Indian Navy’s Mega Submarine Deal Underway: German Government to Acquire TKMS Stake

  • The Indian Navy’s mega submarine deal under Project-75I, estimated to cost over ₹43,000 crore, has moved to the evaluation stage with compliance checks of two bids received, one of which is from TKMS. 
  • The German government’s move to acquire a stake in TKMS is in line with the company’s desire to convince its stakeholders of the viability of the submarine business. 
  • The design offered by TKMS for P-75I is based on its successful Class 214 submarine and Class 212CD, with the submarine featuring an angular design for minimized radar cross-section. 
  • The final design will be done jointly by the TKMS and the MDL, with India owning the design. 
  • The deal is being progressed under the Strategic Partnership model of the defense acquisition procedure. 
  • The key determinant to qualify for P-75I is the Air Independent Propulsion (AIP) system. 
  • The AIP condition has led to only two manufacturers remaining in the race. 
  • The TKMS offers an AIP with both a fuel cell and a Lithium-Ion battery, giving it enhanced performance. 
  • Germany has presented a Government-To-Government (G-To-G) proposal to India for the sale of submarines under P-75I.
Posted in Current Affairs.