The Indian government has been urged to provide sovereign-level protection to Germany’s Thyssenkrupp Marine Systems (tkMS) while discussions for the ₹70,000 crore Project-75I submarine program continue.
In light of the 1981 HDW submarine crisis that halted previous Indo-German submarine collaboration, the business is looking for a government-to-government agreement as a buffer against possible liabilities and disputes. The multi-decade duration of the project worries tkMS, which acquired HDW, and they want guarantees that any financial or legal repercussions will be handled at the state level rather than only by the shipbuilder.
Six cutting-edge diesel-electric submarines with Air Independent Propulsion (AIP) systems will be constructed by Mazagon Dock Shipbuilders Ltd. (MDL) as part of Project-75I, with design, technology, and technical assistance provided by tkMS.
One submarine will be delivered every year after the contract is signed, with deliveries anticipated to start seven years later. Based on an upgraded Class-214 platform, the submarines will include endurance and stealth improvements tailored to the Indian Navy’s blue-water operations requirements.
Over the course of the program’s lengthy lifespan, the Contract Negotiation Committee (CNC) is anticipated to discuss how to strike a balance between risk-sharing and cost control. Given the enormous scope of the project—India’s largest-ever naval defense program under the Make-in-India drive—commercial and technological protections will be extremely important.
In order to achieve at least 60% local content in the finished units, the Navy is advocating for deeper technological transfer than the 45% local content that was first suggested. More significantly, service planners are calling for access to basic submarine design skills so that India can someday produce and improve conventional submarines on its own.
To formally define their duties, MDL and tkMS will first sign a parallel manufacturing agreement, with MDL handling construction and tkMS offering technical assistance. Before the primary defense contract with the Ministry of Defense is finalized, this agreement is anticipated to establish the parameters of liability-sharing and compliance. Understanding the sensitivity of India’s procurement system following the HDW crisis, tkMS is aiming for an intergovernmental guarantee instead of relying solely on private contracts for protection.
The initiative is positioned to have a more significant strategic and industrial impact. The production of specialized pressure hull steel domestically will expand India’s heavy engineering capabilities.
In parallel, tkMS has started strengthening its industrial ties with India by entering into contracts with CFF Fluid Control Ltd. for mechanical systems and armaments and VEM Technologies for heavyweight torpedo development. These partnerships support India’s goal of expanding its supply chain ecosystem and submarine maintenance.
With a record-breaking ₹70,000 crore, Project-75I would become India’s greatest domestic naval manufacturing endeavor if it is completed successfully. It will strengthen India’s position in the global submarine value chain and greatly enhance the Navy’s undersea capabilities.
By striking a balance between German expertise and Indian production power, it strategically represents a step toward real maritime autonomy by giving the fleet operational might and long-term design capabilities for the local ecosystem.
