Shares of Mazagon Dock Shipbuilders Limited (MDL) surged 2% after the company officially commenced production of the first Air Independent Propulsion (AIP) system for the Indian Navy’s Scorpene-class submarines. The Plate Cutting ceremony, marking the beginning of the construction phase, took place on March 18, 2025, at MDL in the presence of Director (Shipbuilding) with Additional Charge of Chairman and Managing Director Biju George, along with senior representatives from the Indian Navy and MDL officials.
This project is a crucial step in enhancing the operational capabilities of the Indian Navy’s conventional submarines. The construction of the AIP Plug has now begun, and it will be integrated into the Scorpene-class submarines under the P75 Project during their scheduled refits. The AIP system, based on indigenous technology developed by the Defence Research and Development Organisation (DRDO), is expected to significantly improve the endurance and stealth of these submarines, reinforcing India’s maritime defense strength.
In December 2024, the Ministry of Defence (MoD) had awarded MDL a contract worth Rs 1,990 crore for the construction and integration of the AIP Plug into the existing submarine fleet. This milestone aligns with India’s efforts to strengthen its self-reliance in defense manufacturing under the Aatmanirbhar Bharat initiative.
The commencement of production highlights MDL’s commitment to advancing indigenous shipbuilding and submarine construction, ensuring that India continues to develop cutting-edge defense technology while reducing reliance on foreign imports.
