Thursday, July 14, 2016

Bharat Forge Kalyani and Uralvagonzavod Sign 155mm SP Howitzer Co-production Deal


"MSTA-S" self-propelled guns. Source:mil.ru [via RIR]

General Director of the "Uralvagonzavod" corporation Oleg Sienko and the CEO of the Indian company Bharat Forge Kalyani of the Kalyani Group signed a memorandum of understanding providing for the establishment of the co-production of self-propelled artillery units (SAU) in India. It's not clear if the deal will bring the Russian gun back into contention for supplying SP 155mm howitzers to India under its artillery modernization program. [source]

The ET reported on July 1, 2016 that MoD had wrapped price negotiations with L&T for purchase of 100 guns, earmarked for deployment along India's border with Pakistan.

A contract has been finalized and will be forwarded for approval to the Cabinet Committee on Security.

The value of the contract - Rs 4,500-crore - makes it the largest to be entrusted to the industry.

L&T, along with its technology partner Samsung, will produce the guns in India at L&T's Strategic Systems Complex at Talegaon near Pune with close to 50% indigenous content.

The Indian Express reported on January 11, 2016 that MoD on December 22, 2015 opened the price bid of L&T, the only gun to qualify in the trials. Price negotiations with L&T will commence this month and are likely to be concluded in this financial year. The deal for 100 guns is estimated to cost between Rs 4,500 to Rs 5,000 crore. The contract will also have a follow-up option clause of 50 additional K9 Vajra-T guns.

The first 10 guns are to be supplied by L&T to the Army within 18 months of signing, with the balance 90 guns to be supplied in the next two years.

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