Germany has gained a significant advantage in the high-stakes competition to supply next-generation conventional submarines to the Indian Navy. Following trials, where Germany's Thyssenkrupp Marine Systems (TKMS) and Spain's Navantia showcased their technologies, the Indian Navy has identified shortcomings in the Spanish offering.
Sources indicate that the Spanish side failed to demonstrate a sea-proven air-independent propulsion (AIP) system, a mandatory requirement of the tender. The AIP system is crucial for submarines, allowing them to stay submerged for extended periods, up to two weeks in this case.
While Navantia showcased its AIP system components and an operational AIP that is yet to be integrated into a submarine, it did not fully meet the tender requirements. The Spanish company, partnering with L&T, currently has no submarine with an operational AIP system and is in the process of integrating it onto a future vessel.
The German boat, on the other hand, successfully demonstrated its stealth capabilities as required. However, there are concerns that the fuel cells on the demonstrated AIP system might not be the ones offered for the Indian contract.
As per procurement guidelines, the Indian Navy can either disqualify the Spanish bid on technical grounds or grant an exception, which requires approval from higher defence ministry authorities.
This development comes amid reports of a potential majority stake acquisition in TKMS by private equity fund Carlyle and German Development Bank KfW, valuing the company at up to $1.7 billion.
The estimated ₹43,000-crore contract for six new submarines is a crucial part of India's naval modernization efforts. The final decision will significantly impact the Indian Navy's capabilities and the strategic balance in the region.
