Update on Six French Scorpene Class Submarines for the Indian Navy

Indian Ministry of Defence, Three contracts were signed for the indigenous construction of six French Scorpene class submarines at Mazagon Dock Limited, Mumbai on 06 October 2005. The contracts were signed with M/s Armaris, France, M/s MBDA, France and the Defence Public Sector shipyard, Mazagon Docks Limited, Mumbai. 
 
In 1997, the Government approved construction of two submarines at M/s MDL Mumbai. Though the Requests for proposals were sent to four firms, viz. M/s Thomson CSF, France, VSEL (UK), M/s Kockums (Sweden) and RVZ, Russia, only M/s Thomson CSF, France, responded. 
 
M/s HDW, Germany was not considered as CBI was investigating certain allegations against the firm. 
 
Price negotiations were held with M/s Thomson CSF, France. Thereafter, in April 2001, the Government decided to conduct negotiations only for the indigenous construction of six Scorpene Submarines under Transfer of technology. Negotiations were held with the vendors and the same were completed in 2002 and the Ministry of Finance approved the Project in December 2002 and May 2003. 
 
The project was re-examined and negotiations were held with Vendors in 2005. This resulted in a reduction of Rs. 313 cores in the contracts with two French Firms from the negotiated position in 2002, besides achieving substantial long terms concessions. To ensure transparency, Integrity Pacts were signed by the Ministry of Defence for the first time. The Integrity Pacts signed with two vendors has stringent provisions against the use of unfair means and employment of any middlemen in the project. 
 
The French Vendor that is transferring technology for the construction of the submarines and collaborating in the project has denied appointing any agent and all allegations regarding the involvement of middlemen in the project. 
 
This information was given by the Defence Minister Shri Pranab Mukherjee in a written reply to Shri SS Ahluwalia in Rajya Sabha today.