Mazagon Dock Shipbuilders Limited (MDL) has formally concluded cost negotiations with Germany’s Thyssenkrupp Marine Systems (TKMS) for the ₹99,000 crore Project 75(I) submarine program, positioning itself to construct six advanced diesel-electric attack submarines with fuel-cell based Air Independent Propulsion (AIP) technology.
The deal now awaits Cabinet Committee on Security clearance before contract signing, expected in the next fiscal year.
The negotiations between the Ministry of Defence’s Cost Negotiation Committee, MDL, and TKMS mark a decisive milestone in one of India’s largest conventional submarine acquisition programs.
The valuation has been finalised in the range of ₹66,000–70,000 crore, equivalent to $8–9 billion, representing a significant reduction from the earlier bid that exceeded ₹1.2 lakh crore.
This revised figure reflects expanded requirements such as technology transfer provisions, lifecycle support packages, integration of advanced combat systems, and inflationary pressures.
The program, originally sanctioned in 2018 with an estimated cost of ₹43,000 crore, has thus evolved into a far more ambitious undertaking.
The six submarines will be based on an advanced variant of TKMS’s Type-214 lineage, modified to meet Indian Navy specifications. A central feature is the integration of fuel-cell AIP systems, enabling the boats to remain submerged for up to three weeks without surfacing, thereby enhancing stealth and survivability.
These submarines will incorporate modern combat management systems, advanced sensor suites, heavyweight torpedoes, and missile systems with land-attack capability. Stealth enhancements and acoustic quieting technologies will further strengthen their role in anti-surface and anti-submarine warfare.
All six submarines will be built indigenously at MDL’s Mumbai shipyard under the Strategic Partnership model, ensuring deep technology absorption and industrial participation.
Initial indigenous content is expected to be around 45 percent, rising to 60 percent over the course of the programme. This will create long-term industrial depth in hull fabrication, propulsion modules, and combat systems integration, reinforcing India’s shipbuilding ecosystem. The first submarine is expected to be delivered seven years after contract signing, with subsequent boats following annually.
Strategically, Project 75(I) is critical for sustaining India’s conventional submarine fleet as older Kilo and Shishumar-class boats near obsolescence.
India currently operates 16 conventional submarines, including the more modern Kalvari-class built under Project 75, but lacks operational AIP capability.
The new submarines will bridge this gap and counter regional challenges posed by China’s Yuan-class AIP submarines and Pakistan’s expanding underwater fleet. The programme also strengthens India’s maritime posture in the Indo-Pacific, where underwater competition is intensifying.
The high cost of the deal has drawn international comparisons, with analysts noting that India’s insistence on extensive technology transfer and local production distinguishes it from other submarine procurements globally.
While upfront expenditure is higher, the long-term benefits of sovereign capability and industrial self-reliance are substantial. Defence officials have indicated that procedural clearances and CCS approval are expected within the current quarter, paving the way for formal contract signing in early FY 2025–26.
In conclusion, MDL’s partnership with TKMS under Project 75(I) represents a landmark in India’s naval modernisation, combining advanced German design expertise with indigenous production.
It will deliver a new generation of stealthy, long-endurance submarines while simultaneously strengthening India’s defence industrial base.
Agencies
