MDL in Advanced Talks with Defence Ministry for Rs 35,000 Crore Kalvari Submarine Deal

The Indian Navy is set to enhance its underwater capabilities significantly, with Mazagaon Dockyard Limited (MDL) moving closer to securing a ₹35,000-crore deal for three new Kalvari-class (Scorpene) submarines. These submarines are expected to be a substantial upgrade from their predecessors, featuring larger dimensions, advanced electronics, and improved endurance. Enhanced propulsion technology will allow these submarines to operate over greater distances, surpassing the current fleet's operational range, which has seen deployments as far as Australia.

MDL has submitted a detailed techno-commercial bid to the defense ministry, emphasizing a commitment to ensuring at least 60% indigenous content in the construction of these new vessels. This focus on local content will significantly involve Indian sub-suppliers and the MSME (Micro, Small, and Medium Enterprises) sector, strengthening the domestic defense manufacturing ecosystem. 

The estimated contract value of around ₹35,000 crore is in line with international standards for submarines of this class. The project is expected to create approximately 5,000 jobs and keep a significant portion of the contract value within the Indian economy. The high degree of indigenous content will also facilitate substantial technology transfer, setting the stage for future Kalvari-class submarines to be entirely designed, developed, and manufactured in India.

MDL is currently building Kalvari-class submarines under Project 75, with the final, sixth vessel scheduled for delivery by the end of the year. The proposed additional submarines can be delivered within six years, addressing the Navy's urgent need for conventional submarines as its fleet of Russian-origin Kilo-class vessels approaches the end of their service life.

This deal is part of a broader effort to modernize and expand the Indian Navy's submarine fleet. Alongside this agreement, the Navy is also pursuing Project 75I, which aims to construct six additional conventional submarines indigenously. These projects are critical to maintaining the Navy's operational capabilities and ensuring maritime security.

Overall, the acquisition of these advanced Kalvari-class submarines will significantly enhance the Indian Navy's underwater warfare capabilities, boost indigenous defense manufacturing, and create numerous job opportunities, reinforcing India's strategic autonomy in defense.