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  1. Mazagon Dock bags ₹1,990-crore AIP deal from defence ministry for submarine modernisation

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Mazagon Dock bags ₹1,990-crore AIP deal from defence ministry for submarine modernisation

Upstox

2 min read | Updated on December 30, 2024, 17:58 IST

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SUMMARY

Mazagon Dock Shipbuilders Limited (MDL) secured a ₹1,990-crore deal to construct and integrate DRDO’s Air Independent Propulsion (AIP) Plug.

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Shares of Mazagon Dock Shipbuilders have surged nearly 130% in the last one year.

Shares of Mazagon Dock Shipbuilders have surged nearly 130% in the last one year.

The ministry of defence on Monday signed two contracts totaling ₹2,867 crore to enhance the operational capabilities of Indian submarines.

The agreements include the construction and integration of an Air Independent Propulsion (AIP) Plug for the DRDO-AIP system and the integration of Electronic Heavy Weight Torpedoes (EHWT) onboard Kalvari-Class submarines.

Mazagon Dock Shipbuilders Limited (MDL) secured the ₹1,990-crore contract for constructing the AIP Plug and its integration. Meanwhile, the ₹877-crore contract for integrating the EHWT, developed by the Defence Research and Development Organisation (DRDO), was awarded to France’s Naval Group.

The DRDO-developed AIP technology, critical for enhancing the endurance of conventional submarines, is a major step towards self-reliance under the ‘Aatmanirbhar Bharat’ initiative, the defence ministry said in a statement, adding that the project is expected to generate around three lakh man-days of employment.

"The integration of EHWT will be a collaborative effort by Indian Navy, DRDO and Naval Group, France. It would greatly augment the firepower capabilities of Kalvari Class submarines of the Indian Navy," it said.

The latest agreements follow a series of recent high-value defence deals. Earlier this month, the ministry signed a ₹7,628.70-crore contract with Larsen & Toubro (L&T) Limited for 155mm/52 calibre K9 Vajra-T self-propelled tracked artillery guns.

The K9 Vajra-T, originally designed for desert warfare, has been adapted for high-altitude operations in challenging terrains like Ladakh. The new batch of artillery guns will enhance the Army’s operational readiness, building on the success of 100 units inducted under a 2017 contract.

The defence ministry also recently signed a ₹13,500-crore deal with Hindustan Aeronautics Limited (HAL) for 12 Su-30MKI fighter aircraft. The jets, with 62.6% indigenous content, will be manufactured at HAL’s Nasik division, further boosting the domestic defence industry.

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