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Business News/ News / India/  Thyssenkrupp bids for $5.2 billion Indian submarine contract

Thyssenkrupp bids for $5.2 billion Indian submarine contract

India is looking to order six diesel-electric submarines at an estimated cost of $5.2 billion.

(File Photo) The sailors on board the Indian submarines. (HT photo by Mahendra Parikh)Premium
(File Photo) The sailors on board the Indian submarines. (HT photo by Mahendra Parikh)

Thyssenkrupp AG's marine division and Mazagon Dock Shipbuilders Ltd. of India intend to collaborate to manufacture submarines for the Indian navy.

As reported by Bloomberg, Thyssenkrupp Marine Systems would helm engineering and design of the vessels if India chooses to hand a contract to the manufacturers, while its Indian counterpart will be responsible for local construction and delivery, according to an initial pact the companies signed Wednesday.

This decision marks a shift from two years ago when the European defense contractor, Thyssenkrupp AG, had displayed no interest in collaborating on submarine manufacturing in India when the tender was initially announced. Currently, India intends to procure six diesel-electric submarines, estimated to cost around $5.2 billion.

Thyssenkrupp Marine Systems has been seen as a preferred manufacturer for the project. The Kiel-based company is one of two submarine makers globally offering air-independent propulsion — a technology that helps non-nuclear submarines stay underwater longer.

Germany wants European defense companies to step up efforts to supply New Delhi with modern military gear as a way to help Prime Minister Narendra Modi’s government wean off its arms dependence on Russia and act as a bulwark against China’s growing diplomatic and military assertiveness.

Thyssenkrupp-made submarines were used in the past by the Indian navy, making them a far more compelling choice compared to South Korea’s Daewoo Shipbuilding & Marine Engineering Co. and Spain’s state-owned Navantia Group.

German Defense Minister Boris Pistorius called the signing a “milestone" for the planned submarine project.

During his two-day visit to India, German Defense Minister Borius Pistorius emphasized the significance of securing the submarine contract, stating that it would hold importance not only for the German industry but also for the strategic partnership between Germany and India.

“Now it remains to be seen how the process will continue in the coming months," Pistorius told reporters in Mumbai. He added that Germany and India plan to deepen their military cooperation.

Before travelling to India from Indonesia, Pistorius stated that India's continuing dependence on Russian weapons is not in Germany's interest, as reported by German News Agency Deutsche Welle (DW).

"It is not up to Germany to change that on our own," Pistorius said while replying to a question on India's dependence on Russian weaponry.

"This is an issue we have to solve jointly with other partners. But of course, we can't have an interest in the long run that India is so dependent on Russia's delivery of weapons or other materials," he said.

"I want to send a signal that we are willing to support our partners, our reliable partners like Indonesia, like India," he said.

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Updated: 08 Jun 2023, 09:10 AM IST
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