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The Indian Navy is currently weighing a critical strategic decision that could shape its underwater combat capabilities for the next decade. Russia has formally offered to lease a second Akula-class nuclear-powered attack submarine (SSN) to India in a deal estimated to be worth $3 billion for a ten-year period.
This proposal forces the Navy to choose between a short-term enhancement of its fleet and a long-term investment in its growing domestic submarine manufacturing program.
The offer from Moscow is aimed at bolstering India’s naval presence in the Indian Ocean Region, where the strategic environment is becoming increasingly contested.
However, naval officials are proceeding with caution. The final decision will likely depend on the specific condition of the submarine hull offered by Russia, amidst rising concerns over the escalating costs and significant delays already affecting the delivery of the first leased SSN, which will be commissioned as INS Chakra III.
The Details of the Russian Proposal
According to reports, Russia's offer likely involves the K-519 ‘Iribis’, an Akula-class submarine hull whose construction began in 1994 but was halted two years later when it was only 42% complete.The Akula-class is a formidable platform, known for its advanced stealth features, high speed of up to 30 knots (approximately 55 km/h) when submerged, and an ability to operate at depths of over 500 meters.
These submarines are armed with a powerful arsenal including torpedoes and long-range cruise missiles like the Kalibr, capable of hitting targets 1,500 kilometres away.
This offer is part of a wider defence cooperation package between the two nations.
The cost of this second lease, approximately $3 billion, marks a substantial increase from the $1 billion paid for the lease of INS Chakra II, which served the Indian Navy from 2012 to 2021.
The current price is nearly equivalent to the inflation-adjusted cost of the INS Chakra III deal, which was signed in 2019 and has since experienced a three-year delay, with delivery now expected in 2028 due to the conflict in Ukraine and subsequent supply chain disruptions.
India's Indigenous Submarine Program
In parallel, India is making significant strides with its own ambitious submarine-building initiative, known as Project-77. Formally approved in 2024, this project aims to construct six indigenous nuclear-powered attack submarines.The government has allocated approximately $2.7 billion for each of the first two submarines.
These 6,000-tonne vessels are being designed by the Navy's own Naval Design Bureau, with crucial technological support from the Defence Research and Development Organisation (DRDO) and manufacturing expertise from private firms like Larsen & Toubro (L&T).
They will be powered by a 190-megawatt pressurized light-water reactor and will be equipped with advanced indigenous weapon systems, including BrahMos supersonic and hypersonic cruise missiles.
The first of these submarines is projected to begin sea trials by 2036 and will offer a service life of 40 years, a significant advantage over a 10-year lease of an older Russian vessel.
The Strategic and Financial Dilemma
The primary challenge for the Indian Navy is a looming capability gap. The early return of INS Chakra II in 2021 due to reliability issues, combined with the delayed arrival of INS Chakra III, means the Navy currently operates without a nuclear-powered attack submarine.Leasing a second Akula-class vessel could quickly fill this void and allow the Navy to assign one SSN to each of its two aircraft carrier battle groups, centred around INS Vikramaditya and INS Vikrant.
However, the financial trade-off is stark. Naval sources point out that the $3 billion cost to lease an old submarine for ten years is nearly enough to build one and a half brand-new, modern indigenous SSNs.
These domestically built submarines would not only feature more advanced technology but would also operate without any of the restrictions imposed on leased foreign assets, providing India with complete operational sovereignty.
Past leases, for instance, included limitations on the types of weapons that could be loaded and the nature of offensive operations.
Ultimately, the Navy must balance its immediate operational needs against the long-term strategic and economic benefits of self-reliance in a critical area of national defence.
