Home / Industry / Manufacturing /  Defence acquisition council nods 40,000 crore project to build 6 submarines
Back

NEW DELHI : The defence acquisition council (DAC) chaired by defence minister Nirmala Sitharaman on Thursday approved the construction indigenously of six submarines at a total cost of 40,000 crores.

The move gives a push to the ‘Make in India’ programme as the submarines are to be made by an Indian company collaborating with a foreign partner under the strategic partnership model of collaboration, a defence ministry statement said.

Construction of the six submarines in India will give a major boost to the existing submarine design and manufacturing ecosystem in India though the transfer of design and equipment technology.

The DAC also approved the acquisition of 5,000 anti-tank guided missiles for the Indian Army, the statement said.

Besides this, the defence ministry also approved significant changes to the defence procurement policy or DPP 2016 in the third phase of reforms focussed on “making the procedures industry friendly and simplifying unwieldy aspects to ease conduct of business and facilitate smoother and faster procurement of urgent requirements of the Armed Forces," the statement said.

Simplification of the best price determination process incorporating latest government policies on GST and custom duties have been taken into consideration, the statement said.

Submission of bank guarantees from Indian private sector banks as authorized by the RBI besides public sector banks has been approved under the new rules to “ease financial transactions enabling competitive pricing", the statement said. This would in turn help cut overhead costs of sellers incurred when obtaining guarantees from banks, the statement said.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout