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French out, German in: India plans to scrap additional Scorpene submarine order, may pick ThyssenKrupp as partner

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India is planning to scrap the 36,000 crore follow-on deal with France for three Scorpene submarines in addition to the existing six in the Indian Navy’s under-water fleet. According to a TOI report, the government may select Germany's Thyssenkrupp Marine Systems who has partnered with Mazagon Dock Shipbuilders Limited (MDL) to build six advanced submarines for the Indian navy. The German deal is worth Rs 70,000 crores and is part of the Navy’s Project 75I.

The plan for the three additional Scorpene submarines, which would have cost around Rs 36,000 crore, “is not being pursued now, though the final decision to scrap it has not yet been taken in black and white,” top government sources told TOI.

Even though the cost negotiations for the French Scorpenes had been wrapped up in the last fiscal, the PM led Cabinet Committee on Security (CCS) has put their final clearance ‘on hold’ as the German submarines are considered to be a generation ahead of the French, sources told TOI.

“Moreover, it would be difficult for MDL to handle two different complex submarine-building projects simultaneously,” as per TOI’s source. The three new Scorpenes were to add to the six such submarines already built at MDL under the over Rs 23,000 crore Project-75, which was inked way back in Oct 2005.

The first Kalvari-class submarine, INS Kalvari, was commissioned in December 2017 after significant delays, while the sixth, INS Vagsheer, was inducted in January this year. According to sources quoted by TOI, all six submarines will be retrofitted with the air-independent propulsion (AIP) system developed by DRDO to enhance underwater endurance.

AIP technology enables a diesel-electric submarine to remain submerged for about two weeks without surfacing, unlike conventional submarines that must surface or snorkel every few days to recharge batteries by taking in oxygen.

The German submarines to be constructed at Mazagon Dock Shipbuilders Limited (MDL) under Project-75 India (P-75I), in collaboration with ThyssenKrupp Marine Systems (TKMS), will be equipped with AIP, land-attack cruise missiles, and other advanced technologies.

Sources told TOI that the decision to proceed with final techno-commercial negotiations for six German submarines—with an option for three additional vessels later—was made after extensive deliberations involving the defence ministry, the Navy, and the National Security Council Secretariat.

Contract talks for MDL to build the six German submarines officially began last month. “These new-generation boats under P-75I will come with design transfer of technology (ToT) and a greater indigenisation level of around 60%. The project will serve as a bridge to the future P-76, under which conventional submarines will be constructed based on a completely indigenous design,” a source explained to TOI.

Despite this, considering France’s extensive strategic partnership with India, there remains a possibility that the proposal for three more Scorpene submarines could be revived with top-level intervention.

Sources also noted to TOI that France should be pleased with its prospects in several other major defence projects. The government-to-government deal for additional Rafale jets, part of the Indian Air Force’s approximately Rs 2 lakh crore multi-role fighter aircraft (MRFA) project, is underway. Most of these jets will be manufactured in India, as previously reported by TOI.

Additionally, collaboration to co-develop a powerful jet engine with French major Safran—valued at Rs 61,000 crore—for India’s fifth-generation Advanced Medium Combat Aircraft (AMCA) has been virtually finalized, sources said.

Meanwhile, the Navy remains cautious. Beyond the six Scorpenes, it operates only six aging Russian Kilo-class and four German HDW conventional submarines. It also possesses two nuclear-powered submarines armed with ballistic missiles.

By comparison, China maintains a fleet of over 50 diesel-electric and 10 nuclear submarines and is supplying eight new Yuan-class diesel-electric submarines with AIP to Pakistan, a move that will significantly boost Pakistan’s naval capabilities.

(With inputs from TOI)
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