Indian defence industry exports watch

[Indx TechStyle]

India’s Defence Industry To Become Highly Competitive In Next 10 Years: Baba Kalyani
May 6, 2016 Posted by Team DefenceAviationPost
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Given the pace of progress in the policy environment today India will have a highly competitive and substantially large Aerospace and Defence industry in the next 10 years, said Baba Kalyani, Chairman & Managing Director, Bharat Forge.
He was speaking at the conference on Championing Manufacturing in India organized by Confederation of Indian Industry at New Delhi today.

(Also Read:Days of getting a defence contract because you know somebody are gone: Baba Kalyani, Bharat Forge)

In the last one and a half year several industry friendly measures such as defence licensing, opening of FDI, defence procurement policy (DPP), etc taken by the government have come as a big boost for the sector and would support in creating the right ecosystem for the sector to grow and become globally competitive, said Kalyani.

Going forward, creation of PPP’s would further support in harnessing the capabilities within the country and present a win–win situation for both government and industry, he said.

Lauding the various steps taken by the government to support the sector, Commodore Mukesh Bhargava (Retd), Head & Vice President (Special Projects Engineering Services, Larson and Toubro Ltd, said that the government is moving in the right direction and the industry is confident to deliver to the expectations. In the current changed environment with government moving towards more of transparency and sharing its perspective policies with the public has come as a big support to the companies in building and further strengthening the required skills and infrastructure in the perspective.

Expressing his faith on the country’s preparedness with skilled human resources, quality infrastructure and technology for Defence and Aerospace sector, Arijit Ghosh, President-Aerospace, Honeywell India underlined the need for a faster movement in creating conducive policies in the areas of land, labour laws, IPR and availability of financial capital which would not only support Aerospace and defence but also benefit all sectors in large.

Pratyush Kumar, President, Boeing India emphasized on the broad and deep capabilities India possessed in the Aerospace and Defence sector and stressed on the need for harnessing the same for achieving excellence. While a lot of progress has been done there is a further need to simplify and continuously fine-tune the issues related to availability of capital, labour, IPR and ease of doing business, he added.

 

[Indx TechStyle]

Defence Ministry Procuring Ammunition From Private Industry

The Government has opened up the defence industry sector for 100% Indian private sector participation in defence manufacturing including ammunitions subject to licensing. The defence industry sector was opened up for private sector to meet the growing needs of the Armed Forces and to harness the potential of private sector in our endeavour of achieving self-reliance in defence manufacturing.

Several private companies have been issued industrial license by the Department of Industrial Policy & Promotion (DIPP) for manufacture of arms and ammunitions.

The procurement of ammunition is an ongoing process which is done on war wastages reserve scale. So far, no decision has been taken to procure a specific type of ammunition from private sector.

Rajya Sabha TV News

 

[Indx TechStyle]

Rapid Modernisation Of Defence Forces In Progress

Modernisation of Armed Forces is a continuous process based on threat perception, operational challenges and technological changes to keep it in a state of readiness to meet the entire spectrum of security challenges. The equipment requirements of the Armed Forces are reflected in the planning process which includes 15 year Long Term Integrated Perspective Plan (LTIPP), five year Service-wise Capability Acquisition Plan and two year roll-on Annual Acquisition Plan. Capital Procurement of Defence equipment is carried out as per Defence Procurement Procedure (DPP).

A number of measures have already been taken to achieve Self Sufficiency in defence production by harnessing the capabilities of the public and private sector. These measures include according priority and preference to procurement from Indian vendors, liberalization of the licensing regime and providing access to modern and state-of-the-art technology to Indian industry by raising the cap on FDI in the defence sector. The new Defence Procurement Procedure 2016 (DPP 2016) has been promulgated for Capital procurements and has come into effect from 1st April 2016. DPP 2016 gives strong support to “Make in India” by according the highest priority to Buy Indian (Designed, Developed and Manufactured) (IDDM). It also focuses on enhancement and rationalization of indigenous content and includes provisions for involving private industry as production agencies and technology transfer partners. The ‘Make’ Procedure has been simplified with provisions for earmarking projects not exceeding development cost of Rs.10 crores (government funded) and Rs.3 crores (industry funded) for MSMEs.

During last three years, 94 contracts have been signed with Indian vendors with cumulative value of Rs.82979.70 crore for capital procurement of defence equipment for the Armed Forces such as Aircrafts, Helicopters, Tanks, Missiles, Radars, frigates and Simulators.

PIB News Service

 

[Indx TechStyle]

Airbus to source Titanium machined parts from Indian firm

Global aerospace major Airbus SAS on Thursday signed an agreement with Karnataka-based Aequs Aerospace to source 100,000 titanium machined parts for its A320 new engine programme.

"The parts will be delivered to Airbus plant at Toulouse (in southern France) where they will be assembled onto pylon structure for mounting engines on the aircraft wing," Airbus senior vice president Oliver Cauquil told reporters here.

As a tier-1 supplier of aerospace components and aerospace parts to Indian and global manufacturers, Aequs has set up a $100 million (Rs 667 crore) machining facility in the 250-acre special economic zone (SEZ) at Belagavi, about 500km from here.

"The multi-year contract for one-lakh titanium components to Aequs reaffirms our commitment to the government's 'make in India' progamme and increase sourcing from 45 Indian suppliers, including 15 in tier-1 category," said Airbus India president S Dwaraknath.

The French aircraft maker for civil and defence sectors plans to procure components and sub-assembly parts cumulatively valued at $2 billion by 2020 from $500 million in 2015 from Indian suppliers.

"We employ latest technology with quality processes to meet high standards of Airbus to whom we supplied detail machined parts for its single aisle, long range aircraft since 2009, including wing parts for its A380 jumbo jet," said Aequs chief executive Aravind Melligeri.

