The gas block has been redesigned and looks much more substantial than the original SVD design. Judging by the photos, the gas block may have an adjustable gas regulator. The Lothar Walther barrel is threaded with a muzzle brake, instead of the SVD / Tigr flash suppressor. Both front and rear iron sights have been removed.
The answer is that it was cheaper (the rifle themselves, cost of training troops and cost of training armorers) and much easier politically to purchase an upgrade than an entirely new weapon system. This SVD upgrade would look appealing to countries currently using the SVD but wanting a more modern DMR without the cost of a top-of-the-line AR-10 or the logistical problems of switching away from 7.62x54R.
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