PPP for ICVs in India

The MOD/India has thrown open its doors for private players to bid for a project to build the Future Infantry Combat Vehicle(ICV).

The Army needs about 2,600 ICVs over 20 years. All four bidders—Tata Motors, Mahindra Defence Systems, L&T and the Government-owned Ordnance Factory Board (OFB)—have presented their designs. The evaluation is set to move to the final phase within a month. The Rs 50,000-crore order is likely to be divided between the winner and runner-up.

Two companies will be shortlisted and asked to build one prototype each—the manufacturing of these will be funded 80 % by the Govt.

Challenges

• The systems integration of the FICV is likely to be a big challenge. The platform, the software and electronics have to be integrated for the vehicle to function well. Indian companies have little experience in this.

• Keeping it local. All the four bidders are likely to have foreign partners. The fear is that the high-end work will be done abroad defeating the purpose of the exercise. Russian aircraft have been assembled in India for decades—yet the design and development of every new generation plane was done in Russia.

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