Indian defence industry exports watch

[Indx TechStyle]

Tweak in rules now permits export of small arms from India with due permission

The revised Arms Rules 2016 have brought clarity, giving clear rules on how private players can set up shop, bring in foreign investment and sell small arms.

NEW DELHI: Top small arms manufacturers from across the globe are looking to set up shop in India with a critical tweak in rules by the government that has enabled the private sector to set up manufacturing units and even cater to export orders after due permissions.

The revised Arms Rules 2016, which have been notified by the government last month, have brought clarity to the sector, giving clear rules on how private players can set up shop, bring in foreign investment and sell small arms.

Till now, only state owned public sector units were manufacturing arms for the Indian forces. With a massive requirement stretching across the three armed forces, paramilitary forces and state police, a large quantity of small arms like rifles, carbines and side arms were being imported annually.

"These revised rules will disperse the clouds of ambiguity that had engulfed the Small Arms and ammunition manufacturing sector thereby enabling the private sector to not only help meet domestic demand but enter the regional export market in a significant manner," says Ankur Gupta, Vice President at EY India.

In a recent tweak in FDI rules, the government for the first time brought in small arms under the defence ambit. This has opened the way for an automatic route for FDI investments up to 49 per cent in the sector.

Industry insiders say that several top manufacturers, like Colt, Heckler and Kotch and IWI are in advanced talks with Indian players to set up facilities after the recent tweak. As per the notified rules, Indian companies will be granted a seven year license after due vetting and will be allowed to set up units in special economic zones. No facility will be allowed to come up near border areas.

The arms manufactured will also be "allowed for export subject to the approval of the Ministry of Home Affairs in consultation with the Ministry of External Affairs, Ministry of Defence and Ministry of Commerce, on a case to case basis". While industry experts have welcomed the move, they have cautioned that some processes will need to be smoothened out to encourage manufacturing.

"On the flip side, the licensing process is under the MHA and approvals are required even for importing machinery. This will take time to evolve and companies could face delays in the short term," Gupta said.

READ MORE:
Small Arms|Ministry of Defence|IWI|India|Heckler|FDI rules|Carbines

 

[Indx TechStyle]

No country for old ammunition

Indian Air Force fighter plane Tejas, lands at Raja Bhoj Airport in Bhopal. (Photo: PTI)

The induction of Tejas light combat aircraft, overdue by three decades, into Indian Air Force on July 4, marked the beginning of the end of India’s dependence on imports for fighter aircraft. Costing $24 million per unit, approximately one-tenth of the cost of Lockheed Martin’s F-35, the Tejas achieves a maximum speed of 1,370 mph compared to the F-35’s 1,199 mph and is the lightest multi-role supersonic aircraft in its class, equipped with surface-to-air, air-to-air and anti-ship missiles with in-flight maneuverability that exceeds the slower F-35. “It is comparable and on par with any fourth generation fighter aircraft you have in the world,” said group captain Madhav Rangachari, commanding officer of the IAF’s 45 Squadron, the “Flying Daggers”.

The purchase of 36 Rafale aircraft in a government-to-government contract following Prime Minister Narendra Modi’s April 2015 visit to France leading to ministry of defence scrapping an earlier plan to purchase 126 Rafales, is expected to be finalised in the near future. With the clause of delivering 50 per cent offsets, creating business worth at least euro 3 billion for smaller Indian companies, it may generate a few thousand new jobs in India.

Three 155 mm “Dhanush” artillery guns were handed over to the Indian Army in June 2016, for undertaking user exploitation. Special features of the Dhanush are: 8 km more range than the Bofors gun, modified double baffle muzzle brake, modified loading trough to accommodate bi-modular charge system and an electronic suite to include an enhanced tactical computer, inertial navigation system (INS), muzzle velocity radar and automatic gun sighting system for enhanced accuracy as well as auto-laying of the gun.

An indent of 114 guns already placed with the Ordnance Factory Board will be a long overdue shot in the arm for Indian Army’s artillery.

Based on the Army’s strategic requirement, 231 roads of a total length of 7122.47 km in Jammu & Kashmir (J&K) have been included in the long-term roll-on works plan (LTRoWP) for construction/upgrading out of which 157 roads are planned for completion up to 2020 and the remaining 74 roads after 2020. Apart from the 231 roads being constructed/upgraded, 133 completed roads are exclusively entrusted to Border Roads Organisation in J&K for maintenance.

On September 28, 2015, two contracts were signed for Apache attack helicopters worth Rs 13,951.57 crores and Chinook heavy-lift helicopters worth Rs 8,047.85 crores with the American government and Boeing. Their delivery will commence in March-July, 2019 and will be completed by March, 2020.

The Defence Research and Development Organisation recently flight-tested three medium-range surface-to-air missile systems (MR-SAM) successfully at Integrated Test Range, Chandipur, Orissa, on June 30-July 1, 2016. MR-SAM can detect incoming enemy aircraft at 100 km distance and destroy them at ranges up to 70 km. So far, the Department of Industrial Policy and Promotion (DIPP) has issued 342 licences to 205 Indian private companies to manufacturing defence equipment such as artillery guns, tanks/combat vehicles, unmanned aerial vehicles, helicopters, radars, warships, etc. Since the beginning of financial year 2014-15, 128 industrial licences for defence have been issued to 97 Indian private companies.

To encourage export of defence equipment by Indian manufacturing companies, the Indian government has taken the following measures:

Defence export strategy formulated and placed in the public domain provides for creation of an export promotion body, engaging Indian missions/embassies abroad in export promotion, export financing through line of credit, etc. Better use of offset policy, export of indigenously developed defence systems and streamlining of the export regulation process.

The list of military stores for the purpose of issuing no objection certificate (NOC) for export has been notified by the government to remove ambiguity and to make the process transparent.

Standard operating procedure (SOP) for issue of NOC for export of military stores has been simplified and put in public domain. Requirement of government-signed End User Certificate (EUC) for export of parts and components and other non-sensitive military stores has been done away with.

The process of applying for NOC for export of military stores has been made on-line.

Specific time-frame prescribed in SOP for issue of NOC for export of military stores.

The provision of “in-principle” approval for export of specific items to specific countries incorporated in the SOP to enable Indian companies to explore export opportunities in overseas markets. In the three years leading to the current financial year, defence equipment such as Dornier-228 aircraft, offshore patrol vessels, Chetak helicopters, Sonars, 4-wheel drive vehicles, simulators, over-vests and ballistic helmets have been exported to Brazil, Egypt, Israel, Japan, Kazakhstan, Mauritius, Russia, Saudi Arabia, South Korea and Turkey.

DRDO has also undertaken several unmanned aerial vehicle (UAV) projects like the indigenous development of medium-altitude long endurance (MALE) UAV & development of aeronautical test range at Chitradurga (Rustom-II); DRDO Nishant; Panchi, the wheeled version of Nishant; a project for development of Naval Rotary Unmanned Aerial Vehicle (IAI-HAL NRUAV) and technology initiative for the development of MALE UAV (Rustom-I).

