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11:21 AM, April 29, 2015
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Bharat Forge and Punj Lloyd will be the only contenders for Indian Army’s US $2.6 billion (16,800 crore INR) anti-aircraft gun replacement contract, Economic Times reported Wednesday.

However Bharat Forge clarified on the news report as speculative and will inform stock exchanges about any update on price sensitive information.

"The news item is speculative in nature and there are neither updates nor official information received by the Company. As in the past, the company would continue to inform stock exchanges about any price sensitive information before the same is made public," Bharat Forge informed Bombay Stock Exchange after the exchange sought clarification.

“It might be the Kalyani group which is bidding for the contract, not its listed entity Bharat Forge,” Reuters quoted analysts as saying.

Reuters stated that Punj Lloyd has confirmed it was bidding for the contract. "Our focus has been on air defense and hence we have invested in manufacturing and partnerships," Ashok Wadhawan, President of Manufacturing, Punj Lloyd was quoted by Reuters.

The project involves manufacturing 1,102 air defense guns over the next 15 years to replace L70/ZU 23 as part of the 'Make in India' program. The manufacturer will have to supply the army with 428 guns over the next five years and also several lakh rounds of ammunition, the ET report said.

No State-run company, including the Ordnance Factory Board (OFB), is competing for the contract.

The two domestic companies were shortlisted after responses to a tender were received under the 'Buy and Make (Indian)' category earlier this year, ET quoted unnamed sources as saying.

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