BAE opts out of Indian Army's towed guns tender

[bhagat]

BAE opts out of Indian Army's towed guns tender


New Delhi, April 28 (IANS) British arms major BAE Systems Thursday opted out of India's tender for 1,580 towed artillery guns with the deadline for submitting the bids comming to an end, a company official said here.

The tender was issued on January 28 under the Indian Army's Rs.20,000 crore (Rs.200 billion/$ 444.8 million) artillery guns modernisation programme that has been hit by the taint surrounding the purchase of the Bofors guns 24 years ago.

The firm has the FH-77B05 155-mm 52calibre towed gun among its products that it could have offered, but will now not do so after a detailed assessment of the tender documents, the official said.

BAE Systems, however, is on the verge of signing a Rs.2,900 crore contract for 145 M-777 ultra-light howitzers. This gun is manufactured by the company in the US and the sale will be under the Foreign Military Sales route of the US government.

The tender for the towed guns seems jinxed, with the defence ministry cancelling the March 2008 tender in July 2010 and issuing a fresh request for information after BAE's competitor Singapore Technologies Kinetics had sought more time for bringing its gun iFH-2000 for the trials in India, citing a single vendor situation emerging due to that development then.

Later, the defence ministry issued a Request for Proposals (RFP) for the gun in January which it did not send to Singapore Technologies Kinetics. The firm had, in 2008, found itself in a quandary after it was named in a corruption case against former Ordnance Factory Board chief Sudipto Ghosh by the Central Bureau of Investigation.

"While we are certain that the FH-77B05 is the most capable 52calibre towed gun available, and it was specifically designed for and demonstrated to meet the Indian Army's requirements as stated in previous RFPs, BAE Systems has, after very careful consideration, come to the conclusion that the company will not submit a proposal. The Ministry of Defence has been informed," Guy Douglas, head of communications strategic markets for BAE Systems told IANS.

The conclusion was reached following a detailed assessment of the new RFP, Douglas said.

"We found that the new RFP includes technical and performance relaxations that allow less capable weapon systems to enter the competition. This significantly reduces the competitive advantage FH-77B05 derives from its greater capability," Douglas said, giving reasons for their decision to opt out of the race.

The FH-77B05 was optimised for the more taxing requirements of the previous RFPs, he said. "Therefore, the decision not to bid is a commercial one based on the high investment costs required to participate in a complex artillery competition of this nature, where the win probability has been reduced," he added.

However, on behalf of his company, Douglas made it clear that "the company's commitment to India and the development of India's domestic defence industry remains resolute."

He said BAE Systems and Defence Land Systems India, its artillery partner through a joint venture with Mahindra and Mahindra, were "acutely aware" of India's requirement to upgrade its artillery capabilities and therefore "remain willing to fully assist" the defence ministry and army achieve this aim.

Under the present tender for 1,580 guns, 400 units are to be purchased off-the-shelf and the rest 1,180 units are to be license-produced in India by the Ordnance Factory Board (OFB) after transfer of technology.

India had also sent the Jan 2011 tender documents to gun manufacturers in France, the US, Israel and the Czech Republic. The information on their responses to the tender is not known.
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[bhagat]

BAE Not to Sell Upgraded Bofors Guns to Army

Global defence major BAE Systems today pulled out of Defence Ministry's tender for purchase of 400 towed artillery guns--an upgraded version of Bofors guns--for the Indian Army.

The decision was taken after the company realised that the new tender includes technical and performance relaxations that allow less capable weapon systems to enter the competition, which reduces the competitive advantage of their FH-77B05 gun, BAE spokesperson Guy Douglas said in a statement.

"BAE Systems has, after very careful consideration, come to the conclusion that the company will not submit a proposal. The Ministry of Defence has been informed," he added.

The 155mm 52 calibre towed howitzers intended to be offered by the BAE Systems is an upgraded version of the Bofors guns inducted into the Army in the late 80s.

The last date of submission of bids was today and the company did not submit its bid for the programme for towed artillery guns.

Following BAE decision, the tender for the towed guns as part of Indian Army's artillery modernisation programme has been beset with some problem or other.

Douglas said the decision not to bid is a "commercial one" based on the high investment costs required to participate in a complex artillery competition of this nature, where the win probability has been reduced.

