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FEBRUARY-2012 ISSUE
GUEST COLUMN
Made in India
Future Infantry Combat Vehicle will be India’s Greenfield ‘Make India’ Project
By Brig. Arun Sahgal (retd)
In Indian Army’s quest for developing indigenous capability and developing next generation of armoured fighting vehicles, two projects were conceived as far back as 2007 in what can be termed as ‘Make India’ projects. One was the Future Main Battle Tank (FMBT) and the other, the Future Infantry Combat Vehicle 2017 (FICV). It is reliably learnt that FMBT project with the notional in service date of 2025 has since been shelved and the ‘Future Infantry Combat Vehicle’ (FICV), is being pursued as a unique Indian experiment of private–public partnership in the defence sector.

As mentioned, the story of this project goes back to 2007 when a feasibility study was ordered to evaluate whether the Indian industry could undertake design and development of a future ICV for India in the 20 ton range with the capability of carrying seven infantry soldiers in addition to its normal crew. The reason why this was selected to be an industry-oriented project was because of a major decision taken in by the ministry of defence that DRDO would focus its research and development effort on the projects of strategic value while the Indian defence industry would be involved in high technology projects with two specific aims; one to develop required technology base in the defence industrial sector and two, allowing enmeshing of design and development by single agency, in this case private industry who were to be responsible for erecting production facilities locally for their systems, assemblies, and components, in addition to providing any requisite engineering support for integration. Foreign assistance, if any, was envisaged at systems and sub systems level through industry import which it is believed would help India further develop indigenous capabilities through technology transfer.
Project Perspective
Post these decisions in the ministry of defence, a multi disciplinary study group were formed which developed a draft general staff qualitative requirement, listing out broad parameters of the FICV. The study group also shortlisted various Indian vendors who were in terms of their design and infrastructural capabilities appeared to have the potential for design, development and production. The vendors selected included, Mahindra Defence Systems, Tata’s, L&T and Ordnance Factory Board, later more for its production base than any design capability. Accordingly letter for Expression of Intent (EOI) based on the formulated GSQR was sent only to these four. An outcry from other vendors like Bharat Forge, Punj Lioyd of not being included was ignored.
To oversee the project a Project Team, led by the Additional Director General Mechanised Forces was constituted with members from DRDO, Finance, defence procurement and all the other related agencies. In broad terms the project entails, each of the four vendors submitting both their technical and commercial bids, which would be evaluated and from these two vendors, shortlisted. These two vendors would be required to produce five prototypes by 2015 for user trials. To ensure adequate funding, the project would be run as an 80:20 public–private partnership, wherein ministry of defence would provide 80 per cent funding while the industry would come up with 20 per cent. The current status of the project is that bids from four vendors have been received which are under evaluation. Attempt by OFB to partner DRDO as a design partner has not been accepted under the plea that eventually DRDO will be the agency responsible for technology evaluation and approval hence could not partner OFB. This given, the lack of design perspective actually means that OFB will either have to tie up with one of the other vendors for design and development or simply lose all interest in the project.

Areas of Concern

First issue is the Project Team itself and its oversight. As mentioned it is a multi disciplinary team headed by ADG mechanised forces reporting to director general Acquisition in the ministry of defence whereas the nodal agency charged to oversee the project is Directorate General Mechanised Forces. This is a flawed arrangement at best, given the fact that post development; it would be the DG Acquisition who would be responsible for selecting one out of the two vendors. His being the overseer of the project could cast aspersions on his objectivity, even if the decision were transparent and objective.

Second issue is even more serious. Project team as presently constituted suffers from tenure based system of postings at the service HQ. Given the fact that large number of members will be turned over after every two/three years (minimum two turnovers of the project team), this will be against the principal of continuity. The proposal of creating a post of director general, Project Implementation, to be held by a retired three star officer with two brigadiers or equivalent either serving or retired with specified three to five year tenures; as core team to oversee project implementation has been lost in the labyrinths of ministry of defence’s bureaucracy. The idea it is learnt was to create ‘Arihant’ (Nuclear submarine project) type project implementation team to ensure both timely implementation and more importantly, empowered decision making by a dedicated team to resolve multitudes of problems likely to arise during the design and development phase in a Greenfield project of such complexity.
Given the foregoing perspective it is hoped that the shortsighted policies in terms of Project Implementation as also making DG Acquisition in charge of the project will not come in the way of timely completion. Success of this project is important both in terms of proving technological innovation in India as also assuring nascent Indian defence industry that they have an important role both as project designer and producing agency. Even perhaps more significant will be the indigenous technology development and creation of indigenous vendor base.

Lastly, success of this project will provide ministry of defence as also industry to further build and cement this partnership. FICV thus is not merely a one off project but signifies a true ‘make India’ resolve.
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