Of the combined contract, Mumbai-based Mazagon Dock bagged around Rs 1,990 crore order for the construction of an AAir Independent Propulsion (AIP) Plug and its integration with the Defence Research and Development Organisation (DRDO)-developed AIP system onboard Indian submarines.

While the first contract with Mumbai's Mazagon Dock Shipbuilders Limited is worth around Rs 1,990 crore, the second one with Naval Group, France, is worth Rs 877 crore, according to a statement issued by the ministry.

The Defence Ministry has inked two contracts with a combined value of approximately Rs 2,967 crore. One contract is signed with Mazagon Dock Shipbuilders Limited (MDL) while the other is inked with Naval Group,

The initial rally in the Mazagon Dock share was fuelled after the company secured a deal worth Rs 1,990 crore from the Ministry of Defence

The Ministry of Defence has signed these agreements for enhancing the capabilities of the Indian Navy's submarines, particularly the Kalvari-Class, through advanced technologies like Air Independent Propulsion (AIP) and Electronic Heavy Weight Torpedo (EHWT) systems.

Mazagon Dock shares settled 1.84 per cent lower at Rs 2,266.25 today. At this price, it has rallied 98.46 per cent in calendar year 2024 which is drawing to a close. Last Friday (December 27), the counter turned ex-stock split in a 2:1 ratio.

The ministry also signed a Rs 870 crore ($102 million) contract with France's Naval Group for integration of torpedoes on Indian navy submarines

The Ministry of Defence signed a second contract, worth ₹877 crore, with Naval Group of France. Shares of Mazagon Dock Shipbuilders Ltd ended at ₹2,266.25, down by ₹42.45, or 1.84%, on the BSE.

India bolsters its naval defense with Rs 2,867 crore contracts with Mazagon Dock Shipbuilders Limited and Naval Group, France, aimed at enhancing Kalvari-Class submarines. Mazagon Dock will construct an AIP Plug to extend submarine endurance,