Indian defence industry exports watch

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Private sector must play a larger role in defence manufacturing: Hindustan Aeronautics’ T. Suvarna Raju

T. Suvarna Raju, chairman and managing director of Hindustan Aeronautics Ltd.
State-run Hindustan Aeronautics Ltd (HAL) handed over the first two indigenously developed light combat aircraft (LCA) Tejas to the Indian Air Force in July.
With the National Democratic Alliance (NDA) government allowing up to 100% foreign direct investment (FDI) in the defence sector—49% FDI participation under the automatic route and beyond 49% through government approval—HAL, a Bangalore-based aerospace and defence firm, is looking at more private sector participation to boost defence manufacturing in India. The NDA government has placed defence orders worth Rs.2 trillion to encourage domestic manufacturing and foreign investments.
In an interview with InfraCircle, T. Suvarna Raju, chairman and managing director of HAL, spoke about the opportunity for the Indian industry in defence production, role of the government’s ‘Make in India’ initiative and its light utility helicopters becoming operational shortly. Edited excerpts.
Now that India allows up to 100% FDI in defence, what are your expectations?
It is supposed to bring in a great change. Stakeholders can bring in (advanced) technologies and that will further fuel growth in defence production.
Do you have plans to work with private entities in India?
Yes, we want a third (assembly) line to be run by the private sector. In fact we want the private players to come in now and produce LCA or light combat helicopter (LCH) as we don’t want to make more investments into this space. As of now, our LCA project is doing well and the government has already placed orders for 100 LCA. We have also started a series of productions.
What role do you see for Indian manufacturers and suppliers in defence production, in the light of Make in India initiative?
We want to increase our production to 16 LCA a year. In the past, HAL would have added a third (assembly) line to create a capacity of 24 planes a year. But we don’t want to do it now; we want the industry people out there to come up with it. As for the ‘Make in India’ initiative, it is an opportunity for the Indian industry and they can make components and supply to us.
What’s the way ahead for HAL?
We are moving ahead with our plans for fixed-wing LCA, rotary-wing LCH and unmanned aerial vehicles (UAVs) besides others projects. HAL has helped develop Rustom—a remote-controlled, medium-altitude and long-endurance combat UAV. We are now trying to get a performance-based logistics system in place, which would be crucial for maintenance. Then there are MRO (maintenance, repair and overhaul) packages that we handle. We are one of the six nations in the world who make helicopters or have the capabilities of manufacturing choppers. We have developed advanced light helicopters; our advanced combat helicopter is ready and in a few days, HAL’s light utility helicopters will be operational.
 

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'SMEs can participate in defence through HAL & DRDO'

Articulating that the micro, small and medium enterprises (MSMEs) should progress with defence indigenisation programme with increased Research & Development (R&D) having innovative approach as it would only ensure and enhanced their participation with armed forces through defence undertakings such as HAL and DRDO, said Air Marshal P P Khandekar, AO-in-C (Maintenance), IAF on Tuesday.
Addressing a Seminar on "MSME Role in Indigenisation of IAF Requirements - Combating Challenges and Creating Capabilities with MSMEs" under aegis of PHD Chamber of Commerce and Industry in New Delhi on Tuesday, Khandekar said that currently MSMEs participation with armed forces was possible through the two entities and therefore, these should take advantages of the two windows with quality of manufacturing utmost in their mind.
Khandekar was addressing the Seminar which was organized as a Curtain Raiser to publicize a workshop on MSMEs role in Indigenisation of IAF requirements to be held at Lucknow on 14th of next month under the joint aegis of HAL, DRDO and PHD Chamber of Commerce and Industry.
The Seminar is likely to discuss and understand in detail the capabilities MSMEs posses and sensitize the local industry with the Indian Air Force requirement for future collaborations. There will also be display of equipment by BRD units of Indian Air Force.
The stakeholders that are likely to attend the forthcoming seminar consists of Senior Indian Air Force officers, representatives from DPSUs, state government officials, defence think tanks, local SMEs and captains from the Indian industry including leading Indiana and International organizations.
In the Curtain Raiser event of the Chamber here today among those that were also present included the Vice President, PHD Chamber, Anil Khaitan; Co-Chairman, Defence Committee, PHD Chamber, Maj R S Bedi (Retd.) and its Secretary General, Saurabh Sanyal.
 

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Tatas get Boeing job order for interior panel supply to P-8s
NEW DELHI: India's next four Poseidon-8I long-range maritime surveillance and anti-submarine warfare aircraft could come fitted with domestically-made composite interior panels.
Tata Advanced Materials Ltd (TAML), a subsidiary of Tata Industries, has been awarded a contract from Boeing to provide composite interior closeout panels for the P-8 aircraft that cover the interior wall structure of the aircraft, a statement from the Tatas said.
The contract entails supplying interior panels on a global basis. However, industry sources said it is not clear if the Indian version of the aircraft would come fitted with TAML-made panels as they are not the sole providers.
The P-8 is designed for long-range anti-submarine and anti-surface warfare as well as armed intelligence, surveillance and reconnaissance missions.
India had on July 27 signed an over USD 1-billion deal with American defence and aerospace major Boeing for procuring four additional Poseidon-8I. The contract is a follow-on order to eight P-81 planes already bought by India in a direct deal worth USD 2.1 billion with the firm.
Armed with deadly Harpoon missiles, light-weight torpedoes and rockets, among others, the Navy is extensively using the P-8I to keep a strict vigil over the Indian Ocean, which has seen numerous Chinese submarine forays, including docking of a nuclear sub in Sri Lanka.
TAML is currently under contract to manufacture the P-8 tail cone and auxiliary power unit door fairing out of India.
Additionally, TAML works for Dynamatic Technologies Ltd in support of the CH-47F Chinook, a medium-to-heavy lift helicopter and for P-8 cabinets.
Boeing and Tata Advanced Systems Ltd have established a joint venture in India to produce AH-64 Apache fuselages, coproduce aero structures and pursue integrated systems development opportunities in India.
 

