India inked 18 deals to source defence items from abroad in 2014-15

India inked 18 deals to source defence items from abroad in 2014-15

Contracts were signed for the procurement of items such as missiles, rockets and simulators

Source: PIB, Government of India

Signing of Defence Deals  Capital procurement of defence equipment is made from various indigenous as well as foreign sources and contracts are signed after obtaining approval of competent financial authority in accordance with the provisions of Defence Procurement Procedure-2013.  During 2014-15, 18 contracts were signed between May 2014 and February 2015 with foreign vendors including those from USA, Russia, Israel, Germany, France and UK for procurement of items such as missiles, rockets and simulators. Contracts are executed as per terms and conditions incorporated therein. The 18 contracts were signed by designated officers as per provisions of DPP 2013 which do not require the presence of Defence Minister at the signing.  Defence Procurement Procedure (DPP) provides for direct dealing with the Original Equipment Manufacturers (OEMs) or Authorised Vendors or Government Sponsored Export Agencies (applicable in case of countries where domestic laws do not permit direct export by OEM). It also provides that vendor is required to give full details of any agents / technical consultants / authorised vendors that may have been appointed by them for marketing of this equipment in India. These details should include the scope of work and responsibilities that have been entrusted with the said party in India. This information was given by Defence Minister Manohar Parrikar in a written reply to Shantaram Naik in Rajya Sabha on Tuesday. Production of Aircraft by Tata-Airbus Consortium  A proposal to procure 56 transport aircraft as replacement for the ageing fleet of Avro aircraft through ‘buy & make’ route was accorded Acceptance of Necessity (AoN) by the Defence Acquisition Council (DAC). Out of these, 40 aircraft will be manufactured in India by the Indian Production Agency (IPA) chosen by the Original Equipment Manufacturer (OEM) from the private sector. The Request for Proposal (RFP) was issued to eight global transport aircraft manufacturers on 8th May, 2013. Only a single bid was received in response to the RFP. The DAC constituted an independent committee of experts to look into various issues related to single vendor situation. The report of the committee was placed before the DAC. After consideration of the report of the committee and related aspects, DAC, the competent authority under Defence Procurement Procedure, accorded approval to proceed with the case with the single bid received from M/s Airbus Defence and Space S.A. This information was given by Defence Minister Manohar Parrikar in a written reply to Salim Ansari in Rajya Sabha on Tuesday. Collaboration with USA for Building Aircraft Carriers  However, a joint working group has been formed under the auspices of US-India Defence Trade and Technology Initiative framework for possible co-operation in the field of aircraft carrier technologies in the future. Aircraft carriers are for Navy. The above mentioned technological collaboration will not aid the Indian Air Force.  This information was given by Defence Minister Manohar Parrikar in a written reply to KC Tyagi and Shri P Bhattacharya in Rajya Sabha on Tuesday.  

August 11, 2015 | 4:50pm IST.

The Dollar Business Bureau - Aug 11, 2015 12:00 IST