Big Brother of Arjuna is coming with some heavy punch -----An Arjun offshoot
BEML all set to bag Rs 968 cr defence order
PSU defence and earth moving equipment maker Bharat Earth Movers (BEML) is close to bagging a Rs 968 crore defence order. The company says, it has completed price negotiations for the manufacture of 100 Bhim T6 self-propelled guns and it expects to clinch firm orders in the next three months.
BEML chairman V R S Natarajan said, the Arjun Main Battle Tank variant 155mm, 52 calibre artillery gun system will be manufactured in collaboration with LIW Denel South Africa. While BEML will make the undercarriage and the hull, the turret and the gun will be sourced from Denel. According to the agreement, Denel will offer the technology free to BEML, he added.
BEML expects further orders after the delivery of the first batch. This, officials said, will expand the portfolio to tanks and guns. Incidentally, the order follows a Rs 1,000 crore three-year supply deal in March this year for 228 armoured recovery vehicles.
The company said, these diversifications along with the foray into high speed rail wagons and underground mining equipment — thanks to the acquisition of underground equipment manufacturing workshop of Bharat Gold Mines in Kolar — will assist it reach the Rs 5,000 crore turnover by 2013, marking a 12 per cent average year-on-year growth till then. For high speed rail wagons, BEML has signed up with Rotem, Korea. According to the agreement, BEML will pay upfront $4 million to Rotem and 3 per cent royalty for the 15-year collaboration.
Officials said, for now the company has a comfortable order position amounting to Rs 2,015 crore. Besides the T6 order, the company is on course to supply more Tatra army trucks and rail wagons. While the Tatra order is expected to contribute Rs 300-400 crore, rail wagons are expected to rake in another Rs 100 crore.
Experts slam DENEL guns deal for Arjun
Bharat Earth Movers Limited has signed a joint venture with South African gun manufacturer DENEL for co-producing 100 artillery guns worth Rs 2000 crore.
The DENEL guns will be fitted onto Arjun tanks, giving the Indian Army some of the most expensive guns in the world. The Arjun tank was made in India, but it was long resisted by the army as unfit for service. But they will now be reinvented at a cost of over Rs 2000 crore.
As per the joint venture, 100 artillery guns will be carried on Arjun. "The 155 mm barrel gun system is based on Arjun variant tank. The bottom portion of the hull and the under carriage will be made by us. The top portion will be provided by South Africa," said V R S Natarajan, MD, Bharat Earth Movers Ltd.
But it's a hybrid experiment that's not met with success anywhere in the world. The Indian Army has also had deep reservations about the expensive and ineffective Arjun tank.
Experts say that the Rs 2000 crore should instead be spent on equipment for jawans in operations in Jammu and Kashmir and the Northeast.
"There is an emphasis on heavy equipment, on strike corps forces, on self-propelled artillery, on tanks etc. I think the priority is misplaced," said Lt Gen V R Raghavan, Ex DG Military Operations.
After the Bofors deal ran into controversy in the mid 1980s, the army has spent over fifteen years in selecting another gun. But now even before the ink is dry on the deal, insiders are grumbling against the use of expensive DENEL guns to provide legitimacy to the Arjun tank.
LOL!!! another disaster in the making