After a year of haggling, India has agreed to pay France an additional $413 million for the construction of six Scorpene class diesel-electric submarines. The original deal was signed five years ago, but then problems developed. The first Scorpene was supposed to enter service by 2012, at a cost of about $500 million. But political and management problems have delayed that date by two years, and raised the price per boat by over $100 million. The French have raised the prices for some key components, and India has had some problems in getting production going on their end. The first Scorpene was to be built in France, with the other five built in India.
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