24 April 2013

News Story: India Finds Another Way To Delay (submarines)


India's effort to build six submarines (French Scorpenes), under license, has been delayed once again. The problem is mainly poor management. An example of this occurred quite recently with the departure of ten Spanish technical advisors for the Scorpenes. Their contract expired at the end of March and, despite the expiration date being well known, Indian bureaucrats were unable to get a new contract in place on time. Similar avoidable delays have occurred several times already and the price has gone up with each delay. Last year it was announced that the first Scorpene sub would not be ready until 2015. The new delays push that to 2017.

Building the subs in India 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 five 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 (to $834 million per sub).

The original plan was to have the first Indian built Scorpene delivered at the end of 2012. But now, because of problems getting the construction facilities and skilled workmen ready, the first Scorpene won't be delivered until 2017, with one each year after that until all six are delivered. That schedule is subject to change and probably will, for the worse.

Read the full story at StrategyPage