Is this not a Lungi-Dance moment? With in few days of assuming the charge of two ministries, our DM has scrapped the tender not only because it is scam-tainted but also to promote indigenous industry.
However the maths is not adding up. The decision has been taken on 197 foreign made choppers for 6,000 crore rupees and later it says 400 such choppers for 40,000 crore rupees (Am ignoring an extra zero mentioned in the article as 400,000 crore rupees because a) 400,000 is a huge number b) 6,000 + 17,500 + 4,800 + 6,600 = 34,900 crore rupees still < 40,000).
What is the split between Army and IAF for the 203 choppers?
PS - Edited later, noticed one more zero error of 150,000 Crore rupees for Chinook and Apache. God help TOI's reporting standards. Probably, India's health and education budget combined won't reach 150,000 Crore rupees. Sorry for deviation.
NEW DELHI: Defence ministry on Friday scrapped a scam-tainted tender worth over Rs 6,000 crore to procure 197 light utility helicopters for Army and Air Force to replace the vintage fleet of Cheetah and Chetak choppers used to move troops and equipment to high altitude locations like Siachen.
In a meeting of the Defence Acquisition Council headed by defence minister Arun Jaitley, the government also cleared proposals worth over Rs 17,500 crore including the mid-life upgrade of the aging fleet of submarines for Rs 4,800 crore and procurement of 118 Arjun Mk II tanks for Rs 6,600 crore.
The DAC decided to retract from the tender for procuring 197 helicopters and it has been decided that the Indian industry would be given the opportunity to produce around 400 such choppers for the requirements of the armed forces, defence ministry sources said here. In line with NDA government's plan to develop the indigenous industry, the government decision is expected to generate business worth over Rs 40,0000 crore for the local industry in the defence sector, they said.
The defence ministry's apex body for procurement cases also cleared proposal for offsets deviations in the Rs 15,0000 crore deal for buying 15 Chinook and 22 Apache attack helicopters from the US.