French Naval Group start collaborating either Indian MDL or L&T or both for Submarine Project: P75-I

French Naval group is in talks with both MDL (Mazagon Dock Shipbuilders Limited) and L&T for submarine project, says exclusivity needed.

P75-I Project Submanrine (Pic Source: Internet)

Leading naval manufacturer Naval Group has confirmed that it is in touch with both the Indian shipyards shortlisted for the ambitious P 75-I submarine project .  A Rs 45,000 crore project recently moved onto the next step with the shortlisting of two Indian submarine manufacturing companies – MDL and L&T – and five foreign companies for collaboration to acquire design and manufacturing technology.

Naval Group, which has manufactured the Scorpene Class of Submarines in India with MDL, says that the `industrially secure way’ would be to have an exclusive arrangement with just one Indian Strategic Partner (SP).

French Naval Group presented P75-I Submarine (Projection)

“An exclusive arrangement with one SP  might give more time to both the Original equipment manufacturer and the SP to prepare a thorough and exhaustive response to the RFP (Request for Purposal) and thus provide Indian Navy by offer with best possible solutions. Indeed, exclusivity with a shipyard may be best cost effective and industrially secure way of responding to P75-I,” Alain Guillou, Senior Executive Vice President, Naval Group.

“Like many other OEM (Original Equipment Manufacturer), we are having discussions with both SPs (L&T and MDL), who have been shortlisted rightly by the experienced Indian Navy and the government. MDL remains at core of Indian naval ship and submarine building while L&T is undoubtedly one of the biggest and qualified Indian national industrial for several sectors including strategic naval projects,” he added.

P75-I Project Submarine (Pic Credit: Tarmak007)

Besides the Naval Group, TKMS (Germany), Navantia (Spain), Rubin Design Bureau (Russia) and DSME (South Korea) have been shortlisted for the mega project. The next stage will be preparation of techno-commercial bids by the Indian companies in collaboration with a foreign partner of their choosing.

When asked that, "If the foreign players will need to make offers with both Indian yards or can choose to have an exclusive arrangement with just one"?

“As OEM, we are not in position to comment and we shall follow the process as per SP guidelines. However it is true that the time required and the associated costs to make an offer of such magnitude are very high, sometimes as high as several millions of Euros. In addition to this the confidentiality of data related to the performances and subsequent tough arrangement to deal between partners will cost time, dedications and efforts,” Guillou said.

OEMs technicality to go for one or two partners.

While technically, all five foreign technology collaborators have an equal chance of forming a winning partnership with the Indian company, the contest is expected to be a straight face off between the French Naval Group and Russia’s Rubin Design Bureau. If the process goes smoothly, the final winner could be shortlisted within two years after an exhaustive trial and evaluation exercise.