Nishant is useful for reconnaissance and monitoring of naxal-infested areas, as demonstrated by the Central Reserve Police Force (CRPF) at Jagdalpur, Chattisgarh, in February 2015. Further, a 2-kg class vehicle developed by DRDO demonstrated to various security agencies like CRPF, National Security Guard and Indo-Tibetan Border Police has been acknowledged as suitable for use by all three.

Most developments mentioned were conveyed by minister for defence Manohar Parrikar in response to questions during the July 29 and August 5 sessions of Parliament.

On August 9, he informed that so far, 36 foreign direct investment/joint venture proposals have been approved in defence sector for manufacture of various defence equipment, with both Indian public and private companies. These are one each in Haryana, Himachal Pradesh and Uttar Pradesh, three in Tamil Nadu, four in Telangana, nine in Maharashtra, 12 in Karnataka and five in New Delhi. He also informed that 718 items of defence equipment, including arms, ammunition, depth-charges, combat vehicles, instruments, textiles and general stores have been returned for rectification (RFR) and various steps taken to ensure better quality control of products and reduce the rate of RFR.

While there are many more requirements/projects to be pursued, at least those mentioned reflect forward movement by the defence ministry after the 2004-14 decade of “drought”.

 

[Indx TechStyle]

Tata Power SED Emerges as Lowest Bidder To Build Sonar Systems

Sonardyne
The Indian Navy was previously sourcing PDDS tech from Sonardyne, whose Sentinel system for maritime security is shown being used here.

NEW DELHI — Private defense company Tata Power's Strategic Engineering Division (SED) has emerged as the lowest bidder to build 78 portable diver detection sonar (PDDS) systems.

Tata Power SED, whose parent company is Tata Group, quoted $20 million for the Buy and Make (India) category tender, against its rivals Elcome Integrated Systems at $26 million and Larsen & Toubro at $30 million.

This will be for the first time an Indian defense company will build PDDS systems for the Indian Navy. The service was previously sourcing the technology from Sonardyne in the United Kingdom.

A senior Indian Navy official confirmed that no domestic defense company has yet built PDDS systems, and that any domestic companies that do so will likely have to team up with foreign defense companies.

"A formal contact will be awarded to Tata Power SED within the next two months," he added.

In a 2014 tender for PDDS systems, Tata Power SED and Elcome Integrated Systems teamed up with DSIT of Israel, while Larsen & Toubro partnered with Atlas Elektronik of Germany. Indian state-owned Bharat Electronics Limited, which teamed with Thales of France, was technically disqualified.

"We want domestic companies to build more than 50 percent indigenous components in the PDDS program," said a senior Indian Ministry of Defence (MoD) official, who spoke on condition of anonymity.

The Indian Navy wants homemade PDDS systems that are capable of operating in shallow, or littoral, waters and can detect divers, underwater saboteurs and commando mini-submarines or midget subs. The PDDS systems would need to be capable of automatic detection and classification of detected, waterborne contacts in 36 degrees azimuth.

The PDDS systems will allow a diver to navigate underwater to map targets in real time. Additionally, the tech will gather data from targets and then provide information that will allow a diver to map topography.

However, the MoD is not very happy with the status of another Buy & Make (India) procurement of surface surveillance radar (SSR) systems, of which private defense company Nova Integrated Systems, a subsidiary of Tata Group, emerged as lowest bidder in February.

The senior MoD official said Nova Integrated Systems quoted a low price of $30 million to win the contract to build 31 SSR systems but is refusing to sign the contract on the grounds that the project is not economically viable for the company.

 

[Indx TechStyle]

Govt Procured Defense Equipment Worth Rs 76k Crore For Indian Armed Forces In 2015-16

The government procured defense equipment in excess of Rs 76,000 crore for the Indian Armed Forces during 2015-16, which was around Rs 2,000 cr less than the previous year. This procurement of equipment was from both foreign and Indian vendors.

This information was recently shared by defense minister Manohar Parrikar in the Parliament.

Individual details of the total procurements of defense equipment from Indian Vendors and Foreign Vendors for the Armed Forces in the last two years is given below:

(Rs. In crore)
Total Procurement Procurement from Foreign Vendors Procurement from Indian Vendors
2014-15 77986.32 29159.69 48826.63
2015-16 76169.57 26190.46 49979.11

It may also be pointed here that the Defence Production Policy promulgated in 2011, aims at achieving substantive self-reliance in the design, development and production of equipment, weapon systems, platforms required for defence in as early a time frame as possible; creating conditions conducive for the private industry to take an active role in this endeavour; enhancing potential of Small and Medium Enterprises (SMEs) in indigenisation and broadening the defence R&D base of the country.

In pursuance of the aforesaid Policy and ‘Make in India’ initiative of the Government, following steps have been taken to build a strong defense industrial base in the country:-

Further in order to promote indigenous design and development of defense equipment, a new category of procurement ‘Buy (Indian-IDDM)’ has been introduced in Defence Procurement Procedure-2016 and the same has been accorded top most priority for procurement of capital equipment.

Besides this, preference has been accorded to ‘Buy (Indian)’ and ‘Buy and Make (Indian)’ categories of capital acquisition over ‘Buy (Global)’ category in Defence Procurement Procedure, to make the country self-reliant in defense production.

The ‘Make’ procedure has been recast in DPP-2016 wherein the share of Government funding has been increased to 90% from 80%, so that the risks to the Development Agencies are mitigated to a large extent. In addition, the greater impetus has been provided to MSMEs, by reserving certain categories of Make Projects exclusively for them.

FDI Policy under which Foreign Investment Cap is allowed through automatic route up to 49% and Government route beyond 49% wherever it is likely to result in access to modern technology or for other reasons to be recorded.

The foreign investment in the defence sector is further subject to Industrial license under the Industries (Development & Regulation) Act, 1951; and Manufacturing of small arms and ammunition under the Arms Act, 1959.

The industrial licensing regime for Indian manufacturers has been liberalized and most of the components/ parts/ sub-systems have been taken out from the list of defense products requiring Industrial Licence. This has reduced entry barriers for new entrants in this sector, particularly SMEs. The initial validity of Industrial Licence has been increased from 3 years to 15 years with a provision to further extend it by 3 years on a case to case basis.

Issues related to the level-playing field between Indian & foreign manufacturers, and public sector & private sector have also been addressed. These include Exchange Rate Variation (ERV) protection for Indian vendors, Offset obligations in ‘Buy (Global)’ cases, removing anomalies in taxation in customs/ excise duty etc.

Offset implementation process has been made flexible by allowing change of Indian Offset Partners (IOPs) and offset components, even in signed contracts.

Foreign Original Equipment Manufacturers (OEMs) are now not required to indicate the details of IOPs and products at the time of the signing of contracts. Services as an avenue of offset have been reinstated with certain conditionalities.

PIB

 

[Indx TechStyle]

Invisible man, energy-weapons: Indian Army’s ‘Make In India’ wish-list to Coimbatore industry
With an aim to thwart import of legacy equipment and artillery, the Army is on a war path to modernise through indigenisation.
Amutha Kannan| Saturday, August 13, 2016 - 12:51

It requires technology that will make a man invisible, manufacture smart textiles, a wrist band that is a detection device, ammunition free energy weapons, and many more. Though this sounds like a wish list of some Hollywood production house, it is actually the Indian Army that needs this in its drive to indigenise its equipment capabilities.

