The German government is expected to take up a stake in submarine manufacturer, the TKMS (Thyssenkrupp Marine Systems), and discussions are on, it has been learnt. Meanwhile, the Indian Navy’s mega submarine deal under Project-75I, estimated to cost upwards of ₹43,000 crore, has moved to the evaluation stage with compliance checks of the two bids received, one of which is from the TKMS.
An Indian Navy team visited TKMS in March and conducted the Field Evaluation Trials (FET) and it has met the criteria specified, multiple sources confirmed. The FET of Navantia of Spain, the second bid, is expected to be completed before June, it has been learnt. An Indian Navy team visited the TKMS and carried out FET from March 22 to 28, two sources independently confirmed.
The German government’s move to pick up a stake in the TKMS is in line with the company’s desire to convince its stakeholders of the viability of the submarine business, sources said noting that it would automatically bring in the Government-to-Government part, essential for a deal of this size and technological sophistication. The TKMS was initially not inclined to bid for P-75I due to its scope and complexity but was later convinced by the German government to bid for it, the two sources cited above confirmed. The war in Ukraine and change in Europe’s security outlook also contributed to the German government’s interest in expanding defence cooperation in a big way, sources said.
