Despite repeated assurances, French defence major DCNS may not be able to deliver the first SSK Scorpene submarine to the Indian Navy by 2012, as scheduled under a six-boat project worth Rs 18,798 crore ($3.5 billion). Subsequent deliveries may, therefore, slip further by more than a year.
The delay is largely attributed to the reluctance of DCNS to reveal vital details of the submarine?s design and know how, reneging on terms of the technology transfer agreement. Technology transfer is an integral part of the deal for the construction of the six Scorpenes in India, and had been agreed upon at the time of inking the contract in 2005. The agreement includes providing technology and design details, consultancy and components to Mazagon Dock where construction of the first Scorpene submarine commenced last May. Work is reportedly lagging behind schedule, as the French are not prepared to share critical technical data.
While it is understood that such technology transfer requires clearance by the top brass of the French security authorities, it is strange that so far the French have not been able to offer a clear-cut solution to the problem.
The Scorpene project has already attracted adverse publicity following allegations that 4% of the deal amount was paid to a party represented by well-connected middlemen. The case will now be heard on July 14 when the Delhi High Court addresses the CBI report on the matter.
However, the CBI investigation is said to be making little headway as foreign banks and telcos, who are expected to provide valuable evidence, have failed to respond to its queries. The French firm has been linked to a number of similar scams in other countries. The 30-year submarine programme announced by the Navy envisages the induction of six Scorpenes submarines by 2017, also the construction of another six submarines with foreign collaboration. With four German Shishumar-class and two vintage Foxtrot-class submarines scheduled to be decommissioned in a matter of few years, the Navy?s defence capability may soon be out of its depth.