Govt can evaluate splitting P75I submarine contract between two bidders: Mazagon Shipbuilders

By moneycontrol

India’s order for six conventional submarines, costing Rs 43,000 crore, could go to two companies instead of one, given the current geopolitical situation, a top official of one of India’s submarine makers has claimed.

The Request for Proposal (RFP) for the construction of the Project P 75 (I) submarines under the strategic partnership model is expected to be issued in July. The Defence Acquisition Council has given the go-ahead for the same in June.

The order will go either to Mazagon Dock Shipbuilders (MDL) or Larsen & Toubro (L&T) — the two domestic companies which have to partner with one of the five international original equipment manufacturers (OEM).

However, ahead of the RFP issuance, a top executive of Mazagon Dock Shipbuilders said that the government could look at the possibility of having parallel production of more than just one submarine. This is possible only if the order is shared among both the domestic companies.

Narayan Prasad, Chairman and Managing Director, said: “In the current geopolitical scenario, if the government concludes that the threat perception in the Indian Ocean Region and the South China Sea is so pronounced that they need parallel production of these vessels in a shorter horizon, such concepts can also be conceived. I can’t rule it out.”

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