Indian defence industry exports watch

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Ban period for blacklisted defence companies reduced to five years
The new rules will apply to both Indian and foreign firms and agents or employees of companies found to be directly involved in the corrupt act will be barred for life from dealing with the ministry of defence.
NEW DELHI: In its new policy for penalties on defence companies for indulging in corrupt practices, the government had reduced the ban period for serious defaulters to five years from the existing 10 and has given the forces flexibility on dealing with barred entities in case the equipment required is of a critical nature.
The defence ministry quietly released its new policy titled ‘Guidelines of the Ministry of Defence for Penalties in Business Dealings with Entities’ on Monday that says its aim is to ensure probity and transparency into defence deals.
The new rules will apply to both Indian and foreign firms and agents or employees of companies found to be directly involved in the corrupt act will be barred for life from dealing with the ministry of defence.
“The procurement process needs to proceed without loss of credibility and therefore there is a need to put in place appropriate measures to deal with acts of impropriety,” the policy, which has been in the works for almost two years reads.
The policy will apply to companies accused of impropriety and could be extended to their allied firms as well, such as subsidiaries and partners with the approval of the defence minister.
Listing out six reasons for which companies can get banned, the policy says that violating the integrity pact, indulging in corrupt practices and endangering national security would be treated with most seriously while non-performance and any other grounds would invite a less harsh penalty.
Foreign companies will initially be suspended for six months if the defence ministry feels that allegations of corruption against them are serious. This ban will be reviewed every six months and would in most cases not extend beyond a total period of five years. This is a major change from the earlier policy when companies were debarred for a minimum period of 10 years for corrupt practices.
Such companies will not be allowed to participate in defence ministry orders and the ban can be extended to their partner companies as well by the defence ministry. For the lesser offence of nonperformance, the ban would not exceed three years.
Flexibility has, however, been given to the forces to deal with even banned entities if the need is critical. Banned companies, for example, may be allowed to sell a product if there is no alternative source of supply. Also, in cases where the company has already transferred technology, the product line will not be impacted. The defence ministry will from now on maintain an updated list of banned or suspended entities.
The new policy has been brought out after a crippling blow to the armed forces over the past five years due to a number of foreign companies been banned for corruption. In the resultant situation, the armed forces were left with limited choice to choose suppliers as several large companies were on the blacklist.
 

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Godrej delivers 50th motor casing for surface-to-air missile
Godrej & Boyce Executive Director and President Anil G Verma said motor casing would be the 180th hardware which is ready for serial production.
BY: PTI | MUMBAI |Updated: November 25, 2016 9:33 PM
Godrej & Boyce on Friday said it has delivered the 50th motor casing for the long range surface-to-air missile (LR-SAM) to the Defence Ministry for serial production. The company also said it inaugurated a new facility for manufacturing rubber and composite materials for the defence sector.
G Satheesh Reddy, Scientific Advisor to the Defence Minister, received the motor casing at an event here. Speaking at the event, Reddy said Godrej & Boyce has been contributing significantly towards the defence and space programmes.
“We anticipate and look forward to such significant contributions from other domestic manufacturers as well,” he maintained.
Godrej & Boyce Executive Director and President Anil G Verma said motor casing would be the 180th hardware which is ready for serial production. The Godrej Group has been consistently contributing to strengthen the nation’s defence and aerospace capabilities.
“For LR-SAM, we started the development (of the device) in 2010 and have over time established a set up for serial production for the same. This demonstrates our commitment towards indigenous manufacturing for defence and space programmes,” Verma said.
He said the new facility inaugurated today will help them enter the non-metallic side of the aerospace industry which in turn will enable them to manufacture more value-added assemblies and systems.
The facility will make rubber and composite components such as ablative lining for solid motor casings, reinforced airframe seals, conductive seals, aeroengine components, composite motor casing, sandwich panels (honeycomb/foam, ceramic matrix composite and other high-temp aeroengine parts.
The diversified Godrej Group started operations in 1897 by manufacturing high quality locks and launched Godrej Aerospace in 1985.
For long it has been supplying many complex equipment such as liquid propulsion engines for PSLV and GSLV rockets, thrusters for satellites and antenna systems to the ISRO.
Godrej has also contributed to prestigious Chandrayaan and Mangalyaan missions. In the defence space, Godrej & Boyce also manufactures riveted structures, tankages, engines for IGMT-5 missiles and actuators for aircraft.
The company has contributed towards the development of famed Prithvi Missile, which uses a liquid engine and the firm has so far supplied 60 engines of these missiles.
Over the years, Godrej has invested substantially into developing the BrahMos facility with nearly Rs 100 crore being invested in setting up serial production of the missile. It now supplies six assemblies for the supersonic cruise missile.
 

