Mazagon Dock Shares Rise After Positive Update On Mega Project 75 Submarine Order

Shares of Mazagon Dock Shipbuilders Ltd. rose during early trading on Monday after the Central government gave clearance to the Defence Ministry to begin negotiations for the Rs 70,000 crore deal to buy six submarines to be built in India with German support under 'Project 75 India'.

In January, the Defence Ministry selected state-owned Mazagaon Dock for building six submarines with Air Independent Propulsion systems with Germany's ThyssenKrupp Marine Systems as its partner.

The Indian Navy is looking to buy six advanced submarines with the ability to stay underwater for three weeks under Project 75 India, and the German AIP would allow it to do so, as per reports.

"The negotiations for the project and the process are expected to start by the end of this month," defence officials told ANI.

During an earnings call in May, Mazagon Dock management said they are expecting the P-75 additional submarines and the P-75(I) submarines contract to be signed in the current financial year. That is expected to increase the company's order book from the present Rs 32,000 crore to more than Rs 1.25 lakh crore.

"We have already augmented our capacity from the construction of six submarines to 11 submarines because we are preparing to take both the additional submarines of 75 and the six P-75(I) for which we have already set up the SSA facility or the submarine section assembly workshop," Chairman and Managing Director Capt. (Retd.) Jagmohan said.