The making of the muchawaited Fighting Infantry Combat Vehicles (FICV) will be a game-changing lift for the defence business of most of the companies
It is game on for Indian Army's Futuristic Infantry Combat Vehicle programme, in its second attempt. The project is currently in progress, despite speculations that a fresh Expression of Interest (EoI) - the third attempt if it happens - will be issued by the Indian Army for the estimated $8.75-billion programme.
The reason for this speculation is justified. The 2015 EoI, for which the deadline to submit offers had ended in midFebruary 2016, was issued under the 2008 Defence Procurement Procedure. The 2008 DPP envisages a requirement for 30 per cent indigenisation for a 'Make' project. However, under the 2016, which was promulgated in April 2016, envisages a 40 per cent indigenisation, which is a win situation for Indian companies competing in the FICV programme.
Now, the amended DPP-2016 has not only been notified, relevant chapters have also been uploaded on the Ministry of Defence website. The MoD had invited 10 companies in July 2015 to submit proposals to develop the FICV, with specification that two development agencies would be chosen. They included Mahindra, Bharat Forge, Larsen & Toubro, Punj Lloyd, Tata Power, Tata Motors, Pipavav Defence, Rolta India, Titagarh Wagons and Ordnance Factory Board.
The FICV project was approved in October 2009, and since then private sector is not only looking forward to participate but have also put in place the designers and technical facilities needed for developing the complex FICV. The initial EoI issued in 2010 was cancelled in 2012 after 20 months as it did not define the criteria by which the winners would be selected. In 2015, the Army re-issued the EoI after a gap of three years to 10 Indian companies and had sought responses by mid-January 2016. For the project, the Indian companies have been encouraged to form consortium (maximum five) and tie up with as many foreign companies to bring home latest technologies on a licence basis to strengthen indigenous know-how.
This story is from the November 2016 edition of Geopolitics.
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This story is from the November 2016 edition of Geopolitics.
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