DAC, Headed by Shri Rajnath Singh Approves RFP for Construction of Six Submarines at Approx Cost of INR 43,000 Crore

The Defence Acquisition Council (DAC), in its meeting held under the Chairmanship of Raksha Mantri Shri Rajnath Singh on June 04, 2021, has approved proposals concerning Capital Acquisitions of various equipment for modernisation and operational needs of the Armed Forces amounting to approx. Rs 6,000 crore. 

In addition, the DAC also approved issue of RFP for construction of six Conventional Submarines under Project P 75 (I) under the Strategic Partnership (SP) Model. This project envisages indigenous construction of six conventional submarines equipped with the state-of-the-art Air Independent Propulsion system at an estimated cost of Rs 43,000 crore. 

This is a landmark approval, being the first case processed under the Strategic Partnership model. This would be one of the largest ‘Make in India’ projects and will serve to facilitate faster and more significant absorption of technology and create a tiered industrial ecosystem for submarine construction in India. From a strategic perspective, this will help reduce current dependence on imports and gradually ensure greater self-reliance and dependability of supplies from indigenous sources. 

With accord of this approval, the country will be enabled to achieve its 30-year Submarine construction programme envisioned by the Government to acquire national competence in submarine construction and for the Indian industry to independently design and construct submarines in India. The availability of new technologies and advanced manufacturing capabilities to the Industry will be an important step towards enhancing the nation’s quest for self-reliance in modern conventional submarine construction and sustainment activities whilst creating direct and indirect job opportunities in India. 

This project under SP Model provides a unique long-term opportunity and planning certainty for the industry to invest and support submarine construction. It will also infuse the latest technology and weaponry for submarines in India through strategic tie up between Indian Industry and leading foreign OEMs. 

There was a long pending need of the Indian Army for modernisation of its Air Defence guns. These had been earlier procured only from foreign sources. With the continued thrust of Ministry of Defence towards ‘ÁtmaNirbhar Bharat’ and ‘Make in India’, an enthusiastic response from about a dozen Indian companies was received. All of them have expressed their willingness and commitment to manufacture this complex gun system and associated equipment by ensuring technology assimilation in India. Accordingly, the DAC accorded approval of procurement of Air Defence Guns and Ammunition at an approx. cost of Rs 6,000 crore under the Buy & Make (Indian) category. 

Further to better equip the Armed Forces to meet the operational challenges and facilitate faster induction of required arms and ammunition, the DAC extended the timelines for progressing urgent Capital Acquisitions under the delegated powers to the Armed Forces up to August 31, 2021.  This will enable the Armed Forces to complete their emergent and critical acquisitions.