Private firms miss out on Rs 2,400-cr tank upgrade deal

Defence ministry gives BEL, OFB the contract, ignores Make in India norms of level playing field

The defence ministry on Saturday ignored its own acquisition rules and policies by awarding the public sector Ordnance Factory Board (OFB) and Bharat Electronics (BEL) a contract for upgrading 693 BMP-2 infantry combat vehicles (ICVs) on a “single-vendor basis”, casting aside competitive tendering. 

“The ministry approved the upgrade and modernisation of armoured fighting vehicles in the ‘Buy Indian (Indian designed, developed and manufactured)’ category, at a cost of Rs 2,400 crore,” said authoritative defence ministry sources after a meeting of the apex Defence Acquisition Council. He confirmed the upgrade would be carried out at the Ordnance Factory, Medak, in Telangana.