Monday July 23, 02:20 AM
L and T eyeing submarine project |
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Larsen and amp; Toubro, the diversified engineering conglomerate, is planning to build submarines as part of its defence projects venture. The company is also planning to demerge the defence division into a separate firm.
Sources close to the development said L and amp;T was in talks with a couple of foreign firms to develop the required expertise to participate in the Navy's prestigious Project 75 and 76 to make underwater vessels. The project is the Navy's 30-year submarine building programme. It aims to build 24 such vessels. The project cost is estimated at around $14-16 billion. "The company has received approval for the second line of submarines. L and amp;T is planning to either co-ordinate with state-owned firms or with a foreign partner to enter the project," sources said.
A Delhi-based defence analyst said the Navy had signed a deal with French company DCNS for building six submarines and was planning to build the remaining 18 vessels indigenously. L and amp;T is planning to enter this phase with a domestic or foreign partner. In 2005 October, India signed a $3.5 billion deal with DCNS to acquire six Scorpene submarines. The project included licensed production of submarines in India under a technology transfer agreement with the state-owned Mazagon Docks.
L and amp;T Chairman and Managing Director AM Naik said the company had tried to partner with Mazagon Docks for the Scorpene project. "However, at that time the collaboration did not materialise. We are interested in the submarine project. We have the required expertise and after getting Raksha Udyog Ratna status, we will be in a better position to bid for future projects," he added.
L and amp;T is building the Pinaka rocket launchers for two regiments of the Army and is bidding for modernisation of the Bofors howitzer. It is in talks with global players, including EADS, the parent firm of European airplane maker Airbus, for a joint venture. L and amp;T's revenue from the defence sector was Rs 3,000 crore in 2006-07.
L and amp;T has already received a Rs 440 crore order to make four ships for the Rotterdam-based Zadeko. It is planning to invest Rs 2,000 crore in a new greenfield shipyard that will make all types of vessels, including natural gas carriers.
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