India soon to become a global hub for submarines upgrade

A memorandum of understanding could be signed between Indian and Russia in a month time to make India a global hub for submarines upgrade, maintenance and repair of conventional submarines.

Officials from the state-run Zvyozdochka shipyard told ET that it is in final talks to select an Indian joint venture partner for this mega project to set up facilities in St. Petersburg.

With contracts worth several thousand crores in the offing for the upgrade of Russian origin diesel electric submarines — several from the Indian Navy itself — the joint venture has the potential of making the selected Indian shipyard a serious player in the international market.

Russian engineers have already visited the Indian yard and advised it on changes to be made as well as investments needed to execute the project. "We are in the process of negotiating with an Indian shipyard and if these negotiations are successful, it could become our partner for future tasks of modernising Kilo class submarines," Evgeny V Shustikov, Deputy Director General of Zvyozdochka told ET.

While the Russian side is not ready to share details, it is learnt that several rounds of talks have taken place between Zvyozdochka and the Gujarat-based Pipavav Shipyard that has recently been bought by Anil Ambani's Reliance.

A final round of talks is likely to take place sometimes in August.

Shustikov added that the Russian side is looking at a joint venture model which can execute work orders from the region.

India alone is looking at the imminent second life extension of at least four Kilo class submarines. This would give the fleet almost 15 more years of service life. "Our estimate is that we will be loaded with work for at least 15-20 years," Shustikov said.

Other countries that operate Kilos in the region include Iran with three submarines of the same class and Nigeria with six. In addition, Russia has recently sold six upgraded Kilo class submarines to Vietnam that will require overhauling and repairs in the coming years and is pursuing several other orders in the region.
(Image: Reuters)