Nod For Additional Scorpene Submarines Still Awaited From MoD

The contract for three additional Scorpene-class submarines—intended to be larger and more capable than the current fleet—remains stalled, with government clearance still pending despite the completion of cost negotiations in the previous fiscal year.
The Indian Navy had aimed to finalise the contract before March 31, 2025, but as of July, formal approval from the relevant authorities has not been granted, leaving both the Navy and Mazagon Dockyard Limited (MDL) in a state of uncertainty.
The proposal for these submarines was initiated on August 11, 2023, as a repeat order under Project 75, with a planned delivery schedule of 72 months per submarine. The Navy processed the procurement under the Buy (Indian) category of the Defence Acquisition Procedure (DAP) 2020, which requires at least 60% indigenous content. However, the initial bid from MDL exceeded ₹50,000 crore, prompting the Navy to request a revision. After negotiations, the cost was reduced to ₹36,000 crore.
The delay is particularly concerning given the Navy's growing challenges in the underwater domain, especially with ongoing submarine modernisation by Pakistan and China. The additional Scorpènes are seen as a stopgap measure to address capability gaps caused by delays in the larger Project 75(I) initiative.
MDL, having completed all six of the original Scorpene submarines, currently lacks new projects, leaving its skilled workforce idle. The Navy is pressing for swift contract approval, noting that even if signed immediately, the first new submarine would not be delivered for at least six years. Continued construction is also critical to maintaining an active and efficient supply chain, as current servicing of the existing fleet is hampered by disruptions and inefficiencies.
A significant difference in the new batch is the requirement for 60% indigenous content, a major increase from the less than 30% (and possibly below 20% in practice) in the first six submarines. This will involve a substantial increase in Indian-made components and is expected to encourage the French partner, Naval Group, to strengthen their supply chain presence in India, improving submarine serviceability.
Key upgrades in the new submarines include:
Larger Size And Endurance: Nearly double the mission duration due to improved accommodations and storage.
Increased Firepower: Capacity for more than twice the weapon load of earlier Scorpènes, with provisions for future upgrades.
Modernised Propulsion: Updated electric motors for lower power consumption and easier maintenance.
Improved Logistics: Diesel generators from a new supplier with better after-sales support.
Potential Outsourcing: MDL may subcontract some work to private shipyard L&T. Diesel generators from a new supplier with better after-sales service and support for the Indian Navy.
The construction of new Scorpene submarines is expected to significantly improve the supply chain efficiency for the Indian Navy. Currently, servicing the existing Scorpene fleet is delayed due to supply chain disruptions and inefficiencies. Building new submarines will help maintain an active supply chain, ensuring the availability of spare parts and technical support, which in turn should reduce maintenance turnaround times.
The first six Scorpene submarines were officially reported to have less than 30% indigenous content, but sources indicate the actual figure is likely below 20%. This low level of local content has contributed to the supply chain challenges, as more components and expertise need to be sourced from abroad, leading to delays and complications.
The new batch of Scorpene submarines is planned to meet a 60% indigenous content requirement, meaning a substantial portion of components will be manufactured in India.
This shift is expected to:
Strengthen domestic manufacturing capabilities and reduce reliance on foreign suppliers.
Encourage foreign partners, especially the French Naval Group, to deepen their supply chain presence in India, which should further improve the availability of spares and technical support.
Enhance serviceability and reduce maintenance delays for both current and future submarines by ensuring more parts and expertise are locally accessible.
These improvements, combined with the higher indigenous content, are expected to address current supply chain bottlenecks and ensure more efficient and reliable operations for the Indian Navy's submarine fleet.
Both the additional Scorpene project and Project 75(I) are in limbo, with MDL and the Navy awaiting a long-overdue government nod. The delay threatens not only the Navy’s operational readiness but also the momentum and expertise built up at MDL, while also risking further supply chain disruptions and workforce idleness.
Agencies
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