India, Germany set to cement biggest military contract to make six subs

German Chancellor Friedrich Merz is scheduled to visit India for two days on January 12 and 13. His visit could see forward movement on India’s plans to buy and build the German Type 214 conventional submarine with air-independent propulsion.

The plans involve Germany company ThyssenKrupp Marine Systems partnering with Mazgaon Dock Shipbuilders Limited (MDL) to build six vessels at a cost of around $8 billion.

In June last year, the two companies had signed a MoU to collaborate on making six stealth submarines. The pact aims to utilise the latest technology from Germany and the manufacturing abilities of the MDL for six conventional submarines under the Project-75 of the Indian Navy.

The MDL, headquartered in Mumbai, is a public sector company owned by the Ministry of Defence (MoD). The TKMS is the global market leader for non-nuclear submarines based on air independent propulsion (AIP) technology, which helps a submarine to stay under water for longer periods. India had sought operational AIP technology, which would allow a submarine to remain under water for up to six days.

As per the pact, the TKMS will contribute to the engineering and design of the submarines as well as provide consultancy support to this joint project. The MDL will take the responsibility for constructing and delivering the submarines. The construction of the submarines will take place in India and is expected to have significant local content.

Earlier, in the late 1980s, India had sourced four submarines from Howaldtswerke-Deutsche Werft (HDW) of Germany. Two of these were made at the MDL in 1992 and 1994, respectively, and the other two came from Germany. The HDW has since been taken over by the TKMS.

The upcoming contract has come at a time when the Indian Navy is facing an acute and fast worsening submarine shortage. The force has 16 conventional submarines, including 10 subs that are more than 30 years old. India’s underwater arm of conventional submarines – operating on a mix of diesel-electric power -- is now at the same numerical strength as it was the late 1990’s.