Ministry of Defence (MoD) News and Press releases

Discussion in 'Defence & Strategic Issues' started by ezsasa, Aug 12, 2015.

  1. ezsasa

    ezsasa Senior Member Senior Member

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    Creating this thread so that we can have a consolidated thread for News and Press releases related to Ministry of Defence at one place.
     
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  3. ezsasa

    ezsasa Senior Member Senior Member

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    Defence Minister Manohar Parrikar cuts off media interactions further

    NEW DELHI: The defence ministry has imposed a virtual gag order on all officials and service personnel in South Block against speaking to the media, warning that the present "security scenario" demands its strict implementation.

    The instructions, issued in a terse note a week ago, come days after similar restrictions were placed on home ministry officials by the government. They require that permission for any engagement with the media has to be sought through the Directorate of Public Relations. All direct communication is banned.

    "Non-adherence to the laid down instruction/guidelines on the subject might lead to embarrassment to the department," according to the July 30 note sent to all defence ministry officials under the title 'Security instruction for interaction with media personnel." This covers "both service personnel and civilians posted in Defence HQ Security Zone."

    The defence ministry is a controlled area and meetings with officials are already restricted. The new instructions are expected to cut down communication even further. No explanation was given for the new rules besides pointing to the "present security scenario."

    ET reported in March that the defence ministry had revised security guidelines after leaks of classified information from various ministries. These had focused on restricting access to the ministry and defence establishments and had warned that even internal military phone lines were not secure.

    Restrictions were imposed on officials taking documents home and record had to be maintained of all photocopies in the ministry. The instructions included rules on the shredding of classified papers.


    Read more at:
    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
     
  4. ezsasa

    ezsasa Senior Member Senior Member

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    Defence Ministry brings major retrospective changes in offsets policy

    NEW DELHI: In a move that is likely to open up over $3.5 billion as investments into the Indian defence and aerospace manufacturing sector, the defence ministry has brought major retrospective changes in the offsets policy, giving foreign companies much more flexibility in choosing partners and allocating work shares.

    In a new notification that applies to all defence contracts that had offset obligations — to invest at least 30 per cent of the contract value into the Indian defence manufacturing sector — the ministry has permitted foreign companies to change Indian partners with a minimal process.

    While in the past, any changes in an offset work package — which was decided as many as three years in advance due to the painstaking procurement process — would have to be approved in multiple players and finally by the high powered Defence Acquisition Committee (DAC), the deciding authority has been now changed to the Secretary, Defence Production.

    Even changes in the offset partner itself will now be approved at the Secretary level, negating a long drawn process earlier that would see files moving at snail's pace of a few months if not years for changes. With the amendments, foreign companies will now be able to select partners and contracts at the 'execution stage', instead of a few years in advance.


    "Both these amendments, with retrospective effect, should clear most bottlenecks in offset execution on the ground as well as spur high-technology work flowing into the country for the purpose of discharging offsets. OEMs will be far more comfortable in proposing work-packages, feeling comfortable that if required it is not an insurmountable task to change the same," Ankur Gupta of Ernst and Young India told ET.

    Industry experts say that a prime reason for a deadlocked offset policy — close to $4.5 billion of work has been signed under offsets since 2008 but and less than a quarter has actually been executed — was the requirement of providing detailed work-packages at the time of the submission of initial bids itself.

    "The time gap between the signing of the contract and the freezing of offset work share could easily stretch to 2-4 years and by that time the requirements of the companies would change as technology evolves swiftly," an industry insider said.

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    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
     
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  5. ezsasa

    ezsasa Senior Member Senior Member

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    Arms exports to get a boost as Ministry of Defence okays 16 broad categories of products


    NEW DELHI: A formal list of defence items that can be exported has been endorsed by the ministry of defence, bringing India at par with international laws governing arms trade. The move - which identifies 16 broad categories of products that can be exported after clearance - is expected to boost military trade with experts saying that it brings clarity to private companies pursuing export orders.

    A military stores list, which was drawn up by the directorate general of foreign trade, has been given a go-ahead by South Block, with a new set of rules being framed to manage export clearances. What the list gives is an indication of what India wishes to export in the coming years, after it joins the Wassenaar arrangement, the international export control regime for arms.

    Among the items listed in the Indian military stores list are warships, tanks, armoured vehicles, ammunition, rifles and small arms, military training equipment, electronic warfare devices, software, bombs and torpedoes.

    As reported by ET, the defence ministry has also relaxed earlier export control laws that require multiple end-user certificates by Indian companies wishing to export components and parts of larger systems. The two things combined, experts says, will go a long way in boosting foreign trade for Indian private companies.

    "To enhance strategic exports the authorities have taken two broad steps in one go. The adoption of the military stores list brings our export control regime in consonance with international laws, whilst the non-requirement of an ultimate end-user certificate for components significantly reduces the chance of a domestic company having to lose out on becoming a part of an OEMs global supply chain," Ankur Gupta of Ernst and Young India told ET.

