By Vaibhav Agrawal
Next month, the German Defence Minister is slated to visit India with a formal proposal regarding the Government-to-Government (G2G) deal for the sale of six Thyssenkrupp Marine Systems Next-Generation submarines that India had previously offered.
Earlier, Germany informally offered a deal for the sale of six Thyssenkrupp Marine Systems Next-Generation submarines to India. However, India requested a formal offer, seeking to clarify the details of Transfer of Technology (ToT) and liability conditions. This is particularly important as the submarines are expected to be constructed in Indian shipyards, under licensing agreements and with ToT arrangements between Mazgaon Docks Ltd. (MDL) and Larsen & Toubro (L&T).
Despite meeting the technical and financial requirements, ThyssenKrupp Marine Systems has decided to withdraw from the Indian Navy’s Project-751 submarine tender, citing liability clauses as the reason for the decision. Earlier this year, in February, ThyssenKrupp Marine Systems made a proposal for a Government-to-Government (G2G) deal with the support of the German government. In response, India requested a formal proposal in March.
The P-75I project has experienced significant delays and setbacks, causing it to be put on hold for some time. A senior official of India’s largest submarine builder revealed that due to various unforeseen circumstances, the bid submission deadline had to be postponed from November 2021 to June 2022. A vast majority of overseas participating companies were unable to meet the original deadline. Should the bid submission occur in June, the government will require an additional two years to consider it before placing orders by the end of 2024.
