Modi, Scholz discuss defence cooperation; Germany keen to build submarines for India

With Germany keen to clinch a deal worth about $5.2 billion (Rs 43,000 crore) to build six conventional submarines for India, Prime Minister Narendra Modi on Saturday agreed with the West European country’s Chancellor Olaf Scholz that the two nations would henceforth focus more on security and defence cooperation.

As Modi played host to Scholz in New Delhi, the two sides continued discussion on the proposed deal for Germany to build jointly with India six conventional submarines for the Indian Navy. “Security and defence cooperation can become an important pillar of our strategic partnership. Together we will continue to make efforts to fully realize our untapped potential in this area,” Modi told journalists after a meeting with Scholz at Hyderabad House in New Delhi.

Foreign Secretary Vinay Mohan Kwatra later told journalists that the discussion on Germany building six submarines in India under the Project 75I of the Indian Navy was under discussions between the two governments. “Naturally, when you talk of that project, which is, you know, yet to be finally decided upon in terms of direction it takes, co-design, co-development, manufacturing in India, transfer of technology – I'm sure would be important constituents of it as we go forward.”

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The ThyssenKrupp Marine Systems of Germany was among the contenders for the nearly Rs 43,000 crore contract for the Project 75I to build six diesel electric submarines for the Indian Navy jointly with Mazagon Dock Limited (MDL) of India. The TKMS had withdrawn a few months back, citing difficulty in meeting the technical and financial conditions being imposed by India. It, however, has apparently once again expressed interest in the project.

The Rubin Design Bureau of Russia and the Naval Group of France had also withdrawn from the race to win the contract as they had failed to meet the Indian Navy’s requirement of fitting the submarines with sea-proven Air Independent Propulsion systems. The Daewoo Shipbuilding and Marine Engineering of South Korea is still in the race though.

The Prime Minister and the German Chancellor on Saturday also discussed the scope of bilateral cooperation in the Indo-Pacific region, particularly to counter the belligerence and hegemonic aspirations of China.

Scholz arrived in New Delhi early on Saturday for his maiden visit to India after taking over as the Chancellor of Germany in December 2021.

The Modi-Scholz meeting resulted in two intergovernmental documents – India-Germany Vision to Enhance Cooperation in Innovation and Technology and a Letter of Intent between Department of Science and Technology of the Government of India and Fraunhofer Institute for Solar Energy Systems of Germany for Cooperation in Green Hydrogen and Clean Energy Technologies.

The German Chancellor will visit Bengaluru before concluding his visit to India on Sunday.

Modi and Scholz had “a multi-pronged, multi-layered discussion” on defence cooperation, focussing largely on transfer of technology, co-designing and co-development military hardware and what the industries and businesses of the two nations could do, the Foreign Secretary said.