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75 defence industrial licenses issued to private firms in last one year: Govt

NEW DELHI: The government has issued 75 industrial licenses to private manufacturers in defence sector during the last financial year, Parliament was told on Friday.
"Seventy five Industrial Licenses have been issued in defence sector during the year 2015-16 to private defence equipment manufacturers with proposed investment of Rs 4,842 crore," Minister of State for Defence Subhash Bhamre informed the Lok Sabha in a written reply, adding 38 applications for licenses for manufacture of defence items were received from private companies during 2014-15.
Defence products list for industrial licensing excludes large numbers of parts and manufacturing procedures like forging etc. from the purview of industrial licensing, he said.
"Similarly, dual use items, having military as well as civilian applications (unless classified as defence item), will also not require Industrial License from defence angle," he added.
 

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MoD procurements from Indian vendors over 70 percent

NEW DELHI: The Defence Ministry has procured over 70 percent of its requirements from Indian vendors in the 2016-17 fiscal, the government told the Lok Sabha on Friday.
Of the total procurements worth Rs 32,073 crore, Indian vendors supplied equipment worth Rs 22,794 crore, that is about 71 per cent of the total, Minister of State for Defence Subhash Bhamre said in a written reply.
There has been a steady decline in defence procurements from foreign vendors in the last three years.
Between 2014-17, procurements from foreign vendors came down by eight per cent. Simultaneously, the procurements from Indian vendors went up from 62 per cent to 71 per cent, he added.
 

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Self Sufficiency In Defence Manufacturing

Pinaka Multiple Barrel Rocket Launcher developed by the Defence Research and Development Organisation (DRDO) for the Indian Army
The requirements of defence equipment for the Indian Armed Forces are met through both indigenous production and imports. During the last two financial years (2014-15 and 2015-16), 108 contracts with total value of Rs.1,12,736.81 crore have been signed for capital procurement of defence equipment, out of which 73 contracts involving a value of Rs.72,303.34 crore were signed with Indian vendors. During 2014-15 and 2015-16, the Defence Acquisition Council has accorded Acceptance of Necessity (AON) to 114 capital procurement cases involving an estimated cost of Rs.2,25,022 crore of which 85 cases involving Rs.1,60,362 crore are under the Buy (Indian), Buy & Make (Indian) and Buy & Make categories.
Defence Research and Development Organisation (DRDO), an R&D Wing of Ministry of Defence, is primarily involved in design and development of strategic, complex and security sensitive systems in the fields of armaments, missiles, unmanned aerial vehicles, radars, electronic warfare systems, sonars, combat vehicles, combat aircraft, sensors, etc., for the Armed Forces as per their specific Qualitative Requirements. DRDO also interacts with private companies and academia right from inception of the projects. Most of the DRDO developed technologies / systems are equivalent to or better than their counterparts worldwide.
In so far as the self-sufficiency in Defence is concerned, various indigenously designed and developed weapon platforms, viz, Advanced Light Helicopters (ALH), Light Combat Aircraft (LCA), Akash Missile Systems, Multi Barrel Rocket System Pinaka, MBT Arjun Tanks, Sonars, etc., have been successfully inducted into the Services.
Government has launched the Technology Development Fund, accorded highest preference to Buy (Indian-IDDM) category of acquisition, and completely revised the Make procedure in the Defence Procurement Procedure-2016 (DPP) in order to promote indigenous design, development and manufacturing through Indian defence industry. Apart from these, the Government has taken steps for liberalisation of the FDI policy & Industrial Licensing policy, simplification of export procedures, creating level playing field for Indian private and public sector companies and streamlining of offset guidelines, which are likely to result in greater impetus to defence research and innovation, and thus lead to self-sufficiency in defence in the country.
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Credit: IDN
 

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[Worth Reading]
Interview: Jayant Damodar Patil, Senior VP for Defense and Aerospace, Larsen & Tourbo

