Germany Pushes India For Government-to-Government Submarine Deal

Defense News ,India :- High-level discussions between Indian and German officials have taken place regarding a significant deal for the procurement of advanced conventional submarines. The talks were initiated during the visit of German Defence Minister Boris Pistorius to India in June 2023, where Thyssenkrupp Marine Systems (TKMS) presented a compelling bid. The German delegation recently visited Delhi to progress the negotiations.

Sources confirm that Germany has put forth a government-to-government proposal for the sale of six advanced conventional submarines to India under the Navy's P-75I procurement program. A senior German delegation held productive discussions in Delhi two weeks ago, aiming to advance the procurement process. The deal, valued at over ₹45,000 crore, is currently contested between Germany and Spain, with the process experiencing notable delays.

During Minister Pistorius's visit in June 2023, he advocated strongly for TKMS's bid in discussions with Indian Defence Minister Rajnath Singh, envisioning the submarine deal as a potential "flagship project" between the two nations.

The P-75I procurement process, operating under the 'strategic partnership' of the defence procurement procedure, has seen significant developments. Mazagon Dock Shipbuilders Limited (MDL) and Larsen & Toubro (L&T) Limited are shortlisted to collaborate with foreign submarine manufacturers for the in-country production of six advanced conventional submarines through technology transfer.

TKMS, initially in talks with L&T, has now partnered with MDL for the bid. Meanwhile, L&T and Spanish submarine manufacturer Navantia have entered into a 'teaming agreement' to jointly bid for the project. Navantia will handle the submarine design based on its S80 class, while L&T will be responsible for construction. Both bids are currently under evaluation.

India has raised concerns with Germany, urging the relaxation of licensing requirements for the export of spares and components. The Federal Office for Economic Affairs and Export Control (BAFA) clearance is integral to this, with a submitted list addressing the Indian concerns.

The P-75I process faced challenges, including specifications related to the submarine's 'Air-Independent Propulsion' (AIP) module with a two-week endurance. This condition, narrowing down the contenders to two manufacturers, has since been addressed by the Defence Acquisition Council. AIP modules enhance submarine endurance by allowing longer periods submerged, reducing the risk of detection. An indigenously developed AIP module is set to be installed on Scorpene submarines during their refit later this year.