India Signs 2 Major Defence Contracts to Boost Submarine Capabilities

The Defence Ministry has signed two contracts worth ₹2,867 crore to upgrade India’s submarine fleet.

The deets:

• The first, a ₹1,990 crore deal with Mazagon Dock, is for an air-independent propulsion (AIP) plug developed by DRDO. This will extend submarines’ underwater endurance, enhancing their strategic edge.
• The second, a ₹877 crore contract with France’s Naval Group, will integrate electronic heavy-weight torpedoes into Kalvari-class submarines, boosting their firepower.

Why it matters: Mazagon Dock is no stranger to big wins. With a robust ₹39,872 crore order book and a Q2 profit surge of 76% year-on-year, the company is riding high.

These new deals also align well with the broader ‘Aatmanirbhar Bharat’ push.

Bottomline: Despite a 1.84% stock dip to ₹2,266.25, the company’s long-term prospects look solid as India modernizes its naval fleet.