L&T’s Patil says substantial defence business opportunities ahead

With Defence Ministry signing contract with Larsen & Toubro (L&T) for acquisition of three cadet training ships, the L&T’s top executive JD Patil said they will deliver the platforms ahead of five year schedule Navy has fixed.

Though the government had announced earlier, the Ministry of Defence (MoD) Tuesday signed contracts with the L&T and Hindustan Aeronautics Limited (HAL) for procurement of three cadet ships and 70 HTT-40 basic trainer aircraft respectively in the presence of minister Rajnath Singh in New Delhi.

Defence Minister Rajnath Singh during the signing of a contract between Ministry of Defence and Hindustan Aeronautics Limited for procurement of 70 HTT-40 Basic Trainer Aircraft, in New Delhi, on Tuesday | Photo Credit: PTI

Boosting self-reliance

While the deal with L&T is worth more than ₹3,100 crore under buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} category, the Indian Air Force will get 70 HTT-40 trainer aircrafts from HAL at a cost of over ₹6,800 crore. The move is aimed at giving major boost to self-reliance in the defence sector.

JD Patil, Member of Executive Committee of Management and Advisor (Defence & Smart Technologies) to CEO and MD, L&T, told businessline that the government’s decision is a reflection of the capability his company has built over the years. “We generally have delivered ahead of schedule. The Navy wanted it over five years but we will do ahead of schedule,” Patil said. The delivery of ships, that is for training of officer cadets including women at sea after their basic training, will commence from 2026, said the defence ministry after signing of the deal.

Proposals on plate

Patil said his company will have substantial opportunities on plate for this and coming years as AoN has been granted for new generation corvettes, Navy is also coming up with more request for proposals (RFPs) and Coast Guards have also issued three RFPs for offshore patrol vehicles. “In fact, there will be something for every ship manufacturer as the India ups its maritime capabilities,” Patil commented. On how L&T is going to contribute to India’s $5 billion export target by 2024-25, he stated that discussions are going on at multiple places but it’s difficult to talk about it before they conclude.

The L&T shipyard in Kattupalli, Chennai, where these cadets ships will be manufactured, are also doing 15 to 20 vessel refits including commercial ones every year, he pointed out.

The ships, said the defence ministry, would also provide training to cadets from friendly countries with the aim to strengthen diplomatic relations, besides being deployed for evacuation of people from distress areas, search and rescue and humanitarian assistance and disaster relief (HADR) operations. The project will generate an employment of 22.5 lakh man-days over a period of four-and-half years.

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