South block has now confirmed it is going with MDL-TKMS for the 6 next gen SSK project
70,000 crore INR ~ 8.2 billion USD
Centre okays Mazagon Dock & German maker Thyssenkrupp’s bid for multi-billion dollar submarine deal
The L&T-Navantia bid failed to meet technical requirements. The deal, which will easily cost over Rs 70,000 crore, will see the German firm design a new submarine to cater to Indian needs.
The L&T-Navantia bid failed to meet technical requirements. The deal, which will easily cost over Rs 70,000 crore, will see the German firm design a new submarine to cater to Indian needs.
theprint.in
New Delhi: State-run Mazagon Dock Shipbuilders Limited (MDL) and Germany’s Thyssenkrupp Marine Systems (TKMS) have emerged as the winners of the Indian Navy’s mega multi-billion dollar deal to make the next set of six conventional submarines in India with latest stealth features.
The other bid by Indian private firm Larsen and Toubro (L&T) and Spanish firm Navantia failed to meet technical requirements of a proven air independent propulsion (AIP) system for the country’s submarine project, Project 75 India (P75I).
In April last year, ThePrint had reported that
TKMS was the frontrunner to bag the mega contract, when an Indian Navy team was in Germany for a field evaluation of the AIP system.
The deal, which is expected to cost over Rs 70,000 crore—much more than the Rs 43,000 crore benchmark set by the defence ministry according to the Acceptance of Necessity (AON) accorded to the project—will see TKMS design a whole new submarine to cater to Indian requirements.
The design will be given to the Indian Navy, which will then use it to make their own indigenous submarine under Project 76.
Sources said that once the mandatory period of 45 days after informing the contenders is over, during which the decision could be challenged, the bid by MDL would be opened and cost negotiations would start for the formal contract. However, this means there will be no price discovery for the mega project.
The first submarine under P75I is to be delivered in 7 years from the date of signing the contract. So, if a contract is inked tomorrow, the first submarine would come earliest by 2032.
Sources said the Indian Navy submitted its field evaluation trial (FET) report to the defence ministry late last year, which said the TKMS submarine had met technical requirements.
However, L&T and the Spanish government argued that they too had met the criteria and followed Navy protocols. The defence ministry then constituted a three-member technical oversight committee to see if due process was followed. The committee was headed by a Rear Admiral and had one Air Commodore and one Brigadier-rank officer as members.
Earlier this month, sources added, the committee submitted its report saying all due process was followed. After this, the defence ministry took the decision that the L&T-Navantia bid did not meet technical requirements.