India clears $6.8 Billion worth of Defence Procurements within a month! A look on the Shopping List

[Chanakya's_Chant]

India clears $6.8 Billion worth of Defence Procurements within a month!
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The Ministry of Defence on July 20, 2014 cleared procurement proposals worth Rs. 21,000 crore and procurement proposals worth Rs. 21,000 crore on August 29, 2014 . That amounts to Rs. 41,000 crore worth of defence procurement proposals being cleared roughly within a month! Rs.41,000 crore = $6.8 Billion

The Defence Acquisition Council has cleared the following proposals -

(01) 58 Transport Aircrafts replacing Indian Air Force’s ageing Avro transport aircraft fleet. As per the programme, 16 aircraft would be manufactured by the foreign vendors while 40 would be built within the country.

(02) 32 Dhruv Mk III advanced light helicopters, for the Indian Navy and the Indian Coast Guard by Hindustan Aeronautics (HAL)

(03) 5 fleet support ships for the Indian Navy for which the Request for Proposal (RFP) is to be issued to all public and private sector shipyards.

(04) Offshore Patrol Vessels and Fast Patrol Vessels for the Coast Guard, pegged at Rs 2,360 crore - to be made in India only.

(05) 22 AH-64 Apache Attack Helicopters by Boeing

(06) 15 CH-47 Chinook Utility Helicopters by Boeing

(07) 118 Arjun Mark II Main Battle Tanks by the Defence Research Development Organisation.

(08) 40 Arjun Catapult 130-mm Self-Propelled Artillery Systems by the Defence Research Development Organisation and Ordinance Factories Board

(09) Integrated Anti-Submarine suits for 11 frontline warships - 11 Towed Array Sonars and Decoy Systems (ATAS) for warships built under Project 7 A and Project—15B indigenously by the Defence Research Development Organisation.

(10) Mid-life upgrade of the six submarines, which would be carried out in Indian shipyards - (4 Kilo and 2 Shishumar Class Submarines)

(11) 16 multi-role helicopters in a deal in which American Sikorsky and European NH Industries, which includes AgustaWestland, are in contention.

(12) Dedicated mobile communication systems for Army troops deployed along the China border under Tezpur—based 4 Corps, Dimapur—based 3 Corps and Leh—based 14 Corps.

Source(s):- Modi Government To Shop For Choppers in India
Defence Ministry okays procurement proposals worth Rs 21,000 crore | The Indian Express
Govt scraps Rs 6,000-cr tender for Light Utility Helicopters | Business Line
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[Agent_47]

In the case of 58 Transport Aircrafts and 5 fleet support ships, process has just started.
It will take 2-3 years to finalize.

 

[Sankpal]

bhai 6bn...... before from mornig we r discussing for 2-3 bin

 

[Chanakya's_Chant]

bhai 6bn...... before from mornig we r discussing for 2-3 bin

Simple calculation - $3.3 Billion cleared today - $3.5 Billion cleared last month Total = $6.8 Billion

 

[arp2041]

bhai 6bn...... before from mornig we r discussing for 2-3 bin

Bhai, India me thoda 19-20 chalta hai!!

 

[A.M.]

Impressive. We're still trying to figure who rang whose phone first.

 

[$@rJen]

Holy smoke... my @ss is on fire

Whats up with ATGM??/ no news about them???

 

[Nova2]

Awesome $6billion...lol that's a lot. I feel best of'em all was scraping of the $1billion LUH tender,let'em go for domestic product ,it may be inferior at intial stages but it can be upgraded in the future as per the needs of the IAforces(F).

 

[NKVD]

Impressive. We're still trying to figure who rang whose phone first.

 

[A.M.]

A reference to current drama between COAS and NS.

 

[thesolar65]

What I infer from the above except from submarine upgrade others are good.

Regarding submarine upgrade, I would advice not to upgrade it in India, but from where they came from. It will cost a bit more but from experience where another Kilo class submarine which is being upgraded in India is lying idle for quite a long time and its already written off. INS Sindhukriti is an example.

INS Sindhukirti (S61) - Wikipedia, the free encyclopedia

@Abingdonboy @he-man @HariPrasad @sreekumar @TejasMk3 @DRAY @WAR-rior @Omega007 @sancho @ranjeet

 

[Chanakya's_Chant]

What I infer from the above except from submarine upgrade others are good.

Regarding submarine upgrade, I would advice not to upgrade it in India, but from where they came from. It will cost a bit more but from experience where another Kilo class submarine which is being upgraded in India is lying idle for quite a long time and its already written off. INS Sindhukriti is an example.

INS Sindhukirti (S61) - Wikipedia, the free encyclopedia

Well they will be partly refitted from the original equipment manufacturer in the Indian shipyards only! Mate at $156m, refit expenses on INS Sindhurakshak exceeded it's original cost and what happened to Sindhurakshak we all know! It was the very same "mid-life medium refit-cum-upgrade" which is being talked about - In my view it's a safe bet specially it terms of expenditure to go for this refit in Indian Shipyards - we need to keep faith in our indigenous capabilities!

