Thread: Murky Competition for $2B India Howitzer Order May End Soon

As noted in an earlier article today, BAE Systems Land and Armaments is offering the Bofors FH-77B05 towed 155mm artillery piece an an option for Australia's Land 17 program.

The FH-77B05 is also competing against the Israeli Soltam TIG 2002 and the South African Denel G5/2000 gun, for India's $2 billion purchase of about 400 155mm self-propelled howitzers. These weapons are intended to outrange and outshoot Pakistan's self-propelled M109 Paladin 155mm guns.

All three competitors failed to meet India's accuracy specifications in 2003 trials, but all three improved their guns to compete again in 2004. The Soltam howitzer experienced some technical issues, and the South African firm Denel is currently under corruption investigations related to the India contract. This may be particularly unfortunate for Denel, as The Times of India reports that the contract may even be critical to the firm's financial survival.

Bofors Defence AB, meanwhile, was once blacklisted by India after allegations of kickbacks in a 1987 deal during Rajiv Gandhi's regime.

US-India Defense and Strategic Affairs reports on the competition, and notes that this is expected to be one of the first large defense procurement decisions made by India's new United Progressive Alliance government. DID has noted the extreme risk-averse behaviour of India's defense procurement establishment and its effects on contract awards, however, and Defense India notes that when a competition devolves to a single-vendor solution, the practice is often to re-tender.