The Indian Navy’s Project 75(I) submarine acquisition is advancing toward a pivotal phase, with concluding cost negotiations involving the Ministry of Defence, Mazagon Dock Shipbuilders Limited (MDL), and Germany’s ThyssenKrupp Marine Systems (TKMS). The financial proposal is set to be presented to the Cabinet Committee on Security (CCS) for approval within the next quarter.
Valued at approximately ₹66,000–70,000 crore following several rounds of price rationalization, Project 75(I) is anticipated to become one of the world’s largest conventional submarine contracts and the most significant underwater capability initiative undertaken by India.
This initiative aims to supplement the original Project 75 Scorpene line by inducting six next-generation diesel-electric submarines. These vessels will be outfitted with Air Independent Propulsion (AIP), advanced stealth technologies, modern combat management systems, and heavyweight torpedoes designed for both anti-surface and anti-submarine warfare. The new AIP capability allows for extended submerged endurance of up to three weeks, marking a notable enhancement compared to the existing Kalvari-class submarines.
Under India’s Strategic Partnership model, MDL serves as the Indian strategic partner, drawing on its experience from the Scorpene program, while TKMS is expected to deliver the design, AIP package, and critical technologies derived from its established Type-214/Type-218 series, tailored to meet the specific requirements of the Indian Navy.
Negotiations for the project have faced delays and complexities. Initially, the Acceptance of Necessity in 2018 estimated the project cost at approximately ₹43,000 crore. However, numerous factors, including taxes, technology transfer costs, and lifecycle support, led to significant increases in internal estimates. The Cost Negotiation Committee has since managed to reassess the range to ₹60,000–70,000 crore, a figure now viewed by the government as strategically justifiable.
As the negotiation phase near completion, attention has shifted toward financial vetting and inter-ministerial review before forwarding the file to the CCS. Defence officials have indicated that the approval is sought within the current financial year, with potential contract signature planned for late FY 2025–26 and the subsequent release of the initial payment tranche.
Project 75(I) is crucial in narrowing India’s undersea capability gap, particularly amid the expanding Chinese naval presence in the Indian Ocean Region and Pakistan’s induction of Chinese-origin AIP submarines. The new submarines are expected to enhance India’s sea-denial capabilities, safeguard essential maritime routes, and bolster deterrent strategies within the Arabian Sea and Bay of Bengal.
In addition to operational advancements, the program is projected to invigorate India’s domestic shipbuilding industry. It is expected to create sustained employment for MDL and its supply chain, while promoting advanced skills related to modular construction, systems integration, quieting technologies, and fuel-cell AIP—capabilities deemed essential for future indigenous submarine designs.
While challenges remain concerning liability clauses, intellectual property rights, and indigenous content thresholds, key political and military leadership indicate a strong commitment to advancing the project. If the CCS approves within the anticipated timeframe, Project 75(I) will equip the Indian Navy with a consistent flow of advanced submarines over the next decade, allowing additional time for concurrent indigenous conventional and nuclear submarine programs.