    While India is hopeful of joining two international regimes this year — the Wassenaar arrangement and the Missile Technology Control Regime (MTCR) — after which exports will get a boost, DRDO has already drawn up a list of products that it wishes to sell abroad.

    This includes the Akash surface to air missile system, Sonar systems, underwater communication systems, the Tejas fighter aircraft, Airborne Early Warning and Control systems, the Nishant UAV and a series of radars, among other things.

    Indian private companies are already exporting items but this is still a trickle of their true potential. Tata Advanced Systems Limited makes components and parts for Lockheed Martin, Sikorsky and Pilatus. A small company like Kineco makes composite cons ..

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    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
     
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  6. ezsasa

    ezsasa Senior Member Senior Member

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    Defence ministry asks vendors to disclose foreign partners in air defence gun deals

    Read more at:
    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst


    NEW DELHI: The defence ministry has asked all Indian vendors keen on participating in a mega air defence gun contract to disclose their foreign collaborators, as well as the source of technology and production capability.

    The move comes weeks after ET reported (August 3) that Indian firm Bharat ForgeBSE -0.80 % had written to blacklisted German company Rheinmetall asking for a possible collaboration on the project, besides accurately predicting the agenda of a high level defence ministry meeting in July.

    In a firm official note dated August 18, the Army has asserted that it would not consider any Indian company for the Rs 16,000 crore contract unless details are shared within the next two weeks. It is also learnt that following the note, Rheinmetall has written to the defence ministry, saying that it has no valid partnerships with any Indian private company and has offered to revive a partnership with the Ordnance Factory Board for the contract.

    "Vendors desirous of participating in the approved acquisition scheme related to procurement of Air Defence Gun (Successor) with Ammunition for which Request for Proposal (RFP) is to be issued shortly are required to submit Appendix E by 13 September.

    No repeat No vendor will be considered for this scheme if its Appendix E is not received by due date," the Army note says. Appendix E specifies the need to share details of technology partners and foreign collaborators.

    While the formal request for information (RFI) for the mega gun project was closed in May 2014, the unusual move to reopen the process after a year is expected to bring clarity on which foreign companies are collaborating with Indian firms for the contract.

    The air defence gun project was to be executed by Rheinmetall Air Defence (RAD) with the Ordnance Factory Board (OFB) in 2008, but was shelved after the company was blacklisted in corruption charges.

    ET has also learnt that the German company has offered to revive this 2008 contract with the OFB. Rheinmetall, which is fighting the blacklisting order in Indian courts, has also clarified in a letter sent last week that it does not have valid agreement currently with Indian private companies for the contract.

    In fact, RAD has asserted that it retains the IPR on the 35 mm Oerlikon revolver guns and no Indian company has the right to sell its products.

    Sources indicated that in response to the RFI that was sent last year, one of the Indian companies may have offered the Oerlikon gun as a solution for the Indian army, leading to confusion given that RAD is currently banned from participating in any Indian defence program.

    With the Army now reopening the RFI, it remains to be seen whether more Indian private companies will participate in the contract. The RFI last year got a very lukewarm response, with even the state run OFB choosing to stay away.

    RAD Air defence products:
    upload_2015-9-1_1-4-16.png upload_2015-9-1_1-4-26.png upload_2015-9-1_1-4-48.png
     
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  7. ezsasa

    ezsasa Senior Member Senior Member

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    Defence ministry to ask pvt players to produce Specialist Ammunition

    http://defencenews.in/defence-news-internal.aspx?id=YssvORzlq8M=

    The armed forces currently source specialist ammunition either from Ordnance Factories Board (OFB) or through imports. The defence ministry has, for the first time, mooted a proposal to allow private manufacturers to produce specialist ammunition for the army.
    [​IMG]

    The armed forces currently source specialist ammunition either from Ordnance Factories Board (OFB) or through imports. The defence ministry has, for the first time, mooted a proposal to allow private manufacturers to produce specialist ammunition for the army. The proposal, worth around Rs 800 crore, is now waiting for the decision on the number of years for which a firm commitment will be given to the private supplier. The armed forces currently source specialist ammunition either from Ordnance Factories Board (OFB) or through imports.

    As per the CAG report placed in Parliament in May, OFB had failed to supply the army with the targeted quantity, leading to shortfalls in supplying up to 73 per cent of the total types of ammunition. Moreover, in imports, no procurement of ammunition took place against the nine items initiated for procurement through capital route from 2008 to 2013. CAG had also warned that as of March 2013, half of the 170 types of ammunition held would not last 10 days of war fighting, a “critical” situation, and 74 per cent were not enough for 20 days of war fighting. As per policy, army is supposed to maintain its ammunition reserves for 40 days of intense war fighting, with 20 days reserves being ‘Minimum Acceptable Risk Level’.

