Indian Navy News, New Delhi, April 2, 2025 – In a significant step toward self-reliance in defence manufacturing, the Indian Navy signed a Project Sanction Order (PSO) under the Make-I category with Kirloskar Oil Engines Limited (KOEL) for the design and development of a 6MW Medium Speed Marine Diesel Engine. The agreement, valued at Rs 270 crore, was formalized at South Block, New Delhi, marking a milestone in India’s Aatmanirbhar Bharat initiative.
Boosting Indigenous Defence Capabilities
The project aims to develop a prototype diesel engine with over 50% indigenous content, reducing India’s reliance on imported high-capacity marine engines from foreign Original Equipment Manufacturers (OEMs).
With 70% funding from the Government of India, the initiative underscores the commitment to fostering domestic innovation in critical defence technologies.
The signing ceremony was attended by Secretary (Defence Production) Shri Sanjeev Kumar and Vice Chief of the Naval Staff Vice Admiral Krishna Swaminathan.
Scalable Engine Design for Naval Needs
Beyond the 6MW engine, the project includes the detailed design development of marine diesel engines ranging from 3MW to 10MW.
These engines will power main propulsion and electricity generation systems on Indian Navy and Indian Coast Guard ships, enhancing operational readiness and autonomy.
The scalable design ensures versatility, catering to a range of naval platforms and future requirements.
Ending Import Dependency
Historically, India has depended on foreign OEMs for high-capacity diesel engines, a critical component for naval vessels.
This project marks the beginning of a new era in indigenous marine engine production, aligning with Prime Minister Narendra Modi’s vision of self-reliance.
By developing these engines domestically, India aims to save foreign exchange and build a robust defence industrial ecosystem.
Catalyst for Industry Growth
The collaboration with KOEL, a leading Indian manufacturer, is expected to spur innovation and strengthen the private sector’s role in defence production.
The project will create opportunities for
- ancillary industries,
- fostering job creation and
- technological advancements
It positions India as a potential hub for defence manufacturing, with ripple effects across the global supply chain.
A Step Toward Aatmanirbhar Bharat
Raksha Mantri Shri Rajnath Singh lauded the agreement, calling it a pivotal move toward achieving self-reliance in defence.
The Ministry of Defence emphasized that the project will not only enhance naval capabilities but also contribute to India’s broader goal of indigenizing critical technologies, ensuring strategic and economic resilience.