Here's a detailed report expanding on the developments in the P-75I submarine project, drawing from the latest updates on negotiations between the Indian Navy and Thyssenkrupp Marine Systems (TKMS).
The Indian Navy and Germany's Thyssenkrupp Marine Systems (TKMS) have successfully wrapped up cost negotiations for Project 75 India (P-75I), a pivotal program to build six advanced diesel-electric submarines equipped with Air Independent Propulsion (AIP) systems right here in India.
This deal marks one of the largest indigenous defence manufacturing initiatives, blending cutting-edge submarine technology with substantial technology transfer to bolster India's underwater capabilities.
Originally slated for signing by the end of March, the contract now appears poised for inking in the early part of the next fiscal year, as procedural hurdles with the Ministry of Finance and the Cabinet Committee on Security (CCS) take their course.
Sources within the defence establishment indicate that while mid-December was eyed for concluding cost talks, the intricate approvals process could still push the timeline slightly, though optimism lingers for closure within the current fiscal if momentum holds.
The final price tag remains under wraps officially, but estimates peg the project at a minimum of USD 9 billion for the six submarines—a figure negotiated down aggressively by the Indian side from an initial staggering bid exceeding ₹1.2 lakh crore by Mazagon Dock Limited (MDL) and TKMS.
This positions P-75I as potentially the most expensive conventional submarine contract worldwide, outpacing even Canada's ongoing procurement of 12 such vessels for USD 12 billion, where TKMS vies against South Korea's Hanwha Ocean.
When the project first secured a fresh Acceptance of Necessity (AoN) in 2018, it was benchmarked at ₹43,000 crore, a far cry from the ballooned MDL-TKMS proposal that included GST, prompting firm directives to trim costs.
The Navy aimed for a ₹60,000-70,000 crore sweet spot post-selection of the MDL-TKMS bid earlier this year, and fresh leadership at MDL drove hard bargains with the Germans to achieve substantial reductions.
Under the Request for Proposal (RFP) terms, the lead submarine must roll out seven years from contract signature, boasting 45 per cent indigenous content, with subsequent units delivered annually and localisation ramping up to 60 per cent.
This phased indigenisation aligns with India's Atmanirbhar Bharat push in defence, fostering a domestic ecosystem for AIP-equipped submarines that extend underwater endurance without frequent surfacing.
TKMS's AIP technology, proven in Type 212 and 214 classes, promises stealthy operations critical for the Indian Ocean Region, where China's expanding submarine fleet poses strategic challenges.
Armament includes six 533mm torpedo tubes for heavyweight Black Shark torpedoes, SM-39 Exocet anti-ship missiles, and potentially BrahMos integration, enabling land-attack roles vital for India's Andaman Nicobar Command.
Mazagon Dock's role as the lead integrator builds on its Kalvari-class successes under the earlier P-75 project, now elevating to larger, more capable platforms with enhanced weapons suites like heavy torpedoes and cruise missiles.
The deal's tech transfer clauses will empower Indian firms in propulsion, combat systems, and hull fabrication, potentially seeding exports and reducing reliance on imports amid rising regional tensions.
India's localisation ramps from 45 per cent on the first boat to 60 per cent by the sixth, involving firms like L&T, TATA Advanced Systems, and Godrej for sections, batteries, and sensors—mirroring Kalvari's 60 per cent+ indigenisation.
This deal revives TKMS after a 2019 blacklisting lifted in 2021, edging out Naval Group (Scorpene partner) due to better AIP tech and MDL synergy; Spain's Navantia was earlier contender.
Delays, though frustrating, reflect rigorous fiscal scrutiny, ensuring value for money in a programme that could redefine naval balance against adversaries like Pakistan's Hangor-class and China's Type 039A boats.
Globally, this underscores TKMS's edge in conventional subs, even as it juggles bids elsewhere, while India's negotiation prowess highlights maturing procurement strategies.
With contract in sight, the Navy edges closer to 24 conventional submarines by decade's end, blending P-75I with Scorpene follow-ons and future AIP upgrades.
IDN (With Agency Inputs)
