The Soaring Cost of Navy's Upcoming 3 Kalvari-Class Scorpene Submarines

The Indian Navy is set to significantly bolster its submarine fleet with talks advancing to acquire three more Kalvari-class (Scorpène) submarines. State-owned Mazagon Dock Shipbuilders Limited (MDL) is reportedly in the final stages of negotiation for a deal estimated at a substantial ₹35,000 crore (US$4.19 billion).

While the final price remains subject to negotiations, the projected cost per submarine falls between $1.2 billion and $1.3 billion. This marks a substantial 62% increase compared to the previous six Kalvari-class submarines procured at ₹23,652 crore (US$4.1 billion in 2023).

The new submarines are expected to feature upgraded equipment and sensors, positioning them at the forefront of technological advancements. However, this significant cost increase has raised concerns.

Despite constructing six Kalvari-class submarines in the past, MDL has been unable to boost indigenous content beyond 60%. The reliance on French original equipment manufacturers (OEMs) for critical components remains a major factor driving up the cost.

An upcoming price negotiation committee meeting offers a glimmer of hope for reducing the overall cost. However, the considerable price hike underscores the challenges India confronts in achieving self-reliance in its defense manufacturing sector.

Despite the cost concerns, these upgraded Kalvari-class submarines will substantially enhance India's underwater deterrence capabilities. The Navy's focus on acquiring these modern platforms highlights its commitment to maintaining a robust maritime defense posture in a geopolitically complex region.

 

[Apocalypse gupta]

This is even more than P75I submarine cost. France is going to extract every single cent from India since this is the last order it will ever get from the navy.

I think India should say to france, either reduce the cost or we cancel naval rafale order. Naval rafale order is also not signed by now, probably due to very high price.

if france is going to act like this, just cancel both orders. Buy more P75I instead of more kalvari, and the domestic AIP can be put in the existing kalvari when they come for refit. As for naval rafale, put that money in TEDBF and order more of them.

 

[MANIVANNAN N]

60% indugeneous content means how price will rise? It shows mdl poor indigenization.

 

[Vijay Anand]

Now lets see how much France will be friendly regarding price tag, as some France fan-boys claim it here 😏

 

[PKPRS]

This is even more than P75I submarine cost. France is going to extract every single cent from India since this is the last order it will ever get from the navy.

I think India should say to france, either reduce the cost or we cancel naval rafale order. Naval rafale order is also not signed by now, probably due to very high price.

if france is going to act like this, just cancel both orders. Buy more P75I instead of more kalvari, and the domestic AIP can be put in the existing kalvari when they come for refit. As for naval rafale, put that money in TEDBF and order more of them.

Last order it will ever get from, IAF, Navy and Army, it is better to make a diesel electric submarine based on Arihant and install AIP in it instead of ordering more Scorpene, it will cost a fortune.

 

[sanket]

This is how French Milk the Money without any serious upgrade , this was happen in Mirage-2000 Upgrade package too..............

 

[Apocalypse gupta]

Last order it will ever get from, IAF, Navy and Army, it is better to make a diesel electric submarine based on Arihant and install AIP in it instead of ordering more Scorpene, it will cost a fortune.

Macron thinks if he comes to india as republic day chief guest, india will shell hundreds of millions more for its defence equipment.

 

[Vijay Anand]

This is even more than P75I submarine cost. France is going to extract every single cent from India since this is the last order it will ever get from the navy.

I think India should say to france, either reduce the cost or we cancel naval rafale order. Naval rafale order is also not signed by now, probably due to very high price.

if france is going to act like this, just cancel both orders. Buy more P75I instead of more kalvari, and the domestic AIP can be put in the existing kalvari when they come for refit. As for naval rafale, put that money in TEDBF and order more of them.

both Rafale-N (with huge order book) and TEDBF (under development) are going to take time. The only concern with TEDBF is, its not proven yet. With our DPSUs we still see delays in 4th gen fighters, while countries like Turkey are progressing very fast with their 5th gen prototypes.

 

[Apocalypse gupta]

both Rafale-N (with huge order book) and TEDBF (under development) are going to take time. The only concern with TEDBF is, its not proven yet. With our DPSUs we still see delays in 4th gen fighters, while countries like Turkey are progressing very fast with their 5th gen prototypes.

If both will take time, then best to go for cheaper optiin. Rafale N will cost 2 times as more than Tedbf, especially if we consider that if we dont buy Rafale marine or the marfa jets, and IAF buys Tedbf air force version (ORCA) , this huge order will reduce per unit cost even further.

only drawback i see to this is that HAL will be the one which will have to build all of these jets, which I dont see as big problem since HAL is not building AMCA and can fpcus on 4th gen jets

 

[Vijay Anand]

If both will take time, then best to go for cheaper optiin. Rafale N will cost 2 times as more than Tedbf, especially if we consider that if we dont buy Rafale marine or the marfa jets, and IAF buys Tedbf air force version (ORCA) , this huge order will reduce per unit cost even further.

only drawback i see to this is that HAL will be the one which will have to build all of these jets, which I dont see as big problem since HAL is not building AMCA and can fpcus on 4th gen jets

Our only option is to pray HAL won't mess up on this whether its time and performance

 

[Pad UwU]

Now lets see how much France will be friendly regarding price tag, as some France fan-boys claim it here 😏

the Frenchies are silent right now let's wait for their rebuttal 😹😹😹

 

[Pad UwU]

Wadafaq Macron ripoff this deal too much for us.... Its acceptable if the increase is 30% because of global inflation but d@mn 62%🙀

 

[Anant]

This is even more than P75I submarine cost. France is going to extract every single cent from India since this is the last order it will ever get from the navy.

