Adani Group bids for ₹45,000-crore Navy submarine project

The Adani Group in has placed bids for ₹45,000-crore Indian Navy submarine project under ‘Make In India’ initiative. The Gujarat-based Indian multinational conglomerate deals in logistics, the energy it also handles mining, trading, gas distribution, solar and agribusiness in India.

The other contenders for bid were Larsen and Toubro (L&T), Mazagon Dock Shipbuilders Ltd (MDL) and Reliance Naval and Engineering Ltd, all of which own shipyards. Adani does not own an active shipyard.

According to reports in The Economic Times, Adani group might collaborate with Hindustan Shipyard (HSL) forming a special purpose vehicle (SPV) as the latter has experience in submarine repairs and overhauls.

But, interestingly HSL has also bid for the project.

Adani group which might be gearing up for big defence manufacturing in India has recently bought Bengaluru-based Alpha Design Technologies Pvt Ltd, a defence company specialising in R&D, manufacture, assembly, testing, qualification, integration and installation of defence electronics, avionics and space satellites systems. Alpha also has a strong order book and tie-ups with big Russian and Israeli companies.

Under the project, six conventional submarines will be manufactured in collaboration with a foreign partner. The tender issued by the Indian Navy was announced on June 21, 2019. Under the project, the Navy is looking for shortlisting potential strategic partners for the construction of six P-75 (I) submarines.

“As a major initiative towards ‘Make in India’, the government immediately on taking over has issued the Expression of Interest(s) for shortlisting of potential Indian Strategic Partners (SPs) for construction of six conventional submarines for P-75(I) Project of the Indian Navy on June 20,” the Navy said in a press statement released on June 21.

The acquisition of defence firm Alpha has catapulted Adani in league of major league the like of Tata group, Mahindra & Mahindra, Reliance Defence and L&T, which are vying for large Make-in-India projects.