As German Chancellor Olaf Scholz prepares for his visit to India later this month, accompanied by a high-ranking ministerial delegation and industry representatives, including the CEO of ThyssenKrupp Marine Systems (TKMS), the Indian Navy is in the final stages of evaluating bids for its much-anticipated Project 75 India (P75I).
As reported previously by Financial Express Online this project involves the construction of six conventional diesel-electric submarines, equipped with cutting-edge Air Independent Propulsion Systems (AIP).
A Key Decision on the Horizon
The decision regarding the P75I project is expected to coincide with the Chancellor’s visit, though no formal agreement will likely be signed during the Inter-Governmental Consultations (IGC). Nevertheless, the German delegation is expected to receive updates on the progress of the selection process. According to defence sources, the Indian Navy is set to recommend the joint bid between the state-run Mazagon Dock Shipbuilders Limited (MDL) and German naval giant TKMS. The final report from the Field Evaluation Trial (FET) conducted by the Indian Navy will soon be sent to the Ministry of Defence, setting the stage for further negotiations.
Germany’s Bid: A Strong Contender
TKMS, in collaboration with MDL, has positioned itself as a strong contender in this competition. P75I is the first submarine project under India’s strategic partnership model, with MDL and Larsen & Toubro (L&T) being the two shortlisted Indian companies. Both firms were invited to submit proposals in collaboration with their respective foreign partners, with TKMS working alongside MDL and Spain’s Navantia partnering with L&T.
One of the most significant factors placing TKMS ahead is the proven performance of its AIP technology. The FET conducted by the Indian Navy required the AIP to be tested onboard a submarine at sea. While TKMS successfully demonstrated its AIP technology, Navantia’s submarine with AIP is not expected to be operational until 2026. This gives TKMS a significant edge, as the Indian Navy has been clear about its preference for a proven, sea-tested AIP system.
The Importance of Proven AIP Technology
The need for a proven AIP system cannot be overstated, as it is crucial for enhancing the submarine’s stealth and operational capabilities. The Indian Navy has specified that the AIP must be safe, reliable, and fully functional to avoid the risk of delays, cost overruns, and integration challenges. A senior source explained, “The requirement of a sea-proven AIP assumes significance since, unless sea-proven, safe and reliable for its designed functionality, the AIP system will expose the programme to significant technical and operational risks.”
TKMS’s fuel-cell-based AIP technology, combined with lithium-ion batteries, fits this requirement perfectly. In contrast, Navantia’s delay in operationalizing their AIP submarine has created doubts about the readiness of their technology for India’s immediate needs. This technical advantage, along with the longstanding relationship between India and Germany in naval technology, strengthens TKMS’s bid.
A Stealthy Future for India’s Submarine Fleet
The submarines to be built under the P75I project will feature advanced stealth capabilities, differing from the current models in the Indian Navy’s arsenal. The transfer of design from the foreign collaborator to the Indian shipbuilder is a key aspect of the deal, ensuring that India gains the expertise required for indigenous submarine production in the future.
The first submarine is expected to be delivered seven years after the contract is signed. Although this timeline places the earliest delivery around 2031, once the production line is established, additional submarines are expected to be delivered annually. By the time the fourth submarine is constructed, 60% of its components will be sourced from within India, up from 45% for the first.
The Long Road to Modernization
Project 75I is a critical part of India’s long-delayed 30-year submarine-building plan, which originally envisioned the construction of 24 conventional submarines. Under Prime Minister Narendra Modi’s administration, this plan was revised to focus on building 18 conventional and six nuclear-powered submarines (SSNs), aimed at countering the growing naval capabilities of China and Pakistan.
India’s current fleet consists of 16 conventional submarines, including five French Scorpene-class vessels, four German HDW-class submarines, and seven Russian Kilo-class submarines. However, sources emphasize that operational availability remains a challenge, with only the newer Scorpene-class submarines consistently available for deployment. The aging Kilo-class submarines, which were commissioned in the 1980s, are approaching the end of their operational lifespan despite undergoing upgrades. In contrast, the German HDW submarines, renowned for their reliability, are expected to remain operational for another 10 to 15 years.
A Strategic Partnership
The P75I project’s strategic partnership model emphasizes collaboration between Indian and foreign companies, with the aim of boosting domestic shipbuilding capabilities. TKMS and MDL’s strong partnership positions them favorably, especially considering Germany’s longstanding expertise in submarine design and construction. The German government is also keen to finalize the deal through a government-to-government agreement, underscoring the importance of this project in strengthening bilateral ties.
Although the final decision is yet to be made, all signs point to TKMS’s joint bid with MDL being the frontrunner. The proven performance of TKMS’s AIP technology, combined with the strategic alignment between India and Germany, positions this partnership as the most viable option for modernizing India’s submarine fleet.