India may replace global VSHORAD tender with domestic

VSHORAD launch

India's $1.5 billion global tender for man-portable very short-range air defense (VSHORAD) systems is facing cancellation for the second time since it was launched in 2010 - this time in favor of a domestic-companies-only competition, a Ministry of Defence source said.

While the flight trials of the competing systems were completed in 2013, the tender may be cancelled because competitors MBDA, Rosoboronexport and Saab in the past have claimed there was a lack of transparency in the procurement process, the MoD source said. The government is weighing a new VSHORAD tender in the Buy and Make (India) category, restricted to Indian companies, the source said.

For the 2010 tender, Russia's Rosoboronexport fielded the Igla-S, Swedish company Saab offered the RBS 70 NG and France-based MBDA offered the Mistral system for trials.

The procurement process was also halted in 2012 as the MoD studied a proposal from US company Raytheon to supply the Stinger man-portable VSHORAD on a government-to-government basis. However, negotiations yielded no agreement because of issues relating to the transfer of technology.

Since the tender involves technology transfer, Saab had teamed with ndia's state-owned Bharat Electronics, while MBDA forged ties with privately owned Indian company Larsen & Toubro. Rosoboronexport chose to field the Igla-S system on its own.

However, should the government opt to restrict the tender to domestic companies, "fresh teaming up will be made as the private-sector defense sector has seen major new entrants like Pipavav Defence, Bharat Forge and Punj Lloyd," according to Mahindra Singh, a retired Indian Army major general.

The Indian Army is looking for VSHORAD systems to replace its aging Russian-made Igla air defense systems and wants a man-portable system weighing less than 25 kilograms with fire-and-forget capability. Other Army requirements include a capability of engaging aerial targets day or night with an effective range of 6 kilometers.

Of the 5,175 missiles and associated equipment sought under the 2010 tender, 2,315 missiles were to be delivered fully assembled and 1,260 partially assembled, with 1,000 missiles to be assembled entirely in India and 600 to be made at Indian facilities. Associated equipment includes launchers, sensors, thermal imaging sights, and command-and-control units.

But it isn't known what requirements might be included if a fresh tender for VSHORADs is issued to domestic companies, the MoD source said.

"There is an urgent need for VSHORAD systems and the order is likely to increase considering that even the Indian Air Force has a requirement of these systems," Singh said.