India is expected to finalize two major submarine contracts worth over Rs 1 lakh crore by the middle of next year, aimed at strengthening its underwater defence capabilities amid growing Chinese naval activity.

The first deal involves the purchase of three additional Scorpene-class submarines. These will be built jointly by Mazagon Dock Limited (MDL), a government-owned shipyard, and French defence firm Naval Group. Although the Defence Ministry approved the Rs 36,000 crore project more than two years ago, negotiations have been delayed due to technical and commercial discussions.

Proposal cleared in 2021: What’s next?

The second deal, valued at around Rs 65,000 crore, is for six new diesel-electric stealth submarines under Project 75 India, news agency PTI reported citing sources. This programme is separate from the earlier Scorpene order and represents a fresh initiative to expand the Navy’s fleet.

The Defence Ministry had initially cleared this proposal in 2021.

What is the ThyssenKrupp-MDL deal?

A senior official confirmed that both contracts are expected to be signed by mid-2026. German shipbuilder ThyssenKrupp Marine Systems (TKMS) has partnered with leading PSU Mazagon Dock Shipbuilders Limited (MDL) for the stealth submarine project, which is being promoted as one of the largest ‘Make in India’ efforts in recent years.

Sources told PTI that cost negotiations for the stealth submarines will begin shortly and may take six to nine months to complete. In contrast, talks for the Scorpene submarines are nearly finished, and the contract could be signed early next year.

How is Indian Navy enhancing its underwater strength?

The Indian Navy has already built six Scorpene submarines under the original Project 75, with support from Naval Group. The new order will be a continuation of that earlier programme. Officials say the Navy is keen to move quickly on both deals to boost its underwater strength.

However, the delivery of submarines from both projects is expected to begin only six years after the contracts are signed.

When asked whether MDL can handle both projects at the same time, sources said the shipyard would need to upgrade its infrastructure to meet the demand. One source noted that the Scorpene project has already faced long delays and hopes it will be concluded soon.

Separately, India and France signed a major agreement in April to buy 26 Rafale marine jets for Rs 64,000 crore. These aircraft will be deployed on the Indian Navy’s aircraft carrier, INS Vikrant.