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Defence deals worth $25 billion scrapped in 3 years, fate of contracts worth $30 billion hangs in balance Featured

By Mukesh Kaushik 

November, 2017: Call it a push to “Make-in-India” initiative or major shift in priorities of the Narendra Modi Government, the defence deals worth about $25 billion  have been junked in the past three years and the future of major military projects estimated to be worth $30 billion is said to be hanging in balance.

These deals have been scrapped by three successive defence ministers, namely Mr Arun Jaitley, Mr Manohar Parrikar and Ms Nirmla Sitharaman.  

The biggest deal to be scrapped was the $20 billion MMRCA acquisition, which was replaced by the purchase of 36 Rafale for over $8 billion.

The latest in the series of cancelled deal was a contract worth $500 with Israel for the development of ATGM for the Indian army.

Next in the line was a Rs 6,500 cr for buying 16 multirole helicopters for the Navy from America. The deal was scrapped in January this year.

A controversial deal for the Army to procure 45,000 rifles worth around Rs 1000 cr was trashed in Oct last year.

Apart from the scrapped defence contracts, there are several major military projects running in billions are said to be in doldrums. Some of these projects are as under:

0 Procurement of the $7.5-billion futuristic infantry combat vehicle (FICV) programme for the Army.

0 Acquisition of  12 amphibian aircraft from ShinMaywa of Japan for $1.3 billion struggling.


0 Future of the FGFA project worth over $20 billion dollar not yet clear.