Futuristic Infantry Combat Vehicle (FICV)
The backbone of the Indian Army’s infantry combat vehicles is the Russian-designed BMP (‘Sarath’ BMP-II) series which are being made by Ordnance Factory Board (OFB) since its induction in 1980. Approximately, 1900 ICVs BMP-2/2K are in service with the Indian Army and are likely to remain operational till 2017. The Indian Army was worried about its operational capability, particularly in terms of rapid deployment post the 2017 scenario. Thus, the FICV project was a strategic and critical programme which would define Indian Army’s mobility, deployability and lethality in the future to come and its ability to execute its proactive strategy.
The FICV project was approved in 2008, but had seen little progress since then. By mid-2013 the Futuristic Infantry Combat Vehicle Request for Proposal (RFP) had been withdrawn and refomulated. Armored vehicle manufacturers were out in force at DefExpo 2016, lured by the massive Future Infantry Combat Vehicle (FICV) program for the Indian Army. Under FICV some 2,610 vehicles would replace in-service BMP-2/2K Sarath IFVs beginning in 2022.
Expressions of interest in the resurrected Rs. 65,000 Crore ‘Make in India’ project were lodged by six contenders in mid-February: TATA Motors, Larsen & Toubro (L&T), Mahindra Defence, TATA Power SED (with Titagarh Wagons), Reliance Defence and the Ordnance Factory Board (OFB; joint venture with Russian MBT Manufacturer - Uralvagonzavod). The government would provide 80% of development costs for two vendors for the 20 tonne tracked and amphibious IFV. Two development agencies will be shortlisted, and the shortlisted vendors will build one prototype each within 24-36 months.
The FICV project initially envisaged 70:30 allocations to the winner and the runners up of the contract with an 80:20 funding distribution by the Government and industry respectively. The Army identified a need of nearly 2600 ICVs over 20 years with the following specifications:
The MoD completed the field and facility visits of companies it had shortlisted in February 2011. Sources claimed it had asked for assurance of overseas transfer of technology (ToT). Also, the Centre was particular that the execution of the project lie in the hands of a domestic firm, although the need for foreign collaboration is almost a 'mandate'. The Centre was keen on firms with foreign collaborations/tie-ups and that they would have an edge over the others as the project would require high precision. US defence major General Dynamics was said to be in the fray looking for possible tie-ups with Indian firms to bag the deal. The US firms competing for the other major defence contracts in India - the $10 billion medium multi-role combat aircraft (MMRCA) for the Indian Air Force lost to their European competition.
Mahindra Defence Systems in partnership with BAE Systems, Larsen Toubro & company also works on foreign partnerships. Company Tata Motors is also trying to find a foreign partner after deal with Rheinmetall has reached a deadlock due to the Indian blacklist its Swiss subsidiary. State-owned Ordnance Factory Board is also participating in the project.
The nearly $10 billion Indian Army’s Futuristic Infantry Combat Vehicle (FICV) project was slated to be the largest indigenous defense program. The FICV project was classified under the "Buy & Make” category mentioned in Defence Procurement Procedure (DPP-2011). The vendors for the Indian Army’s FICV project were shortlisted on the basis of technical, functional and commercial aspects, and only local Indian firms could bid. However, local firms could opt for technology tie-ups with foreign companies. It would help develop a whole eco-system of small and medium sized companies as suppliers to the winners of the contract. The FICV development would provide a big boost to India’s pursuance of self-reliance and indigenisation in the form of a robust domestic defence industrial base.
At the 6th International Land and Naval Systems Exhibition, also called DEFEXPO India 2012, held at Pragati Maidan in New Delhi from March 29 to April 1, Tata Motors displayed the scaled models of its concept futuristic infantry combat vehicle (FICV), including the turret. In addition, the proposed layout of the production facility was also displayed. Tata Motors is one of the four Indian companies which has been issued the Expression of Interest (EoI) by the Indian Army for the FICV, a ‘Make Indian’ project. The company has accordingly responded to the EoI based on indigenous design and development in association with key technology partners, and submitted its response in October 2010.
