Pipavav to upgrade Kilo class submarines; announces agreement with Russia to make India servicing hub

NEW DELHI: Eying an upcoming Rs 5,000-crore Indian contract to upgrade Kilo class submarines, Gujarat-based Pipavav Shipyard has announced an agreement with Russia that is looking to create a global servicing hub for submarines in India.

The agreement, which is likely to be converted into a joint venture company with a 51% stake for the Indian company, was inked with Russia’s Zvyozdochka on Tuesday. Pipavav said this is the first time the work for refit of submarines is being considered for the private sector. As reported by ET, Russia had been scouting for an Indian partner for the programme and had been in talks with Pipavav for the past few months.

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Sources said that the understanding is that in the first stage, four Indian Navy Kilo class submarines will be given a second midlife upgrade that will increase their service life by 15 years. This refit contract is currently being negotiated between the Navy and the Russian government.

Once signed, the first of the four Kilo class submarines to be upgraded will be sent to Russia, where engineers and workers from Pipavav will be trained by Zvyozdochka. Work on the remaining three will then be carried out in India. While the initial contract would be for around Rs 5,000 crore, Pipavav has announced that the indicative value of work could be around Rs 11,000 crore.

As reported, Russia is also looking at India as a global repair hub for Kilo class submarines, several of which are operated in the region. Pipavav has said that the joint venture will place it favourably for undertaking similar work for large submarine forces of similar class deployed by countries like Algeria, Vietnam and Iran, with potential additional revenues of approx Rs 20,000 crore.

Zvyozdochka, which conducted a survey of several Indian shipyards in both the public and private sector, has also informed the Indian defence ministry on its selection of Pipavav for the Medium Refit and Life Certification of Kilo class submarines in India.