DAC clears deal for 6 submarines

June 5, 2021

Defence Acquisition Council (DAC) has cleared a mega project to build six conventional submarines for Indian Navy. Decision was taken at DAC meeting chaired by Defence Minister, Rajnath Singh.

Highlights

This project will cost around Rs 43,000 crore.
It was cleared under strategic partnership mode.
Project seeks to narrow the gap with growing naval skills of China.
Request for Proposal (RFP) for make-in-India project called ‘P-75 India’ will be issued soon.
Groundwork including specifications of submarines & other critical requirements for issuance of RFP for mega project was completed by separate teams of Defence Ministry and Indian Navy.
First submarine under this project will take more than 7 years to enter service.

Significance of the project

This project is one of the largest ‘Make in India’ projects. It will facilitate faster and more significant absorption of technology and help in creating a tiered industrial ecosystem for submarine construction. Apart from that, current dependence on imports will be reduced as this project will ensure greater self-reliance and dependability of supplies from indigenous sources.

Defence Acquisition Council (DAC)

DAC is highest decision-making body in Defence Ministry that decides on new policies and capital acquisitions for Army, Navy and Air Force as well as Indian Coast Guard. Defence Minister is the Chairman of Council. DAC was formed in 2001 following the recommendations of Group of Ministers on “Reforming National Security System” after Kargil War of 1999. It is the highest decision-making body on procurement in defence ministry.

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