India wary of cost of joint ventures with Israel

Discussion in 'Indian Navy' started by WolfPack86, Jul 18, 2016.

  1. WolfPack86

    WolfPack86 Senior Member Senior Member

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    NEW DELHI: India plans to further expand its strategic ties with Israel through more R&D projects to develop hi-tech weapon systems, as also clinch several deals in the pipeline, but has expressed concern over the exorbitant costs involved in deploying a jointly-developed surface-to-air missile system on frontline Indian warships.

    Sources said this came through in the 12th meeting of the high-powered joint working group between the two countries, co-chaired by defence secretary G Mohan Kumar and director general of Israeli defence ministry Major General Udi Adam (retd), which was held in New Delhi on July 13.

    Though there has been no official word on the JWG meeting, sources said defence minister Manohar Parrikar has red-flagged the "high costs" involved in production of the medium-range surface-to-air missile (MR-SAM) systems called Barak-8 by Israel.

    First, there was a huge delay by DRDO-Israel Aerospace Industries (IAI) joint venture to develop and test the MR-SAM systems, which are to be produced in bulk by defence PSU Bharat Dynamics Ltd (BDL). Now, the projected costs in deploying them have also raised eyebrows.

    As earlier reported by TOI, while the naval MR-SAM project was sanctioned by the Cabinet Committee on Security in December 2005 at an initial cost of Rs 2,606 crore, the IAF one for nine squadrons worth Rs 10,076 crore was cleared in February 2009. While the naval system was tested for the first time in November 2014, the IAF one was tested thrice earlier this month.

    With an over 70-km interception range against enemy aircraft, drones and missiles, the naval MR-SAM has already been fitted on the three new Kolkata-class destroyers. But each MR-SAM system is now projected to cost around Rs 1,200 crore for the 12 under-construction warships in Indian shipyards, including aircraft carrier INS Vikrant, four guided-missile destroyers and seven stealth frigates. "Consequently, the orders are on hold as of now. A review to cut costs is in progress," said a defence ministry source.
    This has also led to the estimated Rs 14,000-crore Army project to acquire these MR-SAMs, which come with missiles, launchers, surveillance and threat tracking radars, and fire control systems, to be kept in abeyance till now.


    The JWG also discussed probable joint R&D projects in fields like high-endurance UAVs (unmanned aerial vehicles), micro-satellite surveillance systems, armoured vehicles and different types of missiles and precision-guided munitions, said sources.




    Then, there are several big-ticket deals in the pipeline. These include two more Israeli Phalcon AWACS (airborne warning and control systems), which are to be mounted on Russian IL-76 military aircraft, and four more Aerostat radars.
    The IAF is also on course to acquire 164 laser-designation pods or 'Litening-4' for fighter jets like Sukhoi-30MKIs and Jaguars as well as 250 advanced 'Spice" precision stand-off bombs capable of taking out fortified enemy underground command centres.




    The Army, in turn, is looking to acquire the Israeli third-generation Spike anti-tank guided missile systems, with an initial 321 launchers and 8,356 missiles, which too is making slow progress due to the high costs involved. The force is likely to go in for an initial two regiments of the Israeli Spyder quick-reaction SAM systems to defend its forward units for enemy air strikes.
    http://timesofindia.indiatimes.com/...ventures-with-Israel/articleshow/53256697.cms
     
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  3. prateikf

    prateikf Regular Member

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    Does the Indian govt think it will get the best available system for peanuts ? If they want the best they should be prepared to pay for it. After all its for national security. Even for the Rafale deal when Egypt and Qatar have bought the aircraft at the same price offered for India. How come only our MOD is claiming it to be expensive while Egypt and Qatar have already bought it.
     
  4. angeldude13

    angeldude13 Lestat De Lioncourt Senior Member

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    Their money their choice. Our money our choice :)
     
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  5. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    If Defense is a sabji bazar and India is a small country as Nigeria, I would have support your view ..

     
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  6. Sidd

    Sidd New Member

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    Israel need Indian money not the other way around... We can have JV with other countries too.. They charge too much... They need to know that..
     
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  7. prateikf

    prateikf Regular Member

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    The logic is simple - if you want the best be prepared to pay for it. What about the C-17 and C-130 J purchase ? Did we not pay an exorbitant price for it ? They were not even combat aircraft. FMS route too is very expensive for the nation.
     
  8. Hari Sud

    Hari Sud Senior Member Senior Member

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    India paid a third of the development cost of Barak 8 /MR SAM and developed the propulsion system. Any price Israel wish to charge has to reflect that.
     
  9. Raj Malhotra

    Raj Malhotra Regular Member

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    I stand vindicated, as I have repeatedly pointed out that Barak-8 missile is a fake JV with practically no ToT and almost ten times more costly then Akash. I have also strong doubts over its claimed range of 70km, as I think it is around 25-50km only. Also don't go by costs of Rs 1200 crores per ship of Rs 10,000 crores for 9 Regiments. The deals were entered in USD when Rupee was around 45-55 per dollar. Hence these deals with Rupee depreciation and escalation clauses etc will be twice more costly then price being quoted by Agusta Patrakars. Very soon the Rudalis would be wailing how Indian defence is being compromised.
     
  10. Raj Malhotra

    Raj Malhotra Regular Member

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