Scorpene leak: What's at stake for DCNS

With India planning to buy more submarines and amphibious-warfare vessels, there is a lot at stake for DCNS

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Scorpene submarine-maker DCNS might be in troubled waters as far as future business is concerned after Wednesday's reports about sensitive information regarding the Indian Navy's Scorpenes being leaked.

The Scorpene – which will comprise the Kalvari-class of submarines in India – has had a checkered past since the early days of the country's P-75 submarine procurement programme. 

Now, it must probe into the recent data leak and reassure the Indian government – which is reportedly looking into the issue on its own end – that the Scorpenes can still justify their final price tag.

Along with the Indian Navy, DCNS has a lot hanging in the balance over this leak.

$38.13 billion Australian contract

The French shipbuilder had struck gold this year, when, in April, it was announced that it had won the bid to build submarines for the Australian Navy. According to The Australian, which broke the news of the Scorpene leak, the deal is worth $38.13 billion.  

According to the report, the 22,400-page leak could have compromised sensitive information about the Indian submarine's combat capabilities.

The same report said: "The leak will spark grave concern in Australia and especially in the US where senior navy officials have privately expressed fears about the security of top-secret data entrusted to France."

Future Indian contracts

In India, DCNS has been eyeing the follow-on submarine procurement programme, christened P75I.  

According to a report by The Hindu, the project is expected to cost over Rs. 60,000 crore (approximately $9 billion). 

The new line of conventionally-powered submarines would be the first to be built by private sector concerns.

As reported earlier, while experts believe that "much of the information in the 22,400 leaked pages would be commercial information relating to the Scorpene’s operating characteristics", which DCNS share with any navy that wished to buy the submarine, leakage of information regarding the submarine's acoustic signature and diving depth would be disastrous.

DCNS, according to Reuters, has said that this could be a case of "economic warfare". 

Either way, with billions of dollars and the security of a nation involved, DCNS will have to explain how it exposed itself to such an attack and might be facing a disadvantage in the coming competition.

Further, the Indian Navy isn't just looking at submarines. According to reports, the navy has also made moves to acquire Landing Helicopter Docks. The navy is looking to operate four such amphibious-warfare vessels and DCNS' Mistral-class amphibious assault ship is one of the contenders. 

The other competitors are Spain's Navantia, Italy's Fincantieri, and South Korea's Hanjin Heavy Industries, among other. 

The Mistral has also had a poor record in international sales, with the Franco-Russian deal for the sale of the vessels to the Russian Navy being scrapped in 2014 due to the crisis in Crimea. 

According to a StratPost interview from March last year, DCNS has offered a modified Mistral-class vessel for the Indian tender.  

Can't catch a break

Allegations of irregularities in the process of selection, cost overruns, and delays have already marred the Scorpene, even before it ever ventured out into the waters.   

DCNS and the Indian Navy seemed to have caught a break when INS Kalvari, the first of the navy's six Scorpene-class stealth submarines, was in April last year "undocked", paving the way for sea trials and eventual commissioning in September 2016.

By then, the Scorpenes had already seen a delay of almost 40 months. The first delivery had been scheduled for 2012.

Back then, the navy had said that the project had "now been brought on track and the delivery schedule for the successive submarines has been reduced".

In December last year, reports had emerged that the government was finalising plans to order three more Scorpene submarines in addition to the original six.  

Even as the Kalvari sailed out of the Mumbai Harbour for sea trials in May this year, the plan to purchase heavy-weight torpedos for the vessel remained in limbo. 

WASS Italy, a Finmeccanica company, had emerged as the successful bidder in the procurement for the torpedos in question.

Subsequently, because of the group's alleged involvement in the AgustaWestland VVIP helicopter scandal, the procurement was put on hold in July 2014.

Over the next three years, the remaining five Scorpenes will be commissioned and enter active service.