"Defence Ministry clears deal for 6 submarines"
The Defence Acquisition Council (DAC), headed by Defence Minister Rajnath Singh, on Friday approved the issuance of a Request For Proposal for the construction of 6 conventional submarines under Project-75I at an estimated cost of ₹43,000 crore. At a meeting, it also approved the obtaining of air defence guns and ammunition for the Army at an approximate cost of ₹6,000 crore.
“Being the first case processed under the Strategic Partnership model, also this is a landmark approval. This would be one of the largest ‘Make in India’ projects and it will create a tiered industrial ecosystem for submarine construction in India,” Mr. Singh said on Twitter about the submarine deal.
With this approval, India would be enabled to achieve its 30-year submarine construction programme envisioned by the government to acquire national competence in their submarine building and for Indian industry to independently design and construct them, he noted.
The SP model of the Defence Procurement Procedure (DPP) aims to promote the role of manufacturing and build a domestic defence industrial ecosystem of indian industry.
The RFP is expected to be issued in the next couple of months, a defence official mentioned. It would take at least two-three years for the deal to be concluded, and given the high technology and the long timelines, the cost would be spread over many years, a defence official also mentioned.