As reported by FE earlier, under the approved strategic partnership model for the armoured vehicle segment, FICV was considered under the ‘Make’ category under DPP-2008.

The Ministry of Defence (MoD) is considering to push the $8-billion Futuristic Infantry Combat Vehicle (FICV) project under the ‘Make II’ category to encourage the Make in India initiative in the defence sector.

For the Make II category, three companies have so far sent their offers to the MoD. These companies are: Mahindra and Mahindra, Reliance Defence and Engineering (formerly Pipavav Defence) and Titagarh Wagons.

As reported by FE earlier, under the approved strategic partnership model for the armoured vehicle segment, FICV was considered under the ‘Make’ category under DPP-2008.

Sources told FE, “The advantage of the Make II category is that no funding is required from the MoD, unlike the ‘Make’ category, where the ministry has to provide 90% of funds up to the prototype stage.”

According to Chapter–III of DPP-2016, the ‘Make’ procedure for indigenous design, development and manufacture of defence equipment/ weapon systems was simplified in 2016.

A new sub-category — Make-II (industry funded) — was introduced under this procedure with a major focus on development of equipment/ system/platform or their upgrades or their subsystems/sub-assembly/assemblies/components. In this subcategory, no government funding is envisaged for prototype development purposes, but there is assurance of orders on successful development and trials of the prototype.

Under the original proposal for the FICV, which was earlier under the ‘Make category’, the plan was to have three development agencies (Das) – two from the private sector and one from the Ordnance Factory Board. As per the procedure laid down, the MoD had to give out minimum of Rs 500 crore each to the three DAs.

“Therefore, by putting the FICV project under the Make II category, the MoD will be saving the money. Secondly, since no government funds are involved, the project that has been delayed for long will move faster,” sources said.

The MoD in December asked the Indian Army to seek detailed project report from all the contenders which had received the expression of interest.

About 2,600 FICVs will be needed to replace the Army’s old Russian-origin BMP-2 infantry combat vehicles. The Project FICV will have an expected life span of 32 years.

The MoD has been trying to announce its final decision since 2016. However, that could not happen due to various representations made by companies who have been keen on participating in the program.

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