Larsen & Toubro (L&T) signed a contract with Defence Research and Development Organisation (DRDO) on Thursday for the realisation of two Air Independent Propulsion (AIP) System Modules for Kalvari Class of Submarines of the Indian Navy, the company announced in an exchange filing. 

As per the filing, these modules constitute the core of the fuel cell-based AIP System, developed by the Naval Materials Research Laboratory (NMRL) of DRDO, with L&T as the prime industry partner. The Energy Modules (EMs) comprising Fuel Cells produce the required power, along with onboard Hydrogen generation.

“L&T is privileged to be associated with realising the dream of realising an indigenous AIP system and mark India’s joining a select group of few nations who have developed the requisite technology,” said L&T Defence Head Arun Ramchandani.

The EMs will be manufactured, integrated, and factory accepted at L&T’s AM Naik Heavy Engineering Complex in Surat. According to L&T, this project will open the path for AIP Systems to receive orders for the other five Kalvari Class submarines in the future.

The press release added that the deal would make India one of the elite nations that have indigenously developed fuel cell-based submarine AIP technology, which is critical for increasing the endurance of conventional submarines. This could also open possible export opportunities to other countries operating Scorpene-class submarines.

Following the announcement, shares of L&T traded on a positive note hitting a new 52-week high of Rs 2424 per share. The stock ended at Rs 2,418, nearly a per cent higher from the previous close.