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India, France conclude negotiations on submarine deal
Monday, 11 November 2002, 20:30 IST
PARIS: France and India have concluded negotiations on a $2 billion deal on the sale of six French Scorpene submarines, official sources here said.
All outstanding issues, including the price India will pay for the sophisticated submarines, are believed to have been resolved when the Indo-French high committee on defense met here last week.
"We made great progress during the negotiations and the deal is now ready for consideration by the cabinet in New Delhi," a highly placed Indian source said, referring to discussions held during the committee's meeting here November 6 to 8.
The price of each Scorpene is believed to be close to 
15 billion or $300 million. India will pay nearly $2 billion for the deal, making it one of the biggest Indian purchases from the French defense industry in recent years.
The Scorpene submarine is capable of conducting anti submarine warfare as well as intelligence gathering operations.
The last major deal concluded by the two sides was the sale of 10 Mirage 2000 combat jets worth 15 billion to the Indian Air Force in September 2000. India is also believed to be in talks with France's Dassault Aviation to purchase 126 more Mirage fighters.
The submarine deal, which the two sides have been negotiating for the past three years, envisages technology transfers to allow India to build the Scorpene at its state owned Mazagon Docks in Mumbai.
India had established a submarine building line at Mazagon after concluding the controversial HDW submarine deal with Germany in the 1980s. India acquired four HDW submarines but the option of making more at Mazagon was never taken up as the deal came under a cloud following charges of kickbacks and corruption at the highest levels.
The facilities at Mazgaon have been unused for over a decade.
The Scorpene deal will ensure "real technology transfers" and give Indians "real time experience in the construction of a modern submarine", sources said.
Source: IANS
15 billion or $300 million. India will pay nearly $2 billion for the deal, making it one of the biggest Indian purchases from the French defense industry in recent years.
The Scorpene submarine is capable of conducting anti submarine warfare as well as intelligence gathering operations.
The last major deal concluded by the two sides was the sale of 10 Mirage 2000 combat jets worth 15 billion to the Indian Air Force in September 2000. India is also believed to be in talks with France's Dassault Aviation to purchase 126 more Mirage fighters.
The submarine deal, which the two sides have been negotiating for the past three years, envisages technology transfers to allow India to build the Scorpene at its state owned Mazagon Docks in Mumbai.
India had established a submarine building line at Mazagon after concluding the controversial HDW submarine deal with Germany in the 1980s. India acquired four HDW submarines but the option of making more at Mazagon was never taken up as the deal came under a cloud following charges of kickbacks and corruption at the highest levels.
The facilities at Mazgaon have been unused for over a decade.
The Scorpene deal will ensure "real technology transfers" and give Indians "real time experience in the construction of a modern submarine", sources said.
Source: IANS