Mazagon Dock shares gain 1.6% on this key update on Submarine Project-P75(I): Top things to know

In August 2025, news reports said that the Centre has given clearance to the Defence Ministry and Mazagaon to begin negotiations for the deal to buy six submarines to be built in India with German support under ‘Project 75 India’.

According to a report by The Print, which quoted news agency ANI, the Defence Ministry had selected state-owned MDL for building six submarines with air-independent propulsion systems with German ThyssenKrupp Marine Systems as its partner in January.

Speaking to ANI, Defence officials said, “The Centre has now given clearance to the Defence Ministry and the MDL to begin negotiations for the project, and the process is expected to start by the end of this month.”

The Centre took the decision after a very high-level meeting, including top defence and national security functionaries, who discussed the roadmap and future of the country’s submarine fleet, they said.

The report added that the Defence Ministry and the Indian Navy are expecting to conclude contract negotiations in the next six months and get final approval for it. Through the contract, the Defence Ministry aims to develop indigenous capability for designing and manufacturing conventional submarines within the country.

In another news story by news agency PTI, which was published on August 31, 2025, India is likely to seal two mega submarine deals worth over ₹one lakh crore by the middle of next year to crank up its undersea warfare capabilities against the backdrop of China's increasing naval prowess, authoritative sources said on Sunday.

The first project that is being negotiated is for the procurement of three Scorpene submarines, which will be jointly constructed by state-run Mazagon Dock Limited (MDL) and French defence major Naval Group.

Though the defence ministry cleared the nearly ₹36,000 crore deal over two years back, there have been delays in negotiations to firm up various technical and commercial aspects of the project, the sources said.

The second project that the defence ministry is eyeing to seal is for the acquisition of six diesel-electric stealth submarines at a cost of around ₹65,000 crore. The procurement was initially cleared by the ministry in 2021.

"We are expecting both contracts will be firmed up by the middle of next year," a source of the PTI said.

Leading German shipbuilder ThyssenKrupp Marine Systems (TKMS) has partnered with Mazagon Dock Shipbuilders Ltd for the project, billed as one of the biggest 'Make in India' initiatives in recent years, the report added.

The sources, according to PTI, said the cost negotiations for the deal will start soon, and the entire process may take six to nine months before a contract is concluded.

While the proposed acquisition of six stealth submarines under Project 75 India (P75-I) is a completely new programme, the plan for the three Scorpene submarines will be a follow-on order of a previous acquisition.

About Mazagon Dock

Mazagon Dock Shipbuilders Limited (MDL) is a leading shipbuilding company in India. Founded in 1934, the company is headquartered in Mumbai. It has around a 47% stake in Goa Shipyard Limited, situated on the West Coast of India. It operates under the administrative jurisdiction of the Ministry of Defence, Government of India.

The company was a small dry dock, and its first shipyards were made in 1774. Over the years, Mazagon Dock has successfully built hundreds of vessels, including warships, submarines, cargo/passenger ships and offshore platforms, solidifying its position in the maritime industry.