Medium Range Surface to Air Missile (MRSAM)
The Medium Range Surface to Air Missile (MRSAM) joint venture [JV] involved Israel Aerospace Industries and Rafael teaming up with India’s Defence Research and Development Organisation and the Indian Air Force to build medium range surface-to-air missiles (MRSAMs). The deal, worth Rs10,400 crore, would be India’s biggest defence JV with a foreign country. The DRDO is a partner in the project, but will get only a third (Rs 3,000 crore) of the Rs 10,000 crore. IAI gets the bulk of it, over Rs 7,000 crore.
DRDO had already developed indigenous air defence systems, such as the Trishul and the Akash. The latter did not fit the bill for the MR-SAM project as its range was only 30 km, while the services had posited the requirement for a missile system with a range of 70 km. MR-SAM systems would be deployed for the security of the National Capital Region as well as for securing nuclear installations across the country.
The Israeli firm IAI was already blacklisted by Government of India,after finding it indulged in commission pay off in Barak Missile Deal in 2000. CBI had lodged FIR against then Indian defence minister, George Fernandes, Former Chief of the Indian Navy, Admiral Sushil Kumar, Suresh Nanda along with his son, Sanjeev Nanda and others regarding defence deal to procure seven Barak systems at a total cost $199.50 million and 200 missiles at a cost of $69.13 million On October 23, 2000. It is alleged that 3.5 percent commission was given to those accused in that earlier deal.
In July 2007 the Cabinet Committee on Security gave the formal clearance for the largest-ever joint venture India has undertaken in the defence sector with any foreign partner. The proposed missile, a new generation Barak missile, was to have around 70-km range. In May 2008 the government formally put on hold India’s largest-ever military joint venture with a foreign country — the Rs 10,000 crore effort with Israel to build a medium-range surface-to-air missile (MRSAM) for the Air Force.
In an unusual development, in August 2008 the Central Vigilance Commission gave the go-ahead for a massive joint venture with two Israeli defence firms that were under investigation for kickbacks in the Barak missile scandal. The CVC clearance for the project — it had been on hold since June 2007 despite approval from the cabinet committee on security — caused some surprise in official circles.
But the Indian Government signed an agreement with Israel Aerospace Industries (IAI) on 27 February 2009 to jointly develop a Medium Range Surface to Air Missile (MRSAM) with DRDO. The UPA government signed Rs10,000 crore defence deal with Israel to purchase medium-range surface-to-air missiles, ignoring the ‘Akash’ developed by the Defence Research and Development Organization and Bharat Electronics Ltd Akash has a range of 27km, while MRSAM has a range of about 70km.
On 31 March 2009 IAI released an official press statement rejecting the claims that it purposely withheld notification of the deal to the Israel Securities Authority. "Israel Aerospace Industries Ltd. (IAI) does not release general information regarding transactions with its customers, except for such information as is required to be reported by law. Lately, various articles have appeared in the media regarding a large transaction for the sale of weapon systems to the country of a foreign customer, which have included information that is incorrect and biased, and which have originated, apparently, from entities that are trying to harm IAI's business ties with this customer. It was published, among other things, that notification regarding a large transaction for the sale of weapon systems to a foreign customer was delayed until receipt of the advance payment for such transaction, and this on the claim that representatives of that country's government requested that the notification be delayed. IAI's management wishes to make it clear that these claims and articles have no basis in reality and, in any event, have not emanated from IAI."
The MRSAM JV would initially build two regiments of 36 launchers for the IAF. The missile launcher and the command post would be made in India, with the rest of the complex system - including the missile itself - to be made in Israel. IAI will reportedly supply India with 2,000 missiles capable of intercepting enemy aircraft and missiles within a 70-kilometer range. The proposed MRSAM, to replace the old Pechora missiles of the IAF. DRDO would station at least 25 of its scientists in Israel for the project. The first prototype was planned in about two and a half years [around 2011] and the development would be completed in five years from its start.
Nova Integrated Systems, a Tata-IAI joint venture, will be integrating the MRSAM. Several officials in the defence ministry were said to be "baffled" as to how a private-sector firm had been nominated as the integrator for the missile system. In India, all missile systems are integrated in public-sector units, usually Bharat Dynamics Limited (BDL). DRDO had suggested BDL as the integrator for the MRSAM, with the Israelis supplying the seeker and some radar components, and DRDO making the airframe, servos, and propulsion.
