New Delhi: India's notorious defence procurement system received another nasty jolt with global defence major BAE Systems today pulling out of the ministry of defence's (MoD) tender for the supply of 400 towed artillery guns to the Indian Army (IA).

BAE was offering a more advanced version of the older FH-77B Bofors guns, which performed very credibly in the IA's campaign in Kargil in Kashmir, but forever retained the taint of an earlier scandal concerning their acquisition.

BAE Systems now owns Bofors.

Apparently, the decision was arrived at after the company realised that new tender specifications contained technical and performance relaxations that would allow less capable weapon systems to enter the competition and thereby reduce the competitive advantage of their FH-77B05 L52 gun.

According to BAE spokesperson, Guy Douglas, "BAE Systems has, after very careful consideration, come to the conclusion that the company will not submit a proposal. The ministry of defence has been informed," he added.

The 155mm .52 calibre towed howitzers intended to be offered by the BAE Systems is an upgraded version of the Bofors guns inducted into the army in the late 1980s. Today was the last date of submission for bids, and the company skipped the opportunity.

The tender for the towed guns is one of the most jinxed of all of MoD's acquisition programmes and has badly impaired the Indian Army's artillery modernisation programme. This is the army's fifth attempt to get an acquisition programme underway.

Douglas said the decision not to bid is a "commercial one" based on the high investment costs required to participate in a complex artillery competition of this nature, where the win probability has been reduced.

The last tender was cancelled after Singapore Technologies, one of the two participating companies in the deal, was blacklisted by the ministry of defence following corruption allegations.

Douglas however made it clear that the company's commitment to India and the development of India's domestic defence industry remained "resolute."

Indian plans to induct the Ultra-light Howitzers, manufactured by BAE Systems in America, has also run into some trouble with allegations that the gun has failed to meet the exacting requirements of the army. The procurement was supposed to be done through the Foreign Military Sales route.

Under its Rs20,000 crore artillery modernisation plan, the army is looking to induct different types of howitzers including towed and self-propelled.