Indian defence industry exports watch

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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






Rafale deal




‘Ready to go’
So they are desperate to earn some money. We should make use of this and get the best deal possible in terms of price, manufacturing, and no half deals/components/spares.
 

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So they are desperate to earn some money. We should make use of this and get the best deal possible in terms of price, manufacturing, and no half deals/components/spares.
With warships on order from Vietnam and Philippines, it may surge a lot in days to come.
IAF has target of inducting only 400 fighters by 2030. :frusty:
 

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Grass root-level changes made by Manohar Parrikar will benefit Indian industry: Jayant D Patil, L&T

Last two years, we have seen a huge amount of traction and we believe most of the issues and problems have been addressed by the government, says Patil.
Jayant D Patil, SVP & Head of Defence & Aerospace, L&T, in an interaction with ET Now, shares his views on the changes made by Modi government indefence sector . Excerpts:
ET Now:
It has been two years of the Modi government, how would you rate the efforts and on ground changes in the defence space, what really distinguishes the Modi Sarkar from the previous regimes?
Jayant D Patil:
During the last two years, we have seen since Mr Parrikar took over, I would say, rather than two years it is last one-and-a-half year one can really look at the glass is truly more than half full. What he has really done is absolute grass root level changes which are going to be genuinely beneficial to the Indian industry in the long run.
ET Now:
Now as part of lead panel along with top executives with other Indian majors, what will be the strategic recommendations as well as implementation road map?
Jayant D Patil:

Last two years, we have seen a huge amount of traction and the government is truly willing to listen to the industries issues and problems and most of it, as we believe, has already been addressed by the government in the new DPP .
We are still waiting because ultimately devil is in details. We actually need to see every of those recommendations converted that would be in the form of those annexures. As overall policy, it looks extremely positive what was made effective from 1st of April that is the defence procurement policy.
Now what we are really looking for is the annexures where some of the fine print may actually not have captured what exactly the industry wanted. Now going forward, with this policy being in place, we are really looking at acceleration of those programmes, also looking at how higher and higher indigenous content would actually be beneficial to the government and what the government actually does to facilitate that.
Now a great step towards that which is in a way included in the DPP is the strategic partners which now is almost getting through last lap in terms of the final recommendations which all of us have been just given about 10 days. Based on that, the last lap of this strategic partner process would be in place.
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Manohar Parrikar releases booklet on defence production works in 2 years
It's a compilation of the achievements of the department in the field of indigenous production of weapons, platforms and policy initiative.

Defence Minister Manohar Parrikar. (Photo: PTI)
New Delhi: Marking two years of NDA government, Defence Minister Manohar Parrikar on Friday released a booklet highlighting the efforts made by the Department of Defence Production in these years in pursuance of self- reliance in the sector.
It is a compilation of the achievements of the department in the field of indigenous production of weapon systems, platforms and policy initiatives undertaken in the period.
The focus of the government has been to improve the business environment by easing processes to do so, encourage participation of Indian public and private sector in defence production and promote innovation and indigenous development of equipment and weapon platforms.
The booklet mentions a number of policy initiatives like relaxation in FDI Policy, providing Exchange Rate Variation protection to Indian industry, level-playing field to private sector in terms of excise duty/custom duty on par with public sector, liberalising licensing policy and extending the validity of Industrial Licensing to 15 years, streamlining defence offset guidelines and restoring services as an avenue for discharge of offsets, a statement by the Ministry said.
It also talks about ordnance factories and Defence Public Sector Undertakings (DPSUs) working under the administrative control of Department of Defence Production having not only enhancing their production from Rs 43,746 crore to Rs 51,351 crore but also delivering many state-of-the-art platforms to the armed forces.
During the last two years, exports have almost doubled and 119 industrial licences have been issued. Other highlights say that all naval ships and submarines on order are being constructed in Indian shipyards and expenditure on capital procurement from foreign vendors in the last two years has come down from Rs 35,082 crore to Rs 22,422 crore.
Tags: Defence Minister Manohar Parrikar, ministry of defence,Department of Defence Production
Location: India, Delhi
 

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Government defining 'state-of-the-art' technology to draw defence FDI

