Govt to kick off Rs 60,000 crore submarine plan

[noksss]

NEW DELHI: The government is all set to roll out the process for a Rs 60,000-crore submarine programme, moving swiftly after unveiling a major policy for defence manufacturing in the country.

The project is set to be the first one to be launched under the ambitious 'Strategic Partnership' (SP) model finalised last month which aims to rope in leading private players for defence production.

The Union defence ministry is likely to issue the 'expression of interest' for the project soon, to kick-start the process for the mega deal, official sources said. Engineering conglomerate Larsen and Toubro and Reliance Defence are the only two defence firms eligible to participate in the P-75 (I) programme, said another source.

The government will subsequently initiate the process to shortlist foreign original equipment manufacturers (OEMs) for the project based on norms laid down in the strategic partnership model. Six Scorpene-class submarines are currently being built under 'Project 75' of the Indian Navy. The submarines, designed by French naval defence and energy company DCNS, are being built by Mazagon Dock Limited in Mumbai. The project P-75 (I) will be a follow-on project of Project 75. A total of six submarines are to be built under the P-75 (I) project.

Under the SP model, select private firms will be engaged to build military platforms like submarines and fighter jets in India in partnership with foreign entities.


A 49% FDI cap has been kept for setting up ventures under the strategic partnership model for production of defence platforms and the companies will be in control of Indian entities. As per the framework, to manufacture major defence platforms, select Indian companies will require tieups with OEM for transfer of technology

http://timesofindia.indiatimes.com/...crore-submarine-plan/articleshow/59100577.cms

 

[Dark Lord Forever]

Thank you for poting this news.

What is statigic partnership? How this is diferent from current french scorpio deal? Isn't private company having jv with french for building submarines?

And also why India simply doesn't buy more scorpio submarines? Isn't it make sense to buy more of same rather then going to issue new tender?

Also isn't it will be expencive for india to maintain lots of different submarines from differnt countries?

So many questions.

 

[lilaspr]

I believe, these 3 are in consideration:


Type 214 (Germany)
Scorpene class (France)
Amur-class (Russia)

Amur-class seems to me most favorable, as it can fire Brahmos and India already operate few Russian subs.

 

[bdslph]

will it also be assembled in India or make in india

 

[anant_s]

What is statigic partnership?

Think of it as a technical Joint venture between a domestic company which shall manufacture a product with foreign collaboration. The Foreign company shall furbish guarantee for long term support of its product to Government of India.

How this is diferent from current french scorpio deal?

Existing P 75 project is being executed by State run MDL and the agreement is directly between DCNS and Indian Government. In new Private supplier model, the agreement is between GoI and JV of private sector company and its foreign collaborator.

Isn't private company having jv with french for building submarines?

As of now, in India, NO.

And also why India simply doesn't buy more scorpio submarines? Isn't it make sense to buy more of same rather then going to issue new tender?

It does make a lot of sense to have same platform, especially when you have a program on-going. However defence contracts usually have a Reservation of Rights clause that allows buyer to purchase more than tendered quantity (called Additional Quantity) at same rates to that of original contract.
Unfortunately Scorpion program is running almost 5 years delayed and with India getting access to more products and Navy's vision of inducting all future subs with AIP, a decision, of going for global competitive bidding was taken.
We must also note that this is first time, Private participation is invited (to reduce workload on State run ship builders) and therefore makes sense to allow private companies to select their partner and product.

will it also be assembled in India or make in india

Some components will be imported, but a significant portion will be built in India.