Larsen
& Toubro''s (L&T) defense engineering division
may go into development and construction of submarines.
L&T is in talks with foreign firms to develop required
technological expertise and know how to participate in
the Indian Navy''s Project 75 and 76.
In
October 2005, India signed a $3.5 billion deal with
French company DCNS to acquire six Scorpene class submarines.
The project includes licensed production of submarines
at Mumbai''s public sector Mazagon Docks under a technology
transfer agreement.
This
is part of the Navy''s 30-year submarine building programme,
envisaging the design and fabrication of 24 submersible
vessels for force projection in the Indian Ocean.
L&T
is planning to either co-ordinate with the public sector
firm or with the foreign partner to enter the project,
which involves building the remaining 18 submarines
indigenously. Overall project cost is estimated at $14
billion to $16 billion.
As
part of this decision, L&T may spin off its defence
division, which can then be awarded the Raksha Udyog
Ratna (RUR) status.
L&T
chairman and managing director A M Naik said the company
had tried to partner with Mazagon Docks for the Scorpene
project, but the collaboration did not materialise.
"We are interested in the submarine project. After
we get the Raksha Udyog Ratna status, we will be in
a better position to bid for future projects,"
said Naik.
The
company has already made its foray into shipbuilding.
L&T has received a Rs440 crore order to make four
ships for the Rotterdam-based Zadeko. The company plans
to invest Rs2,000 crore for a new greenfield shipyard
that can make all kinds of vessels, including CNG and
LNG carriers, as well as container carriers.
L&T''s
defence division already makes Pinaka rocket launchers
for the Indian Army, and it is bidding for refurbishment
of the army''s Bofors artillery guns.
The
company is apparently in talks with European Aeronautics
Defence and Space Company (EADS), the parent firm of
European aircraft maker Airbus, for a joint venture.
Last
year, L&T''s revenue from defence production was
Rs3,000 crore.
