The Centre canned plans to procure close quarter carbines from a UAE-based company and a program to import Self Propelled Air Defence systems from South Korea
The defence ministry has cancelled two arms import contracts for the army, worth over $2.5 billion, choosing domestic manufacturing instead.
The Centre canned plans to procure close quarter carbines from a UAE-based arms manufacturer Caracal and a program to import Self Propelled Air Defence systems from South Korea, according to a report by The Economic Times.
At a meeting on September 15, the Defence Ministry decided to place the contracts under the Make in India initiative, the report said.
Moneycontrol could not independently verify the story.
The meeting was chaired by Defence Secretary Ajay Kumar, and Chief of Defence Staff General Bipin Rawat was also present, The Economic Times reported.
The report did not specify under which clause the procurement of arms would continue.
The deal for close quarter carbines was being fast-tracked before it was cancelled, since the army had cited an urgent requirement, the report said.Due to representations from domestic companies offering an equivalent product for sale, and the government's recent push for Atmanirbhar Bharat, the Centre was of the view that the contracts should be cancelled, the report added.