The government is good to go to roll out the process for the Rs. 60,000-crore submarine program, moving quickly after unveiling a major policy for defence manufacturing in the nation.
The venture is set to be the first one to be launched under the ambitious ‘Strategic Partnership’ demonstrate finalised a month ago which plans to rope in leading private players for defence production.
The Defense Ministry is probably going to issue the Expression of Interest for the project soon, to kick begin the process for mega deal, official sources said.
Engineering conglomerate Larsen and Toubro and Reliance Defense are the only two defence firms eligible to take part in the P-75 I program, said another source.
The government will subsequently start the procedure to shortlist the foreign original equipment manufacturers (OEMs) for the project based set down standards in the strategic partnership model.
Six Scorpene-class submarines are currently being built under ‘Project 75’ of the Indian Navy. The submarines, designed by French naval defence and energy organization DCNS, are being built by Mazagon Dock Limited in Mumbai.
The project P-75 (I) will be a follow-on project of Project 75. A sum of six submarines are to be built under the P-75 (I) project.
Under the SP model, select private firms will be engaged to build military platforms like submarines and fighter jets in India in partnership with foreign entities.
A 49% FDI cap has been kept for setting up ventures under the strategic partnership model for production of defence platforms and the organizations will be in control of Indian entities.
According to the framework, to manufacture major defence platforms, the select Indian organizations will require tie-ups with OEM for transfer of technology (ToT).