On November 12, without announcement or fanfare, the ministry of defence (MoD) signed a small contract with enormous implications for itself and the Indian Navy. This formalised the purchase of six advanced towed array sonar (ATAS) systems from Atlas Elektronik, the German naval systems giant, for just under Euro 40 million (Rs 306 crore).
....................So important is the ATAS contract that the MoD abandoned even the pretence of indigenisation. Atlas Elektronik will build all six ATAS systems in Germany, and has been exempted from offsets................
..............With this contract, Atlas Elektronik has taken pole position for supplying the navy a range of high-end sonars. Bharat Electronics Ltd (BEL), which is required to build ten ATAS with foreign partnership, has been encouraged by the navy to tie up with Atlas so that sonar equipment is standardised across warships.
..........................
..................BEL is learnt to be in discussions with Atlas for building ten ATAS for three Shivalik-class frigates (INS Shivalik, Satpura and Sahyadri), three Kolkata-class destroyers (Kolkata, Kochi and Chennai), and four Kamorta-class anti-submarine corvettes (INS Kamorta, Kadmatt, Kiltan and Kavaratti)..........................
ATAS import has been blocked since the mid-1990s because the Defence R&D Organisation (DRDO) was developing an indigenous ATAS called Nagan.
In 2012, the Nagan project was officially shut down and work began on another system called ALTAS. With this making slow progress, the DRDO finally okayed import.
......................
In November 2012, two years ago, Atlas was declared the lowest bidder. That was followed by a string of complaints to the MoD against Atlas, apparently motivated, since the MoD found no wrongdoing. Even so, with the ministry painstakingly investigating every complaint, each caused a 3-4 month delay. Earlier this year, with the elections impending, the United Progressive Alliance decided to leave the signing to the next government. Atlas Elektronik is owned 51 per cent by Krauss-Maffei Wegmann GmbH (KMW) and 49 per cent by Airbus Defence & Space....................................