Why cancel a whole missile which was developed with lots of time and money for the launch platform, when we could just have worked on it. Same questions were raised with the Akash missile, wasn't the platform changed there.
It is not cancelled, not yet. Nag has cleared the trials and has been ordered by the army.
Indian Army had earlier placed its Acceptance of Necessity (AON) for 443 Nag missiles 13 NAMICAs in 2005. The Army had made it clear then that a firm commitment will only be given once all trials are successful and the system is fit for induction. The Army also projected in their perspective plan the need for 7000 Nag missiles and around 200 NAMICAs.
After the user trials in 2010, we had accepted Nag as an ATGM, but wanted integration with launcher improved," Army sources told Express. The electro-mechanical systems of the two NAMCIAs used during trials (both made by BEL) were found to be below Army's expectations in tough dessert terrain conditions, including reliability concerns propping-up.
Check post 158 on last page.