Two short-listed companies were to make an FICV prototype, and after field trials of the prototype, the winning company would produce up to 2,600 FICVs. After nearly two years of discussions, no final decision was made about which companies would participate. The Defense Ministry had selected state-owned Bharat Earth Movers and a consortium of Larsen & Toubro, Mahindra Defense and Tata Power, but former Indian Army chief general, V.K. Singh, questioned the ability of the Indian companies to take on such a big project.
In December 2012 Russia offered to transfer BMP-3 combat vehicle technology to India if India cancelled its project, as India's its homemade Futuristic Infantry Combat Vehicle (FICV) can be commissioned no earlier than in ten years’ time. Russia offers India to buy BMP-3 infantry fighting vehicles instead of further implementation of its stalled project for the development of such a vehicle. The Indian Defence Ministry wanted to produce the BMP-3 under the license since this has a great sense because India would be able to start producing a similar vehicle no earlier than ten years. Russia offers India to buy BMP-3 infantry fighting vehicles instead of further implementation of its stalled project for the development of such a vehicle. The Indian Defence Ministry wanted to produce the BMP-3 under the license since this has a great sense because India will be able to start producing a similar vehicle no earlier than ten years.
By June 2013 it appeared that the $10 billion Futuristic Infantry Combat Vehicle (FICV) had been shelved, with the Indian Ministry of Defense instead accelerating the upgrade of its Russian-made BMP-2 infantry combat vehicles, and issuing tenders to buy 2,000 engines for the program. The Indian Army’s more than 1,500 BMP-2s would be upgraded at a cost of more than $1.2 billion over three to five years, under a program that received formal MoD clearance in May 2013. Though this move did not necessarily shut down the homegrown FICV project, it was less likely to come to fruition. The upgrade would improve observation and surveillance, night-fighting capability and fire control, and would provide an improved anti-tank guided missile system and 30mm automatic grenade launcher.
The tender for the purchase of 2,000 engines to power the upgraded BMP-2 was sent to domestic auto majors Mahindra & Mahindra, Tata Motors, Force Motors, Ashok Leyland, Maruti Udyog and Crompton Greaves, and to MTU of Germany, Thales of France and Rosoboronexport of Russia. The Army required engines able to generate 350 to 380 horsepower and are easy to maintain and operate in extreme weather conditions. The existing engine of the BMP-2 had 285 horsepower and is not suited for cross-country mobility. This tender purchase 2,000 engines for the upgrade was cancelled because none of the domestic vendors fulfilled the engine’s requirements. Now a global tender is likely to be issued for the engines.
India will not shelve its homegrown $10 billion Futuristic Infantry Combat Vehicle (FICV) program in favor of advanced Russian BMP-3 combat vehicles. The decision was conveyed to the Russian side at the 18 November 2013 meeting of the India-Russia Inter-Governmental Commission on Military Technical Cooperation held in Moscow.
India’s Mahindra Defence Systems tied up with BAE Systems, Larsen & Toubro was working on overseas tie ups, and Tata Motors was also working to connect with overseas companies after its tie up with Rheinmetall stalled following the blacklisting of the German company. State-owned Ordnance Factories Board was also in the race. The MoD will shortlist two competitors to develop their prototypes, which will be put to trial.
India cleared a bulk of defense projects worth $13 billion in a bid to boost the country's national defense preparedness, the Indian Defense Acquisition Council (DAC) said 25 October 2014. The DAC decided to buy 362 infantry fighting vehicles at a cost of 662 crore rupees.
A consortium of three defense companies, "Tata Motors", "Bharat Forge" and "General Dynamics Land Systems" will develop and manufacture an infantry fighting vehicle of the future. The customer is the defense department of India. The cost of the project is estimated at $ 10 billion. This was reported in March 2016. Development and production will take place on the territory of the Indian state. At the same time, the share of foreign developments will not exceed 30%. It is assumed that the final product will be compact, light and transportable through the air. The car will be able to overcome water obstacles and carry up to 8 people in the landing. As weapons it is planned to use long-range anti-tank missiles. The new BMP will be designed to replace more than 2,000 infantry combat vehicles of Soviet and Russian production that are in service with this country.
