• Wed. Feb 28th, 2024

Mazagon Dock Shipbuilders contracts with Germany to build diesel submarines; Check the details

Mazagon Dock Shipbuilders contracts with Germany to build diesel submarines;  Check the details

Germany and India are closing in on a deal to build diesel submarines for Indian waters as Russia’s protracted war in Ukraine pushes the Indian government to expand sources of military hardware beyond its top suppliers, a Bloomberg report said. Thyssenkrupp AG’s maritime arm and India’s Mazagon Dock Shipbuilders Limited will jointly bid for an estimated $5.2 billion project to build six submarines for the Indian Navy, according to reports.

Germany and India are closing in on a deal to build diesel submarines for Indian waters as Russia’s protracted war in Ukraine pushes the Indian government to expand sources of military hardware beyond its top suppliers, according to a Bloomberg report. Thyssenkrupp AG’s maritime arm and India’s Mazagon Dock Shipbuilders Limited will jointly bid for an estimated $5.2 billion project to build six submarines for the Indian Navy, according to reports.

According to German and Indian officials, the preliminary agreement or memorandum of understanding will be signed in the presence of Defense Minister Boris Pistorius who arrived in New Delhi on June 5 for a two-day visit.

According to German and Indian officials, the preliminary agreement or memorandum of understanding will be signed in the presence of Defense Minister Boris Pistorius who arrived in New Delhi on June 5 for a two-day visit.

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His role is to “support and facilitate” discussions between German officials traveling with him and their Indian counterparts, the report added. “This will be a big and important deal not only for German industry, but also for India and the Indo-German strategic partnership,” Pistorius said.

The Kiel-based defense manufacturing giant showed no interest in jointly building submarines in India when the tender was announced two years ago, according to reports.

However, as the Russia-Ukraine war enters its second year and China locks horns with Russia, the West and especially Germany, India is placing its bets on becoming a bulwark against Beijing’s growing diplomatic and military assertiveness.

For submarines, India has identified Mazagon Dock Shipbuilders and infrastructure giant Larsen & Toubro to contract with foreign defense majors to build diesel attack submarines. A key target for a partnership was ThyssenKrupp Marine Systems, which is one of only two submarine makers worldwide with air independent propulsion – a technology that allows conventional submarines to stay underwater for long periods of time.

On June 6, shares of Mazagon Dock Shipbuilders touched a new 52-week high and jumped over seven percent during the session. Share price open 1,019 per on the BSE, and touched an intraday high 1,062 and less 1,008. Shares of the shipbuilding company settled 4.03 percent higher 1,026.30 per BSE.

India and China have emerged as the two major Southeast countries that have bought large quantities of crude oil from Russia at discounted prices. But, even after buying cheap crude despite reservations from the West, India continues to engage with the US and its allies.

India has used a long-standing border dispute with China to buy weapons from Moscow – its biggest supplier of military hardware, although supplies have stalled as Russia and India fight to find a payment arrangement that does not violate US sanctions.

Submarines are a critical need for India due to its aging weapons and naval fleet. The Indian Navy needs a minimum of 24 conventional submarines to effectively patrol the Indian Ocean, but currently has only 16. Apart from the six recently built ships, the rest of the fleet is more than 30 years old and is likely to be decommissioned within a few years. To come, Bloomberg said.

India, which is part of the so-called Quad grouping that includes Japan, the US and Australia, has been pushing these countries and European allies to share submarine-building technology. However, there is a general reluctance towards the technology due to India’s proximity to Russia.

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