Union Defence Ministry on 25 October 2014 cleared the deal worth 8000 crore rupees to buy anti tank missiles from Israel. The decision was taken at a meeting of the Defence Acquisition Council (DAC) which was headed by Defence Minister Arun Jaitley.
Under the deal, India will buy at least 8000 Spike missiles and more than 300 launchers in a deal worth 32 billion rupees.
Twelve Dornier aircraft will also be bought for the navy and 362 infantry combat vehicles. The council also agreed to go ahead with locally build six submarines in collaboration with a foreign partner in a project worth 50000 crore rupees.
It also includes acquiring 1768 critical rolling stock - open and closed wagons for transport of military equipment at a cost of 740 crore rupees.
Under the deal, the union Ministry picks the Spike anti tank missile over the Javelin missiles of the US.
Reason for rejecting Javelin Missiles
Union Ministry decided against the US offer for three reasons:
First, the extent of Technology Transfer to the Indian counterpart Bharat Dynamic wasn't clear;
Second, the cost of the Israeli missiles was cheaper than the US missile and
Third, canceling the Israeli deal at the last moment would have sent wrong signals to the international community.
Spike versus Javelin missiles
Spike is an Israeli man-portable, fire-and-forget anti-tank guided missile and anti-personnel missile with a tandem-charged heat warhead. It locks on to targets before shooting. It is produced by Israel's Rafael Advanced Defence Systems.
The Javelin weapons system is built by Lockheed Martin Corp and Raytheon Co. Javelin was developed and produced for the U.S. Army and Marine Corps by the Javelin Joint Venture between Lockheed Martin in Orlando, Florida and Raytheon in Tucson, Arizona.
The other proposals cleared by the DAC include manufacturing six conventional submarines worth over 50000 crore rupees. The government aimed at manufacturing all six submarines in the time frame of a year.
These submarines will be Air Independent Propulsion (AIP) capable that will enable them to stay underwater for longer and will have features including stealth and attack cruise missiles.
Allotment of submarines
A committee will be set up by the DAC to decide on the shipyards that will issue Request for Proposal (RFP) for these submarines. The committee will study both public and private shipyards over the next 6-8 weeks. All six submarines will be made in one shipyard.
The Request for Proposal (RFP) will, however, be open for compliant yards.
Further, the Dornier aircraft will be built by the Bangalore-based defence public sector unit Hindustan Aeronautics Limited at a total cost of 1850 crore rupees. Dorniers are used for maritime surveillance and the navy has a fleet of 40 of these aircraft.
India is the world's largest arms buyer. It will invest as much as 250 billion US dollar in upgrading its Soviet-era military hardware and close the gap on strategic rival China.
When: 25 October 2014
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