Edit: DAC 13thMay 2015 : M777, C295, Brahmos deals cleared.. 200 Ka226T ordered, Plan for INS Vishal

[PARIKRAMA]

The government is likely to pave the way for six new BrahMos supersonic cruise missile systems for the Indian Navy worth about Rs 2,700 crore besides taking a call on Army's proposal for acquiring BAE's M777 Ultra-Light Howitzers, in the Defence Acquisition Council meeting tomorrow. Defence sources said the issue of the USD 2.5 billion Avro replacement program is also likely to be discussed.

Besides the Avro, the big ticket proposal for tomorrow is six new BrahMos systems with 89 supersonic missiles.

The cost of the project will be around Rs 2,700 crore, sources told PTI.

Another important proposal to be discussed is BAE Systems' offer to build a howitzer factory in India to close a deal valued at nearly USD 800 million. It was first considered by the UPA regime but underwent a quiet burial due to differences over price and offset commitments.

However, keen to sell its guns to India, the American company has offered to be part of the 'Make in India' initiative, sources said, adding that the firm is ready to set up an assembly line here with a local partner to make the guns domestically.

The sources said it would be a government to government deal between US and India. The Army, which is in desperate need of new artillery guns, is keen that Foreign Military Sales (FMS) option be revived for BAE's guns and that a fresh Letter of Offer and Acceptance be floated to US.

Another key proposal that would come under discussion is the lone bid of Airbus-TATA consortium to replace IAF's ageing fleet of 56 Avro aircraft with C-295 transport carriers. A final decision was anticipated in November last year but Parrikar had then sought more information about the necessity of the aircraft and the bidding process.

Under the current defence procurement policy, single-vendor situation is not entertained unless cleared by the DAC.

6 new BrahMos missile systems for Navy likely | Business Standard News

Livefist @livefist · 16m16 minutes ago
BREAKING: Indian MoD clears deals for indigenous license-build of M777 guns, the Tata-Airbus Avro-replacement bid & 200 Ka-226T light helos.

Post 11 onwards

 

[anant_s]

Another key proposal that would come under discussion is the lone bid of Airbus-TATA consortium to replace IAF's ageing fleet of 56 Avro aircraft with C-295 transport carriers. A final decision was anticipated in November last year but Parrikar had then sought more information about the necessity of the aircraft and the bidding process.

This is important. Given the single bidder situation, if DM is satisfied with the whole tender process and is convinced that the tender didnot favor any specific product, path for Tata Airbus consortium will open paving way for C 295.
It is also vital as the decision may have implication for future single bid scenarios where re-tendering has meant long delays in procurement.

 

[Nityam]

Rs 2,700 Crores for 89 Brahmos system.

Makes EACH Brahmos missile worth 4.8 Million $ .......... Brahmos is screwing GoI.

USD 2.5 billion for 56 C-295 means each Aircraft will cost around 45 Million $.

 

[Manindra]

Rs 2,700 Crores for 89 Brahmos system.

Makes EACH Brahmos missile worth 4.8 Million $ .......... Brahmos is screwing GoI.

USD 2.5 billion for 56 C-295 means each Aircraft will cost around 45 Million $.

You didn't add cost of launcher & other Sub-Systems.

 

[Nityam]

You didn't add cost of launcher & other Sub-Systems.

That is what "System" means.

 

[Manindra]

That is what "System" means.

You are counting per missile cost which is low if we exclude sub system cost.

 

[Nityam]

You are counting per missile cost which is low if we exclude sub system cost.

Its still pretty exorbitant. Especially for something "made in India". Makes you wonder.

 

[Abingdonboy]

Rs 2,700 Crores for 89 Brahmos system.

Makes EACH Brahmos missile worth 4.8 Million $ .......... Brahmos is screwing GoI.

USD 2.5 billion for 56 C-295 means each Aircraft will cost around 45 Million $.

Its still pretty exorbitant. Especially for something "made in India". Makes you wonder.

A simple procurement cost/number of missiles calculation won't do because of the vast amount of sub-sytems and equipment that goes along with every single order. Also this could very well be an order for land launched systems which would require a whole plethora of support systems/vehicles.

 

[Nityam]

A simple procurement cost/number of missiles calculation won't do because of the vast amount of sub-sytems and equipment that goes along with every single order. Also this could very well be an order for land launched systems which would require a whole plethora of support systems/vehicles.

Its says 89 missiles for the Navy so there is no confusion regarding that. Which means fire control system already exist, only the missiles and its launchers need to be placed.

 

[thinking_indian]

GOI must move forward with the Avro replacement tender, Retire Avro and AN 32 over the next ten years and start inducting C295

 

[PARIKRAMA]

Livefist @livefist · 11m11 minutes ago
BREAKING: Indian MoD clears deals for indigenous license-build of M777 guns, the Tata-Airbus Avro-replacement bid & 200 Ka-226T light helos.

@Abingdonboy @sancho @anant_s @Chanakya's_Chant @MilSpec @SpArK

 

[magudi]

GOI must move forward with the Avro replacement tender, Retire Avro and AN 32 over the next ten years and start inducting C295

Your wish granted !!!

