Mazagon Dock Shares Soar on Rs 1,990 Crore Defense Deal

31 Dec 2024 , 12:46 PM

Following the Ministry of Defence’s Monday signing of two significant contracts totaling Rs 2,867 crore with Mumbai-based Mazagon Dock Shipbuilders Limited and Naval Group, France, Mazagon Dock Shipbuilders’ shares jumped 4.6% to reach their day’s high of Rs 2,370.50 on the BSE.

These agreements are intended to improve the capabilities of the Indian Navy’s submarines, especially the Kalvari-Class, by utilizing cutting-edge technologies such as Electronic Heavy Weight Torpedo (EHWT) systems and Air Independent Propulsion (AIP).

For the development of an AIP Plug and its integration with the DRDO-developed AIP system onboard Indian submarines, a deal worth around Rs 1,990 crore was signed with Mazagon Dock Shipbuilders Limited (MDL), Mumbai. It is anticipated that this technology, which is being developed domestically by the Defence Research and Development Organization (DRDO), will increase the conventional submarines’ endurance in India.

According to a news release from the Defense Ministry, the integration of AIP systems enables submarines to remain underwater for extended periods of time without having to surface, enhancing their operational and stealth capabilities.

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