The three-tier Indian suppliers, including the state-run HAL provide engineering and IT services, aero-structures, detail parts and systems, materials and cabins to Airbus for its A380, A350 and A320 family and A330 programmes.

"Our procurement from India has grown 16 fold since we started sourcing over a decade ago," Dwaraknath said.

Noting that each Airbus aircraft had some part made in India, he said Aequs was one of the two firms from where the titanium parts were being sourced for the A320neo programme. The other is a western firm.

Aequs plans to invest an additional $100 million during the next four years to expand production capacity and achieve $300 million from sales, including exports by 2020.

"We will ramp up our workforce to 5,000 engineers by 2020 from 1,500 in 2015-16 for executing the multi-year contracts to our global customers, including United Technologies Aircraft Systems (UTAS), Safran, Bosch, Eaton, Baker Hughes and Halliburton," Melligeri added.

With overseas production facilities in Europe and the US, Aequs recently acquired SiRA aerospace group in France for an unspecified amount to provide precision machining, assembly, aero engine testing, landing gear, aircraft actuation components, welding and fabrication of aircraft assemblies to its European customers such as Dassault, Safran and UTAS.

 

[Indx TechStyle]

Target to raise India's defence exports to USD 2 billion: Manohar Parrikar

New Delhi: Defence Minister Manohar Parrikar on Saturday said the government will take into account the concerns while forging strategic partnership in the critical sector and set a target to raise India's defence exports to USD 2 billion in the next two years from the current over USD 330 million.

Parrikar, however, took a dig at defence players who were objecting to proposed strategic partnerships, saying it seems they have realised that they will not be able to "go through the window".

"After the windows have been well defined, (some) people, who have realised they they would be not be able to go through the window, have started canvassing that the Defence Ministry is facing problems over strategic partnerships," he said at a seminar here.

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Parrikar said he had received many letters from VIPs expressing concern about strategic partnerships. He said many a times the letters had similar content, which showed that at times the VIPs were signing off letters written by some other party.

"Their concerns are well expressed. We are taking into account those concerns. We are soon sitting for second round of small groups (to discuss strategic partnerships). I intend to take up strategic partnership model further and work out strategic partnerships in couple of projects where otherwise there is no solution," he said.

Parrikar said he would love to follow the already established model (of tendering) but there are problems.

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"How do you compare one fighter with any fighter," he said.

Former DRDO chief VK Aatre had earlier this year submitted a report to the Defence Ministry recommending guidelines for selecting domestic private firms for strategic partnership.

However, Indian private defence industry is divided over the issue with some big players batting for it while others pushing to delay it by at least five years.

Parrikar has already held a round of talks with the industry chambers over the issue.

Meanwhile, he said the government is pushing for defence exports and plan to export Tejas fighter aircraft as well.

"I know it is not easy. Weapons and export of defence goods have double problems. One is whom you are exporting to and the second is one has to go on checking all international requirements," he said.

Explaining that push for exports has started showing results, he said, "From a meagre 140-150 million dollars, this year, I think we have crossed 330 odd million dollars. We have doubled the export. I have set a target for myself. In the next two years, why not touch USD 2 billion. It is not an impossible target."

@LETHALFORCE @Navnit Kundu @abingdonboy @roma
Exporting $2 billion worth weapons means coming in top 5 exporters.
Is it really possible?

 

[Navnit Kundu]

Target to raise India's defence exports to USD 2 billion: Manohar Parrikar



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@LETHALFORCE @Navnit Kundu @abingdonboy @roma
Exporting $2 billion worth weapons means coming in top 5 exporters.
Is it really possible?

2$ billion is easily possible if we sell high ticket items.

There is a JV with Israel for fitting Dhruv helicopters with Israeli electronics and selling in the international market, and they have even taken a helicopter back to Israel for marketing purposes. There is also a JV with Russia for refitting and maintenance of Russian made ships which are operated by ASEAN countries. Another JV with Russia to make and sell SU30s. Another JV with Russia for Ka-226 helicopters. Mahindra got a large order to sell vehicles to Philippines police. We are also going to get some American JVs. We are already the biggest exporters of bullet proof vests. All of this will cross 2$ billion easily.

 

[Indx TechStyle]

2$ billion is easily possible if we sell high ticket items.

There is a JV with Israel for fitting Dhruv helicopters with Israeli electronics and selling in the international market, and they have even taken a helicopter back to Israel for marketing purposes. There is also a JV with Russia for refitting and maintenance of Russian made ships which are operated by ASEAN countries. Another JV with Russia to make and sell SU30s. Another JV with Russia for Ka-226 helicopters. Mahindra got a large order to sell vehicles to Philippines police. We are also going to get some American JVs. We are already the biggest exporters of bullet proof vests. All of this will cross 2$ billion easily.

If we managed to come in top 5,
Somebody will suicide by jumping from Karakorum.

 

[Indx TechStyle]

GRSE to Export Light Frigates to Philippines

US Navy
A Philippine Navy frigate is shown underway during an exercise with the US more

NEW DELHI — In a major win for the Indian warship building industry, India's state-run Garden Reach Shipbuilders & Engineers (GRSE) Ltd has emerged as the winner for Philippine Navy's big-ticket modernization program.

GRSE was the lowest bidder to supply two light frigates and hopes to seal the contract worth more than $321 million in the next two months, said one GRSE official.

A total of four firms joined the bidding for the Philippine Navy project: GRSE; Hyundai Heavy Industries Inc. and Daewoo Shipbuilding & Marine Engineering Co. Ltd., both from South Korea; and Navantia S.A. of Spain.

GRSE, administered by the Indian Ministry of Defence, has built 95 warships, including frigates, corvettes and fast patrol boats, since 1960.

DEFENSE NEWS

Domestic Shipyards To Build All Indian Naval Warships

GRSE's light frigate will be a design based on the Indian Navy's Kamorta-class anti-submarine corvette and will be capable of withstanding Sea State 7, which means it can withstand a wave height of up to 9 meters.

