India's plan to lease a cutting-edge nuclear attack submarine to help obtain technical knowhow for an indigenous project has run aground, with Russia seen to be backing out of the deal for as yet unknown reasons.
Senior officials in Delhi and Moscow told ET that the plan to lease the Yasen-class attack submarine - two of which are in service with the Russian navy - is being reconsidered after fairly advanced talks on the project.
India was keen to acquire the latest Russian submarine so that it could participate in the construction of a new boat in Russia from scratch and give planners and designers in the navy here a rare peek into the building process of one of the most complex military systems in the world.
By being involved in the process from the beginning, India would have gained expertise for an indigenous project to produce six nuclear-powered attack submarines for the navy under a Rs 1-lakh-crore project that was cleared by the Modi government in February. Talks were at an advanced stage with NSA Ajit Doval, too, said to be involved.
However, ET has learnt that Russia is reconsidering the matter and has now offered India one of its older, Akula-class submarines on lease, similar to the Chakra II currently in service with the Indian navy on lease. "The plan now is to lease an attack submarine that is in service with the Russian navy. This submarine would be deeply modernised to meet Indian requirements," an official familiar with the developments told ET.
While the Indian navy has been taken aback with the development, efforts are still on to rescue the Yasen project, with planners said to be against the lease of older generation nuclear submarine from Russia. "We are hoping for a resolution and there is a possibility that this (the refusal) is a negotiating tactic. We have not closed hopes on the project yet," an Indian official told ET.
The circumstances behind the blockage are unclear, although sources point out that the funding for Yasen-class submarine could be an issue. Another issue could be Indian planners talking with French and US submarine builders.
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All eyes on PM Narendra Modi after N-submarine talks with Russia flounders - The Economic Times