Army’s $2-b Ammunition Programme Faces Delays


Programme Faces

The much-awaited $2-billion ammunition programme of the Indian Army is facing inordinate delays as the Defence Ministry is yet to issue a revised Request for Proposal (RFP) to leading players eyeing the deal.

The Defence Ministry issued multiple RFPs, which is the second stage in the procurement process involving financial evaluation of the bidders, to Indian industry in March. Subsequently, a pre-bid meeting was scheduled in May to answer queries raised by the industry.

“The OEMs and Indian partners have sought a number of legitimate clarifications during the pre-bid meeting because the RFP had a number of flaws in it. As a result, the Defence Ministry was to issue a clarification in a few weeks. However, these clarifications are yet to be issued and delaying the project further,” a top executive of a defence firm told BusinessLine.

Some of the leading Indian defence firms competing for the deal are Tata Power SED, Tata Advance Systems Ltd., Bharat Forge, Reliance Defence, Larsen & Toubro and Mahindra Defence. Read More…

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