The $300-million deal for purchasing advanced air surveillance systems, expected to take care of RAW’s snooping abilities, was about to be sealed in favour of Elta, an Israeli firm.
A high-level committee formed by prime minister Manmohan Singh is investigating tender processes and other technicalities adopted by the Research and Analysis Wing (RAW) for the purchase of new systems for its Aviation Research Centre (ARC).
The $300-million deal for purchasing advanced air surveillance systems, expected to take care of RAW’s snooping abilities, was about to be sealed in favour of Elta, an Israeli firm. However, other contenders, including American firm Raytheon, lodged a protest with the government of India, saying the RAW did not hold a field trial before clearing the deal in favour of Elta.
The ARC has eight aircraft with sophisticated cameras that were being to gathering imagery intelligence to keep track of developments on the ground. But these aircraft were old and were in urgent need of replacement to match the air surveillance systems of the neighbouring countries.
Two years ago, ARC started working on the design, technical specifications and the cost of a air surveillance system. Elta, IAI and Raytheon bid for the project. Top officials of ARC now fear that the deal itself may be scuttled, which could in turn impact ARC’s technological capabilities. It could also see overall cost escalation in installing a new system.
A senior RAW official said field-trials were not carried out before placing an order for the aerial surveillance system. However, the official also said that a field trial would have taken place only after the system, based on ARC’s specifications, was manufactured and tested.
On sealing the contract in favour of Elta, sources said that in 2010 after the commercial bids were opened it was found that Raytheon had quoted more than double the price quoted by Elta.
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