Indian defence industry exports watch

[Indx TechStyle]

Report: Indian defence industry to attract foreign OEMs

 

[Indx TechStyle]

Manohar Parrikar holds discussions with industry representatives

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.

NEW DELHI: Defence Minister Manohar Parrikar today held discussions with industry representatives who presented their concerns and recommendations on strategic partnerships that the government plans to enter with private firms in critical sectors of defence manufacturing.

Parrikar met with the five-sub groups that were set up to have a focused discussion on the subject.

They gave their presentations before the Minister and the Ministry will now study the recommendations in detail before going in for more meetings, defence sources said.

The five sub-groups are focused on armoured fighting vehicles (AFV), aircraft and helicopters, submarines, ammunition and macro process management of issues.

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.

READ MORE:
V K Aatre|parrikar|New Delhi|Ministry|Manohar Parrikar|DRDO|Defence ministry

 

[Indx TechStyle]

Defence ministry makes private players head of sub-groups to choose strategic partners
In a consultative meeting with industry associations on April 25, Parrikar had discussed the issue of choosing strategic partners, including their selection criteria, before formulating the final policy.
WRITTEN BY SUSHANT SINGH | NEW DELHI |PUBLISHED ON:MAY 26, 2016 2:47 AM

Defence minister Manohar Parrikar has made senior officials of private Indian defence companies heads of five sub-groups to make recommendations on choosing strategic partners in defence. The choice of private defence players and the absence of defence public sector undertakings (DPSUs) from these sub-groups has raised a few eyebrows.

Constituted by the defence ministry on May 24, these sub-groups have to be ready to make their presentations to the defence minister within ten days.

In a consultative meeting with industry associations on April 25, Parrikar had discussed the issue of choosing strategic partners, including their selection criteria, before formulating the final policy. He had decided in that meeting “to have focussed meetings with smaller group for selected platforms”.

The platforms selected for these five sub-groups are: Armoured fighting vehicles (AFV), aircraft and helicopters, submarines, ammunition including smart ammunition, and macro process management of issues. These are consistent with the five platforms recommended by the Aatre committee, except that helicopters and aircraft have been merged in one sub-group, and a separate sub-group created for process management.

Related

• Strategic partnership model: Parrikar to hold discussions with industry representatives today
• OROP payments made to 13 lakh ex-servicemen, rest to get it by Diwali: Parrikar
• Strategic partners in Defence production: Who gets to make in India, who doesn’t

Last year, an expert committee headed by former home secretary Dhirendra Singh had recommended the strategic partnership model to help build indigenous defence industry. Following that, a task force headed by former DRDO chief, VK Aatre had spelled out the contours of strategic partnership model.

Aatre committee had identified ten domains for strategic partnership in defence production. In each of these domains, a private Indian defence company was to be selected as a strategic partner on the basis of its financial and technical capabilities. A company could become a strategic partner only in one domain, in which it would be assured of all orders for 20 years.

HS Shankar, chairman & MD of Alpha Design Technologies, a company involved with AFVs has been made head of the AFV sub-group. Sukaran Singh, CEO & MD of Tata Advanced Systems Limited, with a stake in the aeroplane manufacturing industry heads the aircraft and helicopters sub-group.

The submarine sub-group is headed by JD Patil, senior VP and head of defence and aerospace at L&T, which already has a substantial presence in submarine industry. Neeraj Gupta, MD of MKU Pvt Ltd, a company producing ammunition heads the ammunition sub-group. The macro-process management sub-group is headed by Rajinder Bhatia of Bharat Forge.

Representatives of DRDO, defence ministry and the concerned defence service are also part of each of the sub-groups, which also have a member of the Aatre committee.

The choice of chairmen of these sub-groups has caused some consternation in industry circles. “If you are going to decide how to select strategic partners, how can you have the interested player head the sub-group to decide whether it can be a strategic partner or not. This is a blatant conflict of interest,” an industry representative told The Indian Express on condition of anonymity.

Even some defence ministry officials are flummoxed by the absence of DPSUs and the short-time given to these sub-groups to respond. “The first notification was issued on May 20, which didn’t name the head of sub-groups. It was given ten days. Then we had this notification with names of head of each sub-group, and it has been given ten days again,” said an official.

A senior defence ministry official, however, clarified that “this is part of a larger consultation process and no final decision can be taken so quickly. Any proposal we make in the ministry will have to go to other ministries for approval.”

