Indian Navy Draws Up A Nearly $20 Billion Procurement Plan

As the Chinese navy continues to undergo rapid modernization with the induction of aircraft carriers, the Indian Navy’s ambitious procurement plans just got bigger. With a budget of $24.7 billion (for the next five years) in its kitty, the Navy has announced plans to induct everything from aircraft carriers to next generation submarines – all in an effort to outdo China in the event of a war. "It is actually a major cause of concern for us, which we continuously evaluate and work out our options and our strategies,” said Indian Navy Chief Admiral Joshi recently referring to the Chinese naval modernization and expansion. Earlier this year, the Indian Navy issued an RFP for 56 naval helicopters worth $900 million to top aviation majors — Boeing, Bell and Sikorsky to Kamov, Eurocopter and AgustaWestland. "The naval utility helicopters are planned for induction from 2016 (onwards)," said former Navy chief Admiral Nirmal Verma. As per the RFP, the project involves induction of the 56 choppers, three simulators, 28 spare engines and associated equipment within eight years of the inking of the contract. The Navy also plans to procure more than 75 helicopters worth $4 billion – making the tender one of the largest in the world. In 2011, an RFP for Medium Range Maritime Reconnaissance (MRMR) aircraft and the coast guard's Medium Maritime Patrol (MMP) aircraft was also issued this year with the likes of Saab and Boeing expressing their interest in the tender. In 2010, the Navy announced its plans to set up a Nuclear (Radiological), Biological and Chemical Defence training facility to train its personnel. The facility is intended to be shore based. And last year issued an RFP for 3D air surveillance radars to be fitted on warships above 3,000 tones which will facilitate 360 degree detection of hostile aircraft and choppers, Unmanned Aerial Vehicles (UAVs) and sea-skimming missiles and for 10 mechanised amphibious crafts. At least two Israeli firms, including Innocon and Blue Bird Aero systems, have expressed their interest in competing for the UAV tender. Earlier this week, the DAC (Defense Acquisition Council) gave its approval to construct six next generation stealth submarines -- Project 75I (India) -- worth $15 billion by 2020. Project 75 India will be equipped with vertically launched missiles and Air Independent Propulsion system (AIP) to increase warship's stealth capability and endurance. "DAC has accorded Acceptance of Necessity (AON) for construction of six submarines under Project-75(I). These submarines are intended to be equipped with land attack missile capability as well as Air Independent Propulsion (AIP)," Defense Minister AK Antony told Parliament. Meanwhile, the Navy has had to put on hold its plans to procure 262 missiles for Israeli Barak-I anti-missile Defence (AMD) systems to be deployed on 14 frontline warships due to a CBI investigation involved in kickbacks. The potential contract would have been worth $140 million. By Bindiya Thomas