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| Indian Army T-90 tanks (Wiki Info - Image: Wiki Commons) |
By VIVEK RAGHUVANSHI
NEW DELHI — The Indian Defence Ministry — faced with a shortage of ammunition for its Russian-made T-90 tanks, coupled with an inability to produce ammunition at home — has no choice but to give in to Russian terms and purchase marked-up ammo from Moscow, an MoD source said.
The MoD reluctantly agreed to the deal last month, despite the fact that Russia hiked the price by 20 percent and refused to accept offset obligations.
Russia will receive a $197 million contract for the fin-stabilized armor-piercing discarding sabot. In 2011, the asking price for the same order was $163 million.
Besides jacking up the price, the Russians also refused to transfer technology for making the rounds to the state-owned Ordnance Factory Board (OFB), a demand India has been making for the past five years, the MoD source added. A diplomat from the Russian Embassy merely said the sale of T-90 ammunition was on agreed-upon terms, and refused to give details.
Read the full story at DefenseNews