The 2,000-tonne frigate will be 95 meters long, have a combined diesel and diesel (CODAD) configuration propulsion system and be able to work in an area contaminated with nuclear, biological, and chemical agents.

In addition, it will have a tactical data link and radio capable of tactical communication. The frigates will have 76mm naval guns and fire control radar with a built-in electro-optical tracking system integrated into the Combat Management System (CMS).

The state-owned Goa Shipyard is also building two OPVs for the Sri Lankan Navy under India's government-to-government exchange agreement with Sri Lanka. First OPV will be delivered by end of this year and second OPV by middle of next year.

So, this is how we can export $2 billions.
Warships can really pull money and Philippines is a country with notable pocket.

 

[Indx TechStyle]

India looks to sign MoU with Kuwait on defense cooperation – Three Indian naval ships in Kuwait on goodwill visit

Indian naval ships INS Delhi (right) and INS Deepak (left) are docked at Shuwaikh Port.

KUWAIT: India is looking to sign a memorandum of understanding (MoU) with Kuwait to further strengthen defense cooperation between the two countries, said Indian Ambassador Sunil Jain on Thursday. He was talking to the Kuwait media onboard visiting Indian naval ship INS Delhi, accompanied by Rear Admiral Ravneet Singh NM, flag officer commanding of India’s Western Naval Fleet. Three Indian naval ships – INS Delhi, INS Tarkash and INS Deepak – arrived at Shuwaikh Port on Thursday on a three-day goodwill visit. Captain of INS Delhi Capt Sandeep Singh Sandhu, captain of INS Tarkash Capt Pradeep Singh, captain of INS Deepak Capt Sujit Kumar Chhetri and India’s defense attache, the Gulf region, Capt Gurpal Singh, were also present at the press conference.

Jain, Ravneet Singh and captains of the three ships called on Deputy Prime Minister and Defense Minister Sheikh Khalid Jarrah Al-Sabah on Thursday morning. Chief of General Staff and Deputy Chief of General Staff of Kuwait Armed Forces and Commander of Kuwait naval forces were also present during the meeting. “We discussed various issues involving bilateral cooperation including the possibility of signing an MoU to further expand defense cooperation. This proposed MoU could serve as an umbrella suiting the interests of both countries. India and Kuwait are also members of the Indian Ocean Naval Symposium (IONS),” the ambassador added. IONS is a voluntary initiative that seeks to increase maritime cooperation among navies of the littoral states of the Indian Ocean region. Currently, 35 countries are members of IONS.

Bridges of friendship
“We, in the Indian navy, build bridges of friendship over oceans. We visit friendly countries, make friends, learn from their experience and go back,” Ravneet Singh said, elaborating on the purpose of the visit of the three naval ships, which is by far the largest Indian naval contingent visiting Kuwait. “In IONS, we are all like-minded people who meet together, discuss problems and chart out our way. We learn from each other’s strengths, try to share our experiences and make up for our weaknesses. It is a combined effort, and as we understand, there are problems such as natural disasters and terrorism. If we work together, we can fight and defeat them,” he said.

During the stay, the crew of Indian naval ships will hold professional interactions with the Kuwaiti naval force pertaining to nuances of maritime operations, including means of combating maritime terrorism and piracy. In addition, the officers will call on senior Kuwaiti government and military authorities to bolster cooperation and strengthen mutual understanding between the two navies.

“We want to enhance our friendship with the navy of Kuwait, taking our relationship to the next level, learn some good things from the navy of Kuwait and share our experiences with them. When we sail out, we will hold joint exercises,” said Rear Admiral Singh.

Incidents of piracy
“Incidents of piracy have come down significantly in the last few months, thanks to the joint patrolling of the navies together,” he added. IONS has declared that the Indian Ocean region is free of piracy as it has been now contained only to the Gulf of Aden. Talking about the massive evacuation called ‘Operation Rahat’ from war-torn Yemen in last April, Captain Pradeep of INS Tarkash, said: “In one of the largest evacuation missions, three Indian ships rescued nearly 7,000 people from 31 countries.”

Commissioned in Nov 1997, INS Delhi was the first ship designed in India itself, with 6,700-ton guided missile destroyers. It is a multipurpose command and control platform capable of operating in a multi-threat environment. It carries two Sea King helicopters, capable of both anti-submarine as well as anti-surface operations.

INS Deepak was commissioned in Jan 2011 and it is a modern fleet tanker designed to be utilized as a fleet support ship. It has adequate facility for providing frontline support to fleet ships and has an advanced Integrated Platform Management System which seamlessly integrates auxiliaries and battle damage management of the ship using microprocessor-based digital control systems.

Commissioned in Nov 2012, INS Tarkash remains one of the latest platforms for the Indian navy and is a workhorse of the Western Fleet. Its weapon package includes surface-to-surface missiles, surface-to-air missiles, advanced torpedo launchers, anti-missile defense system and 100mm guns. It is thus capable of accomplishing a wide variety of naval missions, primarily finding and eliminating enemy submarines and large surface ships.

The last goodwill call by the Indian navy was in Sept 2015 when INS Deepak and INS Tabar visited Kuwait. Recently, on an invitation from the Indian side, an official from Kuwait’s ministry of defense joined the 72nd Course of Defense Services Staff College in Wellington, India. The Indian ships sailed off from India on May 3. After leaving Kuwait tomorrow, the vessels will call on ports at Bahrain and Muscat before returning to Mumbai on May 27.

For more information,
Kuwait's Space Administration called KISR has signed an MoU with India's space Administration ISRO for space corporation.

