India's $8 billion submarine plan stalls following sea tests

Complaints by contractors over procedures delay efforts to boost navy's capabilities

NEW DELHI - India's US$6 billion (S$8.09 billion) plan to build submarines has stalled because of contractor complaints over whether proper procedures were followed during tests at sea, delaying the navy's efforts to bolster its capabilities as China expands its presence in the Indian Ocean.

The South Asian nation's bid to build six conventional diesel-electric subs is now delayed by a year and further delays are expected, according to two senior officials directly aware of the situation who asked not to be identified because the information is not public.

The development is more than a setback to India's efforts to upgrade its military: The project also represents a test of Prime Minister Narendra Modi's new defence acquisition policy.

That policy requires foreign manufacturers to partner and provide local firms with technology to build military hardware in India, the world's largest weapons importer.

German defence manufacturer ThyssenKrupp Marine Systems, in partnership with India's state shipyard Mazagon Dock Shipbuilders, and private shipbuilder Larsen & Toubro (L&T), with Spain's Navantia SA, are competing for the project.