IIT-Madras Startup AstraYAN Outbids Global Firms for GRSE Warship Propulsion Contract

AstraYAN, an IIT-Madras-incubated deep-tech startup, has emerged as the L1 bidder for a Propulsion System Integration (PSI) tender. The contract is for five indigenous Next Generation Corvettes (NGCs) that Garden Reach Shipbuilders & Engineers Ltd (GRSE) is manufacturing for the Indian Navy as part of a ₹32,000 crore project.

A senior official from AstraYAN Private Ltd stated that the 15-member startup outbid major global competitors from Italy and Germany to secure the L1 position for integrating the advanced Combined Diesel and Gas Turbine–Cross-Connect (CODAG-CC) propulsion system.

The bid will now move into a price negotiation stage, expected to last at least a month, before final contract closure with the defence public sector undertaking GRSE. AstraYAN noted that it is the first Indian company to reach this technological milestone with a small team.

The propulsion architecture is intended to support versatile frontline combat operations. The NGCs are designed for a range of maritime missions, including offensive ship-to-ship and ship-to-surface missile attacks, anti-missile defence, anti-submarine warfare, escort duties, and maritime interdiction operations.

This contracting process follows the Ministry of Defence signing deals worth ₹53,866.5 crore with GRSE and Goa Shipyard Ltd (GSL) for a total of eight NGCs—five assigned to GRSE and three to GSL. According to the company's chief operating officer, AstraYAN also intends to pursue similar PSI contracts for the three NGCs assigned to GSL.

The selection process lasted over a year and initially involved five global participants from Italy, Spain, and Germany. Technical evaluation was conducted by the Indian Navy, the Naval Science & Technological Laboratory (NSTL) under the DRDO, and the shipyards. Following technical and commercial evaluations, three firms from Germany and Italy remained, with the Chennai-based startup ultimately declared L1.

The corvettes will measure 127 metres in length, 17.6 metres in beam, and have a deadweight tonnage of 4,950 tonnes. The vessels are specified to have an endurance of 14 days at sea without replenishment and a maximum speed of 26 knots.

"AstraYAN securing the L1 position against established global players demonstrates the technical capabilities emerging from India's deep-tech incubation ecosystem. Managing complex defence contracts with a lean team of fifteen highlights how specialized engineering startups can successfully enter high-value public sector supply chains. The upcoming price negotiations and potential expansion to other shipyard projects will be crucial milestones for the company's operational scaling." — Dr. Shishir Gupta, Founder & CEO, StartupLanes