Thu Jan 23 17:10:05 UTC 2025: ## India’s ₹43,000 Crore Submarine Deal Clears Major Hurdle
**New Delhi, January 24, 2025** – A multi-billion dollar deal for six advanced conventional submarines under Project-75I has reached a significant milestone. The bid by Mazagon Dock Shipbuilders Limited (MDL) and Germany’s Thyssenkrupp Marine Systems (TKMS) has successfully passed the Defence Ministry’s technical evaluation. The competing bid from Larsen & Toubro and Spain’s Navantia failed to meet the technical requirements.
The initial project cost was set at ₹43,000 crore a decade ago, but officials expect a substantial price increase due to technological advancements, inflation, and currency fluctuations. MDL confirmed that the Ministry of Defence has opened their commercial bid for further processing.
The key factor in the technical evaluation was the Air Independent Propulsion (AIP) module, crucial for submarine endurance and stealth. TKMS’s AIP module, based on their proven Class 214 and 212CD submarines, met the criteria. Navantia’s offering, while based on their new S80 class, lacked a fully operational AIP module, a critical shortcoming.
While Navantia demonstrated their AIP module on a surfaced submarine, the submerged performance remains to be demonstrated. TKMS has assured the Indian Navy that the Lithium-ion cell in their AIP module will be upgraded before the first submarine delivery. The deal was high on the agenda during recent visits by German Chancellor Olaf Scholz and Spanish Prime Minister Pedro Sanchez. The successful bid includes a commitment to increase indigenous content from 45% in the first submarine to 60% in the final one. Commercial negotiations will now commence based on the price quoted by MDL-TKMS.
First Piper 