MoD Picks Mazagon Dock for ₹70,000 Crore P-75(I) Submarine Deal as L&T’s Bid Falls Short

The Indian Ministry of Defence (MoD) has taken a significant step in advancing the ₹70,000 crore Project-75 India (P-75I) submarine program, inviting Mazagon Dock Shipbuilders Limited (MDL) for commercial negotiations starting January 27, 2025. This ambitious project, aimed at bolstering the Indian Navy's underwater capabilities, is the largest defense deal ever pursued by India in terms of value. The move comes after the bid by Larsen & Toubro (L&T) was deemed non-compliant, leaving MDL as the sole contender in collaboration with its German partner, ThyssenKrupp Marine Systems (TKMS).

A Milestone in Indian Defense

The P-75I program involves the construction of six advanced diesel-electric submarines equipped with Air Independent Propulsion (AIP) technology. These submarines will have the capability to stay submerged for up to three weeks, significantly enhancing the operational range and stealth capabilities of the Indian Navy. The project is critical to countering threats in the Indian Ocean Region, where China's growing naval presence and Pakistan's submarine acquisitions have heightened security concerns.

MDL, a public sector shipyard, has a proven track record of delivering sophisticated submarines. It recently handed over the final Scorpene-class submarine, INS Vagsheer, to the Indian Navy under the original P-75 program. With expertise gained from this collaboration with France's Naval Group, MDL is well-positioned to execute the P-75I project. Notably, three additional Scorpene submarines are also being negotiated under Project-75 (Additional Submarine), further cementing MDL's role as a key player in India's submarine manufacturing ecosystem.

Why L&T’s Bid Was Rejected

L&T, a prominent Indian private sector firm with substantial experience in strategic submarine projects, partnered with Spain's Navantia to bid for the P-75I project. However, its proposal was rejected for failing to meet the Indian Navy's stringent requirements. The primary issue revolved around the AIP system showcased by L&T and Navantia, which had only been demonstrated onshore. The Indian Navy's tender specifications mandated a sea-proven AIP system, making L&T's bid non-compliant. Despite its advanced facilities and contributions to India’s nuclear submarine program, L&T was unable to move forward in this competition.

Strategic Implications and Modernization

The P-75I submarines are expected to significantly boost India's naval strength. Each submarine will be equipped with advanced stealth technology, state-of-the-art sonar systems, and long-range torpedoes and missiles. The AIP system will enable extended underwater endurance, a critical advantage in modern naval warfare.

India’s focus on submarine acquisition comes against the backdrop of the Chinese Navy's rapid modernization and expansion. China's fleet includes nuclear-powered submarines and advanced conventional submarines capable of long-range patrols. Additionally, Pakistan's recent acquisition of Chinese-designed submarines has further escalated the need for India to strengthen its underwater capabilities.

While India has initiated multiple submarine projects, including nuclear-powered ballistic missile submarines (SSBNs) and attack submarines (SSNs), its fleet remains smaller than that of its regional adversaries. The P-75I program is thus a pivotal step toward bridging this gap.

MDL and ThyssenKrupp Marine Systems: A Formidable Partnership

MDL’s partnership with Germany's ThyssenKrupp Marine Systems brings world-class expertise to the P-75I project. TKMS is renowned for its Type 214 submarines, which feature advanced AIP technology and cutting-edge designs. This collaboration is expected to ensure the successful delivery of technologically superior submarines, enhancing the Indian Navy’s combat readiness.

Challenges Ahead

Despite this progress, the P-75I program faces several challenges, including the complexity of incorporating new technologies and adhering to tight timelines. The project also underscores the broader need for self-reliance in defense manufacturing, a key goal under the "Make in India" initiative. MDL’s proven capabilities, however, provide a strong foundation for overcoming these challenges.

The Road Ahead

With commercial negotiations now underway, the ₹70,000 crore P-75I project is poised to redefine India’s submarine capabilities. As MDL takes center stage in this landmark deal, the Indian Navy moves closer to acquiring a fleet of submarines capable of safeguarding national security in an increasingly contested maritime environment.