Germany’s Thyssenkrupp AG (TKAG.DE) is likely to bid for an assignment to supply six submarines for India’s Navy, Germany’s defence minister Boris Pistorius mentioned on Tuesday, on his visit to New Delhi.
Earlier, Pistorius had met his counterpart Rajnath Singh; the South Asian nation was looking to boost its domestic defence manufacturing as it aims to counter China’s increasing presence in the Indian Ocean.
Pistorius said that they spoke about extending concrete cooperation when it comes to military procurement. That could be six submarines from TKMS. He said this was referring to the marine arm of the firm.
That can be a lighthouse assignment.
Thyssenkrupp’s marine arm is likely to sign the deal with the Indian firm on Wednesday, a source who is aware of the matter informed Reuters.
In February 2023, Reuters reported Thyssenkrupp’s plans to bid for the $5.2-billion assignment to replace the navy’s ageing submarine fleet as Western military manufacturers attempt weaning New Delhi from its dependence on Russia’s gear.
The German newspaper Frankfurter Allgemeine Zeitung first reported that an MoU between India’s Mazagon Dock Shipbuilders and Thyssenkrupp would be signed on Wednesday, with the value of the agreement likely to be approximately 7 billion euros.
In March 2023, India approved a budget of 560 billion rupees for its navy, which boasts 16 conventional submarines. Of these, 11 are over two decades old, along with two nuclear-powered submarines.
The skilled workforce of India and competitive costs along with high technologies and investments of Germany can strengthen ties, Singh mentioned in a statement that didn’t refer to the submarines.
Mazagon Dock didn’t respond to a request for comment, whereas Thyssenkrupp refused to comment.
The shares of Mazagon Dock went up as much as 7.7% to a record level.
References: Hindustan Times, Bloomberg, Reuters, Times Now
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