 

[Indx TechStyle]

India’s defence industry
Opportunity strikes
The country’s conglomerates are throwing themselves into arms-making
From the print edition

This one looks sub standard

VISITORS to the Talegaon plant of Larsen & Toubro (L&T), an Indian engineering company, might confuse it for the props department of a film studio. Half-a-dozen hangars spread over 50 acres near Pune, a city in western India, are filled with enough weaponry to thrill a Bond villain: camouflaged track-mounted howitzers, anti-submarine rocket launchers and, particularly appealing should Blofeld share Indians’ fondness for trains, a contraption to turn a humble carriage into a ballistic-missile-launcher.

The missile itself is a dummy, but the rest of the kit speaks of India’s ambitions to breed world-class makers of defence equipment. Although India now has the world’s fourth-biggest military budget, it has been the single biggest arms importer for seven of the past ten years, says SIPRI, a research institute (see chart). The government, tired of this unwanted accolade—and convinced indigenous weapons production can provide jobs, budget savings and technological know-how—puts defence at the heart of its drive to boost domestic manufacturing.

Local conglomerates are salivating at an opportunity they expect could be worth $150 billion-200 billion in the coming decade. Tata, Mahindra and Godrej—as well as L&T—are among those that have piled into weapons manufacturing in recent years. But to succeed they will have to take on foreign importers (which snap up about two-thirds of all procurement by value), a crowd of state-owned companies and the country’s bloated defence bureaucracy.

Impatience with familiar suppliers opened the first breach for private contractors over a decade ago. An unconvincing victory in a skirmish with Pakistan, in Kashmir in 1999, exposed the Indian army’s lack of capability. Insiders blamed a plethora of corruption scandals, involving foreign firms as well as flabby state-owned arms-makers, for leaving forces ill-equipped. But private-sector enthusiasm faded when promises of contracts did not materialise.

The latest sally slightly preceded the arrival of Narendra Modi in power in May 2014, and has been reinforced by his team’s energetic drumming of a “Make in India” theme. Mr Modi has spoken of having 70% indigenous weapons procurement by 2020, roughly double today’s figure (the defence ministry is a bit less ambitious), with more of it produced by the private sector. To achieve this, procurement rules overtly favour stuff made locally. Some of the red tape entangling all things industrial has been done away with: for example, foreign groups may now own as much as 49% in Indian ventures, up from 26%.

Bosses at private Indian firms are delighted by the new rhetoric: Tata, India’s largest conglomerate, identifies defence as one of four core growth areas. Groups with a background in cars (Mahindra) or precision engineering (L&T) have recast themselves as arms-makers, often with the help of Western partners such as Airbus, Boeing or Lockheed Martin.

The pipeline for new defence systems looks appealing. The military budget, some $50 billion a year, is expected to track long-term economic-growth rates of around 7% a year. Press reports suggest the armed forces are short of some 300 fighter jets, at least a dozen submarines, over 1,000 combat helicopters, seven frigates and perhaps 3,000 artillery guns. What gear it has is often of cold-war vintage and from Russia, India’s traditional supplier. Even ammunition is in short supply.

Yet in practice the armed forces are lousy customers. Defence bureaucrats are risk-averse. Military spending is growing, but much new money goes towards salaries and pensions. The share of funds for procurement, research, development and testing has slumped from 34% in 2005 to 25% today, says IHS Jane’s, a research outfit.

Worse, a fifth of the capital budget typically goes unspent because, in the run up to year-end, the finance ministry usually begs generals to shelve projects so that overall public-spending targets can be met. That leaves just $11 billion-12 billion for procurement, says IHS. And much of this is committed to existing projects, often in the hands of state-run companies good at lobbying for their share.

So those in charge of India’s putative defence groups are waiting to see if the opportunity is really as big as it appears. Official rhetoric was enough for investment plans to be drawn up, but not quite enough for big amounts to be spent. “We like the policy; we await the execution,” says one firm’s defence-division boss. A bureaucrat who misinterprets a single word in a regulation could stymie a billion-dollar project, he adds.

Foreign firms will also seek a chance to profit. Nearly 500 attended a recent defence jamboree in Goa. Some are still hoping to do deals to deliver equipment outright. Dassault has been in talks to sell its Rafale fighter jets for over 15 years (“We are getting closer...we are in the final phase,” its chairman said last month, redefining optimism). But if it comes off, this deal would probably be one of many contracts to have the first batch of a weapons system made overseas before shifting manufacturing—and some technology—to India for later orders, assuming the local partner could cope with production demands.

The past year has seen the weaving of a tangled web connecting big Western defence groups and Indian manufacturing counterparts. A recent deal for BAE Systems to supply howitzers uses Mahindra as the local assembler. A track-mounted artillery gun at L&T’s facility (part of which is a joint venture with Airbus Defence) was designed by Samsung. Boeing and Tata have a partnership to produce Apache helicopter fuselages, among other things.

Sceptics wonder whether local groups do much more than give existing foreign weapons systems an Indian veneer just thick enough to get contracts. Systems developed abroad (often some time ago) can be assembled in an Indian plant, with both sides claiming the gear has been extensively adapted for the Indian market.

Assembly work is not the lucrative bit of the weapons industry—just as the iPhone brings more profits to Apple (its designer) than to Foxconn (its contract manufacturer). For now, India mostly makes the cheaper bits, especially parts that can benefit from lower labour costs. Pricier systems, which require long development lead-times, are hampered by higher capital costs for Indian firms compared with Western rivals.

All that could change if Indian companies develop expertise to design, not just assemble, equipment. Last month the government said it would give priority to weapons designed and made in India. It should also let firms export their wares—which, in the long term, is the only way investments in arms-making pay, says Deba Mohanty of Indicia, a consultancy. Countries that spend heavily on armed forces typically have successful arms-making companies. India’s ambition, one day, is to stop being an exception to this rule.

 

[Indx TechStyle]

Parrikar in Pune: ‘Self reliance in defence will lead to war preparedness, curb graft’
In Pune, the defence minister also gives final push to Lohegaon airport expansion
BY: EXPRESS NEWS SERVICE | PUNE |PUBLISHED ON:MAY 16, 2016 2:26 AM

SELF reliance in the defence sector will not only lead to better war preparedness and give boost to economy but will also curb the corrupt practices in Defence imports, said Defence Minister Manohar Parrikar in Pune on Sunday.

