German seller TKMS is competing with Spanish firm Navantia for the Indian Navy’s six submarine deal, estimated at over ₹43,000 cr; German Chancellor and Spanish PM both due to visit India this week
Germany has accorded a special status to India, so that approvals for military purchases can be accelerated, German Ambassador Philipp Ackermann said on Wednesday, adding that the German seller is awaiting the Indian government to complete its decision making processes with regard to the P-75I submarine deal. The multi-billion dollar deal will top the agenda during this week’s visit to India by German Chancellor Olaf Scholz, and also over the weekend when Spanish Prime Minister Pedro Sanchez is due to visit.
Germany’s TKMS (Thyssenkrupp Marine Systems) and Navantia of Spain. are the two contenders in the fray to sell six advanced conventional submarines to the Indian Navy under Project-75I, in a deal estimated at over ₹43,000 crore. Having completed field evaluation trials, the bids are now under evaluation for technical compliance.
Speedy approvals
“The German defence industry is mostly privatised. It’s basically a private business, but we are very clearly committed to make these deals possible. So if the Indian armed forces want to buy something from German companies, what you have now is a focus paper in the German Cabinet that is looking very, very favourably at these purchases, and that means that approval time is much accelerated,” the German envoy said at a press conference ahead of the Chancellor’s visit.
In the past, although about 95% of India’s requests for military purchases were granted, it took some time, Mr. Ackermann said, adding that the process would now be expedited by the special status for India. He observed that in the past, Indian officials came to Germany or met their German counterparts with a long list of requests; that list is now empty as the requests have been granted, he said.
Regarding the submarine deal, Mr. Ackermann said that it was now up to the Indian government to take a decision. The German government has made it very clear that it is “very supportive” and will be ready to engage formally in this deal. “But an in-principle decision has to be taken before entering,” he said, terming it a heavy decision, because a lot of money is involved.
Evaluation trials
While an Indian Navy team visited the TKMS shipyard in March for field evaluation trials, the evaluation of Navantia’s offer was conducted at the end of June. Defence officials said that the staff evaluation of the field trials was still underway.
The design offered by TKMS, which has partnered with Mazagon Dock Shipbuilders Limited (MDL),
is based on its highly successful Class 214 submarine as well as Class 212CD. Navantia, which has tied up with Larsen & Toubro, has offered a submarine based on its new S80 class of submarines, the first of which was launched in 2021 and was commissioned into the Spanish Navy as S-81 ‘Isaac Peral’ in November 2023.
Submarine endurance
The key determinant, however, to qualify for P-75I is the Air Independent Propulsion (AIP) system, which enhances the endurance of a submarine, with a requirement that it should be operationally proven. Germany has demonstrated an operationally proven AIP, though it is falls slightly short of the endurance requirements, officials said.
Navantia, on the other hand, demonstrated an AIP fitted in a submarine which was operating on the surface and not while submerged,prmising to demonstrate its submerged performance in due course.
Since the beginning of this year, Germany has simplified licensing requirements for the sale of military equipment to India as required under its Federal Office for Economic Affairs and Export Control, and has even granted a small arms license to India.