 

[Indx TechStyle]

Advanced offshore patrol vessel for Sri Lanka Navy launched

VASCO: The launching of the first advanced offshore patrol vessel built in-house by the Goa Shipyard Ltd for the Sri Lanka Navy was held at Goa Shipyard Ltd yard in Vasco on Friday at the hands of M Gunawardana, wife of Eng. Karunasena Hettiarachchi, Secretary to the Ministry of Defence Sri Lanka.

The function was attended by the chairman and managing director of GSL Rear Admiral (Retd) Shekhar Mital, High Commissioner of Sri Lanka Esala Weerakoon, Ella Mital, Commander of Sri Lanka Navy Vice Admiral Ravindra C Wijegunarathne, joint secretary to the Defence government of India Kamlesh Pant, former CNS Admiral Arun Prakash besides the representative of Defence from Sri Lanka and the officials of the GSL.

This is the first of its kind advanced offshore patrol vessel of the total two of its series ordered by Sri Lanka.
Speaking on the occasion, Hettiarachchi said that the vessel will be deployed to protect the common maritime interests in the Indian Ocean and address the common maritime security threats and challenges that are becoming more complex and challenging day by day.
“When we look at the area south of Sri Lanka, one can clearly see that till the South Pole we have a huge open ocean space wherein few have the capacity to carryout surveillance in this vast ocean space,” said
Hettiarachchi and opined that Sri Lanka Navy, being strategically located in the Indian Ocean, has to expand her maritime reach mainly in EEZ at the initial stage and then stretch into the high seas to assist other regional navies in protecting the oceans, and to ensure that our seas are used only for peaceful purpose.
He said that addition of this advanced offshore patrol vessel as well as the next vessel will enhance the maritime surveillance capability and capacity of the Sri Lanka Navy.
“Our Navy too then will be able to contribute in a much broader way to protect the maritime interests of not only Sri Lanka, but that of the whole Indian Ocean region”, stated Hettiarachchi.

 

[Indx TechStyle]

India plans to offer HAL’s Dhruv and LCH to Vietnam

Supersonic BrahMos Cruise missile is not the only weapons system which India plans to Export to Vietnam well informed and highly reliable sources close to idrw.org and now Defence Ministry plans to allow HAL and DRDO officials to hold further talks with Vietnam officials to explore export of other defence weapons to Vietnam.

State-owned Hindustan Aeronautics Limited (HAL) plans to revive previously held discussions with Vietnam officials on sale of Advanced Light Helicopter “Dhruv” Helicopters and also plans to offer Light Combat Helicopter which is still under development but lately has been generating lot of interest from various countries due to its cheaper price tags and its ability to perform exceptionally well in higher altitudes.

HAL also plans to explore the possibility of collaboration on training crews and supply of spares for Sukhoi Su-30MK2 fighter fleet operated by Vietnam . DRDO on other hand wants to offer indigenously developed Ground level radars , communication , Surveillance equipment along with many Naval Types of equipment developed by its associated labs for equipment in warships.

India and Vietnam recently discussed the sale of Mobile Coastal Battery equipped with BrahMos missile for use against sea-based targets.

 

[Indx TechStyle]

Private industry willing to join strategic partnership for defence manufacturing, with some tweaks

In a series of presentations to Defence Minister Manohar Parrikar over the weekend, top private industry representatives conveyed their support for the SP model.

NEW DELHI: The private industry seems to have fallen in line with the defence ministry's Make in India cornerstone policy of selecting strategic partners(SP) for major manufacturing projects with top executives making several suggestions to make the model workable.

In a series of presentations to Defence Minister Manohar Parrikar over the weekend, top private industry representatives conveyed their support for the SP model but made suggestions to make it more open, instead of restricting a sector to a single entity, as has been suggested by a high powered committee.

Sources told ET that presentations made to Parrikar included points like splitting up of the suggested groups further to accommodate more partners, doing away with the concept of restricting a company to a single sector, tweaking the qualification criteria for selection and relaxation of financial requirements.

The suggestions mark a major shift in the private sector that was in the past majorly inclined against the very concept of strategic partners that several executives had described as unworkable. The industry inputs were requested by Parrikar late last month. The minister is pursuing a July deadline to formalize the SP model that will need to be approved by the cabinet. "Allow a company to be SP in more than one segment, as long as they meet technical, financial and domain specific criteria; (have) adequate capacity, capability to take on simultaneous work orders in two segments (and) are in related segments that have commonality of infrastructure & domain practices," one of the suggestions made to Parrikar says.

