+
European Giants Vie for $4.8B Indian Submarine Contract
DEFENSE

European Giants Vie for $4.8B Indian Submarine Contract

Two major European defense manufacturing companies are vying for a lucrative contract worth Rs 400 billion ($4.8 billion) to construct submarines within India. This move comes as the South Asian nation seeks to bolster its naval strength in response to China's expanding maritime influence in the Indo-Pacific area.

Officials from India are currently assessing competing proposals for the construction of six submarines domestically. These high-ranking Indian officials, who are privy to the developments but wish to remain anonymous due to the sensitive nature of the discussions, revealed that one bid involves a partnership between Germany's Thyssenkrupp AG and Mumbai-based Mazagon Dock Shipbuilders Limited. The other bid is a collaboration between Spain's Navantia and the private shipyard Larsen & Toubro.

The Indian Navy is prioritizing the acquisition of the most advanced and substantial technology transfer package available, as confirmed by the insiders. The Ministry of Defence, in its announcement of the tender in July, outlined its expectations for significant technology sharing with Indian shipyards, along with the incorporation of air independent propulsion technology in the submarines, enabling them to operate underwater for extended periods.

With Russia, traditionally India's primary supplier of military equipment, facing challenges due to its involvement in the Ukraine conflict and subsequent sanctions, India is actively seeking reliable alternatives for its military hardware. This situation has prompted India, a member of the Quad alliance alongside Japan, the United States, and Australia, to position itself as a hub for manufacturing and technology transfer in the realm of complex defense systems, including submarines and fighter aircraft.

In light of China's expanding naval capabilities, India's current fleet of submarines, which has aged over time, is deemed insufficient to effectively counteract China's presence in the Indian Ocean. Recognizing this gap, India's Ministry of Defence issued a tender last July, inviting global defense manufacturers to contribute to the design, development, and production of conventional diesel-electric-powered submarines. This initiative involves collaboration with either the government-owned Mazagon Dock Shipyard Limited or Larsen & Toubro, one of India's largest construction companies.

The overarching objective is to gradually establish domestic capabilities for the indigenous production of sophisticated weapon systems. To this end, India's Ministry of Defence has emphasized the necessity of expanding its submarine fleet, which currently stands at 16 submarines, despite the government's assertion that a minimum of 24 submarines is required. Most of the existing submarines are over three decades old and anticipated to be retired in the coming years.

See also:
AP to commence 36 projects by December: CS
India, Sri Lanka forge strong economic partnerships during PM's Visit


Two major European defense manufacturing companies are vying for a lucrative contract worth Rs 400 billion ($4.8 billion) to construct submarines within India. This move comes as the South Asian nation seeks to bolster its naval strength in response to China's expanding maritime influence in the Indo-Pacific area. Officials from India are currently assessing competing proposals for the construction of six submarines domestically. These high-ranking Indian officials, who are privy to the developments but wish to remain anonymous due to the sensitive nature of the discussions, revealed that one bid involves a partnership between Germany's Thyssenkrupp AG and Mumbai-based Mazagon Dock Shipbuilders Limited. The other bid is a collaboration between Spain's Navantia and the private shipyard Larsen & Toubro. The Indian Navy is prioritizing the acquisition of the most advanced and substantial technology transfer package available, as confirmed by the insiders. The Ministry of Defence, in its announcement of the tender in July, outlined its expectations for significant technology sharing with Indian shipyards, along with the incorporation of air independent propulsion technology in the submarines, enabling them to operate underwater for extended periods. With Russia, traditionally India's primary supplier of military equipment, facing challenges due to its involvement in the Ukraine conflict and subsequent sanctions, India is actively seeking reliable alternatives for its military hardware. This situation has prompted India, a member of the Quad alliance alongside Japan, the United States, and Australia, to position itself as a hub for manufacturing and technology transfer in the realm of complex defense systems, including submarines and fighter aircraft. In light of China's expanding naval capabilities, India's current fleet of submarines, which has aged over time, is deemed insufficient to effectively counteract China's presence in the Indian Ocean. Recognizing this gap, India's Ministry of Defence issued a tender last July, inviting global defense manufacturers to contribute to the design, development, and production of conventional diesel-electric-powered submarines. This initiative involves collaboration with either the government-owned Mazagon Dock Shipyard Limited or Larsen & Toubro, one of India's largest construction companies. The overarching objective is to gradually establish domestic capabilities for the indigenous production of sophisticated weapon systems. To this end, India's Ministry of Defence has emphasized the necessity of expanding its submarine fleet, which currently stands at 16 submarines, despite the government's assertion that a minimum of 24 submarines is required. Most of the existing submarines are over three decades old and anticipated to be retired in the coming years. See also: AP to commence 36 projects by December: CS India, Sri Lanka forge strong economic partnerships during PM's Visit

Next Story
Infrastructure Energy

L&T to Build India’s Largest Green Hydrogen Plant for IOCL

The plant will be developed on a build-own-operate (BOO) model and will supply 10,000 tonnes of green hydrogen annually to IOCL for a period of 25 years. It will operate entirely on renewable energy, aligning with IOCL’s decarbonisation goals and India’s broader net-zero ambitions.Green hydrogen at the plant will be produced using high-pressure alkaline electrolysers manufactured at L&T Electrolysers Ltd’s facility in Hazira, Gujarat. This initiative further showcases L&T’s commitment to localised, self-reliant clean-tech solutions under the Aatmanirbhar Bharat mission.LTEG’s..

Next Story
Infrastructure Urban

Bansal Wire Q1 Profit Rises 24.6% to Rs 393 Mn

Bansal Wire Industries, India’s largest stainless steel wire manufacturer and second-largest steel wire maker by volume, reported a 24.6 per cent year-on-year rise in net profit to Rs 393 million for the quarter ended June 30, 2025 (Q1 FY26).During the quarter, revenue rose 14.9 per cent YoY to Rs 9,390 million, while EBITDA increased by 19.6 per cent YoY to Rs 745 million, reflecting the company's strong operational performance and focus on value-added segments.According to Pranav Bansal, MD & CEO of Bansal Wire Industries, the company has started FY26 on a strong note, building on the ..

Next Story
Infrastructure Urban

Lemon Tree Opens Keys Lite Hotel in Banswara, Rajasthan

Lemon Tree Hotels has launched its latest property, Keys Lite by Lemon Tree Hotels, Banswara, further expanding its footprint in Rajasthan. This marks the group’s 11th operational hotel in the state and continues its focus on providing quality stays in emerging travel destinations.The newly launched managed hotel features 54 well-appointed rooms, a multi-cuisine restaurant – Keys Café, a fitness centre, and spacious banquet and conference facilities, catering to both leisure and business travellers.Located in southern Rajasthan, Banswara is known as the “City of Hundred Islands” for t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?