India announces $ 3 billion tender due to insolvency of local suppliers
Despite requests from several naval officials not to cancel the purchase of four locally manufactured universal landing ships worth about $ 3 billion, the Indian Ministry of Defense is threatening to nullify the tender. This was reported by the Military Newsletter Defense News with reference to a senior Indian Navy official.
The Ministry of Defense wants to annul the results of the competition, because one of the last two applicants has faced a serious financial crisis. Considering the fact that another company was suspended from participation due to bankruptcy, this arrangement leaves only one - no alternative - participant.
Competition goes 15 years
After the initial competition was canceled in 2012, the Ministry of Defense again announced a tender in 2017. After receiving both commercial and technical applications, as well as their fivefold revaluation, the Indian MoD again threatens to close the project amid problems of Reliance Naval and Engineering Limited (RNEL), which revealed a significant debt behind it and a rejection of the debt settlement plan by a consortium of bankers.
Despite requests from journalists, MO officials declined to comment.
For the construction of the landing ships, the Indian company L&T Ltd has teamed up with Navatia from Spain, while its rival RNEL has established a partnership with the Naval Group from France. It was planned that the new Indian universal amphibious ships would be approximately 30.000-ton helicopter carriers with the possibility of delivery to the landing point of the army battalion, as well as tanks and armored personnel carriers.
- The senior representative of the Confederation of Industrial Chambers of India commented on the situation.
If New Delhi cancels the tender, this will be the second time in the last 15 years.
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