Reports noted that Russia would lease its Akula-class nuclear-powered attack submarine ‘Nerpa’ to the Indian Navy in the later part of 2009, for a period of 10 years. The submarine would be inducted under the name ‘INS Chakra.’ Financial problems had earlier forced a halt in the construction of the submarine which was resumed when India made advance payments under Gorshkov package recently. The total construction charges are expected to be around $650 million and the annual lease charge of $50 million would be paid to the Russian Navy1.

• 1. “India to Lease K-152 Nerpa Nuclear Submarine from Russia Later in 2009,” June 10, 2009, at http://www.india-defence.com/reports-4428