He was speaking at the 142nd chapter of the Vasant Vyakhyanmala or Spring Lecture Series. Presenting the topic ‘Defence Production: Self Reliance and Road Ahead’, the minister addressed a fully-packed audience at the Tilak Smarak Mandir Auditorium. Parrikar’s speech was full of stories, anecdotes and he did not shy away from passing satirical remarks on Puneites in his typical style.

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Parrikar stressed that as the nation tries to achieve self reliance in defence, Indians must learn to imbibe the philosophy of self reliance. He said self reliance in defence will lead to better war preparedness, as the nation will not have to depend on foreign powers for supplies in times of conflict. He added that it will also give huge booth to economy and create large number of jobs. “I have always felt that defence imports not only increase our dependence on other countries but also create an environment where corrupt practices can flourish. A lot of transactions remain out of purview of the Indian investigative agencies. Self reliance in defence will bring these practices down.” he said.

Commenting on the reports from Pentagon, that China has been raising troop strength on the border with India, Parrikar said the Armed Forces were fully prepared. Answering a question on a hypothetical situation of India having to face both adversaries at the same time, the minister said that India was prepared for that situation too but more can always be done in terms of preparedness specially infrastructure.

Asked about women being given permanent commission in the forces, Parrikar said though the issue is clear conceptually, a lot of work needs to be done on the infrastructure required for such training. He said three women were being trained to be inducted as fighter pilots into the Indian Air Force and the country would see its first set of women fighter pilots on June 18.

Meanwhile, Parrikar said he has held a series of meetings with officials of the Airports Authority of India (AAI), Indian Air Force, Pune District Administration and State Government representatives to speed up the much-needed expansion of Lohegaon Airport. The expansion, he said, is likely to result in a 40 to 45 per cent capacity expansion of the airport.
“This work on the 15.84 acre plot will be the Phase-I of the airport expansion. We are also considering another 30 acre plot which will constitute the Phase-II work. By the end of the Phase-II, the new airport for Pune city should be ready because beyond a certain limit, the Lohegaon cannot expand,” he added.

 

[Indx TechStyle]

India to invest US$ 100 billion in 5 years to replace half of its defence equipment

 

[Indx TechStyle]

Thales' boost for Make in India with thermal imagers for tanks

Boosting the Make in India initiative, French aerospace and defence major Thales has signed a new contract to provide thermal imaging cameras for the Indian Army's T-90 main battle tank (MBT), it was announced here on Thursday.

As part of the contract, Thales will be effecting a transfer of production to integrate 260 compact thermal imaging (TI) Catherine cameras into the TI Sights that will be installed on the T-90s, a company statement said.

"The Catherine thermal imager is already in service with the Indian Army and this new order consolidates Thales leadership in optronic technologies in India," the statement said, adding that the transfer of production element "contributes" to the government's Make in India policy.

"The Catherine family is the most complete range of cameras available on the world market for target acquisition and weapon engagements by land vehicles. Thermal imagers allow gunners, commanders and land recce observers to see by night and by day in adverse conditions. More than 7,000 Catherine cameras are in service on board 30 types of fighting vehicles globally," the statement said.

 

[Indx TechStyle]

India to produce ammo for UAE
Both nations to conduct first-ever joint military exercise on May 24
Posted at: May 19, 2016, 1:53 AM
Last updated: May 19, 2016, 1:53 AM (IST)

Parrikar to visit the Emirates

• Defence Minister Manohar Parrikar will visit the country to convey 'shared interests' and look at a deal to produce ammunition for the UAE forces
• He will be the first Indian Defence Minister to visit the country; the visit is the follow-up to PM Narendra Modi's visit to the UAE in August last year.

Tribune News Service
New Delhi, May 18

In a development that could add to India’s clout in countries in the Persian Gulf, India and the United Arab Emirates (UAE) will conduct their first-ever joint military exercise on May 24, while Defence Minister Manohar Parrikar will visit the country to convey ‘shared interests’ and look at a deal to produce ammunition for the UAE forces.

Sources in the Defence Ministry said the UAE was looking to source its ammunition needs from India. The UAE will fund the manufacturing facility and India will produce the same.

On the military exercise, sources said it would be between the air forces of the two countries. The UAE uses French-origin Mirage 2000 fighter jets and the F-16 fighter jets procured from the US.

Besides this, the Indian side will pitch in its abilities to service the Hawk trainer aircraft used by the UAE. The plane produced by BAE is also produced at the Hindustan Aeronautics Limited (HAL) and the IAF uses it.

Parrikar’s visit is the first by an Indian Defence Minister to the UAE. It comes at a time when their traditional partner US is slowly weaning away to move its forces to Asia Pacific. Also, countries in West Asia are keen to ally with India and others like Russia and China.

 

[Indx TechStyle]

‘We are looking to cut defence imports by 35-40%’

MANOHAR PARRIKAR Defence Minister | Shanker Chakravarty
No sooner had he taken charge as Defence Minister in November 2014, Manohar Parrikar was faced with the issue of One Rank One Pension (OROP). Having dealt with that issue, Parrikar had little breathing time as the government came out with the policy for opening defence sector for foreign investment.
Tackling corruption in defence procurement was another major challenge for Parrikar. While he did come out with a revised Defence Procurement Procedure, he is yet to clarify on strategic partnership issue.

BusiessLine spoke to Parrikar on how he proposes to meet his target of reducing imports dependence in defence by 35-40 per cent and promote indigenous manufacturing. Excerpts:


How will you ensure defence scams do not take place under you?

A scam can be stopped by a transparent procedure and clean intentions.

How will the new Defence Procurement Procedure (DPP) be different from the previous ones?

