India Clears Defence Deals to replace military equipmentJust In

July 15, 2015 17:11
India Clears Defence Deals to replace military equipment

The Defence Acquisition Council (DAC) has decided that the Indian Army will replace its vintage anti-aircraft guns. The committee that met late this evening, also cleared the  purchase of defence equipment worth Rs. 30,000 crore ($4.7 billion).

Although the new guns will have to be bought from Indian companies, none of them demonstrated the ability to manufacture them. The army is expected to get 428 guns at a cost of Rs.16,900 crore.

At present, the Indian army uses L-70 and Zu- 23 mm guns of 1950s vintage. They were acquired from Swedish manufacturer Bofors and from the erstwhile Soviet Union's Podolsky Electromechanical Plant.

However, the Narendra Modi government hopes that the Indian companies, which entered into the sphere of defence equipment manufacturing will tie up with foreign manufacturers and acquire the technology, as the foreign manufacturers are now allowed to acquire 49% stake.

Besides, the DAC has allowed the Indian Navy to buy four more P8i maritime surveillance aircraft from the US. Currently, Indian Navy has eight such long-range maritime surveillance and anti-submarine aircraft made by Boeing. The purchase of four more could cost of Rs.4,380 crore.

-Sumana

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