India’s Minister of State for Defence Subhash Bhamre said in the parliament that the case of purchase of the missile system is at contract negotiation stage with Rosoboronexport of Russia, the L1 vendor, which has offered IGLA-S missile system

New Delhi: Indian defence ministry has stated that Russia's IGLA-S is the winner of multi-billion tender for very short range air defence missiles (VSHORADS) on Wednesday.

The defence ministry has also added that it is aware of US financial sanctions for arms purchases from Russia under Countering America's Adversaries through Sanctions Act (CAATSA) which may impact procurement.

"Defence procurement is carried out based on threat perception, operational and technological aspects to keep the Armed Forced in a state of readiness to meet the entire spectrum of security challenges," Subhash Bhamre replied to question of a lawmaker who asked whether the Government is aware that this deal is under the shadow of CAATSA.

The ministry also clarified that the Russian firm will provide major support to country's Make in India program through the transfer of technology (ToT) to state-owned Bharat Dynamic Limited (BDL) and Ordnance Factory Board (OFB).

Russia's Rosoboronexport was declared the winner of the tender which was floated in 2010 for the procurement of 5185 missiles and associated equipment under the Indian Army's VSHORAD program. Indian defence ministry had announced the winner after the bid amount submitted by Rosoboronexport for supplying IGLA-S was found well below the "benchmark price" of $2 billion while Saab had bid $2.6 billion and the French firm, MBDA, quoted $3.7 billion.