In a meeting of the Defence Acquisition Council chaired by Defence Minister Manohar Parrikar, the government also cleared acquisition of 38 Pilatus aircraft.
Sources from the defence ministry said the manufacture of the 12 MCMV (Mine Counter-Measures Vessel) will have Goa Shipyard Limited (GSL) as the lead agency.
“The whole process will be started from scratch. The vessels will be made on India,” an official said.
He added that there could be foreign partners in the project.
The other major project cleared was for buying 38 Pilatus aircraft for training pilots.
India has already acquired 75 Pilatus aircraft against a projected requirement of 181 planes. Sources said the rest of the requirement will be met by HTT40 (Hindustan Turbo Trainer-40) aircraft manufactured by Hindustan Aeronautics Limited (HAL).