DAC approves RFP for construction of 6 submarines a cost of Rs 43,000 crore

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First such acquisition under Strategic Partnership model to give a big boost to Make in India

DAC also approves Air Defence guns and ammunition for Army worth Rs 6,000 Cr

New Delhi: Defence Acquisition Council led by Raksha Mantri Rajnath Singh on Wednesday approved issue of Request For Proposal (RFP) for the construction of six Conventional Submarines under Project P 75 (I) under the Strategic Partnership (SP) Model.

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

The landmark approval, being the first case processed under the Strategic Partnership model, 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. From a strategic perspective, this will help reduce current dependence on imports and gradually ensure greater self-reliance and dependability of supplies from indigenous sources.

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.The availability of new technologies and advanced manufacturing capabilities to the Industry will be an important step towards enhancing the nation’s quest for self-reliancein modern conventional submarine construction and sustainment activities whilst creating direct and indirect job opportunities 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 strategic tie up between Indian Industry and leading foreign OEMs.

The Defence Acquisition Council (DAC) also approved proposals concerning Capital Acquisitions of various equipment for modernisation and operational needs of the Armed Forces amounting to approximately Rs 6,000 crore.

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

With the continued thrust Ministry of Defence towards ‘ÁtmaNirbhar 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 manufacture this complex gun system and associated equipment by ensuring technology assimilation in India.

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

Further to better equip the Armed Forces to meet the operational challenges and facilitate faster induction of required arms and ammunitions, the DAC extended the timelines for progressing urgent Capital Acquisitions under the delegated powers to the Armed Forces upto August 31, 2021.  This will enable the Armed Forces to complete their emergent and critical acquisitions.