Intensive Negotiations Lead to Significant Savings in Scorpene Submarine Agreement with France

New Delhi: The initial price proposed by France and Mazagon Dock Shipbuilders Limited (MDL) for the three additional Scorpene class submarines was Rs 75,000 crore. However, the Indian Ministry of Defence engaged in rigorous negotiations, achieving a reduction of nearly Rs 40,000 crore.

The revised cost of the submarines is now approximately Rs 36,000 crore, leading to substantial savings for the Indian Navy and other defence services.

The pricing was collaboratively presented by MDL, Bharat Electronics Limited, and the French representatives.

The MoD acquisition wing has been actively involved in tough negotiations with suppliers, successfully saving crores of taxpayer funds.

This focused negotiation strategy was initiated during the tenure of former Defence Secretary Ajay Kumar, who emphasized that every rupee saved could be redirected to enhance other modernization projects for the armed forces.

India and France maintain a strong defence industrial partnership. In their recent meeting, Prime Minister Narendra Modi and French President Emmanuel Macron highlighted the urgent implementation of an R&D framework through a Technical Arrangement for collaboration in defence technologies between DGA and DRDO, thereby deepening their Research and Development ties.

Additionally, both leaders acknowledged the ongoing talks between L'Office National d'Etudes et de Recherches Aerospatiales (ONERA) and Defence Research and Development Organisation (DRDO) aimed at identifying technologies for R&D partnerships.

Moreover, India welcomes the participation of Indian students alongside their French counterparts in a recent challenge on distributed intelligence launched by the Interdisciplinary Center for Defence and Security from the Institut Polytechnique de Paris and promotes organizing more joint challenges in the future to stimulate student interest in defence.

Reflecting on the deep-rooted defence collaboration between France and India within the framework of their Strategic Partnership, President Macron and Prime Minister Modi also endorsed the ongoing cooperation of air and maritime assets as per the ambitious Defence Industrial Roadmap set for 2024.

Both leaders praised the advancements in the construction of Scorpene submarines in India, including indigenization efforts, particularly regarding the integration of DRDO-developed Air Independent Propulsion (AIP) into P75-Scorpene submarines, and the assessments conducted on the potential integration of the Integrated Combat System (ICS) into future P75-AS submarines.

They also celebrated the commissioning of the sixth and final submarine of the P75 Scorpene-class project, INS Vaghsheer, on 15 January 2025. Ongoing discussions in missiles, helicopter engines, and jet engines were similarly welcomed. The collaboration between the relevant entities in the Safran group and their Indian counterparts is commended. Furthermore, Prime Minister Modi invited the French Army to closely examine the Pinaka MBRL, emphasizing that its acquisition by France would mark another milestone in Indo-French defence relations.

President Macron also expressed enthusiasm for India's inclusion as an observer in the Eurodrone MALE programme managed by OCCAR, signifying another advancement in the strengthening of their partnership in defence equipment initiatives.

(Deepak Kumar is an Indian security and strategic affairs analyst specializing in geopolitics and geoeconomics. The views expressed are personal)