The guidelines are crucial, given that the Foreign Investment Promotion Board is considering an application from French submarine maker DCNS.
_______________________________________

India is drawing up guidelines to define "state-of-the-art"technology and facilitate the flow of foreign direct investment in the defencesector. The guidelines are crucial, given that the Foreign Investment Promotion Board is considering an application from French submarine maker DCNS.
The government earlier this week rejected Apple Inc's plea seeking exemption from a 30% local sourcing norm for companies bringing cutting-edge technology and setting up stores in India. The iPhone maker's proposal was rejected in the absence of clear guidelines or a definition for "cutting-edge" technology, even though the FDIpolicy mentions the phrase.
"The defence ministry is working on guidelines," a senior government official said. A clear framework is required to facilitate the vetting of proposals that involve FDI above 49% and to make the process transparent without any room for discretion, the official said. Separately, the defence ministry is contemplating setting up a panel comprising technology experts from the Defence Research &Development Organisation.
The panel would vet FDI proposals and examine what they bring to the table in terms of technology. The panel may also include members from the public sector unit concerned, the three services as well as external advisors.
Defence ministry officials said a procedure is being worked out to identify high-end technology that would be eligible for FDI exceeding 49%. The ministry has prepared a list of systems that are most critical and would get preference for technology transfer. These includes nano technology, high-power lasers, stealth technology and precision-guided munitions.
It is likely that the proposal from DCNS - the first for 100% FDI in the country's defence sector since the new policy was formulated - will be taken up only after the guidelines are ready, another government official said. DCNS is the manufacturer of Scorpene submarine systems.
DCNS proposes to set up a company in India that will take up design and industrialisation studies, research & development activities and manufacturing and maintenance in relation to air independent propulsion systems for submarines. The FIPB deferred the company's proposal at a meeting in April after the ministries of defence and home affairs sought more time to examine it.
India allows 49% FDI in defence sector under automatic route. Up to 100% FDI is allowed in projects involving state-of-the-art technology and these proposals are approved by the Cabinet Committee on Security on case-to-case basis. India's defence capital acquisition budget up to 2024 exceeds $160 billion, or about Rs 10.5 lakh crore, according to industry estimates. The country meets over 60% of its defence equipment requirement through imports.
The Narendra Modi-led government has identified defence production as one of the focus areas to boost the country's manufacturing sector. The government is working on a revised procurement policy, which, along with offset clauses, is expected to draw foreign capital into the sector.
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Parrikar wants defence shipyards to focus on exports
Mumbai, May 28 () Expansion in the government-run shipyards' capacities would ensure that the Navy's needs are met over the next five years, and therefore they should now start focusing on exports, Defence Minister Manohar Parrikar said today. "Now that the capacity is built up, the needs of the Navy will be coming under control in next four to five years. They should start looking at exports now," Parrikar told reporters after inaugurating a Rs 150-crore submarine building facility at Mazgaon Docks & Shipbuilders (MDL) here. Stating that there is sufficient capacity at the shipyards, Parrikar said the state-run shipyards including MDL, Cochin Shipyard and Garden Reach Shipyard in Kolkata should set up an export cell. Production revenues of the defence public sector undertakings have grown by 20 per cent to Rs 51,600 crore in FY2016 from Rs 43,000 crore in FY2014, he said. The shipyards have been exporting to markets like Sri Lanka, the Maldives and Mauritius of late, and should step up these efforts, he said. "We have not done much of exports. Last year, a few ships were exported. I would request the chairman of MDL that he immediately, alongwith other shipyards, set up a special cell to sell our indigenous ships and export," the minister said, adding the cell can be small initially and need not focus on complex projects like submarines to start with. When asked if the country's diplomatic ties and engagements will drive the exports, he said, "Whatever support is required for the industry for export will be extended by the Defence Ministry, including our personnel placed abroad who can liaison for them." The pitch for exports assumes significance as it comes amid an increased interest by the private sector in the defence arena. Parrikar also expressed displeasure over the level of indigenisation in the Rs 25,000-crore Scorpene project, saying at the end of the first batch of six submarines, the ratio is only 30-35 per cent. Conceding that the desired level of indigenisation is not explicitly stated in the contract with the French company DCNS for building the Scorpenes, signed in 2007, the minister asked MDL to increase the level of indigenisation to at least 45 per cent in the future projects. He said the first of the Scorpene submarines being built at the MDL is undergoing sea trials at present and will be inducted in the Navy in the fourth quarter of 2016. AA BEN KRK SRY
 

