Ministry of Defence clears Rs 43,000-crore budget for 'Make in India' submarines

New Delhi : The Defence Acquisition Council (DAC) on Friday cleared a budget of Rs 43,000 crores to build six submarines under 'Make in India' project. The council is headed by Defence Minister Rajnath Singh.

The DAC has approved a request for proposal (RFP) for the project under 'strategic partnership mode' - the first such military hardware acquisition project under this model, according to the government.

"...The DAC approved issue of RFP for construction of six conventional submarines under Project P 75 (I) under the strategic partnership model... This is a landmark approval, being the first case processed under the strategic partnership model," the government said in the statement.

The project is of long duration and the first submarine under the project is likely to be functional for the service only after seven years.

"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," it said.

Other approvals related to upgradation of guns have also been given by DAC. "These had been earlier procured only from foreign sources. With the continued thrust of the Ministry of Defence towards Atma Nirbhar Bharat and 'Make in India', an enthusiastic response from about a dozen Indian companies was received," the government said.

"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 approved procurement of air defence guns and ammunition at an approximate cost of Rs 6,000 crore under the buy and make (Indian) category," it said.

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