New Delhi: The Union Defence Ministry has permitted a proposal to buy 72,000 Sig Sauer assault rifles from the US at a price of round Rs 780 crore.
The Defence Acquisition Council led by Defence Minister Rajnath Singh on Monday permitted proposals for capital acquisition of assorted gear required by the Indian armed forces at an approximate price of Rs 2,290 crore.
These embody procurement from the home business in addition to overseas distributors.
To equip the frontline troops of the Military, the council has accorded approval for the procurement of 72,000 Sig Sauer assault rifles at a price of round Rs 780 crore.
Beneath the ‘Buy Indian’ class, the council has permitted the procurement of Static HF Tans-receiver units and sensible anti-airfield weapons. The HF radio units will allow seamless communication for the sphere items of the Military and the Air Power. They’re being procured at a price of Rs 540 crore.
The sensible anti-airfield weapons being procured at price of Rs 970 crore will add to the hearth energy of the Navy and the Air Power.
Earlier, the Indian Military had acquired the primary lot of Sig Sauer assault rifles to spice up its counter-terrorism operations. India had acquired the rifles below the fast-track procurement programme.
The brand new rifles will exchange the prevailing Indian small arms system (Insas) 5.56×45 mm rifles utilized by the forces and manufactured domestically by the Ordnance Factories Board.
India does away with offset coverage in Rafale-like offers
India has achieved away with the offset clause in government-to-government, inter-government and single vendor defence offers, per week after the nation’s auditor pulled up French defence large Dassault for not assembly its contractual obligation to reinvest in India after the sale of 36 Rafale fighter plane to the Indian Air Power.
Apurva Chandra, Particular Secretary and Director Common (Acquisition) mentioned, “We have made changes in offset guidelines. From now on, there would be no offset clause in government-to-government, inter-government and single vendor defence deals.”
Whereas talking after unveiling of recent Defence Acquisition Process (DAP) 2020 in New Delhi, Chandra mentioned that in different offers there can be offset coverage. He mentioned that as per revision in offset tips the choice can be given to fabricate of full defence merchandise over parts and varied multipliers have been added to offer incentivisation in discharge of offsets.
On September 23, India’s federal auditor pulled up Rafale-maker Dassault and its weapons producer for not fulfilling their offset dedication to switch know-how to India as a part of the 2016 contract for 36 fight jets.
The nation’s monetary watchdog Comptroller and Auditor Common (CAG) in an audit report on Administration of Defence Offsets tabled in Parliament flagged that overseas distributors made varied offset commitments to qualify for the principle provide contract however later weren’t earnest about fulfilling these commitments.
The report acknowledged, “..in the offset contract relating to 36 Medium Multi Role Combat Aircraft (MMRCA), the vendors M/s Dassault Aviation and M/s MBDA initially proposed (September 2015) to discharge 30 per cent of their offset obligation by offering high technology to DRDO.”
DRDO wished to acquire Technical Help for the indigenous improvement of engine (Kaveri) for the Gentle Fight Plane.
“Till date the vendor has not confirmed the transfer of this technology,” the CAG acknowledged within the report.
India has procured 36 Rafale fight plane from Dassault Aviation in a government-to-government contract. Rafale is a 4.5 era plane and has newest weapons, superior sensors and absolutely built-in structure. It’s also an omni-role plane which suggests it could possibly perform a minimum of 4 missions in a single sortie.
In 2005, India adopted the Offset Coverage for defence capital purchases. This meant that for all capital purchases above Rs 300 crore made via imports, the overseas vendor was required to speculate a minimum of 30 per cent of the worth of the acquisition in India. This funding was to be made within the Indian defence and aerospace sector. Numerous avenues had been obtainable to the seller to discharge these offset obligations.
This included International Direct Funding, providing of free Switch of Expertise to Indian corporations, buy of eligible merchandise manufactured by Indian corporations (exports). For the discharge of those offsets the overseas vendor needed to choose an Indian agency as a companion (Indian Offsets Associate or IOPs).
The target of the Offset coverage was to develop the Indian defence business in order to attain self-reliance and cut back dependence on imports.
From 2005 until March 2018, 46 offset contracts had been signed with overseas distributors, valued at Rs 66,427 crore.
“Under these contracts, by December 2018, Rs 19,223 crore worth of offsets should have been discharged by the vendors. However, the offsets claimed to have been discharged by them was only Rs 11,396 crore, which was only 59 per cent of the commitment,” CAG acknowledged.
Additional, solely 48 per cent (Rs 5,457 crore) of those offset claims submitted by the distributors had been accepted by the ministry.
The remaining had been largely rejected as they weren’t compliant to the contractual situations and the Defence Procurement Process, the auditor flagged.
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