India clears 1.8 billion US dollar French submarines deal

The Indian government approved a multi-billion dollar arms deal to buy submarines from France on Thursday, days before Prime Minister Manmohan Singh visits Paris, said a defense official.

The deal, initially estimated to be worth about 1.8 billion US dollars, involves the manufacture of six Scorpene SSK-class submarines at a naval dockyard in Mumbai.

The official, who spoke on condition of anonymity, said, "The PM is expected to announce it in Paris next week"

The project is expected to be handled by the marketing arm of state-owned DCN International, the main naval contractor for France, and Thales SA, one of the world's largest defense electronics firms.

The Indian Navy is quite keen to see the project taking off as its submarine fleet is aging and needs replacement.

The deal, when it comes through, will plug a major gap in India's defense preparedness. However, it will take at least six years for the first Scorpene to roll out after the contract is signed.

Source: Xinhua