Rolls-Royce has inked a pact with Garden Reach Shipbuilders & Engineers (GRSE) under which the former's MTU Series 4000 engines will be assembled at GRSE's Ranchi facility and later installed in naval vessels.
As per the agreement, Rolls-Royce's 12V and 16V 4000 M90 type engines will be assembled in GRSE's diesel engine plant in Ranchi.
An option for the local production of parts in the future was also agreed, Rolls Royce said in a statement.
Besides, the agreement includes the transfer of MTU technology related to assembly, testing and painting.
"This agreement strengthens our long-standing and successful partnership with MTU. It is an important contribution to our indigenisation programme in line with the government's Make in India strategy," GRSE CMD Rear Admiral (ret.) V K Saxena said.
Under the partnership, the PSU plans to achieve 40% indigenous content progressively for MTU 4000 series engines, he added.
MTU India CEO Praveen Mohan said the company is delighted to continue and deepen its co-operation with GRSE.
"India is one of the most important growth markets for MTU," he added.
MTU and GRSE have a long-standing relationship spanning over three decades, which started with the assembly of MTU Series 538 and 396 engines in Ranchi.
The now agreed pact for final assembly of such engines is significantly more complex than the work done previously.