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Source: India Needs $233B in Next 11 Years To Buy Weapons
By: Vivek Raghuvanshi, September 8, 2016(Photo Credit: Daniel Berehulak/Getty Images)
NEW DELHI — India needs $233 billion to meet its weapons and equipment requirements in the next 11 years, according to the Long Term Integrated Perspective Plan (LTIPP) for 2012-2027, an Indian Ministry of Defense (MoD) source has revealed. However, there's division over whether India will be able to meet the funding need.
The list of the weapons and equipment needed for India's armed forces translates to a cost of $233 billion. According to the MoD source, the money will come from the country's procurement budget, Capital Head.
To meet the funding target, India will need to increase defense spending at an annual rate of more than 10 percent.
The funding allocation in the Capital Head for 2016-2017 is $37.94 billion, which works out to an increase of 2.3 percent in rupee terms against last year's funding allocation. However, in US dollar terms, it was a 10 percent drop compared to last year's allocation of $42.1 billion because of the depreciating Indian rupee against the dollar.
"Given the depreciating Indian rupee and near-stagnant in fund allocation in the last two years, it is unlikely that there would be an annual increase of more than 11 percent to meet the target of $233 billion set by LTIPP for the next 11 years," said Nitin Mehta, an India-based defense analyst.
However, Amit Cowshish, MoD's former financial adviser, is confident India will fulfill the planned requirements. "The amount of US $233 billion works out to approximately 15,000000 million Indian rupees. The current year's allocation for capital acquisitions is around 70,0000 million rupees. Taking this as the base and assuming a reasonable yearly growth of 10 to 11 percent, the total allocation over the next 11 years would anyway be close to 15,00,0000 million rupees. So any acquisition plan that is based on this financial assumption would be quite realistic."
LTIPP lists the purchase of 500 helicopters, 12 submarines, nearly 100 single-engine fighter jets, more than 120 twin-engine fighter aircraft and an aircraft carrier, according to the MoD source said.
Mehta emphasized the importance of meeting these LTIPP requirements.
There are several projects that have been awaiting finalization by the MoD for the last three to four years, including the purchase of 36 Rafale fighters from France; the acquisition of 56 Airbus C-295 transport aircraft; the license production for Kamov 226 helicopters in India; the purchase of 145 ultralight howitzer artillery guns from the United States; the purchase of 100 155mm tracked artillery guns; the purchase of 280 aero engines from Honeywell for the British-built Jaguar aircraft used by the Indian Air Force; and the purchase of five units of Russian-made S-400 advanced air defense systems cleared by the ministry's Defence Acquisition Council.
 

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Tata seems to be a hit among the foreign investors in defence,I was expecting it to be Reliance.
Reliance must be feeling left out,however we should try to rope them in on indigenous projects like Tejas/AMCA ,defence initiatives by Private sector should be supported to promote indigenous capabilities,like how the US balances out Lockheed Martin-Boeing-Northrop & Grumman
 

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Army set to issue RFPs for Rs 16,000 crore air defence gun programme
The Indian Army is likely to soon issue requests for proposal (RFPs) for a Rs 16,000-crore air defence gun manufacturing programme to around 10 local firms (Source: IE)

The Indian Army is likely to soon issue requests for proposal (RFPs) for a Rs 16,000-crore air defence gun manufacturing programme to around 10 local firms. The 30-mm towed guns that will replace the Army’s obsolete air defence assets dating back to the 1970s were accorded approval in July 2015 by the Defence Acquisition Council (DAC) headed by defence minister Manohar Parrikar.
These 428 guns will be required to fire 500 rounds of ‘smart ammunition’ and 300 rounds of standard rounds per minute under all climatic conditions, even at night, and engaging aerial targets 4 km away. “The minimum firing rate of these guns needs to be 300 rounds of 30mm ammunition per minute to inflict significant damage to incoming aerial targets,” a military source said. They should also be capable of being transported swiftly to different locations, he added.
The proposed guns will replace the Army’s 1360 obsolete Bofors L 70 40mm single barrel and Soviet-era ZU-23-2 towed 23 mm twin-barrel weapon systems.
In May 2014, the ministry of defence (MoD) had sent a request for information (RFI) to local defence companies to develop replacements for these aged air defence guns.
The RFI to Bharat Forge, the state-owned Ordnance Factory Board (OFB), Larsen & Toubro, Punj Lloyd and Tata Power SED, followed the MoD’s inability in 2013 to import 428 air defence guns and 3.25 million ammunition rounds from overseas vendors for an estimated $440 million.
The RFI required the air defence guns to be indigenously developed under the buy-and-make (Indian) category of the MoD’s Defence Procurement Procedures (DPP). This necessitates technical collaboration between these five domestic manufacturers and overseas original equipment manufacturers.
In keeping with the MoD’s push for self-reliance, at least 50% of the components of the shortlisted air defence gun would need to be locally sourced.
The MoD’s earlier August 2013 tender for air defence guns, ammunition and technology transfer to build them locally that was issued among others to BAE Systems (UK), Bumar (Poland), Israel Aerospace Industries, Thales (France) and Rosoboronexport (Russia), was withdrawn in January 2014.
This occurred after all vendors declined to respond to the tender as they deemed the MoD’s qualitative requirements (QRs) for the air defence guns to be ‘unreasonable’ and ‘over-ambitious’.
Army chief General Dalbir Singh has declared that modernising the Army Air Defence Corps is a key priority area.
Also, the Indian Air Force is pursuing its Close In Weapon System (CIWS) programme to protect its bases by similarly inducting 244 Air Defence Guns and Radars for R7,200 crore. This programme too was cleared by the DAC in March this year and will include only local companies who in turn can form joint ventures (JVs) with foreign original equipment manufacturers (OEMs).
 

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What are the chances the old L70 guns are not discarded and put them on pick up trucks like how haji's are doing in Syria and Iraq.

Or even better, give some of them to northern alliance in Afghanistan. They will sure like to use them against taliban.
 

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Indian team for Russia in hunt for submarine


India and Russia will undertake advanced discussions this week on the leasing of a second nuclear attack submarine which have been ongoing for a while.

