Shares of Mazagon Dock Shipbuilders Limited may remain in focus after reports indicated that India is moving ahead with a major defence acquisition involving six advanced Air Independent Propulsion (AIP) submarines. The proposed deal, estimated at around ₹99,000 crore, is expected to significantly strengthen the country’s underwater combat capabilities.
Major Defence Procurement Under Consideration
According to reports, the Indian Navy plans to procure six next-generation submarines equipped with advanced AIP technology from Thyssenkrupp Marine Systems, a German naval shipbuilding company.
The project has already been cleared by the Defence Acquisition Council led by Defence Minister Rajnath Singh. The proposal is now awaiting final approval from the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi.
The estimated cost of ₹99,000 crore includes infrastructure development and training support but excludes specialised weapon systems that will be integrated separately.
Advanced AIP Technology
A key highlight of the project is the use of Air Independent Propulsion (AIP) technology. Unlike conventional diesel-electric submarines that must periodically surface to access oxygen for their engines, AIP-equipped submarines can remain submerged for much longer durations.
This extended underwater endurance significantly enhances stealth capabilities, making submarines harder to detect and more effective in surveillance and combat operations. Such features are increasingly critical in modern naval warfare.
Construction at Mazagon Dock
Under the proposed arrangement, the submarines will be constructed in India by Mazagon Dock Shipbuilders Limited at its Mumbai facility. The collaboration will involve technology transfer and local manufacturing, supporting India’s domestic defence ecosystem.
The project is also aligned with the government’s “Make in India” initiative aimed at strengthening indigenous defence production and generating skilled employment within the country.
Evaluation and Selection Process
During the procurement process, the Indian Navy evaluated submarine proposals from both German and Spanish manufacturers. After a detailed technical and operational assessment, the German design was selected.
India has previously operated German-origin HDW submarines inducted during the 1980s and 1990s, several of which continue to remain part of the Navy’s operational fleet.
Strengthening the Submarine Fleet
The new submarines will play a critical role in modernising the Indian Navy’s underwater fleet. Currently, the Navy operates around 16 conventional submarines, including six ageing KILO-class submarines and six modern Scorpene-class submarines built under the Kalvari-class programme.
The planned acquisition will support the gradual replacement of older submarines while enhancing India’s maritime deterrence and operational reach in the Indo-Pacific region.
Summary:
Mazagon Dock Shipbuilders Limited may gain attention as India plans to procure six advanced AIP submarines from Thyssenkrupp Marine Systems in a ₹99,000 crore defence deal. The project, cleared by the Defence Acquisition Council and awaiting approval from the Cabinet Committee on Security chaired by Narendra Modi, will see the submarines built at Mazagon Dock in Mumbai. The deal aims to enhance India’s naval capabilities while promoting indigenous defence manufacturing under the “Make in India” initiative.
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