{"id":52122,"date":"2016-01-30T21:53:30","date_gmt":"2016-01-30T21:53:30","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2016\/01\/30\/indian-vehicle-program-hits-hurdle-over-company-selections\/"},"modified":"2026-08-07T23:52:44","modified_gmt":"2026-08-07T23:52:44","slug":"indian-vehicle-program-hits-hurdle-over-company-selections","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/land\/2016\/01\/30\/indian-vehicle-program-hits-hurdle-over-company-selections\/","title":{"rendered":"Indian Vehicle Program Hits Hurdle Over Company Selections"},"content":{"rendered":"\n<p>NEW DELHI \u2014 India&#8217;s <span class=\"rte rte-comment\">Make (India) defence programme &#8211; <\/span>$11 billion Future Infantry Combat Vehicle (FICV) program faces hurdles <span class=\"rte rte-comment\">could go into a limbo <\/span>after <span class=\"rte rte-comment\">objections by\u00a0resulting in delays as <\/span>private <span class=\"rte rte-comment\">sector <\/span>domestic companies objected to the Defence Ministry&#8217;s <span class=\"rte rte-comment\">are opposing early January decision of the Ministry of Defence (MoD) to<\/span> nomination\u00a0of state-owned Ordnance Factory Board <span class=\"rte rte-comment\">(OFB) <\/span>as one of the program&#8217;s Development Agencies (DA).\u00a0<span class=\"rte rte-comment\">(DA).<\/span><\/p>\n\n\n\n<p>The other DA&#8217;s will be selected from among more than half a dozen competing private <span class=\"rte rte-comment\">sector defense <\/span>companies, <span class=\"rte rte-comment\">competing for the project <\/span>and the MoD has extended the date of filing their bids to Feb.\u00a016. <span class=\"rte rte-comment\">2016.<\/span><\/p>\n\n\n\n<p>Under the Make India category, two DA&#8217;s would <span class=\"rte rte-comment\">are proposed to <\/span>be selected and the government would <span class=\"rte rte-comment\">will <\/span>fund up to 80 percent of <span class=\"rte rte-comment\">in <\/span>the prototypes. <span class=\"rte rte-comment\">of the product. <\/span>After trials, one of the DA&#8217;s would be <span class=\"rte rte-comment\">will be selected and <\/span>asked to produce the FICV.<\/p>\n\n\n\n<p>When asked if the private <span class=\"rte rte-comment\">sector <\/span>companies endorse the nomination of\u00a0<span class=\"rte rte-comment\">recent decision of MoD to nominate state owned <\/span>OFB, Rajinder Bhatia, <span class=\"rte rte-comment\">Chief Executive Officer (<\/span>CEO<span class=\"rte rte-comment\"> )<\/span> of Bharat Forge, one of the competitors,\u00a0<span class=\"rte rte-comment\">which is in the competition <\/span>said, &#8220;No comment. We hope this one-time exception and nomination would be discontinued as promised by the MoD.&#8221;<\/p>\n\n\n\n<p>However, an executive of another competitor openly disapproved of <span class=\"rte rte-comment\">was forthright in disapproving <\/span>MoD&#8217;s decision to nominate state-owned companies.<\/p>\n\n\n\n<p>&#8220;The new players would contest that this short-listing of one vendor <span class=\"rte rte-comment\">(OFB) <\/span>was announced after the expression of interest [EOI]\u00a0<span class=\"rte rte-comment\">(EOI <\/span>was published, which did not have this qualification criteria. This constitutes a change, more like an after-thought. This ground is sufficient for retraction of the EOI,&#8221; said\u00a0an executive of Tata Group. <span class=\"rte rte-comment\">without being named.<\/span><\/p>\n\n\n\n<p>Another senior executive of a <span class=\"rte rte-comment\">domestic <\/span>private <span class=\"rte rte-comment\">sector <\/span>company, also <span class=\"rte rte-comment\">which is <\/span>in the race, said\u00a0there\u00a0is confusion whether OFB will be a\u00a0third DA in addition to <span class=\"rte rte-comment\">the <\/span>two <span class=\"rte rte-comment\">more <\/span>DA&#8217;s to be selected from <span class=\"rte rte-comment\">the<\/span> competing private <span class=\"rte rte-comment\">sector defense <\/span>companies.<\/p>\n\n\n\n<p>Bhatia said\u00a0the impression being given to <span class=\"rte rte-comment\">the <\/span>industry and EOI recipients is that OFB will be the third DA.<\/p>\n\n\n\n<p>In addition, selection of OFB by\u00a0<span class=\"rte rte-comment\">Besides, the move to select OFB on <\/span>nomination <span class=\"rte rte-comment\">basis <\/span>goes against the purpose of the Make India policy, which proposes to <span class=\"rte rte-comment\">give a <\/span>boost <span class=\"rte rte-comment\">to <\/span>the domestic defense company.<\/p>\n\n\n\n<p>The EOIs <span class=\"rte rte-comment\">for FICV <\/span>were issued to <span class=\"rte rte-comment\">private sector <\/span>domestic private major Mahindra; Bharat Forge; Larsen &amp; Toubro; Punj Lloyd; Tata Power; Tata Motors; Pipavav Defence; Rolta India; and\u00a0Titagarh Wagons. <span class=\"rte rte-comment\">; and OFB. <\/span>The second DA will now have to be selected from these private sector companies.