AstraYAN, a deep-tech company incubated at IIT-Madras, has emerged as the lowest bidder (L1) for a key Propulsion System Integration (PSI) contract linked to five indigenous Next Generation Corvettes (NGCs) being built by Garden Reach Shipbuilders & Engineers Ltd (GRSE) for the Indian Navy under a program valued at approximately ₹32,000 crore, Business Line reported.

The Chennai-based Start-Up outbid established international competitors from Germany and Italy to secure the leading position in the tender process.

According to a senior AstraYAN official, the company has become the first Indian firm to achieve this highly specialised and complex technological milestone despite operating with a team of only 15 people.

The contract relates to the integration of an advanced Combined Diesel and Gas Turbine-Cross-Connect (CODAG-CC) propulsion arrangement. This sophisticated propulsion architecture is intended to meet the demanding operational requirements of the Navy’s next-generation frontline combat platforms.

The bid has now progressed to the price negotiation phase, which is expected to take at least a month before the contract is formally concluded with GRSE and work on the propulsion integration begins.

The NGCs are being designed as versatile multi-role warships capable of undertaking a broad range of maritime missions. These include offensive ship-to-ship and ship-to-surface missile strikes, anti-missile defence, anti-submarine warfare, escort operations, maritime interdiction missions, Visit, Board, Search and Seizure (VBSS) activities, and local naval defence duties.

The propulsion contract follows the Ministry of Defence’s recent signing of agreements worth ₹53,866.5 crore with GRSE and Goa Shipyard Ltd (GSL) for the construction of eight Next Generation Corvettes. GRSE is responsible for building five vessels, while GSL will construct three.

AstraYAN has indicated that it will also pursue a similar propulsion system integration opportunity associated with the three corvettes being built by GSL.

The selection process extended over more than a year and initially attracted five prominent international participants, including companies from Italy, Spain and Germany. Technical assessments were carried out by the Indian Navy, the Naval Science & Technological Laboratory (NSTL), a Defence Research and Development Organisation (DRDO) laboratory, alongside the shipyards involved in the programme.

Following technical and commercial evaluations, the contest narrowed to three companies from Germany and Italy, with AstraYAN ultimately emerging as the L1 bidder.

The corvettes will be 127 metres long with a beam of 17.6 metres and a deadweight of 4,950 Tons. They are designed to remain at sea for up to 14 days without replenishment and achieve a maximum speed of 26 knots.

Highlighting the significance of the achievement, the AstraYAN official stated that the company is “the first Indian company to achieve this rare complex technological feat” despite its compact workforce, underlining the growing capability of India’s indigenous maritime technology sector and the broader drive towards defence self-reliance.

Agencies