Of the combined contract, Mumbai-based Mazagon Dock bagged around Rs 1,990 crore order for the construction of an AAir Independent Propulsion (AIP) Plug and its integration with the Defence Research and Development Organisation (DRDO)-developed AIP system onboard Indian submarines.

While the first contract with Mumbai's Mazagon Dock Shipbuilders Limited is worth around Rs 1,990 crore, the second one with Naval Group, France, is worth Rs 877 crore, according to a statement issued by the ministry.

The initial rally in the Mazagon Dock share was fuelled after the company secured a deal worth Rs 1,990 crore from the Ministry of Defence

On Monday (December 30), the Ministry of Defence (MoD) announced the signing of two contracts for ₹2,867 Crore to upgrade the operating capabilities of Indian submarines. The agreements were signed in New Delhi on December 30, 2024, in the presence of Defence Secretary Rajesh Kumar Singh.

The first contract, worth around ₹1,990 crore, was signed with Mazagon Dock Shipbuilders Limited (MDL) for the construction of an air-independent propulsion (AIP) plug for the DRDO-AIP system

The Ministry of Defence has signed these agreements for enhancing the capabilities of the Indian Navy's submarines, particularly the Kalvari-Class, through advanced technologies like Air Independent Propulsion (AIP) and Electronic Heavy Weight Torpedo (EHWT) systems.

Mazagon Dock shares settled 1.84 per cent lower at Rs 2,266.25 today. At this price, it has rallied 98.46 per cent in calendar year 2024 which is drawing to a close. Last Friday (December 27), the counter turned ex-stock split in a 2:1 ratio.

The ministry also signed a Rs 870 crore ($102 million) contract with France's Naval Group for integration of torpedoes on Indian navy submarines

India bolsters its naval defense with Rs 2,867 crore contracts with Mazagon Dock Shipbuilders Limited and Naval Group, France, aimed at enhancing Kalvari-Class submarines. Mazagon Dock will construct an AIP Plug to extend submarine endurance,