Navantia Loses $5 Billion Submarine Contract

Spanish shipbuilder Navantia has lost a $5 billion contract to build six submarines for the Indian Navy. The contract was awarded to German company Thyssenkrupp Marine Systems (TKMS) and Indian shipbuilder Mazagon Dock Shipbuilders (MDS). The decision was based on technical reasons, as Navantia’s proposal did not meet the requirements for a proven Air-Independent Propulsion (AIP) system. Despite efforts by the Spanish government, including a visit by President Pedro Sánchez, the Indo-German alliance advanced in negotiations and has been called for the first round of commercial talks.

Spanish shipbuilder Navantia has suffered a major setback after losing a $5 billion contract to build six advanced submarines for the Indian Navy. The contract was instead awarded to German defense giant Thyssenkrupp Marine Systems (TKMS) and India’s Mazagon Dock Shipbuilders (MDS) under Project-75I, a strategic initiative to enhance India’s submarine warfare capabilities.