New Delhi: Larsen & Toubro and Spanish defence major Navantia on Monday inked a 'teaming agreement' to jointly bid for the Indian Navy's Rs 43,000-crore contract for the procurement of six stealth submarines.
The firming up of the pact came over a month after German defence major Thyssenkrupp Marine Systems (TKMS) and state-run Mazagon Dock Shipbuilders Ltd (MDL) signed a framework agreement to bid for one of the biggest defence acquisition projects under the 'Make in India' initiative.
"Larsen & Toubro and Navantia, Spain signed a Teaming Agreement (TA) today for the purpose of submission of a techno-commercial bid for the Indian Navy's prestigious P75 (India) submarine programme," the L&T said in a statement.
The pact was signed at a ceremony in Delhi in the presence of, L&T CEO and Managing Director S N Subrahmanyan, Naval Construction Vice President and Member of the Board of Navantia Augustin Alvarez Blanco and Spanish envoy Jose Maria Ridao Dominquez.
The defence ministry is in the process of procuring the six domestically built conventional submarines for the Indian Navy under the Project-75 (India) programme.
The construction of the submarines would take place in India and is expected to have significant local content.
The submarines will be built under the much-talked-about strategic partnership (SP) model that allows domestic defence manufacturers to join hands with leading foreign defence majors to produce high-end military platforms to reduce import dependence.
The bidding process for the project called P-75 India ends in August.
The defence ministry is likely to finalise the winner of the contract by the end of this year or early next year, officials said.
According to the agreement, 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 Spanish Navy at the end of 2023.
Apart from 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.
Speaking on the occasion, S N Subrahmanyan said his company is proud to collaborate with Navantia for this prestigious programme of strategic importance for the nation's security.
"Navantia's glorious 300-year-old track record in naval construction and technical expertise gives us a competitive advantage in this programme and offer the Bio-Ethanol Stealth Technology (BEST) and environmentally Green AIP solution," he said.
"We are committed to providing the most contemporary solution for Indian Navy's requirements at a competitive price," the L&T CEO said.
Alvarez Blanco said: 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."
With these two prestigious programmes for the Indian Navy, Navantia is proud to be making a key contribution towards fulfilling the defence needs of India, a nation with which Spain shares an excellent relationship, he added.
The L&T said Project 75 (I) requires the Indian bidder to tie up with a foreign collaborator and execute the programme for the delivery of six conventional submarines equipped with Air-Independent Propulsion (AIP), while achieving targetted Indigenous content.
"Expected to be valued at over Euro 4.8 billion, the project is India's largest defence acquisition project," it said in a statement.
"This would also be followed by a 30-year lifecycle sustenance contract of similar value," it said. The L&T said it and Navantia signed an MoU for the programme on April 11 in t Madrid, which has now culminated in this teaming agreement.
"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," it said.
(Written by Defence Watch desk with PTI input)
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