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India Set To Finalise Two Mega Submarine Deals Worth Over ₹1 Lakh Crore

India is preparing to conclude two major submarine deals by the middle of next year, aimed at strengthening its undersea warfare capabilities amid China’s growing naval presence, according to official sources.

The first deal involves the purchase of three additional Scorpene class submarines, jointly built by Mazagon Dock Limited (MDL) and French defence company Naval Group. Valued at nearly ₹36,000 crore, the project was approved more than two years ago but has faced delays in technical and commercial negotiations. Sources said the discussions are now in their final stages and the contract could be signed early next year.

The second project, cleared in 2021, is for the acquisition of six diesel electric stealth submarines at an estimated cost of ₹65,000 crore under Project 75 India (P75-I). German shipbuilder ThyssenKrupp Marine Systems (TKMS) has partnered with MDL for this programme, considered one of the largest defence manufacturing initiatives under Make in India. Cost negotiations are expected to begin soon, with the process likely to take six to nine months before finalisation.

While the Scorpene purchase is a follow-on order to the six submarines already delivered under Project 75, the P75-I submarines represent a completely new programme. Deliveries under both projects are expected to begin around six years after the contracts are signed.

When asked if MDL could manage both projects simultaneously, sources said it would be the shipbuilder’s responsibility to expand its infrastructure. “There have already been inordinate delays in the Scorpene submarine project and we hope it will be concluded soon,” an official noted.

The Indian Navy is pushing for both contracts to be wrapped up quickly to boost its underwater fleet. Alongside submarines, India also recently signed a ₹64,000 crore intergovernmental agreement with France to procure 26 Rafale marine jets for deployment on INS Vikrant, further enhancing the Navy’s combat capabilities.

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