Centre rejects bid for Rs 45k cr submarine project; MDL-L&T bag deal
The Defence Acquisition Council (DAC), on Tuesday, shortlisted the state-run Mazagon Dock Shipbuilders Limited and Larsen and Toubro Limited for Indian Navy’s Rs 45,000 crore project for six submarines. It, however, rejected the joint bid from Adani Defence and state-run Hindustan Shipyard Limited.
Adani Defence was a strong contender for the project - P-75 I –but failed to make the cut following a detailed evaluation of eligibility criteria by a high-powered committee.
An official from the ministry confirming the news said, “The empowered committee found that all clearances were not in place for the formation of the joint venture that put in the bid for the submarine project. The DAC, which met on Tuesday, endorsed this decision.” Adani remains tight-lipped about its rejection and the deal.
A statement released by the ministry said that the DAC approved shortlisting of Indian Strategic Partners (SPs) and the potential original equipment manufacturers that would collaborate with SPs to construct six conventional submarines in India.
It may be noted that Mazagon and L&T will now together work on individual foreign partners to submit their final bids for manufacturing the six submarines. The foreign companies have expressed interest in the project of which Mazagon and L&T will choose one each as their partner. These foreign companies include South Korea’s Daewoo Shipbuilding and Marine Engineering Co. Ltd, France’s Naval Group, Spain’s Navantia, Russia’s Rosoboronexport and ThyssenKrupp Marine Systems (TKMS) from Germany.
The contract is being processed under the ‘strategic partnership model’ that combines an Indian manufacturer with a foreign company for technological know-how.