By: Vivek Raghuvanshi, November 29, 2016 (Photo Credit: Larsen & Toubro)
NEW DELHI — India’s largest private sector engineering conglomerate, worth $16 billion, with 5 percent of its revenue coming from defense deals, aims to triple its defense business over the next five years.
Larsen & Tourbo (L&T), however, says since its defense-related numbers are not in the public domain, quantifying the same at this stage would not be feasible.
L&T entered the sector in the 1980s, but after the defense sector in India opened its arms to new business in 2001
, L&T evolved from research and product development to serial production while continuing to build indigenous products and participate in co-development mode with state-owned Defence Research and Development Organization (DRDO).
The company’s head of aerospace and defense, Jayant Damodar Patil, in an exclusive interview with Defense News, shared the secret of L&T's success in the defense sector and its future plans.
How is the journey post opening the defense business to private players?
The lost hopes of industry is seen reviving over the last two years with the Ministry of Defence (MoD) leadership making transformational changes in the latest version of defense procurement procedure (DPP-2016) with an intent to simplify, demystify defense acquisition, and evolve and implement a trust-based partnership model with private industry.
The conducive policy framework and environment are truly encouraging, and it is now up to the implementation layers of the [Indian] government to put the stated changes into practice and treat the private sector inclusively and on par with [the] government-owned sector in a level playing field.
How was L&T's experience post opening up the defense sector?
As far as L&T is concerned, post opening up of the defense sector in 2001, we evolved from R&D [research and development] and product development to serial production while continuing to build indigenous products of our own as well as in co-development mode with DRDO. We invested the past decade in taking a number of our products to serial production level and creating new factories, infrastructure, capabilities and skills.‎
Today, we produce 17 systems in serial production and the number is continuously growing. Concurrently, we developed capabilities and capacities of building system-of-systems — say, for instance, a submarine, a ship, complete communication solution; a battle tank or a complete weapons system, from target acquisition system to shooters. While we do that, we also work with all the DPSU [Defence Public Sector Undertakings] system integrators in Tier 1 mode on weapon and engineering systems for land and naval warfare domains and major subsystems for [the] air warfare domain.
Is Make in India for the defense sector realistic?
The current leadership has put defense manufacturing at the core of its Make in India initiative, and focus has shifted to self-reliance in this strategic sector while concurrently pursuing defense exports to balance the imports.
Concurrent policy changes including liberal Foreign Direct Investment policy; relaxed licensing norms; new offset guidelines; defense export policy; [and a] revamped and simpler DPP-2016 have been put in place to give a push to [the] Make in India initiative.
On the acquisition side, the Defence Acquisition Council has, in the recent past, cleared major programs in naval platforms, artillery systems, air defense systems, and aircrafts and helicopters for Indian companies to participate, and there are more programs in [the] pipeline. Thus, there has been a visible and significant shift towards promoting domestic procurements, although there is some time until these start creating revenues for defense players.
Such policy initiatives, complemented with a speedup of acquisition process, would certainly ensure the success of Make in India, contribute immensely to India’s GDP [gross domestic product], cut out present dependence on exports and accomplish India’s ambition of becoming a regional superpower.
How L&T can manufacture competitive defense products?
L&T has participated in [a] large number of the global tenders for complex weapon systems, radar systems and platforms. To give you an example of our competitiveness, the K9 [Tracked Self-Propelled Gun] system developed by L&T in collaboration with Samsung Techwin (Hanwa) of South Korea emerged the only gun system to qualify the user-evaluation trials, meeting the stringent technical requirements in a global competition — a first in many decades in India. Although this is a "buy global" program, we are prime contractors with above 50 percent work share, and the guns would be integrated and delivered from our factory at Talegaon near Pune.
When it comes to systems developed in partnership with DRDO, the level of indigenization achieved in various weapon systems and engineering systems developed by L&T have been in the range of 75 percent to 95 percent, way above the prescribed minimum indigenous content required as per MoD procurement categories.
The high[ly] indigenous content has been synonymous with higher competitiveness.
What are your in-house defense R&D initiatives?
Our Product & Technology Development Centre (PTDC) focuses on new product development and development of improved technologies for system upgrades including mechanical systems, engineering equipment and systems, secure communication, avionics, sensors, defense electronics, and submarine and warship designs. The PTDC focuses specifically on the technology domains of welding and metallurgy, advanced composite materials, heat transfer, hydrodynamics, computational fluid dynamics, stress analysis, controls and drives, microwave and RF [radio frequency], embedded systems, high availability systems, and military communication systems.
In-house-funded initiatives have been taken for development of gun technologies, radar, unmanned autonomous systems (UGVs, UWVs and UAVs), fire control systems and mobility solutions. The center is also engaged in developing solutions for the three Make [in India] programs of the Indian MoD relating to tactical communication systems (TCS), battlefield management systems (BMS) and futuristic infantry combat vehicle (FICV).
The center is also working in collaboration with DRDO towards realization of an air-independent propulsion (AIP) system for submarines.
How robust are your defense production capabilities?
[In regard to] production capabilities, L&T’s aerospace and defense operations span four dedicated and world-class production facilities. These include our state-of-the-art Greenfield Shipyard at Kattupalli (near Chennai) set up in addition to a shipyard at Hazira; Strategic Systems Complex at Talegaon (near Pune), which undertakes assembly and integration of land and naval weapon systems, land and naval engineering systems, artillery systems; Precision Manufacturing and Systems Complex at Coimbatore, which produces precision airframe assemblies, components and subsystems for missiles and aerospace; and our Strategic Electronics Centre at Bangalore, which undertakes production of military communication systems and avionics.
Besides these dedicated manufacturing facilities, L&T has also identified work centers within L&T’s production centers at Hazira for submarine pressure hull manufacturing; at Ranoli for advanced composites; and at Powai for prototype development and testing. L&T also operates a site at Visakhapatnam for strategic programs.
What projects has L&T executed in the past three to five years?
L&T's contribution to the strategic program is unique and [has] significantly contributed toward building the first of the class [nuclear] submarine Arihant.
L&T is a partner to state enterprises for indigenization of naval weapon systems and engineering system onboard the warships being built in these yards. Some of the key projects executed are BrahMos launchers and fire control systems, ASW rocket launchers, torpedo launchers, stabilized platforms for Revathi radar, and a variety of naval engineering systems fitted on front-line warships.
In collaboration with DRDO, L&T has developed the entire range of mobile-bridging systems for the Indian Army, airdrop platforms and presently production of the tank-mounted bridges is in progress. We await serialization clearance for Sarvatra and short-span bridging systems while orders for one more short-span bridging system is awaited. We have developed an indigenous modular bridging system undergoing trials as we speak. As partners to the Akash missile program, we deliver launchers as well as radar masts and missile-propulsion airframe. We built advanced composites and exotic metals capabilities for [the] BrahMos missile and deliver naval weapon systems including modular launching systems and fire control systems [as well as] more than a dozen subsystems for the missile.
What defense projects you are hoping to win in the next 10 years?
We expect some major programs to fructify soon within next one year. These include self-propelled tracked gun system, military communication station, Project Akash missiles sections and launchers for Air Force and Army, [and] Army bridging systems (10-meter short span). We also await GS evaluation announcement for towed gun systems. On the shipbuilding front, some of the major shipbuilding programs, which are likely to be ordered during the next two years, include landing platform dock, ASW corvettes, large survey vessels, multipurpose vessels, diving-support vessels, next-generation missile corvettes, etc.‎ We are also looking forward to major refits of submarines and warships. These offer a combined potential of over $7.5 billion in the near term.
In medium to long term we expect the ordering of the submarine programs and warship programs like new-generation missile vessels, new-gen naval corvettes, etc. We also await ordering of development of the three Make [in India] programs (TCS, BMS and FICV) and serial production orders for these programs.
We also continue to support DPSU shipyards (MDL, GRSE, GSL and HSL) with naval weapon systems, engineering systems, life-support systems and logistics systems in Tier 1 role. This is also the case with state enterprises BEL, BDL, BEML and OFB for radar masts, launchers, missile subsystems, Sarvatra bridges and bridging systems.
 

