Global Courant
NEW DELHI — Germany and India strike a deal to build diesel submarines in the South Asian country as Russia’s protracted war in Ukraine prompts New Delhi to expand its sources of military hardware beyond its top supplier Moscow.
The naval arm of Germany’s Thyssenkrupp and India’s Mazagon Dock Shipbuilders are likely to jointly bid for an estimated $5.2 billion (S$7 billion) project to build six submarines for the Indian Navy, according to experts .
The preliminary agreement or memorandum of understanding will be signed in the presence of German Defense Minister Boris Pistorius, who arrived in New Delhi on Tuesday for a two-day visit, German and Indian officials said.
Mr Pistorius told public broadcaster ARD that the submarine deal will be on the agenda when he visits Mumbai on Wednesday.
His role is to “support and assist” the negotiations between German executives traveling with him and their Indian counterparts, he said in the televised interview.
“This would be a big and important contract not only for German industry, but also for India and the India-German strategic partnership,” Pistorius said.
India’s Defense Ministry and Mazagon Dock Shipbuilders did not respond to requests for comment.
A spokesman for the German Defense Ministry and a representative from Thyssenkrupp Marine Systems declined to comment.
The Kiel-based defense manufacturing giant had shown no interest in co-producing submarines in India when the tender was announced two years ago.
With the war in Ukraine entering its second year and China catching up with Russia in the war, the West and especially Germany are betting that India will become a bulwark against Beijing’s growing diplomatic and military assertiveness.
For the submarines, India has appointed Mazagon Dock Shipbuilders and Larsen & Toubro to work with foreign defense majors to build the diesel attack submarines.
A key target for a collaboration was Thyssenkrupp Marine Systems, one of only two submarine manufacturers worldwide with air-independent propulsion – a technology that helps conventional submarines stay submerged longer.
Also, Indian Navy-made Thyssenkrupp submarines were used in the past, making them a much more attractive choice compared to others such as South Korea’s Daewoo and Spain’s Navantia group.
German Chancellor Olaf Scholz wants German and European defense companies to step up efforts to supply New Delhi with modern military equipment as a way to help Prime Minister Narendra Modi’s government reduce its dependence on Russia in the defense sector.
India has emerged as one of the swing states buying large volumes of discounted crude oil from Moscow while continuing to engage the US and its allies.
