NB Explains | L&T and Spain's Navantia join hands to bid for Indian Navy's top submarine program

New Delhi, July 11: In a huge development, Indian conglomerate Larsen & Toubro (L&T) and Spain's Navantia have joined hands to submit a combined bid for India's highly coveted Project 75 (I) submarine program. It is expected to be valued at over € 4.8 billion and is India‘s largest defence acquisition project.

 

 

"Larsen & Toubro and Navantia, Spain signed a Teaming Agreement (TA) today for the purpose of submission of a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine program," a statement of L&T read.

 

The teaming agreement (TA) was officially signed on Monday at the Spanish Embassy in New Delhi and witnessed the attendance of S N Subrahmanyan, L&T CEO & MD, and Augustin Alvarez Blanco, Naval Construction Vice President and Member of the Board at Navantia.

 

 

Spain's ambassador to India José María Ridao Domínguez, and Spanish Defense Attaché, Captain (Navy) Fernando Alvarez also graced the occasion, emphasising the strong diplomatic ties between Spain and India.

 

S N Subrahmanyan, CEO & MD, L&T said, "L&T is proud to collaborate with Navantia for this prestigious program of strategic importance for the nation’s security. Navantia’s glorious 300-year-old track record in naval construction & technical expertise gives us a competitive advantage in this program and offer the Bio-Ethanol Stealth Technology (BEST) and environmentally Green AIP solution. We are committed to providing the most contemporary solution for Indian Navy’s requirements at a competitive price."

 

Blanco commented, "It gives us great joy to be in a position to be the design and technology partner for P75(I). We are also in collaboration with L&T for the Landing Platform Dock (LPD) program whose tender is eagerly awaited. With these two prestigious programs for the Indian Navy, Navantia is proud to be making a key contribution towards fulfilling the defence needs of India, a nation with which Spain shares excellent relationship."

 

 

The Indian Navy's Project 75 (I) is an endeavour that requires the indigenous production of six conventional submarines equipped with Air-Independent Propulsion (AIP). The project, expected to exceed $5.2 billion in value, represents India's largest defence acquisition programme to date.

 

It will be executed under the strategic partnership (SP) model of the Ministry of Defence, emphasising collaboration between Indian and foreign entities.

 

Speaking at the signing ceremony, CEO & MD of L&T, Subrahmanyan said, "L&T is proud to collaborate with Navantia for this prestigious program of strategic importance for the nation’s security. We are committed to providing the most contemporary solution for Indian Navy’s requirements at a competitive price."

 

 

 

Under the terms of the agreement, Navantia, drawing from its experience in submarine design, including the S80 class and Scorpène class submarines, will spearhead the design phase for the P75(I) submarines.

 

Navantia's S80 class submarines, the first of which is set for delivery to the Spanish Navy at the end of 2023, have already undergone successful sea trials.

 

The Spanish shipbuilder has previously partnered with DCNS (now Naval Group) of France in the design and construction of Scorpène class submarines, which have been exported to Chile and Malaysia.

 

Earlier this year, Defence PSU Mazagon Dock and Germany's Thyssenkrupp Marine Systems signed a MoU to bid for the project. The MoU was signed last month during the visit of the German Defence Minister, Boris Pistorius, to India.