The Ministry of Defence has signed two contracts, worth approximately Rs 2,867 crore, for the construction of an Air Independent Propulsion (AIP) Plug for the DRDO-AIP system and its integration onboard Indian Submarines, and the integration of Electronic Heavy Weight Torpedo (EHWT) onboard the Kalvari-Class submarines, a press release said.
Both the contracts were signed in the presence of Defence Secretary Rajesh Kumar Singh in New Delhi 

According to the Ministry of Defence, the contract for the construction of AIP Plug and its integration was inked with Mazagon Dock Shipbuilders Limited (MDL), Mumbai worth around Rs 1,990 crore, while the contract for integration of EHWT, being developed by DRDO, was signed with Naval Group, France at an approximate cost of Rs 877 crore.
The AIP technology is being indigenously developed by DRDO. The project about the construction of AIP-Plug and its integration will enhance the endurance of conventional submarines and significantly contribute towards the ‘Aatmanirbhar Bharat’ initiative.
It would generate employment of nearly three lakh man days. The integration of EHWT will be a collaborative effort by the Indian Navy, DRDO and Naval Group, France. It would greatly augment the firepower capabilities of Kalvari Class submarines of the Indian Navy.