NEW DELHI: Centre's effort to boost development of indigenous weapon system for the Army took an interesting turn after the Defence ministry canceled a $500 million Spike Anti-Tank Guided Missile (ATGM) missile deal with Israel.


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The ministry has now asked the Defence Research and Development Organisation (DRDO) to produce a Man-Portable Anti-Tank Guided Missile (MPATGM) for the Army. Delivery of the weapon system is expected within the next four years without any transfer of foreign technology.


The deal was cancelled keeping in mind that import of foreign ATGM can adversely impact the programme for indigenous weapon system development launched by DRDO, sources in the ministry told Indian Express. DRDO has previously produced the Nag and Anamika ATGMs.


India had also rejected an offer from US-based Raytheon-Lockheed Martin for Javelin ATGM in favour of the Israeli weapon system.


The $500 million deal was being witnessed as an example of the growing Indo-Israel defence cooperation. 


Earlier this month, the Indian Air Force or IAF is participated in Israel's largest aerial exercise Blue Flag 2017 for the first time – a sign of increasing ties between the two countries. A 45-member contingent of the IAF, led by Group Captain Maluk Singh VSM, touched down Uvda Air Force Base in southern Israel last week. 


Meanwhile, in several letters to the Defence Ministry, the Army highlighted it's urgency to procure operational equipment, arguing that the Spike ATGM will boost the capability of troops deployed on the Line of Control.


In anticipation of this deal, Rafael had entered into a joint venture with Kalyani group for missile production in India. The missile sub-systems manufacturing facility, based near Hyderabad, was inaugurated in August.


The Army currently faces a massive shortage of around 68,000 missiles.