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Army trucks: Ashok Leyland-L&T consortium emerges lowest bidder for Rs 100-cr contract
NEW DELHI: Aconsortium of Indian firms has emerged the lowest bidder in the first in a series of Indian Army tenders to procure specialised vehicles, in what could be the beginning of the end of a decades-old monopoly of the imported Tatra trucks as the army's all-terrain vehicles and the mobility platform for weapons systems such as missiles and rocket launchers.
According to people familiar with the development, a consortium of Ashok LeylandBSE 0.91 % and L&T emerged the lowest bidder two weeks ago when commercial bids for procurement of 100 multibarrel rocket launchers (meant to upgrade the BM21 rocket launchers) were opened. The value of the contract is about Rs 100 crore, according to industry sources.
The contract involves refurbishing the existing rocket launchers and mounting them on new vehicles. The weapons-related work will be done by L&T and the vehicle is a new Ashok Leyland platform. The Leyland-L&T combine left behind a team of Tata Group companies (Tata Motors and Tata PowerBSE 0.37 % SED) and a team of Tatra, Bharat Earth Movers and Bharat ElectronicsBSE 0.27 %. The last two are public-sector defence companies.
Tatra, a Czech vehicle manufacturer, has supplied powerful all-terrain vehicles for India's armed forces for decades, to the exclusion of Indian manufacturers.
Its long monopoly is now the subject of an ongoing investigation by the Central Bureau of Investigation after former army chief General VK Singh alleged he was offered a bribe to clear the procurement of Tatra trucks. These vehicles are assembled by public sector BEML. CBI is also investigating the role of former BEMLBSE 1.62 % MD VRS Natarajan in the Tatra case. Tatra is majority-owned by London-based Indian businessman Ravi Rishi.
"We are finally biting the bullet on indigenisation. We have the capacity and capability to develop vehicles for weapons platforms. This is absolutely a welcome step and it will help cut down our dependence on imported vehicles such as Tatra and Urals," said Brigadier (retd) Arun Sahgal, director at the Forum for Strategic Initiative, a Delhibased think tank. The contract for rocket launchers is among four tenders for specialised trucks the army had called for in 2009. Field trials are over and commercial bids will be opened in the coming months.
The others are for 1,239 units of 6-wheel-drive high-mobility vehicles, 255 units of 8-wheel-drive highmobility vehicles and 100 units of so-called field artillery tractors.
Ashok Leyland, Tata MotorsBSE -0.97 % and Tatra are competing in all categories. Ashok Leyland, which has supplied more than 65,000 four-wheel-drive Stallion trucks for the Indian Army, says it has developed a worldclass platform for the army's specialised needs. "Our trucks have more than 90% local content. The Neptune is an 8-litre, 6-cylinder, thirdgeneration common rail diesel engine that can deliver 360-400 bhp.
It is compliant with most European norms," said Ashok Leyland Vice-Chairman V Sumantran. His company has developed 6x6 and 8x8 variants of a truck called the Super Stallion that is competing in the army tenders. A spokesperson for Tata Motors declined comment. "Tatra is most suited for Indian conditions. Our competitors just meet the requirement," Tatra CEO Ronald Adams said in an emailed statement.
Army trucks: Ashok Leyland-L&T consortium emerges lowest bidder for Rs 100-cr contract - The Economic Times
NEW DELHI: Aconsortium of Indian firms has emerged the lowest bidder in the first in a series of Indian Army tenders to procure specialised vehicles, in what could be the beginning of the end of a decades-old monopoly of the imported Tatra trucks as the army's all-terrain vehicles and the mobility platform for weapons systems such as missiles and rocket launchers.
According to people familiar with the development, a consortium of Ashok LeylandBSE 0.91 % and L&T emerged the lowest bidder two weeks ago when commercial bids for procurement of 100 multibarrel rocket launchers (meant to upgrade the BM21 rocket launchers) were opened. The value of the contract is about Rs 100 crore, according to industry sources.
The contract involves refurbishing the existing rocket launchers and mounting them on new vehicles. The weapons-related work will be done by L&T and the vehicle is a new Ashok Leyland platform. The Leyland-L&T combine left behind a team of Tata Group companies (Tata Motors and Tata PowerBSE 0.37 % SED) and a team of Tatra, Bharat Earth Movers and Bharat ElectronicsBSE 0.27 %. The last two are public-sector defence companies.
Tatra, a Czech vehicle manufacturer, has supplied powerful all-terrain vehicles for India's armed forces for decades, to the exclusion of Indian manufacturers.
Its long monopoly is now the subject of an ongoing investigation by the Central Bureau of Investigation after former army chief General VK Singh alleged he was offered a bribe to clear the procurement of Tatra trucks. These vehicles are assembled by public sector BEML. CBI is also investigating the role of former BEMLBSE 1.62 % MD VRS Natarajan in the Tatra case. Tatra is majority-owned by London-based Indian businessman Ravi Rishi.
"We are finally biting the bullet on indigenisation. We have the capacity and capability to develop vehicles for weapons platforms. This is absolutely a welcome step and it will help cut down our dependence on imported vehicles such as Tatra and Urals," said Brigadier (retd) Arun Sahgal, director at the Forum for Strategic Initiative, a Delhibased think tank. The contract for rocket launchers is among four tenders for specialised trucks the army had called for in 2009. Field trials are over and commercial bids will be opened in the coming months.
The others are for 1,239 units of 6-wheel-drive high-mobility vehicles, 255 units of 8-wheel-drive highmobility vehicles and 100 units of so-called field artillery tractors.
Ashok Leyland, Tata MotorsBSE -0.97 % and Tatra are competing in all categories. Ashok Leyland, which has supplied more than 65,000 four-wheel-drive Stallion trucks for the Indian Army, says it has developed a worldclass platform for the army's specialised needs. "Our trucks have more than 90% local content. The Neptune is an 8-litre, 6-cylinder, thirdgeneration common rail diesel engine that can deliver 360-400 bhp.
It is compliant with most European norms," said Ashok Leyland Vice-Chairman V Sumantran. His company has developed 6x6 and 8x8 variants of a truck called the Super Stallion that is competing in the army tenders. A spokesperson for Tata Motors declined comment. "Tatra is most suited for Indian conditions. Our competitors just meet the requirement," Tatra CEO Ronald Adams said in an emailed statement.
Army trucks: Ashok Leyland-L&T consortium emerges lowest bidder for Rs 100-cr contract - The Economic Times
