According to one estimate, the Indian defence establishment may place orders worth $247 billion in the next four years.

Many Indian companies, ranging from already experienced ones in the sector like L&T and Pipavav Defence to others like Tatas and Mahindras are vying to grab these contracts.

Indian companies and foreign firms may show interest in the construction of warships at the private yard. Pipavav is working to build warships like frigates, destroyers and aircraft carriers taking the advantage of its mammoth dry docks which is second largest in the world.

For building warships, Pipavav became the first company in the country to receive the licence and contract. It is also the first private company to form joint venture with the state owned naval defence major Mazagon Dock. This JV will now bid for orders with other private companies from Indian Navy and coast guard.

The recently announced FDI policy for defence is also expected to generate lot of interest among the investors globally, though 49 percent FDI is subject to approval by Cabinet Committee on Security. Global private sector companies get a lot of support from their own governments.

Pipavav produces navy patrol vessel - fitted with 76 mm guns, while L&T is closely associated to build INS Arihant – India's first nuclear powered submarine.