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That does not negate the fact that this tank is coming out to be 2.5 times T-90...One of the reason for going local is to reduce the cost and of-course enjoy the benefits of self-sufficiency...No doubt mass-production will bring the cost down but to what extent??? Secondly labour cost in India is much lower as compared to ruskies...so unless this value has been reported out of context i think it will be called ridiculous...
Now if this Arjun tank can single handedly take 2 T-90's i have no problem with the cost...but can it???
It seems that Mr Antony stated the cost to be 37 crore with the development cost included and not the production cost per unit.Like,a F22 fly away cost is 150 mn $ but when development cost is included,the unit price grows up to 350 mn $ per plane.Same case may be the here,or my be not. We need more data to be sure.
REGARDS......
New Recruit
We are not purchasing arjun from other country so as far as we are concerned the per unit cost of arjun mk2 will be around 37 crore rs.It seems that Mr Antony stated the cost to be 37 crore with the development cost included and not the production cost per unit.Like,a F22 fly away cost is 150 mn $ but when development cost is included,the unit price grows up to 350 mn $ per plane.Same case may be the here,or my be not. We need more data to be sure.
REGARDS......
We are not purchasing arjun from other country so as far as we are concerned the per unit cost of arjun mk2 will be around 37 crore rs.
The one being conceived will have the 1500HP Indian Engine but the one being tested in Pokhran might be having the German Engine as DRDO have said that the changes will be carried out in stagesis Mk-2 come with new indigenous 1500HP engine or same German engine
During a visit to HVF and to the Central Vehicles R&D Establishment (CVRDE), which has developed the Arjun, Business Standard was explained that the cost of the Arjun is easily reduced. If the army places a larger order the price will drop by 30%.
P Sivakumar, Director of CVRDE, explains that 50% of the cost of the Arjun Mark I went on three imported components --- the gunner’s main sight (GMS) from OIP Systems, Belgium; the gun control equipment (GCE) from Bosch, Germany; and the power pack (engine and transmission) from Renk, Germany --- which together cost Rs 12 crore. Ordering just 124 pieces left little leeway to beat down that price.
“If you are talking just 124 tanks, there is a problem. Bring an order for 500 tanks. We will go for ToT (transfer of technology) for the foreign parts… The cost of labour in Germany is the highest in the world. We will build 70% cheaper in India. If we buy the power pack of the Arjun for Rs 7.5 crore today… I will produce it in India for just Rs 4-5 crore,” says Sivakumar.
For an army with more than 3,500 tanks, including 2,400 obsolescent T-72s that are crying out for replacement, ordering just 124 Arjun Mark IIs seems unduly cautious. But the army has little incentive to reduce cost. Though the generals are now willing to order more Arjuns, they are placing their orders piecemeal.
Since most of the Arjun’s 10,000 components are outsourced, the size of the order is a crucial determinant of what price they are supplied at. Says RK Jain, Additional DG of the Ordnance Factory Board (OFB) who oversees HVF: “If the army’s indent is for just 124 tanks, the vendors charge higher prices. Besides, the amortisation cost of jigs, tools and equipment is reduced over a larger order. HVF and CVRDE have been jointly requesting the army to confirm an order of at least 250 Arjun Mark IIs so that we can negotiate from a stronger position,” says Jain.
Another reason for the Arjun Mark II’s rising cost becomes obvious at the Arjun production line at HVF, where the army is collecting the last of 124 Arjuns that were cleared for production in 2008. Just as the Rs 50 crore Arjun line has hit its stride, it must shut down for at least two years since another order can come only after the Arjun Mark II trials next year.
Thats overpriced, and rediculous.
What kind of APS suite does MK 2 has????