Mazagon Dock shares rally up to 3.65% on buzz around ₹70,000 crore submarine deal; all you need to know

According to a report by The Print, which quoted news agency ANI, the Defence Ministry had selected state-owned MDL for building six submarines with air-independent propulsion systems with German ThyssenKrupp Marine Systems as its partner in January.

Speaking to ANI, Defence officials said, “The Centre has now given clearance to the Defence Ministry and the MDL to begin negotiations for the project, and the process is expected to start by the end of this month.”

The Centre took the decision after a very high-level meeting, including top defence and national security functionaries, who discussed the roadmap and future of the country’s submarine fleet, they said.

The report added that the Defence Ministry and the Indian Navy are expecting to conclude contract negotiations in the next six months and get final approval for it. Through the contract, the Defence Ministry aims to develop indigenous capability for designing and manufacturing conventional submarines within the country.

Second big-ticket order for a defence PSU

The big order for Mazagon Dock comes a few days after Hindustan Aeronautics (HAL) confirmed that the government cleared the proposal to purchase 97 Light Combat Aircraft Mk-1A, along with associated equipment from HAL for the Indian Air Force.

The proposal was cleared by the Ministry of Defence, Cabinet Committee of Security (CCS) on Tuesday, August 19, HAL said in a regulatory filing.

While the Bengaluru-headquartered company did not reveal the financial specifications of the deal, media reports estimate it to be worth ₹62,000 crore.

The Tejas Mk1A will have advanced electronic radar, warfare and communication systems, additional combat capability and improved maintenance features. Christened Tejas in 2003, the aircraft is a multi-role platform that ranks amongst the best in its class, per reports.

About Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders Limited (MDL) is a leading shipbuilding yard under the Ministry of Defence, specialising in building warships, submarines, and commercial vessels. Established in 1774, MDL is known for its quality work and has built over 800 vessels, including advanced destroyers, frigates, and submarines for the Indian Navy and Coast Guard.