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Tuesday, June 9, 2009

Indian Navy’s sub project slips on time, climbs on cost


In a major blow to Navy's already shrinking underwater combat capabilities, the mammoth Rs 18,798 crore project to construct six Scorpene submarines at Mazagon Docks Ltd (MDL) in Mumbai has now slipped around two years behind schedule. Defence ministry sources say the latest assessment shows the delivery of the first submarine, initially scheduled to roll out by December 2012, would not be possible before end-2014. Moreover, the entire project is going to be hit with a huge cost escalation, which will take total costs much beyond Rs 20,000 crore, because France is demanding virtually double the money to supply some critical equipment to MDL. "Negotiations for these `MDL procured material packages', which include almost everything other than combat systems, have been underway for a year now. The French say costs have doubled since the contracts were inked in October 2005,'' said a source.

"Consequently, though submarine hulls are being fabricated in MDL, there is nothing to put inside them at present. MoD has now approached the Cabinet Committee on Security for fresh approval for the cost escalation,'' he added. The October 2005 contracts with French companies include the Rs 6,135 crore one with M/s Armaris (DCN-Thales joint venture) for transfer of technology, combat systems and construction design, and Rs 1,062 crore with M/s MBDA for sea-skimming Exocet missiles. A Rs 5,888-crore contract was also 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.

Navy, on its part, hopes the lost time can be made up to some extent if the approvals come quickly for the Project-75 Scorpene project. All the six submarines were to be initially delivered by December 2017, one per year beginning from 2012. A big delay will hit Navy hard since its projections show 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 Foxtrot — by 2012. As it is, the Foxtrot submarines are obsolete now, and the number could further dip to just five by 2014. This is alarming since both Pakistan and China are rapidly augmenting their underwater combat capabilities. After inducting three French Agosta-90B submarines, with the last one PNS Hamza even having air-independent propulsion (AIP) to boost its operational capabilities, Pakistan is now looking to acquire three advanced Type-214 AIP-equipped submarines from Germany. China, of course, is way ahead. It has 62 submarines, with around 10 of them being nuclear-propelled, and at least one Xia-class and two Jin-class being SSBNs (nuclear submarines with long-range ballistic missiles).

Though India has also begun its hunt for six more new-generation submarines under Project-75A, worth over Rs 30,000 crore, it will take "several months'' before even the global tenders (request for proposals) are floated for them. "Initial information obtained from Russian (Rosoboronexport), French (Armaris) and German (HDW) firms, among others, are being studied at present. We want P-75A submarines to have a high degree of stealth, land-attack capability and AIP,'' said an official. There is also the indigenous secretive ATV (advanced technology vessel) programme, under which the first of the three nuclear-powered submarines being built is to be "launched into water'' on August 15. But a fully operational ATV, with SLBM (submarine-launched ballistic missile) capabilities, is at least three years away. Navy, incidentally, will also get the Russian 12,000-tonne Akula-II nuclear-powered attack submarine on a 10-year lease by this year-end.

11 comments:

IN apathy towards the submarine fleet can be partly explaine by the fact that IN is primarily a sea control Navy and not a sea denial one. Subs are primarily meant to attack enemy surface fleet. And ASW assets are required to counter enemy subs. Sub to Sub engagement is usually a chance encounter except of SSN and SSBN. So what do you do with subs when the enemy doesn't have much of a surface fleet? But this may change if Chinese Navy finds hold in Indian Ocean and I hope it does. Nothing moves at MOD untill a crisis is reached.

our admiral was shouting for price hike for gorshkov in 2007 and at 946 million for this ship is pretty cheap knowing that ship is being build inside out

Sevmash have not got payments from the Indian party for two years and that did not allow expanding works on the ship in full.

and india still has to pay 246 million more to cover up and make it to 946 million

and as for delay of this ship scorpene sub indction has been delayed for 2 years and total time since scorpene bought to induction now will be over 9 years

how an a gorshkov class ship can be deliverd in just 5 years

now both p15a,p17 are delayed as well

and why the hell admiral's tongue is quite over DCN and MDL now

To Anonymous @ June 9, 2009 10:54 AM

Best counter to enemy submarines is a submarine especially in area where surface and air fleet won’t be able to maintain the continuous petrol due to enemy’s forces. But you are right Indians will soon be forced to pay attention given the great deal of investments china is making in its navy


Anonymous @ June 9, 2009 11:50 AM

You have almost summed it up very well

chinese navy first has to deal with s.korea,japan and US in pacific indian ocean is to far

AD, in area where surface and air fleet won’t be able to maintain the continuous patrol due to enemy’s forces is where enemy has surface control. Subs have little role where you have surface control. They are menant to strike enemy controlled areas with stealth. You wont need to counter enemy subs in their controlled areas.
Sub against sub is best suited in case of nuclear subs where SSN are always chasing SSBN in vast oceans where no one can maintain surface control.

To Anon@June 9, 2009 11:50 AM: The delay in Scorpeon is because of MDL and not DCN. Had we been realistic we could have acquired first 1-2 subs from France like others have.
But in case of Russians we are the customers and can put our feet up. A liberty not available to the Admiral against GOI controlled PSU.

Another Indian project with budget overruns. Like all of them ...

to anon June 9, 2009 9:16 PM

But in case of Russians we are the customers and can put our feet up. A liberty not available to the Admiral against GOI controlled PSU.
---------------------------------
despite our admiral already knew that a ship of 44000 tons being built inside out takes some time and that too in less than a billion dollar is no joke even then he had problem with this?????

aussie wedgetail got delayed 3 years but no one in australia shouting on boeing or US like our defence minister and admiral did

french sole carrier took 13 years to operationalize.

italian cavour took 8 years to be built although its just 22000 tons

so what else he wanted from russia

now 3 krivaks being built in russia cost 1.6 billion,how much we have to pay for same if we buy from europe????

To Anon@June 10, 2009 5:12 AM:
Shouting at Russia helps at negotiating on our terms. Everyone does that. Aussis are weeping everywhere over wedgetail delay and are threatning to review the contract.
BTW why are you offended if Russia gets shouted at. There is no place for sympathy in business.

to anon above

u may think so.

but the truth will reamin the same that even after cost escalation groky will still remain cheaper.

and u are right they are weeping over wedgetail and they should weep over thier f18e buy as well

China claims (as usual falsely) that she has nuclear powered submarines. The only country which genuinely operates nuclear powered submarines in Asia is India.

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