New Delhi, Aug. 31 — India is expected to seal two major submarine contracts worth more than Rs 1 lakh crore by mid-next year, sources said Sunday, as the country seeks to strengthen its undersea warfare capabilities amid China’s growing naval presence.
The first deal involves the procurement of three Scorpene submarines, to be jointly constructed by state-run Mazagon Dock Limited (MDL) and French defence major Naval Group. Though the defence ministry cleared the nearly Rs 36,000 crore project over two years ago, negotiations on technical and commercial aspects caused delays.
The second project is the acquisition of six diesel-electric stealth submarines, estimated at around Rs 65,000 crore. This programme, known as Project 75 India (P75-I), was initially approved by the ministry in 2021. “We are expecting both contracts will be firmed up by the middle of next year,” a source said.
For the P75-I programme, German shipbuilder ThyssenKrupp Marine Systems (TKMS) has partnered with MDL, marking one of the largest recent ‘Make in India’ initiatives. Sources said cost negotiations for this project are expected to begin soon and could take six to nine months before a contract is signed.
While the P75-I submarines represent a completely new programme, the three Scorpene submarines will be a follow-on order from a previous acquisition. Under the Indian Navy’s Project 75, MDL has already built six Scorpene submarines in collaboration with Naval Group. The Navy is keen to finalise both deals to enhance its underwater capabilities, according to an official familiar with the matter.
“Commercial negotiations for the Scorpene-class submarines have almost been completed,” a source said. If all goes as planned, the Scorpene project could be finalised early next year after suffering significant delays. Delivery of boats under both projects is expected to begin around six years after contract signing.
Asked whether MDL could handle both projects simultaneously, sources said it would be for the shipbuilder to augment its infrastructure. “There have already been inordinate delays in the Scorpene submarine project, and we hope it will be concluded soon,” a source added.
The Scorpene programme is part of a broader naval modernisation effort. The defence ministry had also approved the procurement of 26 naval variants of Rafale jets from France, and in April, India and France signed an intergovernmental agreement to acquire the jets at a cost of Rs 64,000 crore (Euro 7 billion) for deployment on the aircraft carrier INS Vikrant.
