The Navy’s mega-submarine deal under Project-75I, estimated at over ₹43,000 crore, has crossed a major milestone in the process with the Field Evaluation Trials (FET) — to check the compliance of the bids received — now complete. There are two contenders in the fray: Germany’s TKMS (Thyssenkrupp Marine Systems) and Navantia of Spain.
While an Indian Navy team visited TKMS shipyard in March for FET, the evaluation of Navantia’s offer was conducted last week, officials confirmed.
The field evaluation report will now be compiled and presented to the Defence Ministry which will declare the bids that have cleared the FET; this is expected to take about two months, a defence official explained. Then, the bids would be opened and cost negotiations would commence with the qualified bidders.
Diplomatic sources said that Navantia would be demonstrating the Air Independent Propulsion (AIP) system fitted in a submarine operating on the surface and not submerged and that the submerged performance would be demonstrated in due course.
The design offered by TKMS, which has partnered with Mazagon Dock Shipbuilders Limited (MDL), is based on its highly successful Class 214 submarine as well as Class 212CD. Navantia, which has tied up with Larsen & Toubro, has offered a vessel based on its new S80 class of submarines, the first of which was launched in 2021 and was commissioned into the Spanish Navy as S-81 ‘Isaac Peral’ in November 2023.
The Request For Proposal (RFP) issued by the Navy, detailing the specifications required, states that the first submarine should have indigenous content (IC) of 45% which should go up to 60% for the sixth and last submarine. The key determinant, however, to qualify for P-75I is the AIP system, which enhances the endurance of a submarine.
In the backdrop of a decision on the deal, the top leaders of Germany and Spain are scheduled to visit India in the next few months during which they are expected to make a pitch for an inter-governmental agreement.
German Chancellor Olaf Scholz is scheduled to visit India in the second half of October for inter-governmental consultations. Spain’s President Pedro Sanchez is also expected to visit in the next few months.
In the past few months, Germany has simplified licensing requirements for the sale of military equipment to India as required under its BAFA (Federal Office for Economic Affairs and Export Control) and even granted small arms licence to India.
Only Germany and Spain submitted bids for the deal, the deadline for which saw several extensions before finally culminating in July 2023. The deal is being progressed under the Strategic Partnership model of the defence acquisition procedure and L&T and MDL are the two Indian shipyards shortlisted to partner with foreign submarine manufacturers to produce six advanced conventional submarines in India under technology transfer.
TKMS has conveyed to the Indian Navy that the lithium-ion cell in its AIP module will be upgraded by the time the first submarine is delivered. The AIP has a Polymer electrolyte membrane (PEM) based fuel cell and company officials said that it has both fuel cell and lithium-ion cell, giving it enhanced performance.
Jayant D. Patil, whole-time Director, and senior executive Vice President of L&T’sDefence Business had said in the past that Navantia’s AIP is the only 3rd Generation AIP solution in the world and uses bioethanol as a source of hydrogen, which is known to be cost-efficient and easily available.
As reported by The Hindu earlier, Germany has already presented a Government-to-government proposal to India for the sale of six conventional submarines under the P-75I programme, and a senior German delegation was in Delhi in January for discussions.
