On March 29, when the cabinet committee on security (CCS) met to discuss a slew of defence deals, the anticipation in naval HQ was palpable. The navy's top brass was looking forward to finally getting clearance for the $3.2 billion for six Scorpene submarines—three of which were to be built here. The navy had concluded price negotiations for them in 2002, only to be put on hold. With prices escalating at 10 per cent every year, the defence ministry was also under pressure from the French company to renegotiate the deal.
Before the CCS, the defence secretary had briefed Pranab Mukherjee. The navy's top brass was on hand to clarify any doubts that the cabinet committee may have. Pranab was quick to brief the CCS on the merits of the Scorpene submarine only to meet with a flurry of objections from Union finance minister P. Chidambaram. South Block sources say the PMO had been apprised of the deal much before the CCS and had already raised objections.
Chidambaram only reflected these when he said the deal was "too expensive" and needed to be studied further before being cleared. The case of the Howaldtswerke Deutsche Werft (HDW) submarine as a viable alternative to the Scorpene was also discussed.
The Scorpene negotiations had found the going tough with the previous NDA government too. Apparently, national security advisor Brajesh Mishra was keen to push the deal through, but the defence ministry had been hesitant. The latter had, in fact, cited several reasons, including cost, viability and the need for a new class of submarines. The NDA regime was also sceptical about starting a new line of submarines since the last ones manufactured at Mazgaon Docks were HDW boats.
With his CCS colleagues against the deal, Mukherjee had to back down. In fact, a press meet called to brief the media about the Scorpene deal was first cancelled and then held with Mukherjee making some minor announcements. For the navy, this means a further delay which, in all probability, will add to the overall cost. This at a time when a large part of its fleet—comprising of Soviet Foxtrot and Kilo class submarines—are to be decommissioned in the next five years. Then there are the naval HQ's worries on the HDW submarine, considered unsuitable since the firm does not manufacture missiles. The ones currently available are the French Exocet and the American Harpoon. With the Indian military hesitant on acquiring US hardware, the Exocet is the only viable option left—which brings us back to the French connection, and Scorpene. But it wasn't the capability of the French sub that came up for at the CCS meeting. Instead, politics took over.
