Germany Grants Special Status to India for Faster Military Purchases, Project-75I Submarine Deal in Focus

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In a move to strengthen defence ties, Germany has granted India special status to expedite approvals for military purchases, German Ambassador Philipp Ackermann said on Wednesday.

This development comes as German Chancellor Olaf Scholz prepares to visit India this week, with the multi-billion dollar Project-75I submarine deal topping the agenda.

The submarine deal, estimated to be worth over ₹43,000 crore, involves the acquisition of six advanced conventional submarines for the Indian Navy.

German firm TKMS (Thyssenkrupp Marine Systems) and Spain's Navantia are the two contenders vying for the contract. Both companies have completed field evaluation trials, and their bids are currently under review for technical compliance.

Ambassador Ackermann highlighted Germany's commitment to facilitating these deals, stating that a focus paper within the German Cabinet is expediting approval times for Indian military purchases.

While acknowledging that Germany has historically approved around 95% of India's requests, he emphasized that the new special status will significantly speed up the process.

"The German government has made it very clear that it is 'very supportive' and will be ready to engage formally in this deal," Ackermann said, referring to the submarine project.

However, he stressed the need for India to make an "in-principle decision" before formal negotiations can begin, given the significant financial implications of the deal.

The competition for Project-75I hinges on the crucial Air Independent Propulsion (AIP) system, which extends the underwater endurance of submarines.

TKMS, partnered with Mazagon Dock Shipbuilders Limited (MDL), offers a design based on its proven Class 214 and Class 212CD submarines, and has demonstrated an operational AIP system, although it reportedly falls short of India's endurance requirements.

Navantia, in collaboration with Larsen & Toubro, proposes a submarine based on its new S80 class, featuring an AIP system that has been tested on the surface but not yet submerged.

This push for deeper defence cooperation comes amidst Germany's broader efforts to enhance its relationship with India.

Since the beginning of the year, Germany has streamlined licensing requirements for military equipment sales to India and has even granted a small arms license.

The upcoming visits by Chancellor Scholz and Spanish Prime Minister Pedro Sanchez underscore the growing importance of India as a strategic partner for both European nations.
 

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