Centre clears deck for Rs 70,000 cr 'Project 75 India' submarine deal with Germany: Report

The government is exploring options to fast-track both nuclear and conventional submarine projects, recognising their strategic importance in the region.

After being on hold for over six months, the Centre has cleared the Defence Ministry and Mazagaon Dock Shipbuilders Limited (MDL) to begin formal negotiations with Germany’s ThyssenKrupp Marine Systems (TKMS) for building six advanced submarines under Project 75 India (P-75I), according to a report by ANI.

Defence officials told ANI that negotiations are expected to begin by the end of this month. “The Centre has now given clearance to the Defence Ministry and the MDL to begin negotiations for the project, and the process is expected to start by the end of this month,” they said.

What Project 75I aims to deliver

The Defence Ministry selected state-owned MDL in January as its strategic partner for the programme, which will see submarines built in India with German support.

Key features of the project:

Six conventional submarines with Air Independent Propulsion (AIP) systems.
The German AIP tech would allow submarines to stay underwater for up to three weeks.
Designed to enhance India’s indigenous submarine-building capability and reduce dependence on imports.

The Defence Ministry and the Indian Navy are targeting a six-month negotiation window before moving to final government approval.

Why it matters: China and Pakistan factor

The decision was taken after a high-level meeting involving senior defence and national security officials, where India’s submarine fleet roadmap was discussed, ANI reported.

With the Chinese Navy rapidly modernising and expanding its presence in the Indian Ocean, and Pakistan also strengthening its undersea fleet, India is under pressure to accelerate submarine production and modernisation.

Officials told ANI that India plans to phase out about 10 submarines in the next decade, making Project 75I and other indigenous efforts crucial for fleet replacement.

Parallel nuclear submarine programme

Alongside P-75I, India is also pursuing two nuclear attack submarines (SSNs). The programme involves the private sector, with Larsen & Toubro (L&T) expected to play a major role, in collaboration with the Navy’s Submarine Building Centre.

The government is exploring options to fast-track both nuclear and conventional submarine projects, recognising their strategic importance in the region.

What’s next

The negotiations with TKMS are expected to set the template for India’s next generation of conventional submarine production. Defence sources told ANI that the government is keen to not only acquire the boats but also develop indigenous design and manufacturing expertise for future needs.

If talks move on schedule, the final contract could be signed within six months — kickstarting one of India’s most critical defence projects in years.