Warship Frigate INS Teg (F45) of Indian Navy on Elbe river, near Hamburg, Hamburg, Germany.
INS Teg, a Talwar class stealth frigate, of the Indian Navy on Elbe river, near Hamburg, Germany.GETTY IMAGES

India has signed a $500 million contract to build two stealth frigates. The proposed frigates are likely to be manufactured in Goa and are expected to be inducted in the Indian Navy by 2027.

Hindustan Times reported that India's Goa Shipyard Limited (GSL) and Russia's state-owned arms exporter Rosoboronexport have entered into an agreement to manufacture the Grigorovich-class 'Project 1135.6' frigates with the complete technology transfer from Russia.

Earlier, there were media reports that India will sign four stealth frigates for the Indian Navy which will be entirely manufactured in India. It is to be noted that the two countries closed the deal just after two weeks when they countries signed a nearly $1 billion deal to import two other such warships from Russia. These ships are being manufactured at the Yantar Shipyard in Kaliningrad and Indian Navy is expecting a delivery by 2022-23 and post trails it would be inducted.

One of the government officials told that the amount of $500 million is just the upfront value of the deal and the eventual cost is expected to further go up. He said that "the $500 million is for the foreign content in the vessels including material, design and specialist assistance. The frigates will cost more factoring in the indigenous content. That cost is being worked out.'' With the current capabilities, GSL is likely to deliver the first frigate in 2026 and the other one would be delivered the following year.

Last month, India and Russia had signed Rs 39,000 crore deal for the supply of Russian S-400 Triumf air defence missile systems. The Trump administration had raised its apprehensions against the deal as S-400 Triumf air defence missile system claimed to have the only missile that can intercept F-35 Aircraft of the US Air Force and Navy. Now both deals may get affected if India fails to secure a waiver from US sanctions. India is deliberating with the US authorities, seeking a waiver from the Countering America's Adversaries through Sanctions Act (Caatsa).