L&T, BEL consortia set to get Rs. 40,000-crore project.

The National Democratic Alliance (NDA) government is poised to award its first 'make' contract, in which the Ministry of Defence (MoD) will fund two Indian consortia in developing a Rs. 40,000-50-000 crore 'battlefield management system' (BMS). This digital wireless network will interlink soldiers and battlefield sensors through voice and data channels, providing a common battle picture to each jawan.

Business Standard has learnt the MoD has selected two consortia from the dozen companies invited to bid in November 2013. One is a consortium between Larsen & Toubro (L&T) and Tata Power, and the other between Rolta and Bharat Electronics Ltd. (BEL). These winners - termed development agencies - could be announced any day.

Under the 'make' category of the Defence Procurement Policy of 2013 (DPP-2013), both consortia will develop separate prototype BMS systems, with the MoD reimbursing 80 per cent of the expenditure. A special MoD 'integrated project management team' (IPMT) will select the better prototype, and both consortia will then bid for the contract to mass-produce the BMS for the military.

while development agencies are chosen on the basis of their technology and indigenisation plans, the contract to mass-produce the BMS will be awarded to the lower bidder.

The 'make' category procedure mandates an Indian company must lead a project, though it could have foreign partners. At least 30 per cent of the system that is built must be indigenous.

BS