Def Deal with Israel Hits a Roadblock (ATGM-Spike)

[Bang Galore]

NEW DELHI: The BJP-led NDA Government may have announced Prime Minister Narendra Modi’s plans to visit Israel, making him the country’s first ever Prime Minister to do so, but a defence procurement deal worth more than Rs 3,000 crore with that country for anti-tank guided missiles (ATGMs) for the Army has hit a roadblock.

The Army has been trying hard to equip all its 382 Infantry Battalions and 44 Mechanised Infantry units with these ATGMs, as it was hamstrung with more than 50 per cent shortage in that front.

In October, the Centre had approved the purchase of ‘Spike’, the third generation Israeli ATGMs, for the Army after extensive technical trials evaluated by the force. Following this, a Rs 3,200 crore deal was signed to procure 8,356 ATGMs from Rafael, an Israeli firm. The Spike missile was selected over the US’s Javeline missile system.

But sources in the Ministry of Defence(MoD) said seven months on, the Cost Negotiation Committee, which was formed to work out the modalities for the procurement deal, failed to make any headway.

Officials from the MoD and the Army have raised several objections to the commercial bids submitted by the Original Equipment Manufacturer (OEM) in the second week of May.

They claimed that the price quoted in the commercial bid was almost double that of the benchmark price. And moreover, the Israeli firm even asked for an additional amount on each missile to be produced in India, which would be above the cost of the transfer of technology.

“Besides, the OEM has asked for an yearly escalation of four per cent on all the supplies, including raw material to be sold to the Bharat Dynamic Limited (BDL). In fact, after the transfer of technology to the BDL, the company has refused to take responsibility for any quality issues,” said an officer, who is privy to the developments. So, perturbed with the Israeli firm’s attitude, the MoD has red-flagged its commercial bids. “We have discontinued the negotiations with the firm and asked it to reconcile and revert. It is an important project for the Army, which is in dire need of anti-tank missiles. At the same time, we cannot compromise on the terms and conditions,” the officer added.


Def Deal with Israel Hits a Roadblock -The New Indian Express

 

[VeeraBahadur]

Side effects of US defense secretary's visit. I guess we are going for joint development of US Javelin as proposed earlier.

 

[PARIKRAMA]

Perhaps a fallout from two situations of the past- One with Russia escalating prices squeezing India for more money and second being the whole MMRCA saga where the TOT transfer was quoted with price escalations plus high cost of local production plus refusal on quality assurances thereby indirectly shirking responsibility of local TOTised manufacturer.

These issues seems to have made every OEM "smart" to escape the TOT transfer to India and more of Off the Shelf purchase mode.

We need to correct from our past experiences and firm up things that either stick to original terms or upgraded terms beneficial to India or else scrap the process/tender and blacklist OEMs who arm twist us. Its fine if we dont get the required goods.. its much better then making a situation example for more future arm twisting. A scrapping and blacklisting makes sure the message is loud and clear that India wont dance as per ur terms or ur whims and fancies

 

[anant_s]

Could be a case of Hard bargaining, we will see progress.
In any case defence deals with Israel and like an iceberg, we only see small part of it.

 

[Prajapati]

Most Indians are unaware of the dangers of making purchases with Isreal. They just go by sentimental hogwash.

This is only the top of the iceberg. I have personal experience with dealing with Israeli defence companies and I can say with certainty that they are neither trustworthy nor ethical at any level.

Their intelligence apparatus in India is extensive and reach right into MoD. They know of facts before ANY Indian defence company get to hear of it.

I can only say that the reputations Jews have is for a very good reason.

 

[Optimos Prime IA]

Perhaps another scam averted . This deal is insanely costly than actual cost . Totally unacceptable when we need tons of them better negotiations needed and fast action taken for sake of our security

 

[Prajapati]

Perhaps another scam averted . This deal is insanely costly than actual cost . Totally unacceptable when we need tons of them better negotiations needed and fast action taken for sake of our security

The right way to deal with them is the same way you deal with the Chinese. You need to have the upper hand.

Which is why visiting them and grating them full recognition might not be such a great Idea. It might seem petty, but we do not have much to offer anyway except our hard earned money. Let us see how this plays out.

 

[sudhir007]

Better to focus on NAG no need to pay anything produce how many u want

 

[The_Sidewinder]

Better to focus on NAG no need to pay anything produce how many u want

Thats adjectly what we need to do. Put these imports aside, focus on use of local products.

 

[Echo_419]

Better to focus on NAG no need to pay anything produce how many u want

If they can deliver on time why not

 

[VeeraBahadur]

Better to focus on NAG no need to pay anything produce how many u want

I think there is large difference in weight of both weapon systems. While Spike can be shoulder fired easily, Nag can't be that easily owing to it's weight.

 

[axisofevil]

Most Indians are unaware of the dangers of making purchases with Isreal. They just go by sentimental hogwash.

This is only the top of the iceberg. I have personal experience with dealing with Israeli defence companies and I can say with certainty that they are neither trustworthy nor ethical at any level.

Their intelligence apparatus in India is extensive and reach right into MoD. They know of facts before ANY Indian defence company get to hear of it.

I can only say that the reputations Jews have is for a very good reason.

Thats India's dault we failed to strengthen our borders from intel ops properly. We never heeded calls, ,ignored reqiests from great visionaries, corruption by personal greed and directed by foreign elements slowed us down, etc have slowed us down considerabley. We are fools for living in fool's paradise thinking the world has changed. Te Israelis are doing only what any smart country does. That is look after its interests anywhere.