Project 75(I) Submarine Deal Progresses to Cabinet Review for Approval

The Indian Navy's Project 75(I) submarine acquisition has reached a critical point, with cost negotiations nearly finalized between the Ministry of Defence, Mazagon Dock Shipbuilders Limited (MDL), and Germany's ThyssenKrupp Marine Systems (TKMS). The proposal is expected to be presented to the Cabinet Committee on Security (CCS) for approval within the upcoming quarter.

Estimated at approximately ₹66,000–70,000 crore after successive rounds of price adjustments, Project 75(I) is poised to become one of the largest conventional submarine contracts globally and the most costly underwater capability project ever undertaken by India.

Designed as a continuation of the original Project 75 Scorpene line, the initiative aims to induct six cutting-edge diesel-electric submarines. These will feature Air Independent Propulsion (AIP), advanced stealth, modern combat management systems, and heavyweight torpedoes for both anti-surface and anti-submarine warfare. The AIP capability, allowing submarines to remain submerged for up to three weeks, represents a significant advancement over the existing Kalvari-class submarines.

Through India's Strategic Partnership model, MDL has been selected as the Indian strategic partner, leveraging its experience from the Scorpene program. TKMS is anticipated to provide the design, AIP package, and critical technologies based on its established Type-214/Type-218 lineage, modified to meet Indian Navy requirements.

Cost negotiations for the project have been prolonged and delicate. Initially valued at about ₹43,000 crore in the 2018 Acceptance of Necessity, subsequent internal estimates rose due to taxes, technology transfer costs, and lifecycle support expenses. The Cost Negotiation Committee has since reduced the figure to the ₹60,000–70,000 crore range, which the government now considers strategically justified.

With negotiations largely concluded, attention has shifted to financial vetting and inter-ministerial review before submitting the proposal to the CCS. Defence officials target approval within the current financial year, allowing for contract signing by the end of FY 2025–26 and the release of the initial payment shortly afterward.

Operationally, Project 75(I) is vital for addressing India's growing undersea capability gap amid the rapid expansion of Chinese naval presence in the Indian Ocean Region and Pakistan's acquisition of Chinese-origin AIP submarines. The new submarines are expected to enhance sea-denial capabilities, safeguard essential sea lanes, and strengthen deterrence across the Arabian Sea and Bay of Bengal.

In addition to operational benefits, the program is anticipated to significantly bolster India's domestic shipbuilding industry. It will create sustained work for MDL and its supply chain while fostering advanced skills in modular construction, systems integration, quieting technologies, and fuel-cell AIP—skills essential for future indigenous submarine designs.

Despite remaining concerns over liability clauses, intellectual property rights, and indigenous content thresholds, signals from the political and military leadership indicate a strong intent to advance the project. If approved by the CCS within the expected timeframe, Project 75(I) will provide the Indian Navy with a consistent pipeline of advanced submarines into the next decade, allowing crucial time for concurrent indigenous conventional and nuclear submarine programs.