An Indian delegation is heading to Russia in the next few days to carry out talks on the issue, official sources told The Hindu.


On Tuesday, External Affairs Minister Sushma Swaraj and Deputy Prime Minister of Russia, Dmitry Rogozin chaired the 22nd session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) setting the agenda for the summit-level meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin next month.

Russia has already leased an Akula class nuclear attack submarine to India for 10 years as a package deal along with aircraft carrier Vikramaditya which was commissioned into the Indian Navy as INS Chakra in 2012.

Informed sources said that while Russia has offered another Akula SSN on lease, India is interested in a different and a newer class of boat. Officials expressed hope of concluding a deal very soon.

Submarines are considered the most potent offensive military platforms. While conventional diesel-electric submarines have limited range and endurance, nuclear powered submarines are free of such limitations.

Powered by a nuclear reactor which gives virtually unlimited range and endurance, the submarines can silently traverse oceans hunting for enemy vessels. Nuclear submarines are of two types, nuclear attack submarines (SSNs) and ballistic nuclear submarines (SSBN).

SSBNs are specifically meant to carry missiles armed with nuclear warheads and assure a nation’s second strike capability if attacked first by nuclear weapons.

India’s first SSBN Arihant powered by a 83 MW ncuelar reactor has been under sea-trials since 2009 and is all set for commissioning. At least two more boats of the same class are in various stages of construction.

Indigenous SSNs
In February last, the Cabinet Committee on Security (CCS) has approved the design and construction of six SSNs domestically. By the approval, the government had converted part of the ambitious 30-year, 24 submarine building plan from conventional to nuclear.

The plan is to design and build an indigenous SSN based on the experience gained from Arihant and they will be built at the same Submarine Building Complex in Vizag.

The programme is on track and the design phase is progressing as per schedule, officials said without elaborating further.

Senior Navy officials had in the past expressed confidence that they would be able to reduce the timelines for such a complex project which typically takes about 15 years.

Indian Navy currently operates thirteen conventional submarines and one nuclear attack submarine leased from Russia. In contrast, China operates five SSNs, four SSBNs aand over 50 conventional submarines.

http://www.thehindu.com/news/indian-team-for-russia-in-hunt-for-submarine/article9104537.ece
 

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What are the chances the old L70 guns are not discarded and put them on pick up trucks like how haji's are doing in Syria and Iraq.

Or even better, give some of them to northern alliance in Afghanistan. They will sure like to use them against taliban.
Good idea......we could mount some of these on old mahindra jeeps and offer these to Afghanistan National Army as an antipersonnel weapon. Better than tanks in built-up areas.
We'll need to provide ammunition as well.

We'll need some as reserve.
 

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MoD Tweaks Procurement Procedures

India's Ministry of Defence (MoD) has significantly increased the military's procurement powers to meet revenue or operational expenses, a decade after they were last reviewed.


Under the MoD's Delegation of Financial Powers to Defence Services (DFPDS) 2016 released on 6 September, the financial powers of the respective Vice Chiefs down to battalion and company commanders - and their naval and air force equivalents - had in some cases doubled and quadrupled to acquire assorted goods and services.

These powers cover procurement of items including rations, clothing, fuel, transportation, platform and vehicle maintenance and modifications, spares, and unit allowances among other sundry equipment, ordnance and miscellaneous items and facilities.

Source>>
 

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7th Pay Commission: Satisfied with Parrikar’s response on anomalies, says Arup Raha
The armed forces says they have raised ‘anomalies’ in the 7th Pay Commission with defence minister Manohar Parrikar and are satisfied with his response.

A file photo of defence minister Manohar Parrikar. Photo: Abhijit Bhatlekar/Mint
New Delhi: The armed forces on Thursday said they have raised “anomalies” in the 7th Pay Commission with defence minister Manohar Parrikar and were satisfied with his response that the issue will be resolved at the earliest.
The statement by the chairman of the Chiefs of Staff Committee (CoSC) Air Chief Marshal Arup Raha comes just days after the three services issued letters to their formations, saying they have asked the government to hold “in abeyance” the implementation of the CPC in view of the “unresolved anomalies”.
The forces argue that the anomalies lower the status and pay parity of forces vis-a-vis their counterparts in the police and civilian administration. Raha and Navy Admiral Sunil Lanba had also met with Parrikar on Monday over the issue.
The 7th Pay Commission anomalies in respect of the armed forces were discussed with the defence minister in detail by the service chiefs and the members of the Armed Forces Pay Commission Cell, a statement by Raha’s office said.
The defence ministry is “seized of all the issues and has assured to resolve them at the earliest. The Services are satisfied with the response,” it said.
The statement came amid reports that the forces were not happy with Parrikar’s reply.
 

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RDEL gets clearance for participation in defence projects

Reliance Defence and Engineering Ltd (RDEL) was known as Pipavav before Anil Ambani took over the company.
NEW DELHI: The Defence Ministry has cleared Reliance Defence and Engineering Ltd (RDEL) -- known as Pipavav before Anil Ambani took over -- for defence projects after a financial and technical capability of the company's shipyard was carried out in detail.
However, another private player ABG Shipyard did not make the cut, a move that assume significance as Defence Ministry gets set to open the bids for Rs 20,000-crore project of making Landing Platform Dock (LPDs), defence sources said.
The two yards, which had been shortlisted along with L&T for a navy order for four LPDs, had faced corporate debt restructuring and changes in management.
The move prompted the Defence Ministry in October last year to order for a "capacity assessment" report.
While L&T had tied up with Spain's Navantia for the contract, Pipavav had an agreement with French shipbuilder DCNS and ABG is tied up with US company Alion.
Sources said the financial records of both the yards were taken along with report from the principal banking lenders.
Also, the new cash flow injected into the yard by Reliance Infrastructure Ltd was also discussed in detail.
Following this, the Defence Acquisition Council (DAC) in its last meeting has cleared the capacity assessment of RDEL, defence sources said.
In March last year, Reliance Infrastructure together with its wholly-owned subsidiary Reliance Defence Systems Pvt Ltd, had agreed to acquire from the Promoters of Pipavav Defenceapproximately 18 per cent shareholding in the company at a price of Rs 63 per share, aggregating Rs 819 crore.
This was followed by an open offer. Post open offer, Reliance Infra now owns almost 35 per cent in the company.
Later on Pipavav Defence also announced its plans to exit the corporate debt restructuring (CDR) package as it would lead to improved financial flexibility and increased business opportunities for P-DOC.
Pipavav Defence has since been renamed as Reliance Defence and Engineering Ltd (RDEL).
READ MORE:
Reliance Defence and Engineering Ltd|Pipavav Defence|ABG Shipyard
 

