The MOD has reportedly ordered an inquiry into the deal ,against the former head/director ,delays (3-4 yrs) extra costs,etc.Folks will remember that in the aftermath of the NDA defeat,the deal was put on hold and then renegotiated.PC then the FM was against the extra costs being asked for and it took some time before the deal was confirmed.However,Pranab M then denied the allegations,but the project ran into trouble thereafter.
The Scorpene Saga:
http://beforeitsnews.com/military/2013/ ... 50386.html
Some press reports also sought to establish a link between the Scorpene project and the breach of security that had occurred in the Directorate of Naval Operations in the Naval Head Quarters. On the issue of breach of security, during the course of a Court of Inquiry held in May 2005 by the Air HQrs, it was established that a pen drive recovered from Lt (Retd) Kulbhushan Parashar, a former Indian Navy Officer, contained classified information pertaining to the Directorate of Naval Operations. A Board of Inquiry was convened to hold a full investigation into the matter. The Board established that there had been a leakage of information, primarily of commercial value, to unauthorized persons. However, the leaked information did not pertain to the Scorpene project.
The Board severely indicted three Naval Officers namely Captain Kashyap Kumar, Commander Vinod Kumar Jha and Commander Vijyendra Rana. It also showed the involvement of some retired officers and civilians. The three Naval Officers severely indicted by the Naval Board of Enquiry were dismissed from the Navy on 26th October 2005, in exercise of the powers conferred under Section 15 of the Navy Act, 1957 read in conjunction with Regulation 216 of the Regulations of the Navy Part II (Statutory). One of the dismissed officers, Capt. Kashyap Kumar has filed a writ petition in the Delhi High Court in Nov. 2005 challenging his dismissal from Service.
On 18th February 2006, the Ministry of Defence referred the matter relating to the leakage of information from the Directorate of Naval Operations in the Naval Headquarters to the Central Bureau of Investigation for further investigation and filing of criminal proceedings against the dismissed officers as well as the civilians and retired officers involved in the leak of information".
On 14 November 2008 14 the NGO Centre for Public Interest Litigation, seeking CBI investigation into the Rs 1,600 crore Scorpene submarine deal, contended before the Delhi High Court that the Centre was trying to protect the middlemen involved in the deal. "Investigation of the CBI clearly points in the direction of the involvement of middlemen and payment of commissions in the Scorpene deal, the Government is still maintaining that no investigation is required," said NGO's counsel Prashant Bhushan. The petitioner alleged that 4 percent kickbacks were paid to middlemen in the the Rs 16,000 crore deal with French company Thales. The government informed the court that the investigating agency found no evidence of involvement of kickbacks in the deal. But on 19 December 2008 the CBI expressed its willingness to reconduct the preliminary inquiry into allegations of kickbacks in the Scorpene submarine deal after it failed to convince the Delhi High Court that it had made an honest effort to investigate the matter earlier.
Costs:The Indian Ministry of Defence, under pressure from the Indian Navy and facing an ultimatum from the French government, agreed to buy the six Scorpene submarines for $4.6 billion - $1.4 billion more than the price tag negotiated in 2002. The increased cost was blamed on the prolonged negotiations that invalidated the $3.2 billion price tag agreed in 2002. .....
DCNS, the French firm that developed the Scorpene, assured the Indian Navy in early 2008 that issues surrounding technology transfer had been taken care of and the first of the six Scorpene submarines would roll out by 2012. The remaining five were scheduled to follow at a rate of one per year. But by May 2008 the Rs 18,798-crore Scorpene submarine project had run into rough weather due to delay in technology transfer. The navy may not be able to induct the first submarine by the 2012 deadline, with the French yet to part with crucial details of technological know-how, including design and drawing documentation. A senior navy official confirmed to HT that the project had been delayed by a year due to "teething problems".
Complexity of the construction can be judged from the fact that the first submarine of the series will be delivered in year 2012 and the rest in the following five years one annually. By late 2007 there had been slippages in the gigantic Rs 18,798 crore project to construct six Scorpene submarines at MDL, slated for delivery between 2012 and 2017.
On 26 March 2009 French naval defence system contractor DCNS said there had been initial "teething trouble" in the transfer of technology for the Indian Navy's Scorpene submarine project but they had been resolved. Three of the six Scorpene submarines are being built at the Mazagaon Dock Limited (MDL) as part of the Indian Navy's P75 project. By one estimate the project is worth Rs 13,000 crore and all the submarines would be delivered by 2017 end, Patrick Boissier, Chairman and CEO of DCNS Group said.
