Top leaders of European countries are making a beeline for India with offers in their kitty to tilt the balance of the deal for Air Independent Propulsion-equipped submarines in their favor. Just after German Chancellor Olaf Scholz ended his visit, Spanish President Pedro Sánchez arrived in India.

The two countries are competing to co-develop and co-produce six conventional AIP-equipped submarines under the Indian Navy’s Project-75I program. The German Thyssenkrupp Marien Systems (TkMS) and Spanish Navantia are the main contenders, and both companies have been claiming their technology to be validated.

The German Chancellor’s visit coincided with the visits of two German warships, the Baden-Württemberg frigate and the Frankfurt am Main naval supply ship.

The German chancellor’s visit was preceded by the adoption of a focus document on India that states that Germany wants to be a reliable partner to India.

German officials have expressed interest in making India a maintenance hub for the repair and maintenance of German ships, just like the UK and US, which have been leveraging the logistics agreement for this purpose.

Besides talks on the logistics arrangement between the armed forces, Germany is set to post a liaison officer at the Indian Navy’s Information Fusion Centre for the Indian Ocean Region in Delhi region.

In addition to the submarine deal, European aerospace giant Airbus is also seeking to sell its A400M transports to India. Negotiations are still in the early stages.

After German Defense Minister Boris Pistorius’s June 2023 visit, many licenses were given for export to India.

Germany has already collaborated with India to build the HDW submarines, which the Indian Navy operates. Germany has joined hands with Mazagon Dock Limited (MDL) to bid for this deal, whereas Navantia has entered a partnership with Larsen and Toubro.

As the German chancellor wrapped up his visit, the Spanish President began his first India visit in 18 years. The Spanish President will inaugurate the Final Assembly Line Plant for C-295 aircraft in Vadodara, showcasing Spain’s commitment to co-producing in India.

India inked a Rs. 21,935 ($2.5B) crore contract with Airbus Defense and Space SA, Spain, for the supply of 56 aircraft. Of these 56 aircraft, 16 will be purchased in flyaway condition from Spain, and the remaining 40 will be built in India by Tata Advanced Systems Ltd (TASL). The first C-295 medium tactical transport aircraft was delivered in September 2023.

Sanchez will inaugurate the C295 aircraft assembly line along with Indian Prime Minister Narendra Modi. It is the first private-sector assembly line for military aircraft in India.

The Spanish President wants to bolster defense and trade ties with India. According to the Ministry of External Affairs (MEA), “President Sánchez’s visit will be an opportunity to review the entire gamut of our bilateral relations and further deepen the partnership across various sectors, including trade and investment, innovation, infrastructure, and defense.”

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Competition For Indian Navy Submarines Heats Up

The Indian Navy has been looking for six submarines under its Project-75I (I stands for India). These submarines will have Fuel Cell Air-Independent Propulsion (AIP) technology combined with a Lithium-ion battery, which will give them the capability to lurk in the ocean depths for a longer duration and, when required, race to their target at high speeds while not giving up their position.

An AIP-based submarine is cheaper than a nuclear-powered submarine. Non-nuclear submarines are also less expensive to maintain and manage. Fuel cell systems are modular and can be replaced quickly and easily, and these submarines have crews of 25–35 people.

According to reports, during the field evaluation trials, none of the companies was able to meet the complete requirements laid out in the request for proposal (RFP) documents. Navantia’s AIP system is said to be the closest to the size of the AIP specified by the Indian Navy. However, Navantia’s first submarine with the AIP technology will be out only in 2026. Hence, from a certain criterion, the technology cannot be considered proven.

The AIP demonstrated by TKMS was smaller than what the Indian Navy wanted.

Navantia has completed the factory acceptance tests of the AIP BEST (Bio-Ethanol Stealth Technology) system for the S-80 submarines. The technology used in the AIP BEST system is based on fuel cells and is part of the so-called third-generation systems. It uses hydrogen produced on board from a fuel—bioethanol, in this case—instead of pure stored hydrogen for its operation.

This evolution allows Spanish submarines to have a greater amount of onboard energy and enables them to sail for up to three weeks in immersion with signatures comparable to those of pure electric navigation with batteries.

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The Isaac Peral (S80 series) is one of the largest non-nuclear submarines in the world, and the AIP BEST technology will make it even more deadly.

The German TkMS has been asserting that they have the full support of the German government, which has started courting India openly to strengthen its standing in the Indo-Pacific.

After its initial reluctance when the tender was floated three years ago, the German government has also thrown its weight behind the project. In March 2024, the German Navy provided its submarine for the Indian Navy to evaluate in the field. The Indian Navy team also went on a day-long diving trial in the 212-class German submarine to evaluate the AIP technology.

The combination of a fuel-cell-based AIP system and Lithium-Ion battery will bring a game-changing capability for the Indian Navy, which has a long area of responsibility straddling from the Gulf of Aden in the West to the Strait of Malacca in the East. In the face of the growing Chinese maritime capability, the Indian Navy requires a credible submarine force.

The Fuel-cell AIP gives the submarine long-range endurance at low speed, whereas the Lithium-ion battery allows it to cruise at a high speed to reach its desired destination. European countries do not use it, but Japan has been using it. If the TkMS bags the contract, it will integrate the two technologies for the Indian Navy.

The technology will help the Indian Navy the range to cover the entire Bay of Bengal while remaining submerged. A submarine is the most vulnerable when it is at periscope depth for snorting to take onboard oxygen to drive its electric batteries. The AIP technology means that it will have to surface less.

However, the smaller AIP system means that the company will have to redesign the submarine to fit the bigger submarine.

While the media reports have been saying this, the officials at TkMS told the EurAsian Times that it is a ‘misinformation campaign.

It seems that the final decision could be governed by strategic needs or the price of the submarines.

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