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Thrust on indigenous production of guns, tanks: Defence Minister

Recalling achievements Defence Minister Manohar Parrikar with Tamil Nadu BJP president Tamilisai Soundararajan at a book launch in Chennai - Photo: M PRABHU
The Defence Ministry, over the past two years, has given a major thrust to indigenous production of guns, tanks and aircraft, according to Defence Minister Manohar Parrikar.
Following the Bofors scam, no artillery gun was purchased by the Army, which has been operating with old guns for the past 33 years, he said. However, six guns called Dhanushya, which can fire up to 45 km and better than Bofors, have been brought out by the Ordnance Factory. By October or November, the factory should start mass manufacturing, he told newspersons here late last week. He highlighted the Ministry’s achievements under the Modi government.
Light combat aircraft Tejas did not take off for nearly 32 years as it was considered as a failure, he said, adding that his Ministry, however, sorted out various small issues and the Air Force accepted the aircraft. Parrikar further said that 93 T-90 tanks had been lying idle at the Ordnance Factory in Avadi, Chennai, for a ‘simple reason’ of radiator overheating. The faulty tanks were holding up the ‘blocks’ in the manufacturing unit, leading to an output halt. “Within six months of taking over as the Defence Minister, I found a permanent solution, and new production commenced,” he said.
 

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IDN TAKE: TATA And Its Rivals Fire Starting Gun On Arms Race

“This is one area where we would not like to be number one,” Prime Modi Narendra Modi, told an arms industry conference last year, with regard to India's dubious record of being the world's No. 1 arms importer for the past decade, an unusual remark from a leader who has sought national advancement on various global rankings. For PM Modi, this is a missed opportunity to develop the domestic manufacturing sector and he has promised that future expenditure will show “a clear preference for equipment manufactured in India”.
Soon after Mr Modi took office, TATA, India’s biggest conglomerate, identified arms as one of its top-five growth targets for the next decade.
Other major groups to see potential opportunity are Mahindra & Mahindra, in armoured vehicles and helicopters; Larsen & Toubro, which is strong in submarine construction; and Bharat Forge, which in February outlined hopes of using Indian military contracts to become one of the world’s top-three artillery gun producers.
Big-ticket deals have been slow in coming but New Delhi says it is working to tackle the slowness, opacity and corruption associated with government purchases.
Under recent proposals, the government will nominate a few private companies that could lead major defence projects. That plan has prompted criticism that it will unfairly benefit major groups, pushing smaller companies into the margins.
This focus could also spell leaner times for state-owned companies such as Hindustan Aeronautics, previously the preferred domestic suppliers for Indian military procurement which were dismissed as “two or three decades behind” western groups in a leaked 2010 cable by the then U.S. Ambassador to India. Simon Mundy.
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India Allows Private Companies to Build Rockets

Manan Vatsyayana/AFP/Getty Images
India will allow private companies to produce 70mm rockets for its Light Combat Helicopters, one of which is pictured in 2013.

NEW DELHI — For the first time India has broken the monopoly of state enterprise Ordnance Factory Board (OFB) and will permit private defense companies to manufacture rockets for helicopters.
"Indian Air Force (IAF) wishes to buy 200,000 70mm rockets for its helicopters and the Ministry of Defense (MoD), under its new 'Make in India' policy, is now allowing private defense companies to meet the armament and weaponry requirements of the defense forces," said an MoD defense production official who requested anonymity.
"The rockets are proposed to be developed and manufactured by the Indian industry and the project would be based on proven or matured technologies where fundamental research is not required," he said.
Currently three Indian defense forces procure rockets from OFB and imports from overseas.

