Hussain Saqib
India
may have acquired a nuclear-powered submarine of a very old Russian vintage, it
only serves the purpose of power projection. The toothless power, so to say.
But its project of development of conventional submarine, Scorpene, in India
under a transfer-of-technology program is not faring any better. The whistle-blower report of India’s Auditor-General, the Controller and
Auditor-General (CAG), raises alarms and concerns.
The
report is clearly critical of the Scorpene acquisition. Indian Defense Minister
had to admit to India’s Parliament that the project was running about 2 years
behind schedule, due to “some teething problems, absorption of technology,
delays in augmentation of industrial infrastructure and procurement of MDL
purchased materials (MPM).” The CAG report criticizes the fact that the
submarine requirement was approved in 1997, but no contract was signed until
2005, and then for only 6 of the envisioned 24 boats. Overall, the project cost
had increased from Rs 12,609 crore in October 2002 to Rs 15,447 crore by October
2005 when the contract was signed. Once it was signed, the CAG believes that
“the contractual provisions resulted in undue financial advantage to the vendor
of a minimum of Rs 349 crore.”
The
overall project, which includes a submarine construction facility at Mazagon
Dockyards Ltd. (MDL), is placed at Rs 18,798 crore, or 187.98 billion rupees
(currently about $4 billion). The Times of India believes that the final
program cost will be over Rs 20,000 crore (currently about $4.3 billion), as
the cost of key equipment that MDL shipyards needs is rising quickly. Rediff
News notes other excerpts from the CAG report, adding that an accompanying Rs
1,062 crore deal for Exocet anti-ship missiles will have issues of its own:
“But
even before the missiles become operational on the submarine, the warranty
period of first two batches of the missiles supplied by the company would have
expired, it added. India also extended to the [submarine] vendor “Wide ranging
concessions” on warranty, performance bank guarantee, escalation formula,
arbitration clause, liquidated damages, agency commission and performance
parameters….”
The
update on the project is that the program has been delayed several times and
the price has gone up to $5 billion ($834 million each), a cost-over-run of 25%.
While this effort will leave India with thousands of workers and specialists
experienced in building modern submarines, all that will be wasted due to this
delay. The deal was mismanaged to the extent that it is now three years behind
schedule. But it is even more behind schedule if you count the several years delay
in even getting started. The original plan was to have the first Indian built
Scorpene delivered at the end of this year. But now, because of problems
getting the construction facilities and skilled workmen ready, the first
Scorpene won't be delivered until 2015, with one each year after that until all
six are delivered. That schedule is subject to change, and probably will, for
the worse.
According
to Strategy
Page, this is a not a good news because India's submarine fleet is dying of
old age and new boats are not going to arrive in time. The plan was to have a
dozen new subs in service by the end of the decade. At present, there will be
(with a bit of luck) six of them in service by then. The procurement
bureaucracy is still seeking a supplier for the second six diesel-electric
subs. There's some urgency to all this because this year, five of India's 16
diesel-electric subs (10 Kilo and two Foxtrot class Russian built boats and four
German Type 209s) were to be retired (some are already semi-retired because of
age and infirmity). Type 209s are being kept in service but not allowed out to
sea much for several more years, because of project delay. That leaves India
with 14 subs. But in the next year or so several of the older Kilos will reach
retirement age. Thus, by the time the first Scorpene arrives in 2015, India
will only have five or six working subs. India believes it needs at least 18
non-nuclear subs in service to deal with Pakistan and China. India is also
building and buying nuclear subs. India received a Russian Akula nuclear attack
(SSN) sub earlier this year. This one is on lease with the option to buy.
Indian SSNs and SSBNs (missile carrying boats) are under development, as they
have been for decades.
According
to comparative technical details publically available, the Scorpenes are
similar to the Agosta 90B subs (also French) that Pakistan bought in 1990s. The
first of the Agostas was built in France, but the other two were built in
Pakistan. The Scorpenes purchase was seen as a response to the Pakistani
Agostas. The Scorpene are a more recent design, the result of cooperation
between French and Spanish sub builders. The Agosta is a 1,500 ton (surface
displacement) diesel-electric sub with a 36 man crew and four 533mm (21 inch)
torpedo tubes (with 20 torpedoes and/or anti-ship missiles carried). The
Scorpene is a little heavier (1,700 tons), has a smaller crew (32), and is a
little faster. It has six 533mm torpedo tubes and carries 18 torpedoes and/or
missiles. Both models can be equipped with an AIP (air independent propulsion)
system. This enables the sub to stay under longer, thus making the sub harder
to find. AIP allows the sub to travel under water for more than a week, at low
speed (5-10 kilometers an hour). The Pakistanis have an option to retrofit AIP
in their current two Agostas.
While
India was largely concerned with the Pakistani navy when the Scorpene contract
was negotiated and signed, China is now seen as the primary adversary due to a
new role assigned to India by the US. The Chinese subs are not as effective as
the Pakistani boats; both because of less advanced technology and less well
trained crews. India could use their Scorpenes to confront any Chinese attempt to
expand their naval presence into the Indian Ocean. Thus the delays and cost
overruns with the Scorpenes are causing quite a lot of commotion in India. But
at the rate India is going, it will be nearly a decade before all six of the
Scorpenes are in service. At that point, India would have about a dozen subs
(including nuclear powered models under construction). China will have over 60
boats, about 20 percent of them nuclear. China does have a lot for its warships
to deal with off its coasts and in the Western Pacific but it does retain the
capability of putting more subs off the Indian coast than can the Indian Navy.