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A French Solution to India’s Defence Acquisition Problem


By Laxman K Behera
In a move to streamline defence procurement and push the Make in India initiative, the Ministry of Defence (MoD) has constituted a nine-member committee under the chairmanship of Vivek Rae, former Director General (Acquisition) – DG (Acq). The committee’s Terms of Reference (ToR) require it to suggest a suitable organisational structure in light of international best practices. In this context, this Special Feature highlights the importance of studying the French procurement system.

India’s Defence Acquisition Framework: The Problems

India’s current acquisition framework consists, broadly, of a two-tiered structure, comprising the Defence Acquisition Council (DAC) and its subordinate bodies – the Defence Procurement Board, the Defence Research and Development Board and the Defence Production Board.

This structure was created in 2001 in pursuance of the recommendations of the Group of Ministers (GoM), which was set up to review the “national security system in its entirety”. The acquisition procedures, which are captured in a document known as Defence Procurement Procedures (DPP), predate the current structure and were first announced in 1992. The DPP has been revised several times, the latest revision being in June 2016.

Notwithstanding the establishment of structures and procedures, India’s defence acquisition has not progressed as desired. Among the failures of India’s defence acquisition framework has been its inability to ensure time-bound procurement thus forfeiting available budgetary resources, as well as vulnerability to import-centric pressures, corruption and controversies. In the last 10 years alone, the MoD has forfeited a cumulative total of Rs. 51,515 crore of the allocated budget (see Table 1). It is partly because of these unutilised funds that modernisation of the armed forces has been delayed inordinately.

In its 2007 audit report, the Comptroller and Auditor General of India (CAG) had noted that the basic problem of India’s defence acquisition framework was its dispersed centres of responsibility and lack of professionalism in acquisition.

1 Earlier, the GoM had suggested the creation of a “separate and dedicated structure to undertake the entire gamut of procurement functions … to facilitate a higher degree of professionalism and cost effectiveness in the process.”2 What has been created, however, is a decentralised system of procurement with little regard to professionalism, accountability and price discovery.

3 There are too many independent actors responsible for various acquisition functions that include drafting of technical features, issuance of tender document, undertaking of trials and evaluation, providing quality assurance and making payment to vendors. These actors are neither trained for their assigned roles nor are they given adequate time to build institutional capacity. Another major problem of India’s defence acquisition framework has been its lip service to indigenization / self-reliance, which is now being manifested in the current government’s Make in India initiative.

Although the DPPs of recent years have tried to buttress the self-reliance efforts through a host of measures,4 the acquisition system still harbours its step-motherly attitude towards indigenous industry, particularly private sector companies.5 The apathy towards domestic industry has been institutionalised by keeping the acquisition and production functions under two distinct power centres in the MoD.

Though a mere brick wall separates the offices of the DG (Acq.) and Secretary (Defence Production) – the latter is responsible for indigenous arms production by both state and private entities – their meeting grounds remain far apart. While the former is keen on awarding contracts (so as to utilise the allocated resources) irrespective of the source of supply, the latter is interested in obtaining some contracts for the domestic industry, particularly the state-owned/controlled Defence Public Sector Undertakings (DPSUs) and the Ordnance Factory Board (OFB). Since the basic objectives of these two high offices are not necessarily driven by indigenous-centric procurement, the focus on indigenisation has become subservient to acquisition. It is primarily because of the inherent conflict of interests between these two high offices that domestic industry has not received the necessary attention it deserves,6 and India continues to figure among the top arms importers in the world.

The French Acquisition System

In contrast to India’s defence acquisition system, several countries such as the UK, France and Australia follow a more centralised system of procurement. France, in particular, has been highly successful in promoting a domestic-industry-driven procurement system. It is one of the few countries in the world to have developed an advanced defence manufacturing base that is capable of producing the full spectrum of military items, including nuclear weapons. Nearly 90 per cent of France’s defence requirement is produced indigenously,7 and the French authorities openly boast that their system has “inspired other countries to copy”.8

It is no surprise that the Kelkar Committee, appointed by the MoD to suggest measures to promote self-reliance, in its April 2005 report, Towards Strengthening Self Reliance in Defence Preparedness, suggested an examination of the feasibility of emulating the French system. The present Vivek Rae Committee might also follow suit.

DGA: The Linchpin

At the fulcrum of French defence procurement is the Direction Générale de l’Armement (DGA), one of the three pillars of the Ministry of Defence (Figure 1). The DGA is responsible for a vast array of defence acquisition functions relating to research, development, test evaluation, production and export of defence equipment. The DGA’s predecessor, the Ministerial Delegation for Armament (DMA), was set up on 4 April 1961 by President Charles de Gaulle by merging service-specific armament directorates dealing with land, naval and air equipment and powder manufactures into one entity. The DMA was renamed as DGA in 1977.

Prior to the DMA’s formation, the fragmentation of the industry and its non-synchronisation with the genuine requirements of the defence forces was the main hurdle in France becoming a major armaments producer. France had earlier attempted to restructure procurement and armament production at various times but without any major success. In the 1940s, for example, the armament policy was centralised under one ministry. Thereafter, the responsibility was handed over to three different ministries, each dealing with the army, navy and the air force. This led to ad-hocism and duplication in research and production efforts, with the industrial entities often offering “dissimilar solutions for similar problems and demands”.

