India and Germany’s joint project to produce the latest submarines for the Navy is set to be finalised in the next few weeks. A crucial inter-ministerial meeting is scheduled before the two countries cement what could become their biggest military contract.Sources said the project was in the final stages of approval and was part of the submarine action plan aimed at augmenting the Navy’s underwater fleet.The India-Germany project involves the construction of the German Type 214 conventional submarines equipped with air-independent propulsion (AIP) technology. It includes German company ThyssenKrupp Marine Systems (TKMS), which has tied up with Mazagon Dock Shipbuilders Limited (MDL) to build six submarines in India at an estimated cost of $8 billion.In June last year, the two companies signed a memorandum of understanding (MoU) to collaborate on the construction of six stealth submarines.The MoU aims to combine Germany’s latest submarine technology with MDL’s manufacturing capabilities for the production of six conventional submarines under the Indian Navy’s Project-75.MDL, headquartered in Mumbai, is a public sector company owned by the Ministry of Defence (MoD). TKMS is the global market leader in non-nuclear submarines based on AIP technology, which enables submarines to remain underwater for extended periods. India had sought operational AIP technology that would allow submarines to stay submerged for up to six days.Under the agreement, TKMS will contribute to the engineering and design of the submarines and provide consultancy support for the joint project, while MDL will be responsible for their construction and delivery. The submarines will be built in India and are expected to have significant indigenous content.In the late 1980s, India sourced four submarines from Germany’s Howaldtswerke-Deutsche Werft (HDW). Two of these were built at MDL in 1992 and 1994, while the other two were delivered from Germany. HDW has since been taken over by TKMS.The Navy is facing an acute and rapidly worsening submarine shortage. It currently operates 16 conventional submarines, including 10 that are more than 30-year old. India’s conventional underwater fleet, operating on a mix of diesel-electric power, is now at roughly the same numerical strength as in the late 1990s.Other submarine projects in the pipeline include the construction of two nuclear-powered submarines, the leasing of a nuclear-powered submarine from Russia and a follow-on order for the next batch of Kalvari-class submarines. France’s Naval Group and MDL have already built six Kalvari-class submarines, while a follow-on order for three more is pending.The Navy is also upgrading the older German-origin HDW submarines in its fleet. Two of these vessels have already been upgraded, while work on two more is pending. In addition, the Navy is planning mid-life upgrades for the Russian-origin Kilo-class submarines, seven of which are currently in service.