The Defence Acquisition Council, which met on Tuesday, cancelled a tender for procurement of naval guns from the U.S. and added the quantity to an existing upgraded Super Rapid Gun Mount (SRGM) being manufactured by the Bharat Heavy Electricals Limited (BHEL). In all, the DAC accorded Acceptance of Necessity (AoN) for capital acquisition and modernisation proposals worth ₹7,965 crore.
A defence source said the SRGM was earlier proposed to be procured under the U.S. Foreign Military Sales (FMS) category. “But now this will be given to BHEL to promote Make in India. This measure will result in saving ₹3,000 crore,” the source said.
“Key approvals of procurement from domestic sources include 12 Light Utility Helicopters from the Hindustan Aeronautics Limited (HAL), Lynx U2 fire control system from the Bharat Electronics Limited (BEL) which will enhance the detection, tracking and engagement capabilities of war ships and mid-life upgradation of the Dornier aircraft from HAL to increase the naval capacity of coastal surveillance…,” the Defence Ministry said.
In November 2019, the U.S. had approved the sale of 13 MK-45 127mm naval guns built by BAE Systems worth around $1 billion. These bigger guns with larger range and firepower over the current main gun on warships were to become the mainstay of the frontline ships under construction at various shipyards in India.
The deal for which the contract negotiations were under way has been cancelled because “the cost has gone by over 50% from the estimated price and there is also limited technology transfer”, the source said.
Niche capabilities
The Ministry said as a further impetus to “Aatmanirbhar Bharat”, the global procurement case of naval guns has been foreclosed with these guns’ quantity added to the upgraded SRGM being manufactured by BHEL. “These SRGMs provide niche capabilities of engaging fast manoeuvring targets using guided munitions and range extensions and are to be fitted on the warships of the Navy.
All of these proposals [100%] are under ‘Make in India’ with focus on design, development and manufacturing in India.”
