Bloomberg quoted two senior officials directly familiar with the situation as saying that India’s effort to build six new diesel-electric submarines has now been delayed by a year and is expected to be delayed further.
The two officials, who did not want to be identified, said domestic contractors had made at least six complaints as the navy moved closer to selecting the winning bidder after key tests in June. for some key technologies needed for submarines, but did not name the companies involved. Each objection will need to be investigated before the process can proceed.
The complaints range from alleged violations of proper procedures to unclear instructions on how to conduct sea trials. The nature and timing of the complaints raise questions about whether contractors are trying to delay the project because they fear losing money, according to two officials.
Competing for the project to build six new Indian submarines include German defense manufacturer ThyssenKrupp Marine Systems, in partnership with state-owned shipbuilder Mazagon Dock Shipbuilders Ltd. of India and private shipbuilder Larsen & Toubro Ltd. along with Navantia SA of Spain.
According to the two officials, the Indian Ministry of Defense has established a committee to evaluate both proposals and advise the government on the final decision. The Indian Navy did not respond to an email requesting comment, according to Bloomberg.
The project to build six new submarines also represents a test for Indian Prime Minister Narendra Modi’s new defense procurement policy. That policy requires foreign manufacturers to cooperate and provide domestic companies with technology to make military hardware in India, the world’s largest arms importer.
Previously, the first of six new submarines were planned to join the Indian fleet early next decade as the process of decommissioning India’s old ships proceeds rapidly. India also plans to build two nuclear-powered submarines carrying conventional weapons.
India is currently believed to have 17 diesel-powered submarines and one nuclear-powered one. Of the 17 diesel-powered submarines, half have undergone many upgrades and improvements over the past three decades, but are now nearing the end of their operations, according to Bloomberg.