Rs 1600 crore deal tops the agenda of defence acquisition council meeting

A Rs 16000 crore deal for new air defence guns tops the agenda of the crucial meeting of defence acquisition council where Defence Minister Manohar Parrikar is expected to take decisions on several major ‘Make in India’ projects today for the Army and Navy.

The meeting is underway in South Block and a final approval to making successor guns for the L70/Zu 23 systems is expected to be granted under the Buy and Make (India) plan today as Defence Minister Manohar Parrikar is expected to take decisions on several major ‘Make in India’ projects today for the Army and Navy. This would mean that private players will be in contention for a mega Army order for 430 guns in the first tranche.

As reported, only two companies - Punj Llyod and Bharat Forge - had responded to an army request for information on the procurement plan. However, the Parrikar led ministry could broad base the project by inviting other private sector players too for the final bids.

The Army is also expected to get a new regiment of 'Steep Dive Capability' Brahmos missiles for use in the mountain areas of the North East.

The new regiment, expected to cost over Rs 4000 crore, will be a major boost for the Army that is struggling with an ageing artillery.

For the Navy, decisions are expected on a purchasing a new class of survey vessels that would be made in India. The vessels, four in quantity, could cost over Rs 2000 crore, sources said. Ironically, the Navy, which has a seminar this week on indigenization, has two major foreign buys pending that could be discussed.

These include a new surface to air missile system for the Delhi class of destroyers that would be bought from Russia and additional approvals for four new P8 I maritime patrol aircraft. The two projects are expected to cost the Navy close to Rs 7000 crore - all for imported systems.

(Image credits: Twitter)