According to reports that appeared in Russian and Western media, the project will become less expensive by abandoning the use of Russia-designed Club missiles underwater launch systems. This, in turn, would cut the costs for their transportation to Italy and customs clearance. According to latest agreements, the ratio of Russian and Italian components in the sub now makes up 20 to 80 respectively (vs. the previous 50 to 50). Thus, Russia will have only one-fifth in the future submarine.
During the conceptual design stage, it was planned to equip the future submarine with Italian-French remote-controlled Black Shark torpedoes and Club complexes that may boast of many years of faultless operation. Why has Club become so expensive all of a sudden?
The fact that the boat has been designed for sales to not very wealthy third world countries - Egypt, Indonesia and Morocco. However, the list of potential buyers includes not a very "poor" country - South Africa.
If this is true, then we can safely rule out this submarine for IN's next procurement. After the French Scorpene, it seems unlikely that we will go for a French solution again. That leaves Germany & Russia in the race. Russia has an edge because apart from our strategic alliance & Brahmos partnership, Germany falls in the west camp from which we are already procuring Scorpenes.