How TKMS Returned to India's P75I Submarine Project and Become Top Contender after German Policy Shift under New Chancellor

The departure of Angela Merkel as German Chancellor in 2021 signaled a significant shift in Germany's defence export policies, paving the way for ThyssenKrupp Marine Systems (TKMS) to re-emerge as a leading contender in India's ambitious P75I submarine project.

Under Merkel's 16-year leadership, TKMS faced considerable hurdles in its pursuit of the Indian contract. Despite being a frontrunner, stringent export controls and demanding technology transfer requirements imposed by the Indian Navy hampered the company's ability to compete effectively.

Sources within the Indian Navy revealed that TKMS was particularly concerned about securing the necessary clearances from the German government to meet India's expectations for technology sharing.

Germany's restrictive export policies under Merkel, often criticized for being overly cautious, even extended to denying routine arms deals, such as the supply of German-made assault rifles to India, under the pretext of potential use in conflict zones.

However, the arrival of Chancellor Olaf Scholz marked a turning point. Scholz adopted a more pragmatic approach to arms exports, recognizing the importance of strategic partnerships and international defence cooperation.

One of his first moves was to dismantle the "blacklist" of countries that had restricted defence exports under Merkel's administration. This policy shift, coupled with Scholz's encouragement for German defence companies to prioritize exports, particularly in key markets like India, created a new opening for TKMS.

In 2022, TKMS made a significant comeback in the P75I project, capitalizing on the changed political landscape in Germany. The company's renewed participation is directly attributed to the more flexible export policies under Scholz, reflecting a government more attuned to contemporary geopolitical realities.

TKMS is now better positioned to meet the Indian Navy's stringent requirements, including the crucial demand for a substantial level of technology transfer. With Germany's softened stance on arms exports, TKMS can offer the kind of indigenous manufacturing and technology sharing that India has long sought in its defence partnerships.

The P75I project, a cornerstone of India's naval modernization efforts, aims to build six advanced conventional submarines equipped with air-independent propulsion (AIP) capabilities.

TKMS's extensive experience in submarine construction and its proven ability to collaborate with Indian shipyards for local production make it a strong contender for this strategically important contract. The company's success in navigating the changing political tides in Germany has undoubtedly strengthened its position in this high-stakes competition.

 

[R. Singh]

We have experience in making Scorpene we are now making TKMS SSKs and then make new latest gen SSKs taking best from Scorpene and TKMS SSKs !

 

[sanket]

I have recently always said it need to b cautioned while dealing with TKMS to get the best deal from Carlyle they are likely to over promise Tech Transfar or any thing else Need to put good clause after inking the deal it will b full responsibility of TKMS & not by auquired Firm , second need to some Bharat pvt company to acuired some stake TKMS if is available for sale

 

[Instant Karma]

During the visit by our prime minister of India, mr Narendra Modiji to Germany, Angela Merkel refused to shake hands with mr Modiji. This is the right time to take revenge by purchaseing the whole of thyssenkrupp company which is up for sale and an American company is in advanced stages of negotiations and the company has been valued at 1.5 billion dollars. Where as our P75 I is exceed 7 billion.

similar other Germany companies are in trouble, Volkswagen, BMW, Audi, etc..

 

[ASHOK CARROL]

The german govt changed the laws as its economy is contracting , fewer children and no growth in GDP with contraction of exports which fuel her economy .

 

[Anant]

During the visit by our prime minister of India, mr Narendra Modiji to Germany, Angela Merkel refused to shake hands with mr Modiji. This is the right time to take revenge by purchaseing the whole of thyssenkrupp company which is up for sale and an American company is in advanced stages of negotiations and the company has been valued at 1.5 billion dollars. Where as our P75 I is exceed 7 billion.

similar other Germany companies are in trouble, Volkswagen, BMW, Audi, etc..

Um, could you please share a source for that valuation?

That said, even if the valuation was that low, as a strategic company, its sale would be directed by a lot of control from the German government. They would have the final say in who could buy the company, since they obviously don't want the buyer of the company to be a thorn in their side.

 

[neil]

Then why were the permissions to give MTU tank engines for our Zorawar tanks delayed so much, that we had to cancel the order...???

 

[Instant Karma]

Um, could you please share a source for that valuation?

That said, even if the valuation was that low, as a strategic company, its sale would be directed by a lot of control from the German government. They would have the final say in who could buy the company, since they obviously don't want the buyer of the company to be a thorn in their side.

Germany is the biggest technology partner of China. Chinese also partly owns some of the German companies. Chinese submarines have Germany engines. Chinese helicopters have Germany engine. Germany wants big investment in their company's to stop them from going bankrupt.

 

[Anant]

Germany is the biggest technology partner of China. Chinese also partly owns some of the German companies. Chinese submarines have Germany engines. Chinese helicopters have Germany engine. Germany wants big investment in their company's to stop them from going bankrupt.

That isn't a source for the valuation, but alright...

A lot of early German assistance to China came before 1989, and while assistance stopped after the Tianamen Square Massacre, that was only on paper. In reality, aid continued until the early 2000s. China did what it always done: Copy the designs.

However, in recent years, Germany has taken a far stronger stance against China. Even when the Chinese requested German diesel engines to be used in Chinese-built submarines for Thailand, that request was rejected.

Germany is already working on tossing out Chinese investment from strategic companies, so we don't have to worry about them getting their hands on TKMS.

 

[RK]

Angela single handedly screwed up the German society by allowing thousands of Muslims in. She made her own citizens to live in a worse social environment which made her unpopular

 

[Amit]

Algelina Merkel was favoring China because of Chinese market for German cars...Now Merkel gone and China no longer buying German cars and on the contrary selling Germany Chinese cheap cars and destroying German Industry, the new government realize its time to choose the right partner in India.

 

[Sandeep]

Whatever the reason we need to take advantage of the opportunity and complete the deal as fast as possible. We need to sign a deal so that we can start construction as soon as possible as it will take some time before we even receive the first submarine and the others. At this rate it will take us about 10-15 years before we complete the entire order.

 

[Oleg Olkha]

Berlin and... Jerusalem will not allow anyone to fully master of the tkMS. The stakes are too high to permit serious blunders, including with nuclear capability. For the rest of this century another 75 years...

 

[PKPRS]

I have recently always said it need to b cautioned while dealing with TKMS to get the best deal from Carlyle they are likely to over promise Tech Transfar or any thing else Need to put good clause after inking the deal it will b full responsibility of TKMS & not by auquired Firm , second need to some Bharat pvt company to acuired some stake TKMS if is available for sale

It’s better the guys in MOD and Navy decide faster and make this submarine before Scholz leaves power, he will definitely loose next election. if somebody else comes to power especially far right, they will introduce stringent export controls.

 

[Oleg Olkha]

As for the overly optimistic timing of the project:
German submarines is much more complicated than "Scorpene" аnd one can hope to 15 years after the contract was signed. (6 units...) Type 218SG - 10 years, 4 units, but You have a more complex design. I wish success!