StratPost goes through the revisions in the Defense Procurement Procedure announced by the defense ministry and tells you exactly what’s changed from DPP 2013.
The delayed approval for the acquisition of the M-777 ULH means that India will have to bear a much higher price because of the weaker rupee.
The tender to manufacture the C-295 was the first aircraft procurement plan especially intended by the IAF and the defense ministry to be solely partnered in India by private industry.
Dassault can wait to have their way in the MMRCA negotiations knowing the aversion of the IAF and defense ministry to a re-tender, unless the defense ministry walks away from the table itself, first.
After confusion over who would decide the commercial aspects of the order, the case is set to move to the Defense Acquisitions Council (DAC), headed by the defense minister, for Acceptance of Necessity (AoN).
The 37 percent escalation by a margin of roughly INR 1,200 crore for the US government offer to India for 145 M-777 light weight howitzers comes into effect on Tuesday, along with the imminent closure of the assembly line for the artillery.
India has ordered a total of 123 aircraft, with the navy order for 17 aircraft being part of the contract for 57 aircraft concluded in 2010. 40 of the aircraft will be delivered to the IAF.
Carter is looking at the Indian defense ministry to make it easier for US companies to do business with it and wants resolution of issues related to offsets, limitation of liability and delays in decision-making.
The failure to consider the order by the DAC has wider implications as it is unlikely that any decision can be taken on this order by October 15, after which the value of the deal will see a 37 percent hike.
The Acceptance Of Necessity (AON) was cleared by the Defense Acquisitions Council (DAC) in February, 2012 and at the time, the order was estimated to be worth around USD 1 billion.
Kavi kehna kya chahta hai? Giving the iteration a thumbs-down, defense industry executives questioned the rationale behind some of the amendments and also expressed pessimism, saying in some cased it would ‘make things worse’.
These changes are skewed to favor and encourage defense industry in India, some of which appear to have been influenced by reactions to corruption scandals. Do have a look at the list of changes, copied and pasted, verbatim, from the defense ministry press release.
Naval Materials Research Laboratory (NMRL) is developing an AIP Plug for the fifth and sixth Scorpene submarines, which would be installed on them only if the development is completed within the schedule of the construction of the two submarines.
The Defense Acquisitions Council of the Ministry of Defense has accepted the necessity for procuring nine Medium Range Maritime Reconnaissance (MRMR) aircraft for the Indian Navy. The Acceptance of Necessity (AON) this week came after the evaluation of data provided by vendors in response to the Request for Information (RFI) issued almost exactly a year […]
A cost escalation of 50 percent (INR 63,000 crore, in this case) or more, requires approval again from the Ministry of Finance, before the Defense Acquisitions Council (DAC) can proceed with it. With the cost of the tender for India safely ranging from INR 83,000 crore to 1,25,000 crore, the revision of the estimated expenditure on the MMRCA would require the approval of the finance ministry.
The commercial bids of the two surviving contenders in the Indian Air Force (IAF) tender for 126 Medium Multi Role Combat Aircraft (MMRCA) are ready to be opened, according to the defense ministry.
The acquisition process for 126 Medium Multi Role Combat Aircraft by the Indian Air Force is facing delays due to uncertainties about offset policy and with vendors facing the prospect of having to redo their homework.
Six major western industry associations have written to the Indian Ministry of Defense asking for measures to ease their prospects for commerce in defense equipment, including elimination of the ceiling on Foreign Direct Investment as well as capping financial penalties.
The Indian Army has issued a Request For Information (RFI) for towed artillery guns, effectively canceling the previous process for procurement of these weapons systems, in which BAE Systems was fielding the FH77 B05 against Singapore Technologies (ST) Kinetics’ iFH 2000.