As per news reports, the Indian Navy is moving towards enhancing its naval capabilities with the procurement of 6 advanced German Air Independent Propulsion (AIP) submarines.
This monumental deal, worth ₹99,000 crore, involves Thyssenkrupp Marine Systems and construction by Mazagon Docks Limited in Mumbai.
Cleared by the Defence Acquisition Council led by Defence Minister Rajnath Singh, the deal awaits final approval from the cabinet committee on security, headed by Prime Minister Narendra Modi. It includes infrastructure and training costs but excludes specialised weaponry.
The AIP technology significantly enhances the endurance of conventional submarines by allowing them to remain submerged for longer durations without surfacing for oxygen. This makes them more stealthy and efficient, a significant advantage in modern naval warfare.
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Mazagon Docks Limited (MDL) in Mumbai will be responsible for constructing the submarines. This initiative aligns with the "Make in India" policy, promoting indigenous defence manufacturing capabilities and boosting local employment.
The Indian Navy had options between German and Spanish submarines. After a comprehensive evaluation, the German submarines were chosen. India has previous experience with German HDW submarines acquired in the 1980s and 1990s, which remain in service.
This acquisition will aid in the gradual phase-out of ageing KILO-class submarines. Currently, the Navy operates 16 conventional submarines, including 6 KILO-class and 6 modern French Scorpenes.
As of March 05, 2026, at 10:10 AM, Mazagon Dock Shipbuilders share price on NSE was trading at ₹2,275.50 up by 5.08% from the previous closing price.
The ₹99,000-crore deal for 6 German AIP submarines marks a major step in modernising India's naval fleet. With advanced technology and local manufacturing, this move will bolster India's strategic defence capabilities.
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Published on: Mar 5, 2026, 11:13 AM IST
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