News broke this morning that L&T’s bid for India’s Rs 70,000 crore P75(I) submarine project has been disqualified for non-compliance with norms. Due to this, Mazagon Dock Shipbuilders is now the only eligible contender for this volley. Due to this news, L&T shares were badly hit. At the same time, there was a strong rise in the shares of Mazagon Dock Shipbuilders. But an update on this news related to the cancellation of submarine tender is coming out. According to sources, there is little possibility of re-issuing the submarine tender.
Giving more detailed information on this news, Economic Policy Editor of CNBC Awaaz Laxman Roy said that 2 companies had bid in 6 submarine tenders. L&T had bid with Spanish company Spanish Navantia. L&T’s proposal was rejected for not meeting the norms. L&T did not fulfill the conditions of the Indian Navy. Whereas, Mazagon Dock Shipbuilders (MDL) had bid with ThyssenKrupp. There was a proposal to buy 6 submarines for Rs 70,000 crore. The total order value of the tender is Rs 70,000 crore. 2 companies had bid in 6 submarine tenders. But now the news is coming that after the cancellation of L&T’s bid, there is little possibility of re-issuing the tender for the submarine.
Update continues…………