Ahead of the upcoming 2+2 talks with the US, the Defence Acquisition Council (DAC) that met on Saturday, cleared the procurement of 24 Multi Role Helicopters (MRH) for the Navy. In all, the DAC gave approvals for procurement deals worth approximately ₹46,000 crores.
In another decision, the DAC gave the formal approval for procurement of 111 Naval Utility Helicopters at a cost of over ₹21,000 crores.
“This is the first project under the MoD’s prestigious Strategic Partnership (SP) Model that aims at providing significant fillip to the Government’s ‘Make in India’ programme,” the Defence Ministry said in a statement.
SP model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner under technology transfer from a foreign Original Equipment Manufacturer (OEM).
The validity of the DAC decision is 18 months, within which the Navy has to process the deal and the selected OEM will then tie up with a suitable Indian partner to manufacture the helicopters in India.
This will be the pilot project under the SP model and pave the way for clarity on the other three projects in the pipeline, a defence official observed.
Government to Government deal
The 24 MRH will be procured from the US under a Government to Government deal. The Navy has earlier selected the MH-60 MRH but the deal fell through due to price issues. The deal is estimated to cost about $1.8bn.
An announcement on the purchase of the MRH is expected during the 2+2 talks scheduled to be held on September 6.
Indigenous guns
In another deal for the Army, the DAC granted approval for procurement of 150 indigenously developed 155 mm Advanced Towed Artillery Gun Systems (ATAGS) at an approximate cost of ₹3,364.78 crore.
These guns have been indigenously designed and developed by the Defence Research and Development Organisation (DRDO) and will be manufactured by production agencies, as nominated by DRDO, the statement said.
The DAC also cleared the procurement of 14 Vertically Launched Short Range Missile Systems for the Navy which will boost the self-defence capability of ships against Anti-Ship Missiles. Of these, 10 systems will be indigenously developed.