And, this it proposes to do so not as it has been doing through import, but with the help of the Indian private sector, industry and academia.

Starting April 2016, the Army, under the leadership of Lt Gen Subrata Saha, Deputy Chief of the Army Staff (Planning and Systems), has been conducting road shows reaching out to the industry and academia to enable them meet the requirements of the Army indigenously. It has connected with nearly 1,400 industry representatives and three premier institutions – IIT Bombay, IIT Madras, and IIT Gandhinagar.

The one at PSG College of Technology that was held on August 10 and 11 was their fourth stop and unique in that it was the first non-IIT institution. The Army could not ignore the invitation from the Coimbatore Chapter of Confederation of Indian Industry (CII) considering the rich academic, industrial and entrepreneurial heritage that the city is famous for.

According to Lt Gen Saha, Coimbatore is a promising hub to be tapped for Defence manufacturing. “It is very encouraging and inspiring to come to Coimbatore for its tremendous industrial potential and also the science and technology expertise that the institutions have to offer”.

With an aim to thwart “import of Army equipment and artillery that had become a legacy”, the Army is on a war path to modernise through indigenisation based on the 'Make in India' model of the NDA government.

And, that Coimbatore is “gung-ho” about this move is clear from what S. Narayanan, Vice-Chairman of CII Coimbatore has to say. “A number of industries including LMW, Roots Industries, and Bimetal Bearings have been supplying parts and bearings to Defence equipment and special purpose equipment over the years. Now more industries will come forward and work on the requirements laid down by the Army, especially in the areas of engineering goods and textiles”.

For some requirements like ergonomically designed light-weight bullet-proof jackets, cold protection gear, robots, survival kits, high-calorific energy bars, night vision gear, helmets, and so on, the Army is open to solutions from both the industry and academia.

With the Defence Procurement Policy undergoing a serious change, the Army is looking at solutions in the Indian Designed Developed and Manufactured (IDDM) category. And, on these lines it is now “opening up and sharing its requirements with the right places”.

The first six chapters of the Defence Procurement Procedure 2016 has been uploaded on the 'Make in India' portal in the Ministry of Defence website to enable interested private players explore their level of involvement in the indigenisation initiative. There is information about the requirements of the Army, projects it is interested in, the funding options, and so on.

The Army Design Bureau, which will be the nodal agency between the Army and the private stakeholders, will be formally launched on August 31, and will encourage interactive connectivity via the portal www.makeinindiadefence.com.

 

[Indx TechStyle]

Arms rules changes to spark private sector interest
The new arms rules could tide over the deficit of ammunition for armed forces and also complement PM Narendra Modi’s Make in India campaign.

India is the world’s largest importer of defence equipment and spends around $24 billion a year, according to Stockholm International Peace Research Institute. Photo: AFP

Mumbai: The new changes to the Arms Rules 2016 released earlier this month are expected to encourage private and small firms and tide over the deficit of ammunition for armed forces, said analysts and companies.

The new rules will spur domestic private production of arms and ammunition, said Ankur Gupta, vice-president (aerospace and defence) at consultancy and audit firm, EY India.

“This should not only help overcome the deficit of our armed and paramilitary forces but also enhance India’s stature as a regional supplier of such equipment. A note of caution though is that it will take some time for the ministry of home affairs to institutionalize the process of accept-scrutinize-grant of the required licences,” Gupta said.

According to the new rules, transport of arm and ammunition by private entities is permitted after filing of a so-called Application Form XII and its acceptance by the authorities.

At present, the production of ammunition is dominated by the state-run Ordnance Factory Board (OFB).

Companies such as Tata Group, Punj Lloyd Ltd, Bharat Forge Ltd, etc are private companies that are keen on arms and ammunition.

Rajinder Bhatia, president and chief executive officer of defence and aerospace at ‎Bharat Forge Ltd, said new rules are “positive” for private enterprises that are keen to make arms and ammunitions.

“Earlier, manufacturing of these items were restricted to government factories or enterprises owned by the government. Now, the rule has allowed private companies to start manufacturing. These are positive regulations that will lead to increased local manufacturing,” Bhatia said.

But for Larsen and Toubro Ltd (L&T), one of the leading defence manufacturers, small arms and ammunition are not an area what it is keen on.

“L&T can examine the manufacture of larger calibre guns within small arm category like 12.7mm and above,” said J.D. Patil, senior vice president, head, defence and aerospace, member of the boards of L&T Heavy Engineering and L&T Shipbuilding, at L&T.

Patil said L&T will not participate in ammunition production for small arms because even globally, this manufacturing is done in the SME (small and medium enterprises segment). The final assembly plant to produce few million bullets cost‎ less than Rs.20 crore.

“These are not expensive and this is a SME category item rather than for a company like L&T. The explosive chemical plant is more capital intensive, but filling explosive can easily be bought. Ammunition is also an ultra-sensitive matter, and the smallest of misappropriation by any staff or a security breach is too much an effort for a corporate of our size to cost-effectively manage,” Patil said.

He said small arms is the least interesting segment for a company like L&T that has invested in a heavy forge facility and also has highest level of experience and capability in the missile domain in the private sector.

Experts, however, think otherwise.

“The new policy is a major incentive for global manufacturers to set up local manufacturing. Besides, it builds a case for global firms interested to address the substantial Indian demand, it ensures Indian soldiers and armed forces will have options to get world class primary armament in India. It will also help in ensuring seamless upgrade of technology for the user. Local manufacture, if planned well, may also bring substantial cost improvements,” said Rahul Gangal, partner at consulting firm Roland Berger Strategy Consultants.

According to a July EY note, the annual production plan of OFs is based on targets mutually agreed with indentors, i.e., Army, Navy, Air Force, Central and State Police etc.

“The production programme for ammunition, weapons and vehicles, material and components as well as armoured vehicles are fixed for one year and generally there has been a shortfall of more than 34% in meeting such targets. OFB has been falling short of the target by 30%–35% year on year to fill in the demand,” EY said.

The new arms rules is also complement Prime Minister Narendra Modi’s emphasis on defence equipment as part of his Make in India campaign.

India is the world’s largest importer of defence equipment and spends around $24 billion a year, according to Stockholm International Peace Research Institute.

Make In India seeks to reduce import and pushes for indigenous products.

P.R. Sanjai

TOPICS:

• ARMS RULE 2016
• AMMUNITION
• ARMED FORCES
• DEFENCE EQUIPMENT
• NARENDRA MODI

 

[Indx TechStyle]

India Gets its Guns

Red carpet for global small arms manufacturers.

Driven partly by its developing rivalry with China, India is welcoming global gun manufacturers to set up shop to produce small arms including handguns, rifles, carbines, sub-machine guns, light machine guns and grenade launchers.

New investment rules allow private players to establish manufacturing units, sell to Indian defense forces and even cater to export orders. Forty-nine per cent foreign ownership will be permitted automatically but up to 100 percent FDI can be allowed if “modern technology”’ is used to manufacture indigenously. Top global manufacturers including Colt’s Manufacturing Co., Heckler & Koch and Israeli Weapon Industry and others have already huddled with Indian companies to establish synergies and gain a foothold in the sector.

