By N. C. Bipindra

New Delhi: The Indian Navy is targeting to finalise the long-delayed Project P-75(I) contract by March 2026, moving to secure six next-generation diesel-electric attack submarines built in India under the Strategic Partnership (SP) model.

Indian Ministry of Defence officials told Defence Capital that the Indian Navy is currently focusing on signing the contract for the next generation submarines under P-75(I) by this financial year, utlising the budgetary funds effectively for building capabilities.

The Indo-German partnership led by Mazagon Dock Shipbuilders Ltd (MDL) and ThyssenKrupp Marine Systems (TKMS) has emerged as the programme’s principal contender after rival bids fell short of technical requirements.

However, the follow-on order for the three Scorpene submarines under P-75, executed jointly by MDL and Naval Group under which six submarines were built in India, was put on the back burner.

The new Scorpene submarines, too, would be fitted with the AIP technology, being developed locally by the Defence Research and Development Organisation (DRDO).

P-75(I), India’s follow-on submarine acquisition programme to bolster undersea deterrence, calls for six advanced conventional submarines equipped with Air-Independent Propulsion (AIP), modern sensors, long-endurance strike capability, and a high degree of indigenisation.

Following evaluation of proposals and sea-trial evidence, the Ministry of Defence invited MDL, as the Indian Strategic Partner, and Germany’s TKMS, to begin formal commercial negotiations, effectively making the MDL–TKMS pairing the only qualified bidder to progress to cost negotiations.

The principal competitor, a Larsen & Toubro (L&T)–Navantia alliance offering the Spanish S-80 design, was reportedly found non-compliant after its land-based AIP demonstration did not meet Indian Navy criteria, a key technical shortfall that ruled it out of contention.

That development left the MDL–TKMS team as the de facto front-runner, a choice that reflects India’s emphasis on a sea-proven AIP system and low acoustic signature in the next-generation boats.

P-75(I) is the flagship implementation of India’s Strategic Partnership (SP) policy, introduced to marry global OEM technology with an Indian industrial partner so that critical know-how, construction, and life-cycle sustainment are established domestically.

The Strategic Partnership clause in the Request for Proposals, a bureaucratic term for a tender, has been controversial, as several foreign Original Equipment Manufacturers found it cumbersome for the smooth execution of defence projects.

Officials indicated to Defence Capital that a discussion is currently in progress with the frontrunner — MDL-TKMS in the case of P-75(I) — to find a viable model for the Strategic Partnership in defence manufacturing in India, utilising the foreign Original Equipment Manufacturer’s (OEMs) expertise.

Under the SP framework, an Indian Strategic Partner — here, MDL for one track and L&T for another — was shortlisted, and foreign OEMs partner with them to bid.

The policy aims to deepen Make-in-India outcomes but has also added layers of technical, commercial, and legal complexity that contributed to repeated schedule slips in earlier stages.

Commercial negotiations between MDL, TKMS, and the Defence Ministry’s Cost Negotiation Committee began in 2025; officials expect talks to be wrapped up within the 2025–26 financial year so the Cabinet Committee on Security (CCS) can clear the deal.

Previous estimates peg the programme value at roughly INR 70,000 crore (around USD 5 billion); the first submarine would likely be delivered several years after contract signature, with industry estimates pointing to initial deliveries in the early 2030s.

Observers say P-75(I) will be a litmus test for the Strategic Partnership model. If negotiations conclude by March 2026 and the programme proceeds smoothly, it could validate India’s policy of building major platforms domestically in partnership with global OEMs.

If not, further delays could prolong capability gaps in the Indian Navy’s undersea fleet and reopen debate over how best to balance speed, capability, and indigenous industry development.

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