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This is an archive article published on July 20, 2014

Defence Ministry okays procurement proposals worth Rs 21,000 crore

The tender for fleet support ships too would be issued to private sector and public sector shipyards within the country.

The Ministry of Defence on Saturday cleared procurement proposals worth Rs 21,000 crore.

In his first Defence Acquisition Council meeting, Defence Minister Arun Jaitley cleared critical proposals such as the much-awaited replacement of Indian Air Force’s ageing Avro transport aircraft fleet, supply of Advanced Light Helicopter Dhruv for the Coast Guard and Navy at Rs 7,000 crore and the Rs 9,000-crore proposal for fleet support ships for the Navy.

Continuing the stance that the NDA government has taken ever since coming to power, the indigenisation theme was visible even in the clearances given on Saturday. For instance, the Request for Proposal for the Avro replacement programme would be issued to Indian private players, who can jointly build the aircraft along with foreign vendors.

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Acceptance of Necessity for the programme to replace the fleet of 56 Avro platforms was accorded by the Defence Acquisition Council in July 2012. As per the programme, 16 aircraft would be manufactured by the foreign vendors while 40 would be built within the country.

The tender for fleet support ships too would be issued to private sector and public sector shipyards within the country.

Another proposal, to produce Offshore Patrol Vessels and Fast Patrol Vessels for the Coast Guard, pegged at Rs 2,360 crore was also given a green signal.

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