NEW DELHI: Larsen and Toubro (L&T) and Spanish ship building company Navantia on Monday have joined hands to submit a techno-commercial bid for the Indian Navy’s P75 (India) submarine programme. They will now compete with Mazagon Dock and Germany’s ThyssenKrupp Marine Systems for the bid that is likely to be invited soon. Valued at Rs 43000 crore (approximately), this is one of India’s largest defence projects.
L&T and Navantia signed an MoU for the programme on April 11 in Madrid, which has now culminated in this bid. Mazagon signed the MoU with ThyssenKrupp on June 7. Five companies had evinced interest and these two qualified.
"Spain supports completely the idea of make in India and this agreement will take that forward," said Jose Maria Ridao, Spain’s Ambassador to India, after the signing of the agreement, adding that the Spanish government is engaged with the idea of transferring technology to its ally India.
The six stealth submarines will be built for the Indian Navy under the Strategic Partnership model of the Ministry of Defence that mandates foreign companies to partner with domestic builders.
The Naval project requires the Indian bidder to tie up with a foreign collaborator (FC) and execute the programme for delivery of six conventional submarines equipped with air-independent propulsion (AIP), while achieving the targeted indigenous content.
Once the bidder is announced, it would be followed by a 30-year lifecycle sustenance contract of similar value.
"Our presence here today is important not just because it is commercial issue but also a diplomatic issue. Even though Spain is geographically far from India, our hearts are close. This agreement is an opportunity to have a long-term association with India," Ambassador Ridao added.
Meanwhile, L&T which is India’s largest private sector defence company, has an association with Spanish companies across various sectors that include railways, water and solar.
"Navantia’s glorious 300-year-old track record in naval construction and technical expertise gives us a competitive advantage in this programme and offers the bio-ethanol stealth technology (BEST) and environmentally green AIP solution," said L&T CEO SN Subrahmanyan.
Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is undergoing sea trials prior to its delivery to the Spanish Navy at the end of 2023. Apart from the S80 class, Navantia has been involved in the design and construction of the Scorpene class of submarines together with DCNS (Now Naval Group) of France, which have been exported to Chile and Malaysia. Navantia has also been involved in the Scorpene submarines (Kalvari class) built in India, including handholding of the Indian yard.
"It gives us great joy to be in a position to be the design and technology partner for P75(I). We are also in collaboration with L&T for the Landing Platform Dock (LPD) programme whose tender is eagerly awaited," said Naval Construction Vice-President and Member of the Navantia Board Augustin Alvarez Blanco.
L&T and Navantia are also seeking cooperation in other military programmes as well as in green energy opportunities, including offshore wind through Navantia Seanergies division.