Thursday, August 19, 2010
Additional $1 billion sanctioned for Scorpene submarines
12 Aug, 2010, IANS THE ECONOMICS TIMES
NEW DELHI: Admitting that the delivery of Scorpene submarines was facing "problems", the government Wednesday said it had sanctioned an additional Rs.4,764 crore ($1 billion) for the project signed with France in 2004.
"Delay in the scheduled delivery of the submarines is due to initial teething problems, absorption of technology and augmentation" of infrastructure and procurement materials in the Mazagon Dock Ltd," Defence Minister A.K. Antony informed the Rajya Sabha in a written reply.
The last of the six submarines, Antony said, "will be delivered in the second half of 2018".
He said the government has "recently sanctioned an additional amount of Rs.4,764 crore for the project".
India had signed the Rs.18,800 crore deal with France in 2004 for six diesel electric submarines to be constructed at the state-run Mazagon Dockyard in Mumbai. The first submarine is expected to be completed by 2012.
Antony said the shipyard had put in place "various plans to obviate any further delay".