L&T opposes plan to give submarine project to Mazagon Dock

New Delhi: With the government considering a proposal to move a Rs 60,000-crore project to build submarines to the public sector on a nomination basis, India’s top shipbuilder Larsen and Toubro has sought the Niti Aayog’s intervention, asking that it be reserved for the private industry as per the original plans.

The mega ‘Make in India’ project — named P75I — is for the construction of six conventional submarines with advanced abilities to stay underwater for extended periods with Air Independent Propulsion (AIP). The project was picked up as the biggest under an ambitious strategic partnership policy in 2016 to promote private sector involvement in defence.

However, there have been recent moves by the Navy to nominate the government-owned Mazagon Dock Shipbuilders (MDSL) for the project, based on the argument that it’s the only shipyard in the country that has experience in constructing a conventional submarine. The matter is expected to be taken up at a defence acquisition meeting shortly.

An alarmed L&T has shot off a representation to the Niti Aayog for intervention.

The letter, which ET has seen, asks that the project be kept reserved for the private sector as the industry is “best prepared for this segment” under the strategic partnership model. Pointing to its successes on the nuclear submarine programme, the company made the point that it has considerable expertise to take on the project.

L&T is India’s most experienced submarine builder in the private sector that has worked extensively on the nuclear submarine project as well. The project would not only create thousands of highly skilled jobs but also augment falling force levels of the submarine arm of the Navy, L&T said.

Courtesy: ET