NEW DELHI: In a bid to rescue India's underwater combat arm from sinking any further, the government has approved a huge cost escalation in the already mammoth Rs 18,798 crore project to construct six French Scorpene submarines at Mazagon Docks in Mumbai.
The Cabinet Committee on Security has given the formal nod to pay around Rs 2,000 crore more to French company DCNS\Armaris to get MPM (MDL procured material) packages for the submarines. These are crucial since they include all major systems connected with sensors, propulsion and the like for the vessels.
Despite both China and Pakistan rapidly bolstering their submarine fleets, the Scorpene project (P-75), under which one vessel was to roll every year from 2012 onwards, is already running over two years behind schedule, as was first reported by TOI.
Moreover, the government continues to dither over the proposed Rs 30,000 crore programme, called Project-75I, for the second line of next-generation submarines despite Navy pressing the panic buttons for its quick finalisation.
The main reason for the Scorpene project's delay has been the protracted negotiations for the MPM packages, with DCNS hiking its demand from around 400 million Euros to 700 million Euros for them.
This issue should have been sorted out when the Scorpene project MDL is fabricating the hulls but has nothing to put inside them at present was finalised in October 2005 itself. "It was a major goof-up by the defence ministry," said a source.
The main Rs 6,135 crore contract at that time was inked with M/s Armaris (DCN-Thales joint venture) for transfer of technology, combat systems and construction design, while the second one for Rs 1,062 crore was with M/s MBDA for sea-skimming Exocet missiles. The third Rs 5,888-crore contract was signed with MDL for indigenous submarine construction, with another Rs 3,553 crore earmarked for taxes and Rs 2,160 crore towards other items to be acquired during the project.
CAG reports, too, have blasted the government for taking nine years to finalise the Scorpene deal, which led to increase in the project cost by Rs 2,838 crore. Navy, on its part, has reason to be worried over the delays in P-75 as well as P-75I since it will be left with only nine out of its present fleet of 16 diesel-electric submarines (10 Russian Kilo-class, four German HDW and two virtually obsolete Foxtrot) by 2012-2013.
The number may further dip to just five by 2014-2015.
This when Pakistan is now looking to induct three advanced Type-214 German submarines, equipped with AIP (air-independent propulsion), after inducting three French Agosta-90B submarines, with the last one PNS Hamza even having AIP. China, in turn, has a staggering 62 submarines, with around 10 of them being nuclear-propelled, and at least one Xia-class and two Jin-class being armed with long-range nuclear missiles.
its pure business
