India and Germany may be busy finalising the details of a submarine manufacturing deal worth at least $8 billion ahead of the visit of German Chancellor Friedrich Merz to India, claims a report.
Merz will be in India on January 12 and 13. He will arrive in Ahmedabad on January 12. Merz will travel to Bengaluru after concluding his engagements in Ahmedabad, including talks with Prime Minister Narendra Modi.
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Citing sources, a Bloomberg report said the deal, which is the largest-ever defence agreement for New Delhi, would also involve technology transfer for submarine production for the first time.
The Indian Navy currently operates a mix of conventional diesel-electric and nuclear-powered submarines, sourced from a mix of foreign suppliers through imports, licenses, and leases, even as there is a growing focus on indigenous construction.
If the deal with Germany goes ahead, India may cancel plans to buy three more submarines from France, the Bloomberg report said.
Germany's Thyssenkrupp Marine Systems GmbH and India's state-run Mazagon Dock Shipbuilders Ltd. will collaborate on the production of the submarines, sources have been quoted as saying.
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The new submarines will feature air-independent propulsion systems, enhancing their endurance and helping them to stay underwater for a longer period of time when compared to diesel-electric engines, the report said, quoting sources.
However, it is to be noted that there is no official confirmation from the defence ministry regarding such a deal.
News agency PTI, in an earlier report, quoted sources as saying that while defence ties will take centre-stage during the discussions between the German Chancellor and PM Modi, the submarine deal for the Indian Navy is unlikely during the visit of Merz.
"Defence cooperation has reached a new level of trust, with Germany's export control relaxations enabling significant progress," a senior official told PTI on condition of anonymity.