To arrest this trend, the post of Chief of Defence Staff (CDS) was created in 1948 and the services were tasked to report to him about their procurement plan. This did not improve matters as the industry “was not in synchronisation with the services”. Even as late as in the 1950s, the situation was still “characterised by a multitude of projects and prototypes, and of inter-service rivalry as well as intra-services isolation.”9 The French aerospace industry, which is now a major success story, was not internationally competitive way back in 1950.

Note: CEMA is responsible for “capability related decisions (both in terms of requirements and deployment)” whereas the SGA is responsible for “matters relating to budget, legal affairs and other support functions”.

The formation of the DMA/DGA was not without its problem of turf wars. The services, resenting a dwindling of their importance vis-à-vis the new agency, made fictitious complaints about the poor performance of tanks, vessels and aeroplanes.10 But De Gaulle had made his intent clear to the recalcitrant elements by placing the new agency’s head above any other civil or military officer in the hierarchy of the defence ministry.11 His prime motivation in creating a centralised procurement agency was rooted in his political ambition of achieving what many analysts say was a “small-scale version of a superpower status”, for which self-reliance in arms, particularly nuclear weapons, was the prime consideration.12

The merger of the various directorates into one agency required a “fundamental unification of the French Ministry of Defence and resulted in structures that have remained essentially the same to this day”13 even though the organisation has undergone several rounds of reforms over the years.

Since the late 1990s, owing to budget pressure and privatisation and Europeanisation of many industrial entities, the DGA has moved from performing its traditional role as a “project architect” to that of a “project manager”.14 It has shed many of its original roles of designing and manufacturing weapons on its own to assume a role of actively managing industry and technology through efficient methods of contracting. It has nonetheless retained a great deal of expertise in independently evaluating weapon systems through a nation-wide network of testing centres.

The DGA has three primary missions:
(i) equipping the armed forces;
(ii) preparing the industry to meet future requirements, and
(iii) promoting arms exports.

With regard to equipping the armed forces, the DGA is responsible for design, acquisition and evaluation of the systems while working on a principle of the “entire life of the programmes”. For preparing the industry to meet future requirements, the DGA is responsible for assessing future threats and risks and setting the technological and industrial goals to meet those contingencies.

In these efforts, the DGA identifies the key technologies and provides R&D funding to the industry/university/science and technology centres for development. Its R&D assistance to the industry for futuristic technology development amounted to €727 million in 2015. The mission of promoting arms exports has probably been the greatest symbol to the rest of the world of DGA’s success story. Its export order amounting to over €16 billion in 2015 far exceeded the €11 billion that France spent in procuring weapons for its armed forces. The French defence industry earns anything between 25 and 40 per cent of its turnover from exports.15

The DGA’s organisational strucure reflects the afore-mentioned objectives with an arrangment that is divided into various directorates and enabling layers (see Figure 2 and Annexure). The Operations Directorate is the largest and deals with delivery of weapons. The Directorate for International Development is responsible for international collaboration and exports. The Directorate for Modernisation and Quality is principally responsible for test evaluation of equipment before their induction. In 2015, it conducted about 6.5 million hours of test evaluations.

What Makes the French System Special?

DGA has several distinctive features that make it special. Foremost is its unique standing in the French governmental system. The DGA chief reports directly to the defence minister. This makes DGA loyal to the defence minister, and, in turn, to the prime minister and the president.16 Within the defence ministry, the DGA chief, who since 1977 is though technically in the same rank as the top military leadership, enjoys more powers in so far as the weapons programme is concerned. DGA’s direct reporting to the higher political authority and its supremacy over the military in the weapons programme is a rare phenomenon. This gives the agency a “tremendous prestige within the French Government”,17 which in turn helps it attract the “nation’s best and brightest scientific engineering talent”.18 As discussed later, it is this talent base that enables DGA to perform exceptionally well.

A second notable feature of the DGA is the highly professional character of its 9,800 staff, over 51 per cent of whom are managers and professionals.19 This character has been inbuilt both in recruitment and professional satisfaction. At the top of the DGA hierarchy is the corps of Armament Engineers (a title bestowed upon project managers). They are all drawn from “one of the Grandes Écoles, preferably the most desirable of them all, the École Polytechnique”.20 The École Polytechnique, set up in 1794, is functioning under the Ministry of Defence since 1970.21 It has no precise comparable institution anywhere else in the world. It may be noted in this context that the US, which has the largest number of procurement officials (more than 150,00022) in the world, is struggling to attract the best talent.

As one analyst puts it by way of a caution to the US government, the recruitment from the best Grandes Écoles is something “comparable to restricting recruitment of procurement officials to the graduates of a handful of engineering schools such as MIT and Caltech”,23 two of the finest American technical universities in the world. For France, however, recruiting the best talent is not an end by itself. The DGA develops their “expertise through assignments in Industry and by appointing them to the same programme for many years.”24 On an average, a programme manager, who rises to that post after having 15 to 20 years of experience, is usually given a four-year tenure on a particular assignment.

It is the technical and professional competency of the corps of Armament Engineers that has played the most significant role by way of formulating a “coherent administrative system” that paved the way for what analysts term the “golden age of the French military-industrial complex”.25 It took only 20 years for them to set the foundation for France to establish a strong and internationally competitive defence industry. More creditably, the establishment of a vibrant industry took place under “little public opposition”,26 indicating public acknowledgement of the DGA’s integrity in handling a sector like the defence industry, which is generally riddled with many controversies.

It is also to the credit of these engineers that the French government was largely successful in containing the weapons programme in the post-Cold War era of dwindling defence spending. The DGA’s spectacular success in managing the weapons programme within the stipulated budget in the aftermath of the Cold War is something that deserves special mention.

At the height of the Cold War, the defence departments of many countries such as the US and France had moved away from Fixed Price (FP) contracting to Cost-Plus (C+) contracting. In an FP contract, the vendor agrees to supply specified goods in certain quantity and quality at a predetermined price. In a C+ contract, in contrast, the vendors’ profit margins are directly proportional to the production-related costs. Despite its many advertised “benefits”, in the C+ system the vendors have little incentive to control the production cost or have the incentive to inflate it so as to maximise profit. In the French experience, this led to cost overruns of many a weapons programme, seriously cutting into the overall procurement budget. The problem of cost overruns was compounded in the aftermath of the Cold War by a sharp reduction in defence expenditure.

