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SENAPATHI Report

Procurement tracker

Project-75I Submarine Deal

Negotiation

Cost talks concluded and Finance Ministry cleared the ~₹70,000 crore deal; contract signature awaits final CCS approval, reported imminent.

India's largest conventional submarine procurement — six AIP-equipped, Type 214-derived boats to be built by Mazagon Dock Shipbuilders in Mumbai with Germany's thyssenkrupp Marine Systems — has cleared cost negotiations and Finance Ministry approval and now sits with the Cabinet Committee on Security for final clearance before contract signature, which Berlin expects around mid-2026. Urgency has sharpened since Pakistan commissioned the first of eight Chinese-built Hangor-class AIP submarines in April 2026 and sailed it into Karachi in June. First P-75I delivery is expected roughly seven years after the contract is signed.

Updated 29 Jun 2026 · updates logged below as they happen

Changelog

What's happened

  1. Reports placed the India-Germany submarine deal on the cusp of final Cabinet Committee on Security approval — the last step before contract signature — with the project now widely cited at ₹80,000 crore.

    Our coverage → source ↗

  2. Pakistan's first Chinese-built Hangor-class submarine, PNS/M Hangor, arrived at Karachi to a ceremonial naval welcome, beginning operational service from home port.

    Our coverage → source ↗

  3. India's Finance Ministry approved the ₹70,000-crore Project-75I programme, leaving CCS clearance as the final administrative step before contract signing.

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  4. Pakistan Navy commissioned PNS/M Hangor — first of eight Yuan-derived AIP submarines in a ~$5 billion programme with China — at a ceremony in Sanya attended by President Asif Ali Zardari.

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  5. German Defence Minister Boris Pistorius said he was 'very, very confident' the roughly €8 billion P-75I contract would be signed within three months, days after Rajnath Singh visited the TKMS shipyard in Kiel.

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  6. Indian Navy and TKMS concluded cost negotiations at roughly $9 billion for six submarines — negotiated down from an original bid of over ₹1.2 lakh crore — with signing expected early in the next fiscal year.

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  7. With the L&T–Navantia bid rejected as non-compliant for lacking sea-proven AIP, the MoD opened the sole remaining MDL–TKMS commercial bid and invited MDL to first-round price negotiations.

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  8. MoD issued the P-75I Request for Proposal to shortlisted strategic partners MDL and L&T for six AIP-fitted submarines, then valued at ₹43,000 crore.

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