Another Blow to "Make In India" Govt nixes Rs 32,000 crore minesweepers project

[BHarwana]

NEW DELHI: In yet another major blow to the 'Make in India' plan in the defence sector, the government has cancelled the Rs 32,000 crore project to construct 12 advanced minesweepers in collaboration with South Korea at the Goa Shipyard.

Advanced minesweepers or mine counter-measure vessels (MCMVs) are around 900-tonne specialised warships that detect, track and destroy underwater mines laid by enemy forces to choke harbours and offshore installations, disrupt shipping and maritime trade.

The Navy, which began this acquisition case way back in July 2005, needs 24 MCMVs to guard the east and west coasts but is making do with only four 30-year-old minesweepers at present.

This "big operational capability gap" is all the more alarming because Chinese nuclear and conventional submarines, which can quietly lay mines, are regularly making forays into the Indian Ocean now.

Top sources say the government has directed the Goa Shipyard to start the entire process afresh for the already long-delayed MCMV project, which was strongly pushed by Goa chief minister Manohar Parrikar when he was the defence minister, after scrapping the protracted commercial negotiations with South Korean shipyard Kangnam. "Goa Shipyard has been asked to issue a new global expression of interest (EoI) for the MCMVs. The fresh RFP (request for proposal) or tender will follow thereafter.

Final negotiations with Kangnam were stuck for long because it wanted deviations from the original RFP. There were also some ToT (transfer of technology), build strategy and cost problems," said a source.

No major "Make in India" defence project has actually kicked off in the last three to four years due to lack of requisite political push and follow-through, bureaucratic bottlenecks and longwinded procedures, commercial and technical squabbles, as was reported by TOI in October last year.

At least six mega projects worth over Rs 3.5 lakh crore, ranging from future infantry combat vehicles, light utility helicopters and naval multi-role choppers to new-generation stealth submarines, fifth-generation fighter aircraft and MCMVs, remain stuck at different stages without the final contracts being inked.

The entire MCMV project will of course have to begin anew now. But Goa Shipyard chairman Rear Admiral Shekhar Mital (retd), on being contacted, said he was "grateful" for defence minister Nirmala Sitharaman's "quick decision" to break the continuing logjam in "the all-important project".




https://timesofindia.indiatimes.com...minesweepers-project/articleshow/62407669.cms

 

[MultaniGuy]

Make in India is a joke. So is Modi.

 

[shootingstar]

NEW DELHI: In yet another major blow to the 'Make in India' plan in the defence sector, the government has cancelled the Rs 32,000 crore project to construct 12 advanced minesweepers in collaboration with South Korea at the Goa Shipyard.

Advanced minesweepers or mine counter-measure vessels (MCMVs) are around 900-tonne specialised warships that detect, track and destroy underwater mines laid by enemy forces to choke harbours and offshore installations, disrupt shipping and maritime trade.

The Navy, which began this acquisition case way back in July 2005, needs 24 MCMVs to guard the east and west coasts but is making do with only four 30-year-old minesweepers at present.

This "big operational capability gap" is all the more alarming because Chinese nuclear and conventional submarines, which can quietly lay mines, are regularly making forays into the Indian Ocean now.

Top sources say the government has directed the Goa Shipyard to start the entire process afresh for the already long-delayed MCMV project, which was strongly pushed by Goa chief minister Manohar Parrikar when he was the defence minister, after scrapping the protracted commercial negotiations with South Korean shipyard Kangnam. "Goa Shipyard has been asked to issue a new global expression of interest (EoI) for the MCMVs. The fresh RFP (request for proposal) or tender will follow thereafter.

Final negotiations with Kangnam were stuck for long because it wanted deviations from the original RFP. There were also some ToT (transfer of technology), build strategy and cost problems," said a source.

No major "Make in India" defence project has actually kicked off in the last three to four years due to lack of requisite political push and follow-through, bureaucratic bottlenecks and longwinded procedures, commercial and technical squabbles, as was reported by TOI in October last year.

At least six mega projects worth over Rs 3.5 lakh crore, ranging from future infantry combat vehicles, light utility helicopters and naval multi-role choppers to new-generation stealth submarines, fifth-generation fighter aircraft and MCMVs, remain stuck at different stages without the final contracts being inked.

The entire MCMV project will of course have to begin anew now. But Goa Shipyard chairman Rear Admiral Shekhar Mital (retd), on being contacted, said he was "grateful" for defence minister Nirmala Sitharaman's "quick decision" to break the continuing logjam in "the all-important project".




https://timesofindia.indiatimes.com...minesweepers-project/articleshow/62407669.cms

The fact is there is no money to spend for more than half a decade now.

