The highly-classified nuclear submarine project has already started and was coming up well, the sources said adding that the designs had been finalised and Rs 30 crore already allotted for the project this year.

They said the Government will decide whether these nuclear-propelled submarines, capable of carrying nuclear weapons, would actually do so.

Besides this project, several other major projects were underway including Project 75 at Mazgaon docks to initially produce two submarines in five years for which required money had already been sanctioned. The letter of intent for this project was issued in 1996.

Three most-modern frigates, dubbed as "frigates for the next century" with highly sophisticated and potent weapon systems onboard, were being produced under Project 17, they said and expressed hope that `Brahmaputra' class warships being produced in Calcutta dockyard would be commissioned by this December.

While several warships and vessels were being de-commissioned in the recent days, the newer ones were far more versatile, flexible and potent, the sources said.

They said Delhi, Brahmaputra and Kora (corvette) class ships being inducted or produced by the Navy were capable of carrying 16 surface-to-surface missile launchers.

"We have to see that we do not lose on the firepower of our ships," they said.

Replying to questions on acquisition of Russian aircraft carrier "Admiral Gorshkov", the sources said talks were held with a Russian team here recently and a "few technical aspects" still remained to be tied up.

On production of Naval missiles, they said there were several programmes which were in the pipeline and would fructify in the coming days.

The sources said the Navy intended to invest mostly on militaryhardware to sharpen its "teeth" and maximise its firepower and strike capabilities.

Replying to questions on the Indian Naval build-up during the Kargil operations, the sources said sea harriers of the Indian Navy, with vertical take-off and landing capabilities, could have been used with formidable damage to the enemy during these operations.

Modified oil tankers could also be used by these aircraft for operations, they said adding the US marines had used the `AV-8a' version during the Gulf war and other operations in West Asia.