Make in India gets defence sector spurt as BHEL takes up submarine project

Consortium to jointly bid for a defence ministry tender to build 6 submarines

A day after the government spent time with industry to promote its Make in India initiative, state-owned Bharat Heavy Electricals Ltd (BHEL) announced a foray into submarine manufacturing.

Better known for its power business, BHEL has tied up with Mishra Dhatu Nigam and Hindustan Shipyard (HSL), both government-owned, to form a consortium for building submarines.

The consortium will bid for a ministry of defence (MoD) tender on the proposed P-75 (I) project of the Indian Navy, for building six submarines at an Indian shipyard. It is supposed to be a step prior to attainment of indigenisation of diesel submarine design and production.

Indian shipyards have been largely dependent on naval orders. Mazagon Dock Ltd (MDL), the primary one, has been making warships and submarines for close to half a century. Cochin Shipyard is currently building India's first indigenous aircraft carrier.

India’s submarine building has largely been a learning from Russian and Western technologies. In the most recent case, France's Scorpene submarine was chosen for firming up naval defences. MDL has sought to manufacture six SSK Scorpene subs under transfer of technology from France-based DCNS.

BHEL has no experience of submarine construction, though it has supplied strategic equipment and services to the defence and paramilitary forces for 20 years.

HSL is engaged in ship building, repairs and submarine retrofit. Mishra Dhatu is engaged in development and manufacture of a wide range of superalloys and special-purpose steel, for applications in defence, aerospace and atomic energy.

The consortium is expecting to clinch work for at “least two submarines” from the total six amounting to Rs 50,000 crore.

Speaking to Business Standard on phone, Hyderabad-based Midhani Chairman and Managing Director Narayana Rao said the partners were expecting to start works in 12-18 months from the date they receive the final clearance from MoD.

On expertise being brought to the table by the partners, he said the while fabrication works would be taken up by the BHEL Trichy facility and its subsidiary, BHPV, at Visakhapatnam, Midhani will supply the forged metal plates, rings made from special grade steels and alloys, and the final integration will take place at the HSL yard in Visakhapatnam.

Midhani had prior expertise of "supplying strategic materials to the country's first indigenous nuclear submarine".    

According to him, the project would brighten the prospects of sick PSU's Bharat Heavy Plates and Vessels (BHPV) and HSL, both having facilities in the port city of Visakhapatnam.

“The project will allow HSL, which till now was involved in retrofitting submarines and repairing of naval vessels under a direct arrangement with the Indian Navy, to diversify its engagement and gain new capabilities in the integration of submarines,” said Rao.

On partnering HSL, he said the shipyard had received good financial support from the MoD in the recent years to upgrade its facilities       to take up the submarine works. "

Rao also said they expect many SME ancillary industries to come up at Visakhapatnam, to take up works for the submarine project.