Spain Ready For Full Technology Transfer, Lowest Price For Indian Navy’s $5-Bn Submarine Deal
Spain is sending its top defence official Amparo Valcarce to India next month in an effort to push forward the submarine deal in which state-owned Navantia has emerged as the frontrunner.
New Delhi: Spain is willing to go for complete transfer of air-independent propulsion (AIP) technology for its stealth submarines built by state-owned defence giant Navantia for the Indian Navy under its $5.27 billion programme, also called Project-75 India or P-75 (I). It will also offer the boats at a much lower cost compared to Germany’s Thyssenkrupp, another key contender for the deaL.
After signing a teaming agreement with Larsen and Toubro in July last, year under which Navantia will be making the submarines under the government’s Make in India programme, Spain will now be sending its top defence official, Secretary of State for Defence Amparo Valcarce, to India to hold talks with her Indian counterparts. She will be undertaking the visit to India on March 7 and 8, sources
The sources also said discussions for the six stealth and new age submarines having the latest AIP technology will be the main agenda for Valcarce. Spain has also told India that they are most suitable for the project, which is touted to be India’s largest defence acquisition project and that their submarines despite having the last AIP compared to the Germans, have the most competitive price structure.
6 New Submarines To Be Procured By Navy
Prior to signing the teaming agreement, Navantia and L&T signed a memorandum of understanding on April 11, 2023 in Madrid for designing its S-80-class submarines for the Navy. The six new submarines will be procured by the Navy to replace its 11 diesel-electric powered submarines that have been inducted in the 1990s.
“The talks are progressing well. We expect positive movement on the deal post the parliamentary elections … This is not just a defence deal but a strategic move for both countries,” said an official who is closely linked to the ongoing talks.
Earlier this month, Spanish Deputy Prime Minister Teresa Ribera was on a visit to India, and talks over the submarine deal did come up for discussion during her meetings with the Indian government officials. The sources said since India will be holding its general elections in the middle of this year, the talks around the deal are likely to face some delays.
The Ministry of Defence floated a proposal to build six next-generation submarines for the Navy with the latest AIP technology enabling the submarines to remain underwater for a longer period in June 2021. Navantia has offered S-80 submarines for P-75(I) that have a displacement of 3,000 tonnes and a proven AIP system. The company also has plans to export these submarines from India to other countries in the long term.
Previously, Navantia had co-designed and participated in the transfer of technology in India for the six Scorpene submarines built by Mazagon Dock Ltd. and had deployed a resident team in India between 2006 and 2013.
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