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Government will focus on homegrown defence products, says minister
Medal winnners at the passing-out parade at the National Defence Academy.
PUNE: Union minister of state for defence Subhash Bhamre has said that, over the next two-and-half-years, the government will step up its focus on indigenization of defence products in the country.
"The move is in line with Prime Minister Narendra Modi's Make-in-India campaign," he pointed out.
Bhamre was speaking to reporters on the sidelines of the passing-out parade of the 131st course at the National Defence Academy (NDA), Khadakvasla, on Tuesday. An oncology surgeon by qualification, Bhamre was appointed minister of state for defence in July this year and has been given charge of the departments of defence production and ex-servicemen welfare, among others.
He said, "The government has already simplified the defence procurement procedure (DPP), which was a time-consuming process until a couple of years ago, with a view to encourage domestic players. We have made some significant changes in the DPP and this has enabled us to procure quality defence equipment, platforms and systems in a short period of time."
On the instances of cross-firing along the Indo-Pak border and terror attacks in Jammu & Kashmir, he added, "India wants peace with her neighbours but the country's forces are always alert and ready to meet any form of aggression."
On issues related to implementation of the One Rank One Pension (OROP) scheme, Bhamre mentioned, "A section of people were indulging in a misinformation campaign relating to the so-called discontent within the ex-servicemen community in relation to implementation of OROP. Such a campaign is far from the truth as 90% of the ex-servicemen community in the country is happy with the way things are proceeding."
He said, "OROP was pending for the last four decades and it was only because of PM Modi's top priority to the issues faced by ex-servicemen that the government has been able to implement the scheme for the first time. Some anomalies may exist in the implementation process but the same are being take care of."
According to the minister, the Justice Narasimha Reddy committee, which was appointed to examine the anomalies, has submitted its report and the government is examining the same on priority. "The government is committed to resolving ex-servicemen's issues," he stated.
Earlier, Bhamre received a guard of honour and reviewed the passing-out parade that saw 283 cadets completing their three-year academic and military training.
General Officer Commanding-in-Chief of Southern Command Lt Gen P M Hariz, Air Marshal A S Bhonsle from the Integrated Defence Staff, New Delhi, Commandant of NDA Lt Gen Jagjit Singh Kler and Deputy Commandant Rear Admiral S K Grewal were among senior officials present on the occasion.
Bringing an Indian soldier home Minister of state for defence Subhash Bhamre said, "Pakistan will have to return captured Indian soldier Chandu Chavan considering the diplomatic pressure and other efforts to secure his release."
Chavan, a soldier with the Rashtriya Rifles in Kashmir, had inadvertently crossed the Line of Control on September 29 and is since in captivity of the Pakistan army. He hails from the Lok Sabha constituency represented by Bhamre.
The minister added, "We are taking every possible step at the level of the Director General of Military Operations, the diplomatic channels and the Ministry of External Affairs to secure Chavan's release."
Going by the events in the last couple of months, the neighbouring country has adopted a hostile approach towards India but they will have to return Chavan some day or the other, he said.
 

