New Delhi: The Ministry of Defence signed contracts worth ₹53,866.50 crore on Monday, for eight next-generation corvettes (NGCs) to strengthen the Indian Navy’s maritime combat capabilities. Kolkata-based Garden Reach Shipbuilders & Engineers Limited (GRSE) will build five warships, while Goa Shipyard Limited (GSL) will construct three.
The agreements were signed at Kartavya Bhawan-2 in New Delhi in the presence of defence secretary, Rajesh Kumar Singh, the ministry said. Both shipyards are defence public sector undertakings selected through a competitive process.
The Indian Navy will design the vessels, while GRSE and GSL will undertake construction. The ministry described this as the first project combining an indigenous Navy design with warships built by competitively selected public sector shipyards.
Corvettes are relatively compact, manoeuvrable warships used for coastal protection and regional maritime operations. The new vessels will carry advanced missiles, weapons and sensor suites designed to counter threats in the air, on the surface and underwater, according to the ministry.
Their planned missions include anti-surface and anti-submarine warfare, coastal defence, littoral combat and maritime surveillance. Littoral operations involve waters close to shore, where naval forces may need to respond quickly to threats while protecting shipping lanes and coastal infrastructure.
The warships are expected to strengthen the Navy’s maritime presence and surveillance capabilities while supporting the protection of commercial shipping routes across the Indian Ocean region.
The Defence Acquisition Council granted acceptance of necessity (AoN) for the project in June 2022 at an estimated cost of ₹36,000 crore. The latest contracts establish a procurement value of ₹53,866.50 crore.GRSE subsequently emerged as the lowest bidder when commercial bids were opened in May 2025, before Monday’s contracts established the final procurement value.
Beyond expanding the Navy’s fleet, the project is expected to generate substantial employment across India’s defence manufacturing ecosystem.
According to the defence ministry, construction will generate approximately 72 lakh person-days of employment in the shipyards and another 460 lakh person-days across ancillary industries and micro, small and medium enterprises (MSMEs) over ten years.
In a post on X, the defence minister, Rajnath Singh, welcomed the agreement, calling it “Great news for India’s indigenous shipbuilding ecosystem.”
Singh said the programme would strengthen collaboration among defence public sector undertakings, private shipyards and Indian industrial partners, including MSMEs. He also highlighted the use of “Made in India” materials, equipment and indigenous technologies, describing the project as an important step towards Atmanirbharta in defence manufacturing.