The submarines, to be fitted with anti-ship cruise missiles and other lethal weapons, will be constructed in India jointly by an Indian defence major and a foreign submarine manufacturer under the P-75 (I) programme.
Nirmala Sitharaman made a strong pitch for 'Make in India" and referred to a slew of initiatives taken by the government, including permitting 100 per cent Foreign Direct Investment (FDI) in Defence manufacturing.
The defence ministry on Monday approved a long-pending proposal to procure six indigenously manufactured next-generation offshore patrol vessels (NGOPVs) for the Navy at a cost of Rs 4,941 crore, officials said.
Reliance will be participating in the offset program through Dassault Reliance Aerospace Ltd (DRAL) in which Dassault holds a 49 per cent stake bringing in its 90 years of aerospace manufacturing experience, making it the "most qualified vendor".
Vinod Jolly, the vice president of Federation of MSME Vendors and Defence and Aerospace, said the MSMEs provide vital supplies of parts to ordnance factories and every year before March orders are placed for the next financial year.
Addressing a press conference in New Delhi, Defence Minister Nirmala Sitharaman said India had honoured its 2003 agreement with the neighbouring country, but the Army reserved the right to retaliate to an unprovoked attack.