Mazagon Dock Shipbuilders Shares Climb On Reports Mega Submarine Deals Making Progress

Mazagon Dock Shipbuilders Ltd.'s share price spiked 1.62% on the likelihood of India making two mega submarine deals worth over Rs 1 lakh crore by the middle of next year.

"The first project that is being negotiated is for the procurement of three Scorpene submarines, which will be jointly constructed by state-run Mazagon Dock Shipbuilders Limited and French defence major Naval Group," as per a PTI report.

While the defence ministry cleared the nearly Rs 36,000-crore deal over two years back, delays have occurred in negotiations for various technical and commercial aspects of the project, added the report, citing sources.

According to the report, the second project is for the acquisition of six diesel-electric stealth submarines which will come at a cost of Rs 65,000 crore. This was initially cleared by the government about four years ago in 2021.