Confirmation from Indian source:

India approves multi-billion dollar Scorpene submarine deal
Reuters
New Delhi, September 8, 2005
http://www.hindustantimes.com/news/181_1485696,0008.htm

Centre has approved a long-pending multi-billion dollar arms deal to buy submarines from France, a defence official said on Thursday, days before Prime Minister Manmohan Singh visits Paris.The deal, initially estimated to be worth about $1.8 billion, involves the manufacture of six Scorpene SSK-class submarines at a naval dockyard in Mumbai.A delay by New Delhi in closing the deal is expected to have pushed the price up, said the official, who spoke on condition of anonymity. “The PM is expected to announce it in Paris next week,” he said. The project is expected to be handled by the marketing arm of state owned DCN International, the main naval contractor for France, and Thales SA, one of the world’s largest defence electronics firms.