By: Vivek Raghuvanshi
NEW DELHI — The Indian government may file a lawsuit against Polski Holding Obronny of Poland, formerly known as Bumar, for allegedly not honoring a contract to supply full technology transfer for key systems of armored recovery vehicles, or ARV, to be manufactured in India by state-owned Bharat Earth Movers Limited for the Indian Army.
“Despite an undersigned contract [worth] $275 million signed in January 2012 for supply of 204 ARVs, the Polish company has ... not given critical technology transfer for ARVs to be manufactured by BEML in India. The Polish company also refused to open performance bank guarantee of $100 million for technology transfer of critical systems for ARVs, and despite several reminders, PHO has refused to honor its commitment," according to an Indian Ministry of Defence official, who spoke to Defense News on condition of anonymity.
“India is now actively pursuing to file a lawsuit again PHO for not honoring [its] commitment, and [the Indian] government will now recover liquidity damages,” the MoD source added.
BEML bagged an order from the MoD in November 2011 to produce 204 ARVs with full technology transfer from PHO for the Indian Army’s Russian-made T-72 main battle tanks.
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