Defence Ministry cancels $500 million deal with Israel firm Rafael Advanced Defence Systems Ltd, stresses to make in India
New Delhi, November 21: India decided to buy Spike anti-tank guided missile systems of around Rs 3,200 crore from Israel.
The Defence Research and Development Organisation were asked to develop the anti-tank guided missile systems for the army’s infantry and mechanized infantry units to provide impetus to the Make in India plan.
The defence ministry decided to buy 321 launchers and 8,356 missiles from the were about to be purchased from the Rafael Advanced Defence Systems Ltd firm from Israel.
#MakeInIndia: August 2017, Rafael announced the inauguration of a #missile manufacturing plant in #India. The plan was expected to start selling over 8,000 anti-tank missiles from the plant to India by 2018. Cancelled by @narendramodi @Modi #ModiRafaleScam !
— Wladyslawa (@slodka11) November 21, 2017
According to sources, Rafael deputy spokesperson Ishai David said that Rafael Advanced Defence Systems Ltd were not officially informed of any change in the decision to buy Spike missiles. The company already started the transfer of development and manufacturing knowledge as part of the program.
The Defence Research and Development Organisation would probably take up four years to develop the next-generation anti-tank guided missile systems.
The Spike missile has a capability to destroy armoured vehicles, bunkers from a distance of 2.5 km. the army is planing to equip over 400 units with the third-generation anti-tank guided missile systems systems.
After the defence ministry appointed committee that was headed by a major general to examine various aspects related to the deal, around after 10 months defence ministry decided to not buy the missiles.
India selected anti-tank guided missile systems from Israel over US defence and aerospace firm Raytheon’s Javelin system about four years ago.
At present, the Indian army is using the older Milan and Konkur anti-tank guided missile systems that was built by public sector undertaking Bharat Dynamics Limited under license from French and Russian firms.
So, Rafael came up with an alliance with India’s Kalyani Group to produce the missiles in Hyderabad.