What Happened
- Defence Minister Rajnath Singh is scheduled to visit Germany from April 21, 2026, with the Project-75I submarine deal expected to be the centrepiece of discussions
- German defence major Thyssenkrupp Marine Systems (TKMS) and Mazagon Dock Shipbuilders Limited (MDL), Mumbai, have been selected as the winning industrial team for the deal
- The deal involves construction of six conventional submarines in India under Project-75I, estimated at over $8 billion (approximately ₹65,000–70,000 crore)
- Contract Negotiation Committee (CNC) talks between the government and the industrial team have been concluded, and the proposal awaits approval by the Cabinet Committee on Security (CCS)
- Localisation will ramp from 45% on the first submarine to 60% by the sixth; technology transfer covers critical domains including propulsion, combat systems, and hull fabrication
Static Topic Bridges
Project-75I — India's Submarine Acquisition Programme
Project-75I is the Indian Navy's programme to acquire six advanced conventional submarines with air-independent propulsion (AIP) systems. It is a follow-on to Project-75 under which six Scorpène-class submarines (Kalvari class) were built at MDL with French technology transfer from Naval Group (earlier DCNS). Project-75I is procured under the "Buy & Make (Indian)" category of the Defence Acquisition Procedure (DAP) 2020.
- Project-75 (Scorpène/Kalvari class): 6 submarines, French technology (Naval Group), built at MDL Mumbai; first INS Kalvari commissioned December 2017
- Project-75I: 6 submarines, German Type-214 variant (customised as Type-214NG/I), AIP-equipped
- AIP (Air-Independent Propulsion): allows submarines to operate underwater without surfacing to recharge batteries — critical for stealth operations; TKMS uses Proton Exchange Membrane (PEM) fuel cells
- Estimated project value: $8–9 billion (negotiations brought down from initial ₹1.2 lakh crore bid)
- Localisation: 45% on first boat, 60% on sixth; involves L&T, TATA Advanced Systems, Godrej
Connection to this news: Rajnath Singh's Germany visit is likely to finalise the government-to-government framework and clear the final CCS approval path for this landmark deal.
Defence Acquisition Procedure — DAP 2020 and CCS Approval
India's defence procurement follows a structured process under the Defence Acquisition Procedure (DAP) 2020, which replaced the earlier DPP 2016. The Defence Acquisition Council (DAC), chaired by the Defence Minister, is the apex body for all acquisition decisions above a financial threshold; major deals then go to the Cabinet Committee on Security (CCS) for final approval.
- DAP 2020 procurement categories in order of indigenisation preference:
- Buy (Indian-IDDM): highest priority — design and manufactured in India
- Buy (Indian): manufactured in India, up to 40% foreign components
- Buy & Make (Indian): main contractor is Indian firm; technology transferred from foreign firm
- Buy & Make: main contractor may be foreign; assembly/manufacture in India
- Buy (Global): outright foreign purchase — lowest preference
- Project-75I is under Buy & Make (Indian): MDL is the lead Indian entity, TKMS the foreign technology partner
- CCS (Cabinet Committee on Security): chaired by the Prime Minister; final approval body for major defence deals
- Contract Negotiation Committee (CNC): inter-ministerial body that negotiates commercial and technical terms before CCS approval
Connection to this news: The deal is past CNC stage; the Rajnath Singh visit and CCS nod are the final steps before contract signing.
Mazagon Dock Shipbuilders Limited (MDL) — India's Premier Submarine Yard
MDL is India's premier warship-building company, a Schedule 'A' Defence PSU under the Ministry of Defence, headquartered in Mumbai. It has built all six Scorpène-class submarines of Project-75 and is the only Indian shipyard with submarine-building capability.
- MDL established: 1934 (British era); became a Defence PSU in 1960; listed on BSE/NSE in 2020
- Location: Mumbai harbour (Mumbai Port Trust premises)
- Products: destroyers (Kolkata-class, Visakhapatnam-class), frigates (Project 17A Nilgiri class), and submarines
- Current order book (as of 2026): Project 17A frigates (under construction), Project-75 final boats
- Technology transfer in P-75I will cover: single-crystal turbine blades, advanced coatings, laser drilling, ceramic matrix composites, PEM fuel cell technology
Connection to this news: MDL is the designated Indian manufacturing partner; the deal will significantly enhance MDL's capability and form the nucleus of India's submarine industrial base.
Make in India in Defence — Policy Framework
India's "Make in India" in defence aims to achieve 70% domestic procurement by 2027, up from around 44% in FY2022-23. Key mechanisms include the Defence Production Policy 2018, DAP 2020 indigenisation categories, and two dedicated Defence Industrial Corridors in Uttar Pradesh (Bundelkhand) and Tamil Nadu (Chennai–Tirunelveli).
- Government target: 70% of defence procurement from domestic sources by FY2027-28
- FDI in defence: 74% via automatic route; 100% via government route (raised from earlier limits)
- Defence exports target: ₹50,000 crore (approximately $6 billion) by FY2028-29
- Defence corridors: UP Corridor (Agra, Aligarh, Kanpur, Jhansi, Chitrakoot) and TN Corridor (Chennai, Hosur, Salem, Tirunelveli, Coimbatore)
- iDEX (Innovations for Defence Excellence): startup ecosystem for defence innovation
Connection to this news: The P-75I deal's technology transfer clauses and 60% localisation target directly serve the Make in India agenda and help build a domestic submarine industrial ecosystem.
Key Facts & Data
- Project-75I: 6 AIP-equipped submarines, TKMS (Germany) + MDL (India)
- Deal value: $8–9 billion (approximately ₹65,000–70,000 crore)
- AIP technology: Proton Exchange Membrane (PEM) fuel cells (TKMS system)
- Localisation: 45% (first submarine) → 60% (sixth submarine)
- Predecessor Project-75 (Kalvari/Scorpène class): 6 submarines, French technology (Naval Group), first INS Kalvari commissioned December 2017
- Procurement category: Buy & Make (Indian) under DAP 2020
- CCS: Final approval body; chaired by Prime Minister
- MDL established: 1934; Defence PSU since 1960; listed in 2020
- India's defence export target: ₹50,000 crore by FY2028-29