NB Explains| Germany- India near $5.2Bn deal to build six submarines, know why is this a big deal?
Pistorius told public broadcaster ARD that the submarine deal will be on the agenda when he visits Mumbai Wednesday.
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Germany and India are closing in on a deal to build diesel submarines in the South Asian country as Russia’s prolonged war in Ukraine pushes New Delhi to expand its sources of military hardware beyond its top supplier Moscow.
Thyssenkrupp AG’s marine arm and India’s Mazagon Dock Shipbuilders Limited are likely to jointly bid for an estimated $5.2 billion project to build six submarines for the Indian navy, according to people with knowledge of the matter.
The preliminary agreement or memorandum of understanding will be signed in the presence of Defense Minister Boris Pistorius who arrived in New Delhi Tuesday for a two-day visit, German and Indian officials said.
Pistorius told public broadcaster ARD that the submarine deal will be on the agenda when he visits Mumbai Wednesday.
His role is to “support and assist” the negotiations between German executives traveling with him and their Indian counterparts, he said in the television interview. “This would be a big and important contract not only for German industry but also for India and the Indian-German strategic partnership,” Pistorius said.
BIG⚡🇮🇳
— Vivek Singh (@VivekSi85847001) June 6, 2023
India & Germany are nearing on a deal to build 6 diesel Electric Submarine for
worth 5.2 billion dollars under P75-I.
Preliminary agreement or MOU will be sign b/w 2 country defense minister in India.
MDL from 🇮🇳 & Thyssenkrupp from 🇩🇪 are likely to Jointly bid for it pic.twitter.com/JjDCKvPtU9
India’s Ministry of Defense and Mazagon Dock Shipbuilders didn’t respond to requests for comment. A German Defense Ministry spokesperson and a Thyssenkrupp Marine Systems representative declined to comment.
The Kiel-based defense manufacturing giant had shown no interest in jointly manufacturing submarines in India when the tender was announced two years ago. Now with the war in Ukraine in its second year and China moving in lockstep with Russia on the war, the West and in particular Germany, are placing their bets on India becoming a bulwark against Beijing’s growing diplomatic and military assertiveness.
For the submarines, India has identified Mazagon Dock Shipbuilders and Larsen & Toubro to tie up with foreign defense majors to build the diesel attack submarines. A key target for a partnership had been Thyssenkrupp Marine Systems, which is one of two submarine manufacturers globally to have air independent propulsion — a technology that helps conventional submarines stay underwater for longer.