Dangers of Big Ticket Foreign Arms Deal

Discussion in 'Defence & Strategic Issues' started by Ray, Nov 1, 2014.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    There is no doubt that a change in geopolitical and geostrategic equations can leave a contract hanging leading to great disruption of the defence preparedness of India.

    What should be done is to simultaneously get the TOT and start the indigenous production line. And that should be in the contractual agreement before it is inked.
     
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  3. pmaitra

    pmaitra Moderator Moderator

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    There are lot of detractors within the armed forces who continue to find flaws with indigenous products, and attempt to block the procurement of armaments domestically. Finding flaws is not a bad thing, but finding ways to rectify them would be useful.

    It will benefit the foreign arms exporters each time some domestically produced product is rejected. If the T-90 scandal is anything to go by, we should know that things that look "affordable" prima facie, are actually just a step in the doorway, and what follows is a stream of imports required to keep the already purchased armaments operational.

    We need a national consensus on using domestically produced armaments as much as possible, and where deficiencies are found, the critics should be given the responsibility of fixing those deficiencies domestically.
     
    sesha_maruthi27 likes this.
  4. sgarg

    sgarg Senior Member Senior Member

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    Mr Ray, non-engineers talk about TOT very lightly.

    In reality, TOT can prove to be more difficult compared to indigenous development. There is a very sound reason why it is so. Building a complex machine involves building its parts first, and the parts require participation of a large number of vendors/sub-vendors which also need to absorb the technology.

    Rafale is a very good example of TOT complexity, as India does not have manufacturing techniques to build this class of aircraft.
     
  5. sgarg

    sgarg Senior Member Senior Member

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    GOI must tell the services to develop local sources. I think this government is telling services repeatedly. The services have not responded properly yet.

    Spending 45M per Mirage 2000 is not smart. This is the problem with both IAF and IA that they do not understand the economics of defence.
     
  6. Ray

    Ray The Chairman Defence Professionals Moderator

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    Double post.
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    One of the model of TOT is:

    *Carry out pre-investment feasibility to gather information and carry out a techno-economic analysis
    to establish project viability.
    • Carry out a preliminary identification of technologies needed, based on the feasibility study.
    • Carry out basic engineering studies that involve the preparation of process flow diagrams, layouts,
    material and energy balances and other design specifications of the plant and machinery and the core
    technology to be transferred.
    • Carry out a detailed engineering study that involve the preparation of a detailed civil engineering
    plan for the facility, including construction and installation specifications and identification of the
    peripheral technology needed to make the transfer effective.
    • Carry out the selection of suppliers for equipment and subcontracting services to assemble the plant
    and machinery and plan for the co-ordination of the work among various parties
    • Prepare and execute a training and education plan, in consultation with the suppliers of technology,
    for the workers who would be employed in the technology transfer project.
    • Construct the plant.
    • Commence operations.
    • Develop trouble-shooting skills and put in place arrangements to solve design and operational
    problems as they arise, especially during the early years of operation.
    The important lessons that this model presents include the following:
    • A TT project is best studied using a sequential process perspective.
    • Any TT project should not be commenced without a careful feasibility study since such projects
    often require heavy resource commitments.
    • The transferee should be involved in the planning right from the beginning.
    • It is important for transferees to develop sound engineering and project management skills without
    which the TT process cannot be managed effectively.
     
  8. sgarg

    sgarg Senior Member Senior Member

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    @Ray, the fact remains that local expertise is limited to building Russian origin fighters. You can call it a flaw in planning or just happenstance, but it is a fact.

    India could have built Mirage 2000 but did not. The aviation sector could not absorb Western technology due to GOI's lack of vision and other factors.

    The capabilities do not develop without a sound plan. Some people have commented about TOT of Rafale engine. One of my friend told me (somebody based in USA) that it will take at least 2 billion dollars to build an engine plant which is at the level of contemporary European technology.

    Plus India does not have the skills - both engineering and technical to use the advanced machines.

    There are a lot of games being played in case of Rafale. French themselves have reservations about India's ability to make this plane. However some MOD persons and IAF brass continue to shows things in a light which is impractical and carry very high expectations.

    Import deals of weapons have used deception so frequently that everybody thinks this is the correct way to do business. No it is not.
     
    Last edited by a moderator: May 10, 2015

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