Punj Lloyd Ltd has already established a 51-49 joint venture with IWI, a longtime supplier to the Indian security forces. This October, the company will set up a small arms factory in Malanpur in the central Indian state of Madhya Pradesh for assault rifles and submachine guns in collaboration with IWI, a first for the country.

Although internal security threats are a worry along with the fact that local manufacturers are handicapped by red tape, China’s increasing bellicosity is major reason for India to become the world’s largest weapons importers according to latest report of the Stockholm International Peace Research Institute. The report adds that China – the world’s third largest arms exporter – sold most of its weapons to India’s neighbors, further fuelling the latter’s insecurity.

The China-Pakistan nexus is another headache for India. It has led to Beijing’s heightened involvement in the disputed Kashmir region, making New Delhi view the situation as a conjoined threat to its security.

The current policy changes in the sensitive defence sector are being projected as a win-win for the country’s underserviced defence sector as well private players. However, the latter remain cautiously optimistic of the government’s move. Underpinning their scepticism is Modi’s Make in India drive, which seeks to transform India into a global manufacturing hub, but which they say has yet to show any tangible or meaningful technology buildup in the country. However, they have their fingers crossed that a similar disenchantment isn’t awaiting them.

Under the new directives, for the first time foreign and private sector companies will be able to manufacture small arms and ammunition in India. Facilitating their task further will be a recent revision in the Arms Rules 2016, modified by the government last month, which gives clear instructions to private companies on how they can set up businesses, sell small arms and bring in foreign investment.

According to a defence ministry source, Indian companies will be granted a seven-year license after vetting to set up units in special economic zones. “The arms manufactured will also be allowed for export subject to the approval of the Ministry of Home Affairs in consultation with the Ministry of External Affairs, Ministry of Defense and Ministry of Commerce, on a case-by-case basis,” he added.

This liberalization, defense analysts say, marks a refreshing change from an earlier era when small arms manufacturing was a state monopoly and private players were barred from entering the fray. This resulted in resource-crunched and undercapitalized private companies struggling to keep pace with exponential demand from the country’s three armed forces, paramilitary forces and the state police.

“The earlier restrictive policies and the structure of the industry constrained domestic defense production with only 30 percent of the demand being met internally. The participation of private sector is even lower at about 10 percent,” said Jayant Rathi, a defense consultant with the Reliance Group.

These deficiencies, Rathi said, result in small arms being imported routinely at a staggering cost to the state exchequer. As part of the Indian Army’s “Future Infantry Soldier as a System” 2020 program India will pay an estimated US$10 billion to acquire small and medium arms from countries like Israel, Germany, Switzerland and the US over the next four years.

However, rising discontent among the armed forces about the limited availability of weapons and their inferior quality, and pressure from private companies to allow them entry into the sector over the years, resulted in the government allowing private participation in 2001. Companies like Punj Lloyd, L&T and Bharat Forge were granted licenses by the Department of Industrial Policy and Production to set up bases. However, delays and bureaucratic non-clearances scuppered progress.

According to a senior bureaucrat in the defense ministry, the biggest bottleneck confronting the private players is the multiplicity of government agencies involved in the procurement process. “Each government department has its own set of convoluted rules and procurement processes which seem designed to exasperate entrepreneurs. The harassment multiplies manifold if foreign companies are involved in deals due to the lure of kickbacks. This is really frustrating for companies who just want to get on with the task of earning legitimate profits.”

Experts say that though historically India has always preferred the public sector over private in defense production, changing geopolitical and military dynamics have forced a rethink. The Modi government is now looking for synergies and collaboration with defense production giants, especially from the west. For the latter, buffeted by a volatile economic climate, India remains an alluring prospect.

Given the current nationalist government’s thrust on indigenization and job generation, private companies are hoping that the new initiatives will help them cater to not just domestic demand but also enter the regional export market in a significant manner.

“The government is very clear and focused in its vision for the defense sector. Indigenization of the industry and acquiring advanced technologies will help in minimizing the country’s dependence on imports,” a senior defense ministry official told Asia Sentinel. “It will create the desired ripple effect that we’re hoping to initiate in the sector.”

Neeta Lal is a New Delhi-based editor & journalist.

 

[Indx TechStyle]

India’s security needs call for serious private participants
Given India’s geo-strategic realities, its burgeoning defence needs are only likely to grow.

In an effort to make it easy for the private sector to participate in the Make in India programme, the government has given licences to many private companies to manufacture products for the country’s defence needs. Photo: Abhijit Bhatlekar/Mint

Driven by the lure of a huge growing market, Indian companies, big and small, are making a beeline to become suppliers for the enormous armament needs of the country. For the year 2015-2016, India’s defence budget was $40.4 billion, an increase of nearly 8% over the previous year, and it is likely to continue growing at a similar rate of growth over the next five years.

Given India’s geo-strategic realities, its burgeoning defence needs are only likely to grow. India is the world’s second-largest arms importer and the Indian government’s focus for the defence sector has been indigenization of the industry and acquiring advanced technologies from abroad which will in turn help to reduce dependence on imports from other countries. Currently, virtually nothing material in terms of our defence requirements is made in India.

In an effort to make it easy for the private sector to participate in the Make in India programme, the government has given licences to many private companies to manufacture products for the country’s defence needs. The new defence offset policy, whereby foreign suppliers of equipment need to manufacture a certain percentage of their products in India, has given Indian firms a chance to play partners to global companies.

As Mint reported in April this year, since October 2015, when the Department of Industrial Policy and Promotion (DIPP) granted permission to 19 private companies to manufacture defence products such as simulators, there seems to be a rush to announce plans for manufacturing defence equipment. Companies ranging from Himachal Futuristic Communications Ltd (HFCL) and Ananth Technologies Ltd, to more familiar names like Titagarh Wagons Ltd, Taneja Aerospace and Aviation Ltd, Punj Lloyd Aviation Ltd, Bharati Shipyard Ltd, Ashok Leyland Defence Systems Ltd and big, established ones like Bharat Forge Ltd (BFL), Reliance Industries Ltd (RIL), Tata Group, Larsen and Toubro Ltd (L&T) and the Mahindra Group, have all thrown their hat into the ring. The Anil Ambani Group and the Adani Group are the latest to enter the race.

For these Indian companies, queuing up for a lucrative new business, there is the promise of the vast domestic market as well as a global market in which defence equipment is a recession-proof play. The world defence market climbed to $65 billion in 2015, up $6.6 billion from 2014, consulting company IHS Inc. said in its Global Defence Trade Report. That’s the largest yearly increase in the past decade. In Asia, countries bordering the South China Sea have raised their defence spending by 71% since 2009 on purchases such as that of aircraft and anti-ship missiles, in an effort to counter China’s aggressive intent in the region.

What’s more, over time, expertise in defence leads to the building of capabilities in frontier areas of technology like AI and robotics which in turn fuel advances in medicine. For any company that builds domain expertise in a business like defence, the spin-off benefits are also enormous. Over the years, as Israel developed capabilities in defence electronics, it has also built a reputation in areas such as medical equipment, digital communication and advanced agricultural technologies.

