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By Praveen Swami
NEW DELHI, MAY 28. In the first week of June, the Army is scheduled to begin a new round of tests on three 155-millimetre, 52-calibre towed howitzer systems competing for a contract estimated to be worth Rs. 12,000 crores. The changed political circumstances, however, could have an impact on the fortunes of the contenders, notably SWS Defence AB, the successor organisation to Bofors. SWS Defence has fielded the FH77 B05 L52, an upgraded version of the weapon some experts believe was key to India's successes in the 1999 Kargil war. Rivals Soltam of Israel has put up the TIG 2002 howitzer, while South Africa's Denel is hoping its G5/2000 system will win the contest. India's artillery modernisation plans call for an inventory of around 1,400-1,800 155-millimetre howitzers. At present, the artillery uses a variety of guns that are not only inefficient but require large, costly inventories. Military sources say the latest tests, to be carried out at the Mahajan firing range in the Pokhran desert, are necessitated by the fact that none has met the General Staff Qualitative Requirements in tests carried out last year. The Ministry of Defence subsequently asked the three companies to modify their systems. A set of tests in 2002 had produced a non-committal evaluation by the Director-General of Artillery, who did not rank the guns by order of merit. In a level playing field, whoever performs best at Pokhran could walk away with a lucrative contract for 400 155-millimetre towed howitzers, 180 of which will be purchased outright and the remainder assembled under licence. The Army also needs wheeled and tracked 155-millimetre self-propelled howitzers. Notably, all three contenders for the towed howitzer deal also have interests in other spheres of Indian artillery and armour modernisation. Price negotiations are under way with Denel for LIW T6 turrets to be mated with the indigenous Arjun Main Battle Tank to produce the Bhim, a tracked self-propelled howitzer successfully tested in 1999. Denel had asked for some Rs. 2 crores to Rs. 3 crores more for each turret system than India was willing to pay, but may have been hoping that a compromise price could be reached in a deal that also includes the purchase of its towed howitzers. Orders are to be initially placed for 124 tracked howitzers. Soltam, for its part, has almost completed work on upgrading 180 of the Army's 130-mm M-46 field guns to 155-mm, a contract sealed in 2000. Soltam faced some problems with the project, executed by the Ordnance Factory Board at Kanpur. Faced with objections raised by the artillery, the Defence Ministry had halted all work on the upgrades two years ago, citing quality problems. However, these problems now seem to have been resolved, a fact Army sources attribute to political pressure. Until the 2004 Lok Sabha election results were out, Soltam had hoped to capitalise on the fact that under the National Democratic Alliance, Israel had became the second largest supplier of military hardware to India after Russia. Israel is not only selling India three Phalcon airborne early warning systems, mounted on Ukrainian IL 76 heavy transport aircraft, but is also awaiting Washington's clearance to make available its Arrow 2 anti-ballistic missile defence system. SWS Defence, in turn, has already concluded contracts for spares worth $ 6-8 million and for the existing towed Bofors howitzers in the Army's arsenal. The Swedish manufacturer has also said negotiations for an upgrade kit for these guns may begin once the tests for the new weapons are concluded. Like Israel, however, Sweden is apprehensive that political considerations may lead them to lose out on the towed howitzer deal. For the same reason, Denel is optimistic. The ruling African National Congress' relationship with the Congress in India has always been warm, and the former South African President, Nelson Mandela, had thrown his weight behind his country's efforts to sell 155-millimetre rounds to India at depreciated costs. The howitzer contract is crucial for Denel's financial survival.
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