New Delhi: The Indian Navy has finalised an over Rs 36,000 crore deal with state-run Mazagon Dockyards Limited (MDL) to procure three additional Scorpene submarines, a contract for which is likely to be signed by 31 March, this fiscal, ThePrint has learnt.
The finalisation of the proposed deal, which will be signed in India between the Defence Ministry and the MDL, comes ahead of Prime Minister Narendra Modi’s visit to France for the Artificial Intelligence Summit, this week.
Incidentally, the over Rs 36,000 crore bill, cost negotiations for which have been completed, does not include the cost of the fitment of any Air Independent Propulsion (AIP) system.
Sources in the defence establishment said that the new additional Scorpene will come with 60 percent indigenous content, which is nearly twice of the six Scorpene submarines built by the MDL in collaboration with French firm Naval Group.
They also said that the three new submarines will see certain design changes and will be similar to the one being supplied to the Brazilian Navy. This also makes the three slightly larger than the previous six.
Asked why the cost of additional Scorpene submarines was so high, the sources said that this was the best price that could be negotiated and it will have larger indigenous content.
The total cost of the first six is only about Rs 36,000 crore, with cost escalation. Otherwise, the six Scorpene deal was originally inked for Rs 21,000 crore.
Sources said that the first quote for three additional Scorpenes was so high that the Indian Navy was shocked and had to send back the proposal. The second quote that MDL had set in was still higher than what the Indian Navy had anticipated and it was finally reduced to the final amount.
While originally there was no plan to procure three additional Scorpenes, the project was mooted because the Project 75 India—under which the Indian Navy was to procure six new submarines with AIP—got delayed.
Besides the conventional diesel-electric submarines, the Indian Navy plans to commission its first fully indigenously designed nuclear attack submarines (SSNs) by 2036-37 and the second one in about two years from then.
While India has a separate programme for nuclear ballistic missile submarines (SSBNs), their funding is through a separate system and they operate under the Strategic Forces Command (SFC).
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