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This is an excellent development. We show it in case of baba kalyani that if our private sector is involved in Defense sector, they can make miracles. BABA kalyani group Made a version of field gun. It has 1 KM more range and weighed just 900 KG against 4.1 ton. One can Imagine the advantage of this sort of development. If one of our private sector company made AESA, this is an indication of days to come.
 

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India Allows Private Sector to Manufacture Ammo

By: Vivek Raghuvanshi, December 1, 2016 (Photo Credit: jc_design/Getty Images)
NEW DELHI — India has decided to reduce ammunition imports and instead procure all ammunition requirements from domestic sources.
The Ministry of Defence (MoD) under its Make In India initiative is now encouraging the private sector to manufacture ammunition. Previously, only state-owned Ordnance Factory Board (OFB) was permitted to produce ammunition and India’s private sector was only allowed to manufacture parts of ammunition such as the shell or fuse.
A senior Indian Army official said of the new opportunity for the private sector: “It clearly shows that the Army’s requirements are not being totally met by the OFB and import is not an option anymore.”
Under the new policy, the MoD is willing to provide long-term commitments and firm orders of multiple types of ammunition to private players, but only at competitive prices.
“The Indian industry was denied participation in the manufacture of ammunition, as no industrial license was issued for filling process. Thus the monopoly stayed with OFB, whose lack of capacity restricted the demand of the services, gradually leading to deficiencies over the years. It was not that the industry does not have the capability to manufacture with transfer of technology, but they have not taken any concrete action to acquire technology in this regard till now,” a senior MoD official said.
Last week, a request of information (RFI) was issued for participation in a $400 million program to manufacture of variety of ammunition in the next five to eight years, including 20,000 units of 125mm ammunition for T-90 and T-72 tanks; 500,000 units of 23mm ammunition for Strella air defense systems; 300,000 units of 40mm ammunition for grenade launchers; 500,000 units of 40mm ammunition for multi-grenade launchers; 5,000 units of ammunition for Grad multi-barrel rocket launchers; 600,000 fuses for 155mm M-46 howitzers; 188,600 units of 30mm ammunition for the BMP armored vehicles; and 100,000 units of ammunition for 155mm FH77/B howitzers.
Indian private sector companies participating in the manufacturing of ammunition for the first time include both leading industrial houses — Chowgule Group, Kalyani Group, Reliance Defence Engineering Limited, and Godrej & Boyce — and several small- and medium-sized sector companies — Indtech Construction Private Limited, HYT Engineering Company Private Limited, Micron Instruments, Premier Explosives Limited, Solar Industries India Limited, Himachal Futuristic Communications Limited and Continental Defence Solutions Private Limited.
However, Bhupinder Yadav, a retired Indian Army major general and defense analyst, said industry here may develop the capability to indigenously manufacture ammo by forming joint ventures with foreign partners that already have established designs.
“Most of the ammunition mentioned in the RFI are of East European origin, and the companies may have edge. However, the upgrade variants could be provided by European and Israeli original equipment manufacturers,” Yadav said.
Several overseas defense companies — such as Expal of Spain, Nexter of France, Rosoboronexport of Russia, Chemring Group of the United Kingdom, Saab of Sweden, Elbit of Israel, Rheinmetall Defence of Germany, Diehl Defence of Germany, Denel of South Africa, Yugoimport of Serbia, Bumar of Poland, Orbital ATK Armament Systems of the United States and Arsenal of Bulgaria — are negotiating with private Indian companies to provide cutting-edge technology for multiple Indian ammunition programs.
As of now, only private sector Bharat Forge Limited, a subsidiary of Kalyani Group, has announced a joint venture company — BF Elbit Advanced Systems Private Limited — to manufacture a multitude of ammunition types and smart bombs in India.
Currently, the annual ammunition market size in India exceeds $1 billion, which is largely due to imports and OFB, according to Yadav. "With the past demonstrated OFB production capability, there is scope of additional annual capacity of approximately $250 million in private sector," he added.
“Ammunition was one of the shortlisted categories for the identification of Strategic Partners, which is yet to take off. This RFI should provide the necessary inputs for the MoD to select this private sector partner," Ankur Gupta, a senior defense analyst with Ernst & Young India, said. "Also, a minimum 10-years order book should help in the creation of a viable business plan, and the necessary investments could be forthcoming."
 

