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India is likely to acquire 44,618 close-quarter battle (CQB) carbines and 33.6 million rounds of ammunition, in a transaction that may be valued at close to $1 billion (Rs.4,440 crore).
The submission of commercial bids for the contract closes on 16 May, while the last date for submitting offset proposals is 16 August, according to a defence industry official with direct knowledge of the matter.
India imposes counter-trade obligations on original equipment manufacturers that are awarded defence contracts worth more than Rs.300 crore by way of production of components in India.
To meet this obligation, foreign vendors partner with Indian firms. At present, the offset obligation varies between 30-50% of the value of the contract.
While the original tender notification, or request for information, first issued in 2008, was for 43,318 carbines, a revised tender issued in 2010 was for 44,618 units. A request for technical and commercial proposal (RFP) for the deal was subsequently issued on 24 December.
Mint has also reviewed a copy of the RFP, which was sent to global vendors including FN Herstal, Beretta, Heckler and Koch, Israel Weapon Industries Ltd (IWI), Colt Defense Llc, Bushmaster Firearms International Llc and Singapore Technologies Kinetics Ltd, among others.
In 2010, the Central Bureau of Investigation had asked the ministry of defence to blacklist Singapore Technologies, over alleged irregularities in relation to purchases by the Ordnance Factory Board.
According to the RFP, along with the carbines, the defence ministry is also shopping for ammunition, magazines, bayonets, slings, reflex sights and visible and invisible laser spot designators.
The industry official cited above also said that the carbines are likely to be manufactured under licence by the new ordnance unit at Amethi in Uttar Pradesh.
The army is looking at a 5.56 mm calibre system with a rate of fire of 660 rounds a minute, according to the RFP.
This order is in addition to the government’s plan to indigenously manufacture another 116,764 carbines and 2,18,320 advanced carbines for an estimated $500 million. The tenders for these were floated in 2008.
As many as 10,730 light-weight assault rifles for para-special forces may also be purchased.
On 16 March, Mint had reported that the government and industry had been discussing ways of opening up the small arms market to the private industry.
Weapons such as pistols, assault rifles, carbines and machine guns that are carried by infantry soldiers are called small arms.
Currently, only the government-owned Ordnance Factory Board’s units in Ichhapore and Kanpur manufacture small arms for local use and exports.
The “government of India has in the past demonstrated some openness to private sector participation in arms manufacture. Since 2001, four firms in the private sector, namely Max Aerospace and Aviation Ltd, Bharat Forge Ltd, Larsen and Toubro Ltd, and Punj Lloyd Ltd were issued licences to manufacture arms and ammunition. Most of these licences have since lapsed as of date”, the report cited above said.
“A CQB carbine typically should be low trajectory, rapid fire and a short range weapon with a low recoil. Currently, India’s attempts at indigenously developing such a weapon have failed,” said retired brigadier and defence analyst Rumel Dahiya of the Institute for Defence Studies and Analyses. “It therefore becomes imperative to procure these weapons from foreign vendors.”
Rajiv Chib, defence analyst at PriceWaterhouseCoopers India, pointed out that a previous tender was cancelled, re-issued and then retracted again.
“There is no reason to believe this will not happen again,” he said.
India likely to acquire arms, ammunition worth $1 bn - Home - livemint.com
The submission of commercial bids for the contract closes on 16 May, while the last date for submitting offset proposals is 16 August, according to a defence industry official with direct knowledge of the matter.
India imposes counter-trade obligations on original equipment manufacturers that are awarded defence contracts worth more than Rs.300 crore by way of production of components in India.
To meet this obligation, foreign vendors partner with Indian firms. At present, the offset obligation varies between 30-50% of the value of the contract.
While the original tender notification, or request for information, first issued in 2008, was for 43,318 carbines, a revised tender issued in 2010 was for 44,618 units. A request for technical and commercial proposal (RFP) for the deal was subsequently issued on 24 December.
Mint has also reviewed a copy of the RFP, which was sent to global vendors including FN Herstal, Beretta, Heckler and Koch, Israel Weapon Industries Ltd (IWI), Colt Defense Llc, Bushmaster Firearms International Llc and Singapore Technologies Kinetics Ltd, among others.
In 2010, the Central Bureau of Investigation had asked the ministry of defence to blacklist Singapore Technologies, over alleged irregularities in relation to purchases by the Ordnance Factory Board.
According to the RFP, along with the carbines, the defence ministry is also shopping for ammunition, magazines, bayonets, slings, reflex sights and visible and invisible laser spot designators.
The industry official cited above also said that the carbines are likely to be manufactured under licence by the new ordnance unit at Amethi in Uttar Pradesh.
The army is looking at a 5.56 mm calibre system with a rate of fire of 660 rounds a minute, according to the RFP.
This order is in addition to the government’s plan to indigenously manufacture another 116,764 carbines and 2,18,320 advanced carbines for an estimated $500 million. The tenders for these were floated in 2008.
As many as 10,730 light-weight assault rifles for para-special forces may also be purchased.
On 16 March, Mint had reported that the government and industry had been discussing ways of opening up the small arms market to the private industry.
Weapons such as pistols, assault rifles, carbines and machine guns that are carried by infantry soldiers are called small arms.
Currently, only the government-owned Ordnance Factory Board’s units in Ichhapore and Kanpur manufacture small arms for local use and exports.
The “government of India has in the past demonstrated some openness to private sector participation in arms manufacture. Since 2001, four firms in the private sector, namely Max Aerospace and Aviation Ltd, Bharat Forge Ltd, Larsen and Toubro Ltd, and Punj Lloyd Ltd were issued licences to manufacture arms and ammunition. Most of these licences have since lapsed as of date”, the report cited above said.
“A CQB carbine typically should be low trajectory, rapid fire and a short range weapon with a low recoil. Currently, India’s attempts at indigenously developing such a weapon have failed,” said retired brigadier and defence analyst Rumel Dahiya of the Institute for Defence Studies and Analyses. “It therefore becomes imperative to procure these weapons from foreign vendors.”
Rajiv Chib, defence analyst at PriceWaterhouseCoopers India, pointed out that a previous tender was cancelled, re-issued and then retracted again.
“There is no reason to believe this will not happen again,” he said.
India likely to acquire arms, ammunition worth $1 bn - Home - livemint.com
