The Indian and German governments discussed the deal at the highest level during the visit of German Defence Minister Boris Pistorius in June 2023, when the latter made a strong pitch in favour of the Thyssenkrupp Marine Systems bid.
According to diplomatic sources, Germany has presented a proposal for the sale of six advanced conventional submarines to India for the Navy’s P-75I procurement program. A senior German delegation was recently in Delhi to further discuss the matter.
“The senior officials were here two weeks back. They had good talks in order to move the process forward,” diplomatic sources in the know said, without elaborating. It’s estimated to cost up to Rs 45,000 crore and is in a tight race between Germany and Spain.
During the visit of German Defence Minister Boris Pistorius to India in June 2023, when he made a powerful pitch for Thyssenkrupp Marine Systems (TKMS) during his discussions with Defence Minister Rajnath Singh, the deal was discussed at the highest level. The submarine deal could be a “flagship project” between the two countries, according to Mr. Pistorius.
Under the P-75I deadline, only Germany and Spain meet the technical requirements to submit bids. The deadline was extended several times before finally culminating in July 2023. The defence procurement procedure is governed by the strategic partnership procedure. A technology transfer agreement has been signed between Mazagon Dock Shipbuilders Limited (MDL) and Larsen & Toubro (L&T) Limited to manufacture six advanced conventional submarines in India in partnership with foreign submarine manufacturers.
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TKMS, which was initially in discussion with L&T about partnering under P-75I, has recently teamed up with MDL to bid for the contract. Subsequently, L&T and Spanish submarine manufacturer Navantia have concluded a ‘teaming agreement’ to bid jointly for the contract. Based on the understanding, Navantia will design the P75I submarines based on its S80 submarine class, of which the first submarine was launched in 2021 and delivered to the Spanish Navy in November 2023, while L&T will construct the submarines. According to officials, both bids have been submitted and are currently undergoing evaluation.
India provided the German government with a list of spare parts and components for export under a BAFA (Federal Office for Economic Affairs and Export Control) clearance. Germany’s sporadic export clearances have raised concerns.
Besides the issue of whether the submarine should have an AIP module with a two-week endurance, the P-75I process encountered a number of challenges. Defense Acquisition Council has addressed some of the issues related to manufacturers’ unlimited liability. As a result of the AIP condition, only two manufacturers remained.
In addition to increasing endurance and reducing detection chances, AIP modules enable conventional submarines to stay submerged for longer periods of time. An indigenously developed AIP module will be installed on Scorpene submarines later this year.
