MUMBAI: The Mazagon Dock Shipbuilders Limited (MDL) is expected to finalise two important project contracts for manufacturing a total of nine conventional submarines within the financial year 2025-26.
The twin projects, estimated to cost over Rs 1.06 lakh crore, involve the Project 75-India and an add-on project which the MDL completed in January this year. These projects are expected to boost Indian Navy's underwater combat capabilities, indigenously.
Commodore SB Jamgaonkar (retd), Director (submarine and heavy engineering), MDL updated on Monday that the contract negotiation committee is set to begin discussions to finalise the commercial and technical terms for P-75I, and that negotiations for the additional Scorpene-class submarines have been completed and submitted.
"We are looking forward to executing the two projects. The two deals are likely to be signed before March 31, 2026," he said.
TNIE on July 7 had reported that "Project 75-India (I) and Project 75 (add-ons) are under advanced stages of the Cost Negotiation being done by the Committee (Cost Negotiation Committee-CNC)."
Project 75-India, along with Germany's tkMS (thyssenkrupp Marine Systems), is for the construction of six advanced conventional submarines, with an estimated cost of Rs 70,000 crore. Project 75 (add-ons) is for the construction of three Scorpene-class submarines, costing approximately Rs 36,000 crore.
The stipulated delivery timeline to Navy, as per Jamgaonkar, is set at seven years for the first submarine under P-75I after the contract is signed, with the rest at the rate of one per year.
As for the indigenised contents, the first submarine under P-75I is planned to have a minimum of 45%, which rises up to 60% in the sixth.
Talking about the capability, the MDL can simultaneously build 11 submarines and 10 destroyers, said Commander V Puranik (retd), Director (corporate planning and personnel), MDL.
Timeline for the first of the three P75 (add ons) Scorpene submarines will be six years after the contract is signed, Jamgaonkar said. The other two will come one per year thereafter.
"MDL is ready and configured for this project. We will hit the ground running as skilled labour is there and the supply chain is in place," he said.
It was in January this year that MDL delivered the last of the six Kalvari-class (Scorpene) diesel-electric attack submarines. It included the technology transfer from the French firm, Naval Group, under the Rs 23,500 crore Project 75 (P-75). The last submarine commissioned was INS Vaghsheer.
The impetus to P-75I came with tkMS in January being confirmed as the foreign Original Equipment Manufacturer (OEM) partner of the MDL under MoD's Strategic Partnership (SP) model.
As per the MoD, "SP model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM to set up production facilities in the country."
Under the contract, tkMS will transfer the submarine's design and technology to India.
The submarines, discreet war machines due to their stealth and agility for covert operations, have been used by naval forces to operate where ships cannot go, strike as per the operation, and melt into the opaque waters.
There has been continuous evolution in their technology. The Air Independent Propulsion (AIP) technology which has to be an integral part of the six new boats to be manufactured indigenously.
AIP technology helps conventional submarines to remain submerged for a longer duration, otherwise they have to surface in order to use oxygen to charge their batteries. At present only select countries have this technological know-how and India is also in the process to develop it.
While India doesn't operate any submarine with the AIP, Pakistan already has two such submarines and has tied up with China for six such submarines.