National / World

India has cancelled $500 mn defence deal, says Israeli arms firm


Jerusalem, Jan 3 (PTI): A top Israeli arms firm has confirmed that India cancelled a $500 million deal to develop Spike anti-tank guided missiles and expressed "regret" over the decision just ahead of Prime Minister Benjamin Netanyahu's first visit to the country.

"Rafael has now received an official notification from India's Ministry of Defence concerning the cancellation of the Spike deal," said Ishai David, a spokesman for the Rafael Advance Defence Systems Ltd.

Spike, in use by 26 countries around the world, is said to have been selected by India after a long and rigorous process and after complying with all the defence procurement regulations.

"It should be emphasised that the cancellation was made prior to the signing of the contract and despite Rafael's compliance with all the demands," the company said in a statement.

"Rafael regrets the decision and remains committed to cooperating with the Indian Ministry of Defence and to its strategy of continuing to work in India, an important market, as it has for more than two decades, to provide India with the most advanced and innovative systems," it added.

The company did not give a reason for the cancellation of the deal.

The cancellation comes days before Netanyahu's four-day visit to India starting January 14 and is likely to be taken up for discussion. Rafael's CEO would also be accompanying Netanyahu.

The company recently inaugurated its facilities in Hyderabad where the project was to be executed but company sources said that it is "designed to accommodate a number of other projects Rafael is engaged in with its Indian partners".

As per the original proposal, India had planned to acquire the ATGMs for the army at a cost of $500 million.

The Indian defence ministry has been strongly pushing for transfer of technology in procuring various weapons and other platforms from foreign defence majors as part of its broad policy initiative to encourage domestic defence industry.

Official sources in New Delhi had earlier indicated that the proposal to acquire the missile system faced hurdles when Israeli side apparently expressed reservations in ensuring full transfer of technology as per the provisions of the 'Make in India' initiative.


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Comment on this article

  • Vincent Rodrigues, Bengaluru/Katapadi

    Thu, Jan 4 2018

    Most if the countries may not agree to transfer the technical know with the export which may be the reason

    DisAgree Agree [1] Reply Report Abuse

  • Tom Cat, Mangalore

    Wed, Jan 3 2018

    India Wants an Affair When It Comes to Israel, Not a Serious Relationship.

    DisAgree Agree [5] Reply Report Abuse

  • geoffrey, hat hill

    Wed, Jan 3 2018

    Israel is likely to call back the 'Best PM in the world' title now. Rafale deal will remain intact though as Ambani is the Indian partner, Dr Subramanian Swamy's threat to resort to legal recourse notwithstanding.

    DisAgree [1] Agree [11] Reply Report Abuse

  • SMR, Karkala

    Wed, Jan 3 2018

    Why Mod government gone for purchasing 36 Rafale jets in place of 126 as originally agreed by the previous UPA government?
    The current defence minister, Nirmala Sitharaman, also did not clarify anything except terming the allegations against PM Modi ‘shameful.’
    In interview to NDTV and in another to Doordarshan in April 2015, Parrikar stressed the point of price per aircraft to be around Rs 715 crore. In some other interactions with TV journalists later, he stressed the same and repeated that the government of the day was not in a position to spend Rs 90,000 crore for 126 aircrafts. But he never bothered to clarify the logic of spending almost Rs 60,000 crore for 36 aircrafts.

    In another interaction with journalists, Parrikar said that India did not need 126 Rafale aircrafts and it would have cost Rs 1.3 lakh crore. Here too, he did not bother to clarify how he had suddenly arrived at the difference of Rs 40,000 crore from the amount he had originally stated. He himself stated on many earlier occasions that Rafale was the most superior fighter jet of the day, in its class.

    What is the personal interest of our PM in Rafale and other defence deals?
    Did the original Rafale negotiation under UPA regime actually collapse or was it a smoke screen to bring Adani group and Anil Ambani in to combat aircraft manufacturing?
    Is it wrong to think just one deal has been broken into different pieces to cater to the business interests of Mr. Modi’s billionaire cronies?
    Did the PM himself take the call on defence deals? If not who are the people behind this?
    Did a certain section of the Indian media play conduit in pushing a fake narrative against the UPA deal on Rafale?
    Till the Modi government comes out with a complete clarification with sensible reasoning and evidence, this will continue to remain as a case of sacrificing national security interests for personal gratification.
    If Augusta helicopter deal can be cancelled why not Rafael?
    Jai Hind

    DisAgree [1] Agree [8] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Jan 3 2018

    India cancelled the deal because comission was not Paid ...

    DisAgree [1] Agree [28] Reply Report Abuse

  • Hussain, Abudhabi

    Wed, Jan 3 2018

    The reason could be Patanjali ... May be Baba will invent new latest weapons using Patanjali technology

    DisAgree [1] Agree [25] Reply Report Abuse

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Title : India has cancelled $500 mn defence deal, says Israeli arms firm


 
 
 
 

 
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