In defence we have been too dependant on imports. ‘Buy Global’ has been a mantra. The current DPP is a game changer in the sense that it makes IDDM (Indigenous Design, Development and Manufacturing) as the first choice. There is a clear line of decision-making. If there is a product which is designed indigenously, that will be given first preference.

This will be followed by a Buy Indian policy where 40 per cent has to be indigenous. Then the next option is to buy and make in India, where some quantities can be bought from abroad but the balance has to be made in India.

To stop corruption you need to have transparent procedures and our revised DPP ensures that. You do not need more stringent procedures.

On the AgustaWestland scam, it seems all procurement that links with Finmeccanica is getting stalled, adversely impacting the modernisation plans?

Finmeccanica proposals have been put on hold. The blacklisting process is on now. We are not buying anything from them. But if there is already a product with some component of Finmeccanica in it or a product of theirs already in the forces, then we deal with them for spare parts, technical support, overhauling, repair and maintenance for the operation of the products. That’s the inventory I am carrying.

So Finmeccanica has not been blacklisted yet?

The process has now started because the Italian court has clearly declared that there is a crime and a bribe has been given. So there is enough documentary evidence with us and we have sent the file for legal vetting. Because, any action we take has legal repercussions. The company can go to court and ask for damages on certain issues. So I have to double check and I am not an expert on law. The government cannot be arbitrary and has to ensure natural justice.

So will it end up being another Bofors?

How can I predict what the investigation agencies will find? It is up to the agencies to track the money. But sometimes it is very difficult to track the money flow because many countries do not give information and the Indian courts don’t punish a person just on suspicion. I can prove intentions existed, I can prove that you intended to overpay. If money has gone into a country where no document is available it is not so easy to track that. The government will take all efforts to track the guilty.

How much of a reduction in imports are you planning under the new DPP?

Acquisitions made earlier cannot be changed today. I cannot even change acquisitions that are in the pipeline now. The value of this is ₹5 lakh crore, which will slowly taper off. So every year my target is to increase indigenous content by 5-10 per cent. Our final target will be 35-40 per cent, which can be done quickly. After that it will slow down.

How do you plan to achieve the export target of $2 billion by 2018 from the current $340 million?

Unless you fix an ambitious target you cannot reach it. We have allowed defence PSUs and Ordnance Factory Boards to export 10 per cent of their production capacity. If they manage to export it and the Army requires that capacity then we will increase the capacity which can be exported by 10 per cent next year. This will be only in products where they say the capacity less like missiles and Tejas. For others they are free to export any amount. Right now they export about 4-5 per cent of their production.

But how will you identify the buyers given the strategic issues involved?

There is no difficulty in identifying the friendly countries. But you have to be sure about its friendliness.

When will you finalise the chapter on strategic partners in the DPP?

This has three-four platforms only. Certain decisions can’t be made in in six months or one year. Even after the decision is made, additional time may be required to finalise the technology. Till then the old process continues. This is just a new addition.

On foreign direct investment, although 100 per cent is allowed in some cases, foreign OEMs say there is no clarity?

For 100 per cent FDI they have to apply. If there is clarity and every rule is given then 100 per cent becomes automatic. I do not want a foreign company to come and set up a unit here because I am also manufacturing that product here. But if a new product is coming up then I can think about it. I will consider it only if it benefits the country in technology terms.
Credit: Economic Times

 

[Indx TechStyle]

Strategic partnership model: Manohar Parrikar ropes in industry for recommendations on defence manufacturirng

SP model has faced resistance with various departments and services raising concerns that process recommended may lead to monopolization and needs more consultation.

NEW DELHI: To untangle the logjam over his strategic partnership (SP) model that is being showcased as the anchor of the Make In India initiative in the defence sector, Manohar Parrikaris roping in the industry with the setting up of five consultation groups that will make specific recommendations on manufacturing defence equipment.

The SP model — selecting key private industry players for specific large scale defence manufacturing projects — has been in the making for over a year but little progress has been made as it has encountered resistance both within the ministry as well as with other stakeholders.

The industry too has been up on the details of the SP model that a defence ministry appointed panel has recommended, specifically on clauses that restrict a particular company from participating in more than one sector - like warship building or aircraft manufacturing.

Now, in an effort to get the industry on board and to accelerate the SP model, the defence ministry has set up five new sub groups - all headed by different industry bodies - that will make specific recommendations for sector like armoured fighting vehicles, aircraft,submarines and ammunition.

In a sign that the SP model is being accelerated, the groups have been given just 10 days to come up with recommendations. "The chairman of each of the give sub groups will have to complete the discussions on the topic assigned to them and be ready with their presentation within ten days of the issuance of the convening order," a defence ministry directive dated May 20 states.

Each of the sub group will have industry representative from CII, FICCI, ASSOCHAM, PHDCCI and FISME. The chairman of the group - from an industry association - will then make a presentation to Parrikar on the discussions and recommendations.

As reported by et, SP model has faced resistance with various departments and services raising concerns that process recommended may lead to monopolization and needs more consultation. The Atre Committee report has identified five priority areas for Make in India in the defence sector.

While the concept of the SP model to identify and encourage private sector players for manufacturing in defence is agreed to, details like the suggestion that only one company be selected for a particular segment like warship production or submarine construction - has not found full favour within the ministry and with the industry.

READ MORE:
Submarines|New Delhi|Manohar Parrikar|India|ET|Defence

 

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MoD Finalises Structure of Five Sub-Groups For Strategic Partners For Defence Manufacturing

India’s defence minister Manohar Parrikar has cleared composition of the five sub-groups constituted for focused discussions on the strategic partnership model for selected platforms in the defence sector.

Selection of strategic partners for long term partnership between the ministry of defence and private sector Industry is seen as the most forward looking and bold initiative of the current leadership especially in the backdrop of the fact that India’s defence sector has continued to remain import dominated over the past many decades and since independence. DefenceAviationPost.com has exclusive details on the composition of these sub-groups.

