SOURCE: AFI
The Indian government has greenlit a significant $9 billion deal involving Mazagon Dock Shipbuilders Limited (MDL) and Germany’s Thyssenkrupp Marine Systems (TKMS) for the design and construction of next-generation submarines under Project 76. The deal includes a comprehensive transfer of technology (ToT) that aims to enable India to eventually develop its own indigenous submarine designs.
This collaboration with TKMS marks India’s third major attempt at acquiring submarine technology over the past four decades. The journey began in 1981 when India procured four Type 209/1500 submarines from the German firm Howaldtswerke-Deutsche Werft (HDW), the predecessor of TKMS. Under that deal, two submarines were built in Germany, while two were constructed at MDL. The project was marred by a bribery scandal in 1987, which led to the blacklisting of HDW and stalled further cooperation.
India’s second attempt came with the Scorpène-class submarines under Project 75, signed with France’s Naval Group. Between 2017 and 2023, six Scorpène-class submarines were constructed, with three more planned. Despite this achievement, both the Indian Navy and MDL criticized the ToT as insufficient to independently design and develop future submarines. This limitation eventually spurred the initiation of the long-delayed Project 75I.
Under the newly approved Project 76, TKMS will design an entirely new submarine tailored to meet Indian Navy requirements. This design will then serve as a foundation for indigenous submarine development. The hope is that this partnership will succeed where previous efforts fell short—enabling India to build a robust domestic capability to design and manufacture submarines independently.
The key question remains: will India finally capitalize on the ToT opportunity this time, or will it repeat the mistakes of the past? Critics argue that the Indian Navy and MDL failed to fully absorb the technology from the Scorpène-class submarines, raising concerns about the effectiveness of previous investments in ToT.
Both the Navy and MDL have faced criticism for lacking the will or expertise to fully integrate advanced submarine technologies. If this trend continues, the new ToT might not yield the desired results. Developing a local submarine design capability requires a skilled workforce and a long-term vision. Building this capacity from scratch will be a monumental challenge. Over-reliance on foreign partners for key technologies could limit India’s strategic autonomy.
If executed well, the partnership with TKMS could finally provide India with the tools and expertise to develop cutting-edge submarine designs. A successful Project 76 would reduce India’s dependence on foreign suppliers and strengthen its defense manufacturing ecosystem. The new submarines are expected to incorporate advanced features like air-independent propulsion (AIP) and stealth, significantly enhancing the Navy’s capabilities.
The stakes are high for Project 76. While the past two ToT agreements have had mixed results, this collaboration with TKMS offers a fresh opportunity to address previous shortcomings. However, success will require strong leadership, a clear roadmap for technology absorption, and a commitment to developing local expertise.
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