Defence Ministry Signs Contracts Worth Rs 53,866 Crore for Eight Naval Corvettes

The Ministry of Defence signed contracts worth Rs 53,866.50 crore on 2 November for eight Next Generation Corvettes for the Indian Navy. Garden Reach Shipbuilders & Engineers will construct five of the vessels. Goa Shipyard Limited will build the remaining three. Defence Secretary Rajesh Kumar Singh attended the signing at Kartavya Bhawan-2 in New Delhi.

This is the first project in which the ships will be designed by the Indian Navy and constructed by defence public sector undertakings chosen through a competitive process. The corvettes will carry advanced missiles, weapons and sensor suites for air, surface and sub-surface operations. They are intended to replace ageing Khukri and Kora-class ships. Officials expect the first vessel to reach the Navy by 2030.

Construction is projected to generate approximately 72 lakh person-days of employment in the shipyards. Another 460 lakh person-days are expected in ancillary industries and micro, small and medium enterprises over the next ten years. The combined total is 532 lakh person-days. The project will use Made-in-India materials, equipment, technologies and skills.

A corvette is a fast, manoeuvrable warship smaller than a frigate or destroyer. These vessels are primarily designed for coastal and near-sea duties, including protection of maritime trade routes, anti-surface and anti-submarine warfare, coastal defence, littoral combat and surveillance. The contracts mark a step in indigenous warship design and construction under the Ministry of Defence’s stated focus on self-reliance in defence manufacturing.

GRSE was the lowest bidder when commercial bids opened in May 2025. The ministry has not released the unit cost of each vessel or the detailed delivery schedule beyond the 2030 target for the first ship. The ships will be equipped for multi-domain missions, though specific weapon systems have not been listed in the public statements. The project strengthens collaboration among DPSUs, private shipyards and Indian industrial partners.

The signing follows earlier approvals for the next-generation destroyer programme. The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, had given in-principle approval for futuristic warships amid maritime security concerns involving China and Pakistan. The corvette contracts are separate and focused on smaller, faster vessels suited to coastal roles. The ministry described the deal as a milestone for indigenous design capability.

No further financial details, such as advance payments or escalation clauses, have been made public. The employment estimates cover both direct shipyard work and the wider supplier base. The vessels will support the Navy’s presence in littoral waters and along trade routes. Delivery timelines and final configurations will depend on construction progress at the two shipyards.