Battles for Indian Partnerships Continues

Posted on: Sep. 7th, 2006 || Source: Flight Global | E-mail Article | Print Article

Battles for Indian Partnerships Continues

Indian defence procurement plans were stirring to life last week, as several major manufacturers signed industrial agreements and the government issued new directives concerning its forthcoming military purchases.

The defence ministry unveiled a fast-track procedure to approve the purchase of urgently needed equipment, with this to revolve around a newly formed Defence Acquisition Council. While the ministry did not spell out which programmes could fall into the new category, industry sources say it will cover competitions to supply 126 lightweight fighters - a request for proposals (RFP) for which could be issued within the next two months - and almost 200 army light utility helicopters.

As the two deals could be worth almost $16 billion, the government is also keen to avoid the corruption scandals that have dogged several of its previous procurements. The ministry says that all deals worth over Rp1 billion ($22 million) must have pre-contract agreements to prevent "undue influence", and has spelt out punitive measures for procedural breaches.

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