And yet there will be worries at the rash of entrants signing up for a piece of this action. A quick entry with the intention of an equally quick cash-out and exit can, in the long run, actually hurt India’s security. There’s a strong chance most of the Indian companies that have rushed to get into the fray will not be around 10 years from now. Either the demands for capital that a business like this makes or the inability to manage its vicissitudes will ensure that.

Only companies that have the patience and the resilience to build capabilities and stay the course will be successful, besides answering India’s needs for indigenously manufactured equipment. That calls for the kind of rapid absorption of technology and upscaling of expertise that Bharti Airtel, which started the business in collaboration with Singapore Telecom, has shown. Coupled with that is the need to own the entire value chain much like Reliance Industries did with its ownership of the upstream and downstream petroleum business. Building a lasting business from scratch isn’t about being opportunistic but about being visionary and having the commitment to stay invested for the long haul.

It isn’t going to be easy for Indian firms. Data from think tank Stockholm International Peace Research Institute (SIPRI) shows that the defence industry continues to be dominated by companies based in the US and Western Europe, with firms from these areas taking up the top 10 positions on the list of the biggest arms makers. The largest weapons manufacturer in the world, Lockheed Martin, which makes fighter aircraft such as the C-130 Hercules and the fifth generation F-35 Lightening II, receives nearly 10% of the Pentagon’s funds as the largest US government contractor.

Creating such a powerhouse in India is crucial to its long-term security needs. But it isn’t going to be easy and is made doubly difficult if too many fly-by-night operators get into the business.

Sundeep Khanna is a consulting editor at Mint and oversees the newsroom’s corporate coverage. The Corporate Outsider will look at current issues and trends in the corporate sector every week.

 

[Indx TechStyle]

Punj Lloyd set to ink Rs 670-cr deal to upgrade army’s Soviet-era guns

Punj Lloyd emerged as the lowest bidder for the contract last year, beating off competition from state-run Bharat Electronics Ltd.

The government is in the final stages of awarding a Rs 670-crore contract to Punj Lloyd for upgrading the army’s ageing Zu-23-2B anti-aircraft guns, capable of engaging both aerial and ground targets.

The firm has partnered with Slovakian defence company EVPU to convert the mechanical Soviet-era gun, developed in the late 1950s, into an automatic system. The plan is to upgrade 468 guns.

Ashok Wadhawan, who heads manufacturing for Punj Lloyd, told HT that the deal was on the verge of being inked and the guns would be upgraded over a period of four years. The contract covers maintenance of the guns for 15 years.

Punj Lloyd emerged as the lowest bidder for the contract last year, beating off competition from state-run Bharat Electronics Ltd.

Larsen and Toubro (L&T), Tata Power SED and Alpha Design Technology also competed for the order, but were knocked out of competition in the early stage.

“The contract is not a big one, but it will help us build capabilities at our Malanpur plant in Madhya Pradesh,” Wadhawan said.

The existing guns will be upgraded with an electro-optical fire control system for detecting, tracking and engaging targets with precision. The modified guns would have all-weather day/night capability.

The firm is also competing for a Rs 1,500-crore contract to upgrade the army’s vintage 130mm M-46 artillery guns to 155mm standard – 155 mm denotes the diameter of the shell.

“The up-gunning will increase the gun’s range and its ability to deliver heavier explosives to cause greater destruction. The upgrade should have happened by now. We are running behind schedule,” said former army chief General Deepak Kapoor, an artillery officer.

Punj Lloyd has partnered with Serbian firm Yugo Import for the programme. Its competitors include Ordnance Factory Board and Bharat Forge.

The 130 mm gun has a range of 27 km. The upgrade will increase the gun’s range by 34%, enhance its terminal effectiveness by 260% and enlarge the lethal area by 330%. The army has completed summer trials and is gearing up to test the systems on offer in winter.

Wadhawan said Punj Lloyd was also preparing to take part in a tender to provide a replacement for L-70/Zu-23-2B guns, a Make in India project worth nearly Rs 17,000 crore.

Strategic affairs expert Brigadier Gurmeet Kanwal (retd) said the army’s air defence capabilities needed to be scaled up swiftly and the L-70/Zu-23-2B replacement programme was a crucial one.

Tags :

• Soviet-Era Guns
• Anti-Aircraft Guns
• Indian Army
• Punj Lloyd

 

[Indx TechStyle]

Small arms sector belongs to SME: Jayant Patil, L&T

"The current policy says that with the security guidelines in and all checks and balances in place, the government can certainly trust private sector," said Patil.
In this interview with ET Now, Jayant D Patil, L&T talks about opening up of the defence sector and how it will benefit SMEs and other things. Edited excerpts:
The change in the arms rule in 2016 has brought about a fair amount of interest within companies that are looking to service the defence sector on local turf and are trying to spearhead partnerships with international majors within the same space. How do you see this bridging the deficit of ammunitions that the arm forces have in India?

Under the Industrial Development and the Regulations Act, these licences for small arms were allowed right from 2001. Our policy had an anomaly that Ministry of Home controls the arms under the Arms Act. There are certain calibres which are typically under the small arms category and there was a overlap between these two policies. It took a good amount of time resolve this. With the current government's clear directives to make 'Make In India' happen, and addressing the shortages, this has happened now in 2016.

The new act says that Ministry of Home will be monitoring the small arms related activity, which essentially in principal existed in 2001, but was never issued under the Arms Act. It was always issued under the IDR. There are companies which had licences right in 2001, but they pulled back somewhere around 2006-2007. In this interim period of 2007 to 2016, the private sector was not being looked at as someone who can be trusted to do this kind of a production. The current policy says that with the security guidelines in and all checks and balances in place, the government can certainly trust private sector.

In one of the articles, you had stated that L&T is not that keen, this would largely be a SME-led model for supplies. Why is that the case, why would a lot of big marquee businesses not venture into the Arms Act?

In 2001, this was a matter of target for us. Today having grown into making platforms and complete systems of systems, small arms is not something which would be of interest to us as it was when we were in SME. Today we are matured, we do far bigger things. Small arms is something which truly belongs to the SME and that is what I had said in the article which you referred. It is essentially an investment which is in the reach of a small entrepreneur. So anyone who is a good entrepreneur, who can invest Rs 40-50 crore can become a part of this. It also means a business for production of ammunition which again is something that can be done at this kind of cost. So we are talking of a sector today in terms of investment, in terms of physical ability to produce and availability of technology.

With the government opening the sector to 100 per cent FDI via automatic route, would L&T be looking at tie ups? Have there been dialogues or conversation on foreign investors investing and setting up shop?

The larger calibres is certainly for matured companies. Talking of artillery, air defence, which is essentially 20-25 mm and above, this is where the current Arms Act would actually not control anything. There are things which we are doing in each of those major segments. We have certain relationships in place and we are trying to do things in larger calibres.

READ MORE:
Jayant D Patil|Defence|Arms Act

 

[Indx TechStyle]

‘India marching towards self-reliance in defence’
Thrust is on indigenisation of products, says Subhash Bhamre.

