I mean because Amethi is where AK203s will be made so they’d rather sacrifice Sig deal for more screw driver work in UP. Who cares about messing up logistics and hampering frontline units right?
There is no official confirmation of a cancellation. The deal is tiny ($70-72 million) compared to other cancelled deals and has more immediate value in terms of utility.
Other major projects like the Mig 29s, Klub Missiles, Heavy Weight Torpedoes, P 8i , etc have been put in a Foreclosure and Deferment List aka backburner for now.
Also no publication including this article from India Today has confirmed that the Sig 716i deal has been cancelled, just that it is under review.
Even Times Now mentioned that the deal was under review. As a thumb rule, defence deals not mentioned publically during a blood letting are generally considered 'safe'.
A virtual Defence Acquisition Council (DAC) meeting to decide on the purchase of foreign weaponry that is already under negotiation has been planned.
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During the short meeting, held 'virtually,' as the defence minister is down with Covid, it was decided to firmly push indigenisation or as the government said, atmanirbharata.
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More deals on the chopping block in a follow-up meeting of the Defence Acquisition Council on January 20
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