Eyeing mega naval deal, Germany's TKMS says it plans to make India hub of submarine construction

NEW DELHI: Eyeing a Euro 5 billion deal to supply six diesel-electric stealth submarines to the Indian Navy, German defence major ThyssenKrupp Marine Systems (TKMS) on Friday said it has plans to make India a global hub for construction of submarines and warships in view of rise in demands of naval platforms.

TKMS CEO Oliver Burkhard said if his company wins the race for the mega deal, it could be the beginning of a longstanding partnership with India as there is bipartisan support in Germany to ramp up overall bilateral defence ties.

In an exclusive interview to PTI Videos, Burkhard said the demands for naval platforms are going to rise significantly because of geopolitical tensions and conflict, and India is well-positioned to emerge as a hub for construction of submarines and warships.

The German ship-builder has partnered with India's state-run Mazagon Dock Shipbuilders Ltd (MDL) in jointly bidding for the Rs 44,000 crore (Euro 5 billion) submarine deal, billed as one of the biggest 'Make in India' projects in recent years.

The TKMS-MDL combine is competing with the venture between Spanish defence major Navantia and Larsen & Toubro Ltd. The defence ministry is in the process of finalising the winner of the Project 75 India (P75-I).

"It is not only about this contract. Beyond that (contract), I think India could be a hub for submarine production. This is also part of (our) plan," Burkhard told PTI Videos.

The TKMS CEO said his company is committed to share required technologies with India and help the country emerge as a hub for construction of submarines and warships for supplying to other countries.

Burkhard said construction of submarines in India would be an attractive proposition as the cost will be on the lower side compared to that in any other European country.

The TKMS would like to join hands with the MDL to produce submarines for supplying to other countries, he said.

He suggested that deeper collaboration between India and Germany was also critical to ensure peace and stability in the Indo-Pacific in view of China's increasing assertiveness in the region.

"Our boats will probably fit best to what India demands. We are the world market leader in the non-nuclear submarine sector. We have installed a lot of so-called air independent propulsion, which is one of the needs India raised," the TKMS CEO said.

"Our boats are proven. Fifty-one of them are operating around the world. Several navies are running our boats," he added.

Burkhard even said if India has the submarines produced by the TKMS-MDL combine, then security of the country will be enhanced significantly.

On overall geo-political tensions and ways to deal with them, TKMS CEO said Europe now takes India very seriously as this region is one of the most critical in the world.

"Our defence minister had said we need to have relations with India like we have with Japan and Australia," he said, emphasising that Germany is fully committed to enhance defence ties with India.

In June 2021, the defence ministry cleared the mega project to procure six conventional submarines for the Indian Navy. The submarines are expected to have significant local content.

The submarines are set to be built under the much-talked-about strategic partnership model that allows domestic defence manufacturers to join hands with leading foreign defence majors to produce high-end military platforms to reduce import dependence.

India and Germany have had a strategic partnership since 2000, which has been strengthened through inter-governmental consultations since 2011 at the level of heads of government.