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Latest World News Update > Blog > National > Centre gives clearance to Defence Ministry, MDL to begin negotiations for Rs 70,000 crore submarine deal – World News Network
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Centre gives clearance to Defence Ministry, MDL to begin negotiations for Rs 70,000 crore submarine deal – World News Network

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Last updated: August 24, 2025 12:00 am
By worldnewsnetwork
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By Ajit Dubey
New Delhi [India], August 24 (ANI): After being stuck for over six months, the Centre has given clearance to the Defence Ministry and Mazagaon Dockyards Limited to begin negotiations for the deal to buy six submarines to be built in India with German support under ‘Project 75 India.’
The Defence Ministry had selected state-owned MDL for building six submarines with Air Independent Propulsion systems with German ThyssenKrupp Marine Systems as its partner in January.
Speaking to ANI, Defence officials said, “The Centre has now given clearance to the Defence Ministry and the MDL to begin negotiations for the project, and the process is expected to start by the end of this month.”
The Centre took the decision after a very high-level meeting, including top defence and national security functionaries, who discussed the roadmap and future of the country’s submarine fleet, they said.
The Defence Ministry and the Indian Navy are expecting to conclude contract negotiations in the next six months and get final approval for it. Through the contract, the Defence Ministry aims to develop indigenous capability for designing and manufacturing conventional submarines within the country.
The government is also exploring ways to accelerate the submarine building process. The Indian Navy is looking to buy six advanced submarines with the ability to stay underwater for three weeks under Project 75 India, and the German AIP would allow it to do so.
The Indian industry is also working on building two nuclear attack submarines, where private sector giant Larsen and Toubro would play a big role, along with the Submarine Building Centre. Against the backdrop of the rapid modernisation of the Chinese Navy, the Indian government has cleared numerous submarine projects, including both nuclear and conventional ones. However, India must rapidly develop the desired capabilities to counter both China and Pakistan in its area of interest.
The Indian Navy is likely to phase out around 10 of its submarines in the next decade and would require their replacements in the same timeframe. (ANI)

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