Tag Archives: Defence Acquisition Council

Make in India and a Dilly-Dallying Defence Ministry

Published: 17th January 2018 The New Indian Express
The flip-flop over the purchase of Spike anti-tank guided missiles (ATGMs) from Israel is symptomatic of a larger battle between Make in India proponents and those who argue that waiting for the wheel to be reinvented makes no strategic sense. Particularly when the reinvention involves the Defence Research and Development Organisation (DRDO), renowned for its inordinate delays. In October 2014, months after the Modi government came to power, India’s Defence Acquisition Council cleared the purchase of at least 8,000 Spike missiles and more than 300 launchers. Just before Modi’s historic visit to Israel, the deal was finally firmed up, much to the disappointment of the US, which was lobbying to sell Raytheon-Lockheed Martin’s Javelin ATGM—some argue it’s a better weapon. The Israeli ATGMs were to be co-produced in collaboration with Bharat Forge’s Kalyani Strategic Systems in Hyderabad.

Then, barely days after Modi’s return from Israel, rumours surfaced about the deal being scrapped in favour of indigenous production of the MP-ATGM, a derivative of the Nag missile. Days before the Israeli Prime Minister Benjamin Netanyahu’s visit to India, Rafael admitted India had indeed cancelled talks to close the deal. This led to howls of protest from the Indian Army, with Army Chief General Bipin Rawat pointing out that the DRDO missiles would not be ready till 2022, which would impact India’s operational capabilities at a time when both its western and northern borders were heating up.

Now it appears that New Delhi might execute part of the terminated tender by directly importing 5,500-odd missiles and 275 launchers via an inter-governmental agreement, instead of a commercial deal with Rafael. India needs to get over its dependence on imported weapons, which constitute almost 70 per cent of its inventory at the moment. But last-minute scrapping and reworking of deals not only undermine our credibility in the defence market, they also highlight the lack of a think-through by our defence ministry.

Gen VK Singh stalled BEML’s 1,000 truck order in 2010

TNN | Apr 14, 2012, 12.29AM IST

NEW DELHI: Bharat Earth Movers Limited (BEML), which is in the eye of the storm kicked up by the Army chief’s claim about a Rs 14-crore bribe offer, was preparing to supply 1,000 Tatra trucks in 2010 when General V K Singh stalled the entire acquisition.

Sources said BEML, the Bangalore-based defence PSU, had on the assurance of the then Master General of Ordnance (MGO) of the Army in 2010, had taken “advance action” for supply of 1,000 Tatra vehicles. All these vehicles were to of 6×6 and 8×8 variants.

It is not clear if Gen Singh refused clearance after September 22, 2010, the day he was allegedly offered the bribe by Lt Gen Tejinder Singh on behalf of Tatra.

Tatra truck purchases are usually sent by MGO directly to the ministry of defence (MoD), BEML later pointed out to the MoD. But in 2010, the Army chief had asked for the Tatra file and put the acquisition on hold. Instead, the Army moved a proposal to the Defence Acquisition Council, headed by defence minister A K Antony, for a competitive global tender for the purchase of 6×6 and 8×8 trucks.

The last order for Tatra trucks were placed with BEML in March, 2010, a few days before Gen VK Singh took over as the Army chief on March 31. The last order was for 788 vehicles out a total projected requirement of 3,296.

While the last order was placed by MGO Lt Gen Vinay Sharma, his successor told the BEML that there was no requirement for new vehicles to be acquired from revenue budget.

The Army is presently processing the global competitive tender, which could take several months to complete.

The forces’ stand on Tatra acquisition would be a key component of the ongoing CBI probe into Gen Singh’s allegation that he was offered Rs 14 crore bribe for clearing the purchase of Tatra trucks.

While many of the documents related to Tatra deal – from the Army HQ, MoD and BEML – have been handed over to the CBI, indications are that the agency is yet to get any ‘breakthrough’ documents to show corruption trail in the Tatra deal.

CBI officials would be meeting with Gen Singh, who was away in Punjab on Friday, for collecting further clarification to his written complaint about the bribe offer.