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India Allows Private Sector to Manufacture Ammo

By: Vivek Raghuvanshi, December 1, 2016 (Photo Credit: jc_design/Getty Images)
IMO if private firms really want to excel in arms and ammo field, they would have to come out of their comfort zone. Along with partnering OEMs, they would have to think out of box and invest in serious R&D. License production or following others footstep could lead you only to a limited extent. In long run you need to invest in brain power rather then taking the beaten path.
 

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As LoC heats up, army contracts for two rocket regiments from L&T, Tata Power
By Ajai Shukla
Business Standard, 2nd Dec 16

With tensions escalating on the Line of Control (LoC) between India and Pakistan, the ministry of defence (MoD) has bought two regiments of the indigenous Pinaka multi-barrelled rocket launcher (MBRL) for Rs 3,230 crore.
Each Pinaka regiment, consisting of 18 multi-barrelled launchers, can pulverize a target with a hail of 216 rockets, fired in 44 seconds, catching enemy troops in the open with no time to take cover. It can be fired from 38 kilometres away, allowing commanders to target a terrorist camp, or even an army post or headquarters, without risking sending soldiers across the LoC.
On Wednesday, the MoD signed separate Rs 226 crore contracts with Larsen & Toubro (L&T) and Tata Power (Strategic Engineering Division), the designated “original equipment manufacturers” (OEMs) for the Pinaka.
This is the first project where private Indian companies are designated OEMs, a role traditionally reserved for “defence public sector undertakings” and the MoD-owned Ordnance Factory Board (OFB). While L&T and Tata Power (SED) have just 14 per cent of the work share, it includes developing and building the heart of the Pinaka --- the command post and launcher --- and the coveted OEM role.
Even so, 86 per cent of the overall payment will goes to a range of suppliers, including Bharat Earth Movers Ltd (BEML) for the Tatra high-mobility vehicles on which the Pinaka is mounted, and the OFB, which builds the actual rockets.
L&T and Tata Power (SED) have already supplied two Pinaka regiments from 2006 to 2010. Now they will build the army’s third and fourth regiments.
Their role is set to grow, with six more regiments in the pipeline. Last December, the MoD kicked off the procurement of six more Pinaka regiments for Rs 14,600 crore. L&T and Tata Power (SED) officials say a tender is expected soon.
With the Pinaka Mark I validated, the MoD told parliament on April 26 that the DRDO was developing a longer-range, Mark II version of the Pinaka MBRL.
Business Standard learned on a visit to the Armament Research & Development Establishment (ARDE) --- the DRDO laboratory that is developing the Mark II --- that the improved version will be able to strike targets as far as 60-70 kilometres. This will involve fitting each rocket with inertial navigation system guidance.
With the army looking to eventually induct 22 regiments of Pinaka in place of the obsolescent Russian GRAD BM-21, there could be 12 Pinaka Mark II regiments procured, in addition to ten Mark I regiments.
Beyond that, say L&T and Tata Power officials, the affordable Pinaka system offers great scope for export. Says Rahul Chaudhary, who heads Tata Power (SED): “Pinaka is a fully indigenous weapon with 100 per cent of its intellectual property belonging to India. That means we can export the system to any country that the government of India wants. In today’s export market, the Pinaka is one of the most competitive options.”
To meet export orders, the MoD will have to overcome the delays that dogged the Pinaka’s induction. Cost negotiations for the latest two-regiment order were completed in 2011. It has taken five years after that to actually place the order.
There is even greater tardiness in the OFB’s production of Pinaka rockets. Parliament’s Standing Committee on Defence revealed in its report of December 22, 2014 that the OFB has failed to augment production of Pinaka rockets from 1,000 per year to 5,000 per year, scheduled for 2017, for which it had been allocated Rs 1,388 crore. The standing committee observed: “This shows sheer callousness on the part of the Ordnance Factory Board.”
Now, however, the private sector could be involved in fabricating Pinaka rockets at the faster rate needed. Last month, as reported by Business Standard, the army initiated the induction of private defence companies in fabricating ammunition. In the list of ammunition that private firms were invited to build were rockets for GRAD BM-51 MBRLs. With the Pinaka replacing that legacy system, its rockets could eventually feature on the private sector menu.
 