Mazagon Dock Limited (MDL) is manufacturing SSK Scorpene submarines (P75) under transfer of technology (ToT) from DCNS. Simultaneously, DCNS India, DCNS Group’s subsidiary based in Mumbai, is working at the selection and qualification of Indian companies as partners for local production of the Scorpenes’ equipments. As of 2012 DCNS said that the first Scorpene submarine was to be launched at the end of 2013 and commissioned in 2015. The last Scorpene is expected to be commissioned in 2018. But DCNS also said they were to be delivered at a rate of one per year, and if the first were launched in 2013 and commissioned in 2015, the sixth would be launched in 2019 and commissioned in 2021.
http://www.globalsecurity.org/military/ ... ect-75.htm
Escalations now make the deal $4.5 billion,for just 6 subs ,that is almost $750million per sub fro the non AIP version,when the Akula-2 SSGN,4-5 times the Scorpene's size,40+ weapons vs 18,and virtual unlimited endurance and range,30kts speed as against 20kts.,costs ....er $900m,almost the same as the Scorpene too! Mischief,thou surely are afoot!Planned costs for the Project 75 deal had a range of reported figures, until a contract was signed. In the end, the reported figure was Rs 15,400 crore, or $3.5 billion converted equivalent at the time. Subsequent auditor reports indicated that the program would actually cost about 18,798 crore (about $4 billion), and escalations to 20,798 crore/ $4.38 billion and then 23,562 crore/ $4.56 billion have followed. That makes for about a 25.4% cost increase from the auditors’ baseline.
Tracking actual contracts is more difficult. Contracts signed as of August 2009 totaled INR 207.98 billion/ Rs 20,798 crore. The contracts were signed at different times, and will be paid over different periods, so a true currency conversion is difficult. A weakening American dollar and Euro have cushioned the increases somewhat, but most of the project’s cost involves local currency purchases. Contracts reportedly include:
Rs 6,315 crore contract with DCNS’ predecessor for transfer of technology, combat systems and construction design.
Rs 1,062 crore contract with MBDA for sea-skimming Exocet missiles and related systems
Rs 5,888 crore contract with MDL for local submarine construction
Rs 3,553 crore set aside for taxes
Rs 2,160 crore for other project requirements
Rs 2,000 crore added in March 2010 to cover added finalized costs of the “MDL procured material (MPM) packages”
Rs 2,764 crore unaccounted for yet in public releases, but envisaged in final INR 235 billion program costs.
http://www.thehindu.com/opinion/op-ed/i ... 829121.ece
PS:The many myriad quality problems of the British "Astute" are now too well know for it to compare with the proven Akula,wrong metal used-parts giving way ,wrong lead for reactor shielding-a very serious problem,etc., etc.,has made the Astute reflect anything but its name.State of art
In terms of the platform, the Akula II represents the state of art in SSN design, the programme having been launched in the mid 1990s. The nearest in terms of design vintage is the British ‘Astute' class also of the mid 1990s,but in terms of capabilities it is smaller and less accomplished; while the American Los Angeles class predates the Chakra by a decade. Also, the design philosophy harmonises with the orientation of our strategic nuclear submarine project.
As far as the economics of the matter is concerned, $920 million for a 10-year lease with certain support features attached must be viewed in perspective of what the SSN represents and the fact that a new SSN of similar capability with a 30-year life would have a price tag of about $3billion and a through life cost of (thumb rule) $9 billion would suggest that the deal is a sound one.
http://beforeitsnews.com/military/2013/ ... ttedPage=2
March 11/13: Torpedoes. Defense minister Antony offers a written Parliamentary reply to say that India still hasn’t finalized a contract for torpedoes. A Special Technical Oversight Committee (STOC) was convened to review the complaints about the proposed Black Shark buy, and approved it as fair and to procedure. The high-level political Defence Acquisition Committee accepted the report in September 2012 (6 months ago), and has done… nothing. The purchase has now been delayed for over 3 years.
Welcome to India. Part of the reason involves allegations that WASS’ parent firm Finmeccanica paid bribes to secure a contract for 12 AW101 VVIP helicopters. In Italy, its CEO is facing bribery charges, and has been deposed. That sort of thing could get the parent firm blacklisted, which would also scuttle the torpedo buy and could make it difficult for India to build its Vikrant Class indigenous aircraft carriers. As of March 11/13, Finmeccanica subsidiary AgustaWestland has been given a ‘show cause’ notice regarding cancellation, but had not had the contract cancelled, or been blacklisted. See also Jan 12/10, Jan 31/11, Oct 28/12. India PIB.
Jan 4/13: Investigation. India’s Central Vigilance Commission (CVC) has launched an inquiry against Commodore (ret.) Gopal Bharti, who heads up Project 75. The inquiry is in response to an unnamed internal whistleblower. the financial irregularities which include train fare reimbursement and taking his son abroad at public expense, aren’t earth-shattering. On the other hand, the CVC is investigating allegations that Bharti deliberately refused to place orders for 170 critical items, and are curious about the disappearance of 15 high pressure specialized underwater valves from his department.
Innocent until proven guilty, but the range of allegations are pretty broad. Times of India.