Defence Acquisition Council approves RFP for construction of six submarines at $430 mn

The Defence Acquisition Council (DAC), in its meeting held under the Chairmanship of Union Defence Minister Rajnath Singh on Friday, approved proposals concerning capital acquisitions of various equipment for the modernisation and operational needs of the armed forces amounting to approximately $60,000 million (Rs 6,000 crore).

In addition, the DAC also approved the issue of RFP for the construction of six conventional submarines under Project P 75 (I) under the Strategic Partnership (SP) Model.

Also Read |Important for India, China to reach some kind of understanding: Jaishankar at US-India Strategic Partnership Forum

Add WION as a Preferred Source

This project envisages the indigenous construction of six conventional submarines equipped with the state-of-the-art Air Independent Propulsion system at an estimated cost of $430,000 million(Rs 43,000 crore).

As per the official press release by the Ministry of Defence, this is a landmark approval, being the first case processed under the Strategic Partnership model.

This would be one of the largest 'Make in India' projects and will serve to facilitate faster and more significant absorption of technology and create a tiered industrial ecosystem for submarine construction in India.

Also Read |Why Indian Army is seeking 'Future Tanks' amid tensions with China

With accord of this approval, the country will be enabled to achieve its 30-year Submarine construction programme envisioned by the Government to acquire national competence in submarine construction and for the Indian industry to independently design and construct submarines in India.

This project under SP Model provides a unique long-term opportunity and planning certainty for the industry to invest and support submarine construction. It will also infuse the latest technology and weaponry for submarines in India through a strategic tie-up between the Indian Industry and leading foreign Original Equipment Manufacturer (OEMs).

Also Read |Indian Army targets AI-powered battle tanks with eye on China

There was a long pending need of the Indian Army for the modernisation of its Air Defence guns. These had been earlier procured only from foreign sources.

With the continued thrust of the Ministry of Defence towards 'AtmaNirbhar Bharat' and 'Make in India', an enthusiastic response from about a dozen Indian companies was received. All of them have expressed their willingness and commitment to manufacturing this complex gun system and associated equipment by ensuring technology assimilation in India.

Also Read |Post-Brexit roadmap: Key takeaways from UK-India trade deal

Accordingly, the DAC accorded approval of procurement of Air Defence Guns and Ammunition at an approximate cost of $60,000 million (Rs 6,000 crore) under the Buy and Make (Indian) category.

Further to better equip the Armed Forces to meet the operational challenges and facilitate faster induction of required arms and ammunition, the DAC extended the timelines for progressing urgent Capital Acquisitions under the delegated powers to the Armed Forces up to August 31, 2021.

This will enable the Armed Forces to complete their emergent and critical acquisitions.