Larsen and Toubro and DRDO have signed a contract for the realisation of two Air Independent Propulsion (AIP) system modules for 'Kalvari' class submarines of the Indian Navy.

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The contract documents were exchanged between Arun T Ramchandani, Executive Vice President and Head-L&T Defence, and PT Rojatkar, Director of Naval Materials Research Laboratory (NMRL), L&T informed stock exchanges on Thursday.

L&T is the recipient of the Transfer of Technology (ToT) for this Defence Research and Development Organisation (DRDO)-developed system.

"The technology of this indigenous AIP system is a unique one that generates hydrogen on demand thereby obviating the need for carrying hydrogen onboard which is a major safety concern for a submarine," it said in the release.

On realization and integration of these modules in the submarines, India will join an elite club of a handful of nations who have indigenously developed fuel cell-based submarine 'AIP' technology, which is critical for increasing the endurance of conventional submarines.

"Our commitment to nation-building continues to be as strong as ever and establishes yet another milestone in our journey to fulfill India's aspirations to become Atmanirbhar in critical technologies," said L&T's Ramchandani.

The manufacturing, integration, and factory acceptance trials of the systems will be undertaken in L&T's AM Naik Heavy Engineering Complex at Surat.