I think India should say to france, either reduce the cost or we cancel naval rafale order. Naval rafale order is also not signed by now, probably due to very high price.

if france is going to act like this, just cancel both orders. Buy more P75I instead of more kalvari, and the domestic AIP can be put in the existing kalvari when they come for refit. As for naval rafale, put that money in TEDBF and order more of them.

I kind of agree with you, but the counter to that is if we end up cancelling the Rafale M, what alternative do we have? Boeing might start pushing the price up on the F-18 (knowing we are desperate), and there aren't any other viable alternatives until TEDBF comes along in a decade or so. Not to mention the damage it would cause to our relations with France...

 

[wallisk]

Macron thinks if he comes to india as republic day chief guest, india will shell hundreds of millions more for its defence equipment.

In fact, we will give France BILLIONS of usd's very soon to buy Scorpenes AND Rafales....!!

 

[wallisk]

MoD Must make public all of the offers at hand with the % of ToT offered, lifetime ops costs per vendor per sub etc.. etc.. For, MRFA deal NOBODY have replied to Centre's new requirements of 100% ToT!!

 

[NSR]

$1.2 to 1.3 billions per each SSK Scorpene submarine is exorbitantly expensive.
Vietnam bought 6 Kilos and training annd armaments for about $2billions.
Say no more to new Scorpenes as it is not worth throwing money at MDL which does not create any submarine building skills or technology or any local productions of subsystems.

Just pay for consultancy and manufacturing assistance to France Naval Systems to upgrade the 6 Scorpenes with Indian AIPs at each refit visits.

Go with P-75I and Indian Navy WDB P-76 submarines in future.

 

[ramdas]

The current government's indecision has led to a significant cost escalation. Despite many voices of reason calling for it, they have ignored pleas to place repeat orders for 3 submarines. It's an absolute waste of taxpayer's money! They need to get at least one thing right by incorporating AIP in the production phase, not after commissioning the subs.

 

[abhinav srivastava]

15 years ago price was 3 billion for 6 subs without AIP. After 15 years cost can increase a lot and there will be additional cost for AIP. But tech transfer, initial setup cost etc should go away. Expedite P75I and see how much new vendor charges?. Better to kick start desi development in parallel to P75I otherwise those who received tech transfer from scorpene will retire.

 

[wallisk]

15 years ago price was 3 billion for 6 subs without AIP. After 15 years cost can increase a lot and there will be additional cost for AIP. But tech transfer, initial setup cost etc should go away. Expedite P75I and see how much new vendor charges?. Better to kick start desi development in parallel to P75I otherwise those who received tech transfer from scorpene will retire.

Def Min will bring down price perhaps to 900 mils usd per sub from 1.3 Billions now asking prices... Must get 6 subs right away as these will have latest AIP, pumpjet propulsions and stealth tech's and other fancy automation features too!

 

[PKPRS]

Macron thinks if he comes to india as republic day chief guest, india will shell hundreds of millions more for its defence equipment.

for 3 new Scorpene and integration of DRDO AIP we had to pay $3Bln.

 

[Apocalypse gupta]

for 3 new Scorpene and integration of DRDO AIP we had to pay $3Bln.

The deal you are talking about is this deal the article is talking about. And the cost is 1.2billion dollars

 

[Apocalypse gupta]

I kind of agree with you, but the counter to that is if we end up cancelling the Rafale M, what alternative do we have? Boeing might start pushing the price up on the F-18 (knowing we are desperate), and there aren't any other viable alternatives until TEDBF comes along in a decade or so. Not to mention the damage it would cause to our relations with France...

You hit it at the mark. We are desperate, that is why france is jacking up the price.

Our kalvari production line is vacant, and DRDO Aip needs to be put somewhere, and france knows this.

We have 2 carriers with 3rd one coming by 2030-31, we only have old mig29s for them. Going for F18 is undesirable for us since we are unfamiliar with the aircraft and neither IAF nor navy has operated american fighters before and IAF is already operating rafales.

The way i see it, we have 2 options. Either pay whatever french are asking or we put faith in our domestic production. Go all in. Govt opens check book for DRDO, HAL to go crazy.

 

[wallisk]

60% indugeneous content means how price will rise? It shows mdl poor indigenization.

This new offer is a newer improved version of Scorpene sub. Let's see if they are offering WITH AIP and pumpjet propulsions or not next...

 

[Apocalypse gupta]

Our only option is to pray HAL won't mess up on this whether its time and performance

HAL has improved a lot. We dont see multi year delays any more. Lot of production, R&D, testing infra has been set up over the last 5 years. Tejas mk1a has a 4 month delay only. This is amazing from HAL.

 

[wallisk]

This is even more than P75I submarine cost. France is going to extract every single cent from India since this is the last order it will ever get from the navy.

I think India should say to france, either reduce the cost or we cancel naval rafale order. Naval rafale order is also not signed by now, probably due to very high price.

if france is going to act like this, just cancel both orders. Buy more P75I instead of more kalvari, and the domestic AIP can be put in the existing kalvari when they come for refit. As for naval rafale, put that money in TEDBF and order more of them.

15 years is HUGE escalations dude! I saw on you tube that Def Min have placed 70,000 crores orders with various PSU's and DRDO's and pvt players for 97 MK1A jets parts manufacturing orders. And, that comes to almost $86 millions usd per unit of MK1A jet HAL manufactured ex-factory price! For MK1 SP-LCA order it was coming to around 35 to 40 millions usd I think so...