New Delhi: The Ministry of Defence signed contracts worth ₹53,866.50 crore on Monday with two state-owned shipyards for eight Next Generation Corvettes (NGCs) for the Navy. The order is among the largest surface-warship deals the ministry has concluded with domestic yards.
The agreements were signed with Garden Reach Shipbuilders & Engineers (GRSE), Kolkata, and Goa Shipyard Limited (GSL) at Kartavya Bhawan-2 in New Delhi. The defence secretary, Rajesh Kumar Singh, was present. Under the split, GRSE will build five corvettes and GSL the remaining three.
The ministry described the programme as the first in which the Navy has itself designed the ships and defence public sector undertakings (DPSUs), chosen through a competitive process, will build them. The corvettes will carry advanced missiles, weapons and sensor suites for operations in the air, on the surface and underwater, the ministry said.
It added that the project will deepen cooperation among DPSUs, private shipyards and Indian industrial partners, including micro, small and medium enterprises (MSMEs), and will create jobs in shipyards and supporting industries over the next decade.
How the project got here
The programme, also referred to as Project 28A, has been in the pipeline for more than four years. The Defence Acquisition Council gave its acceptance of necessity for eight NGCs in June 2022, when the project was estimated at about ₹36,000 crore. Commercial bids were opened on May 21, 2025, and GRSE emerged as the lowest bidder (L1). Reports said GSL would build its share at the same unit cost.
The Cabinet Committee on Security (CCS), chaired by the prime minister, Narendra Modi, cleared the project last week. Reports at the time put its value at more than ₹40,000 crore. The signed contract value is higher than both the 2022 estimate and the figure reported after the CCS meeting. The material reviewed for this report did not say what accounts for the difference. Media conversions put the contract value at about $6.5 billion.
Capabilities and timelines
Media reports citing officials describe the NGCs as high-speed combatants of about 2,000 tonnes, capable of speeds of about 30 knots. They are meant to take on anti-surface, anti-air and anti-submarine roles and to replace the ageing Khukri-class and Kora-class corvettes. Reports have said the first vessel is targeted for delivery by 2030, with indigenous content above 70 per cent. These details come from media reports, and the ministry's statement had not confirmed them in the material reviewed.
Why it matters
The deal strengthens the Navy’s surface fleet as it replaces older platforms, and it gives GRSE and GSL a long-term order book. It also supports the government's push for self-reliance in defence manufacturing, since design, construction and a large share of components will be Indian.
