Indian Navy may get 9 advanced submarines under Rs 1 trillion project; CCS nod awaited: Report

The move may also affect the Project 75 Kalvari-class programme, under which six Scorpene submarines were built between 2006 and 2015.

The Indian Navy could soon add nine advanced submarines to its fleet if a proposal under Project 75 (India), or P75(I), is cleared by the Cabinet Committee on Security (CCS), according to a report by Business Standard citing a government source.

Of these, six submarines, estimated to cost between Rs 90,000 crore and Rs 1 trillion, will be ordered in the first batch, while three more will be added a year after the main contract is signed under the 2020 Defence Acquisition Procedure (DAP) guidelines.

India’s push for advanced submarines comes at a time when the People’s Liberation Army Navy (PLAN) is expanding its presence in the Indian Ocean region, while Pakistan continues to bolster its fleet in the Arabian Sea.

“There’s an urgent requirement, particularly for the Indian Ocean region, as China’s naval presence grows, and with Pakistan also acquiring more submarines,” the source told Business Standard.

If commercial negotiations conclude by year-end, the deal could be finalised by spring, the source said.

Production start: 3 years after contract signing
Delivery timeline: Over a decade from signing

“Given that the P75(I) is an entirely new project, negotiations could take up to a year. Then a proposal will be submitted to the CCS for approval, after which the contract will be signed,” the source added.

The P75(I) project is expensive due to several reasons:

Transfer of design and construction know-how
Localisation of mission-critical systems
Pandemic-era inflation and cost escalations in Europe and India

The submarines will feature Air-Independent Propulsion (AIP) technology for enhanced stealth.

In January, a joint bid by Mazagon Dock Shipbuilders (India) and ThyssenKrupp Marine Systems (Germany) emerged as the only qualified contender after Larsen & Toubro and Spain’s Navantia failed technical evaluation.

If cleared, this would shift India’s submarine partnership from France (Scorpene programme) to Germany.

The move may also affect the Project 75 Kalvari-class programme, under which six Scorpene submarines were built between 2006 and 2015.

Mazagon was supposed to build three additional upgraded Scorpenes with AIP systems in collaboration with the French Naval Group for around Rs 36,000 crore. However, the AIP system isn’t ready, and the Scorpene design is considered of an older generation.

“No further orders are expected for the additional Scorpene submarines under the P75 programme,” the source told Business Standard.

While P75(I) will strengthen India’s undersea capabilities, the gap in continuing Kalvari-class production may impact Indian shipyards in terms of workforce retention and revenues.

The government appears inclined to make a long-term strategic choice despite the immediate industrial implications, the source said.