BMP-2 Upgrade Program, Army Cancels Deal with OFB

BMP-2 Upgrade Program, Army Cancels Deal with OFB

Russian and OFB Proposed BMP 2 upgrade model

     Indian Army sources confirmed to ET, That they were all set to cancel the earlier awarded $1.8 billion deal to upgrade more than 1600 BMP 2 infantry combat vehicle into new BMP 2M standard. Medhak based OFB joined with Russian firm to build those BMP units in India, Further upgrade the BMP 2 into new standard Army shortlisted the same company.

    The PSU piped out all other private vendors to secure the deal. The Upgrade Parameters are explained in this article ( Indian Army BMP 2 Upgrade Program ) Now the Army plans to cancel the deal with OFB due to unknown reasona. Sources said this is due to Private vendors like Tata and Mahindra shown interests in the upgrade process. 

    The decision mainly focus Private companies to learn how to make armored vehicles, and it's subsystems.  TATA is already involved in FICV project. Known as kestral. Earlier when the contract announced about the upgrade work, Kalyani joined with Israeli firm Rafeal to upgrade the BMP with Spike and RCWS systems. However the Public sector unit OFB managed to get the deal.

    Due to the cancellation of the deal, The upgrade process could make delay in the operational availability of BMP 2 and it's upgrade program. Also this shows Army's vision is not clear, Making delay in every process. 

Kalyani Rafeal Joint propose of BMP 2 upgrade