Indian Scorpene Submarine Acquisition in Limbo

Sea Power, Apr 2004

As of mid-February, the Indian Navy and the French government still had not resolved their differences over the technical issues associated with a proposed Scorpene-class attack submarine deal. The deal, worth $1.6 billion, was generally agreed upon in November 2002.

However, delays have persisted because of technical difficulties and technology transfer issues. A meeting between French Foreign Minister Dominique de Villepin and Indian Foreign Minister Yashwant Sinha Feb. 13 did not resolve the issues. However, Sinha said that, while technical hitches remain, the decks were cleared for the deal.

The meeting came amid a general slide in Franco-Indian relations during the past two years. Both sides are attempting to improve relations and finish the deal for the Scorpene as well as other military arrangements. According to sources, hurdles will remain in place until at least the end of the year, as fences are mended and the final technical issues are cleared for a contract signing.