Mazagon Dock Shipbuilders Limited (MDL) has signed a contract valued at approximately ₹1,990 crore with the Ministry of Defence (MoD) for the design, construction, and integration of an Air Independent Propulsion (AIP) plug into Scorpene-class submarines. The agreement was formalized in New Delhi on December 30, 2024, in the presence of Defence Secretary Rajesh Kumar Singh.

The AIP technology, developed indigenously by the Defence Research and Development Organisation (DRDO), aims to extend the underwater endurance of conventional submarines. The contract includes the design, construction, and integration of the AIP plug, with delivery scheduled within 42 months from the release of advance payment.

The project is part of ongoing efforts to enhance domestic defense capabilities. MDL, a government-owned company under the administrative control of the MoD, has previously undertaken significant naval shipbuilding and submarine projects.

This development aligns with India’s broader strategy to strengthen its defense manufacturing sector and reduce reliance on imports.