Modi's demonetization has delivered a death knell and final nail in the coffin to the economy.

Due to the lack of funds many defense projects have been and are being cancelled.

 

[BHarwana]

The fact is there is no money to spend for more than half a decade now.

Modi's demonetization has delivered a death knell and final nail in the coffin to the economy.

Due to the lack of funds many defense projects have been and are being cancelled.

I would agree with you because of Modi's decision to go with Tajes was because of lack of funds.

 

[shootingstar]

I would agree with you because of Modi's decision to go with Tajes was because of lack of funds.

The list of cancelled projects is huge

1) MMRCA with France
2) Javelin with US
3) Spike with Israel
4) S-70B with US
5) Minesweepers with South Korea
6) FGFA with Russia
7) S-400 with Russia
8) Super Sukhio with Russia
......
the list goes on and on and on

 

[BHarwana]

The list of cancelled projects is huge

1) MMRCA with France
2) Javelin with US
3) Spike with Israel
4) S-70B with US
5) Minesweepers with South Korea
6) FGFA with Russia
7) S-400 with Russia
8) Super Sukhio with Russia
......
the list goes on and on and on

This means the entire modernization plan has been canceled.

 

[MultaniGuy]

This means the entire modernization plan has been canceled.

Yup it appears that way.

 

[shootingstar]

This means the entire modernization plan has been canceled.

Yes! that is correct. The government is trying to divert and obfuscate the issue but people in the administration know the problem.

For many years now, the funds would be announced in budget but would not be spent and returned/surrendered at the end of the year. Deals would be announced and cleared by Defense Acquisition Council (DAC) but would never be cleared by the Cabinet Committee on Security (CCS). The reality is there were no funds to start with.

That is the reason why people are seeing all these deals getting cancelled.

 

[BHarwana]

Yes! that is correct. The government is trying to divert and obfuscate the issue but people in the administration know the problem.

For many years now, the funds would be announced in budget but would not be spent and returned/surrendered at the end of the year. Deals would be announced and cleared by Defense Acquisition Council (DAC) but would never be cleared Cabinet Committee on Security (CCS). The reality is there were no funds to start with.

That is the reason why people are seeing all these deals getting cancelled.

So India should cut down it's armed forces if it is not able to manage them. Because continuing on the current path it will end up with even down grading it's forces.

 

[first77]

I would agree with you because of Modi's decision to go with Tajes was because of lack of funds.

Those F-16s, F18s hornets look better than Tejas LCA. Military matters is not child's play and arrogance. Wrong decision will be very costly during wars.

 

[shootingstar]

So India should cut down it's armed forces if it is not able to manage them. Because continuing on the current path it will end up with even down grading it's forces.

They cannot. Modi promised to create millions of jobs but created none.

Armed forces are one of the biggest provider of employment in India.

70% of the $ 53.5 billion defense budget of India goes to Opex(Salaries, Pensions etc). Most of the remaining 30% of CAPEX is consumed for the payments due for the deals that have already been signed.

Modi delayed the signing of the RAFALE deal with France by more than 1 year as India did not have money to make the down payment required to complete the deal. That is the cold hard truth.

Those F-16s, F18s hornets look better than Tejas LCA. Military matters is not child's play and arrogance. Wrong decision will be very costly during wars.

One either needs money to procure high tech equipment (like Saudi Arabia & UAE) or strong technology base to build them in-house (like China). Unfortunately, India has neither of them. So we have no option but to stick with Tejas.

 

[first77]

One either needs money to procure high tech equipment (like Saudi Arabia & UAE) or strong technology base to build them in-house (like China). Unfortunately, India has neither of them. So we have no option but to stick with Tejas.

Mukesh Ambani can donate $20 billion to Indian Air Force. You can buy 1000 F-16s with $20,000,000,000

 

[shootingstar]

Mukesh Ambani can donate $20 billion to Indian Air Force. You can buy 1000 F-16s with $20,000,000,000

Are you kidding?

Government of India is bringing in a new law where government can take money from peoples bank accounts (i.e you put your money in the bank and you lose it forever) to fund the NPAs - bad loans given by government banks to these "crony" capitalists.

No wonder people are scared to put their money in the banks and are flocking to invest in bitcoins instead.

 

[first77]

Are you kidding?

Few Indians have the MONEY

 

[shootingstar]

Few Indians have the MONEY

True.