Ministry of Defence Contests Media Reports on Lack of Progress on Contracts
More than 180 contracts valued over Rs 1,96,000 crore signed with Indian Defence Industry since 2014 says Ministry Press Release
Coming out strongly against some media reports that there were limited contracts that were signed in the past five years plus, a press release from the Ministry of Defence stated that it has signed more than 180 contracts valued at over Rs 1,96,000 crore with the Indian Industry since 2014 while a few are in the pipeline to be signed in near future.
Listing these the Press release stated-
A contract for manufacture of Frigates under Project P 17A was signed in February 2015 with Mazagon Dockyards Limited (MDL), Mumbai valued at Rs. 45,000 crores while 02 Frigates under Project P1135.6 are slated to be manufactured by Goa Shipyard Limited (GSL) under a contract signed in Oct 2018 valued at Rs. 14,100 Crore.
Further, contracts for manufacture of 41 Advanced Light Helicopters for Indian Air Force (IAF) and 32 ALH for Indian Navy (IN) have been signed with Hindustan Aeronautics Limited (HAL) in March 2017 and Dec 2017 with a combined value of Rs. 14,100 crore.
This is in addition to procurement of 14 Dornier 228 aircrafts from M/s HAL valued at Rs. 1100 crore through a contract signed in February 2015.
Seven Squadrons of Akash Missile System are being procured from BEL through a contract of October 2019 valued at Rs. 6,300 crore as also the Integrated Advanced Command and Control System (IACCS) Nodes valuing Rs. 7,900 crore.
OFB has been tasked to supply 464 T-90S/SK tanks worth Rs. 19,100 crore for which indent has been placed on it by the Ministry as recently as November 2019. Also 100 Nos. of 155x52mm cal Self-Propelled Guns are being procured under the ‘Make in India’ initiative of the government from Ms/ L&T valued at Rs. 4,300 crore. Also Contract for Modernization of Airfield Infrastructure (MAFI) to be executed through Indian vendors is under final stages of contracting.
Further, Services have also placed a number of contracts on the Private Sector vendors like Titagarh Wagons Ltd, Force Motors Pvt Ltd, Tata Power SED, Tech Mahindra Ltd, Tata Motor Ltd, Ashok Leyland Ltd, Bharat Forge Ltd, MKU Ltd, SMPP Delhi, Alpha Design for items like 1000 Tons Fuel Barges, Light Strike Vehicles, Portable Diver Detection Sonar (PDDS), RFID based SMART Card, 6×6 and 8×8 High Mobility Vehicle with Material Handling Crane, Dual Technology Mine Detector, Ballistic Helmet, Bullet Proof Jacket (BPJ) and Integrated Gunnery. Three of the cases viz. P-75(I) Submarines, Naval Utility Helicopters (NUH) and 114 Fighter Jets for IAF, shown as stuck in the long-winded procedures are the cases which are being progressed under SP Model [a procurement procedure, which in itself has been promulgated in May 2017 as part of DPP-2016].
However, even the cases under SP model have been processed expeditiously as evident from the fact that the responses to EOIs [Expression of Interest] have been received in respect of P-75(I) and NUH cases and are under final stages of selection while SQRs are being finalized in respect of 114 Fighter Aircrafts case. In addition, under Make-II, 44 projects have been given approval. Under Innovations for Defence Excellence (iDEX). Forty plus startups are working in new technology-related products. Make-II and iDEX reflect new level of active engagement with industry where not only manufacturing but technology development for defence is being taken up as per the MOD Press Release.