With reference to some misleading media reports regarding Tata Motors’ bid for the Defence Ministry’s FICV project, Tata Motors would like to emphatically point out that it continues to be a strong bidder for this program. Tata Motors and the Tata group have the required credentials and a track record to collaborate, co-create and support the country’s defence agencies as a partner with long-term commitment to see products through multiple generations of evolution.
Among key points we would like to note:
A response to Tata Motors from the Defence Ministry’s IMPT (Integrated Project Management Team) shared yesterday, clarifies that bidding companies must have capital assets in India, and the turnover in India will be taken into account for the threshold limit. We note we meet ALL the requisite criteria for bidding for the FICV project. With our robust technical strength, the size of our Indian assets, a strong balance sheet and the backing of the Tata group, with other group companies joining hands in the consortium, we remain confident of being a strong bidder for this project.
It is imperative to note that the evaluation of the bid is to be based on technical and financial parameters. The financial parameters only account for about 26% weightage. The remaining assessment criteria parameters are all technical:
Technical Capability Assessment (32%),
Critical Technology Assessment (34%) and
Technical Specification Assessment (8%)
Tata Motors is confident of fulfilling all commercial / financial criteria, even with the above-mentioned clarification from IMPT stating that a company’s turnover from its domestic operations (excluding global operations) will be considered for the threshold limit. Notwithstanding this, Tata Motors will discuss with the Government and the Defence Ministry about including consolidated revenues, as its wholly-owned subsidiaries form an integral part of the parent company, including in stock exchange listings, and its consolidated revenues offer strong financial support to the project.
Future Infantry Combat Vehicle (FICV) is one of the key projects that is bringing the Tata group companies together to work collaboratively and provide convergent defence solutions as required for the project. Tata Motors is the lead company on behalf of the Tata group for the FICV programme as the System of System Integrator (SOSI).
Tata Motors, with more than five decades of relationship with Indian defence forces, brings strong credentials to this bid. It has the capability, ability, long term commitment, right credentials and sound technological expertise to successfully participate in the FICV tracked programme.