Mazagon Dock Shipbuilders shares jump nearly 4% as Centre clears Rs 70,000 crore submarine project negotiations

Shares of Mazagon Dock Shipbuilders Ltd (MDL) surged 3.6% to an intraday high of Rs 2,798.15 on the BSE on Monday, August 25, after the Centre granted clearance to the Defence Ministry and MDL to begin negotiations for the purchase of six submarines under the Rs 70,000 crore Project 75 India.

The submarines are to be built in India with German support, with ThyssenKrupp Marine Systems partnering with MDL on the project.

The approval comes after being held up for over six months, with the decision taken following a high-level meeting involving top defence and national security officials who discussed the roadmap and future of India’s submarine fleet.


Defence officials said the negotiations are expected to begin by the end of this month, and the Defence Ministry and Indian Navy aim to conclude contract talks within the next six months and secure final approval thereafter.

The submarines will feature Air Independent Propulsion systems supplied by ThyssenKrupp Marine Systems, allowing them to remain underwater for up to three weeks.

The Defence Ministry has underlined that the project is part of India’s efforts to strengthen indigenous submarine design and manufacturing capabilities.

Alongside this programme, the government is also exploring measures to accelerate submarine construction.

The Indian industry is already engaged in building two nuclear attack submarines, with Larsen & Toubro playing a key role alongside the Submarine Building Centre. The move comes amid the rapid modernisation of China’s naval fleet, with India seeking to enhance its own capabilities to counter both China and Pakistan in its strategic waters.

Mazagon Dock Shipbuilders shares closed 2.3% lower at Rs 2,700.65 on the BSE on Friday.

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