Futuristic Infantry Combat Vehicle (FICV)
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After 5-year delay, tender issued in Rs 50,000-cr Future Infantry Combat Vehicle project
Defence ministry hands an expression of interest to representatives of 10 Indian companies
Ajai Shukla | New Delhi Last Updated at July 16, 2015 23:40 I
After five years of delay, the army's proposal to build a "Future Infantry Combat Vehicle" (FICV), an armoured vehicle for carrying infantrymen into battle, has been resuscitated on Thursday.
The ministry of defence summoned representatives from 10 Indian companies and handed each an expression of interest (EoI), which asks for proposals for building a FICV that will eventually replace the army's 2,600 BMP-2 infantry carriers for an estimated Rs 50,000 crore. The EoIs were issued to Mahindra; Bharat Forge; Larsen & Toubro; Punj Lloyd; Tata Power; Tata Motors; Pipavav Defence; Rolta India; Titagarh Wagons, and the Ordnance Factory Board(OFB). They have been given 90 days to respond to the EoI with detailed proposals. This will involve forming consortia with Indian and foreign vendors, and conceiving and proposing the design of an FICV that would best suit the army's requirements.
Two vendors will be shortlisted, and they will then evolve and submit a detailed project report (DPR), comprising of a detailed technical and financial proposal. The better design will be chosen by an "integrated project management team" (IPMT), comprising of experts from various defence ministrydepartments.
This is the second time the FICV project has been launched under the "Make" category of the Defence Procurement Procedure of 2008 (DPP-2008). An EoI issued in 2010 to four vendors (L&T, Tata, Mahindra, OFB) evoked responses, but was cancelled in 2012 because the defence ministrycould not decide on the parameters for short-listing the two winning vendors.
With the ministry taking three years to re-issue the EoI, the FICV project has lost five years already.
The "Make" category involves going to Indian industry to develop "high technology, complex systems". Under this, the defence ministrywill funds 80 per cent of the cost of developing the two FICV prototypes, with short-listed vendors paying the remaining 20 per cent.
There is apprehension that issuing the EoI to so many prospective vendors has muddied the waters, making it difficult for the IPMT to down-select two winning proposals. "In 2012, the defence ministrywas unable to select two winning proposals out of four. It will have an even more difficult time selecting the winners from 10. They should have been more discriminating in issuing the EoI," says an executive from one of the companies involved.
There is surprise also that the EoI has been issued under the DPP-2008, even though DPP-2013 currently operates and DPP-2015 is being finalised. "The army obtained the ministry's acceptance under DPP-2008, so they are sticking with that, even though there are much more enlightened rules operating now. This needs to change," says a prospective vendor.
The FICV has been conceived as a multi-role platform that must perform three roles. It must be a battle-taxi for the infantry to keep pace with armour (tanks) in advance. Second, the guns on board provide fire-support to assaulting infantry after they dismount and charge at the enemy. Third, and most ambitiously, the FICV should hold its own on the mechanised battlefield, even against heavily armed tanks.
The FICV is required to have amphibious capability, allowing it to cross canals, rivers and stretches of sea; it must be air portable, i.e. capable of being transported in an aircraft's cargo hold, or slung under a helicopter with chains. It must fire anti-tank missiles, and be armed with a cannon and machine guns that are operated through state of the art sensors and all weather surveillance devices.
