In a major decision since Nirmala Sitharaman took over as Defence Minister last year in September, the Defence Acquisition Council (DAC) headed by her cleared the purchase of big ticket items worth over Rs 46,000 crore on Saturday.
These procurements include 111 naval utility helicopters, to be manufactured in India under the Strategic Partnership (SP) model, and 24 multi-role helicopters, to be bought from the US for the Navy to detect and destroy submarines. Nod was also accorded for buying indigenously designed 150 artillery guns for the Army.
The approval for the 24-helicopters deal worth over two billion dollars through a Government-to-Government deal from the US comes days before the important 2+2 meeting of Ministers of both the countries here on September 6. While External Affairs Minister Sushma Swaraj and Sitharaman will represent India, Secretary of State Michael Pompeo and Defence Secretary Jim Mattis will represent the US. These advanced helicopters aboard frontline warships including aircraft carriers, destroyers and frigates enhance the operational capabilities of the Navy to detect enemy submarines fast and then destroy them. The present fleet of Seaking Helicopters in the Indian Navy is nearing its operational life and need urgent replacement.
The induction of helicopters, manufactured by Sikorsky of the US, will to some extent plug the critical gap in the Navy’s capabilities.
It needs more than 100 such helicopters but the Government decided to clear procurement of 24 machines for the time being.
In another important decision by the DAC, the apex body for giving clearances for procurement of weapons by the armed forces, approval was given for procurement of 111 Naval Utility Helicopters at a cost of over Rs 21,000
These helicopters will be manufactured in India under the SP model wherein an Indian manufacturer will tie up with a foreign vendor to build the platforms through transfer of technology in the country. The Navy has already issued the Request for Information (RFI) last year but clarity was awaited on the implementation guidelines under the SP model. The guidelines have been approved recently and are expected to be issued shortly.
"This is the first project under the prestigious SP Model that aims at providing significant fillip to the Government's 'Make in India' programme," Defence Ministry officials said after the DAC meeting.
The validity of DAC decision is 18 months within which the Navy has to process the deal and the selected foreign original equipment manufacturer (OEM )will then tie up with a suitable Indian partner to manufacture the helicopters here.
Enunciating upon the objectives of SP model, Defence Ministry officials said it envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM, acquire niche technologies and set up production facilities in the country.
The model has a long-term vision of promoting India as a manufacturing hub for defence equipment thus enhancing self-sufficiency and establishing an industrial and R&D ecosystem, capable of meeting the future requirements of the Armed Forces.
The naval utility helicopter contract when finalised, will result in a vibrant and widespread Defence industrial eco-system in the Indian aviation sector with the private industry and MSMEs as major stakeholders.
In another deal to give a fillip to the Indian industry and attain self-reliance, the DAC cleared procurement of 150 indigenously developed 155 mm Advanced Towed Artillery Gun Systems (ATAGS) at an approximate cost of Rs.3,364.78 crore.
These indigenously designed and developed long range guns by the Defence Research and Development Organisation (DRDO) will be manufactured by production agencies, as nominated by DRDO, the Defence Ministry 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.