New Delhi: What may be termed as a consequence of ongoing political slugfest over AgustaWestland deal, The BJP led NDA government has scrapped the long-pending Rs 1,200 crore proposal to buy 98 heavy-weight torpedoes, from Wass -- a subsidiary of tainted Italian company Finmeccanica.
Defence sources said the proposal to acquire 98 Black Shark torpedoes for the six under construction French Scorpene submarines for a price of Rs 1,200 crore has been nixed.
The project was approved by UPA II government months before the 2014 general elections.
Defence ministry's move comes close on the heels of induction of country's first new conventional submarine in 16 years, INS Kalvari , by this year-end. As a result, the first of the Kalvari class which is expected to join the Navy end of this year, will not have a torpedo - the main weapon for a submarine -- to fire.
The Navy was hoping that a "special exception" would be made on the ground of "critical operational necessity" for the Black Shark torpedoes since they had emerged the winner over the Seahake torpedoes of the German Atlas Elektronik Gmbh in the selection process several years ago.
However, sources said Defence Minister Manohar Parrikar has now decided to go for an alternative.
"There is an alternate that is being worked on," the sources said adding that the SeaHake torpedos from Germanys Atlas Elektronik could be an option.
Black Shark torpedoes, made by Whitehead Alenia Sistemi Subacquei (WASS), a subsidiary of Finmeccanica, had emerged the lowest bidder to arm the Scorpene submarines, the first of which will be handed over to the Navy by September this year.
However, the proposal to acquire it had been stuck because of the VVIP chopper scam.
Atlas Elektronik had come second during the bidding and sources said the reason for it to lose was due to certain differences between the Germany company and the French firm which is making the submarine in collaboration with MDL in Mumbai.
"However, it seems that the differences have been resolved now," sources said adding that either a fresh tender could be placed or the government may go in for direct purchase.
If the issue is not resolved fast, the Navy would be inducting the first Scorpene submarine without its main anti-ship attack system.
Sources said the Scorpene class submarines have already been customised to integrate its fire control system with the Black Sharks.
Integrating another type of torpedo, will not only cost extra but also more time, the sources said.
Six submarines are being built at the Mazagon Dock Ltd with technology from French firm DCNS under an over Rs 25,000 crore project called P-75.
Earlier, the Defence Ministry had banned AugustaWestland from participating in any defence deals in India.
A partial ban had been imposed on Finmecannica following legal advice that a complete ban could affect combat readiness.
