Navy strikes a bargain, 6 submarines at 2/3rd's the price
URL: http://www.india-defence.com/reports/317
Date: 10/9/2005
Source: DefenceIndia
After extracting a 3.5% discount from Airbus on the Indian airlines (IA) aircraft deal, New Delhi has renegotiated the price for purchase of ‘Scorpene’ submarines.
According to government sources, the defence ministry has managed to cut the deal size to $1.5 billion from the originally estimated $2.4 billion and has also protected itself from cost escalation due to foreign exchange fluctuations. India plans to purchase six submarines from French defence manufacturers DCN and Thales.
The sources told FE that a formal announcement is expected to be made during Prime Minister Manmohan Singh’s official visit to France on September 12.
In July, at the request of India, commercial teams of the French companies and the MBDA came for renegotiating the deal.
The submarines are to be delivered between 2010 and 2015. As part of the deal, the submarines would be armed with MBDA’s SM-39 Exocet anti-ship missiles. However, Naval headquarters is worried that its fleet “particularly the submarine strike arm” was de-commissioning vessels faster than it can acquire them.
URL: http://www.india-defence.com/reports/317
Date: 10/9/2005
Source: DefenceIndia
After extracting a 3.5% discount from Airbus on the Indian airlines (IA) aircraft deal, New Delhi has renegotiated the price for purchase of ‘Scorpene’ submarines.
According to government sources, the defence ministry has managed to cut the deal size to $1.5 billion from the originally estimated $2.4 billion and has also protected itself from cost escalation due to foreign exchange fluctuations. India plans to purchase six submarines from French defence manufacturers DCN and Thales.
The sources told FE that a formal announcement is expected to be made during Prime Minister Manmohan Singh’s official visit to France on September 12.
In July, at the request of India, commercial teams of the French companies and the MBDA came for renegotiating the deal.
The submarines are to be delivered between 2010 and 2015. As part of the deal, the submarines would be armed with MBDA’s SM-39 Exocet anti-ship missiles. However, Naval headquarters is worried that its fleet “particularly the submarine strike arm” was de-commissioning vessels faster than it can acquire them.
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