India may contribute to a Australia-French submarine project

[ashok321]

http://economictimes.indiatimes.com...ch-submarine-project/articleshow/53296002.cms

NEW DELHI: India may contribute to a submarine project involving Australia and France by obtaining sub-contracts in the initiative in what could be Delhi's first such foray in an international defence venture.

"India and Australia as decided during PM Narendra Modi's visit to Australia in 2014 have ventured into the areas of defence collaboration and joint research. While India's DRDO chief visited Australia, our top defence scientist visited this county to explore joint defence ventures. As part of this collaboration Indian firms may obtain sub-contracts in Australia's submarine project with France," Australia's High Commissioner to India Harinder Sidhu told ET in an exclusive interaction on the growing bilateral strategic and defence partnership.

India has experience with working on French submarines and this expertise can contribute to the Aussie-French project, said Sidhu. The Modi government has been working on a defence exports plan to friendly countries across continents. Couple of months back, France won $40 billion deal to build a fleet of 12 submarines for Australia. French state-owned defence firm DCNS won the contract with Australia, increasing defense budget to safeguard its strategic and trade interests in the Asia-Pacific region.

Pointing out that Indian Navy and Army Chiefs visited Australia during the past 12 months, the envoy said that this signals expanding defence partnership that has been marked by Delhi's growing interest in the Asia-Pacific region.

But it is not just defence that's driving India-Australia strategic ties as Canberra is pushing India's membership in the coveted Nuclear Suppliers Group (NSG) notwithstanding strong opposition from China. "Australia strongly supports India's bid for mem bership of the NSG and was disappointed that consensus was not reached on India's application for admission to the group at its recent plenary meeting... Australia will continue to work with other participating governments to resolve questions around admission of states not a party to the Treaty on the Non-Proliferation of Nuclear Weapons. We consider it important for significant nuclear suppliers to be inside the tent rather than outside," said the Indian-origin High Commissioner.

Sidhu is also hopeful that Australian uranium exporters, which are private entities, would be able to supply the much needed metal to Indian recipients for power generation in future. Delhi and Canberra had signed civil nuclear deal in 2014, eyeing Australia's uranium reserves which are highest in the world.

However, uranium is not the only item that Australia is hoping to export as it seeks conclusion of Comprehensive Economic Cooperation Agreement to increase volume of bilateral trade. "This will have head-turning impact on India Australia economic partnership," the High Commissioner said, pointing out that Australia could be the market for Indian auto exporters. Australia is one of the biggest importers of motor cars.

 

[[Bregs]]

This is going to be a useful exposure for Indiana engineers in an international project

 

[sudhir007]

France won $40 billion deal to build a fleet of 12 submarines for Australia. French state-owned defence firm DCNS won the contract with Australia

Why the Price is so high $3.4 billion for one submarine

 

[ashok321]

Why the Price is so high $3.4 billion for one submarine

Because their is a 3rd party involved in this deal called USA, who has its own share of combat/weapon systems to be built into the sub:

More choices remain for the submarine program, which is specified to have a US combat systems integrator and employ US weapons. Australia reportedly is considering bids from Raytheon and Lockheed Martin — each already working on the Royal Australian Navy’s Air Warfare Defense destroyer, fitted with Lockheed’s Aegis radar with integration from Raytheon.

Installing a US combat system is one of the reasons for building the subs in Australia rather than France, as there is sensitive technology involved, said Robbin Laird of consultancy ICSA, based in Washington and Paris.

 

[Nilgiri]

Why the Price is so high $3.4 billion for one submarine

It had to be changed from SSN to regular SSK because the Aussies were against nuclear propulsion which added to the final cost. On top of what is mentioned above.

 

[MKC]

Why the Price is so high $3.4 billion for one submarine

I think this also includes inflation cost as some submarines will be inducted even after 2030.

 

[Nilgiri]

I think this also includes inflation cost as some submarines will be inducted even after 2030.

Good point, its probably an amortized cost like you said.

 

[PARIKRAMA]

Thats Australian $

DCNS of France has been selected as our preferred international partner for the design of the 12 Future Submarines, subject to further discussions on commercial matters.

Along with our recent naval shipbuilding announcements, the commitment to an Australian build will create a sustainable Australian naval shipbuilding industry and provide the certainty that industry requires to invest in innovation and technology and grow its workforce.

The Future Submarine project is the largest and most complex defence acquisition Australia has ever undertaken. It will be a vital part of our Defence capability well into the middle of this century.

This $50 billion investment will directly sustain around 1,100 Australian jobs and a further 1,700 Australian jobs through the supply chain.

Source: http://www.minister.defence.gov.au/...joint-media-release-future-submarine-program/

30% of the program cost is spent on French Shipyards who will do work on these Subs. Rest all are to be build in Adelaide where the whole setup of line will be done by DCNS. and particularly some technology will be shared.

So the cost that comes out includes the cost of setting up line (offset) and cost of technology + inflationary adjustment as this is a long term program and first sub handover is closer to 2035 timeline and last may be a decade plus years later.

So we cannot say its $3.4 Bn bcz its inflation adjusted just like whole program cost is also inflation adjusted and contains things as i mentioned above.