After the Bofors gun scandal broke out, this is the fifth time the Army's plan to induct artillery guns has run into rough weather as earlier attempts had failed due to corruption allegations and other reasons.

The last tender was cancelled after Singapore Technologies, one of the two participating companies in the deal, was blacklisted by the Defence Ministry following corruption allegations in the Ordnance Factory scam.

Douglas however made it clear that the company’s commitment to India and the development of India’s domestic defence industry remained "resolute."

India is also planning to induct the Ultra Light Howitzers manufactured by BAE Systems through the Foreign Military Sales route from the US.

Under its Rs 20,000 crore artillery modernisation plan, the Army is looking to induct several types of howitzers including towed, self propelled and mounted ones.

news.outlookindia.com | BAE Not to Sell Upgraded Bofors Guns to Army

 

[hembo]

This appears to be another perfect recipe for one more GHOTALA...

First tender was cancelled to enable Singapore Technologies to participate.. Later the firm's corruption case with Sudipto Ghosh..

Now this

"While we are certain that the FH-77B05 is the most capable 52calibre towed gun available, and it was specifically designed for and demonstrated to meet the Indian Army's requirements as stated in previous RFPs, BAE Systems has, after very careful consideration, come to the conclusion that the company will not submit a proposal. The Ministry of Defence has been informed," Guy Douglas, head of communications strategic markets for BAE Systems told IANS.

The conclusion was reached following a detailed assessment of the new RFP, Douglas said.

"We found that the new RFP includes technical and performance relaxations that allow less capable weapon systems to enter the competition. This significantly reduces the competitive advantage FH-77B05 derives from its greater capability," Douglas said, giving reasons for their decision to opt out of the race.

Why would anyone mellow down technical specification (that too in a revised and revised tender), so that inferior system can make an entry??

These mofos will even sale their mothers for few bucks, leave aside country's security..

 

[subarihant]

^^^ And in other threads ppl are singing praises about AK Anthony and his ministry's transparency.

 

[hembo]

^^^ And in other threads ppl are singing praises about AK Anthony and his ministry's transparency.

Well, Anthony may not be necessarily involved. Why people starts blaming the head of the family if some other member is the guilty one? It's like people going after MMS's blood after ghotala by someone else.

Have patients, now with RTI around, the transparency has really improved to a great extent. The guilty, if any, will eventually be brought to justice, me hope. I did not meant to say that Anthony was the corrupt one. But there must be someone (technical committee?) who appears to have participated in foul play.

 

[subarihant]

Well, Anthony may not be necessarily involved. Why people starts blaming the head of the family if some other member is the guilty one? It's like people going after MMS's blood after ghotala by someone else.

We can't blame MMS as he is not directly responsible for Defence ministry but Anthony is definitely responsible as it is his own ministry.
I am not saying Anthony is corrupt, I am merely pointing out his efficiency in rooting out corruption from his ministry.

 

[tushar]

Well, Anthony may not be necessarily involved. Why people starts blaming the head of the family if some other member is the guilty one? It's like people going after MMS's blood after ghotala by someone else.

But it is Antony's family.....and as the head of the family he must take care of all such cases....

BAE opts out of Indian Army's towed guns tender

I don't get why we cancelled the deal everytime ?? I mean BAE bofors won every time, why they can't just purchase the damn deal ?? IA needs these towed artillery in a number around 1500, it will also take a decade to produce so many guns...
Its just the beginning. i am sure soon ST will also opt to get out of this deal....some of them are already banned....god help our army.....

I hope M777 deal is signed this year....

 

[GUNS-N- ROSES]

lol our MOD babus are worst in the world. we r facing severe crunch of artillary guns dont know wen the problems in this field will be solved.

pakistan is way ahead of india in terms of artillary weapons. i hope Antony does give a kick to our babus.

 

[Bang Galore]

#This is a pretty simple matter. The Bofors gun is the only one that continuously meets Indian army specification.The army has it made it clear that this gun is what it wants.
#The Congress government is petrified of giving the order to Bofors because of the earlier case and because the opposition will have a field day with the story.
#The specifications therefore have to be diluted to allow other lesser options a look in.
#Bofors decides that it is never going to get this contract, no matter how well its guns perform.
#Ergo, time to say goodbye!

