At the last moment, the Adani Group submitted a bid for the Rs 45,000-crore Indian Navy submarine project, which surprised other contenders as the largest ongoing Make-in-India initiative in the defense sector.
The much-awaited competition was expected to become a face-off among traditional contenders such as Larsen & TubroNSE 0.49% (L&T), Mazgaon Dock Shipbuilders Limited (MDL) and Reliance Naval & Engineering Limited, which are all shipyards. The Adani Group does not currently have an active shipyard, which is why the bid came as a surprise.
People familiar with the details told ET that the Gujarat-based group could float a Special Purpose Vehicle (SPV) along with the state-owned Hindustan Shipyard (HSL), which has experience in submarine repair and overhaul.
HSL’s standalone bid:
Interestingly, HSL has also made a standalone bid.
The Adani Group, which did not respond to queries, is now a contender for all three mega defense acquisition plans under the government’s strategic partnership model – for future fighter jets, naval helicopters and conventional submarines.
Others who submitted bids for the submarine program are L&T, MDL and Reliance Naval.
The contract, under which an Indian shipyard will be selected to build six conventional submarines in collaboration with a foreign partner, is in its initial stages. In the next two months, the Ministry of Defense will scrutinize bids to shortlist qualified Indian contenders.
A formal tender for the contract – after foreign partners from Russia, France, Germany, Spain, and Sweden are selected as part of a parallel process – is expected by the end of the year. At the earliest, the submarine contract may be awarded to the winning contender after two years.
The single largest shipbuilding scheme under the strategic partnership model is expected to see state-owned MDL as the frontrunner for the construction of the elite class of submarines as well as the current production line of Kalvari (Scorpene) boats. Gives her experience in construction.
As reported by ET, the Adani Group has ambitious plans in defense, with its acquisition a strong order book at the end of last year by Bengaluru-based Alpha Design Technologies Pvt Ltd and tie-ups with large Russian and Israeli companies is.
The acquisition has enabled Adani to join the specialized defense and space business. Its product list now ranges from drones to helicopters and simulators. It is one of the major suppliers of the indigenous Light Combat Aircraft (LCA) program.
The acquisition put Adani Defense and Aerospace in the big leagues, including the Tata Group, Mahindra & Mahindra, Reliance Defense, and L&T, which are dying for major make-in-India projects under a strategic partnership plan. Adani unveiled a manufacturing facility in Hyderabad last year to manufacture Hermes 900 drones in conjunction with Israel’s Elbit System.
Source: Economic Times