After 5-year delay, tender issued in Rs 50,000-cr Future Infantry Combat Vehicle project
=============================================================================================================
Sitharaman gives Army's delayed future combat vehicle project a push
The MoD is considering pushing the deal through under the Strategic Partnership Policy
BS Web Team | New Delhi Last Updated at September 22, 2017 16:44 IST
The $12-billion project to procure 2,300 Futuristic Infantry Combat Vehicles(FICV) for the Indian Army, which has been held up for over a decade, has received a fresh push from Defence Minister Nirmala Sitharaman, who took charge of the ministry less than a month ago, reported the Hindu Business Line.
According to the report, apart from the state-owned Ordnance Factory Board (OFB), which has been nominated for the project, Larsen & Toubro (L&T), Tata Motors, Reliance, Mahindra, and Tata Power SED-Titagarh Wagons are also in the race. All these firms had responded to the expression of interest (EoI) in 2015.
The financial daily reported that Sitharaman has sought details of the project and that an informal meeting was held on Tuesday. Further, citing sources, the report said that the matter would come up before the Defence Procurement Board on September 26. The minister, according to the report, may also bring up the project when she meets US Secretary of Defence James Mattis, who will come to India on a two-day visit later in September. On the other hand, Russia, the report added, is also keen on clinching the deal through the OFB.
With some critical technologies related to the project slated to be sourced from foreign firms and global defence majors like General Dynamics, Lockheed Martin, BAE Systems, and Rheinmetall eyeing the deal, the defence ministry, according to an anonymous official cited by the report, is considering pushing the deal through under the Strategic Partnership Policy (SPP). According to the official, the SPP route is viewed as "an easier and cleaner way" by many within the defence industry.
The SPP aims at creating capable defence manufacturers in the private sector, to compete with the DPSUs and Ordnance Factories that have historically dominated defence manufacture in India. The policy requires private firms chosen as strategic partners to enter technology partnerships with nominated global original equipment manufacturers and jointly bid for contracts to build aircraft, helicopters, submarines, and armoured vehicles for the military.
Back in January 2016, the defence ministry had announced that while the private sector companies would compete to develop the FICV, the OFBwould be nominated without competing as a third development agency.
The ministry's EoI, which invited ten companies on July 16, 2015, to submit proposals to develop the FICVunder the "Make" procedure, specified that two development agencies would be chosen. However, even as that competitive selection was underway, the OFBwas given a free pass.
A welcome signal?
This development may come as a welcome signal for domestic private defence players, especially those aiming to build and sell land defence systems.
As reported in January this year, the ministry of defence was back then planning to kill competitive tendering for a Rs 5,000 crore project to upgrade the Army’s 1,500 BMP-2 infantry combat vehicles, in a move that defence expert Ajai Shukla had described as "a negative signal that will resonate discouragingly through India’s private defence industry". Instead, the project was slated to be gifted to the OFBwithout competition.
Capable private firms like L&T, Tata Motors, the Mahindras, Reliance Defence, and Alpha Design Technology Ltd, which were entrusted with designing, developing, and manufacturing an FICVfor the Army under a "Make in India" contract, were eliminated, without explanation, from the relatively simple task of upgrading the BMP-2 to grant it a lease of life until the FICVenters service.
Back then, private defence firms had decided to fight to remain in the fray. Industry chamber Ficcihad written to the MoD requesting permission for industry to present its case at a crucial meeting of the Services Capital Acquisition Plan Categorization Higher Committee, which would rule on who would upgrade the BMP-2.
However, in July this year, defence publication Janes reported that the MoD had approved a Rs 2,400 crore upgrade project for 693 of the Army's BMP-2/2K Sarath infantry combat vehicles.
According to the report, the Defence Acquisition Council, headed by then defence minister Arun Jaitley, awarded the contract to Bharat Electronics Limitedand the OFB, in a move that industry sources said contravened the MoD's own defence procurement policies that mandate competitive bidding for the acquisition process.
