Germany, Spain join Mazagon Dock

As the South Asian nation aims to bolster its navy to challenge China's growing naval footprint in the Indo-Pacific region, two European military manufacturing behemoths are vying for a Rs 40,000 crore (S4.8 billion) order to build submarines in India.

Six of the warships will be built in India, according to senior Indian officials informed of the developments, who declined to be identified since the negotiations are confidential. The two bids were made by Spain's Navantia in conjunction with private shipyard Larsen & Toubro and Germany's Thyssenkrupp AG and Mumbai's Mazagon Dock Shipbuilders Limited, the sources said.

According to the sources, the Indian Navy would choose the best and most substantial technology transfer on offer. In addition to giving the submarines air independent propulsion—a technique that enables conventional warships to stay underwater for longer—the Ministry of Defense stated when launching the tender in July that it anticipated significant technology transfer to Indian shipyards.