L&T teams up with Spain's Navantia for Indian Navy's submarine contract

The agreement was signed in the presence of S N Subrahmanyan, L&T CEO & MD and Augustin Alvarez Blanco, Naval Construction Vice President, and Member of the Board – Navantia

Larsen & Toubro entered into a Teaming Agreement (TA) with Navantia, Spain, on July 10 for submitting a techno-commercial bid for the Indian Navy’s P75 (India) submarine programme, the company said in an exchange filing.

The agreement was signed in presence of L&T Chief Executive Officer and Managing Director SN Subrahmanyan, and Naval Construction Vice-President and Member of the Navantia Board Augustin Alvarez Blanco. Spanish envoy to India José María Ridao Domínguez and Captain (Navy) Fernando Alvarez, Spanish Defence Attaché, were also present at the event along with senior officials from both L&T Defence and Navantia. The event was held in the premises of the Spanish Embassy in New Delhi.

Project 75 (I)

The Naval project requires the Indian bidder to tie up with a foreign collaborator (FC) and execute the programme for delivery of six conventional submarines equipped with air-independent propulsion (AIP), while achieving the targeted indigenous content. Estimated at over €4.8 billion, it is the India‘s largest defence acquisition project. It would be followed by a 30-year lifecycle sustenance contract of similar value.

P75(I) would be the first programme to be processed under the ambitious strategic partnership (SP) model of acquisition of the defence ministry. L&T and Navantia signed an MoU for the programme on April 11 at Madrid, which has now culminated in this TA.

Design of P75(I) submarines

Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is undergoing sea trials prior to its delivery to Spanish Navy at the end of 2023. Apart from S80 class, Navantia has been involved in the design and construction of Scorpéne class of submarines together with DCNS (Now Naval Group) of France, which have been exported to Chile and Malaysia. Navantia has also been involved in the Scorpene submarines (Kalvari class) built in India, including handholding of the Indian yard.

The P75(I) programme calls for integration of an AIP system. Navantia’s 3rd Generation AIP solution is an advanced AIP system, easy to exploit and maintain, and is environment-friendly. It uses bioethanol as a source of hydrogen which is known to be cost-efficient, easily available, and does not call for any special infrastructure. High density of hydrogen in ethanol improves the AIP system’s efficiency. Ethanol, being in liquid form, eliminates the risks associated with storing hydrogen. In addition, wide availability of ethanol enables the system to be refuelled anywhere in the world.

L&T and Navantia are also seeking cooperation in other military programmes as well as in green energy opportunities, including offshore wind through Navantia Seanergies division.

Read: L&T completes transition of $150-mn term loan into sustainability-linked loan

"Navantia’s glorious 300-year-old track record in naval construction and technical expertise gives us a competitive advantage in this programme and offers the bio-ethanol stealth technology (BEST) and environmentally green AIP solution," Subrahmanyan said.

"It gives us great joy to be in a position to be the design and technology partner for P75(I). We are also in collaboration with L&T for the Landing Platform Dock (LPD) programme whose tender is eagerly awaited. With these two prestigious programmes for the Indian Navy, Navantia is proud to be making a key contribution towards fulfilling the defence needs of India, a nation with which Spain shares excellent relationship," Blanco said.