New Delhi: Strengthening the Indian Navy, India on Thursday sealed a $3 billion deal with Russia for the leasing of a nuclear-powered attack submarine for a period of 10 years.
According to reports, India and Russia signed an inter-governmental agreement capping months of negotiations on price and various other aspects of the deal.
Reports suggest that 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.
ALSO READ: Pak intelligence had used JeM to carry out attacks in India during my tenure: Pervez Musharraf
India has been significantly bolstering its naval prowess in the backdrop of China’s attempts to expand its influence in the Indian Ocean region.
India Navy has taken two more submarines from Russia on the lease.
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 looking at extending the lease, sources said.
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 Uttar Pradesh’s Amethi.