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HomeDefenceCentre okays Mazagon Dock & German maker Thyssenkrupp’s bid for multi-billion dollar...

Centre okays Mazagon Dock & German maker Thyssenkrupp’s bid for multi-billion dollar submarine deal

The L&T-Navantia bid failed to meet technical requirements. The deal, which will easily cost over Rs 70,000 crore, will see the German firm design a new submarine to cater to Indian needs.

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New Delhi: State-run Mazagon Dock Shipbuilders Limited (MDL) and Germany’s Thyssenkrupp Marine Systems (TKMS) have emerged as the winners of the Indian Navy’s mega multi-billion dollar deal to make the next set of six conventional submarines in India with latest stealth features.

The other bid by Indian private firm Larsen and Toubro (L&T) and Spanish firm Navantia failed to meet technical requirements of a proven air independent propulsion (AIP) system for the country’s submarine project, Project 75 India (P75I).

In April last year, ThePrint had reported that TKMS was the frontrunner to bag the mega contract, when an Indian Navy team was in Germany for a field evaluation of the AIP system.

The deal, which is expected to cost over Rs 70,000 crore—much more than the Rs 43,000 crore benchmark set by the defence ministry according to the Acceptance of Necessity (AON) accorded to the project—will see TKMS design a whole new submarine to cater to Indian requirements.

The design will be given to the Indian Navy, which will then use it to make their own indigenous submarine under Project 76.

Sources said that once the mandatory period of 45 days after informing the contenders is over, during which the decision could be challenged, the bid by MDL would be opened and cost negotiations would start for the formal contract. However, this means there will be no price discovery for the mega project.

The first submarine under P75I is to be delivered in 7 years from the date of signing the contract. So, if a contract is inked tomorrow, the first submarine would come earliest by 2032.

Sources said the Indian Navy submitted its field evaluation trial (FET) report to the defence ministry late last year, which said the TKMS submarine had met technical requirements.

However, L&T and the Spanish government argued that they too had met the criteria and followed Navy protocols. The defence ministry then constituted a three-member technical oversight committee to see if due process was followed. The committee was headed by a Rear Admiral and had one Air Commodore and one Brigadier-rank officer as members.

Earlier this month, sources added, the committee submitted its report saying all due process was followed. After this, the defence ministry took the decision that the L&T-Navantia bid did not meet technical requirements.


Also read: Pralay, India’s first tactical quasi-ballistic missile, to debut at Republic Day parade


How MDL-TKMS edged past L&T-Navantia

In this deal, the Navy will procure six new conventional diesel-electric submarines with AIP technology that allows the vessels to operate underwater for longer periods—minimum of two weeks—instead of surfacing every two or three days to recharge batteries.

During field evaluation, however, neither Germany or Spain was able to present a proven AIP of the size and capacity the Navy had mentioned in its request for proposal (RFP) document.

But TKMS had a proven AIP system fitted in over 60 Type 214 submarines, though its size and capacity were smaller than what the Indian Navy requires. Since it was a proven system, sources said, the company only needed to scale it up to meet the Indian Navy’s requirement for a 3,000-tonne displacement rather than the 2,100-tonne displacement of Type 214.

On the other hand, Navantia does not have a full-fledged, sea-proven AIP system because while its AIP plant has been installed on board its third S-80 class submarine for the Spanish Navy, the ship will be commissioned in 2026.

Navantia, therefore, showcased its AIP using a mix of land and onboard systems for the FET, which had undergone 50,000 hours of testing.

But, the Indian Navy was of the opinion that this did not meet the requirements of a sea-proven AIP system.

The P75I project is part of a 30-year submarine-building plan that ends in 2030. Initially, the plan was to build 24 conventional submarines, but this changed under the Narendra Modi government.

The project will now build 18 conventional submarines and six nuclear-powered submarines (SSNs) to work as an effective deterrent against China and Pakistan.

(Edited by Tikli Basu)


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1 COMMENT

  1. Only God can understand the mindset of the Indian armed forces. Or maybe even s/he cannot.
    Why did the Indian Navy request for an AIP system which does not even exist? If Navantia and Thyssenkrupp don’t have it, it simply means that the said system is just not available in the market. It’s quite obvious that the AIP is under development and it may take time. Research and development efforts in defence takes years, at times, even decades. Hence, it makes no sense to demand something which does not even exist now.

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