<\/p>\n\n\n\n<p>The\u00a0FICV <span class=\"rte rte-comment\">has failed to kick start and the <\/span>project has struggled <span class=\"rte rte-comment\">remained on the files <\/span>since it was conceived nearly seven years ago\u00a0and <span class=\"rte rte-comment\">it is likely that the project <\/span>may not ever take off in the Make India category, said an Indian Army official.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bhatia said\u00a0the impression being given to the industry and EOI recipients is that OFB will be the third DA.<\/p>\n\n\n\n<p>The <span class=\"rte rte-comment\">Indian <\/span>Army requires the FICV to\u00a0<span class=\"rte rte-comment\">which will <\/span>have a <span class=\"rte rte-comment\">n expected <\/span>life span of 32 years. The vehicle should be tracked and\u00a0<span class=\"rte rte-comment\">Some of the essential parameters warrant that the FICV should be Tracked vehicle, <\/span>have amphibious capability with full combat load. It <span class=\"rte rte-comment\">The FICV <\/span>will ultimately replace <span class=\"rte rte-comment\">the <\/span>existing Russian-made BMP-2 infantry combat vehicles. <span class=\"rte rte-comment\">with the Indian Army.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Questions Over Selection of the DA\u00a0<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The basis of selection of a DA from among\u00a0the private sector defense companies remains questionable as there is no strict yardstick to select the DA,&#8221; said\u00a0Nitin Mehta, a defense analyst here.<\/p>\n\n\n\n<p>The commercial strength of the <span class=\"rte rte-comment\">private sector <\/span>defense company is given <span class=\"rte rte-comment\">tops the <\/span>priority over technical ability, according to the criteria formulated by the MoD. <span class=\"rte rte-comment\">to select a DA.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;&#8221;Too much emphasis in the assessment of DAs has been laid on commercial and technical criteria, which should have already been taken into account during the feasibility study conducted for short-listing companies as potential DAs,&#8221; said\u00a0Khutub Hai, retired Indian Army brigadier general and managing director of Firmbase Consulting.<\/p>\n\n\n\n<p>&#8220;Repeating the same criteria for final selection is a faulty method and only places emphasis on size of the company and the defense contracts executed earlier, even if such contracts have little in common with the FICV.&#8221; <span class=\"rte rte-comment\">says Khutub Hai , retired Indian Army Brigadier and managing director of Firmbase Consulting\u00a0<\/span><\/p>\n\n\n\n<p>Since commercial and technical criteria account for\u00a0more than 60 percent of the assessment, <span class=\"rte rte-comment\">weight age has been given to commercial and technical criteria, <\/span>Hai said,\u00a0&#8220;only two or three large companies will qualify all the time.&#8221;<\/p>\n\n\n\n<p>Meantime, the <span class=\"rte rte-comment\">Indian <\/span>Army has pressed to upgrade <span class=\"rte rte-comment\">already pressed the upgrade of the <\/span>existing BMP-2 infantry combat vehicles, ensuring against the delayed FICV project.\u00a0The\u00a0<span class=\"rte rte-comment\">Indian\u00a0<\/span>Army wants to upgrade these vehicles so they can remain in operation post-<span class=\"rte rte-comment\">that\u00a0their deployment can be made post\u00a0<\/span>2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The BMP-2 infantry combat vehicles (ICV) are being license produced by OFB and there are around 2000 BMP-2 vehicles in operation.<\/p>\n\n\n\n<p><span class=\"rte rte-comment\">The Indian Army wants to upgrade these vehicles so they can remain in operation post\u00a0that their deployment can be made post 2017.<\/span><span class=\"rte rte-comment\">so that it remains in operation.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The FICV must carry a crew of three and a stick of minimum eight personnel with combat loads and should be transportable by road, rail and in-service aircraft of the Indian Air Force.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: <a href=\"mailto:vraghuvanshi@defensenews.com\">vraghuvanshi@defensenews.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s $11 billion Future Infantry Combat Vehicle faces hurdles after objections to a state-owned company being picked as a finalist<\/p>\n","protected":false},"author":7,"featured_media":113743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":14,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[33,14],"tags":[],"coauthors":[3390],"class_list":["post-52122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","category-land"],"acf":{"subheadline":"","legacy_arc_id":"HGI3Q3KBZJBBHOD2T22CDAVSZY","arc_canonical_url":"\/land\/2016\/01\/30\/indian-vehicle-program-hits-hurdle-over-company-selections\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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