MDL in advanced talks with Defence Ministry for Rs 35,000 crore Kalvari submarine deal

New Delhi: Talks on acquiring additional Kalvari-class (Scorpene) submarines for the Navy have progressed, with state-owned Mazagaon Dockyard Limited (MDL) in advanced discussions for a potential ₹35,000-crore deal that will help boost India's underwater strength.

Sources said that the new submarines -- three additional Kalvari-class which are under negotiation -- will be larger than their predecessor and will be packed with modern electronics that will give them better strength and longer endurance.

Technological advances in propulsion will also be integrated on the new boats, which will be able to travel further than their predecessors that have already demonstrated the ability to reach as far as Australia as part of operational deployments.

MDL has submitted a detailed techno-commercial bid for the contract to the defence ministry, which has promised at least 60% indigenous content in the new boats, with a large chunk of the work going to Indian sub suppliers and the MSME sector.

While the final pricing will be determined after hard negotiations between MDL and the ministry, the deal could be valued at around Rs 35,000 crore, sources said, adding that this would be in line with international prices for new submarines of the class. The order is also expected to create close to 5,000 jobs over the years and a major part of the contract value will remain within the India ecosystem.

Given the high percentage of indigenous content, MDL and its suppliers are also expected to gain significant technology transfer, paving the way for future submarines of the class to be fully designed, developed and manufactured indigenously.

MDL is currently constructing the Kalvari class of submarines under Project 75 with French assistance, with the sixth and final one likely to be delivered by the end of this year. As per MDL's proposal, the additional submarines can be delivered within six years.

This will come as a relief for the Navy given the urgent requirement of conventional submarines as the largest current fleet of Russian-origin Kilo class boats are already stretching their service life. The Navy is also in parallel pursuing a case to construct six conventional submarines in India under Project 75I.