The first sub-group for Armoured Fighting Vehicles will be chaired by Col (Retd) H S Shankar, Chairman, FICCI Defence sub-committee on Indian Defence SME and will representatives from the Defence Research and Development Organisation (DRDO) and two star rank officers from the Armoured Division of the Army Headquarters. This sub-group I, that will focus its discussions on platforms including Armoured Fighting Vehicles and their major systems, will also have Lt Gen A V Subramanian (Retd) as a representative of the Dr V K Aatre Task Force. Ravin Kulshreshta, Director (P&C), Department of Defence Production (DDP) will be the facilitator of this sub-group.

Sukaran Singh, Co-Chairman of CII National Committee on Defence will chair the second sub-group, constituted for discussions on platforms including Aircrafts and Helicopters (fighter, transport and their major systems). This group will also have participation from DRDO and two star rank officers from Air Head Quarters. Former Chairman Hindustan Aeronautics Ltd (HAL), N R Mohanty will represent the Dr V K Atre Task Force in this Sub-group-II that will be facilitated by R R Thakur, Officer on Special Duty, Defence Offset Management Wing (DOMW), DDP.

Sub-group-III that will focus on platforms including Submarines and their major systems will be chaired by Jayant Damodar Patil, Chairman FICCI Defence Committee and will comprise of representatives from DRDO and two star rank officers from the Naval Head Quarters. Rear Admiral Pritam Lal (Retd),who was member of the Dhirendra Singh committee of experts will also be a member of this Sub-group-III on submarines.

Ammunition including smart ammunition will be the focus area for Sub-group-IV that will be chaired by Neeraj Gupta, MD, MKU Pvt Ltd and nominee of industry association, ASSOCHAM. As in other sub-groups, this sub-group will have DRDO representatives and two star rank officers from the Army HQs. This sub-group will be facilitated by Wing Commander Vani Mishra, PO (Systems).

Sub-group V will look into macro process management of issues related to eco-system, technical competence, financial evaluation, weightage to existing infrastructure, commitment of partner for life cycle support and other regulatory matters. This sub-group will be chaired by Rajinder Bhatia, Co-chairman, CII national Defence Sub-committee on Land Systems and will also comprise pf DRDO representatives. This sub-group will have two star rank officers from the service Headquarters (Army, Navy or Airforce). Kaushik Dutta, Director, Thought Arbitrage Research Institute and Dr Ashish Bhattacharya, Prof and Head, School of corporate governance and public policy, Indian Institute of Corporate Affairs (Ministry of Corporate Affairs) will be the two representatives of the Dr V K Atre Task Force in this sub-group that will be facilitated by Praveen Kumar, Director (Acquisitions).

Also Read– Our Special Story on MoD’s Proposed Model For Selection of Strategic Partners For High-end and Critical Defence Projects

Sources said that the Chairman of each of the five Sub-Groups have been asked to expeditiously complete the discussions on their relevant topics and be ready with their respective presentations within 10 days (latest by June 3rd, 2016).After 10 days, in the first week of June, 5 sub-groups will make recommendations to Defence MinisterCLICK TO TWEET

It may be recalled that Defence Minister Parrikar had held a consultative meeting with the industry associations on April 25 on the issue of strategic partners for defence sector from private sector. This meeting was held to get views of the industry on selection criteria before formulating the policy on selection of strategic partners for defence manufacturing.

“After 10 days, in the first week of June, the five sub-groups will make recommendations to the Defence Minister Manohar Parrikar in another consultative committee meeting,” sources said.

The task force under under former DRDO chief Dr V.K. Aatre, appointed for the specific purpose, has come out with detailed framework and criteria for selection of Strategic partnership among Private sector.

The industry consultation meetings being spearheaded by Parrikar is aimed at creating a trust based model for few select, technologically complex and large long duration programs without compromising on the transparency and probity needed in the entire Defence acquisition process.

 

[Indx TechStyle]

Defence manufacturing could be India’s biggest job spinner: Modi to WSJ

New Delhi desperately needs to modernise its aging Russian-era equipment as China and Pakistan upgrade their arsenal with latest technology and purchases.(AP)

Prime Minister Narendra Modi has identified defence manufacturing as India’s biggest job spinner, saying the government was committed to making arms and equipment at home.

Talking to the Wall Street Journal on Wednesday, the eve of the second anniversary of his government, Modi said India certainly wanted to go ahead with manufacturing “because we have a lot of defence imports”.

India is the world’s largest importer of arms, accounting for 14% of global purchases. New Delhi desperately needs to modernise its aging Russian-era equipment as China and Pakistan upgrade their arsenal with latest technology and purchases.

“If I look at it from an economic point of view and to provide jobs to my country’s young peope, the defence-manufacturing sector can provide maximum number of jobs to my country’s youth,” he told WSJ. He was working hard for it and had been talking to other countries as well.

“Today, unlike before, India is not standing in a corner,” he added.

The government has relaxed foreign investment norms for the defence sector that also figures big in its ambitious Make In India plan.

Talking about India’s relationship with the US, Modi said it was a matter of great pride that the US congress had invited him to address a joint session.

Modi will be in the US on June 7 and 8 for his fourth visit to the country in two years.

President Barack Obama and he “have developed a kind of friendship where we speak freely to each other”.

India sought closer ties will all its neighbours but won’t compromise on terrorism, Modi said when asked about improving ties with Pakistan.

When he was voted to power, he had invited Saarc leaders to his swearing-in, making clear his intentions to build stronger ties with all the neighbours. “The development I desire for India, I want the same for our neighbours and that is why I visited Lahore as well”.

Modi’s surprise Christmas stopover in Lahore was overshadowed a week later by an audacious militant strike on the Pathankot airbase. India blames Pakistan-based Jaish-e-Mohammed for the assault that left seven securitymen dead and derailed the dialogue process.

