The new AFSAC card will replace the existing paper based identity card for all Navy personnel, including dependents and ex-servicemen, it added.
The Mumbai-based company will develop a secure application to manage the access control devices, network devices and the AFSAC card through a data centre, it said.
"Scheduled to be implemented over the next two years, the project will ensure smooth issuance, handling, administration, management and life cycle support of AFSAC Cards on turnkey basis," it added.
Tech Mahindra President, India Business and Corporate Affairs Sujit Baksi said the order further cements the company's role as one of the leading system integrators globally.
"With our proven expertise in tech enablement and digital transformation, we look forward to collaborating with the Indian Navy in ramping up the national security infrastructure," he added.
Tech Mahindra is already working with entities like Coal India, India Ports Association, Kanpur Smart City and others.
Commodore Atul Kumar, Project Director, Indian Navy, said, "The security of Indian Naval establishments against unauthorized access, is a thrust area and the AFSAC Project will be an important step towards achieving this aim."