India has cancelled a $500-million (Rs 3,177 crore) deal to buy 1,600 Spike anti-tank guided missiles from Israeli state-owned defence company Rafael Advanced Defence Systems, Reuters reported on Wednesday.
“Rafael regrets the decision and remains committed to cooperating with the Indian Ministry of Defence and to its strategy of continuing to work in India, an important market, as it has for more than two decades, to provide India with the most advanced and innovative systems,” the company said.
In 2014, India chose the Spike missiles over the Javelin missiles offered by Washington. The portable fire-and-forget missile allows soldiers who operate it to quickly move for cover, NDTV reported.
The Ministry of Defence was not keen on the deal as the Defence Research and Development Organisation is working on creating its own anti-tank guided missile, The Indian Express had reported in November 2017.
The Defence Ministry on Tuesday said it had cleared the proposal to buy 131 Barak missiles and associated equipment from Rafael at a cost of Rs 460 crore.