DAC also approved five foreign companies as the potential Original Equipment Manufacturers (OEMs) that could collaborate with SPs for the project.
New Delhi: Adani Defence and its partner, state-owned Hindustan Shipyard Ltd (HSL) are out of the race to bid for Indian Navy’s mega Rs 50,000 crore Project 75-India (P-75I) for constructing six conventional submarines.
Defence Acquisition Council (DAC) headed by defence minister Rajnath Singh on Tuesday approved only two Indian companies — the state owned Mazagon Dock Shipbuilders Limited (MDL) and private sector giant Larsen and Toubro —- as Indian Strategic Partners (SPs) to bid for the submarine project.
DAC also approved five foreign companies as the potential Original Equipment Manufacturers (OEMs) that could collaborate with SPs for the project. These foreign companies are Russian Rosoboronexport, French Naval Group, South Korean Daewo, German Thysenkrupp Marine Systems and Spanish Navantia.
“The Navy’s empowered committee had not approved the joint proposal of Adani Defence and state-owned Hindustan Shipyard Ltd (HSL) on technical grounds. DAC has accepted the empowered committee decision which had shortlised only two Indian companies Mazagon Dock Shipbuilders Limited (MDL) and L&T,” said sources.
Sources said that now a request for proposal (RFP) will be issued and the bids submitted will be evaluated. “The lowest bidder (L1) will get clearance for the project,” said sources.
Last week, the Congress had alleged that the Modi government was planning to overrule Navy decision to favour the Adani Group for the construction of the submarines, violating the defence procurement policy (DPP).
This was first DAC meeting which was attended by Chief of the Defence Staff, Gen Bipin Rawat after taking the charge.
“DAC approved short listing of Indian Strategic Partners (SP) and the potential Original Equipment Manufact-urers (OEMs) that would collaborate with SPs to construct six conventional submarines in India,” said an official statement issued by the defence ministry. It said that this programme is being progressed under the ‘Strategic Partnership Model’, promulgated in 2017 to give a major boost to ‘Make in India’ in Defence Sector.