Defence ministry clears proposals worth Rs.4,444 crore

The defence ministry Wednesday cleared procurement proposals worth Rs.4,444 crore, ministry sources said.

The proposals were cleared by Defence Minister Manohar Parrikar-headed Defence Acquisition Council (DAC), the apex decision-making body in the ministry.

The proposals include one for acquiring four survey vessels for the navy worth Rs.2,324 crore.

A decision on a joint bid by Tata Sons and Airbus to replace the Indian Air Force's Avro transport fleet, a project worth Rs.12,000 crore, was however deferred.

The DAC also cleared an upgradation along with annual maintenance contract of the Samyukta electronic warfare system for the army at an estimated cost of Rs.1,682 crore.

The sources also said a proposal for heavy drop system P-7, which is a platform for dropping heavy vehicles with a parachute, was also cleared. The amount sanctioned for the project was Rs.400 crore.

The sources said the decision paves the way for issuance of a fresh Request for Proposal by the navy for four survey vessels.

An amount of Rs.36 crore was also sanctioned for buying engines for offshore patrol vessels of the Coast Guard.

On the Tata-Airbus proposal, the DAC has sought more details from the air force.

Tata-Airbus was the only bidder for an international tender for 56 transport aircraft for the air force.