India, Germany close to Rs 70,000 crore submarine deal

India and Germany are expected to sign a deal for six next-generation conventional submarines very soon, German Ambassador Philipp Ackermann said. The Hans India reports the project, known as Project-75I, is estimated at 8 billion euros (over Rs 90,000 crore), while NDTV puts the price at roughly Rs 70,000 crore. The submarines will be built at Mazagon Dock Shipbuilders Ltd (MDL) in Mumbai in partnership with Germany's ThyssenKrupp Marine Systems (TKMS).

NDTV reported that the proposal is expected to go before the Cabinet Committee on Security (CCS) for approval. Talks have stalled repeatedly over commercial terms and technical specifications. The deal aims to give the Indian Navy submarines with air-independent propulsion for longer submerged patrols. NDTV noted the navy faces a shortfall in its conventional submarine fleet while Chinese submarine activity in the Indian Ocean is rising.

The Hans India quoted Ackermann as saying on Thursday he was hopeful and confident the deal would be signed in the next month. Even ahead of a decision, NDTV reported TKMS has signed MoUs with Indian firms including VEM Technologies and CFF Fluid Control for torpedoes and anti-submarine warfare systems. India's navy already operates German-designed Type 209/1500 Shishumar-class submarines built at MDL decades ago.