French company Naval Group has pulled out of bidding process a day before PM Narendra Modi’s visit to Paris

Even as India's submarine building plan is already running behind schedule, the latest project to make six submarines has also run into rough weather.

Even as India’s submarine building plan is already running behind schedule, the latest project to make six submarines has also run into rough weather. French company Naval Group has pulled out of the bidding process, making it the third firm to opt out.

Sources said the major hurdle relates to having working air independent propulsion (AIP) system that allows a conventional submarine to stay submerged in water at higher speeds for a longer period of time. The AIP is still under development. The other issue is of transfer of technology over which issues remain unresolved.

In June last year, the Defence Ministry had cleared P-75I (submarine making project) under strategic partnership model. Indian private companies Larsen and Toubro and Mazagaon Docks Limited were selected as Indian partners under the model.

One of the five foreign companies that would finally be selected on the basis of technical and financial bids, besides the offer on transferring technology or know-how, would be asked to collaborate with the Indian partner.

The French Naval Group’s announcement comes a day before PM Narendra Modi’s visit to Paris where he is scheduled meet French President Emmanuel Macron.

Laurent Videau, Country and Managing Director, Naval Group India, was quoted as saying, “Due to certain conditions in the RFP (request for proposal), the two strategic partners could not forward the request to us, thus we have not been able to place an official bid for the project.” India’s existing submarine plan announced in 1999 spoke of having 24 modern submarines by 2030. So far, only five have been commissioned — four Scorpenes named Kalvari class and INS Arihant nuclear-powered boat.

Two more of the Kalvari class are set be commissioned in 18 months while the construction of more nuclear-powered vessels is on under a separate project. The Navy, as on date, operates 17 submarines, including four Kalvari class and four Howaldtswerke-Deutsche Werft German-origin Shishumar-class boats that are in their fourth decade of service. There are also eight Russian Kilo-class boats, some of them older than three decades, and INS Arihant. The numbers — only 17 — are woefully inadequate to protect and dominate a vast sea on either side of the country. Some 97 per cent of Indian trade is via the seas lanes.

French Company Latest To Opt Out

French firm Naval Group has pulled out of bidding process
Russian Rosoboronexport & German ThyssenKrupp Marine opted out earlier
Project calls for making 6 subs in India at cost of Rs 43,000 cr
Navantia of Spain and Daewoo of South Korea are other two companies in the fray