Thursday, September 6, 2012

Indian Submarine Update

An Indian Tale Of Woe

September 6, 2012: India's effort to build the first six subs (French Scorpenes), under license, has been delayed several times, and the price has gone up to $5 billion ($834 million each). While this effort will leave India with thousands of workers and specialists experienced in building modern submarines, all that will be wasted because the defense procurement bureaucrats seem to have learned nothing. These officials already caused numerous delays, and cost overruns, during negotiations to build these diesel-electric submarines. The bureaucrats mismanaged this deal to the extent that it is now three years behind schedule. But it is even more behind schedule if you count the several years the Indian bureaucrats delayed it even getting started. The delays and mismanagement have so far increased the cost of the $4 billion project by 25 percent. The original plan was to have the first Indian built Scorpene delivered at the end of this year. But now, because of problems getting the construction facilities and skilled workmen ready, the first Scorpene won't be delivered until 2015, with one each year after that until all six are delivered. That schedule is subject to change, and probably will, for the worse. 

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