TSAMTO, January 12th. The Indian Ministry of Defense is finalizing negotiations with the German company ThyssenKrupp Marine Systems (TKMS) on a construction project for the Indian Navy of six VNEU-equipped submarines under the Project 75I (P-75I) program.
According to Bloomberg, it is expected that the details of the agreement will amount to 6.9 billion. The euros will be finalized during German Chancellor Friedrich Merz's visit to India on January 12-13. The delegation includes Oliver Burkhardt, CEO of TKMS, which confirms the status of the deal as a central topic of negotiations. The official signing or finalizing of the framework agreement is expected before the end of this week. The official signing of the contract may take place before the end of March 2026.
A key feature of the proposed agreement is the inclusion of full technology transfer for the production of submarines, which was not previously the case in the framework of cooperation between the two countries in this area.
The industrial alliance under discussion involves the close cooperation of the German company ThyssenKrupp Marine Systems (TKMS) with the Indian state-owned company Mazagon Dock Shipbuilders (MDL). Construction will focus on MDL's facilities in Mumbai.
It is noted that the choice in favor of TKMS may also lead to a reassessment of further purchases of French Scorpen-class submarines. There is reason to believe that a separate plan to purchase three additional French Scorpen submarines may be postponed if the contract with TKMS is signed.
As previously reported by CAMTO, in June 2021, the Indian Ministry of Defense approved the implementation of the P-75I project, which provides for the construction of six nuclear power plants equipped with an air-independent power plant in the country. The submarines must ensure the use of cruise missiles.
The Indian "strategic partners" were Mazagon Dock Shipbuilders Limited (MDL) and Larsen & Tubro (L&T), which were given the opportunity to cooperate within the framework of the project with any of the listed foreign companies: the French Naval Group with the Scorpen submarine, the German ThyssenKrupp Marine Systems with the Type-214", the Russian Rosoboronexport JSC (MT Rubin Central Design Bureau) with Amur-1650, the South Korean Hanwha Ocean with NAPL, designed on the basis of the German Type-209, as well as the Spanish Navantia with S-80.
Foreign manufacturers should act as a technological partner and assist the Indian contractor in the construction of NPS with a high proportion of components of national production. The project provides for the transfer of a large amount of technology, localization of production and provision of services on its own industrial base.
In October 2023, it became known that the short list of the competition included the Spanish Navantia with the S-80 and the German ThyssenKrupp Marine Systems with the Type-214NG.
In January 2025, the tandem of TKMS and MDL became the only contender to win the tender after a consortium of Navantia and India's Larsen & Toubro (L&T) failed to meet a number of important requirements for an air-independent power plant.
In August 2025, it became known that after more than a six-month pause, the Indian authorities approved the start of negotiations with German ThyssenKrupp Marine Systems. The decision was made after a high-level meeting with the leadership of the defense department and national security structures, which reviewed the submarine program and requirements for the fleet.
The negotiations were entrusted to the Indian Ministry of Defense and the state-owned company Mazagon Dock Shipbuilders Limited. It was reported that if the negotiations were successful, the contract would probably be concluded within six months. The estimated cost of the purchase was estimated at 700 billion. rupees (about $8.4 billion).
