In its efforts to strengthen its navel prowess in the backdrop of China’s attempts to expand its influence in the Indian Ocean region, submarine capacities, India has succeeded in finalising a $ 3 billion dollar deal with Russia for leasing of a nuclear-powered attack submarine for the Indian Navy for a period of 10 years.
According to defence sources, the two countries signed an inter-governmental agreement capping months of negotiations on price and various other aspects of the deal.
Under the pact, Russia will have to deliver the Akula class submarine, to be known as Chakra III, to the Indian Navy by 2025. It will be the third Russian submarine to be leased to the Indian Navy.
The first Russian nuclear-powered submarine — christened INS Chakra — was taken in 1988 under a three year lease. A second INS Chakra was taken on lease in 2012 for a period of 10 years. The lease of Chakra II will expire in 2022 and India is reportedly propose to extend the lease.
The deal for the Chakra III came days after Indo-Russian joint production facility to manufacture AK-203 assault rifles for the Indian Army was inaugurated by Prime Minister Narendra Modi in Amethi in Uttar Pradesh. In October, India signed a multi-billion dollar deal with Russia to procure a batch of S-400 air defence missile system.