nThe Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Tuesday, approved private sector Larsen and Toubro and public sector Mazagon Docks Limited(MDL) for the Navy's project to manufacture six conventional submarines worth over Rs 45,000 crores within the country.
Approved last year, the project known as P-75 I will be under the Strategic Partnership model with the Indian partners tying up with a foreign manufacturer. The DAC also approved the Original Equipment Manufacturer (OEM)s who are in the race for the project. They include Rosoboron Export(Russia), Daewoo(South Korea), Navantia(Spain), Thysenkrup Marine Systems(Germany) and French Naval Group, sources said. The Larsen and Toubro and MDL will forge the strategic partnership with one of the selected OEMs after due tender process, they added.
The first DAC meeting of this year and after the creation of the post of Chief of Defence Staff (CDS)also cleared proposals worth over Rs 5,100 crores from local industry to promote indigenisation. General Bipin Rawat, the first CDS, attended the meeting along with other top functionaries of the defence ministry.
As regards the submarine project, sources said the DAC approved short-listing of the Larsen and Toubro and MDL as the Indian strategic partners(SP) and the potential Original Equipment Manufacturers (OEMs) that would collaborate with SPs to construct six conventional submarines in India. The MDL is already constructing Scorpene submarines in collaboration with the French.
The DAC nod to the short listing came days after the Congress last week claimed the NDA Government of "favouring" the Adani group in the submarine project alleging it was promoting its "crony capitalists".
Addressing a Press conference, Congress communication chief Randeep Surjewala and party spokesperson Jaiveer Shergill had charged the Government of violating the Defence Procurement Procedure (DPP) of 2016 as well as over-ruling the recommendations of the 'Empowered Committee' of the Indian Navy that had been set up for the project.
The Congress claimed that two key parameters set by the DPP were that the shortlisted company to manufacture the six submarines in the deal should be of Credit 'A' rating and the Ministry of Defence should approve the 'Special Purpose Vehicle' (SPV) set up for the project before applying for "request for expression of interest".
The Empowered Committee of the Navy, claimed the Congress, shortlisted the public sector unit, Mazagon Docks Shipbuilders Limited, and Larsen and Toubro from the private sector.
The main Opposition party alleged that the Government is all set to violate the Committee's recommendations by allowing the private entity which neither has any experience in submarine manufacturing nor the required credit rating.
Surjewala also said five companies — Larsen & Toubro Limited, Mazagon Dock Shipbuilders Limited, Reliance Naval and Engineering Limited, Hindustan Shipyard Limited, Adani Defence, and Hindustan Shipyard Limited Joint Venture — had applied for the project.
The Strategic Partnership Model was promulgated in 2017 to give a major boost to 'Make in India' in Defence Sector. The Strategic partner is expected to play a transformational role in building an eco-system in the country, comprising development entities, specialised vendors and suppliers; especially those from the medium and small scale sector.
The new model also aims at promoting India as a manufacturing hub for defence equipment, in addition to establishing an industrial and research and development eco-system capable of meeting the future requirements of the armed forces besides giving boost to exports.
Meanwhile, the Rs 5,100 crore proposals approved include sophisticated Electronic Warfare Systems for the Army designed by Defence Research and Development Organisation (DRDO) and manufactured locally by the Indian industry. These systems will be used in deserts and plains and will provide comprehensive Electronic Support and Counter Measure capabilities to the field formations in both communication and other aspects of Electronic Warfare.
The DAC also approved prototype testing of trawl assemblies designed by the DRDO for T-72 and T-90 tanks providing an important indigenous de-mining capability to the Army.
The DAC also accorded approval for inclusion of Innovations for Defence Excellence (iDEX) in Defence Procurement Procedure.