Boosting the nation’s defence preparedness, the Defence Acquisition Council (DAC) has cleared a set of much-delayed defence deals, worth Rs.78,000 crore. In line with the ‘Make in India’ mantra , the focus was on indigenisation in addressing critical equipment shortages. The Navy can heave a sigh of relief with the sanction for six new conventional stealth submarines under Project 75I, all to be built in a single shipyard in India. At Rs.50,000 crore, this will be the largest-ever domestic ship-building contract. A committee set up by the DAC will identify the eligible shipyard from among five public sector and two private shipyards within eight weeks for issuing a Request for Proposal (RFP). Project 75I was promulgated under the ambitious “30-year submarine construction plan”, approved by the Cabinet in 1999 to build 24 conventional submarines. But not a single submarine has been inducted till date and the induction of Scorpene submarines has been repeatedly delayed.
In another significant decision, the government has decided to go ahead with acquiring Israeli-built Spike Anti-Tank Guided Missiles, a third-generation fire-and-forget system, to equip the infantry with 300-plus launchers and 8,000-plus missiles, along with transfer of technology worth Rs.3,200 crore. This effectively nixes the U.S. offer of producing the Javelin in India and further co-development of fourth-generation Javelin for use by the armies of both countries. Given that the U.S. lobbied hard with New Delhi, this is sure to cause heartburn in Washington. Both the systems have been extensively field-tested by the Indian Army, and opting for Spike is a pragmatic decision to save time and money as the acquisition had already been delayed by two years. If things go as per plan, the deadline of the Army to induct the new missiles by 2017 should be met. In all, about 40,000 missiles are required to equip the Army’s 382 infantry battalions and 44 mechanised regiments. The decision not to go ahead with the Javelin also reflects concerns relating to the extent of technology transfer by the U.S. In contrast, Israel has a long record of being a trusted partner. The co-development would also have meant an end to the indigenous Nag ATGM project. The Midget submarines for the Navy will boost the capacity of marine commandos to undertake special missions behind enemy lines, and likewise the other deals represent significant capacity additions. The decision is without doubt a positive movement with respect to the urgently needed modernisation of the three services. For this there is an immediate need to reform the procurement process, which after several revisions is still cumbersome and opaque. The real test is to ensure timely completion of the process in a transparent manner, adhering to the set deadlines.