31st July, 2003
Ministry of Defence  


GLOBAL TENDERS FOR ORDNANCE FACTORY AT RAJGIR


LOK SABHA

The Global Tenders were not invited before selection of the M/s Somchem, South Africa, for the ordnance factory at Rajgir (Nalanda)

The Transfer of Technology (TOT) for production of 155 mm Bi-modular Charge System (BMCS) was negotiated along with import of BMCS for the army. Global Tender Enquiry was not issued for import of BMCS, since, in 1999 Mis Somchem was the only source for this type of ammunition.

The TOT fees have been paid to M/s Somchem, South Africa for this project. The total TOT fee is USD 13.99 million, out of which an amount of USD 11.192 million has been paid after receipt of the technology documents. There is no general policy to obtain TOT free of charge.

This information was given by the Defence Minister Shri George Fernandes in a written reply to Shri Ajoy Chakraborty in Lok Sabha today.