Defence - BMS Contract Worth INR500bn Sets Sail :: Edelweiss

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Action in the defence sector continues to gain momentum. The latest being the Ministry of Defence selecting a consortia of 2 developers to develop Battlefield Management System (BMS) worth INR500bn. The BMS project is categorised under the ‘Make’ category and will be one of the largest defence solutions to be manufactured indigenously. It is a situational awareness and visualisation system that aims to optimise the operational effectiveness of tactical units. Under the project, a digital wireless network will interlink soldiers and battlefield sensors via voice and data channels, providing a common battle picture to each soldier. The 2 consortia include: (1) Bharat Electronics (BEL)-Rolta; and (2) Larsen & Toubro (L&T)-Tata Power. These entities will, over 18 months, compete with each other and build prototypes. The government will, post evaluation, select either one of them or distribute the contract between the 2 for mass production. Thus, portending a positive for all the 4 companies selected.

BMS contract gets leg up; sizeable opportunity for domestic players

The Ministry of Defence has selected 2 consortia-BEL-Rolta and L&T-Tata Power-for development of BMS project worth INR500bn, one of the largest projects under the ‘Make’ category under the Defence Procurement Procedure (DPP) 2013. They were selected from 14 companies on the basis of their technology and indigenisation plans. 80% expenditure on development of prototypes will be reimbursed by the government (100% if MSME are outsourced 20% of work). We believe that over 30% of the systems will be built indigenously, thus there will be a large bought-outs part, opening up a sizeable opportunity for component manufacturers in India.

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https://www.edelweiss.in/research/Defence--BMS-Contract-Worth-INR500bn-Sets-Sail;-Event-Update/28478.html