 

[PARIKRAMA]

The government tonight cleared the lone bid of Airbus-TATA consortium for replacing Indian Air Force's fleet of ageing Avro transport aircraft for Rs 11,930 crore besides approving Russia's offer to build Kamov Ka-226T helicopters under 'Make in India' initiative.

The Defence Acquisition Council (DAC), which met here, also cleared the proposal to convert two Boeing 777-300 ER for VVIP travel, defence sources said.

Other major proposals cleared in the meeting, chaired by Defence Minister Manohar Parrikar, included six new BrahMos supersonic cruise missile systems for the Indian Navy worth Rs 2,700 crore and acquisition of 145 pieces of M777 Ultra-Light Howitzers from the US under a government to government deal.

Govt nod to Rs 11,930 cr Airbus-TATA consortium bid to replace | Business Standard News

@sancho Now at least all the tenders where singlle bid situation occurs and which has no deviations and is completely clean , the chances of approval runs higher. This saves us from "vortex" of cancellations and re tendering.

The Avro replacement is late but i still welcome it openly. At least its now more or less a step taken in the right direction.
But we do need more on Medium Weight category lifters.. A proper plan and perhaps indigenous project.

Defence ministry clears pending stalled projects worth Rs 25,000 crore

NEW DELHI: The defence ministry on Wednesday night cleared several major long-pending stalled projects worth over Rs 25,000 crore, including the Rs 11,929 crore one for 56 medium transport aircraft by the Tata-Airbus consortium, Rs 2,900 crore for 145 American M-777 ultralight howizers and Rs 3,000 crore for around 200 Russian Kamov light utility helicopters.

The defence acqusitions council, chaired by defence minister Manohar Parrikar, also cleared the acquisition of two Boeing 777-300 (extended range) aircraft from Air India for the dedicated use by President Pranab Mukherjee and PM Narendra Modi as the Desi Air Force One, as was first reported by TOI earlier this week. The two wide-bodied aircraft will now be reconfigured for the VVIPs, which will include a an executive office and bedroom, and then fitted with advanced self-protection suites to jam and defeat hostile incoming missiles and encrypted satellite communication facilities by Boeing.

In terms of sheer money, the biggest proposal to be cleared was the Rs 11,929 crore mega project for the Indian private sector to supply 56 medium transport aircraft to the IAF despite there being only one bidder, the Tata-Airbus consortium, in the fray. As reported earlier, the dominant view in the defence establishment was that the green signal should be given to the Tata-Airbus venture since its technical and commercial bids were submitted in a competitive environment, with the other seven contenders backing out for one reason or the other.

The project, under which the first 16 aircraft are to be bought from the foreign original equipment manufacturer and the rest 40 to be manufactured by the Indian Production Agency (IPA) within eight years, is meant to encourage the Indian private sector to enter into the domestic military aerospace sector. Incidentally, it was the Modi government's first DAC in July — then headed by Arun Jaitley - which revived the Avro replacement project after it was put on hold by the UPA-II regime last year due to strong opposition from the powerful PSU lobby and ministers like Praful Patel, as reported by TOI earlier. The other big takeaway was the long-pending Rs 2,900 crore deal with the US government for 145 ultra-light howitzers, which are to be acquired for the new Army divisions being raised along the border with China.

The direct government-to-government deal had been stuck due to high costs and a non-compliant offsets proposal offered by artillery manufacturer BAE Systems. The Army, however, has been for long been demanding 155mm/39-calibre light-weight howitzers, with a strike range over 25-km range. Such howitzers can be swiftly air-lifted to "threatened high-altitude areas" along the 4,057-km Line of Actual Control (LAC) with China, which has the military infrastructure in place to swiftly mobilize troops and equipment to outnumber Indian forces by 3:1 there.

The DAC also cleared the initial construction planning process for the country's second aircraft carrier, the 65,000-tonne INS Vishal, as well as the Rs 2,700 crore acqusition of nine systems of the BrahMos supersonic cruise missile for three Talwar-class stealth frigates and three Delhi-class destroyers. Developed jointly by India and Russia, the missile flies at Mach 2.8 or almost three times the speed of sound. The Army and Navy already have the BrahMos missiles, which are also to be soon tested from a Sukhoi-30MKI fighter.

Defence ministry clears pending stalled projects worth Rs 25,000 crore - The Times of India

 

[Abingdonboy]

Livefist @livefist · 11m11 minutes ago
BREAKING: Indian MoD clears deals for indigenous license-build of M777 guns, the Tata-Airbus Avro-replacement bid & 200 Ka-226T light helos.

@Abingdonboy @sancho @anant_s @Chanakya's_Chant @MilSpec @SpArK

Where did the 200 Ka-226T come from???


Not sure if I buy that, the MoD only just put out a new RFI for 197 LUH/RSH and what exactly did they clear as part of the M777 deal? Just the guns themselves or being made in India and if so who is the local partner?

 

[sathya]

LUH ? Why did kamov enter without competition ?