The General Manager of Rifle Factory Ishapore, DK Mahapatra, has stated that the per-unit price of the 'R2' 7.62x51mm rifle comes to about Rs. 80,000 which is $ 1,121. Statement here:
Army orders US assault rifles even as RFI offers its own version at a cheaper rate - Times of India
In the same article, it is said that 'sources' indicate the SIG price was around Rs. 1 lakh per.
Now, we have sources explicitly stating that the SIG 716G2 Patrol was quoted $ 990 per piece (or Rs. 70,618) in the tender for 72,400 rifles (Jane's article here:
https://www.janes.com/article/86149...procurement-of-72-400-sig-sauer-rifles-for-ia). However we also have sources saying that the total deal value was Rs. 700 crores, which indeed does come to about 96,000 per rifle or $ ~1350.
Some observations:
Although details remain sketchy, it is oft stated by varying sources that the deal also includes "accessories", which might or might not mean:
Forward Vertical Grips
Muzzle Attachments
Extra Magpul PMAG Magazines
Back-Up Iron Sights (BUIS)
and most importantly - optics.
In the civilian market, a typical 20-round PMAG costs $20, BUIS (from Magpul) about $40, a vertical grip also about $20, even if we consider all these were offered at half-price due to bidding, that's still 40 dollars extra - per rifle (1 extra mag per rifle). Those alone add about $3 million to the deal value.
If we assume we are also buying at least a red dot sight per rifle, also from SIG, and assume the same half-price quote, that adds about $11 million, at about $150 per piece.
If we were buying a 3x magnifier instead, and apply same half-price, it would add $17 million. Which would bring us to about $90 million total, or about 640 crores (if we assume $72 million for rifles alone).
If any of those accessories were indeed included, and the quoted prices were above half-price (or a more expensive option chosen rather than what I calculated), then easily that could constitute a $99 million (or 700 crore) deal to include accessories, while keeping the per unit price of the rifles themselves at $ 990. That's if we assume the prices for accessories will be separate from the price of the rifle.
If not anything else, extra magazines and 1 set of BUIS per rifle are an absolute MUST.
This is ofcourse, only if the actual quote itself wasn't 1 lakh per.
NOTES:
It is my sincere belief that if the piss-poor quality & workmanship of OFB is what one gets on a rifle that is supposedly only about 16k cheaper, then I would say NO THANK YOU. On the other hand, if the price for SIG716 was indeed only 70k and OFB is actually asking Rs. 10k MORE than SIG for an assault rifle in the same calibre, I would say that is a PURE AND BLATANT RIP-OFF.
Additional Notes:
Unless the text wasn't later edited by the writer, the TOI article is also the first confirmation from an Indian authority (RFI GM) that the rifle to be manufactured at OFB Korwa (Amethi) will indeed be AK-203, not 103 -
.... "Over time, we have also developed the Ghatak 7.62 x 39 mm assault rifle. This is of the same quality as the
AK-203 that the Ministry of Defence is planning to build at Ordnance Factory Korwa in collaboration with Russia. The only difference is the Picatinny Rail (for fitting of accessories) that the Ghaatak doesn't have. That can always be fixed. " The GM added. .....
My comment: You ought to have incorporated such basic things as long-length 12'o clock rail into the design from Day 1 (instead of a handguard rail). It's not like dust covers with P rails were only invented after you started building Ghaatak. Such gross negligence and being utterly unaware of even relatively low-tech advancements made in firearms industry over 20 years ago shows your quality of work and workmanship. Nuff said.
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