India Plans to Finalize Two Submarine Contracts Valued at 1 Trillion Indian Rupees to Enhance Underwater Warfare Potential Against China's naval power.

India is on the brink of finalizing two significant submarine deals worth over Rs 1 lakh crore, according to reports. The deals, which include the acquisition of six diesel-electric stealth submarines and three Scorpene submarines, are expected to be finalized by the middle of next year.

The first deal, valued at around Rs 65,000 crore, is for the procurement of six diesel-electric stealth submarines. These submarines will be built by German shipyard ThyssenKrupp Marine Systems, in partnership with India's Mazagon Dock Shipbuilders, under the Project-75 (India) program. Negotiations for this began in January 2025, and the submarines are expected to be delivered by the mid-2030s.

The second deal, a follow-on order of a previous acquisition, is for the construction of three Scorpene submarines. These submarines will be jointly constructed by Mazagon Dock Limited (MDL) and French defence major Naval Group. The first Scorpene project, which remains in limbo despite the defense ministry's approval, is part of this same deal.

The Navy has expressed a strong desire for both deals to be finalized soon to bolster its underwater capabilities. The defense ministry has given in-principle approval for the additional Scorpenes, but the cost negotiations process is still expected to take time.

Meanwhile, the procurement of 26 naval variants of Rafale jets from France is still in limbo. India and France signed an intergovernmental agreement to procure these jets at a cost of Rs 64,000 crore (Euro 7 billion) for deployment on the INS Vikrant in 2016.

The MDL is expected to augment its infrastructure to handle both projects simultaneously. Leading German shipbuilder ThyssenKrupp Marine Systems (TKMS) has partnered with Mazagon Dock Shipbuilders Ltd for the submarine projects. The commercial negotiations for the Scorpene-class submarines have almost been completed.

Delays have occurred in the Scorpene project, causing concerns for the defense ministry. The defense ministry cleared the deal for the three Scorpene submarines over two years ago, but negotiations have been delayed. The finalization of the cost negotiations process for the diesel-engine programme is also expected to take time.

The delivery of boats for both projects will start six years after the signing of the contracts. The second deal is part of a completely new programme, while the plan for the three Scorpene submarines is a follow-on order of a previous acquisition.

These deals are crucial for India's defense capabilities, particularly its underwater capabilities. The finalization of these deals is expected to take place early next year, providing a much-needed boost to India's naval strength.

India Plans to Finalize Two Submarine Contracts Valued at 1 Trillion Indian Rupees to Enhance Underwater Warfare Potential Against China's naval power.