DEFENSE NEWS

India to Conduct LCH Weapons Trials

Last week, IAF floated a request for information (RFI) to private defense companies asking to submit their capabilities to manufacture 70mm rockets for all kinds of helicopters, said a senior IAF official in private.
"It is a priority program under the 'Make in India' policy and we want home-made 70mm rockets within the next three years," he said.
Several private defense companies — Bharat Forge, Punj Lloyd , Mahindra Defence System, Reliance Defence, Larsen & Toubro, and Tata Group — will participate in the program with overseas partnerships.
At present none of the private defense companies have the capability to build sophisticated rockets on their own and they will need to forge tie-up with overseas defense companies such as Raytheon of US, Rafael of Israel, BAE Systems of UK, Diehl Defense of Germany, Thales of France, Saab of Sweden and Rosobornexport of Russia, said a senior industry lobby executive who requested anonymity.
"IAF's RFI on 70mm rockets is misleading as it does not specify specific technical requirements," Bhim Singh, retired IAF wing commander said.
"We want modern rockets which are actually advanced precision kill weapon systems," he added.
 

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good we should export everything to ASIA ..including parts
 

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'Make in India' the right way, but some tweaks required in defence sector: Aravind Melligeri, CEO & Chairman of Aequs

Although, the government has enhanced the FDI cap from 26% to 49%, in the defence sector, a further increase (of 26%) is desired through private equity and venture capital, says Melligeri.
The government needs to address the problems of defence MSMEs like high cost of capital and lack of technology , says Aravind Melligeri , CEO & Chairman of Aequs . In an interview to Economictimes.com's Ruchi Bambha, Melligeri says a further increase of 26% in defence FDI is desired through private equity and venture capital for the sector to flourish to its full potential.
Edited excerpts:
What are Aequs' medium and long-term plans in defence?
Aequs entered into defence manufacturing business in 2013 and has been working with Hindustan Aeronautics Limited (HAL) on more than 250 machined structural parts for various platforms, including Light Combat Aircraft, Sukhoi 30MKI and ALH, among others.
We are now pursuing other opportunities to partner with the organization for the supply of large structural forgings from India's largest Hydraulic Press (10000 ton) dedicated for aerospace & defence applications.
In 2015, Aequs received approval from the foreign investment promotion board (FIPB) to increase overseas funding in its Indian unit up to 40 per cent of its equity, making it the first firm to make use of the higher foreign direct investment (FDI) limit notified for the defence sector.
We are young, but we look to forward to establishing ourselves as a prominent player in the defence sector very soon.
What is your take on the new Defence Procurement Policy (DPP)?
Recent changes in the defence procurement programmes are aimed at creating an 'all-new world' as far as manufacturing is concerned. It is evident that for the first time, the Ministry of Defence has recognised the importance of design, research and development. This move will ensure significant inflows of funds into R&D and provide the right opportunity for talent in India to contribute towards developing cutting edge technologies in the aerospace and defence (A&D) sector.
In the recently announced DPP 2016 , it is heard that the changes are in sync with the 'Make in India' initiative, where a separate category has been introduced for indigenously designed, developed and manufactured procurements, and has been accorded the highest priority. Ambiguity around the definition of Indian companies too has been cleared by providing clear definition.
Although, the government has enhanced the FDI cap from 26% to 49%, in the defence sector, a further increase (of 26%) is desired through private equity and venture capital for the sector to flourish to its full potential. However with the limit of offsets being pushed up to Rs 2000 crore from Rs 300 crore, uncertainty lingers around the industry's capability to absorb such large amounts of offset, and whether Original Equipment Manufacturers (OEMs) are prepared for it.
Nevertheless, we expect continued growth in commercial aerospace, but seek to retain a balance between our commercial and defence portfolios.
Has this government's push for 'Make in India' yielded any significant gains for the company?
Prime Minister Modi's 'Make in India' initiative provides a practical regulatory and communication framework for the Indian way of aerospace manufacturing. In 2015, Aequs made two strategic acquisitions in the us and France to bring complementary capabilities on to the plate. With its SQuAD Forging joint venture (Aubert & Duval/Setforge) and Aerospace Processing JV (Magellan Aerospace), the Aequs Aerospace Ecosystem is trying to deliver full value stream solutions across the globe.
