Engineering and construction major Larsen and Toubro (L&T) today announced that it has submitted a joint proposal with US defence technology firm Raytheon to upgrade India’s T-72 tanks.
According to the proposal submitted earlier this month, in which L&T is the lead contractor, Raytheon will provide infrared imaging sights and electronics to improve the tank’s target accuracy and overall system lethality, the company said in a statement.
Also, it will provide fire control system, sensors and will accomplish final integration along with customer support services. It brings along a track record of development of fire-control systems for multiple weapon systems across land, naval and air defence applications. Speaking about the tie-up, L&T Executive Vice-President MV Kotwal said the collaboration with Raytheon would also be aimed at bidding for overseas projects. “This beginning will lead to new avenues in Indian and global defence markets for both partners working together,” said Kotwal. Raytheon has reported sales of $25 billion (over Rs 1.15 lakh crore) in 2009. It has provided 20,000 thermal sights to armed forces in more than 15 countries. It has 75,000 employees worldwide. L&T shares went up 1 per cent to Rs 1,446.70 on Bombay Stock Exchange (BSE).
At present, Raytheon has a tie-up with Tata Power Strategic Electronics Division (Tata Power SED). The agreement, signed in February 2007, was designed to encourage collaboration in areas of complementary expertise and experience as a first step toward forging new relationships with a range of Indian technology companies.
L&T, which has been a major supplier of critical systems to India’s defence forces for 20 years, earns revenues of Rs 500 crore from this business. It recently announced a joint venture with the Franco-German aerospace and defence group EADS, but it hit the foreign direct investment (FDI) hurdle because of equity structure. The FDI in defence sector is capped at 26 per cent.