India to pay additional $438 million for the Project 75 Scorpene submarine program

The Indian government has approved additional funding valued at INR20 billion ($438 million) for the Project 75 Scorpene submarine program. This is in addition to the INR187.9 billion ($4.1 billion) already allocated to this program. The funds are to cover the purchase of contractor-supplied equipment packages for the submarines. These packages include all major systems connected with the sensors, propulsion, and weaponry for the vessels. The cost of the contractor-supplied equipment packages had risen from $543 million to $950 million since the construction contracts were signed for the submarines. Negotiations over the price increase have been stalled so long - since October 2005 - that the submarine hulls under construction have no combat system to put inside them. This has delayed the Project 75 program by two years. The Indian Navy has also been criticized for delays in the follow-on Project 75I program for a second tranche of six diesel-electric submarines. Without these boats, the Indian Navy could drop to five operational submarines by 2015.