SN Subrahmanyan, Chairman, CEO, and Managing Director of Larsen And Toubro (L&T), an Indian Multinational Conglomerate with a wide range of services such as Industrial Technology, Heavy Industry, Engineering, Construction, Manufacturing, etc, India’s largest manufacturing and 12th-most valued company, Was in trend because of his controversial remark on work-life balance, and he has lost a ₹70,000 crore deal to acquire 6 submarines.
Let’s find out the controversy, the tender deal details, why L&T lost the deal, and who secured the deal if not L&T.
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L&T CEO SN Subrahmanyan Remark on Work-Life Balance.
Industrialists who possess a billion-dollar company keep giving statements on work-life balance which gets to be controversial, as it doesn’t favour the employees. L&T CEO SN Subrahmanyan also has given a statement that dragged both him and his company into the controversy.
SN Subrahmanyan stated, “Employees must work 90 hours a week, even on Sundays, to compete with other nations. Subrahmanyan said he regretted that he wasn’t able to make L&T employees work on Sundays because he does so himself”
” “What do you do sitting at home? How long can you stare at your wife? How long can the wives stare at their husbands? Get to the office and start working.”, He further added.
Why L&T Lose the ₹70,000 Cr Tender of 6 Submarines?
Under Project 75 India, the Indian navy wants to buy six advanced submarines that can stay underwater for three weeks. Larsen and Toubro (L&T) submitted its proposal with Spanish Navantia to secure this extravagant tender, but it couldn’t because The Defence Ministry found that the Indian firm Larsen and Toubro (L&T) bid was non-compliant in the ₹70,000 crore tender for the acquisition of 6 submarines.
According to news agency ANI, the Defence Ministry rejected L&T’s proposal in partnership with Spanish Navantia because it was not compliant with Indian Navy requirements.
The infra major showed the Indian Navy how their air-independent propulsion system was functioning in Spain. However, officials demanded a sea-proven system, as required in the tender document, reported Mint.
Who will leverage the tender if it is not L&T?
Failure of L&T leaves only one key player in the race to make submarines: Mazagaon Dock Shipbuilders and its partner ThyssenKrupp Marine System of Germany. Mazagaon Dock Shipbuilders Ltd said in a stock exchange filing on Thursday that its field trials for the submarine project were successful, and the defense ministry had invited the company for commercial negotiation next week.
Vendors involved in the program have been making representations to the government. The Defence Ministry has been moving ahead per project procedures and has vetted the process at all levels. Suggestions have also been made to the concerned officials about dividing the project equally between the shipyards, reported Mint news firm.
Reportedly, The Mazagaon Dock Shipbuilders team Ltd recently supplied the last of the six Project 75 Scorpene class submarine INS Vagsheer to the Indian Navy but is going to get orders for three more submarines under Project 75 (Additional Submarine) to be built with French Naval Group support.
Vendors involved in the program have been making representations to the government and the Defence Ministry has been moving ahead as per procedures in the project and have vetted the process at all levels. There have also been suggestions made to the officials concerned to equally divide the project between the shipyards, reported India.com news firm.
Against the backdrop of the fast modernization of the Chinese Navy, the Indian government has also cleared many submarine projects, including both nuclear and conventional ones. However, India has to catch up quickly to develop the desired capabilities to tackle both China and Pakistan in its area of interest, according to the Mint report.
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