Remembering history:Minister of State for Defence Subhash Bhamre pays tribute at the Sepoy Mutiny memorial pillar in Vellore on Friday. — Photo : C. Venkatachalapathy

India is progressing in the field of defence and will soon become self-reliant, according to Minister of State for Defence Subhash Bhamre.

The Minister, who was in Vellore for an interactive meeting with BJP workers on Friday, said the thrust was on indigenisation of products in the defence sector.

“For the first time since Independence, our thrust is on indigenisation of products in the defence sector. We are proud of our scientists especially in the DRDO. We have 56 laboratories. We have supersonic cruise missile in which 86 per cent components are Indian,” he told reporters.

Mr. Bhamre had earlier paid tributes at the Sepoy Mutiny memorial pillar at Makkan junction and visited the Archaeological Survey of India museum and Government Museum inside Vellore Fort. He added that the Prime Minister had directed the Ministry to develop its capability so that the country can be self-reliant in the field of defence. “Already, 49 per cent Foreign Direct Investment has been allowed in defence sector. We are encouraging the private sector too. There would be no security threats as only their scientific labs will be utilised,” he explained.

The Minister pointed out that earlier, defence procurement used to take years and years. “Under the government led by Prime Minister Modi, we have evolved a system in which the procurement time is reduced and things can move on,” he added.

He pointed out that due to the pro-poor policies of the Modi-led government, the country, in the last two years, had achieved progress which 68 years of Independence could not achieve. “The PM had promised a non-corrupt and transparent government. One of the big achievements is that there has been not a single scam in the last two years,” he said.

When asked about a long pending demand for a Sainik school in Vellore as there are many army and ex-servicemen families in the district, he said he would look into the matter and do whatever was possible.

 

[Indx TechStyle]

Defence opens avenues for private firms

BHUBANESWAR: The Indian Army has opened up part of its procurement to Indian companies in line with the Make in India initiative of the Central Government. Now, it wants to procure defence equipment and products from Indian companies, Lt General Subrata Saha said.

Saha was in the city to interact with the industry captains and companies who have evinced interest in taking up defence contracts.

The event was organised by Chamber of Indian Industry (CII), Odisha.

Saha, who is also the Deputy Chief of Army Staff (planning and systems), said the revised Defence Procurement Procedure (DPP), 2016 is in line with the Government’s Make in India initiative which encourages indigenous design, development and production of defence-related equipment.

Of 40 billion dollar defence budget, 40 per cent goes into capital procurement. Out of the rest budget amounting to USD 16 billion, products worth USD 10 billion are imported and USD 6 billion worth defence products and equipment are procured from defence PSUs like the DRDO, HAL and ordinance factories.

↑↑↑↑↑
Here, I got something informative.

With the new provisions in the DPP, Indian companies can now participate in import segment, Saha said.

“We have good capability at home to develop necessary equipment. Products designed, developed and manufactured in India will have the highest priority. This October, a defence fair will be held at Air Defence College in Gopalpur to exhibit the product and requirements of the Indian Army,” he added.

The Army has been using industry associations’ interfaces to connect directly with the industry. It is now engaging the private players after the Defence Ministry revised the procurement procedure.

The Army, through a series of direct industry programmes, wants Indian firms to come up, he added.

The newly set up Army Design Bureau is handling the affairs of encouraging and scrutinising Indian players for this purpose.

Prior to this, similar interactive sessions were conducted at Ahmednagar, Coimbatore and Bangalore.

 

[Indx TechStyle]

Indian Army moots ” Army Design Bureau ” to design own weapons

When India is facing nemerous cross-border troubles, terror and Naxal threats and insurgency in the Northeast, the Indian Army is operating in combat zones with sub-standard assault rifles. With the Army on the lookout for a worthy successor to the homemade INSAS rifle, the primary weapon for the armed and paramilitary forces despite its inherent problems, DRDO has got another slap on its face.

For nearly two decades, the Army has been looking to replace the INSAS rifles as there has always been a mismatch between its end-user and the manufacturer. To overcome this handicap, the Army is setting up its own weapon design think-tank.

Titled Army Design Bureau, the independent body will be headed by a Major General. It will function as the Army’s interface with leading research institutions such as IITs, DRDO, academia, Defence Public Sector Units and the industry to enable them to understand and appreciate the Army’s need. With this, the Army aims to bridge the gap between field requirements, available weaponry and military hardware.

For example, the main battle tank Arjun Mark-2, being developed by DRDO, has not been able to meet the Army’s requirements despite repeated modifications. Sources claim that officials from the agency fail to understand the Army’s requirements.

Even the Army’s 2009 tender for over 1.86 lakh bulletproof jackets after the ones fielded by the vendors failed the trials.

The Infantry unit desperately needs over two lakh primary 7.62x51mm assault rifles, 1.6 lakh close quarter battle carbines, 16,000 7.62mm light machine guns and 3,600 7.62 specialised sniper rifles. The new bureau is expected to expedite the process of acquisition.

It will be the main repository of technical know-how and will assist in the making of General Staff Qualitative Requirements, which lays down why the equipment is required, its physical and operational details, and the maintainability and quality requirements. This requirement will have innovative ideas developed by the field formations and generation of long-term research requirement for the Army and sharing it with DRDO and academia.

The design unit will have two wings. Technical resources will be in Delhi, while simulation, innovations and design wing will be in Secunderabad, a hub of defence research industry. “It will not only narrow down search of modern day weaponry but also pave the way for high-quality research and product development,” said an official.

The Army has wanted for long a separate organisation that can perform the role of a facilitator between the research and development efforts and procurement of weapons and equipment. This specialised design unit will bring in a synergy between multiple directorates of the army, responsible for procurement.

Officials claim that in modern warfare and increasing influenced technology, design and development and subsequent procurement of military hardware and equipment is becoming increasingly complex.

The critical military procurement should take place in a time sensitive environment to ensure timely availability of the weaponry.

 

[Indx TechStyle]

Defence procurement: Abundance of good intentions; time now for action

To instil confidence and build the government’s credibility it is now needed is the award large programmes to Indian companies.​

India ranks among the top 10 countries in the world in terms of its military expenditure and is the world’s largest importer of defence equipment. In order to achieve the goal of self-reliance in defence production, the Government, under the umbrella of “Make-in-India” campaign, has rolled out several policy initiatives in the last two years to lower entry barriers and improve ease of doing business: significantly simplifying conditions for FDI into the sector and allowing up 49% on the automatic route, relaxing norms of industrial licensing and defence exports, bringing flexibility in discharging offset obligations and providing a level playing field for private players. It has also made more fundamental changes that have long term implications. Taken together, these policy changes have created an environment that will provide multiple opportunities for private industry. What is now needed is the award of large programmes to Indian companies to instill confidence and build the Government’s credibility. But let us first review some of the key changes.

