Hindustan Shipyard Ltd. (HSL) has awarded Larsen & Toubro (L&T) a sizable contract for the partial construction of two Fleet Support Ships (FSS) for the Indian Navy. The business considers orders worth between ₹1,000 crore and ₹2,500 crore to be’significant’.
The project will be managed by L&T’s Precision Engineering Systems business vertical, enhancing its standing in the defense industry.
In July 2024, Larsen & Toubro (L&T) announced that its Precision Engineering & Systems business vertical secured a ‘significant’ order from Hindustan Shipyard Limited (HSL) for the partial construction of two Fleet Support Ships (FSS) for the Indian Navy. L&T classifies ‘significant’ orders as those ranging between ₹1,000 crore and ₹2,500 crore.
Background of the Fleet Support Ships Project
In August 2023, the Indian Navy signed a contract with HSL to design and construct five Fleet Support Ships, with an overall project value of approximately ₹19,000 crore. These vessels are intended to enhance the Navy’s operational logistics by providing replenishment support to naval ships at sea, thereby extending their operational range and endurance.
Scope of L&T’s Involvement
Under the agreement, L&T is responsible for the partial construction of two out of the five Fleet Support Ships. The construction will take place at L&T’s state-of-the-art shipyard in Kattupalli, near Chennai, on India’s east coast. This facility is equipped with advanced infrastructure and technology, enabling the efficient construction of large and complex vessels.
Strategic Importance of the Collaboration
This collaboration between HSL and L&T signifies a strategic partnership aimed at bolstering India’s indigenous shipbuilding capabilities. By leveraging L&T’s modern shipyard facilities and engineering expertise, the project aims to ensure the timely delivery of these critical assets to the Indian Navy. The partnership also reflects the government’s ‘Make in India’ initiative, focusing on enhancing self-reliance in defense manufacturing.
L&T’s Track Record in Defense Shipbuilding
Since receiving its first defense shipbuilding order in March 2010, L&T has designed, constructed, and delivered over 70 defense vessels, including offshore patrol vessels, interceptor boats, and specialized naval platforms. The company’s consistent delivery, often ahead of schedule, underscores its commitment to quality and efficiency in defense manufacturing.
Recent Developments
On February 20, 2025, L&T’s shipyard at Kattupalli held a steel-cutting ceremony for the third Fleet Support Ship, marking a significant milestone in the project’s progression. The event was attended by Rear Admiral Satish Shenai and other senior officials from the Indian Navy, HSL, and L&T. This ceremony signifies the commencement of the physical construction phase for the third vessel, aligning with the Ministry of Defence’s deadline for delivery starting in mid-2027
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