New Delhi, October 07, 2005, Huma Siddiqui (The Financial Express)

Mumbai’s Mazagon Dock Ltd (MDL) will see plenty of action in January 2006, as French arms maker Armaris gets ready for the construction of Scorpene submarines. Concrete action on the $3.5 billion deal would, however, depend on several factors.

“We expect the contract to be in place and the first payment to be made by the end of the year. Thereafter, other formalities should be over by the end of this year,” said Pierre Legros, executive chairman, Armaris, a joint venture between Thales SA, Europe’s biggest maker of defence electronics, and DCN, Europe’s largest warship builder.

However, Mr Legros expressed some concern about the security aspect, even though he said he was satisfied with the arrangements in India. He said his company would go ahead with construction work after a security team from Paris visits and submits a risk assessment report. “There will be a high level of security involved and as a security measure only 24 workers from the company will be sent to Mazagon Dock initially,” he said.

“The submarines for India will not be built at the facilities at Cherbourg in France. Under the contract we will transfer technology and design to MDL in Mumbai, where the six diesel-powered Scorpene submarines will be built,” he said.

While admitting that this is the first time the company is transferring technology, Mr Legros said discussions have already started with MDL.

It has been 11 years since India built a submarine. And there are concerns that in-house technicians, mechanics and welders at MDL, may have lost their highly technical skills in the absence of any orders from the government.

Mr Legros explained that “the contract signed between Armaris and Mazgoan Docks provides for the presence of team of French technical advisers during the construction of the first two subs.”

“While Armaris will supply combat systems, it will not transfer technology to MDL for parts like the torpedo tubes,” he added.

The first Scorpene will be ready for induction in navy by 2012 and the remaining five will be delivered at intervals of one year each thereafter, the company officials said.

After the delivery of the first two submarines, MDL would be free to change the shape of the vessels to provide, if the need arises, for installation of more lethal weapons, including missiles.