Defence Ministry Signs ₹2,867 Crore Deals to Boost Submarine Capabilities

31 Dec 2024 , 12:02 AM

The Ministry of Defence (MoD) has taken a big step to strengthen India’s submarine fleet by signing two contracts worth ₹2,867 crore. The said deal was signed on December 30, 2024, in New Delhi with Defence Secretary Rajesh Kumar Singh in attendance.

While the first contract was entered with Mazagon Dock Shipbuilders Ltd, Mumbai. Worth ₹1,990 crore, it entails fabricating an Air Independent Propulsion (AIP) plug using DRDO advanced technology. The AIP plug will extend the submerged time of submarines by manifold orders, thereby enhancing performance and effectiveness.

This initiative would also support the ‘Aatmanirbhar Bharat’ plan in creating employment for almost three lakh man-days toward developing India’s self-reliance. The second one involved a contract worth ₹877 crore with Naval Group of France to fit up Kalvari-class submarines with EHWT systems.

The new torpedoes, which were developed in association with DRDO, will significantly enhance the firepower of these submarines, rendering them stronger. This upgradation is a tripartite exercise between the Indian Navy, DRDO, and Naval Group, France.

Mazagon Dock Shipbuilders Ltd is also solid on the financial front, as its quarterly profit jumped by 76% to ₹585 crore and revenue increased by 51% to ₹2,757 crore. Even with higher provisions, the company’s EBITDA rose to ₹510 crore, with margins doubling to 18.5%. The order book of Mazagon Dock stands at ₹39,872 crore, which is a good sign for the future of the company and India’s defense sector.