Business Standard

MoD handing Rs 5,000 cr BMP-2 upgrade to Ordnance Factory Board

Move set to disappoint private industry, which has one last chance tomorrow to present case

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Ajai Shukla New Delhi
On Tuesday, in a negative signal that will resonate discouragingly through India’s private defence industry, the ministry of defence (MoD) plans to kill competitive tendering for a Rs 5,000 crore project to upgrade the army’s 1,500 BMP-2 infantry combat vehicles (ICVs). Instead the project is being gifted to the Ordnance Factory Board (OFB), without competition.
 
Capable private firms like Larsen & Toubro, Tata Motors, the Mahindras, Reliance Defence and Alpha Design Technology Ltd (ADTL) are being entrusted with designing, developing and manufacturing a high-tech Future Infantry Combat Vehicle (FICV) for the army, a “Make in India” contract about to

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