Indian Navy Planning Nuclear Sub Lease from Russia for $3.3B

The Indian navy is likely to have agreed to lease one of Akula-2 class SSN from Russia reportedly for US $3.3 billion.

A naval delegation led by Inspector General (Nuclear Safety) Vice Admiral Soonil V Bhokare inspected two Akula-2 class submarines, the Bratsk and the Samara, India Today reported Tuesday.

The Indian navy will select one of the two hulls to lease after the Inter-Governmental Agreement (IGA) is signed between the two countries. The submarine will be put through an intensive six-year refit and rebuild, where the nuclear reactor will be replaced and a number of indigenous systems installed on board, the report stated.

The Navy single Akula-2 class submarine, the INS Chakra, was taken on a ten year lease from Russia for USD 2.5 billion in 2011. Officials said the cost of the leasing its replacement, tentatively called the Chakra-3, was worked out after considering a cost escalation using the 2011 lease amount as a base.

The INS Chakra had a shorter four- year refit between 2004 and 2008 because it did not require a reactor replacement, usually the most challenging part of a nuclear submarine's overhaul.