As an indigenous player in defence, what are some of the policy bottlenecks which you think can hinder your way forward?
Except for some areas like the IT/ITeS, biotechnology, textiles sectors where our technological prowess is evident, we are yet to create globally competitive industry across many sectors. This is all the more true in the defence sector where we continue to import 70 per cent of our requirements. Establishing comprehensive ecosystem like, regulatory framework including favourable labour laws, identifying the ways to optimise the capital and selection of suppliers based on capabilities, will have a cascading impact on the growth of this industry.
In the areas of taxation, the companies are facing severe headwinds; MAT for SEZs for instance is still a concern. A&D sectors with such high working capital cannot sustain unless these taxes are waived off.
Today, most of the defence production happens through MSMEs. The big challenges that these MSME's face today are that of high cost of capital and lack of technology. So the policy changes should create an investment vehicle which can help MSMEs get access to funds and technology easily.
As the aerospace industry is emerging from its infancy, there is a critical need to formulate a national aerospace policy that should give a direction where we want to be in the next 20 years. With the increasing contribution from the private companies, this policy becomes even more necessary as it could harness the knowledge residing in fragmented setup. Such an institution could map indigenous capabilities, and address critical technology.
Aequs has bagged a contract of supplying over 1 lakh titanium machined parts for Airbus' A320neo, which is essentially an export contract. Highlight the importance of this partnership.
Since 2009, Aequs has been supplying parts directly to Airbus; however, this recent order is the first large order for titanium parts to be placed with an Indian supplier. The contract calls for Aequs to deliver over 100,000 titanium machined parts on an annual basis for the A320neo (new engine option) programme. These detailed machined parts will be delivered to Airbus' plant in Toulouse, France where they will be assembled into the pylon structure, which mount engines on the aircraft wing.
Where do you see yourself in 2020?
Globally commercial aerospace manufacturing is $100 billion opportunity per year; India exports only $250 million, which is negligible. This is expected to grow to about a billion dollar business by 2020. We will continue to expand our capabilities by bringing in new technologies to our global ecosystem and aim to achieve a valuation of $300 million by 2020.
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Lockheed Martin's innovations programme in India to focus on advance manufacturing, cyber security
The IIGP allows applicants to file in their innovative ideas across industries ranging from agriculture and textiles to defence and healthcare.
NEW DELHI: US-based defence majorLockheed Martin on Tuesday said that its flagship innovations programme inIndia will focus on areas such as advance manufacturing, cyber security and aerospace.
At present, the defence major, along with the Department of Science andTechnology (DST) and industry bodyFicci runs -- the India Innovation Growth Programme (IIGP).
The IIGP allows applicants to file in their innovative ideas across industries ranging from agriculture and textiles to defence and healthcare. The DST-Lockheed Martin IIGP is in its 10th year.
According to Keoki Jackson, Chief Technology Officer at Lockheed Martin Corporation:"This partnership has been extremely good with the DST and we hope to continue the programme for at least another decade."
"Moreover, given the success we have had so far, we would like to see if we can continue to grow the programme in focusing on particular areas like advance manufacturing, cyber security and aerospace. These are clearly the areas, where our interests align with interests of India."
The programme aims to enhance the growth and development of India's innovation and entrepreneurial pursuits by launching early stage Indian technologies into the global marketplace.
Currently, IIGP is aimed at promoting technologies that can facilitate in fulfilling several key initiatives by the Indian government like Swachh Bharat, Make in India and Digital India.
"For the first year we had just over a 100 applicants and this year we had over a 1,000 applicants for the programme. In our perspective it (programme) aligns very well with the current government's priorities like Skill India and Start-Up India," Jackson added.
The programme is also supported by Indo-US Science and Technology Forum, Stanford Graduate School of Business , Indo-US S&T Forum, IC2 Institute, University of Texas at Austin and The Indus Entrepreneurs.
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Centre widens scope for more indigenisation in Defence sector

