India aims to conclude contract negotiations and sign a landmark deal for six new conventional diesel-electric submarines under Project 75 India (P75I) by the end of the current fiscal year.

These submarines are expected to feature advanced stealth capabilities, marking a pivotal step in the Indian Navy’s long-term submarine modernisation and expansion program.

The Navy and associated defence sources have indicated ongoing talks to finalise the contract and initiate the first tranche of payment by March 2026. This deal concludes nearly three decades of effort to upgrade India’s undersea warfare fleet to counter expanding regional threats.

Initially, the project was benchmarked with an Acceptance of Necessity in 2018, with a tentative cost estimate of ₹43,000 crore. However, subsequent bids from Mazagon Dockyard Limited (MDL), partnering with German firm ThyssenKrupp Marine Systems (TKMS), escalated the price dramatically to over ₹1.2 lakh crore, including goods and services tax.

Responding to budget constraints, MDL and TKMS have been pressed to significantly lower their price. Despite this, sources confirm the expected project cost remains high, in the region of ₹90,000 crore—substantially above the original estimates but notably reduced from the initial bid.

A change in MDL’s management played a crucial role in successfully negotiating cost reductions with the German partners, underscoring renewed efforts to keep the programme viable within financial realities.

The contract stipulates a delivery timeline where the first submarine must be completed within seven years of its signing, with indigenous content beginning at 45% and increasing progressively to 60%. This means the earliest operational deployment can be anticipated only by 2032, assuming no further delays arise.

Technical consultations and design verification remain significant challenges ahead. While TKMS is a trusted partner globally, scepticism remains regarding MDL’s capacity to meet the ambitious seven-year timeline, given the complexities involved in integrating cutting-edge technology and localisation requirements.

The Strategic Partnership model intended to diversify submarine production by encouraging private sector involvement. However, only Larsen & Toubro (L&T) qualified among private players. Following the switch of TKMS to team up with MDL, L&T’s bid with Spain’s Navantia was disqualified, primarily because their Air Independent Propulsion (AIP) system had not yet been integrated into a sea-worthy submarine.

Due to this disqualification and the absence of price discovery from private bids, the German-MDL consortium’s offer was accepted as the most feasible.

TKMS’s new submarines will represent a departure from their proven Type 212/214 classes, incorporating a novel hull design with angular lines to reduce sonar detectability, enhancing stealth. While originally described as fully new, it is now understood the design will heavily incorporate features from the Type 214 platform but with an increased size and advanced modifications.

This new design approach is currently in its finalisation phase, reflecting a balance between leveraging proven technologies and introducing innovative stealth and combat systems to meet India’s strategic requirements.

The P75I project remains India’s most ambitious conventional submarine programme to date, with strategic implications for regional maritime security and indigenous defence manufacturing capability. However, delivery timelines and cost management will remain critical factors moving forward.

IDN (With Agency Inputs)