Indian defence PSU Mazagon Dock Shipbuilders Ltd (MDL) and Germany’s Thyssenkrupp Marine Systems on Wednesday signed an MoU to participate in a submarine Project-75I tender by the Indian Navy that is worth around $5.2 billion.

The agreement was signed in the presence of MDL CMD Vice Admiral (retired) Narayan Prasad and visiting German Minister of Defence Boris Pistorius at the defence PSU’s facility in Mumbai. Now the the consortium will bid in the RFP floated by the Indian Navy for six conventional submarines that would be manufactured here under Buy Indian category. The second bidder is L&T which also has tied-up with another foreign OEM for bidding.

As per the MoU, Thyssenkrupp would offer engineering and design and Mumbai-based MDL will be constructing the six submarines for acquisition by Navy, sources aware of details said. MDL is not new to German submarines. Earlier also the German HDW was contracted by India for four submarines for Navy. Two out of the four was manufactured by the MDL.

“We look back on a trusting and decade-long partnership with India. The boats we built in the 1980s are still in service today,” Oliver Burkhard, CEO of Thyssenkrupp Marine Systems and a member of Thyssenkrupp’s management board, told a internal news agency. “We are very proud of that and would be delighted to continue contributing to India’s national security in the future. We are ready when India calls,” he added.

A day before, German Defence Minister Pistorius had made public the submarine tie-up after meeting his Indian counterpart Rajnath Singh in Delhi. He also stated that the consortium would be better placed in the tendering process which has still not been finalised. Pistorius is on a four-day visit to India to strengthen defence ties.