Centre Gives Clearance To Defence Ministry, MDL To Begin Negotiations For ₹70,000 Crore Submarine Deal

The Indian government has given a major boost to its submarine acquisition and indigenous defence manufacturing initiatives by clearing the Defence Ministry and Mazagon Dock Shipbuilders Limited (MDL) to formally begin contract negotiations with Germany’s ThyssenKrupp Marine Systems (TKMS) for the construction of six advanced submarines under the ambitious Project-75 India (P-75I) program.

Valued at approximately ₹70,000 crore, this project represents one of the largest defence acquisition programs in India’s history and a strategically significant step in strengthening the country’s maritime capabilities in the face of increasing challenges in the Indo-Pacific region.

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This long-delayed program had been in limbo for the past six months due to procedural clearances, but following a high-level meeting involving senior defence and national security officials, the go-ahead was granted.

The Ministry of Defence (MoD) had earlier selected MDL, India’s premier state-owned shipbuilding yard, as the official partner to construct the submarines in collaboration with ThyssenKrupp. The German defence major will provide crucial technology, particularly in the domain of Air Independent Propulsion (AIP) systems.

These AIP systems are designed to significantly extend the underwater endurance of conventional diesel-electric submarines, enabling them to remain submerged for up to three weeks without surfacing, thereby enhancing their stealth and survivability in contested waters.

The decision is strategically important given the rapidly shifting naval balance in Asia. China’s People’s Liberation Army Navy (PLAN) has been expanding at an unprecedented pace, with both nuclear and conventional submarine fleets witnessing exponential growth. Similarly, Pakistan, with Chinese support, is modernising its submarine arsenal, compounding India’s regional security concerns.

Against this backdrop, India’s current submarine force of 16 conventional boats—many of which are ageing and nearing the end of their operational life—requires urgent replenishment. In fact, the Indian Navy anticipates that about 10 of its submarines will be phased out over the next decade, necessitating timely replacements to maintain operational strength. The six new P-75I submarines, with cutting-edge German AIP integration, will thus be crucial in closing this capability gap.

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The Defence Ministry reportedly expects negotiations with TKMS and MDL to reach conclusion within the next six months, followed by final approval and contract signing. Once finalised, the project will take several years to fully execute, but it is seen as a cornerstone initiative for India’s larger Atmanirbhar Bharat (self-reliant India) program in defence manufacturing.

A major objective of the project is not just acquisition but also indigenous capability development, enabling Indian shipyards, engineers, and industry partners to acquire the expertise to design, build, and maintain advanced submarines domestically. This approach is aimed at reducing India’s historical reliance on foreign suppliers for critical defence platforms.

In addition to the conventional submarine effort under P-75I, India is simultaneously pushing forward on a parallel track with plans for nuclear-powered attack submarines (SSNs). The program envisages building at least two indigenous nuclear attack submarines, with the Submarine Building Centre (SBC) and leading private-sector giant Larsen & Toubro (L&T) playing critical roles in design and execution.

Nuclear-powered submarines would lend the Indian Navy strategic depth by providing unlimited underwater endurance, higher speeds, and wider operational capabilities compared to conventional boats. This twin-track approach of building both nuclear and AIP-powered conventional submarines is aimed at ensuring a balanced and versatile fleet capable of dealing with diverse maritime challenges.

Another key dimension under active discussion at the policy level is accelerating the submarine-building pipeline. Historically, India’s delay in procurement and long-drawn acquisition processes have slowed military modernisation. By clearing negotiations at such a high level, the government is signalling its intent to address delays and ensure that production begins at the earliest.

The upcoming contract will include not just submarine construction but also the transfer of advanced technologies, localised spares manufacturing, and domestic ecosystem development—benefiting ancillary industries and adding to India’s long-term strategic autonomy.

In a regional context, Project-75I is viewed as a response to the shifting maritime security environment in the Indian Ocean and Western Pacific. Analysts have long noted that China’s expanding presence, through both surface combatants and submarine deployments in the Indian Ocean Region (IOR), poses a multi-dimensional challenge to India’s naval posture.

Pakistan, buoyed by Chinese support, is also upgrading its fleet with advanced diesel-electric submarines, adding to the two-front maritime risk for India. Therefore, the induction of new-generation stealthy and longer-endurance submarines under Project-75I is critical not just to replace obsolete platforms but also to expand the Navy’s reach and deterrence capability.

In conclusion, the clearance to begin negotiations for the ₹70,000 crore submarine deal marks a decisive step in India’s naval modernisation journey. The P-75I program, in partnership with Germany’s ThyssenKrupp, is expected to equip the Indian Navy with a highly capable submarine fleet that blends advanced foreign technology with indigenous shipbuilding capabilities.

Together with the parallel development of nuclear attack submarines involving L&T and the Submarine Building Centre, India is charting a comprehensive roadmap to strengthen its undersea deterrence and maintain credible superiority in its strategic maritime backyard.

Timely execution of this project will be pivotal, as delays could further strain India’s ability to keep pace with its adversaries’ naval modernisation efforts.

Based On ANI Report

Agency