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Sl. No. - Country - Items exported - 2014-15

1. Afghanistan - Cheetal Helicopters, Stallion 4X4 MK IV with cargo body

2. Ecuador - Dhruv Helicopters spares and services.

3. Germany - Mechanical parts, Fuze Point detonating M 572 (assembled with no explosives), light mechanical engineering

4. Indonesia - Spares for TRS 2215 Radar

5. Israel - Work packages, Compass, LRF, TIFCS, TIFCS Cable set, TIFCS Installation Kit

6. Italy - Kavach Mod II

7. Malaysia - SU-30 Avionics, Helicopter and MIG spares & services

8. Mauritius - Dhruv/ Dornier & Helicopter Spares & services, Offshore Patrol Vessel (OPV), Ammunitions

9. Myanmar - RAWL-02 MK-III, Sonar HMS-X

10. Namibia - CH/CK Helicopter, spares and rotables

11. Nepal - ALH Helicopter and CH/CK spares and rotables, ammunition, accessories for ammunition, Bulletproof Vest and Fragmentation Jacket, 5.56 mm steel core (28.79,378 pieces).

12. Oman - Jaguar spares and services, training on engine shaft alignment

13. Russia - MIG/SU-30 spares and services, RWR, TP for PCB’s testing

14. Singapore - Multipurpose support vessel

15. Sri Lanka - Indra MK-II Spares, Lion Battery charger, Secure VHF Handheld Radio LVP 285 & services

16. Suriname - CH/CK Helicopter, spares and services

17. Switzerland - Cable Looms

18. Turkey - Bullet Proof Vest + Plates, Helmet, Bullet proof ceramic panel.

19. UAE - Vacuum Interrupter

20. UK - Work packages/ forgings, Transmitting tubes

21. USA - Work packages/ forgings, Electronic assemblies, Flight Control panel, Mechanical parts, Vacuum Interrupter

22. Republic of Korea - Turbocharger

Countesy: Government of India
 

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Tata Power SED wins Rs 200 crore order from defence
Pinaka is an area weapon system which supplements the existing artillery gun at ranges beyond 30 kms, and has a quick reaction time and high rate of fire.

NEW DELHI: Tata Power SED has won a Rs 200 crore order from the Defence Ministry for supplying one regiment of command post and launcher of Pinaka multi rocket launch system.
The order won by Tata Power's Strategic Engineering Division (Tata Power SED) includes supply of 20 launchers and 8 command posts.
Pinaka Weapon System is one of the first 'Create in India' product designed and developed by Indian private industry in association with Armament Research and Development Establishment of the DRDO.
The company had delivered one regiment of Pinaka Launcher and Command Post in the period of 2006-2010, which was then inducted in the Army.
Pinaka is an area weapon system which supplements the existing artillery gun at ranges beyond 30 kms, and has a quick reaction time and high rate of fire.
Tata Power SED's CEO Rahul Chaudhry said the firm is proud to be part of successful development of one of the first "Create in India" products.
"After the success of Pinaka, we remain committed to succeed in other Weapon System Development Programmes with DRDO on which we are already working," he said in a statement.
 

