This decision has come as a major relief for French ship building firm DCNS, which feared suffering a huge setback in India due to the data leak controversy. DCNS is reportedly eyeing an additional contract for building three more submarines for India. The company had signed a USD 3.5 billion contract in 2005 with India to jointly develop six Scorpene-class submarines.
Meanwhile, India's Defense Acquisition Council (DAC) under the chairmanship of Defense Minister Manohar Parrikar, has also cleared a proposal to set up a weapons repair facility for ships in Port Blair, a highly strategic location in the Indian Ocean. The facility is being built at an estimated cost of USD 68 million. This facility would not only enable the on-site repairing of vessels and weapons at times of emergency but would also help India capture the repair market for foreign vessels crossing the Indian Ocean.
In yet another decision, the DAC has cleared a proposal aimed at strengthening the security system in the northern state of Jammu and Kashmir. DAC has cleared proposals worth USD 50 million for the procurement of electronic warfare systems in the region. Apart from strengthening security and surveillance in the region, the DAC also approved a proposal to procure anti-tank guided munitions for training purposes for the army at a cost of USD 61 million.
