India Inks ₹53,866 Crore Corvette Pact to Boost Navy and Shipbuilding

India has taken a decisive step toward modernising its naval fleet and deepening its shipbuilding base. The Ministry of Defence on Monday signed agreements worth ₹53,866.50 crore for the building of eight Next Generation Corvettes for the Indian Navy.

The contracts were awarded to Garden Reach Shipbuilders and Engineers Limited (GRSE) and Goa Shipyard Limited (GSL). The signing ceremony took place in the presence of Defence Secretary Rajesh Kumar Singh.

GRSE will construct five of the corvettes, while GSL will deliver three. The ministry termed the project historic, as it is the first time indigenously designed Navy warships will be produced by Defence Public Sector Undertakings selected through a competitive process.

The Next Generation Corvettes will carry advanced missiles, weapon systems and sensors. They are designed for multi-dimensional maritime operations, including anti-air, anti-surface and anti-submarine missions.

According to the ministry, the vessels will substantially improve the Navy's capacity to safeguard maritime trade routes, conduct coastal defence, undertake littoral combat operations and carry out surveillance and presence missions at sea.

The project is also expected to deliver wide-ranging economic gains. Over the next 10 years, it is projected to generate about 72 lakh man-days of work in shipyards, along with nearly 460 lakh man-days in ancillary industries and the MSME sector.

The government views the project as a boost to India's indigenous shipbuilding ecosystem and a fresh impetus to the Atmanirbhar Bharat drive in defence manufacturing.

The development comes after the Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, granted in-principle approval in October to defence procurement proposals worth roughly ₹2.12 lakh crore. About 82 per cent of these purchases are slated to be made from domestic industry.