Larsen & Toubro (L&T) has received a major blow from the Indian Defence Ministry after its bid was rejected in the five billion euro deal to supply six stealth submarines for the Indian Navy. What is the reason behind this? 
L&T’s Defense Ministry :-Larsen & Toubro (L&T) has recently received a significant blow from the Ministry of Defence. The Indian Navy was looking to procure six stealth submarines under a €5 billion deal, and L&T had partnered with Spain’s prominent defense company Navantia for this project. However, the Ministry of Defence found that their proposal did not meet the required specifications, leading to the termination of their bid.
After regional trials of the submarine, it was revealed that the L&T-Navantia joint venture could not meet the Navy’s necessary requirements. As a result, the German defense giant Thyssenkrupp Marine Systems (TKMS) and Mazagon Dock Shipbuilders Limited (MDL) are now in a better position to win the contract. The official details or results of the evaluation tests have not been disclosed, but the Ministry is expected to announce the winner of the ‘Project 75 India’ (P75-I) in the coming months, under which six submarines are to be developed.
The government had issued a ₹70,000 crore tender for the six submarines, and L&T had participated in it. However, according to the Ministry of Defence, L&T did not comply with the stipulated conditions. The Indian Navy wants submarines that can stay submerged for up to three weeks under the Project 75 India. L&T’s proposal with Navantia failed to meet this requirement, which led to the disqualification of their bid.
According to defense sources, if the contract is signed, the first submarine is expected to be delivered by 2032, seven years from the signing date. The project falls under the Ministry of Defence’s acquisition plan for Project 75 (India). In a statement to the National Stock Exchange, MDL confirmed that its commercial bid has been opened for further evaluation by the Ministry of Defence.
L&T recently made headlines due to a controversial video of its Chairman and MD, S.N. Subrahmanyam. In the video, which surfaced on Reddit, Subrahmanyam advised employees to work 90 hours a week. He even mentioned that if it were up to him, he would make employees work on Sundays as well. His remarks, including “What do you do at home? How long can you just stare at your wife? Go to the office and start working,” led to significant backlash on social media, where he was widely trolled.
The combination of this project setback and the social media controversy has created a challenging phase for L&T.