The agreement, whose significance for Russian-Indian cooperation has yet to be assessed, could have a profound impact on the balance of forces in the region.

Russia's role in creating the Indian submarine fleet is hard to overestimate -- Soviet/Russian-built vessels have been its core since the 1970s. Of the current 16 Indian submarines on duty, 12 were built in the Soviet Union or Russia, including two 641 Project and 10 877EKM Project submarines -- NATO reporting names Foxtrot and Kilo. The four other submarines are German Project 209 diesel SSs, which India built under license.

Combined with a strong surface force and aircraft, this submarine fleet gives India control of the adjacent seas and makes it the strongest naval power in South Asia. But, with broad ocean expanses to cover, the Indian top brass have always wanted a force capable of operating away from home. Its surface component must have large combat ships, such as aircraft carriers, and its submarine fleet must include nuclear-powered vessels.

The Indian navy got its first nuclear submarine in January 1988. It was the former Soviet K-43 sub, a Project 670 type ship built in 1967 -- NATO reporting name Charlie. The boat, equipped with torpedoes and anti-ship missiles, was leased out to India and renamed the Chakra. It stayed within the force until March 1991. India asked for an extension of the lease, but the United States forced the Soviet leadership to refuse the request.

The Chakra had a seminal effect on the Indian navy, producing a generation of senior naval officers, including several admirals. The experience gave India tactical and technical expertise essential for a national nuclear submarine project.

Such a project, code-named ATV -- or Advanced Technology Vessel -- and involving Russian engineers, got off the ground 30 years ago. The construction of India's first SSN, sources say, began in the mid-2000s and is expected to be completed by 2010. India reportedly is planning to build between three and six SSNs in the next decade, with a displacement of 5,000 to 6,000 tons each, and fitted out with a combination of missiles and torpedoes.

However, even if the Advanced Technology Vessel type craft is fitted out by 2010, it will need between three and four years to gain sea experience. This prompted the Indian leadership to raise the lease issue once again, focusing negotiations on a multi-role SSN, Project 971 Shchuka-B, known in the West as Akula, then under construction in Komsomolsk-on-Amur.

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(Part 2: The leased sub's powerful punch)

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(Ilya Kramnik is a military commentator for RIA Novosti. This article is reprinted by permission of RIA Novosti. The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.)

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(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)