Sitharaman gives Army's delayed future combat vehicle project a push
The backbone of the Indian Army’s infantry combat vehicles is the Russian-designed BMP (‘Sarath’ BMP-II) series which are being made by Ordnance Factory Board (OFB) since its induction in 1980. Approximately, 1900 ICVs BMP-2/2K are in service with the Indian Army and are likely to remain operational till 2017. The Indian Army was worried about its operational capability, particularly in terms of rapid deployment post the 2017 scenario. Thus, the FICV project was a strategic and critical programme which would define Indian Army’s mobility, deployability and lethality in the future to come and its ability to execute its proactive strategy.
The FICV project was approved in 2008, but had seen little progress since then. By mid-2013 the Futuristic Infantry Combat Vehicle Request for Proposal (RFP) had been withdrawn and refomulated. Armored vehicle manufacturers were out in force at DefExpo 2016, lured by the massive Future Infantry Combat Vehicle (FICV) program for the Indian Army. Under FICV some 2,610 vehicles would replace in-service BMP-2/2K Sarath IFVs beginning in 2022.
Expressions of interest in the resurrected Rs. 65,000 Crore ‘Make in India’ project were lodged by six contenders in mid-February: TATA Motors, Larsen & Toubro (L&T), Mahindra Defence, TATA Power SED (with Titagarh Wagons), Reliance Defence and the Ordnance Factory Board (OFB; joint venture with Russian MBT Manufacturer - Uralvagonzavod). The government would provide 80% of development costs for two vendors for the 20 tonne tracked and amphibious IFV. Two development agencies will be shortlisted, and the shortlisted vendors will build one prototype each within 24-36 months.
The FICV project initially envisaged 70:30 allocations to the winner and the runners up of the contract with an 80:20 funding distribution by the Government and industry respectively. The Army identified a need of nearly 2600 ICVs over 20 years with the following specifications:
- a)Weight of around 20 tonnes so that it can be transported by air and other means
- b)Strike power of a 45 tonne Main Battle Tank (MBT) including a rapid fire cannon, a 7.62 mm machine gun, grenade launcher and an anti-tank missile
- c)To be operated by a three man crew consisting of the commander, gunner and driver with an additional capacity to carry seven fully equipped infantrymen
- d)Fully amphibious and all terrain capability for high mobility to keep pace with armour
- e)Buy and Make (Indian) category, open only to domestic firms
The MoD completed the field and facility visits of companies it had shortlisted in February 2011. Sources claimed it had asked for assurance of overseas transfer of technology (ToT). Also, the Centre was particular that the execution of the project lie in the hands of a domestic firm, although the need for foreign collaboration is almost a 'mandate'. The Centre was keen on firms with foreign collaborations/tie-ups and that they would have an edge over the others as the project would require high precision. US defence major General Dynamics was said to be in the fray looking for possible tie-ups with Indian firms to bag the deal. The US firms competing for the other major defence contracts in India - the $10 billion medium multi-role combat aircraft (MMRCA) for the Indian Air Force lost to their European competition.
Mahindra Defence Systems in partnership with BAE Systems, Larsen Toubro & company also works on foreign partnerships. Company Tata Motors is also trying to find a foreign partner after deal with Rheinmetall has reached a deadlock due to the Indian blacklist its Swiss subsidiary. State-owned Ordnance Factory Board is also participating in the project.
The nearly $10 billion Indian Army’s Futuristic Infantry Combat Vehicle (FICV) project was slated to be the largest indigenous defense program. The FICV project was classified under the "Buy & Make” category mentioned in Defence Procurement Procedure (DPP-2011). The vendors for the Indian Army’s FICV project were shortlisted on the basis of technical, functional and commercial aspects, and only local Indian firms could bid. However, local firms could opt for technology tie-ups with foreign companies. It would help develop a whole eco-system of small and medium sized companies as suppliers to the winners of the contract. The FICV development would provide a big boost to India’s pursuance of self-reliance and indigenisation in the form of a robust domestic defence industrial base.
