Germany is offering next-generation submarines to India, worth a $5.2 billion deal to jointly build six conventional submarines. While there is no official confirmation, the talks over the submarine took place during Chancellor Olaf Scholz’s visit, it is learnt.

Germany’s offer to India is a significant change from its earlier approach where Germany sought clarification on the joint manufacturing of submarines.

Germany’s ThyssenKrupp Marine Systems (TKMS) is one of two international bidders for the proposed submarine project. In 2021, the Ministry of Defence (MoD) issued Request for Proposal (RFP) for the first acquisition programme under the Strategic Partnership model for the construction of six conventional submarines named Project 75(India) [P-75(I)] for the Indian Navy. The key element of the strategic partnership is based on the specific technology—the Air Independent Propulsion System (AIP).

The RFP was issued to shortlisted Strategic Partners (SPs) or Indian Applicant Companies for the project viz, Mazagaon Dock Shipbuilders Limited (MDL) and Larsen & Toubro (L&T). The project cost is over Rs 40,000 crore. The RFP conditions that a foreign submarine manufacturer will have to partner with an Indian company to design, develop and build six submarines in India.

The ambitious Project-75(I) also proposes the plan for the indigenous construction of six conventional submarines, including associated shore support, engineering support package, training and spares package with contemporary equipment, weapons & sensors. Apart from the AIP Systems, the P-75 (I) must have advanced missile systems and torpedoes.

It is learnt that India has asked Germany for the full transfer of technologies (ToTs) for the submarines which is about sharing the full spectrum of submarine manufacturing from the design stage to development.

“The submarine project is a definitive attempt by Germany to collaborate with India on strategic technologies,” said a German diplomat who is part of the visit.

Recently, Navy Chief Admiral R Hari Kumar also highlighted the capability gaps, especially on the P-75(India). Since the project is yet to take off under the strategic partnership model, the process for Project 75I for building next-generation submarines will be through by the next year, he said.

The delay over the submarine project is also posing a serious challenge for the Indian navy to address China’s constant maritime expansionism in the IOR. The Indian navy is grappling to maintain its operational capability in the region and beyond in the Indo-Pacific with depleting numbers of submarines.  

India has fifteen conventional and one nuclear submarine. However, most of the submarines need replacement. According to the naval perspective plan, the navy needs twenty-four submarines by 2030.