Indian sub project: SAAB out, Daewoo in

The more than $9 bln submarine project contest for the Indian Navy continues to surprise with the last minute entry of a South Korean shipbuilder and the pulling out of Swedish company Saab after red-flagging policy strictures that can potentially place unlimited liabilities on foreign vendors.

South Korean company Daewoo Shipbuilding and Marine Engineering was extended a late invitation to place technical bids for the contract last month, weeks before a visit by defence minister Rajnath Singh to Seoul.

The company now joins the Naval Group (France), TKMS (Germany), Rosoboronexport (Russia) and Navantia (Spain) as potential foreign partners for the project to build six conventional submarines in India. This is the single largest ‘Make in India’ project.