At the 6th International Land and Naval Systems Exhibition, also called DEFEXPO India 2012, held at Pragati Maidan in New Delhi from March 29 to April 1, Tata Motors displayed the scaled models of its concept futuristic infantry combat vehicle (FICV), including the turret. In addition, the proposed layout of the production facility was also displayed. Tata Motors is one of the four Indian companies which has been issued the Expression of Interest (EoI) by the Indian Army for the FICV, a ‘Make Indian’ project. The company has accordingly responded to the EoI based on indigenous design and development in association with key technology partners, and submitted its response in October 2010.
Two short-listed companies were to make an FICV prototype, and after field trials of the prototype, the winning company would produce up to 2,600 FICVs. After nearly two years of discussions, no final decision was made about which companies would participate. The Defense Ministry had selected state-owned Bharat Earth Movers and a consortium of Larsen & Toubro, Mahindra Defense and Tata Power, but former Indian Army chief general, V.K. Singh, questioned the ability of the Indian companies to take on such a big project.
In December 2012 Russia offered to transfer BMP-3 combat vehicle technology to India if India cancelled its project, as India's its homemade Futuristic Infantry Combat Vehicle (FICV) can be commissioned no earlier than in ten years’ time. Russia offers India to buy BMP-3 infantry fighting vehicles instead of further implementation of its stalled project for the development of such a vehicle. The Indian Defence Ministry wanted to produce the BMP-3 under the license since this has a great sense because India would be able to start producing a similar vehicle no earlier than ten years. Russia offers India to buy BMP-3 infantry fighting vehicles instead of further implementation of its stalled project for the development of such a vehicle. The Indian Defence Ministry wanted to produce the BMP-3 under the license since this has a great sense because India will be able to start producing a similar vehicle no earlier than ten years.
By June 2013 it appeared that the $10 billion Futuristic Infantry Combat Vehicle (FICV) had been shelved, with the Indian Ministry of Defense instead accelerating the upgrade of its Russian-made BMP-2 infantry combat vehicles, and issuing tenders to buy 2,000 engines for the program. The Indian Army’s more than 1,500 BMP-2s would be upgraded at a cost of more than $1.2 billion over three to five years, under a program that received formal MoD clearance in May 2013. Though this move did not necessarily shut down the homegrown FICV project, it was less likely to come to fruition. The upgrade would improve observation and surveillance, night-fighting capability and fire control, and would provide an improved anti-tank guided missile system and 30mm automatic grenade launcher.
The tender for the purchase of 2,000 engines to power the upgraded BMP-2 was sent to domestic auto majors Mahindra & Mahindra, Tata Motors, Force Motors, Ashok Leyland, Maruti Udyog and Crompton Greaves, and to MTU of Germany, Thales of France and Rosoboronexport of Russia. The Army required engines able to generate 350 to 380 horsepower and are easy to maintain and operate in extreme weather conditions. The existing engine of the BMP-2 had 285 horsepower and is not suited for cross-country mobility. This tender purchase 2,000 engines for the upgrade was cancelled because none of the domestic vendors fulfilled the engine’s requirements. Now a global tender is likely to be issued for the engines.
India will not shelve its homegrown $10 billion Futuristic Infantry Combat Vehicle (FICV) program in favor of advanced Russian BMP-3 combat vehicles. The decision was conveyed to the Russian side at the 18 November 2013 meeting of the India-Russia Inter-Governmental Commission on Military Technical Cooperation held in Moscow.
India’s Mahindra Defence Systems tied up with BAE Systems, Larsen & Toubro was working on overseas tie ups, and Tata Motors was also working to connect with overseas companies after its tie up with Rheinmetall stalled following the blacklisting of the German company. State-owned Ordnance Factories Board was also in the race. The MoD will shortlist two competitors to develop their prototypes, which will be put to trial.
India cleared a bulk of defense projects worth $13 billion in a bid to boost the country's national defense preparedness, the Indian Defense Acquisition Council (DAC) said 25 October 2014. The DAC decided to buy 362 infantry fighting vehicles at a cost of 662 crore rupees.
