New Delhi: Contracts for the indigenous construction of six French scorpene class submarines at Mazagon Dock Limited (MDL), Mumbai, were signed on Oct 06, 2005. The total cost of the project sanctioned by the Government is Rs. 18798 crore including Rs. 3553 crore as taxes.
The project cost is inclusive of Rs. 2160 crore provided as budgetary estimate for Torpedo, portable Deep Water Noise Range, Base and Depot spares and MDL infrastructure. It also includes the cost of contract between MDL Mumbai and M/s Armaris, France; MDL and Government of India; and Government of India and M/s MBDA, France.
In 1997, the Government approved construction of two submarines at M/s MDL, Mumbai. Though the Request for Proposals were sent to four firms, viz. M/s Thomson CSF, France VSEL (UK), M/s Kockums (Sweden) and RVZ, Russia, only M/s Thomson CSF, France responded. M/s HDW, Germany was not considered as CBI was investigating certain allegations against the firms. Price negotiations were held with M/s Thomson CSF, France.
However, no contract could be signed due to reluctance of the French Government to release missiles for the submarines and inadequate explanation of the cost of programme and logistic package. Thereafter, the Government decided to approve the proposal for the indigenous construction of six scorpene submarines under Transfer of Technology.
In 1999, Government approved long term perspective plan for construction of 24 submarines and acquisition of national competence in submarine building. Out of the 12 submarines to be constructed in phase I, six are to be of western origin while the other six would be of Amur or other appropriate class. Russian Amur class submarines were not considered as the same were not envisaged for induction under the proposed production line.
The transfer of the build technology of the Scorpene submarines would enable the Indian Navy to undertake modifications and replacement of equipment from third submarine onwards. This information was given by the Defence Minister Shri Pranab Mukherjee in a written reply to Shri Rama Muni Reddy Sirigireddy in Rajya Sabha today.