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Defence Ministry rejects L&T’s proposal in the ₹70,000 cr submarine deal

With L&T’s bid disqualified, Mazagon Dockyards Limited (MDL), in collaboration with ThyssenKrupp Marine Systems from Germany, is now the sole contender for the project.

DW Bureau

New Delhi: The Defence Ministry of India has rejected the proposal from Larsen & Toubro (L&T) in the ₹70,000 crore submarine deal, deeming it non-compliant with the requirements set by the Indian Navy.

This decision was made public on January 23, 2025, and follows L&T's partnership with Spanish firm Navantia in their bid to supply six advanced submarines under Project 75 India, which aims to enhance the Navy’s underwater capabilities.

The proposal was found non-compliant primarily because L&T’s showcased Air Independent Propulsion (AIP) system was not sea-proven, which was a critical requirement outlined in the tender documents. The Indian Navy had specifically requested a system that had been tested in actual sea conditions, rather than just demonstrated onshore in Spain.

With L&T’s bid disqualified, Mazagon Dockyards Limited (MDL), in collaboration with ThyssenKrupp Marine Systems from Germany, is now the sole contender for the project. MDL has already been involved in previous submarine projects and is expected to advance to the next stage of procurement following technical clearance.

Mazagon Dock Shipbuilders Limited (MDL) delivered INS Vaghsheer, the sixth and final Scorpene-class submarine under Project 75, to the Indian Navy on January 9, 202513. The submarine was launched on April 20, 2022, and has undergone rigorous testing to ensure it is fully combat-ready.

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