French DCNS has sought approval to set up an Indian subsidiary to develop Air Independent Propulsion (AIP) systems for the submarines.
DCNS has requested clearance from the Foreign Investment Promotion Board (FIPB) for 100 percent FDI to invest over INR 100 crore (US $15 million), ET reported citing officials involved in the process as saying Thursday.
The French company has applied under a special category that considers applications for high-end critical defence technology not available in the country.
In rules that were changed in November, FDI of up to 49% has been allowed in defence under automatic rule and proposals with higher investment levels have to be approved on a case-by-case basis by FIPB in consultation with ministries.
DCNS is also bidding for a mega-contract to build four landing platform docks in partnership with Reliance Defence, has asked for 100% FDI as it wants to develop AIP equipment in India with local companies, including preparation of detailed drawings, 3D modelling and design for future submarine systems.
AIP is essential for future Indian submarines, with the Defence Research & Development Organisation also trying its hand at a developmental project. There are also plans to fit the AIP system on some Scorpene submarines that are under construction in Mumbai. DCNS, which has contracted six Scorpenes, is in contention for a follow-on order for at least two more.
Despite efforts to market India as a defence manufacturing hub, actual FDI inflow in the sector has been dismal, with just over Rs 1crore flowing in last year.
Indias first Scorpene class submarine Kalvari will start trial later this year. “Sometime this year, the trial will start
India will order an additional three Scorpene submarines to the exisiting order of six under Project 75. Indian Naval Chief Admiral R K Dhowan addressing a press conference Thursday said, “The Navy, which has a severe shortage of undersea platforms, would order additional Scorpene submarines after Mazgaon Docks (MDL) finishes building the six on order under Project 75
India will set afloat Kalvari, first of Scorpene submarines for sea trials today. The event is significant given that it completes the building of the much-awaited platform and kickstarts the beginning of sea trials
Admiral Sunil Lanba, Chairman, Chiefs of Staff Committee and Indian Navy Chief is touring France this week where he will be visiting the French Airbase at Landivisiau and the French Submarine Facility at Cherbourg. He will be briefed on the operational employability of the Rafale aircraft by the French Air Force
Indian defense manufacturers will benefit from offsets and access modern technology with the governments move to allow Foreign Direct Investment (FDI) to 100 percent in the sector, M N Vidyashankar, President, India Electronics and Semiconductor Association said. “With the FDI the MNCs (multi-national companies) wanting to invest in India will need local backup, resources, and manufacturing capabilities and comforts to deal with local vendors
The government of India announced changes to the countrys foreign direct investment (FDI) policy Monday, which allows 100 percent foreign investment in defense, civil aviation and pharmaceutical sectors. Previously, FDI in the defense sector was capped at 49 percent and now, 100 percent FDI will be allowed by the government on a case-specific basis, when “it is likely to result in access to modern and ‘state-of-art technology in the country”, an Indian Commerce Ministry statement said Monday
DCNS will begin designs of the Australian Future Submarine after the discussions on cost this year. The Australian Government selected DCNS as its preferred international partner for the design of 12 Future submarines for the Royal Australian Navy Tuesday
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