Larsen & Toubro, Navantia inks pact for Indian Navy’s submarine program

11 Jul 2023 , 02:04 PM

Larsen & Toubro (L&T) announced on Monday that it signed a collaboration agreement with Navantia of Spain to submit a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine program.

The P75 (India) Submarine Project, the largest defence acquisition project of the country, is expected to cost €4.8 billion (over Rs 43,500 crore).

Project 75 (I) requires the Indian bidder to partner with a Foreign Collaborator (FC) to carry out the program, involving the delivery of six conventional submarines equipped with Air-Independent Propulsion (AIP) while meeting the targeted Indigenous Content.

This would be followed by a similar-value 30-year lifecycle maintenance contract. This would be the first program to be carried out under the Strategic Partnership (SP) acquisition model of the Ministry of Defence.

On 11 April 2023, L&T and Navantia signed an MoU for the program, which has now concluded.

According to the agreement, Navantia will design P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is currently undergoing sea trials before being delivered to the Spanish Navy at the end of 2023.

Other than S80 class, Navantia collaborated with DCNS (now Naval Group) of France on the design and construction of the Scorpéne class of submarines, which were exported to Chile and Malaysia. Navantia was also involved in the construction of the Scorpene submarines (Kalvari class) in India, including the handholding of the Indian yard.

At around 2.03 PM, Larsen & Toubro was trading 1.38% higher at Rs 2,472.35 per piece, against the previous close of Rs 2,438.75 on NSE.

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