Between 1990 and 1997, the French procurement budget fell by more than 20 per cent, with the government halting several programmes and reducing the budget of some others.27 Faced with the tightening budgetary situation, DGA officials devised an innovative solution to arrest cost overruns in many high-profile programmes. Instead of C+ contracts, the DGA returned to FP contracting but with a “distinct Gallic twist”.28 The new method of contracting came to be defined as “Responsibility Principle”.29 In essence, it “means that those who are responsible for failing to meet contractual obligations, whether government or industry, must generally pay the costs.”30

This required a great deal of investment on understanding the complexities of the projects and mitigating the risk factors ex-ante. The new model was a great success in limiting cost overruns. As clearly brought out by Kapstein and Oudot, in 48 contracts31 signed during 1994-2005 by the DGA with 18 firms, the average cost overrun was a mere 4.5 per cent. The significance of this cost overrun is gauged by the authors by contrasting it with an average cost overrun of 26 per cent as reported in several weapons programmes undertaken by the US Department of Defense.32

The DGA’s success in limiting cost overruns can be attributed to the project managers’ technical capability in anticipating the risks ex-ante and devising the contract suitably. The robustness of the contracts can be seen from the very few changes made to them after they were signed. In total, 133 deviations were reported in 48 contracts, representing, on an average, 2.5 deviations per contract.33

A third feature of the French system is its mature and robust procurement process. The procurement process gets its direction and overall guidance from the national security objectives as enunciated in the defence white paper, which has been periodically announced since 1972. The fourth of the series was announced in 2013 by the administration of President Hollande. The latest white paper sets out the three clear strategic priorities (protection, deterrence and response) besides laying down the force structure and quantum of resources that would be available.34

From the defence white paper follows the Projet de Loi de Programmation Militaire (LPM), the six-year military expenditure plan. The LPM is approved by the National Assembly and Senate and therefore enjoys a degree of legislative sanctity. The latest LPM for the years 2014 to 2019, announced in August 2013, envisages a total expenditure of €190 billion, of which €102.7 billion is earmarked for the French defence industry.35 The LPM also covers new programmes to be launched and the priorities for the defence procurement authorities.36

The procurement projects included in the LPM are selected through a rigorous process undertaken under the supervision of the Chief of Defence Staff (CDS). The projects are selected keeping in view the country’s budgetary constraints and defence requirements as a whole. The individual services are nevertheless invited to articulate their requirements, but the final decision rests with the CDS. For instance, in a recent development, the air force’s projected requirement of 20 multi-role tanker aircraft was reduced to 14 by the CDS through a scientific calibration that took into account the threat scenario and the superior capability of the new platform over the ones being replaced.37 In its assessment of final requirements, the CDS was amply supported by the designated DGA-owned laboratories which are used for simulation purposes.

In the French scheme of things, the operational requirements are expressed by the CDS. Once those requirements are expressed, the DGA constitutes an Integrated Programme Team (IPT), which then becomes responsible for the acquisition tasks that include defining technical specifications and managing contracts with the industry for realisation and eventual deployment into active service. In its acquisition task, however, the DGA/IPT is assisted by the Ministry Investment Board (MIB), a high-level decision-making body chaired by the Defence Minister.

In discharging its functions, the MIB is assisted by two sub-committees, one consisting of members from the armed forces and the other specialists from the DGA. The former is “charged with advising on capability needs”, whereas the DGA committee is responsible for “commenting upon whether programmes can be delivered in the timescales and the budget available”.38 This arrangement makes the minister-led MIB responsible for “trading off aspirational objectives against practical concerns”.39

A typical equipment acquisition process goes through six distinct stages, as shown in Figure 3. The MIB is responsible for taking decisions at five different stages, beginning with a decision to select from among various alternatives to meet a particular capability gap. Post vetting of Orientation (in which a feasibility study is undertaken to identity the right solution to a particular capability gap), the IPT assumes full responsibility for project delivery. It is the IPT which is at the heart of the DGA’s success in effective project management. Being a multi-disciplinary body, the IPT draws its technical, contractual and management experts from the vast pool of expertise both from DGA and the armed forces.

For military personnel, entry into the IPT is not an ordinary posting to be determined by the services themselves. Every entry is based on merit and through a rigorous competitive process. Although uniformed personnel do not stay longer, unlike the DGA’s own staff, they are nonetheless encouraged to stay and even granted in-situ promotion while remaining in the DGA. The whole approach is to manage the weapons programmes with upmost professionalism, the hallmark and secret of the French defence acquisition system.

What Can India Learn from the French System?

France’s success in devising a sound domestic-industry-driven procurement system has much to offer to a country like India, which has been struggling for long to achieve the same objectives. Some of the lessons that India can borrow from the French system are elaborated below.

The biggest lesson that India can borrow is France’s integrated and centralised procurement structure, which has the dual responsibility of arms acquisition and defence industrial development. The French understood the crucial linkage between these two functions and combined them by creating the DMA/DGA in 1961, which proved its mettle by establishing a robust procurement structure and an internationally competitive arms industry.

Creating a DGA-like structure in India would mean combining several functions currently undertaken by different agencies such as the service headquarters (responsible for defining the technical features of weapon systems and undertaking trial evaluation), Director General Quality Assurance (quality assurance), the office of DG (Acq) (contract negotiation) and Department of Defence Production (industrial development) and DRDO (sponsoring research on futuristic technology) under one administrative head.
Creating such an agency is, however, likely to face stiff resistance, as happened in France. Overcoming such resistance, however tough, is necessary for the long-term benefit of expeditious acquisition while promoting defence industrial development holistically.

