NEW DELHI — In a major win for the Indian warship building industry, India's state-run Garden Reach Shipbuilders & Engineers (GRSE) Ltd has emerged as the winner for Philippine Navy's big-ticket modernization program.

GRSE was the lowest bidder to supply two light frigates and hopes to seal the contract worth more than $321 million in the next two months, said one GRSE official.

The other two bidders Daewoo Shipbuilding & Marine Engineering Co. Ltd.

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South Korea; and Navantia S.A. of Spain did not quality the tender.

A total of four firms joined the bidding for the Philippine Navy project: GRSE; Hyundai Heavy Industries Inc. and Daewoo Shipbuilding & Marine Engineering Co. Ltd., both from South Korea; and Navantia S.A. of Spain.

GRSE, administered by the Indian Ministry of Defence, has built 95 warships, including frigates, corvettes and fast patrol boats, since 1960.

GRSE's light frigate will be a design based on the Indian Navy's Kamorta-class anti-submarine corvette and will be capable of withstanding Sea State 7, which means it can withstand a wave height of up to 9 meters.

The Sea State 7 category of the GRSE-made light frigate will improve the survivability of the ship in bad weather, as well as improving its sea-keeping capability, claimed GRSE official.

The 2,000-tonne frigate will be 95 meters long, have a combined diesel and diesel (CODAD) configuration propulsion system and be able to work in an area contaminated with nuclear, biological, and chemical agents.

In addition, it will have a tactical data link and radio capable of tactical communication. The frigates will have 76mm naval guns and fire control radar with a built-in electro-optical tracking system integrated into the Combat Management System (CMS).

The state-owned Goa Shipyard is also building two OPVs for the Sri Lankan Navy under India's government-to-government exchange agreement with Sri Lanka. First OPV will be delivered by end of this year and second OPV by middle of next year.