New Delhi | February 10, 2025
The Indian Navy has finalized a ₹36,000 crore deal with Mazagon Dock Shipbuilders Limited (MDL) for the procurement of three additional Scorpene-class submarines, with the contract expected to be signed by March 31, 2025, sources told ThePrint.
This agreement, which comes ahead of Prime Minister Narendra Modi’s visit to France for the Artificial Intelligence (AI) Summit, marks a significant step in India’s ongoing naval modernization efforts.
Strategic Significance of the Deal
The three new submarines will be built at MDL’s Mumbai shipyard, further strengthening India’s indigenous submarine production capabilities. These submarines will be an extension of the existing Kalvari-class under Project-75, a collaboration between India and France’s Naval Group.
“Cost negotiations have been completed, and the contract is expected to be signed within this fiscal year,” an official familiar with the matter said.
The ₹36,000 crore budget does not include the cost of integrating an Air Independent Propulsion (AIP) system, a technology that significantly enhances a submarine’s underwater endurance. However, Indian defense agencies are working on developing an indigenous AIP system, which could be retrofitted onto these submarines at a later stage.
Strengthening India’s Naval Capabilities
The additional Scorpene-class submarines will bolster India’s underwater fleet at a time when China is rapidly expanding its naval presence in the Indian Ocean Region (IOR).
The Indian Navy currently operates six Scorpene submarines, all of which were built at MDL under Project-75. With the new contract, India aims to further enhance its subsurface deterrence in response to growing maritime challenges.
“This deal reinforces India’s commitment to self-reliance in defense manufacturing while strengthening the Navy’s capabilities in an evolving security landscape,” a defense analyst told ThePrint.
France-India Defense Ties in Focus
The finalization of this submarine deal comes just as PM Modi prepares to visit France for the AI Summit, where he will also hold bilateral discussions with French President Emmanuel Macron.
India and France have maintained strong defense ties, with collaborations spanning across fighter jets (Rafale), submarines (Scorpene), and defense technology transfers. Modi and Macron are expected to review progress on the India-France 2047 Horizon Roadmap, which outlines long-term strategic cooperation in defense, space, and technology.
With this mega defense deal nearing completion, the Indo-French partnership continues to expand, reinforcing India’s vision of a self-reliant and technologically advanced naval force.
