The Indian Navy’s ₹33,000–36,000 crore Next-Generation Corvette (NGC) program, originally expected to be signed in March 2026, has been slightly delayed but is now firmly anticipated to be concluded within this quarter.
Garden Reach Shipbuilders & Engineers (GRSE), which secured the lowest bidder status, has confirmed that price negotiations are complete and the contract is at the final stage.
The NGC program represents one of the largest naval contracts in India’s shipbuilding sector, with GRSE positioned to construct five advanced corvettes. These vessels are designed for anti-surface warfare and will incorporate stealth features such as reduced radar cross-section, infrared, acoustic and magnetic signatures.
Each corvette is expected to displace around 3,500 tons, measure under 120 metres in length, and achieve speeds exceeding 27 knots. The ships will be armed with BrahMos missiles, torpedo tubes, and advanced radar and sonar suites, making them formidable assets for littoral and blue-water operations.
The Defence Acquisition Council cleared the acquisition of eight corvettes in June 2022, with GRSE later declared L1 for five units under the program. The overall cost is estimated at ₹36,000 crore, with each vessel priced around ₹4,000 crore.
Indigenous marine diesel engines are planned under the ‘Make-I’ category, with Kirloskar Oil Engines Ltd and GRSE expected to lead development. This aligns with India’s broader push for self-reliance in defence manufacturing.
GRSE’s current order book stands at approximately ₹15,324 crore, covering 39 platforms across defence and commercial projects. The company delivered eight warships in FY26, including three on the same day, marking a record year.
Management has highlighted that revenue recognition from the NGC project will begin only in the second half of FY28, with major contributions expected from FY29 onwards as construction scales up. This phased execution reflects the long gestation cycles of complex naval projects.
The delay in formal signing from March to the current quarter is attributed to the finalisation of negotiations and procedural clearances.
However, GRSE’s leadership has assured investors and stakeholders that the contract is imminent.
The program is expected to provide long-term order visibility and sustain India’s naval modernisation drive, complementing other projects such as P17A destroyers, survey vessels, and shallow water craft.
Strategically, the NGCs will replace ageing Khukri and Kora-class corvettes, enhancing India’s ability to project power in the Indo-Pacific.
Their stealth and missile capabilities will strengthen deterrence against regional adversaries and bolster India’s maritime security posture. The integration of indigenous engines and systems also underscores the government’s emphasis on Atmanirbhar Bharat in defence.
For GRSE, the NGC contract is a transformative milestone. Beyond immediate financial impact, it positions the shipyard at the forefront of India’s naval shipbuilding ecosystem.
The company has flagged a defence orders pipeline worth ₹1.5 lakh crore beyond the corvette project, signalling sustained growth opportunities. Faster deliveries, capability enhancement, and diversification into auxiliary businesses are part of its forward strategy.
Agencies
