Anti-Tank Missiles Procurement: After Five Years Of Trials, MoD Decides To Scrap $500 Million Deal With Israel

After five years of trial and tender, the Ministry of Defence (MoD) has decided to scrap a $500 million deal for the procurement of Spike Man-Portable Anti-Tank Guided Missile (MPATGM) for the Indian Army from Israel, the Indian Express has reported.

The deal was expected to be signed after the two sides concluded price negotiations last year and inaugurated a missile sub-systems manufacturing facility based near Hyderabad in August 2017.

Rafael Advanced Defense Systems, the manufacturer of the missile system, has denied the report, saying the deal 'will continue as planned'.

According to the Indian Express, the ministry has decided to cancel the deal to give a boost to an indigenous anti-tank missile being developed by the Defence Research and Development Organisation (DRDO).

“DRDO has successfully produced the Nag and Anamika ATGMs. It is confident about providing the Army with an MPATGM of 3rd generation missile technology, at par with Spike, within three to four years. It won’t also need any transfer of technology,” the daily quoted a source as saying.

The decision, which is in line with Prime Minister Narendra Modi’s push for indigenisation of equipment for the armed forces, comes soon after the government reportedly asked the air force to scrap its plan to procure a foreign single engine fighter and focus on Tejas.

The decision was taken despite the Army headquarters highlighting “the operational urgency of the equipment”, saying that the Israeli MPATGM system will give forces deployed on the Line of Control “a major capability impetus”.

The proposal to buy 321 ATGM launchers and 8,356 missiles, with 30 per cent offsets and a transfer of technology clause, was accepted by the MoD in 2009. The procurement plan, however, met the same fate as other accusation programs started under the Congress led-United Progressive Alliance government.