The P-75I project is India’s ambitious effort to modernize its naval capabilities by equipping the Navy with advanced diesel-electric submarines equipped with Air Independent Propulsion (AIP) systems. This cutting-edge technology enables submarines to stay submerged for longer durations, enhancing their stealth and combat effectiveness.
L&T’s disqualification stems from procedural issues in its bid, with sources stating that its proposal failed to meet the compliance requirements outlined in the tender. However, the exact reasons for the non-compliance have not been disclosed. The decision narrows the competition to MDL, which will now collaborate with one of the shortlisted Original Equipment Manufacturers (OEMs) — Naval Group (France), Thyssenkrupp Marine Systems (Germany), Daewoo Shipbuilding (South Korea), or Rosoboronexport (Russia).
Industry experts have raised concerns over the limited competition in such a significant deal, emphasizing the need for transparency and fairness in the selection process. Defence analysts warn that L&T’s exclusion could impact India’s push for indigenization in the defence sector, as the company has been a key player in building naval platforms domestically.
The Ministry’s decision comes amidst ongoing debates over the Strategic Partnership model, introduced to promote collaboration between Indian companies and foreign manufacturers for major defence projects. While the model aims to boost self-reliance and transfer of critical technology, its execution has faced criticism for delays and procedural hurdles.
The P-75I project is crucial for addressing the Indian Navy’s submarine shortage. With a current fleet of only 16 submarines — including aging models — and growing challenges in the Indo-Pacific region, the timely execution of this deal is essential for bolstering maritime security.
The Defence Ministry is expected to formally announce the next steps in the bidding process soon. Meanwhile, L&T’s disqualification is likely to spark discussions on the need to refine procurement policies to ensure robust competition and the success of India’s indigenization drive in the defence sector.