Mazagon Dock Shipbuilders Limited (MDL), a leading Indian defence manufacturer, issued a clarification on the reports surrounding its involvement in the ₹70,000 crore P75(I) submarine project. The clarification came after media reports indicated that Mazagon Dock might emerge as the sole qualifying contender following the disqualification of Larsen & Toubro (L&T)’s bid.
Key Points from the Clarification:
- Bid Status: MDL stated that its bid for the P75(I) project has been officially opened by the Ministry of Defence (MoD). The company clarified that the bid is currently under review and processing by the MoD.
- No Final Outcome Yet: MDL emphasized that no final decision has been communicated by the government regarding the awarding of the project. The company reiterated its commitment to maintaining transparency throughout the process.
- Current Engagements:
- MDL is engaged in negotiations for an additional three Scorpene-class submarines under Project 75.
- The company continues to lead in India’s defence manufacturing sector, leveraging its expertise in submarine and shipbuilding projects.
Background on P75(I) Submarine Project:
The ₹70,000 crore P75(I) project aims to strengthen India’s naval capabilities by acquiring six advanced submarines with Air Independent Propulsion (AIP) systems, allowing prolonged underwater operations. The bids were submitted by two major players:
- L&T, in collaboration with Spain’s Navantia.
- Mazagon Dock, partnered with Germany’s Thyssenkrupp Marine Systems.
As per reports, L&T’s proposal was found non-compliant due to not meeting the technical requirements set by the Indian Navy, leaving Mazagon Dock as the sole qualifying bidder.
Stock Market Impact:
- Shares of Mazagon Dock surged over 5% on the back of the news, trading at ₹2,411.
- L&T’s stock experienced an initial dip of 1%, but later recovered to trade at ₹3,500.
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