India’s ambitious $6 billion project to build six diesel-electric submarines has hit a roadblock as contractors have raised concerns over procedural issues during sea trials, Bloomberg reported.
The delays come at a time when the Indian Navy is seeking to strengthen its fleet to counter China’s growing influence in the Indian Ocean. The project, already postponed by a year, faces further setbacks.
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Contractor Complaints Delay Project
The project, part of India’s efforts to modernize its military under Prime Minister Narendra Modi’s new defence acquisition policy, has reportedly been slowed by objections from local contractors.
The Bloomberg report quoted two senior officials familiar with the situation who claimed that the complaints, numbering about half a dozen, include allegations of procedural violations and unclear guidance during the June sea trials of key technologies.
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Concerns have also been raised that some contractors might be attempting to delay the project due to fears of losing out in the final selection process, the officials said, adding that each issue needs to be thoroughly investigated before the project can move forward.
Key players and industry impact
German defence firm ThyssenKrupp Marine Systems, in collaboration with India’s Mazagon Dock Shipbuilders Ltd, and Spain’s Navantia SA, partnering with Larsen & Toubro Ltd. (L&T), are the primary contenders for the contract.
In response to the news, Mazagon Dock shares dropped over 2% in Indian trading, with state-run shipbuilders Garden Reach Shipbuilders & Engineers and Cochin Shipyard Ltd also experiencing losses.
L&T, when asked about the objections, told Bloomberg: ‘The field trial evaluation process is ongoing at the Ministry of Defence. It would be inappropriate for us to comment on it at this stage.’
The Indian Navy and Mazagon Dock Shipbuilders are yet to react on the media report.
Aging Submarine Fleet
India’s current submarine fleet consists of 16 Russian and German-made vessels, many of which are nearing the end of their operational lives despite multiple upgrades over the past three decades. The new submarines are crucial to replace the aging fleet, with the first of the six initially scheduled for delivery by early next decade.
In addition to these conventional submarines, India plans to build two nuclear-powered submarines equipped with conventional weapons.
The success of this project would enhance India’s reputation as a low-cost manufacturing hub for advanced weapon platforms amid rising global demand, particularly in Europe due to Russia’s war in Ukraine.
Geopolitical Implications
The submarine project is central to India’s efforts to counter China’s presence in the Indo-Pacific region and aligns with its strengthened partnerships with Western allies through initiatives such as the Quad bloc with the US, Australia, and Japan.
The delays, however, highlight challenges in implementing PM Modi’s defence policy, which aims to reduce dependence on foreign weapons and foster domestic production.
German Chancellor Olaf Scholz and Spanish Prime Minister Pedro Sanchez visited India in October, with defence cooperation featuring prominently in their discussions with Modi. A joint statement from India and Germany on October 25 emphasized commitments to strategic exports, co-development, and joint production of defence technologies.