• Thursday, July 19, 2018

India has cancelled $500 million defence deal with Israel

Discussion in 'Land Warfare' started by Windjammer, Jan 3, 2018.

  1. Windjammer

    Windjammer ELITE MEMBER

    Messages:
    27,544
    Joined:
    Nov 9, 2009
    Ratings:
    +117 / 79,569 / -3
    Country:
    Pakistan
    Location:
    United Kingdom
    India has cancelled $500 million defence deal, says Israeli arms firm

    PTI | Updated: Jan 3, 2018, 16:27 IST

    HIGHLIGHTS
    • The company did not give a reason for the cancellation of the deal.
    • Spike was selected by India after a long and rigorous process.
    • India had planned to acquire the ATGMs for the Army at a cost of $500 million.
    [​IMG]
    File photo of an Israeli soldier firing an anti-tank missile Spike-LR. (Representative image/Reuters)

    JERUSALEM: A top Israeli arms firm has confirmed that India cancelled a $500 million deal to develop Spike anti-tank guided missiles and expressed "regret" over the decision just ahead of Prime Minister Benjamin Netanyahu's first visit to the country.
    "Rafael has now received an official notification from India's Ministry of Defence concerning the cancellation of the Spike deal," Ishai David, a spokesman for the Rafael Advance Defence Systems Ltd, told PTI here.

    Spike, in use by 26 countries around the world, is said to have been selected by India after a long and rigorous process and after complying with all the defence procurement regulations.

    "It should be emphasised that the cancellation was made prior to the signing of the contract and despite Rafael's compliance with all the demands," the company said in a statement.

    "Rafael regrets the decision and remains committed to cooperating with the Indian Ministry of Defence and to its strategy of continuing to work in India, an important market, as it has for more than two decades, to provide India with the most advanced and innovative systems," it added.

    The company did not give a reason for the cancellation of the deal.

    The cancellation comes days before Netanyahu's four-day visit to India starting January 14 and is likely to be taken up for discussion. Rafael's CEO would also be accompanying Netanyahu.

    The company recently inaugurated its facilities in Hyderabad where the project was to be executed but company sources said that it is "designed to accommodate a number of other projects Rafael is engaged in with its Indian partners".

    As per the original proposal, India had planned to acquire the ATGMs for the Army at a cost of $500 million.


    The defence ministry has been strongly pushing for transfer of technology in procuring various weapons and other platforms from foreign defence majors as part of its broad policy initiative to encourage domestic defence industry.


    Official sources in New Delhi had earlier indicated that the proposal to acquire the missile system faced hurdles when Israeli side apparently expressed reservations in ensuring full transfer of technology as per the provisions of the 'Make in India' initiative.
     
    • Thanks Thanks x 1
  2. Dungeness

    Dungeness SENIOR MEMBER

    Messages:
    4,918
    Joined:
    Sep 21, 2015
    Ratings:
    +3 / 14,291 / -2
    Country:
    China
    Location:
    United States
    When can Indians learn to be serious about the serious business, such as national arms procurement programs?
     
    • Thanks Thanks x 1
  3. Garian

    Garian BANNED

    Messages:
    115
    Joined:
    Jan 2, 2018
    Ratings:
    +0 / 41 / -0
    Country:
    India
    Location:
    India
    More than a month old news.


    Spike missile was not a priority as neither China nor Pakistan have any third gen Man portable ATGMs in service.
    HJ-12 is still undergoing tests and won't get operational clearance before 2020.
     
    • Thanks Thanks x 1
  4. 313ghazi

    313ghazi SENIOR MEMBER

    Messages:
    2,119
    Joined:
    Mar 14, 2017
    Ratings:
    +9 / 2,864 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    Are they just being cheap?
     
  5. Ryuzaki

    Ryuzaki SENIOR MEMBER

    Messages:
    3,023
    Joined:
    Feb 1, 2015
    Ratings:
    +0 / 4,664 / -8
    Country:
    India
    Location:
    Netherlands
    Domestic alternative is progressing nicely
     
    • Thanks Thanks x 1
  6. Dark-Destroyer

    Dark-Destroyer FULL MEMBER

    Messages:
    704
    Joined:
    Dec 18, 2016
    Ratings:
    +0 / 555 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    what is the domestic alternative?
     
  7. shootingstar

    shootingstar BANNED

    Messages:
    930
    Joined:
    Dec 31, 2017
    Ratings:
    +0 / 315 / -0
    Country:
    India
    Location:
    Canada
    Unfortunately, India no longer has money after demonetization misadventure as the GDP has tanked.

    Month old news but only confirmed now officially.
     
  8. Sully3

    Sully3 BANNED

    Messages:
    3,454
    Joined:
    Nov 23, 2015
    Ratings:
    +2 / 5,045 / -7
    Country:
    United Kingdom
    Location:
    Pakistan
    Indian corrupt generals made money regardless