Published 13:40 IST, January 24th 2025
Indian Navy Rejects L&T’s Bid for Six Advanced Submarines Over Compliance Issues
Larsen and Toubro (L&T) has been disqualified from the Indian Navy's ₹70,000 crore Project 75 India (P-75I) submarine acquisition program.

New Delhi, India - The Ministry of Defence has found Larsen and Toubro (L&T)'s bid non-compliant in the ₹70,000 crore tender for the acquisition of six advanced submarines under Project 75 India (P-75I), defence sources told ANI. The Indian Navy, which aims to enhance its underwater capabilities with submarines capable of operating submerged for up to three weeks, has ruled out L&T’s bid in partnership with Spanish firm Navantia for failing to meet key operational requirements.
According to defence officials, L&T and Navantia had demonstrated the working of their Air Independent Propulsion (AIP) system at a shore-based facility in Spain. However, the Indian Navy's tender specifications explicitly required a sea-proven system, which the L&T-Navantia consortium failed to provide. This latest development leaves the state-owned Mazagon Dock Shipbuilders Limited (MDL), in collaboration with Germany’s ThyssenKrupp Marine Systems (TKMS), as the only remaining contender for the massive defence contract.
Compliance Issues and Project Implications
The rejection of L&T's bid raises significant implications for India's strategic submarine acquisition programme. With MDL now the sole contender in the competition, concerns have been raised over the lack of competition in such a critical project. Defence officials, however, have reassured that the vetting process at all levels has been thorough and transparent, adhering strictly to the Navy’s operational and technical requirements.
Sources indicate that suggestions have been made to split the contract equally between shipyards to ensure efficiency and timely delivery. However, the Defence Ministry has maintained its stance on adhering to the outlined procurement process.
Mazagon Dock’s Advantage
MDL, which recently delivered the sixth and final Scorpene-class submarine, INS Vagsheer, to the Indian Navy under Project 75, is well-positioned to capitalize on the new contract. The shipyard is also set to build three additional Scorpene-class submarines in collaboration with France’s Naval Group under Project 75 (Additional Submarine).

If awarded the P-75I contract, MDL, along with TKMS, will construct next-generation submarines featuring cutting-edge AIP technology and enhanced stealth capabilities. These submarines will play a crucial role in bolstering India's maritime security, especially in light of China's rapidly expanding naval presence in the Indian Ocean Region (IOR).
Strategic Imperatives and Challenges Ahead
India’s submarine fleet faces significant modernization challenges, with both China and Pakistan investing heavily in their undersea capabilities. Despite recent approvals for both nuclear and conventional submarine programs, experts believe India must expedite procurement and development to counter evolving regional threats effectively.

Larsen and Toubro, a key player in India's defence sector, has played a pivotal role in the development of India’s strategic submarine programs, including infrastructure on both eastern and western seaboards to support the Navy’s operational requirements. Despite the setback in the P-75I competition, the company is expected to remain a critical partner in future naval projects.
With L&T’s bid out of the race, the spotlight now shifts entirely to Mazagon Dock Shipbuilders and ThyssenKrupp Marine Systems to deliver submarines that meet the Indian Navy’s stringent requirements.
Updated 13:40 IST, January 24th 2025