India is reportedly planning to lease another nuclear attack submarine from Russia as part of the Chakra 3 project, in a bid to strengthen the country's naval capabilities.
The talks in conjunction with this project are now in advanced stages and the Indian Prime Minister Narendra Modi and Russian President Vladimir Putin will discuss the deal alongside the BRICS Summit.
India is reportedly planning to lease a modern vessel, assumed to be the Yasen-class nuclear attack submarine.
A source associated with the programme said: "The final shape is yet to be decided, but it is now almost certain that a 'greenfield' submarine will be built."
In 2012, India received a Russian-built nuclear-powered submarine on a 10-year lease under a deal close to $970m, becoming the sixth country to operate nuclear submarines along with the US, the UK, France, China and Russia.
This 8,140t Akula-class submarine was later renamed as the INS Chakra.
Russia is also planning to set up a joint venture with an Indian shipyard to carry out upgrade, maintenance, and repair services for conventional submarines.
Russian shipyard Zvyozdochka deputy director general Evgeny V Shustikov was quoted as saying: "We are in the process of negotiating with an Indian shipyard and if these negotiations are successful, it could become our partner for future tasks of modernising Kilo-class submarines.
"Not just for India but for third nations as well."
India is currently planning to construct six conventional submarines in the country.
Scheduled to be built on the lines of the predecessor P75 Scorpene production line at MDL, Mumbai, the new submarines will feature advanced detection range and combat management systems, as well as better sensors for optimum performance and a weapon system that includes torpedoes and missiles.