Russia Offers Cost-Effective Proposal to Build Next-Gen Submarines in India

New Delhi (Sputnik) — Russia has offered to jointly construct and develop a nuclear submarine in India, in a proposal that could provide a big relief to the funds-starved Indian Navy.

"The Russian side proposed the transfer of all intellectual property for the construction of a prototype and design [submarine], which means that there are also no restrictions on the number of submarines that can be built for this project," Indian Daily The Economic Times reported through sources.

Under the joint development project proposal, both countries will design and develop a prototype at cost of under $200 million thereafter the technical know-how and related documents will be transferred to an Indian shipyard. 

​Sputnik independently confirmed the development through a person who is involved in several strategically crucial projects. "The decision is likely to be taken before the bilateral annual summit scheduled in October this year," the source said.

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India has so far leased two nuclear-propelled submarines from Russia, including Chakra which is currently in service. India also commissioned INS Arihant, which was constructed at Vizag with Russian assistance, in August 2016. The second Ship Submersible Ballistic Nuclear (SSBN) under the project, INS Aridhaman, is undergoing sea trials.