Larsen & Toubro (L&T) has been awarded a contract valued at Rs 14.32 billion by the ministry of defence for the design and construction of seven Offshore Patrol Vessels (OPVs) for the Indian Coast Guard (ICG). The contract is part of the government's initiative to strengthen India's coastal security.

OPVs under the project are long range surface ships, capable of operation in maritime zones of India, including island territories with helicopter operational capabilities. Their roles include coastal and offshore patrolling, policing maritime zones of India, control and surveillance, anti-smuggling and anti-piracy with limited wartime roles.

In keeping with government's 'Make in India' focus, complete design and engineering of OPVs is planned to be undertaken in-house at L&T's Warship Design Centre. The first OPV under the project is scheduled to be delivered within 36 months from signing of the contract. Subsequent OPVs shall be delivered at six months interval.

L&T is already executing MoD contracts for design and construction of 54 fast Interceptor Boats (IBs) for the Indian Coast Guard. 25 IBs have already been delivered so far to ICG with the latest boat having been delivered 23 months ahead of schedule. L&T is targeting to complete delivery of all boats far ahead of schedule. With contracts for 54 IBs and 7 OPVs, L&T is positioned as the largest supplier of patrol vessels to the Indian Coast Guard.

Shares of the company declined Rs 3.2, or 0.19%, to trade at Rs 1,725. The total volume of shares traded was 119,329 at the BSE (2.46 p.m., Tuesday).