The competition to construct stealth submarines for India’s flagship naval initiative, Project 75(I), has intensified, marked by South Korea’s withdrawal and the determined efforts of Germany and Spain. Spain’s Defence Secretary, Amparo Valcárcel, is set to visit Delhi, next week (March 7-8) showcasing Navantia’s readiness to contribute to the project under Make in India.
With a budget of approximately US$5.27 billion, the project aims to produce six stealth submarines equipped with Air Independent Propulsion (AIP) technology, enabling prolonged underwater operations.
Despite initial interest from multiple OEMs, dwindling participation has left Germany and Spain as the primary contenders. As discussions unfold, whether the project will align with Germany’s Thyssenkrupp Marine Systems (TKMS) or Spain’s Navantia remains uncertain.
Delays and uncertainties have plagued Project 75(I), attributed to technical and legal hurdles, including specifications regarding AIP modules and liability concerns. However, recent diplomatic engagements, including Defence Secretary Giridhar Aramane’s visit to Germany, indicate ongoing efforts to propel the project forward, potentially through collaboration between Indian shipyards and international partners.
As reported previously by Financial Express Online, the Ministry of Defence has directed Mumbai-based Mazagon Dockyard Limited (MDL) and L&T Company to enter into an agreement with a foreign OEM (Original Equipment Manufacturer). These special submarines, being equipped with Air Independent Propulsion (API) technology, can operate under the sea for a long time.
Five OEMs were identified initially for building these submarines with the most critical component API here in India in collaboration with the two shipyards which were identified. However, over a period of time Russia, and France (Naval Group) withdrew from the race. That left South Korea, Spain and Germany in the fray.
Who all responded to the EoI in 2020?
South Korean company Daewoo Shipbuilding & Marine Engineering pitched the KSS-3 submarine.
The Naval Group of France which is already involved in the `Scorpene’ submarine under Project-75.
Navantia of Spain offered S-80 (Issac Peral class);
TKMS of Germany — Type 218 (Invincible Class).
Rosboronexport of Russia for the Amur.
South Korea Pulls out of the race
On Wednesday, South Korea’s Ambassador to India Chang Jae Bok, confirmed that his country’s Hanwha Defence and Aerospace Company (formerly Daewoo Shipyard) has also “decided to withdraw from the project due to some reasons.”
Next month, foreign ministers of both India and South Korea will meet in Seoul and the focus of talks will be on enhancing cooperation in defence production as well as in trade and economics.
Meanwhile …
Interestingly, India’s Defence Secretary Giridhar Aramane is visiting Germany during the visit he had a special discussion with his German counterpart Benedikt Zimmer regarding cooperation on high-technology in the defence sector.
Apart from this, Aramane also met separately with top representatives of German defence companies (Feb 27-28).
Significance of the visit to Germany
Germany’s Thyssenkrupp Marine Systems (TKMS) and MDL are likely to join hands for the building of submarines here in India. This is the only company in the world which has an operational AIP that the submarines need.
However, the question remains: Is it going to Spain or Germany?
Financial Express Online has reported earlier that the German company is one of the contenders for the six advanced diesel-electric submarines under Project-75I, the Request for Proposal (RfP) for which was extended until August in 2023.
The Project 75 (I) has been stuck for a long time due to technical and legal issues related to the RfP that was issued by the Ministry of Defence in 2021.
During the visit of the German Chancellor Olaf Scholz earlier in February 2023, the proposal for the submarines through government-to-government route was discussed.
Background
Back in early 2020 the Defence Acquisition Council (DAC) had shortlisted two Indian partners for the Project 75 (I) — MDL and Larsen & Toubro (L&T). These were the first to be processed under the Strategic Partnership (SP) model of the Defence Procurement Procedure (DPP).
The RfP for the six submarines was issued way back in July 2021 to two Indian companies which were identified – MDL and L&T. These two Indian companies were given 12 weeks to respond. However, since then it has been extended several times and as of now the last date to respond to the tender was in August 2023.
What led to the delay and uncertainty?
Indian Navy’s Project 75 (I) has run into problems due to several issues including a specification as mentioned in the RfP related to the Air Independent Propulsion (AIP) module. It has been specified that the foreign company bidding for the project should have an operational AIP with an endurance of two weeks.
According to sources, “The German company TKMS decided to team up with the Indian shipyard MDL and once the deal is firmed up through Intergovernmental Agreement the German company will transfer technology to build the submarines here in India.”
