India is likely to sue Poland’s Polski Holding Obronny, formerly known as Bumar, for allegedly not honoring a deal to supply full technology transfer contact for key systems of armored recovery vehicles ( ARV) to be produced by Bharat Earth Movers (BEML) in India.
Despite a contract for $275 million signed in January 2012 for supply of 204 ARVs for the Indian Army, “the Polish company has ... not given critical technology transfer for ARVs to be manufactured by BEML in India." Indian Ministry of Defence official was quoted as saying to Defense News Friday.
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.
“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.
Under the contract, 50 percent of the ARV was to be homemade by BEML, and PHO was to provide full critical technology transfer to crucial subsystems, according to a BEML executive, who spoke on condition of anonymity. “We are now actively seeking other alternatives to complete this program”.
Under the contract, each ARV would cost $1.4 million and be supplied within three years. The currently Army faces an acute shortages of ARVs, an Army official said.