    Defence ministry sources said that seven types of ammunition have been identified for procurement from private suppliers as part of ‘Make in India’. This includes specialist ammunition for tanks and artillery guns, GRAD BM-21 charges and electronic fuses; none of them are currently not being manufactured in India. At the hearing on the CAG report with the Parliamentary Accounts Committee in June, the ministry had assured the MPs that barring one item, they are confident of overcoming “critical” level for all types of ammunition by 2016.

    That assurance was based on the plans to get private suppliers to produce these critical types of ammunition. “This will create another indigenous source of specialist ammunition for us, over and above ordnance factories and import route. It will help us quickly make up critical deficiencies,” said a defence ministry official. At least four private firms have expressed interest in producing specialist ammunition in India and are awaiting the issue of RFI. But the proposal has been delayed because private suppliers will need a long-term commitment – of around five years — from the defence ministry to set up production.
     
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  8. ezsasa

    ezsasa Senior Member Senior Member

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    Make in India: Government places defence order worth Rs 2 lakh crore


    NEW DELHI: Government has placed defence order worth Rs 2 lakh crore under buy and Make in India category to boost local manufacturing sector, a senior government official today said.

    "In the last one year, Rs 2 lakh crore worth order has been already placed under buy and Make in India category. This itself precludes a larger role of foreign investors and gives greater flexibility to domestic industry to participate in defence order," DIPP Joint Secretary Shubhra Singh said while speaking at Electronica India.

    She said that among 25 sectors identified for Make in India campaign, defence and aerospace are being increasingly looked upon as one of the most promising segments to push indigenous manufacturing.

    "... over next seven years, there is expected spend of $130 billion on defence forces and additional $110 billion on homeland security. This is a type of opportunity before domestic manufacturers and also for foreign investors," Singh said

    She said in service core to defence sector, there will be higher planned capital spend in future.

    "It is important that the aerospace and defence industry leverage ESDM (Electronic System Design and Manufacturing) policies to drive down operation cost," Singh said.

    As per a report by India Electronics and Semiconductor Association in partnership with Roland Berger, Indian aerospace and defence market is the 7th largest globally with strong demand emanating across the triad of user services.

    At a sub-system level, the total opportunity for electronics sector that emerges in user service segment is about $58 billion over next 12-15 years considering platform requirements for the user services, the report said.

    "This is the right time to investment in India. There are incentives under MSIPS which have attracted investments but it is not as per expectation," TRAI Chairman RS Sharma said while recalling his experience as Secretary for the Department of Electronics and IT.

    Defence Research and Development Organisation Director KD Nayak said that designing and making of defence equipment in India is important to generate trustworthiness in products.

    "About 50-53 per cent Defence equipment are being made in India. DRDO production value is around Rs 1.7 lakh crore and our target is to reach 70 per cent of production by 2018. In electronic sector, we are good in design but poor in manufacturing. We are in transitional phase," Nayak said.

    He said that private sector needs to invest in research and development and develop intellectual property right.

    "In Defence sector you have to take some risk. Stringent requirements are there. It requires different product design than what is required in commercial space. If you to reach 70 per cent of Defence manufacturing, private sector will have to come," Nayak said.


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  9. ezsasa

    ezsasa Senior Member Senior Member

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    MoD sets up task force to select Indian private companies for mega projects

    The defence ministry has set up a high powered task force to select Indian private companies for mega 'Make in India' defence manufacturing projects, accelerating its process of reforming complex procurement rules.
    [​IMG]

    NEW DELHI: The defence ministry has set up a high powered task force to select Indian private companies for mega 'Make in India' defence manufacturing projects, accelerating its process of reforming complex procurement rules.

    The task force, to be led by former DRDO Chief VK Aatre, has been mandated to set a selection criteria for 'strategic partners' — private companies that will be given key defence projects like aircraft manufacturing, warship production and complex weapons systems under the Make in India initiative.

    Aatre, who succeeded APJ Abdul Kalam as DRDO chief in 2000, told ET that the first meeting of the task force would take place within two weeks and details including a time line would be discussed.

    "Things will be clearer after the first meeting of the task force takes place by the end of this month." Sources said the task force, which will include representatives from the industry, armed forces, defence ministry, banking sector, credit rating agency, specialized consultancy and public sector units, is expected to submit detailed criteria at the earliest for incorporation into the new defence procurement policy being planned by the ministry.

    The criteria to qualify as strategic partners is likely to be critical to the future of major private players venturing into defence manufacturing. As per the proposals of the Dhirendra Singh panel on reforms, strategic partners will be identified for six major types of projects that encompass all major contracts.

    Only one or two players are to be selected for the six types of projects, restricting total number of private companies for mega projects to about a dozen. These projects include aircraft, warships, armoured fighting vehicles complex missile systems, command and control networks and critical materials.

    http://defencenews.in/defence-news-internal.aspx?id=Y8e6UbiC40M=
     
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