An equally important lesson is about the professionalism of the acquisition cadre. Unlike France, India does not have any dedicated engineering colleges under the control of the MoD nor does it have a system of hiring outside experts to deal with acquisition. Functionaries are drawn from the civil bureaucracy and from the armed forces. More often than not, they lack experience in acquisition matters, let alone an opportunity to develop an in-depth understanding of the complex legal, contractual and technical matters because of their short tenure in office.

Such lack of professionalism may prove a big hurdle in spearheading the Make in India initiative, under which the MoD intends to award big contracts to the local industry under preferential terms and under the crucial “Make” procedures. Unlike the direct purchase contracts (which was the norm till recently), the contracts on preferential terms and of “Make” nature would involve a lot more risk assessment ex-ante, which can only be undertaken if the functionaries involved are real professionals. Keeping this in view, the government may consider the creation of a dedicated acquisition cadre in the various acquisition disciplines.

Last but not least, India has a lot to learn from France’s robust procurement process which is characterised by a clear articulation of national security objectives, approved procurement and investment plans, and avoidance of wasteful and costly procurement. Unlike France, India does not produce a defence white papero_O nor does it have a CDS as an arbitrator of the military requirements of the nation as a whole. This has resulted in individual services articulating their own versions of threat perceptions and devising their own procurement plans without giving much attention to the other services’ requirements. The lack of jointness among the plans has resulted in ad hoc procurement and at times duplication of capability creation. This is undesirable not only from the point of view defence preparedness but also from the perspective of managing scarce resources.

http://www.idsa.in/system/files/comments/sf_french-india-defence-acquisition_lkbehera.pdf
 

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Indian Company MKU (a NATO Supplier as well) at African Aerospace and Defece 2016

AAD 2016
Online Show Daily News
Africa Aerospace & Defence Exhibition
14 - 18 September 2016
Air Force Base Waterkloof, Centurion, South Africa



Mku showcases its ballistic protection solutions and electro-optics devices at AAD 2016
The Indian company MKU a leading manufacturer and supplier of comprehensive balistic protection solutions (for personnel and platforms) and electro-optic devices like night vision devices and day optics is showcasing some of its products and technologies at AAD 2016.

The Mku's stand at AAD 2016 (Photo Army Recognition)

With over 30 years of experience Mku has gained the trust of many Armed Forces in the world. The company has developped over 100 armoured solutions (body armor, helmets, tactical shield,...) for different types of threats and has provided protection for over 2 millions soldiers globally. It has also designed and delivered light weight armouring solutions for over 2000 platforms: land vehicles, aircrafts and naval vessels.
The Mku products are used and trusted by more 230 forces in over 100 countries including the UN and NATO.

The Mku's stand at AAD 2016 (Photo Army Recognition)

@Kunal Biswas @sorcerer
 

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Tata-Lockheed Martin Joint Venture Delivers 50th C-130J Super Hercules Empennage

C-130J Super Hercules
A Tata-Lockheed Martin Joint Venture has delivered 50th C-130J Super Hercules Empennage.
TLMAL, a joint venture between Tata Advanced Systems Limited (TASL) and Lockheed Martin Aeroframe Corporation, was established in 2010 and it began production of C-130J Super Hercules airframe components beginning in late 2011.
Apart from exemplifying India's "Make in India" objectives, TLMAL is also the single global source of C-130J empennage assemblies included on all new Super Hercules aircraft produced in the USA.
Empennage assemblies produced by TLMAL, include the aircraft's horizontal and vertical stabilizers along with major edges and tip assemblies.
The TLMAL team also has manufactured 28 sets of C-130J center wing box components that include the front and rear beam assemblies, formers and trailing edge sections.
The joint venture has been a great example of successful US, India Industrial partnership and a testimony to Lockheed Martin's and Tata's intent of developing aerospace manufacturing in India," said S. Ramadorai, TASL chairman.
The C-130J Super Hercules is the current variant of the C-130 Hercules, which has been in production for more than 60 years.
Currently, the Indian Air Force operates a fleet of five C-130J-30s and has ordered an additional six Super Hercules.
 

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From the Larsen and Turbo's Official Website:
New Construction - Defence Shipbuilding
Pictures
L&T has undertaken complex mission-critical projects in all strategic sectors towards Nation Building. In the case of defence, L&T undertakes design and development of equipment and systems as well as platforms.
L&T is proud to have been associated with the Design Engineering and construction of India’s first nuclear powered submarine, INS Arihant, demonstrating multi-disciplinary capabilities for Engineering and construction of complex Naval platforms.
With a focus on modular design and construction, the major strengths of L&T in defence shipbuilding are:
  • In-house Design Centres for Warships and Submarines, equipped with latest Design tools including Virtual Reality Studio
  • Design and development of platform specific equipment and systems
  • State of the art yard infrastructure at Kattupalli and Hazira
  • Trained Manpower
  • Multi-site Project Management skills and financial strength

Design of Naval ships are undertaken in-house and we have developed basic designs of Interceptor Boats, Offshore Patrol Vessels, Corvettes etc. which can be adapted to customer requirements. 3D Modelling integrated with Product Lifecycle Management and other Design and Analysis software suites enable accuracy, revision control and output aligned with yard infrastructure.
Currently, L&T is executing a project for construction of 54 Interceptor Boats for Indian Coast Guard. Designed in-house with waterjet propulsion and aluminium hull, these boats have a speed of over 45 knots and excellent manoeuvrability.
On the equipment front, the following marine systems have been developed and supplied for different classes of ships:
  • Marine Engineering: Steering Gear, Stabilisers, Propulsion shafting for Ships and submarines, special heat exchangers, Thrust Blocks, Special Seals, Sterngear sub-systems, Line shaft Bearings
  • Weapon Launch Systems: Torpedo Launching systems, Rocket Launchers, Anti-Submarine Rocket Launchers, BrahMos inclined and vertical Missile launchers. Dhanush weapon system, Fire Control Systems for these launch systems.
  • Sensor Systems. Revathi Radar stabilised platforms, Winch handling systems fortowed array sonars ATAS, ATDS, etc.
  • Control Systems: Combat management System, Integrated Platform Management System, Automated Power Management System etc.
  • Electrical systems: IPMS, APMS, IBS, Ship degaussing systems, Main (AC/DC) switchboards, distribution Boards, starters, ACOS, control panels etc.
  • Auxiliary systems. Helicopter landing suite, Pad-eye for Replenishment At Sea equipment, blast-proof hanger shutters, Boat Davits, special pressure proof hatches and doors etc.
  • Communication Systems: Special Modems, VHF / UHF Linking Equipment, secure quick communication Interface for interfacing with foreign Navies during joint exercises

In addition to design, engineering and construction of warships, L&T offers lifecycle management and mid-life upgrades for warships, submarines and auxiliary vessels. The Navy & Coast Guard therefore secures total solutions from concept design to delivery and in-service maintenance support.
 

