MDL, Germany’s Thyssenkrupp Marine Systems bags 70,000 crore submarines deal
Mazagon Dock Shipbuilders Limited (MDL) has secured a ₹70,000 crore deal to build six conventional submarines in collaboration with Germany's Thyssenkrupp Marine Systems (TKMS).
FollowNew Delhi: Leading defence public sector undertaking Mazagon Dock Shipbuilders Limited (MDL) on Thursday said that its commercial bid has been accepted by the defence ministry to build a total of six conventional submarines in India, worth Rs 70,000 crore.
In a filing to the Bombay Stock Exchange (BSE), the state-run defence firm said: “P-75 (1) —- MDL confirms that the Commercial bid submitted by MDL has been opened by the Ministry of Defence (MoD) for further processing.”
These submarines will be constructed in collaboration with Germany’s Thyssenkrupp Marine Systems (TKMS).
Other bidder was Indian private firm Larsen and Toubro (L&T) and Spanish firm Navantia. The ministry did not accept their commercial bid as they failed to meet the technical requirements of a proven air independent propulsion (AIP) system.
As per the understanding, the first submarine has to be delivered to the Indian Navy in 7 years from the date of signing the pact between the MDL and the defence ministry.
In July 2021, the defence ministry issued a Request for Proposal (RFP) for these submarines which were later extended up to August 2023. As part of the deal, the foreign submarine maker has to partner with an Indian company to construct them in the country.
As per the RFP, the submarine manufacturer will also have to transfer a niche technology for fuel-cell-based Air Independent Propulsion (AIP). This is the clause that most of the foreign firms failed to meet, except the German and South Korean companies.
India and Germany have had a strategic partnership since 2000, which has been strengthened through inter-governmental consultations since 2011 at the level of heads of government
It must be noted that the Indian Navy recently commissioned MDL-built sixth and final Scorpene-class submarine, INS Vaghsheer, part of the Kalvari-class Project P-75.
In the case of 3 additional submarines of Scorpene class under the Project 75, the MDL said: “commercial negotiations with respect to the project are in process.”
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