After losing fighter jet competition to France, Germany looks to clinch next generation submarine deal

NEW DELHI: Having lost to France in the race to supply fighter jets, Germany is now pressing the throttle to partner India in manufacturing new-generation stealth submarines in an even bigger project.

Officials said Project-75-India, under which six advanced submarines are to be built by an Indian shipyard with foreign collaboration, figured prominently during delegation-level talks between visiting German defence minister Ursula von der Leyen and her Indian counterpart Manohar Parrikar on Tuesday evening.

The talks even touched on "what extra Germany could offer" if India decides to go in for a government-to-government (G2G) agreement on the submarine-building project. When the long-delayed P-75I gained "acceptance of necessity" in November 2007, it was estimated to cost over Rs 50,000 crore then.

Today, the proposed project would cost much more, especially since the diesel-electric submarines are to be armed with both land-attack missile capabilities and air-independent propulsion for greater underwater endurance.



On Wednesday, after meeting PM Narendra Modi, Von der Leyen said Germany was extremely keen to take part in the 'Make in India' initiative, especially in the field of submarines, since the two countries were "natural partners".

"You (India) don't want to only buy but want a close cooperation by manufacturing in India. I think it's a very smart approach... close cooperation between strategic partners should not be a one-way process," she said. German Chancellor Angela Merkel, incidentally, is slated to visit India later this year.

But it will not be a cakewalk for Germany (ship-builder ThyssenKrupp Marine Systems) since it will have to contend with a strong challenge from Russia (Rosoboronexport), France (DCNS) and Spain (Navantia) in an open competition for P-75I. India has even approached Japan for its new Soryu submarines manufactured by Mitsubishi Heavy Industries and Kawasaki Heavy Industries.

The prospect of the Modi government going in for a G2G deal to save time, however, has gained ground after it decided to directly buy 36 French Rafale fighters (which will cost over Rs 30,000 crore) by scrapping the deadlocked MMRCA (medium multi-role fighter aircraft) project for 126 such fighters.


In pic: The Japanese Soryu class submarine has also evinced interest from the Indian MoD.

Like the IAF's critical operational requirement for new fighters, the Navy too is making do with just 13 ageing diesel-electric submarines and one nuclear-powered INS Chakra on lease from Russia. Eleven of them are well over 20 years old, including the four German HDW or Shishumar-class submarines inducted between 1986 and 1994.

This when China has five nuclear and 51 conventional submarines, with another five advanced JIN-class nuclear submarines on the way, and is making regular forays into Indian Ocean. Pakistan, too, recently sealed a deal with China for eight advanced conventional submarines to add to the five it already has.