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Pay only Rs 1 per day :: The Army Welfare Fund is a Reality, not a Hoax

Please SHARE this article and Help Us spread awareness on this great Initiative by our PM.
- - - - - - - - - - - - - - -

Many of you might receive the following text or WhatsApp message and think it’s a hoax.
Except, it isn’t.

Pay only Rs 1 per day (Rupee one only). Like never before, the Modi government has started a new scheme exclusively for the Indian Army Battle Casualties and Weapon Purchase. The government has opened a bank account where people can donate funds directly to the Army Welfare Account which will be used for purchasing weapons for the Indian Army and providing facilities for war casualties. People had suggested to the government to open a bank account to collect funds exclusively for battle casualties and purchasing weapons for the army, the Modi government has accepted the suggestion and opened an account in Syndicate Bank, New Delhi for the same.

The above is only a part of the message, one that further goes on to give bank details where a person can deposit money for this scheme.

The most immediate psychological response to something like this would be thinking that it’s a racket of some sort.

However, the Indian Army on Tuesday took to Twitter to put out a clarification:
As is clear from the army’s clarification, the text message is not a hoax, but it’s also not entirely true.

While the text says the money received will fund weapons for the Indian army and facilities for the war casualties, the army’s clarifications explains that it will be used for financial assistance to widows of battle casualties, their next of kins and dependents.

Anup Sinha, retired colonel and director of the fund’s accounts section also put out a notice explaining the rationale and motive behind the scheme:

The Army’s National Defence Fund ::
The Indian Army also has something called the National Defence Fund. Set up in 1962, the fund is used for the welfare of the members of the Armed Forces (including Para Military Forces) and their dependents, according to the website www.pmindia.gov.in/national-defence-fund.

According to the website, the fund is “entirely dependent on voluntary contributions from the public and does not get any budgetary support.”

- - - - - - - - - - - - - - -
A/c Name : Army Welfare Fund Battle Casualties
A/c No. : 90552010165915
Bank Name : Syndicate Bank
Branch : South Block Branch, New Delhi
IFSC Code : SYNB0009055
- - - - - - - - - - - - - - -
Officially approved by the Integrated HQ of Ministry of Defence (Army).


PLEASE ADD THE ABOVE ACCOUNT AS A BENEFICIARY AND START DONATING TO THE FAMILIES OF YOUR LOST BROTHERS WHO DIED PROTECTING YOU IN BATTLE.


http://www.defencenews.in/article/P...my-Welfare-Fund-is-a-Reality,-not-a-Hoax-8223
 

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Pay only Rs 1 per day :: The Army Welfare Fund is a Reality, not a Hoax

Please SHARE this article and Help Us spread awareness on this great Initiative by our PM.
- - - - - - - - - - - - - - -

Many of you might receive the following text or WhatsApp message and think it’s a hoax.
Except, it isn’t.

Pay only Rs 1 per day (Rupee one only). Like never before, the Modi government has started a new scheme exclusively for the Indian Army Battle Casualties and Weapon Purchase. The government has opened a bank account where people can donate funds directly to the Army Welfare Account which will be used for purchasing weapons for the Indian Army and providing facilities for war casualties. People had suggested to the government to open a bank account to collect funds exclusively for battle casualties and purchasing weapons for the army, the Modi government has accepted the suggestion and opened an account in Syndicate Bank, New Delhi for the same.

The above is only a part of the message, one that further goes on to give bank details where a person can deposit money for this scheme.

The most immediate psychological response to something like this would be thinking that it’s a racket of some sort.

However, the Indian Army on Tuesday took to Twitter to put out a clarification:
As is clear from the army’s clarification, the text message is not a hoax, but it’s also not entirely true.

While the text says the money received will fund weapons for the Indian army and facilities for the war casualties, the army’s clarifications explains that it will be used for financial assistance to widows of battle casualties, their next of kins and dependents.

Anup Sinha, retired colonel and director of the fund’s accounts section also put out a notice explaining the rationale and motive behind the scheme:

The Army’s National Defence Fund ::
The Indian Army also has something called the National Defence Fund. Set up in 1962, the fund is used for the welfare of the members of the Armed Forces (including Para Military Forces) and their dependents, according to the website www.pmindia.gov.in/national-defence-fund.

According to the website, the fund is “entirely dependent on voluntary contributions from the public and does not get any budgetary support.”

- - - - - - - - - - - - - - -
A/c Name : Army Welfare Fund Battle Casualties
A/c No. : 90552010165915
Bank Name : Syndicate Bank
Branch : South Block Branch, New Delhi
IFSC Code : SYNB0009055
- - - - - - - - - - - - - - -
Officially approved by the Integrated HQ of Ministry of Defence (Army).


PLEASE ADD THE ABOVE ACCOUNT AS A BENEFICIARY AND START DONATING TO THE FAMILIES OF YOUR LOST BROTHERS WHO DIED PROTECTING YOU IN BATTLE.


http://www.defencenews.in/article/P...my-Welfare-Fund-is-a-Reality,-not-a-Hoax-8223
How much would I need to donate to get the government to buy F-35s ?

I doubt I have that kind of money

:biggrin2::biggrin2::biggrin2:

Jokes aside,this is really great.
Crowdfunding potential from patriotic Indians is huge
 

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