At $156m, refit expenses on INS Sindhurakshak exceeded original cost - The Times of India

 

[trident2010]

Wow .. that was quick.

 

[ranjeet]

Bhai, India me thoda 19-20 chalta hai!!

yeh hi ho corruption hai ji !!!

 

[Chanakya's_Chant]

For detailed info -

Govt clears defence deals worth Rs 17,000 crore



Also opens doors for US choppers (the AH-64E Apache above, and the CH-47 Chinook) worth Rs 15,000 crore

By Ajai Shukla
Business Standard, 29th Aug 14

The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government has made its first big decisions on equipping the forces, clearing acquisitions and renewals worth Rs 17,000 crore on Friday.

The apex Defence Acquisition Council (DAC), which met at New Delhi to clear the purchases, emphatically favoured manufacturing in India, even when clearing the procurement of foreign equipment. A long-running tender for buying 197 light utility helicopters (LuH) from the global market has been scrapped, and will be re-issued in the “Buy & Make (Indian)” category. This requires Indian companies to build the LuH in India, in collaboration, if necessary, with foreign partners.

“In accordance with the government’s policy, this will create manufacturing jobs, benefiting Indian industry to the tune of Rs 40,000 crore”, said a senior MoD official who briefed Business Standard on the outcome of the DAC meeting.

Immediately benefiting from this decision will be public sector aerospace behemoth, Hindustan Aeronautics Ltd (HAL), which has already worked for four years on developing an indigenous LuH. In 2010, the ministry of defence (MoD) had split the military’s requirement of 384 LuHs into two --- with 197 being procured over-the-counter (now cancelled); and HAL assured an order for 187 helicopters, provided this was developed by 2017.

“We appreciate this decision by the government. It is an important step towards indigenising aerospace capabilities,” says RK Tyagi, the HAL chief.

HAL’s progress on the LuH has been slowed by difficulties in selecting an engine for the helicopter, Defence Minister Arun Jaitley told the Rajya Sabha on Aug 12.

The emphasis on indigenisation is evident also in the decision to overhaul and refit six of the navy’s 13 submarines. The so-called Medium Refit and Life Certificate (MRLC) programme is a two-year process that involves stripping down the submarine, repairing its hull extensively, and replacing worn parts.

The Rs 4,800 crore sanction clears the overhaul of four Russian-origin, Kilo-class, and two German-origin HDW submarines. Of the Kilo-class vessels, two will be refitted in Russia, and the other two in the naval dockyard in Mumbai. Mazagon Dock Ltd, Mumbai, will overhaul both HDW submarines.

Support to the indigenous Arjun main battle tank (MBT) continues, with the DAC renewing a Rs 6,600 crore clearance for 118 Arjun Mark II tanks. This will equip two army tank regiments, adding to an earlier order for 124 Arjun Mark I tanks.

The United Progressive Alliance government had already cleared 118 Arjun Mark IIs. That clearance had expired since the army has been evaluating the prototype tank for two years. Today’s renewal allows the army to order the tanks from Heavy Vehicles Factory, Avadi, when trials are completed.

Further support was extended to the Arjun tank project through the clearance of 40 self-propelled artillery guns, worth Rs 820 crore. This gun system, termed a “catapult”, consists of a 130-millimetre gun mounted on a Arjun tank chassis, allowing it to keep up with tank columns and provide them fire support in battle.

The catapult will be developed by the Central Vehicle R&D Establishment in Chennai, and then offered to the army for trials.

In a decision that will please Washington in the run-up to Prime Minister Narendra Modi’s visit next month, the DAC cleared offset proposals relating to the purchase of two Boeing helicopters --- 22 AH-64E Apache attack helicopters; and 15 Chinook heavy lift helicopters. This removes the last hurdle to signing the two contracts, together estimated to be worth Rs 15,000 crore.

Boeing has declined to comment, but company sources say this is a key step that could allow the contract to be signed by the year-end.

In a clearance critical for the navy’s operational readiness, the DAC approved the Rs 1,770 crore purchase of Integrated Anti-Submarine Warfare Suites (IADS) for 11 warships --- seven frigates being built under Project 17A, and four destroyers being built under Project 15B. As Business Standard first reported (May 16, 2014 “Warships in peril as defence ministry blocks sonar purchase”) the MoD had blocked the import of crucial sonars since the late 1990s, rendering 25 major Indian warships --- including the INS Kolkata and INS Kamorta, commissioned this month by the prime minister and defence minister respectively --- extremely vulnerable to attack by enemy submarines.

The navy will also get relief with the DAC permitting commercial bids to be opened in the Rs 1,800 crore tender for 16 naval multi-role helicopters, which fly from warships and detect enemy submarines. With one of the two vendors --- NHIndustries, part-owned by Finmeccanica --- now banned, this has the potential for the other vendor, US company, Sikorsky, to win the contract.

Also cleared was a Rs 900 crore dedicated mobile communications system for army troops deployed in Ladakh and the eastern command. Since border areas are poorly covered by commercial mobile service providers, the army intends to establish its own mobile network all along the borders.

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Broadsword: Govt clears defence deals worth Rs 17,000 crore