French defence major DCNS is planning to introduce new submarine-building technology and has applied for 100 per cent foreign direct investment (FDI) in the defence sector.

The FDI policy in defence stipulates that although foreign capital of up to 49 per cent can be invested automatically, it can go up to 100 per cent on a case-to-case basis, wherever it is likely to result in access to modern technology in the country.

“We have taken the opportunity to file for AIP (Air Independent Propulsion) technology to see if we can set up a 100 per cent DCNS subsidiary in India,” Bernard Buisson, Managing Director, DCNS India, told BusinessLine .

The company had applied for approval from the Foreign Investment Promotion Board (FIPB) in March.

“We proposed to the FIPB that we are bringing in technology related to AIP. So, we will see if this technology, which we know is of interest to India, will be acknowledged,” he said.

Buisson said negotiations are under way with FIPB to apprise them of the AIP technology and its usefulness for the Indian Navy.

AIP system (nuclear/conventional) is essential for warships of all kinds. For Indian submarines, this technology is the need of the hour.

The technology basically allows the traditional diesel-electric submarines to remain under water for a longer period without the need to surface often for recharging the batteries, which can be risky during war times.

Incidentally, the AIP system is covered under compulsory licensing and requires industrial licence as per the Department of Industrial Policy and Promotion.

DCNS has been present in the Indian market for nearly a decade, and is currently involved in building six Scorpene-class submarines for the Navy in partnership with the Mazgaon Dock under technology transfer assistance.

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