Mazagon Dock looks to seal trillion-rupee submarine deals after a long wait

Mazagon Dock Shipbuilders Ltd. is likely to sign two submarine deals worth more than ₹1 lakh crore by the middle of 2026, as India looks to crank up its naval prowess, PTI reported cited sources.

The INS Vela, India's fourth Scorpene submarine. Indian Navy wants both submarine deals to be firmed up soon as it is looking at bolstering its underwater capabilities.(HT)

The state-run shipbuilder is negotiating a ₹36,000-crore deal with France's Naval Group for the procurement and joint construction of three Scorpene submarines. The second project, worth ₹65,000 crore, is with Germany's ThyssenKrupp Marine Systems for six diesel-electric stealth submarines—billed as one of the biggest Make in India projects in recent years.

While the defence ministry cleared the Naval Group project two years ago, the ThyssenKrupp one was approved in 2021. The delays were due to negotiations to firm up various technical and commercial aspects of the projects.

“We are expecting both contracts will be firmed up by the middle of next year,” PTI quoted a source as saying. The defence ministry will start the Cost negotiations soon, the source said. The entire process may take 6-9 months before a contract is concluded.

While the proposed acquisition of six stealth submarines under Project 75 India (P75-I) is a completely new programme, the plan for the three Scorpene submarines is a follow-on order. Mazagon Dock has already constructed six Scorpene submarines, in collaboration with the Naval Group.

According to sources, the Indian Navy wants both deals to be firmed up soon as it is looking at bolstering its underwater capabilities.

If everything goes as per plan, then the Scorpene project will be finalised early next year as it has already suffered significant delays, the sources said. The delivery of boats under both the projects will start around six years after the signing of the contracts, they said.

Asked if Mazagon Dock has the capabilities to implement both the projects simultaneously, the sources said it was for the shipbuilder to augment its infrastructure. “There have already been inordinate delays in the Scorpene submarine project and we hope it will be concluded soon,” sources said.

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