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Exorbitant prices to severe shortcomings in indigenization may not be limited to just Tatra vehicles supplied to the Army by Bharat Earth Movers Limited (BEML), according to Army sources and internal assessments.
The supply of Armoured Recovery Vehicle (ARV) WZT-3 to the Indian Army by BEMLsuffers from similar issues, including steep prices for spare parts and lack of efforts to indigenize the vehicle. ARV WZT-3, supplied by Bumar of Poland, is based on a T-72 tank chassis and was introduced in service more than a decade ago.
A detailed assessment shows that BEML has been charging the Army exorbitant rates for spare parts for the vehicle. The BEML offer is sometimes 20 to 30 times more than the estimated rates based on pervious receipts. For example, non-return valve, for which the estimated rate is Rs 1,608.81, was supplied by BEML at Rs 39,550 in 2008-09. The small bolts for track links, of which the estimated rate was Rs 424.70, was sold by BEML at Rs 15,480 in the same year. A mere nut in the set, estimated to cost Rs 192.08, was sold at Rs 5,505.
BEML also failed to indigenize the vehicle significantly, leading to almost complete dependence on the Polish supplier.
Army sources said the exorbitant rates for spare parts was going to cause serious problems because the overhaul of these ARVs is becoming due. As a result, the need for spare parts will shoot up. Source said BEML will not be able to meet the increased requirements because BEML has not set up any manufacturing facility so far, and most of the items demanded by us are imported by the defence public sector unit, a source said.
BEML over-charged for spares too: Army sources - The Times of India
The supply of Armoured Recovery Vehicle (ARV) WZT-3 to the Indian Army by BEMLsuffers from similar issues, including steep prices for spare parts and lack of efforts to indigenize the vehicle. ARV WZT-3, supplied by Bumar of Poland, is based on a T-72 tank chassis and was introduced in service more than a decade ago.
A detailed assessment shows that BEML has been charging the Army exorbitant rates for spare parts for the vehicle. The BEML offer is sometimes 20 to 30 times more than the estimated rates based on pervious receipts. For example, non-return valve, for which the estimated rate is Rs 1,608.81, was supplied by BEML at Rs 39,550 in 2008-09. The small bolts for track links, of which the estimated rate was Rs 424.70, was sold by BEML at Rs 15,480 in the same year. A mere nut in the set, estimated to cost Rs 192.08, was sold at Rs 5,505.
BEML also failed to indigenize the vehicle significantly, leading to almost complete dependence on the Polish supplier.
Army sources said the exorbitant rates for spare parts was going to cause serious problems because the overhaul of these ARVs is becoming due. As a result, the need for spare parts will shoot up. Source said BEML will not be able to meet the increased requirements because BEML has not set up any manufacturing facility so far, and most of the items demanded by us are imported by the defence public sector unit, a source said.
BEML over-charged for spares too: Army sources - The Times of India
