22 May , 2025 By : Debdeep Gupta
Shares of shipbuilder Garden Reach (GRSE) were sharply higher by over three percent in early trade on May 22 after the company said in an exchange filing that it has emerged as the lowest bidder for over Rs 25,000 crore worth of contract to build eight next generation Corvettes for the Indian Navy.
GRSE had attended the Commercial Negotiation Committee (CNC) meeting convened by the Defence Ministry for eight Next Generation Corvettes (NGC) on May 21.
"During the meeting, the Commercial bids were opened and it was noted that GRSE become the Lowest bidder (L1) for Construction of Next Generation Corvettes (NGC) for Indian Navy. The L1 bidder will be awarded five NGC ships at a likely value of more than Rs 25,000 crore," the company filing said.
GRSE had said in the past the Corvette is a 'high-value' order, something which the shipyard is 'eagerly looking forward to'.
After emerging as the L1 bidder, it will take around six months for the contract to be signed, GRSE said, and the revenue recognition from the project is expected to commence from 2027. "...as far as Corvettes are concerned, we have mastered the construction of Corvettes. Nine Corvettes, both missile surface as well as ASW, are currently running in the Navy, and all Nine are built by GRSE," Cmde PR Hari has said.
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