Mumbai: Three state-run companies— Bharat Heavy Electricals Ltd (Bhel), Mishra Dhatu Nigam Ltd and Hindustan Shipyard Ltd—have come together to form a consortium for building submarines indigenously.

The consortium will jointly stake claim with the ministry of defence for being considered as a prospective bidder for the proposed P-75 (I) project of the Indian Navy for building six submarines at a local shipyard.

In a statement, Bhel said a memorandum of understanding was signed among the three firms on 26 December.

The Indian government has decided to build six submarines locally at a cost of about ₹ 50,000 crore.

Bhel has five decades of experience in design, development and manufacture of a variety of equipment for crucial infrastructure sectors, while Hindustan Shipyard is engaged in shipbuilding, repairs and submarine retrofitting.

Mishra Dhatu is another defence PSU engaged in development and manufacture of alloys and special-purpose steel for applications in defence, aerospace and atomic energy.

At 11.50am, Bhel was trading at ₹ 257.50 per share, up 1.18%. The benchmark Sensex was trading at 27,373, down 0.08%.

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