The Defence Procurement Procedure 2016 (DPP), which was made effective on 1st April 2016, has introduced a key new acquisition category called Indigenous Design Development and Manufacturing (IDDM), which has been given the highest priority. Technological development is essential for gaining strategic and competitive advantage in defence and thus, IDDM is a game changer as it would provide the necessary incentive to the private sector to invest in research, design & development activities and also compel foreign companies to explore partnerships with Indian companies. However, achieving 60 % indigenization would be difficult, given that most Original Equipment Manufacturers (OEMs) are struggling to achieve the existing 30% prescribed under earlier programmes. Hence the timing to achieve such a target will require a degree of flexibility. There also does not appear much justification in having two levels of indigenous content, since a 40% indigenous content reduces the distinction between IDDM and Buy and Make Indian categories.

The “Make” category has not taken off in the country so far. Thus, the changes in the “Make” procedure in DPP 2016 are a welcome step towards reducing investment risks. The new Make procedure has been split into two – Make-I (government funded projects) and Make-II (industry funded projects) with special focus on micro, small and medium enterprises (MSMEs). It has increased the provision of funding of projects under Make-I category to 90% from 80% and also reserved low value projects for MSMEs. Additionally, up to 100% of project costs will be refunded in case of delay in issuance of RFP by more than 24 months. The list of schemes to be taken up has also been shared with the industry.

Another important change is moving beyond the traditional ‘L1’ approach and allowing ‘essential’ as well as ‘enhanced performance’ parameters. The vendors who meet enhanced performance parameters will be provided additional credit score during evaluation of their product cost. The new DPP also ensures that the procurement process does not get derailed by single vendor situations which have led to a large number of delayed or cancelled programmes.

There has also been a welcome change in the mind-set in the government. The Department of Defence Production, which was perceived as favouring DPSUs/OFB, has become extremely proactive in attracting private domestic investment. Along with the end users (the armed services), it has been conducting seminars highlighting the requirements of the forces’ and opportunities for Indian companies.

The Government has exhibited its good intentions and taken many positive initiatives. The time now is for action: by the Government in awarding the first large programme to Indian private industry. For its part, industry too now needs to move from making demands for further changes to concluding partnerships and building capability in identified areas so that it can participate in future programmes (over 90% of the “Acceptance of Necessity” in the last two years have been to programmes in which Indian companies will be prime). Companies will have to lay emphasis on setting strong foundations to their businesses to capture value as the Indian aerospace and defence market matures over the next decade. In doing so, stakeholders need to understand the distinct nature of the market, their participation in the value chain, nuances involved in building capabilities in niche areas and, most important, investing for the long run.

Tags: Defence, Government, Make in India, Value Chain

 

[Indx TechStyle]

'India marching towards self reliance in missile system'

HYDERABAD: India is steadfastly marching towards complete self-reliance in missile systems and technologies, Scientific Advisor to the Defence Minister G Satheesh Reddy said today.

"To create a significant impact on India's science and technology and to promote highest standard of engineering education and practices, professional societies, scientific bodies and academic institutes have to re-align the young force of the country towards the forefronts of current needs and developments," said Satheesh, also the Director General, Missiles and Strategic Systems, DRDO.

The distinguished scientist was today presented with prestigious IEI-IEEE Award for Engineering Excellence-2015 in recognition of his significant national contribution towards Missiles and Aerospace technologies at Bengaluru, an official release said here.

The award was given by ISRO chairman A S Kiran Kumar in the presence of Barry L Shoop, President, IEEE USA, among others, during the ceremony as part of the Golden Jubilee celebrations of the IEEE Asia-Pacific Region at Bengaluru.

"His pioneering work in Navigation and Avionics technologies has been integral in the success of several defence projects making India self reliant in many vital areas," it said.

Satheesh said the award is a true tribute to the efforts of each and every team member of DRDO.

READ MORE:
Satheesh|Kiran Kumar|ISRO|Hyderabad India|G Satheesh Reddy|
Currently, we make most of missile ourselves but import seekers from Russia and Israel. After making indigenous one, we'll able to produce missiles with completely homegrown tech.

 

[airtel]

Lockheed Martin looks to set up electro-optical sensor partnership in India

Jon Grevatt, Bangkok - IHS Jane's Defence Industry
24 August 2016
Lockheed Martin is in talks with Indian company Vem Technologies about a partnership to produce sensors, a spokesperson from the US corporation has confirmed to IHS Jane's.

The partnership is geared towards producing and integrating electro-optical sensors that could support Indian military applications related to intelligence, surveillance, and reconnaissance missions.

The Lockheed Martin spokesperson said discussions between the two companies are taking place about the partnership but did not elaborate.

Based in Hyderabad, Vem Technologies' website indicates that the partnership would be focused on gyrocam surveillance systems, which it is already produces for military and homeland security applications.

The talks on the industrial partnership follow a recent decision by the government of Andhra Pradesh to allot 350 acres of land to Vem Technologies to establish facilities for defence production and systems integration activities.

http://www.janes.com/article/63179/...p-electro-optical-sensor-partnership-in-india

_______________________________________________________________________________________________________


I think this is very good opportunity for India , we can use these sensors in AMCA , AURA & all our drones & fighter planes .

 

[Indx TechStyle]

Indian Navy forum looks to 'Make in India' with MSME participation

CHENNAI: Indian Navy Forum, in association with ASSOCHAM and SICCI, said that they aimed to come up with the first Indian Aerospace and Defence manufacturing cluster with the help of the government of Tamil Nadu in Sriperumbudur in line with "Make in India."

Trying to optimise the defence forces reliance on Indian MSMEs, the new cluster could be the next growth engine in the state, said K Balasubramanian, chairman, SICCI MSME Committee.

"The establishment of an Aerospace and Defence Park in Tamil Nadu would result in the generation of more than 10 lakh jobs and would stand to attract investments of more than Rs 60,000 crore and bring in Rs 20,000 crore of tax revenue to the state's coffers, over a ten year period. Our vision is to create the first Indian Aerospace and Defense Park under the new DPP," said Vinod Surana, co-chairman, ASSOCHAM Southern Region.

"The role of MSMEs in making Indian defence self-reliant is crucial and there is great potential if we can build a strong MSME ecosystem. Currently we are importing many parts for floats, hulls, and sensory aids - it would be great if we can originate and service turbine engines, alternators, auxiliary mechanical systems, fire fighting systems," said Indian Navy Vice - Admiral (Retd) B Kannan. Kannan, who is also the chairman of ASSOCHAM Defence Manufacturing Committee, said that Tamil Nadu's industrial strength needs to be harnessed for the aid of the defense forces.

"As many as six major projects at a cost of Rs 2.50 lakh crore can be indigenized for equipment and systems for the hull, propulsion and Defense weaponary and sensors. TN has the capability for undertaking defence production, and MSMEs need to step forward to engage with the Indian Navy," said Vice Admiral AV Subhedar, PVSM, AVSM, VSM, Chief of Materiel, Integrated Headquarters (Navy), New Delhi, while deliver the key note address.

 

[sorcerer]

India Rejects DCNS Proposal to Locally Produce AIP Sub Tech

NEW DELHI — India's Ministry of Defence (MoD) has decided not to give DCNS of France permission to develop a local, fully owned subsidiary to manufacture air-independent propulsion (AIP) submarine systems on the advice of state-owned Defence Research and Development Organization (DRDO), which is developing its own AIP systems, according to a senior MoD official.