A consortium of three defense companies, "Tata Motors", "Bharat Forge" and "General Dynamics Land Systems" will develop and manufacture an infantry fighting vehicle of the future. The customer is the defense department of India. The cost of the project is estimated at $ 10 billion. This was reported in March 2016. Development and production will take place on the territory of the Indian state. At the same time, the share of foreign developments will not exceed 30%. It is assumed that the final product will be compact, light and transportable through the air. The car will be able to overcome water obstacles and carry up to 8 people in the landing. As weapons it is planned to use long-range anti-tank missiles. The new BMP will be designed to replace more than 2,000 infantry combat vehicles of Soviet and Russian production that are in service with this country.
Futuristic Infantry Combat Vehicle (FICV)
========================================================================================
============================================================================================================
After 5-year delay, tender issued in Rs 50,000-cr Future Infantry Combat Vehicle project
Defence ministry hands an expression of interest to representatives of 10 Indian companies
Ajai Shukla | New Delhi Last Updated at July 16, 2015 23:40 I
After five years of delay, the army's proposal to build a "Future Infantry Combat Vehicle" (FICV), an armoured vehicle for carrying infantrymen into battle, has been resuscitated on Thursday.
The ministry of defence summoned representatives from 10 Indian companies and handed each an expression of interest (EoI), which asks for proposals for building a FICV that will eventually replace the army's 2,600 BMP-2 infantry carriers for an estimated Rs 50,000 crore. The EoIs were issued to Mahindra; Bharat Forge; Larsen & Toubro; Punj Lloyd; Tata Power; Tata Motors; Pipavav Defence; Rolta India; Titagarh Wagons, and the Ordnance Factory Board(OFB). They have been given 90 days to respond to the EoI with detailed proposals. This will involve forming consortia with Indian and foreign vendors, and conceiving and proposing the design of an FICV that would best suit the army's requirements.
Two vendors will be shortlisted, and they will then evolve and submit a detailed project report (DPR), comprising of a detailed technical and financial proposal. The better design will be chosen by an "integrated project management team" (IPMT), comprising of experts from various defence ministrydepartments.
This is the second time the FICV project has been launched under the "Make" category of the Defence Procurement Procedure of 2008 (DPP-2008). An EoI issued in 2010 to four vendors (L&T, Tata, Mahindra, OFB) evoked responses, but was cancelled in 2012 because the defence ministrycould not decide on the parameters for short-listing the two winning vendors.
With the ministry taking three years to re-issue the EoI, the FICV project has lost five years already.
The "Make" category involves going to Indian industry to develop "high technology, complex systems". Under this, the defence ministrywill funds 80 per cent of the cost of developing the two FICV prototypes, with short-listed vendors paying the remaining 20 per cent.
There is apprehension that issuing the EoI to so many prospective vendors has muddied the waters, making it difficult for the IPMT to down-select two winning proposals. "In 2012, the defence ministrywas unable to select two winning proposals out of four. It will have an even more difficult time selecting the winners from 10. They should have been more discriminating in issuing the EoI," says an executive from one of the companies involved.
There is surprise also that the EoI has been issued under the DPP-2008, even though DPP-2013 currently operates and DPP-2015 is being finalised. "The army obtained the ministry's acceptance under DPP-2008, so they are sticking with that, even though there are much more enlightened rules operating now. This needs to change," says a prospective vendor.
The FICV has been conceived as a multi-role platform that must perform three roles. It must be a battle-taxi for the infantry to keep pace with armour (tanks) in advance. Second, the guns on board provide fire-support to assaulting infantry after they dismount and charge at the enemy. Third, and most ambitiously, the FICV should hold its own on the mechanised battlefield, even against heavily armed tanks.
The FICV is required to have amphibious capability, allowing it to cross canals, rivers and stretches of sea; it must be air portable, i.e. capable of being transported in an aircraft's cargo hold, or slung under a helicopter with chains. It must fire anti-tank missiles, and be armed with a cannon and machine guns that are operated through state of the art sensors and all weather surveillance devices.
