The Indian Navy is negotiating with Atlas Elektroniks for the supply of active towed away sonars (ACTAS) for warship installation.
Press Trust of India (PTI) cited company official as saying that the formalities for the contact are almost over and signing is expected soon.
Under the contract, if signed, Atlas Elektroniks will deliver ACTAS low frequency sonar systems for Indian Navy's six warships.
Featuring active as well as passive operating system, the sonars will enable the ships to detect enemy submarines, warships and torpedoes from a long range and launch attacks.
In partnership with Bharat Electronics under transfer of technology clause, Atlas Elektroniks is likely to develop more ACTAS systems later in India.
Due to the sinking of a Russian Kilo class submarine off the Mumbai coast in August, the Indian Navy has been seeking various possibilities to develop its capabilities.
Capable of operating in deep as well as shallow waters, the ACTAS will complement the ship's anti-submarine warfare capability and allow variable depth operations, according to sources.
Sources said: "As India's fleet of submarines is barely modest and it will take many years before their numbers see any increase, fitting warships with latest ASW is the next best thing to do."
Company sources said the sonar features automatic torpedo warning technology, which works continuously in the background and automatically generates alerts.
The Indian Navy operates 14 submarines, of which 10 are Russian and others were supplied by HDW, a Germany-based company.
Currently, Atlas is modernising over 64 SUT torpedoes as part of an approximately €60m contract.
Image: Indian Navy's Talwar-class ship conducting mission at sea. Photo: courtesy of indiannavy.nic.in.