Kirloskar Oil Engines Bags ₹270 Crore Order from Defence Ministry

The Indian Navy has signed a ₹270 crore agreement with Kirloskar Oil Engines Ltd (KOEL) for the design and development of a 6 MW medium-speed marine diesel engine. The project falls under the ‘Make-I’ category, where the government will fund 70% of the total cost. The engine will have over 50% indigenous content, as specified by the Ministry of Defence (MoD).

As of 10:43 AM on April 3, Kirloskar Oil Engines share price was trading at ₹761.55, a 4.44% up for the day, with a 26.14% gain over the past month and a 37.89% decline over the past six months.

Purpose and Application

The diesel engine developed under this deal will be used for main propulsion and power generation in Indian Navy and Coast Guard ships. In addition to the prototype, the project includes the detailed design of diesel engines ranging from 3MW to 10MW.

The deal was signed in Delhi in the presence of Secretary (Defence Production) Sanjeev Kumar and Vice Chief of Naval Staff Vice Admiral Krishna Swaminathan.

Shift from Imported Equipment

Until now, most high-capacity diesel engines for marine use have been imported from countries like Ukraine, the US, and the UK. The new project is aimed at reducing dependency on foreign Original Equipment Manufacturers (OEMs). This step is part of ongoing efforts to localise key technologies in the defence sector.

Context and Existing Upgrades

The Indian Navy is currently in the process of converting the steam propulsion systems on its vessels to diesel-based systems. For example, Cochin Shipyard Ltd began work in 2023 on upgrading INS Beas, a Brahmaputra-class frigate, with an imported 6MW Caterpillar diesel engine.

Defence Manufacturing under Make in India

As of March 24, 2025, a total of 145 projects have been initiated under the Make in India initiative, with participation from 171 industries. This includes:

• 40 government-funded Make-I projects
• 101 industry-funded Make-II projects
• 4 Make-III projects involving technology transfer

Conclusion

The agreement with Kirloskar Oil Engines is a step towards domestic production of marine diesel engines for defence use, contributing to the larger goal of building indigenous capacity in sectors.

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