Mazagon Dock Shipbuilders Ltd (MDL), India’s foremost warship construction facility, has expressed strong confidence in securing a crucial multi-billion-euro deal for six advanced submarines under Project 75(I) before the current financial year concludes in March 2026.
This optimism was shared by the company’s Chairman and Managing Director, Capt. Jagmohan, during an earnings conference call on October 28.
Capt. Jagmohan stated that the contracts for both the advanced Project 75(I) submarines and the additional boats under the original Project 75 are expected to be signed within the current fiscal period.
He highlighted that this accelerated negotiation process has already cleared major technical and design steps, underscoring the serious momentum behind the procurement.
Strategic Value and Program Details
The agreement, which is with the German marine engineering giant ThyssenKrupp Marine Systems (TKMS), is estimated to be worth approximately ₹70,000 to ₹80,000 crore ($8-10 billion USD).This massive contract is poised to significantly expand MDL’s order book and will incorporate a substantial transfer of cutting-edge technology into India.
The project is strategically vital for the Indian Navy, which is facing a shortfall in its underwater fleet amid rising maritime competition in the Indo-Pacific region, particularly from rival navies that are also augmenting their submarine capabilities with Air-Independent Propulsion (AIP) technology.
The core requirement of the P-75(I) programme is the integration of an AIP system.
This technology is crucial as it allows conventional submarines to remain submerged for significantly longer periods—potentially weeks—without needing to surface to recharge their batteries, a requirement that makes them vulnerable to detection.
This enhancement in stealth and endurance is essential for modern underwater defence operations.
Advanced Design and Indigenisation Push
The discussions gained significant traction following the completion of the Concept Design Agreement (CDA) between MDL and TKMS in August 2025. The designs for the six submarines are based on the proven German Type 212/214 lineage, modified to integrate the AIP capability.TKMS has confirmed that important technical and due diligence milestones have been met, including the critical mandates for indigenous content.
Under the government’s ‘Strategic Partnership’ model, the project necessitates a high degree of local manufacturing, with a mandatory 45% indigenous content in the first submarine, which will increase to 60% by the final vessel.
This technological transfer and indigenisation are key pillars of the ‘Make in India’ defence initiative.
Financial and Timeline Context
The announcement was made during MDL's quarterly earnings call, where the shipyard reported an impressive 25% year-on-year surge in orders, including fresh approvals worth ₹2,500 crore for new warships.Capt. Jagmohan referred to the P-75(I) as the "crown jewel" of the company's future pipeline, anticipating a substantial increase in the overall order book once the contract is signed before April 1, 2026.
While acknowledging the complexities involved in such a large-scale international defence contract, particularly with regard to exact signing dates, Capt. Jagmohan remains confident in the targeted fiscal year end, noting the diplomatic support provided by the Ministry of External Affairs (MEA) to move the process forward.
The successful finalisation of this project will mark a major milestone in India’s efforts to modernise its naval fleet and achieve self-reliance in advanced underwater warfare systems.
