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L&T set to partner Russia for Rs 5,000-crore defence deal

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SOURCE: ECONOMIC TIMES

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Consolidating its position as the leading Indian defence player in the complex field of underwater warfare, engineering giant Larsen and Toubro is set to get a major share in a Rs 5,000-crore deal to upgrade and refit Russian-origin Kilo class submarines. The company, which is already a leading partner for the nuclear submarine project of the Indian Navy, has been chosen as the Indian partner for the Kilo class refit — a program to increase the life of the submarine by 10 years involving complex engineering.

Sources have told ET that the Russian side has written to the Indian government, informing that an earlier partnership plan with the Anil Ambani promoted Pipavav now stands cancelled as the shipyard would not have been able to meet timelines set by the Navy for the upgrade plan.

L&T, which refused to comment on the development when contacted, is now expected to upgrade at least three submarines in India, in what could make the yard a leading contender for similar orders from neighbouring nations that operate Kilo class submarines as well. Sources said that the key factor in choosing L&T was an evaluation of at least three yards that was conducted by Russian shipbuilders.

“A survey of the equipment profile and finances was conducted at the Cochin Shipyard, Pipavav and the L&T yard at Kattupalli. Only the L&T facility was found technically capable of carrying out the work in the given timeframe,” an official involved in the process told ET.

While the first of the four Kilo class subs will go to the Russian Zvezdochka shipyard for inspection and refit, the remaining three are likely to be modernised at the Kattupalli yard. The first of the submarines to be modernised at private yard — a first for India — will go in by 2017, officials said. An order for 2-3 more submarines could also be commissioned, depending on ongoing acquisition plans of the Navy.

The Indian Navy is looking to squeeze some more life out of its two decade-old Kilo class submarines, with a contract being signed in October with Russia to extend the service life of the boats to 35 years. The extensive refit will not only extend the life of the subs but will also upgrade their combat potential. The first submarine to be sent is the INS Sindhukesari that will be fitted with Klub land attack cruise missile. The Sindhukesari, which got its first refit in 1999-2001, will also be fitted with several Indian systems.

L&T set to partner Russia for Rs 5,000-crore defence deal
 
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