“Yes, terrorism in a concern for the whole world. We can’t compromise on terrorism, nor should we,” Modi said

On being asked about China and US ties that have come under strain over the South China Sea dispute, Modi said there were substantial differences but there were areas where the two sides worked closely. “This is the new way. If we want to ensure the success of this interdependent world, I think countries need to cooperate, but at the same time we also need to ensure that there is respect for international norms and international rules.”

 

[Indx TechStyle]

Top executives from Tata, L&T, Bharat Forge to lead defence strategy panels

Given the large interest of the private sector in what is being seen as a sunrise sector, industry bodies are finding it hard to accommodate all requests.

NEW DELHI: Top executives from Tata, Larsen & Toubro and Bharat Forge are among those who will lead the panels being convened by the defence ministry for suggestions on its strategic partnership model - a move to allow private investments in mega defence manufacturing projects.

Days after the defence ministry sent a convening order to industry bodies likeFicci , CII and Assocham , they have appointed top executives to head the five subgroups for which recommendations have been sought.

Two major defence sector companies —Mahindra and Reliance Defence —are not heading any of the panels while MKU, a company that specialises in ballistic protection devices, and AlphaDesign, which recently tied up withAdani Group for a defence project, have been selected.

Several officials that ET spoke with said there is a scramble among the private sector to ensure that their executives are chosen to be a part of the subgroups, each of which is likely to have 15 industry representatives.

However, given the large interest of the private sector in what is being seen as a sunrise sector, industry bodies are finding it hard to accommodate all requests.

The panel on aircraft and helicopters manufacturing is being led by Sukaran Singh, CEO of Tata Advanced Systems Ltd (TASL) that is presently working on a project to replace the Avro transport fleet of the Indian Air Force. Industry house CII is in charge of this panel.

Industry veteran JD Patil, who heads defence for L&T, will lead the panel on submarine construction that is being handled by Ficci. Rajinder Bhatia, CEO for defence and aerospace at Bharat Forge, is leading the CII panel for macro issues like selection of partners and criteria for evaluation.

In what has come as a surprise to several industry executives who spoke with ET, the panel on smart ammunition production will be led by Neeraj Gupta who heads MKU. Similarly, Col (retd) HS Shankar, chairman at Alpha Design, has been chosen for the panel on armoured fighting vehicles.

Companies like Mahindra and Reliance are expected to have some representation in the subpanels.

While the defence ministry has given the industry bodies just 10 days to come up with recommendations, it is expected that a deadline relaxation will be requested due to logistic issues in convening a pan-industry panel. Defence service officers too will be appoint members to each of the panels - two star officers from the three services as well as representatives from research body DRDO.

READ MORE:
New Delhi|Mahindra|FICCI|Assocham|Alpha|Adani Group

 

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Lockheed eyes Tata as F-16 partner for next big India jet deal
Lockheed, Boeing and Saab AB are all manoeuvring for the next big fighter jet contract in India.

A file photo of an F-16 fighter jet built by Lockheed. India still needs hundreds of warplanes after Prime Minister Narendra Modi scaled back an order for Rafale jets. Photo: Bloomberg

New Delhi: Lockheed Martin Corp. is leaning toward the Tata Group as a potential partner to build its flagship F-16 as India looks to modernize an aging fleet of fighter jets.

“Naturally we would gravitate to Tata,” George Standridge, Lockheed’s vice president for Aeronautics Strategy and Business Development, said in an interview in New Delhi on Wednesday when asked about production of F-16s. “We know them well and we have worked with them well.”

Lockheed, Boeing Co. and Saab AB are all manoeuvring for the next big fighter jet contract in India, which may be announced sometime in the next year. India still needs hundreds of warplanes after Prime Minister Narendra Modi scaled back an order for Rafale jets due to disagreements over price.

About a third of India’s 650 fighter jets are more than 40 years old, putting the nation’s defences at risk as neighbouring China bolsters its military capabilities. Replacing them with planes made locally would improve security and help achieve Modi’s goal of transforming India from the world’s biggest weapons importer into a global hub for defence manufacturing.

Lockheed and Tata Advanced Systems Ltd have had a joint venture since 2012 to build tail sections and wing-box components for the C-130 cargo plane’s global supply chain. Tata Advanced Systems had no comment on a possible tie-up with Lockheed to build F-16s, according to a spokesperson.

Rafale deal

Since January, Indian government officials have listened to pitches from foreign manufacturers to build combat planes in India. No announcement has been made on either the time frame or the quantity under consideration.

Any agreement is likely to be between governments, however, after a tender process for 126 warplanes that began in 2007—the world’s biggest fighter jet deal at the time—has yet to be concluded.

India picked Paris-based Dassault Aviation SA in 2012 to build the planes at an estimated cost of about $11 billion. Yet talks stalled over price and quality guarantees, and Modi decided last year to instead buy only 36 of the fighter jets directly from the French government. The deal is still being finalized.

Lockheed has been in talks with the US government over producing in India for more than a year, Standridge said.

‘Ready to go’

“We are ready to go with the Indian government when it is ready to go,” he said. “We are engaging with the Indian government on a recurring basis to ensure we are responsive.”

The US and India have strengthened defence ties since Modi came to power. Last month US Defence Secretary Ash Carter reiterated plans to help India develop jet-engine technology.

It would be feasible for Lockheed to set up an F-16 assembly line if about 100 jets are to be produced for the Indian Air Force and for possible exports, Abhay Paranjape, a director for business development of the company, said in March.

Saab has proposed setting up a production facility in India for its Gripen aircraft as well as a development center for the plane, Ulf Nilsson, the company’s head of aeronautics, said in a March interview.

Boeing has also offered to manufacture its F/A-18 fighter jets—the mainstay of the US navy—in India. Bloomberg