After a rigorous month of prototype testing, the Army's evaluation underscored a pressing need for advanced defense systems due to existing shortages. The decision to place substantial orders was made to address this critical gap, and the orders were placed as follows:
Self-Propelled Artillery: 500 units at ₹10 crores each
Rocket Artillery: 500 units at ₹14 crores each
Anti-Aircraft Artillery: 500 units at ₹9 crores each
The total contract value for these orders was calculated as:
Self-Propelled Artillery: ₹10 crores × 500 units = ₹5000 crores
Rocket Artillery: ₹14 crores × 500 units = ₹7000 crores
Anti-Aircraft Artillery: ₹9 crores × 500 units = ₹4500 crores
Total Contract Value: ₹5000 crores + ₹7000 crores + ₹4500 crores = ₹16500 crores
Each order came with a deadline of nine months, set for June 2002, which emphasized the urgency and scale of the requirement. The substantial quantities not only highlighted the critical shortage of these advanced systems but also underscored the Army's trust in Anant Defence Limited's capability to deliver high-quality equipment within the stipulated timeframe.
The successful demonstration of the next-generation armored vehicle prototypes prompted a decisive move by the Army and government agencies. Convinced of the superior capabilities of Anant Tata Advanced Vehicles System (ATAVS) over foreign alternatives, they placed a series of major orders. This strategic shift aimed to modernize the defense fleet efficiently and cost-effectively.
1st Order: 4,000 vehicles
2nd Order: 4,000 vehicles
3rd Order: 7,000 vehicles
Each next-generation armored vehicle was priced at ₹5 crores. The total cost for each order was calculated as follows:
1st Order: 4,000 vehicles × ₹5 crores each = ₹20,000 crores
2nd Order: 4,000 vehicles × ₹5 crores each = ₹20,000 crores
3rd Order: 7,000 vehicles × ₹5 crores each = ₹35,000 crores
Total Contract Value: ₹20,000 crores + ₹20,000 crores + ₹35,000 crores = ₹75,000 crores
To ensure the longevity and optimal performance of the armored vehicles, ATAVS committed to providing comprehensive service and maintenance for a period of 5 years, free of charge. This includes routine servicing and regular check-ups to maintain the vehicles in peak condition.
However, the government will be responsible for the cost of any damage repairs during this initial 5-year period. This arrangement allows for minimal operational downtime and ensures that the vehicles remain in excellent working condition.
After the initial 5 years, ATAVS will continue to offer maintenance services, but the government will need to cover the costs associated with these services. This approach provides long-term support while aligning with the commercial aspects of vehicle upkeep.
The ATAVS facility, a joint venture between Anant Defence Limited and Tata Motors, has been completed. However, to meet the demands of the large orders and ensure the highest quality of the armored vehicles, the facility is currently undergoing an upscaling process. This includes expanding production lines, upgrading technology, and enhancing assembly capabilities to accommodate the increased order quantities.
The contract, signed on 2nd December 2001, established a production deadline of 15 months, with final delivery set for 2nd March 2003. This extended timeline was necessary to handle the large-scale production requirements and ensure that each vehicle meets stringent performance, durability, and safety standards.
ATAVS, with Anant Defence Limited holding a 60% share and Tata Motors 40%, combines expertise in defense technology and automotive engineering. Tata Motors provides the powerful engines crucial for vehicle performance, while ATAVS focuses on designing the vehicle bodies and power systems. The collaboration ensures that each vehicle is built to the highest standards and incorporates the latest advancements in technology.
The substantial orders from the Army and government underscore the strategic value of local manufacturing over expensive and delayed foreign systems. By investing in domestic production, the defense sector not only ensures timely availability but also gains cost efficiencies. This major contract bolsters ATAVS's position in the defense industry, demonstrating the effectiveness of their innovation and manufacturing capabilities.
The successful execution of these orders will significantly enhance the Army's operational readiness and strengthen national security, highlighting the growing importance and capability of ATAVS and its joint venture with Tata Motors.
The Navy's decision to place an order for advanced naval anti-aircraft guns marked a pivotal moment for Anant Defence Limited. After thoroughly evaluating the prototypes and aligning them with their operational requirements, the Navy moved forward with a substantial procurement.
Order Quantity: 70 naval anti-aircraft guns
Cost per Unit: ₹7.5 crores
Total Contract Value: 70 × ₹7.5 crores = ₹525 crores
The contract was officially signed on 2nd December 2001. Given the complexity and the need for precision in manufacturing, the production timeline was set for 3 to 4 months, with the final delivery scheduled for 15th March 2002. This timeline ensures that each unit is meticulously assembled and rigorously tested to meet the Navy's high standards.
The production of the 70 naval anti-aircraft guns presented several challenges, including integrating advanced targeting systems, ensuring durability for maritime conditions, and achieving precision in manufacturing. To address these:
Enhanced Quality Control: Implementing thorough testing phases to ensure each unit performs reliably.
Efficient Supply Chain Management: Coordinating closely with suppliers for timely delivery of high-quality materials.
Experienced Workforce: Utilizing skilled technicians and engineers for the specialized manufacturing processes.
Unlike previous agreements, this contract does not include free service. The Navy will be responsible for all maintenance and repair costs, including any parts required for the upkeep of the anti-aircraft guns. While Anant Defence Limited will provide initial technical support and guidance, ongoing service and maintenance will be charged separately. This approach reflects the scale and complexity of the order, ensuring that the Navy fully understands and manages the associated costs.
This significant contract not only solidifies Anant Defence Limited's position in the defense sector but also showcases the trust placed in its advanced technology. By opting for these domestically produced systems, the Navy gains access to state-of-the-art equipment with competitive cost advantages over foreign alternatives.
The successful execution of this order will enhance Anant Defence Limited's reputation and position in the naval defense sector, paving the way for future opportunities and strengthening the company's foothold in the defense industry.