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Maruti's Gypsy on its way out; Tata Safari to be new Army vehicle

NEW DELHI: The Army will replace its iconic Maruti Gypsy fleet with a new range of SUVs, having selected the Tata Safari Storme for an initial order of close to 3,200 vehicles, which could increase 10-fold in the coming years.
While an official announcement is yet to be made, ET has learnt that Tata Motors beat off the Mahindra Group, which fielded its Scorpio SUV for the competition that kicked off in 2013. Both locally developed SUVs passed rigorous technical trials by the army, which tested the vehicles in all conditions – from high-altitude, snow-bound regions to deserts and marshy land.
However, the Tata Group appears to have presented a better financial deal to the army, which has sought to replace its fleet of Gypsy vehicles that are used extensively at the battalion level to transport troops and officers.
The army has over 30,000 Maruti Gypsy vehicles in service and will progressively replace them starting next year. “The initial order is for 3,198 new SUVs but the total number is likely to go much beyond that. The army prefers a single model across its units and formations as it is easier on logistics,” an official involved in the process told ET.
While the Gypsy has been an army favourite for its ability to navigate tough terrain, the need was felt for a new SUV with additional safety features and more power that runs on diesel, a fuel that’s more readily available, given its large fleet of trucks and heavy-duty vehicles.
Once signed, this will be the second major order for Tata Motors this year, having bagged a Rs 1,300 crore deal in January to supply high-mobility military trucks for the army. The 6x6 high-mobility vehicles can be used for various purposes – from transporting men and material to being the platform for multi-barrel rocket launchers and surface-to-air missile systems.
 

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[UPDATE]
The ordered 464 T-90 tanks will be upgraded versions of the existing one. The tanks will come with a 125mm smooth bore gun barrel capable of firing improved ammunition such as high penetration Armor Piercing Fin Stabilized Discarding Sabot (APFSDS) rounds. With better metallurgy, the new gun will have longer life, extremely low probability of burst and is unlikely to misshapen. The army is looking at hunter-killer capability, with a panoramic nightsight for commander too. The army also wants T-90s to be equipped with enviromental control unit, underwater breathing apparatus for the crews, automatic gear shift, muzzle reference system for greater accuracy, automatic target trackers, auxilary power unit to reduce tank's thermal and noise signatures, enhance the operational life of main power unit and active protection system as India didn't opt for Shtora system offered by Russia due to high cost.
Source: Shephardmedia
 

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These five startups are strengthening India’s defence sector
Moneycontrol Bureau
Best known for their innovation and quick implementation strategy, Indian startups have come a long way. Be it e-commerce, fintech or artificial intelligence – Indian firms have made a mark in almost every sector.
Government initiatives like Startup India and Make in India has come as shot in the arm for the evolution of startup ecosystem the country.
Thanks to this phenomenon, startups have now entered in to the defence sector which until few years back remained an exclusive club of large-cap companies.
Here are five Indian startups that are working hard to strive in the defence sector and are also making our armed forces stronger with new technologies:
Tonbo Imaging


Location: Bangalore

Product: Arjun
Arjun is a Clip-on thermal imaging weapon sight designed for small and medium caliber weapons. It is small and lightweight and can be used as hand held thermal imager or helmet mounted TI sight. It helps the soldier to shoot the target without entering the line of fire. It doesn’t provide any retention to the weapon.
TimeTooth Technologies


Location: Noida

Product: Landing Gear

The Noida-based firm is making landing gears India's own Unmanned Aerial Vehicle (UAV) or Drone called Rustom II. The DRDO drone's landing gear will be used for steering, braking, take-off and of course landing purposes.
Entire design, development and manufacture of the landing gear was conceptualised by the 30-member company. The drone will be used for long range and high altitude surveillance by the Indian defence forces.
AuroraIntegrated Systems


Location: Bangalore

Product: Urban View
Urban View is an unmanned aerial vehicle (UAV) that can be used for surveillance purposes in remote or arduous terrain at both day and night time, as it is equipped with standard definition cameras that also provides thermal vision. Its low noise and low visibility helps it remain out of sight.
VizExperts


Location: New Delhi

Product: GEORBIS
GEORBIS is a 3D geospatial platform which is used by India Army for real- time operation planning, enabling faster and critical decision making. This 3D platform is equipped with various interaction devices, software and terrain data to plan the operation. The startup helps the army to have a strong foundation with low adoption and setting up cost.
CM Envirosystems


Location: Bangalore

Product: Custom Test Chambers
As all military equipments can't always be tested on field, CME provides customised test chambers to test various equipments. The company has already created chambers to test equipments of project like AGNI. It also provides chambers that help to test various weapons in extreme conditions of Siachen and Thar.
 

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