Military modernisation: India clears defence projects worth $13.1b

Proposals approved include Rs500b tender for six locally-built submarines

NEW DELHI:

The Indian government on Saturday cleared long-delayed projects worth $13.1 billion to modernise the nation’s ageing Soviet-era military hardware and boost its domestic defence industry, a report said.

The move underscores the desire of the government led by Prime Minister Narendra Modi to update the country’s military as it looks to defend itself, especially after recent deadly border clashes with Pakistan and a tense stand-off with Chinese troops.

The Defence Acquisition Council on Saturday approved defence procurement proposals worth $13.1 billion, many of which were longstanding, at a meeting chaired by Defence Minister Arun Jaitley, the Press Trust of India (PTI) said. Defence ministry officials were not immediately available for comment.



The ruling Bharatiya Janata Party has been pushing for greater indigenisation of the military industry as India imports around 70% of its defence hardware.

In August, Modi urged India to build up its military might to the point that no other country ‘dare cast an evil eye’ on the country. He also said that India had to stop relying heavily on defence imports and focus instead on local research, design and manufacture.

In line with that, among the major proposals to receive approval were a Rs500 billion tender to indigenously build six submarines for the navy and purchase 8,356 Israeli guided missiles as well as 12 Dornier aircraft, PTI said citing defence ministry officials.

Modi’s new government has raised the foreign investment cap on India’s defence industries to speed up modernisation of the military.

Published in The Express Tribune, October 26^th, 2014.