According to a report from ET, the INR 1000 crore truck deal between the home grown auto-major Tata Motors and the Indian Ministry of Defence has been concluded. Under the contract, Tata Motors will supply 1,239 six-wheel-drive high mobility vehicles (HMV) to the Indian army. These HMVs are fitted with material handling cranes for the transferring the heavy materials.
"We have been out of this category for 30 years. We had to get into this. This is the future," said Vernon Noronha, vice president, defence and government business at Tata Motors.
He said the company expected to conclude the deal in a few days. In November last year, the company had emerged as the lowest bidder, beating three other contenders—Vehicles Factory Jabalpur with Ashok Leyland, Force Motors with MAN SE and BEML with Tatra.
After this deal, the defence ministry is currently holding trials for two other contracts involving trucks- an eight-wheel-drive high mobility trucks and a specialised platform called the Field Artillery Tractor (FAT). The eight-wheel-drive HMV contract is for 255 units and has an approximate value of INR 400 crore, while the FAT contract is for 100 units with an approximate total value of INR 80 crore. Tata Motors is participating in both the deals actively.
With this deal, decades-long monopoly of the Czech-manufacturer Tatra has finally came to an end.