April 03, 2002

'33'

CLARIFICATION ON PROCUREMENT OF MISSILE

    This is with reference to recent media reports on procurement of missile by Indian Navy. The reports bapparently have presented a one sided version. The clarification by this Ministry is as follows: - It is wrong to say that anti-aircraft Igla missiles
were imported even though sufficient Strella anti-aircraft missiles were available with the Navy. Lack of Acoustic Miss Distance Indicator capability of our ships was a hard reality and Igla missiles were procured to augment the last ditch, hard kill terminal
defence of ships for engaging the hostile aircraft and anti ship missiles. Procurement of 100 Igla missiles from Russia had to be resorted to as the Strella missiles held in the Indian Navy's inventory were life expired and no Igla missiles were held with Indian Navy. 50 Igla missiles were received from the Army in Jun 2000 and the agreement for procurement of Igla missiles from Russia was signed on Jul 02, 1999.  With regard to the import of Naval Missiles on a single tender basis it is clarified that the missile had already been selected by the Army in accordance with laid down procedures and its suitability into the Navy was subsequently established. Further, due to the post Pokhran sanctions, it was not feasible to negotiate with other suppliers, and therefore, no alternative source existed.

    It is also clarified that contract for only 100 missiles was finalised and not for 104 as mentioned. With reference to the higher price paid by the Navy in comparison to the price paid by the Army, it is clarified that the buyer may have to pay more if there
is an urgency should there be no alternative. The price paid in this case is attributable to absence of any alternative in view of the post Pokhran sanctions and operational necessity of the Kargil operation.  It is incorrect to say that while Navy had projected a long-term requirement for 240 anti-aircraft missiles during the ninth plan even though it had 312 of these missiles still in stock. The existing stock of Strella missiles had life expired over a decade and half ago. It would be incorrect to consider life expired as part of combat stock. The Navy had therefore no portable anti-aircraft missile in its inventory. Besides, one of the over riding considerations in selection of Igla was its superiority in capability, performance, trials conducted at sea and also future in-house production at Bharat Dynamics Limited. It may also be mentioned that no Igla missiles were held with Indian Navy at the commencement of Kargil operations. These missiles were made available to the Navy from the Army only in June 2000.