Hyundai too could be in the running.