from left) S.N. Eisenhower, Immediate Past Chairman, CII Tamil Nadu; Sanjay Garg, Joint Secretary- Defence Industrial Promotion, Ministry of Defence, Govt of India and Jayakar Krishnamurthy, Conference Chairman and CMD, Ucal Fuel Systems Ltd, at a conference on Defence Manufacturing Technologies, organised by the CII, in Chennai on Friday. BIJOY GHOSH
In a bid to encourage increased use and ownership of indigenous design and technology in the Defence sector, the Defence Procurement Procedure (DPP) notified in March has introduced a new category called Indigenous Design Development and Manufacturing (IDDM).
“It is one step ahead of pure manufacturing. We may have only 20 per cent indigenous content but if we have the design with us, we can always upgrade it, change it and customise it for our requirement and not be dependent on anybody,” said Sanjay Garg, Joint Secretary, Defence Industrial Promotion, Ministry of Defence.
Indigenisation
A window of opportunity lies in the indigenisation process in the Defence sector. At present, in Defence procurement, nearly 65 per cent is import content. However, ownership of design and technology is where the issue of self-reliance and indigenisation comes in, he said at a CII conference on Defence Manufacturing Technologies on the theme of Defence Indigenisation - Window of Opportunities.
Under IDDM, domestically designed equipment with 40 per cent indigenous components or foreign-designed equipment with 60 per cent local components will be considered.
Innovation driven
Defence is different from sectors like automotive or consumer durables. It is highly technology and innovation driven. An entrepreneur should be very patient as the demand is sporadic, and gestation period is high. It is more quality-sensitive than price-sensitive. Quality certification is important as ‘you are playing with the life of the soldier,’ he said.
Today, nobody needs an industrial licence from the Centre to manufacture parts or components. The MSME sector has been de-licensed, Garg said.
The FDI policy has made it simpler to have partnership with foreign players without any approval. The entry barriers for the private sector that existed till two years have been removed to a large extent, he said.
Single vendor
The revised DPP has made significant changes in terms of category of procurement. Even a single Indian vendor has been accepted. Earlier, the tender was retracted if there was a single vendor, he said.
Jayakar Krishnamurthy, Conference Chairman and CMD of UCAL Fuel Systems Ltd, said Indian companies don’t spend enough on R&D. They should look at non-traditional partners like Defence Research and Development Organisation for innovation. They can also look at non-traditional countries such as South Korea, Japan, Canada, Argentina and Switzerland for tie-ups, he said.
 

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L&T likely to build patrol vessels for Vietnam
Vietnam has embarked on a major modernisation of its armed forces.
Larsen & Toubro (L&T) could soon build Offshore Patrol Vessels (OPV) for Vietnam.
The bid document was handed over by Vietnamese border guards to L&T in the presence of Defence Minister Manohar Parrikar during an industry interaction in Hanoi on Monday. Mr. Parrikar is on a two-day visit to Vietnam from June 5 after attending the Shangri-La dialogue in Singapore.
He held a meeting with his Vietnamese counterpart, General Ngo Xuan Lich where both sides agreed on greater industry-to-industry interaction.
Mr. Parrikar later attended a business roundtable meeting comprising defence industry delegates from the two countries.
Enhanced co-operation
“The meeting focussed on enhancing defence industry networking, information sharing and exploration of possibilities for partnerships and collaborations between the two countries,” according to a Defence Ministry statement. The purchase will be funded through a $100 million Line of Credit (LoC) India had extended to Vietnam for military purchases.
Vietnam has embarked on a major modernisation of its armed forces and both countries operate a wide range of Russian equipment.
A Memorandum of Understanding for the LoC was signed during President Pranab Mukherjee’s visit to Hanoi in September 2014.
During his visit, Mr. Parrikar also called on the President of Vietnam, Tran Dai Quang and Prime Minister, Nguyen Xuan Phuc.
 

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GRSE close to sealing deal with Philippines on warship export


KOLKATA: Inching closer towards finalising a deal with the Philippines Navy , defence PSU Garden Reach Shipbuilders and Engineers (GRSE) has emerged as the lowest bidder for exporting two frigates to the Southeast Asian island country.

