Wednesday, 13 May 2015

India MoD Clears 3 Big Deals With Russia, Europe & the US

Big raft of decisions just pushed through the chute at the Indian MoD, leading with an expected decision to clear a single-vendor bid by the Tata-Airbus consortium to supply 16 C295 transports in flyaway condition and 40 off a new Indian production line. A historic step in many ways. Once done and dusted, as you've read here on, it'll be the first time aircraft are built for the military by a private firm. Or any firm, really, other than HAL.

Lots of other deals cleared today by the Defence Acquisition Council (DAC), the apex MoD body before final political signatures. A surprise win today was for Russia's Kamov: a surprise only that it came so soon. The company will set up a local line to build 200 Ka-226T Sergei light helicopters for the Indian Air Force and Army.

Photo: BAE Systems

Most significantly for the Army, the government has cleared the manufacture of 145 BAE Systems M777 ultra-light howitzers in India through a private Indian production agency, likely to be among L&T, Tata or Mahindra Defence. Boom. A deal back from the dead.

Other deals cleared this evening include a go ahead for procurement of 38 additional Swiss-made Pilatus PC-7 Mk.2 basic trainer aircraft, the procurement of communication terminals for Advanced Landing Grounds (ALGs) of the IAF. Interestingly, the IAF has also been given approvals to obtain two 7-year-old wide body airliners from state-owned Air India for its VVIP communication squadron. 

For the Indian Navy, the MoD has cleared the raising of six  regiments of the BrahMos missile for the three Delhi-class destroyers and first three Talwar-class frigates. Preparatory studies for the construction of India’s second indigenously made aircraft carrier given the go ahead.

All in all
1. 56 C295
2. 145 M777
3. 200 Ka226T
4. 2 Boeing 777-300 ER
5. 9 brahmos systems for IN
6. Initial construction planning for 65K Tonne INS Vishal

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