Asia PacificBusinessSea

India, Germany Closer to Inking $5.2 Billion Submarine Deal

Germany’s ThyssenKrupp AG and India’s Mazagon Dock Shipbuilders Limited (MDL) have signed a memorandum of understanding to jointly bid on constructing submarines for the Indian Navy.

ThyssenKrupp would provide engineering, design, and consultancy for the project, while MDL would construct and deliver the submarines, according to The Tribune.

The agreement was signed on Wednesday with German Defense Minister Boris Pistorius in attendance, who is on a two-day visit in India.

“This would be a big and important contract not only for German industry but also for India and the Indian-German strategic partnership,” Bloomberg quoted Pistorius as saying.

In a statement, he later said, “There are of course also other competitors,” adding that “the French are clearly also in the game.”

The Indian Navy has operated ThyssenKrupp submarines in the past, which is likely to give it an edge over its rivals to clinch the estimated $5.2 billion project.

Project P-75I

Under the P-75I project, India seeks to build six conventional submarines featuring air-independent propulsion (AIP) technology.

AIP technology allows conventional submarines to stay underwater for longer.

The project requires the original foreign equipment manufacturers to build the underwater vessels in India with “significant local content.”

Several foreign shipbuilders, including ThyssenKrupp, Russia’s Rubin Design Bureau, Spain’s Navantia, France’s Naval Group, and South Korea’s Daewoo Shipping & Marine Engineering, have shown interest in the project. 

However, the stipulation of AIP and a liability clause placing the onus of submarine performance on the foreign partner, despite being built in an Indian shipyard, have resulted in withdrawals.

West Eyes Portion of Indian Defense

The Indian Navy is left with only 16 submarines despite having a minimum requirement of 24, Bloomberg wrote. It added that 10 vessels are over 30 years old, nearing decommissioning.

According to the outlet, ThyssenKrupp’s renewed interest in the project coincides with the West’s attempt to wean India off its dependence on Russian arms following the start of the Ukraine war.

Only ThyssenKrupp and Daewoo are now left in the competition, according to The Hindu

Related Articles

Back to top button