After 5-year delay, tender issued in Rs 50,000-cr Future Infantry Combat Vehicle project
=============================================================================================================
Sitharaman gives Army's delayed future combat vehicle project a push
The MoD is considering pushing the deal through under the Strategic Partnership Policy
BS Web Team | New Delhi Last Updated at September 22, 2017 16:44 IST
The $12-billion project to procure 2,300 Futuristic Infantry Combat Vehicles(FICV) for the Indian Army, which has been held up for over a decade, has received a fresh push from Defence Minister Nirmala Sitharaman, who took charge of the ministry less than a month ago, reported the Hindu Business Line.
According to the report, apart from the state-owned Ordnance Factory Board (OFB), which has been nominated for the project, Larsen & Toubro (L&T), Tata Motors, Reliance, Mahindra, and Tata Power SED-Titagarh Wagons are also in the race. All these firms had responded to the expression of interest (EoI) in 2015.
The financial daily reported that Sitharaman has sought details of the project and that an informal meeting was held on Tuesday. Further, citing sources, the report said that the matter would come up before the Defence Procurement Board on September 26. The minister, according to the report, may also bring up the project when she meets US Secretary of Defence James Mattis, who will come to India on a two-day visit later in September. On the other hand, Russia, the report added, is also keen on clinching the deal through the OFB.
With some critical technologies related to the project slated to be sourced from foreign firms and global defence majors like General Dynamics, Lockheed Martin, BAE Systems, and Rheinmetall eyeing the deal, the defence ministry, according to an anonymous official cited by the report, is considering pushing the deal through under the Strategic Partnership Policy (SPP). According to the official, the SPP route is viewed as "an easier and cleaner way" by many within the defence industry.
The SPP aims at creating capable defence manufacturers in the private sector, to compete with the DPSUs and Ordnance Factories that have historically dominated defence manufacture in India. The policy requires private firms chosen as strategic partners to enter technology partnerships with nominated global original equipment manufacturers and jointly bid for contracts to build aircraft, helicopters, submarines, and armoured vehicles for the military.
Back in January 2016, the defence ministry had announced that while the private sector companies would compete to develop the FICV, the OFBwould be nominated without competing as a third development agency.
The ministry's EoI, which invited ten companies on July 16, 2015, to submit proposals to develop the FICVunder the "Make" procedure, specified that two development agencies would be chosen. However, even as that competitive selection was underway, the OFBwas given a free pass.
A welcome signal?
This development may come as a welcome signal for domestic private defence players, especially those aiming to build and sell land defence systems.
As reported in January this year, the ministry of defence was back then planning to kill competitive tendering for a Rs 5,000 crore project to upgrade the Army’s 1,500 BMP-2 infantry combat vehicles, in a move that defence expert Ajai Shukla had described as "a negative signal that will resonate discouragingly through India’s private defence industry". Instead, the project was slated to be gifted to the OFBwithout competition.
Capable private firms like L&T, Tata Motors, the Mahindras, Reliance Defence, and Alpha Design Technology Ltd, which were entrusted with designing, developing, and manufacturing an FICVfor the Army under a "Make in India" contract, were eliminated, without explanation, from the relatively simple task of upgrading the BMP-2 to grant it a lease of life until the FICVenters service.
Back then, private defence firms had decided to fight to remain in the fray. Industry chamber Ficcihad written to the MoD requesting permission for industry to present its case at a crucial meeting of the Services Capital Acquisition Plan Categorization Higher Committee, which would rule on who would upgrade the BMP-2.
However, in July this year, defence publication Janes reported that the MoD had approved a Rs 2,400 crore upgrade project for 693 of the Army's BMP-2/2K Sarath infantry combat vehicles.
According to the report, the Defence Acquisition Council, headed by then defence minister Arun Jaitley, awarded the contract to Bharat Electronics Limitedand the OFB, in a move that industry sources said contravened the MoD's own defence procurement policies that mandate competitive bidding for the acquisition process.
Sitharaman gives Army's delayed future combat vehicle project a push
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