Shares of Mazagon Dock Shipbuilders Ltd. fell 4% today after reports surfaced about delays in India’s $6 billion plan to build six conventional diesel-electric submarines. According to Bloomberg, contractor objections over procedural violations during sea trials have stalled the project, which is a critical step in bolstering India’s naval capabilities amid increasing Chinese presence in the Indian Ocean.
The delays, already a year long, are expected to stretch further. This setback impacts Prime Minister Narendra Modi’s defense acquisition policy, which emphasizes partnerships with foreign manufacturers and technology transfer to local firms for domestic defense production. Mazagon Dock, alongside private shipbuilder Larsen & Toubro in collaboration with Spain’s Navantia SA, and German firm ThyssenKrupp Marine Systems, is a key contender in the project.
Contractors have reportedly raised half a dozen objections regarding violations of proper procedures and unclear guidance during sea trials, as per Bloomberg. Each of these complaints requires investigation, delaying the process of selecting a winning bidder.
India’s Ministry of Defense has formed a committee to address these issues. Despite repeated requests, the Indian Navy, Mazagon Dock, and other parties have refrained from commenting on the matter.
