MoD admits warship costs escalation

The defense ministry has admitted serious cost escalations in the manufacture of destroyers, frigates and corvettes.

Defense Minister Manohar Parrikar told the Rajya Sabha last week in response to a question from Dr. K.P. Ramalingam said that, “There have been occasions when naval vessel construction projects of Indian Navy have had time and/or cost escalations, major reasons for which include delay in availability of warship grade steel, delay in design finalization, delay in receipt of critical equipment/technology, infrastructural constraints of the shipyards & delay in development of indigenized equipments/weapons.”

Cost escalation

Project 15A is the program for the three Kolkata-class stealth guided-missile destroyers, to be followed by the more advanced Project 15B vessels.
Project 15A: INR 3580 Crore
Revised Cost: INR 11662 Crore

Project 28 is the program for the Kamorta-class corvettes.
Project 28: INR 3051.27 Crore
Revised Cost: INR 7852.39 Crore

Project 17 was the program for the Shivalik-class of guided-missile frigates.
Project 17: INR 2250 Crore
Revised Cost: INR 8101 Crore

Note: 1 crore = 10 million