"We are the lowest price bidder for the order. Now the government is evaluating other aspects before placing the order. We are hopeful of a positive outcome but things are not final yet," Commodore Ratnakar Ghosh, Director (shipbuilding), GRSE, told PTI.

Few days ago, a team from the Philippines Navy visited the facilities of the Kolkata-based shipyard and expressed satisfaction at the infrastructure.

"If you look at the infrastructure nobody is better than us . We have been in negotiations with them for the last two years and now they are examining other bidders also," company chairman and managing director Rear Admiral (Retd) A K Verma said.

If GRSE bags the order, it will be India 's second export order for delivering a warship and a boost to Prime Minister Narendra Modi's 'Make in India' campaign.

The shipyard already has the distinction of exporting India's first warship, an offshore patrol vessel, to Mauritius in December 2014.

Buoyed by the success, GRSE had participated in the bidding process for building two frigates for the Philippines.

As per the specifications laid down by the Philippines government, they want two light frigates of 109 meter length which can run at a speed of 25 knots.

Officials said these are for general purpose use in protecting their maritime boundaries.

GRSE already has the required expertise for making frigates as the KOLKATA shipyard has bagged the order of making three advanced stealth frigates from the Indian Navy.

"In between we have the capacity to build these frigates for them," Verma said.

GRSE has also built INS Kamorta, first in its class of four anti-submarine warfare corvettes, which is the first warship ever built in the country with almost 90 per cent of indigenous content.

Ghosh said they are in touch with other nations like Vietnam and Bangladesh for building warships.

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Bangladesh has a large navy mostly equipped with Chinese maal. They are a natural customer ... Any sale will also reduce the adversial relationship with their navy. I think SLN is now mostly on Indian made ships.

GRSE close to sealing deal with Philippines on warship export


KOLKATA: Inching closer towards finalising a deal with the Philippines Navy , defence PSU Garden Reach Shipbuilders and Engineers (GRSE) has emerged as the lowest bidder for exporting two frigates to the Southeast Asian island country.

"We are the lowest price bidder for the order. Now the government is evaluating other aspects before placing the order. We are hopeful of a positive outcome but things are not final yet," Commodore Ratnakar Ghosh, Director (shipbuilding), GRSE, told PTI.

Few days ago, a team from the Philippines Navy visited the facilities of the Kolkata-based shipyard and expressed satisfaction at the infrastructure.

"If you look at the infrastructure nobody is better than us . We have been in negotiations with them for the last two years and now they are examining other bidders also," company chairman and managing director Rear Admiral (Retd) A K Verma said.

If GRSE bags the order, it will be India 's second export order for delivering a warship and a boost to Prime Minister Narendra Modi's 'Make in India' campaign.

The shipyard already has the distinction of exporting India's first warship, an offshore patrol vessel, to Mauritius in December 2014.

Buoyed by the success, GRSE had participated in the bidding process for building two frigates for the Philippines.

As per the specifications laid down by the Philippines government, they want two light frigates of 109 meter length which can run at a speed of 25 knots.

Officials said these are for general purpose use in protecting their maritime boundaries.

GRSE already has the required expertise for making frigates as the KOLKATA shipyard has bagged the order of making three advanced stealth frigates from the Indian Navy.

"In between we have the capacity to build these frigates for them," Verma said.

GRSE has also built INS Kamorta, first in its class of four anti-submarine warfare corvettes, which is the first warship ever built in the country with almost 90 per cent of indigenous content.

Ghosh said they are in touch with other nations like Vietnam and Bangladesh for building warships.

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Manohar Parrikar to meet industry representatives on strategic ties

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 next five years.
New Delhii: Defence Minister Manohar Parrikar will tomorrow meet with industry representatives to carry forward the discussion on strategic partnerships that the government plans to enter with private firms in critical sectors of defence manufacturing.
The meeting will be the first one with a sub-group that has been created to have a more focused discussion on it, sources said.
Former DRDO chief V K 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 next five years.
Parrikar has already held a round of talks with the industry chambers over the issue.
The feeling among several private industry players is that only the big firms will benefit out of this move.
However, many large firms are not open to the idea since they feel they would be restricted to just specific fields and, therefore, their overall investment and plans will get affected.
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