Home / News / India /  Before PM Modi meets Macron, France backs out of key submarine project

Ahead of Prime Minister Narendra Modi's visit to Paris where he is scheduled to meet Emmanuel Macron, French company Naval Group has announced that it is unable to participate in the P-75 India (P-75I) project under which six conventional submarines are to be built in India for the Indian Navy.

The Naval Group said it is unable to participate in the P-75I project due to conditions mentioned in the request for proposal (RFP) related to air independent propulsion (AIP) system.

AIP system allows a conventional submarine to stay submerged in water at higher speeds for a longer period of time.

In June 2021, the Defence Ministry had cleared the P-75I project and subsequently, RFPs were issued to two shortlisted Indian firms – private company Larsen and Toubro and state-run Mazagaon Docks Limited.

The two Indian companies (called strategic partners) have to tie up with one of the five shortlisted foreign companies – ThyssenKrupp Marine Systems (Germany), Navantia (Spain) and Naval Group (France), Daewoo (South Korea) and Rosoboronexport (Russia) – and then respond to the RFP, according to the Defence Ministry.

The 43,000 crore-contract will be awarded by the Defence Ministry after a detailed evaluation of the responses sent by the two strategic partners.

In a statement today, Laurent Videau, Country and Managing Director, Naval Group India, said, "Due to certain conditions in the RFP, the two strategic partners could not forward the request to us and few other FOEMs (foreign original equipment manufacturers) and thus we have not been able to place an official bid for the project."

Naval Group has always been ready to offer the best in class and adapted solution for Indian Navy's P75I project, being fully in line with AatmaNirbhar Bharat principle, he said. 

"However, the present RFP requires that the fuel cell AIP (air independent propulsion) be sea proven, which is not the case for us yet since the French Navy does not use such propulsion system," he mentioned.

Nevertheless, Naval Group strengthens its existing commitments and look forward for closer association with India, he said. 

"Our focus and efforts are towards continuation of our collaboration with Indian industry in realising the vision of Government of India by supporting Indian Navy for other future developments and projects (maintenance, high tech tools, indigenous AIP, incremental improvements in Scorpene designed submarine, heavy weight torpedoes, larger ships etc)," he mentioned.

India is one of the largest importers of arms globally.

The government wants to reduce dependence on imported military platforms and has been boosting the domestic defence manufacturing.

Catch all the Business News, Market News, Breaking News Events and Latest News 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