 

[true_indian]

BAE opts out of Indian Army's towed guns tender


New Delhi, April 28 (IANS) British arms major BAE Systems Thursday opted out of India's tender for 1,580 towed artillery guns with the deadline for submitting the bids comming to an end, a company official said here.

The tender was issued on January 28 under the Indian Army's Rs.20,000 crore (Rs.200 billion/$ 444.8 million) artillery guns modernisation programme that has been hit by the taint surrounding the purchase of the Bofors guns 24 years ago.

The firm has the FH-77B05 155-mm 52calibre towed gun among its products that it could have offered, but will now not do so after a detailed assessment of the tender documents, the official said.

BAE Systems, however, is on the verge of signing a Rs.2,900 crore contract for 145 M-777 ultra-light howitzers. This gun is manufactured by the company in the US and the sale will be under the Foreign Military Sales route of the US government.

The tender for the towed guns seems jinxed, with the defence ministry cancelling the March 2008 tender in July 2010 and issuing a fresh request for information after BAE's competitor Singapore Technologies Kinetics had sought more time for bringing its gun iFH-2000 for the trials in India, citing a single vendor situation emerging due to that development then.

Later, the defence ministry issued a Request for Proposals (RFP) for the gun in January which it did not send to Singapore Technologies Kinetics. The firm had, in 2008, found itself in a quandary after it was named in a corruption case against former Ordnance Factory Board chief Sudipto Ghosh by the Central Bureau of Investigation.

"While we are certain that the FH-77B05 is the most capable 52calibre towed gun available, and it was specifically designed for and demonstrated to meet the Indian Army's requirements as stated in previous RFPs, BAE Systems has, after very careful consideration, come to the conclusion that the company will not submit a proposal. The Ministry of Defence has been informed," Guy Douglas, head of communications strategic markets for BAE Systems told IANS.

The conclusion was reached following a detailed assessment of the new RFP, Douglas said.

"We found that the new RFP includes technical and performance relaxations that allow less capable weapon systems to enter the competition. This significantly reduces the competitive advantage FH-77B05 derives from its greater capability," Douglas said, giving reasons for their decision to opt out of the race.

The FH-77B05 was optimised for the more taxing requirements of the previous RFPs, he said. "Therefore, the decision not to bid is a commercial one based on the high investment costs required to participate in a complex artillery competition of this nature, where the win probability has been reduced," he added.

However, on behalf of his company, Douglas made it clear that "the company's commitment to India and the development of India's domestic defence industry remains resolute."

He said BAE Systems and Defence Land Systems India, its artillery partner through a joint venture with Mahindra and Mahindra, were "acutely aware" of India's requirement to upgrade its artillery capabilities and therefore "remain willing to fully assist" the defence ministry and army achieve this aim.

Under the present tender for 1,580 guns, 400 units are to be purchased off-the-shelf and the rest 1,180 units are to be license-produced in India by the Ordnance Factory Board (OFB) after transfer of technology.

India had also sent the Jan 2011 tender documents to gun manufacturers in France, the US, Israel and the Czech Republic. The information on their responses to the tender is not known.
Mangalorean.Com- Serving Mangaloreans Around The World!

isn't 20000 crore mean more than 4 billion..Why don't they proof read before printing it?

 

[KS]

What is the bloody farking problem in giving to the Bofors ?

After all it was the Bofors that saved our skin in Kargil. An excellent gun it is.

 

[tushar]

^^^
This one is much advance than that one and it has passed everytime in these artillery tests....i think GOI should discuss the result of these tests in the parliament so that no one can blame later and hand over the deal to BAE as soon as possible....

 

[KEETARP]

So the options now are ???????????

If anything this is a slap on the bureaucratic hassles of MOD . Almost each and every major gun maker is either blacklisted , or has opted out .

Ultimately Indian Army is going to suffer because of moral practice of Congress and MOD (anti-bofors) .
Hope day never comes when we have to reply cross-border firing by Hand grenades . While Mod is busy blacklisting and diluting Requirements .

 

[sadib888]

I believe they have a special forces unit called MARCOS or something that preformed some of the rescue operations.

 

[IndianArmy]

I believe they have a special forces unit called MARCOS or something that preformed some of the rescue operations.

where?????????