Mazagon Dock clarifies on Rs 70,000-crore submarine project, says this 

Defence firm Mazagon Dock on Monday clarified on a report stating that its stock rose on Rs 70,000-cr submarine project talks with Germany’s Thyssenkrupp. The shipbuilder described the report as factually incorrect. In a communication to the bourses, the firm said, "MDL was informed in writing by MoD ACQ Wing [ADG ACQ-Tech (M&S)] on 14 January 2025 that the MDL Bid for Project P75W was qualified for next stage of procurement. MDL’s Commercial Bid was opened by the empowered Committee on 16 January 2025. However, thereafter, no negotiations have been commenced with IN/MoD for the Project."

The defence firm also said it had no information that was not announced to the Exchanges, which could explain the movement in the company's stock on Monday. 

In the previous session, the stock rose nearly 4% in early deals amid a report, which said the Ministry of Defence has allowed the defence firm to start cost negotiations with Germany's Thyssenkrupp Marine Ltd. for building six submarines, under the P-75(I) project.

Mazagon Dock shares rose 3.61% or Rs 97.5 to Rs 2798.15 amid a rally in Sensex and Nifty on Monday. Later, they closed 2% higher at Rs 2756 on BSE.    

According to a CNBC TV18 report, negotiations for the Rs 70,000 crore project were likely to start soon. The project will be awarded to Mazagon Dock and Thyssenkrupp, six months after successful completion of the cost negotiations.

Mazagon Dock and Thyssenkrupp inked a Memorandum of Understanding (MoU) in June 2023 for the construction and delivery of six submarines for the Indian Navy. Under the MoU, Thyssenkrupp was would handle the engineering and design, while Mazagon Dock will be responsible for the construction and delivery of those six submarines.

Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.