India has rejected an Israeli proposal to
jointly develop a new version of the Heron unmanned aerial vehicle
(UAV), made by Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1).
The rejection is an unusual event in Indian-Israeli defense relations.
Israeli sources estimate the potential value of the project at several
hundred million dollars.
A well-informed Israeli source told "Globes"
in response that marketing efforts with foreign countries take time and
effort, and that the joint project would probably go ahead, despite the
initial rejection. He attributed the rejection to an internal struggle
among India's defense officials between those who want to stimulate
domestic defense industries, and those who want to play it safe by
relying on Israel's experience in UAV development.
"Israel is
making a constant marketing effort in India. There is constant urgency
to sell the Heron," said the source. "Naturally, there are different
perspectives in India about the need for such a project. Such deals are
closed overnight. IAI is prepared to invest more time and hopes for
success."
"Defense News" quotes a source as saying that the
rejection of the joint UAV project reflects new thinking in India's
Ministry of Defense to focus on current DRDO projects instead of
spending money on new ones. India has been trying for a decade to
develop its own advanced UAVs to no avail.
India is one of the
biggest markets for the Heron; Israel has sold India scores of the UAV,
worth almost $1 billion, in several deals. The Indian Navy, Indian Army,
and special forces all operate versions of the Heron. "Defense News"
says that India currently operates 60 Herons and that it needs more.
"Defense News" says that IAI and India's Defence Research and Development Organisation
(DRDO) submitted the proposal to jointly develop the Heron, but that
Ministry of Defense officials said that DRDO should focus on the joint
Israeli-Indian mid-range surface-to-air missile (MRSAM) program, a land
version of Israel's Barak naval defense missile. The magazine says that
the missile problem is behind schedule and has technical problems,
including the failure of a prototype in December.
According to
"Defense News", the joint missile program began in 2009, and is intended
for use by both India and Israel's militaries. IAI is the chief Israeli
contractor. The DRDO signed the contract with Israel after an Indian
tender for the purchase of a mid-range SAM that would use Indian
technology failed. The Indian Air Force wants 18 MRSAM batteries at an
estimated cost of $1.2 billion.
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