**India Set to Finalize Major Submarine Deals Amid Rising Naval Tensions**
India is poised to finalize two significant submarine contracts exceeding ₹one lakh crore by mid-2024, aimed at enhancing its undersea warfare capabilities in response to China’s growing naval strength, according to authoritative sources.
The first deal under negotiation involves the acquisition of three Scorpene submarines, which will be jointly manufactured by state-owned Mazagon Dock Limited (MDL) and French defense giant Naval Group. Although the defense ministry approved this nearly ₹36,000 crore project over two years ago, negotiations have faced delays in finalizing various technical and commercial details.
The second initiative the defense ministry is pursuing is for the procurement of six diesel-electric stealth submarines, estimated to cost around ₹65,000 crore. This acquisition was initially sanctioned in 2021. A source indicated, “We expect both contracts to be finalized by the middle of next year.”
German shipbuilder ThyssenKrupp Marine Systems (TKMS) has partnered with Mazagon Dock Shipbuilders Ltd for this project, which is considered one of the largest ‘Make in India’ initiatives in recent years. Cost negotiations for the diesel-electric submarines are set to commence soon, with the entire process expected to take six to nine months before a contract is finalized.
The proposed acquisition of six stealth submarines falls under Project 75 India (P75-I), marking a new program, while the three Scorpene submarines represent a follow-on order from a previous acquisition. Under the Indian Navy’s Project 75, six Scorpene submarines have already been constructed by MDL in collaboration with Naval Group.
The Navy is eager to expedite both deals to strengthen its underwater capabilities, as noted by an official familiar with the situation. However, finalizing the cost negotiations for the diesel-engine program may take additional time, while commercial negotiations for the Scorpene-class submarines are nearing completion.
If all goes according to plan, the Scorpene project could be finalized early next year, having already experienced significant delays. The delivery of submarines from both projects is expected to commence approximately six years after the contracts are signed.
When questioned about MDL’s capacity to manage both projects simultaneously, sources indicated that it would be up to the shipbuilder to enhance its infrastructure. “There have already been considerable delays in the Scorpene submarine project, and we hope it will be concluded soon,” one source remarked.
In April, India and France signed an intergovernmental agreement formalizing a substantial deal for the procurement of additional Scorpene submarines and 26 naval variants of Rafale jets from France, although the first project remains pending.
**FAQ**
**What are the key submarine deals India is finalizing?**
India is finalizing two major submarine deals: one for three Scorpene submarines and another for six diesel-electric stealth submarines, aimed at enhancing its naval capabilities.