Procurement of 1000 engines for T-72 tanks worth Rs 2,300 crore cleared

The defence ministry on Tuesday approved the procurement of 1000 engines of 1000 BHP for fitment in T-72 tanks of the Army worth Rs 2,300 crore under the “Buy & Make” category, a government statement said.

Post transfer of technology most of these engines will be manufactured by Ordnance Factories Board.

The engines will enhance mobility, agility and acceleration of T-72 tanks making them more versatile and effective in the battlefield.

The purchases were cleared by an acquisition council headed by defence minister Nirmala Sitharaman. The council also approved changes in the defence procurement procedures to accelerate purchases, including limiting repeat orders to within five years after date of completion of warranty of final delivery in the previous contract.

Repeat Order provisions have also been extended to procurements by other services like the Central Armed Police Force and Border Roads Organisation, the government statement said.

The amendments also include permissions to commence with benchmarking of cost for equipment immediately on receipt of the trial report in the service headquarter and legislating provisions for Exchange Rate Variations when pursuing procurement with an “option clause.”

First Published: Sep 26, 2018 00:04 IST