New Delhi, Feb 1 (IANS): The Defence Acquisition Council (DAC) on Thursday approved indigenous construction of six Project 75(I) submarines for the Indian Navy at a cost of Rs 40,000 crore under the Strategic Partnership (SP) model.

"The construction of six submarines under Project 75(I) will provide a major boost to the existing submarine design and manufacturing eco-system in India through transfer of design and equipment technology as well as necessary skill sets," a Defence Ministry spokesman said.

The Project 75(I) refers to the project under which the Indian Navy intends to acquire six diesel-electric submarines with advanced air-independent propulsion (AIP) systems to enable them to stay under water for longer duration. This capability would significantly increase their operational range.

This is second project under the SP model that aims at providing a fillip to the government's "Make in India" programme.

The model envisages indigenous manufacturing of major defence platforms by an Indian strategic partner, who will collaborate with foreign OEM (original equipment manufacturers) to set up production facilities in the country.

The latest approval is the second such project following indigenous production of 111 Naval Utility Helicopters that was approved in August 2018.

In a separate development, the DAC also approved the acquisition of around 5,000 Milan anti-tank guided missiles for the Army.