Navantia Throws Wrench in P-75(I) Tender: Price vs. Proven Technology

SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG

The competition for India’s prestigious P-75(I) submarine tender has taken an unexpected turn, with Spain’s Navantia challenging the leading position of ThyssenKrupp Marine Systems (TKMS) of Germany. Navantia has urged the Indian Ministry of Defence (MoD) to decide the winner of the contract based on a price discovery method, rather than relying on the results of the Air Independent Propulsion (AIP) system field evaluation trials (FET). This move could significantly impact the outcome of the tender for six submarines, a contract that is crucial for modernizing the Indian Navy’s underwater fleet.

Price discovery is a method where the market price of an asset is determined through the interaction of buyers and sellers. Navantia’s call for the Indian MoD to prioritize pricing in the decision-making process reflects a belief that they can offer the S-80 Plus submarines at a more competitive cost compared to TKMS. While this could be advantageous for India from a financial perspective, it diverts attention from the technical evaluations, especially the critical AIP systems that would provide submarines with enhanced endurance and stealth capabilities underwater.