Larsen & Toubro (L&T) on Monday announced that it has signed a teaming agreement with Spanish-based Navantia for submission of a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine programme. P75 (India) Submarine Project is expected to be valued at €4.8 billion (over Rs 43,500 crore) and is India‘s largest defence acquisition project.

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L&T and Navantia signed an memorandum of understanding (MOU) for the programme on April 11, 2023, at Madrid, which has now culminated in this teaming agreement.

As per the agreement, Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines. The first S80 class submarine was launched in 2021 and is undergoing sea trials prior to its delivery to Spanish Navy at the end of 2023.

Apart from S80 class, Navantia has been involved in design and construction of Scorpéne class of submarines together with DCNS (Now Naval Group) of France, which have been exported to Chile and Malaysia. Navantia has also been involved in the Scorpene submarines (Kalvari class) built in India including handholding of the Indian yard.

Project 75 (India)

Project 75 (I) requires the Indian bidder to tie up with a Foreign Collaborator (FC) and execute the programme for delivery of six conventional submarines equipped with Air-Independent Propulsion (AIP), while achieving targetted Indigenous Content.

This would also be followed by a 30-year lifecycle sustenance contract of similar value. P75(I) would be the first programme to be processed under the ambitious Strategic Partnership (SP) model of acquisition of the Ministry of Defence.

P75(India) programme calls for integration of an AIP system.

“Navantia’s 3rd Generation AIP solution is the most advanced and efficient AIP system in the world, apart from also being the most compact, easiest to exploit and maintain and environment friendly. It uses bioethanol as a source of hydrogen which is known to be cost efficient, easily available, and does not call for any special infrastructure,” said Larsen & Toubro in its official statement.

It added, “High density of hydrogen in ethanol improves the AIP system’s efficiency. Ethanol, being in liquid form, eliminates the risks associated with storing hydrogen.”

Larsen & Toubro along with Navantia are also seeking cooperation in other military programmes as well as in green energy opportunities, including offshore wind through Navantia Seanergies division.

Shares of Larsen & Toubro were trading 0.52 percent lower at Rs 2,436.60 per share at 2:13 pm on NSE on July 10, 2023.

First Published:Jul 10, 2023 2:44 PM IST