India approves indigenous construction of six submarines for Rs 40,000 crore

In a major decision, the Defence Acquisition Council  (DAC) on Thursday approved indigenous construction of six submarines for the Indian navy, accounting for a total cost of Rs 40,000 crore. 

The project comes under Defence Ministry's "strategic partnership" (SP) model that aims at providing significant filip to the government "Make in India" program. This is the second such project under the SP model.

SP model calls for indigenous manufacturing of major defence platforms by an Indian strategic partner who will collaborate with foriegn OEM to set up production faculty in the country. 

Accrding to Defence ministry's release "model has a long term vision of promoting India as a manufacturing hub for defence equipment through tranfer if niche techologies and higher indigenous content thereby enhancing self sufficiency for meeting the future requirements of the armed forces."

The first project under the SP model was indigenous production of 111 naval utility helicopters in August 2018. 

Construction of six submarines the defence ministry has said "is expected to provide a major boost to the existing submarine design and manufacturing eco system in India through tranfer of design and equipment technology as well as necessary skill set."