Indian Navy to induct 5 warships in 2 months, Rs 15,000-crore deal: Sources

The Indian Navy is likely to induct five new warships, worth Rs 15,000 crore, over the next two months, sources told Zee Business. Built by Cochin Shipyard Ltd (CSL), Garden Reach Shipbuilders and Engineers (GRSE) Ltd and Mazagon Dock Shipbuilders Limited, said the sources. The development is viewed as broadly aligned with the central government's 'Atmanirbhar Bharat' in Defence (self-reliant India in defence) vision.

Among the key vessels, Dronagiri and Mahendragiri belong to the Project 17A frigate class, and are constructed by Garden Reach Shipbuilders and Engineers (GRSE) and Mazagon Dock Shipbuilders Limited (MDL), said a senior Indian Navy official.

The ships are part of the Navy’s advanced stealth frigate programme -- which is aimed at enhancing combat capability and survivability.

Sandhayak and Androth, both built by GRSE, are set to further strengthen the shipyard’s role in delivering specialised naval platforms, while Dronagiri is listed among the GRSE-built vessels in the current induction cycle, noted the official.

The Malvan-class ship has been built by Cochin Shipyard, the official added.

At the time of publishing this report, Zee Business was yet to receive response to its queries emailed to GRSE, Cochin Shipyard and Mazagon Dock along with the Indian Navy.

How significant is this development?

It reflects a continued acceleration in the country's naval modernisation programme, with the induction being part of a broader push to strengthen maritime security, expand indigenous defence manufacturing and reduce dependence on foreign shipbuilders.

These vessels represent a diversified expansion of the Indian Navy’s operational capabilities, ranging from frontline combat ships to support and survey vessels, said an expert.

The development comes at a time when the nation is placing greater emphasis on maritime domain awareness and blue-water navy capabilities in the Indian Ocean.

Stocks in Focus: COCHINSHIP, MAZDOCK, GRSE

On Thursday, GRSE shares rose 2.7 per cent to close at Rs 2,676.7, while Cochin Shipyard and Mazagon Dock shares rose 1.1 per cent and 0.2 per cent to Rs 1,472.4 and Rs 2,445.3 apiece, respectively.

At these levels, GRSE shares have risen 9.8 per cent so far this year, while Cochin Shipyard has declined 9.1 per cent and Mazagon slipped 1.1 per cent. The Nifty 50 has declined 10.4 per cent during this period.

In a year, GRSE is down 20.1 per cent, Cochin Shipyard down 29.3 per cent and Mazagon Shipyard down 28.2 per cent while the headline index has lost 4.9 per cent of its value.

Meanwhile, homegrown defence suppliers are expected to gain momentum on Dalal Street as the central government boosts focus on indigenous defence manufacturing. Analysts see cmpanies like Bharat Electronics Ltd (BEL), Mishra Dhatu Nigam Limited (MIDHANI) and Bharat Forge as key beneficiaries of rising demand for military-grade materials and components.

A Defence Acquisition Procedure (DAP) in this regard can be initiated over the next 30-40 days, according to sources.

The issuance of Defence Acquisition Procedure (DAP) marks an essential step in capital defence procurement in the country, as it prioritises indigenously designed, developed and manufactured equipment.

The DAC rulebook defines how the country's Armed Forces procure military equipment, technology, platforms and services.