NEW DELHI: The defence ministry has cancelled two arms import contracts for the army worth over $ 2.5 billion that were in the final stages, preferring to go for the Make in India route. In a special meeting held on Tuesday, chaired by the Defence Secretary, it has been decided that plans to procure close quarter carbines from a UAE based company and a program to import Self Propelled Air Defence systems from South Korea are being scrapped.
The meeting, which was also attended by Chief of Defence Staff Gen Bipin Rawat, concluded that the contracts will now be placed under the Make in India initiative to give a boost to the domestic industry, sources said. It is not clear under which clause the procurements would proceed but the army has projected an urgent requirement for close quarter carbines and had been processing the deal under a fast track process. As reported by ET, a view within the government was that with recent announcements on Atmanirbhar Bharat, as well as representations from domestic companies promising an equivalent product for sale, the import case needs to be cancelled.