- Oct 2, 2016
I always have this severe dislike for PSUs in defence.Our contract is signed. We are waiting for production to start. You can thank OFB for the delay.
GoI was forced to put a DPP 2016 board to investigate the deal to reduce prices.
|The defence ministry has cancelled two arms import contracts for the army worth over $ 2.5 billion that were in the final stages, preferring to go for the Make in India route. In a special meeting held on Tuesday, chaired by the Defence Secretary, it has been decided that plans to procure close quarter carbines from a UAE based company and a program to import Self Propelled Air Defence systems from South Korea are being scrapped.|
The meeting, which was also attended by Chief of Defence Staff Gen Bipin Rawat, concluded that the contracts will now be placed under the Make in India initiative to give a boost to the domestic industry, sources said.
It is not clear under which clause the procurements would proceed but the army has projected an urgent requirement for close quarter carbines and had been processing the deal under a fast track process. As reported by ET, a view within the government was that with recent announcements on Atmanirbhar Bharat, as well as representations from domestic companies promising an equivalent product for sale, the import case needs to be cancelled.
A UAE based arms manufacturer Caracal had been shortlisted to supply 93895 close quarter carbines for the army has written to the defence ministry after it emerged as the lowest bidder for a fast track procurement by the army in 2018.
The case was tricky, given that the Caracal group had not been originally included in the list of companies to which tenders were to be issued in 2018 by the army. It only managed to enter the competition after the Acquisition wing of the Defence Ministry recommended its inclusion. Fed up with delays in the acquisition case that was to be fast tracked, the Army had recommended either the case has to be shut down or should move to the next stage of contract negotiation at the earliest.
The acquisition case for Self Propelled Air Defence Gun Missile System (SPAD-GMS) – the Indian Army wants five regiments of the guns that can be deployed with forward moving forces and can be quickly relocated on the basis of threat perception – has also been cancelled after South Korean company Hanwa’s K 30 Biho was shortlisted by the Army.
The estimated $ 2.5 billion contract for new air defence systems for the Army has been hanging fire since last year after Russia protested that it had been unfairly disqualified from the competition in which the Korean company was shortlisted.
Both the Russian upgraded Tunguska M1 and Pantsir missile systems failed to qualify for the acquisition of 104 system that are needed by the Army, promoting a formal complaint to the Independent Monitors (IMs) set up within the MoD to monitor acquisition cases.
As reported by ET the IMs recommended that the Russians be given another chance to prove the system. This however, was found to be unfair by the acquisition wing that had pointed out that a re-trial opportunity at this late stage would set a dangerous new precedent and would vitiate the principle of a level playing field.
While the recommendation was to expedite the contract negotiation or move for a retrial at the earliest, the contract has now been scrapped keeping in mind new plans under the Make in India initiative.
The two programs would come as a welcome surprise for the Indian industry, particularly the private sector, which has developed capabilities over the past few years to manufacture such systems domestically.
Are woh @Bhumihar Dada ee news dekha keya??
I couldn't care less even if they are exactly copied. If they perform well. Then GOI should consider procuring them. The main problem is that our small arms had to function in the most extreme climates & seriously it's no joke.Reports
The state of Indian MIC and Procurement is such that u can't be sure about anything until weapons start rolling out of factories and into the hands of soldier's.
INSAS 1c has come a long way but it's just another lolipop from OFB.
Sss guns we have already discussed I will call them rip offs until they present their own model.
It could be the one solution for all role like Galil though with Caracal we can have better bargain on product ownership.
Would love to see a Made-in-India ARAD as the IA's future carbine.
So each grenade costs around 4000 RsIn a first for private sector, Defence Ministry places order for 10 lakh hand grenades
In a first for the private sector in India, the defence ministry has placed orders on the industry for the supply of ten lakh hand grenades to replace a vintage design in service with the forces, marking a major change from the past where similar products were either imported or made by the Ordnance Factory Board (OFB).
The contract for supply of the modern hand grenades, to be spread over a period of two years, was signed on Thursday with Economic Explosive Limited (EEL) and is valued at over Rs 400 crore. The new grenades – called multi mode hand grenades (MMHG) – have been designed by the Terminal Ballistics Research Laboratory of DRDO and is completely made in India.
The contract marks the first time that a privately owned company will supply the armed forces a completely built ammunition, reducing single source dependency of the OFB. Sources said that the costing of the grenades is also lesser than comparative production costs by OFB.
These new grenades will be supplied to the army and air force to replace Grenade No 36 – a World War II vintage design – that is currently in service. The MMGH can be used in fragmentation and stun modes and has a proven accurate delay time and high usage reliability.
DRDO had transferred technology to manufacture the grenades to the private company in 2016, following which extensive trials were carried out by the army in all weather conditions. These included trails in the deserts, high altitude areas as well as plains.
“The MMHG case showcases how private-public partnership can deliver results very successfully for the vital defence sector in just a few years. It is for the first time in India that a privately owned company would be getting to supply an order for complete ammunition,” a senior EEL executive said.
With the technology proven, the defence ministry fast tracked the acquisition case in just over a year, marking a speedy internal decision making process for a fully indigenous system. While there is a significant domestic demand for the MMHG, with India looking at becoming an export destination, the order could open up the international market for EEL as well. EEL is part of the Solar Group, which has set up a 2,000 acre facility for manufacturing ammunition and high energy materials in Nagpur - the biggest such project undertaken by the private sector.
In a first for the private sector in India, the defence ministry has placed orders on the industry for the supply of ten lakh hand grenades to replace a vintage design in service with the forces, marking a major change from the past where similar products were either imported or made by the...www.defencenews.in
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