DRDO had "impressed" upon the ministry that DCNS wants to bring to India the same technology that DRDO is developing, said the MoD source, who spoke on condition of anonymity.
DCNS is the first overseas company to have sought clearance to invest 100 percent through FDI by setting up a fully owned subsidiary in the defense sector.

The Indian government in June this year changed the FDI laws to make it easier for overseas companies to receive permission for a 100 percent FDI in the defense sector.
However, Arun Prakash, a retired Indian Navy admiral, disagrees with the ministry's decision.
"If we keep a cool head, we should allow this (clearance of DCNS proposal) to proceed uninterrupted. This is most valuable and arcane technology, and there is a lot we can do with it in the future," Prakash said.

Bernard Buisson, the managing director of DCNS India, did not comment on the proposal's rejection, despite repeated requests.
No MoD officials would comment on the DCNS proposal; nor would they comment on whether reports of the leakage of vital data pertaining to six Scorpene submarines being produced under license by DCNS at Mumbai-based Mazagon Docks Limited (MDL) could have led to the proposal's rejection.
"I do not think cancellation of the ongoing project will solve any problem or mitigate the setback faced by the Indian Navy (because of the leak)," said Amit Cowshish, a former MoD financial adviser.

A senior Indian Navy official noted that the homemade AIP system is at a "project definition" stage, the prototype is being developed and once ready will be fitted in the last two French Scorpene submarines being built at MDL.

Early this year, DCNS had sought a license with 100 percent FDI to set up a company to undertake design and industrialization studies, research and development activities, manufacturing, and maintenance in relation to AIP systems for submarines. The DCNS proposal was deferred in March by the Foreign Investment Promotion Board, the body under the Ministry of Commerce and Industry, which assigns FDI licenses.

The Indian Navy is to float a $12 billion tender next year for the purchase of six AIP-enabled subs under Project P 75I. DCNS is aggressively chasing the program.
The tender will be given to a do
mestic shipyard, which in turn will tie up with an overseas company to build the six subs.
Along with DCNS, Germany's ThyssenKrupp Marine Systems, Navantia of Spain, Saab of Sweden, Rubin Design Bureau-Amur Shipyard of Russia, and Mitsubishi Heavy Industries and Kawasaki Heavy Industries of Japan are in the race for the program.
"DRDO fears that with DCNS getting 100 percent FDI approval then it could become easier for DCNS to sell its AIP technology for the forthcoming tender of six Submarines with AIP technology," said a senior naval analyst, who spoke on condition of anonymity.
Source>>

 

[Indx TechStyle]

Army Design Bureau to boost production of home-grown weapons

New Delhi: The Indian Army today formally announced the setting up of the Army Design Bureau (ADB) in New Delhi.

Chief of Army Staff General Dalbir Singh made the announcement on ADB at India Habitat Centre at an event attended by top defence officials and representatives from industry, academia and research organisations.

Interestingly, the Indian Army is taking a plunge to launch its own design wing 50 years after the Indian Navy established the Naval Design Bureau (NDB), to conceive and support home-grown missions. The NDA government’s Make in India initiative too propelled Army’s desire to have its own design wing.

@Akask kumar Hope the attempt works.

Gen Dalbir Singh said that the Indian Army is striving hard to reduce imports of defence inventory, in its pursuit for indigenisation. “A lot of spare parts and inventory of the Army which were being procured through imports did not involve high end technology and as such could be made by domestic industries,” Gen Dalbir Singh said.

An Army Spokesperson said that 10 projects have been identified under ‘Make’ category for manufacturing by domestic defence industry.

The 10 projects that were indentified include: 125 mm smooth bore barrel with gun article, improved ammunition for T-72 and T-90 tanks, 1000 HP engines for T-72, individual under-water breathing apparatus, environment control unit and auxiliary power units for T-90 tanks, advanced pilotless target aircraft, manoeuvrable expendable aerial targets, tracked light dozers, assault track way and modern aircraft refuelling pump.

“The Indian Army is also going to publish a comprehensive compendium giving out specific problem definitions, which shall help the R&D fraternity in developing indigenous solutions for the Army’s modernization needs,” says the spokesperson.

Army hopes that with the setting up of ADB, it could interface in a better manner with DRDO, academia, DPSUs, OFBs and private industry to deliver for high quality defence products.

Meanwhile, in a related development linked to Indian Army, Lt Gen Bipin Rawat will take over as the Vice Chief of the Army Staff (VCOAS) from tomorrow. He succeeds Lt Gen M M S Rai, who retired today.

Prior to taking over as the VCOAS, Lt Gen Rawat was the General Officer Commanding-in-Chief, Southern Command.

 

[Indx TechStyle]

Tata Power to help produce Javelin anti-armour missile system

Javelin has been adopted by international armed forces around the world. It is currently fielded with the US Army and US Marine Corps.

KOLKATA: The Javelin Joint Venture team, a partnership between Raytheon Company and Lockheed Martin, signed a letter of intent with Tata Power Company operating through its strategic engineering division, to explore co-development and production of the Javelin anti-armour missile system.

Javelin is a compact, lightweight missile designed for one-soldier operations in all environments. It is made by the Javelin joint venture, a partnership between Raytheon Company and Lockheed Martin. Javelin has been adopted by international armed forces around the world. It is currently fielded with the U.S. Army and U.S. Marine Corps, and has also been approved for 15 foreign military sales customers.

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 98,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

Raytheon Company, with 2015 sales of $23 billion and 61,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. Raytheon provides state-of-the-art electronics, mission systems integration, products and services, sensing, effects, and mission support for customers in more than 80 countries.

"This agreement brings together three world leaders in aerospace and defense technology to extend Javelin to new customers, new applications and new platforms. "With this deal, we are also reinforcing our continued support of the 'Make in India' initiative," John Halvey, Javelin Joint Venture president at Raytheon Missile Systems said.

As part of the letter of intetnt, the Javelin Joint Venture and Tata Power SED will create a strategy to co-develop and produce the Javelin missile system and integrate platform mounts to meet Indian requirements. This includes ground combat vehicle, dismounted infantry and rotorcraft applications.

Rich Benton, Javelin Joint Venture vice president and Javelin program director at Lockheed Martin Missiles and Fire Control said: "The combat-proven Javelin continues to fulfil a critical precision-strike role with our domestic and international partners. We look forward to working with Tata Power SED to maximize the versatility and lethality of Javelin on these new platforms."

In addition to meeting the government of India's "Make in India" objectives, the letter of intetnt establishes a framework for future technological cooperation between the Javelin Joint Venture and Tata Power SED.

"Since the early 1980s,Tata Power SED has established its R&D and 'Make in India' credentials, as part of Dr. Kalam's Integrated Guided Missile Development Program," said Rahul Chaudhry, Chief Executive Officer at Tata Power SED.

"Now, our partnership with the JJV will bring the world's best technology to our soldiers enabling battlefield supremacy. Indian industry will benefit immensely from the depth and range of this planned technology transfer and co-development," he said.

READ MORE:
Tata Power|Lockheed Martin|Javelin missile|Javelin Joint Venture