"A major shift is that all the companies have now broadly accepted the concept of the model. They have suggested tweaks and changes in selection criteria and the segments but the idea of the SP has been found acceptable," a source aware of the developments told ET. The industry has pitched for allowing 'more than one Company per segment subject to market size' and has suggested that groups be split up further to enable more partners.

For example, in the aircraft segment is to select partners in different categories like combat planes and transports. In the helicopter segment, single and double engine choppers may be separated. For the armoured vehicles segment, heavy tanks and lighter armoured fighting vessels may be segregated.

As first reported by ET on May 24, the Defence Ministry roped in the industry with the setting up of five consultation groups to make specific recommendations on manufacturing defence equipment to untangle the SP model mess. The model 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.

Each sub group had industry representatives from CII, FICCI, ASSOCHAM, PHDCCI and FISME with the chairman - from an industry association -making the final presentation to Parrikar on the discussions and recommendations.

 

[Indx TechStyle]

Indian Army To Set Up Design Bureau For Project Approvals

The Indian Army attempting a major rework of weapons design and procurement involving both industry and academia in its long-term perspective plan by setting up a design bureau for indigenization.

“The idea is to bring together academic institutions and the industry to develop indigenous knowhow. Knowledge and ideas are with academia, while industry has the resources. The interactions are meant to identify a series of projects which can be taken under the ADB,” a senior Army officer was quoted as saying by the Hindu Sunday.

In order to identify joint development projects in critical areas, Lt. Gen. Subrata Saha, Deputy Chief of Army-Planning and Systems is currently holding a series of interactions with the academic institutions and industry across the country and sharing the Army’s long-term requirements.

Some 4-5 teams have been set up which are working on few prototypes and the Indian Institutes of Technology (IIT), Mumbai and Kharagpur are set to join the effort.

“We are willing to share our long-term perspective plans to the extent possible so various stakeholders are aware of our requirements and the Army is involved in the design and development from the preliminary stage,” the officer added.

Some of the priority areas the Army is looking at include small arms, smart munitions, communication and electronic warfare systems and Unmanned Aerial Vehicles (UAV), both surveillance and combat.

The Army, which has been traditionally reluctant to engage with the industry, is now opening up with the government’s emphasis on ‘Make in India’.

While the idea is welcome, there is need for policy clarity on how these projects will work within the larger Defence Procurement Procedure (DPP) which guides all defence procurements. In fact, DPP 2016 has created a new category, indigenous Design Development and Manufacturing, which will be the preferred procurement route for procurement.

Wish this new organization doesn't end up like DRDO.
@Chinmoy @MKM @HariPrasad-1 @Kshatriya87 @Kunal Biswas

 

[Indx TechStyle]

Defence procurement policy 2016: Government allows foreign entities to engage agents for defence deals

Foreign entities have been allowed to engage agents for defence deals under a strict set of conditions, which includes giving defence ministry access to company accounts.

NEW DELHI: Foreign entities have been allowed to engage agents for defence deals under a strict set of conditions, which includes giving defence ministry access to company accounts.

This is part of the new defence procurement policy, which also bars the practice of paying commissions depending on the success or failure of the effort. The policy, which has been under deliberations for more than a year, was finally put in place on June 8. A key chapter on 'strategic partners' is still not ready and will be added later, said officials.

The policy outlines seven specific conditions for employing agents. This includes a clause that they would not be engaged to manipulate contracts or indulge in unethical practices.

Besides access to financial documents, no fees linked to the progress of the contract would be allowed. Also an annual report on payments made and full disclosure of past payments will have to be submitted to the defence ministry.

Violation of the conditions would invite penal action but the policy does not state the exact nature of punishment. This, officials said, would be elaborated in a new blacklisting policy that is still in the works. Interestingly, the provisions also empower the defence ministry to reject any agent hired by the foreign company. This has been put in place to keep out undesirable contact persons out of the procurement loop based on past dealings or controversy.

"MoD reserves the right to inform the vendor at any stage that the Agent so engaged is not acceptable whereupon it would be incumbent on the vendor either to interact with MoD directly or engage another Agent. The decision of MoD on rejection of the Agent shall be final and be effective immediately," the DPP section on agents reads.

The new policy also addresses the issue of payment of commission to agents that is linked to the value of a particular contract. In the 556 million eurosAgustaWestland VVIP chopper scam for instance, it was accused that 10% commission was paid.

"The contract with the Agent will not be a conditional contract wherein payment made or penalty levied is based, directly or indirectly, on success or failure of the award of the contract," the new policy states. Industry experts have welcomed the MoD move of bringing clarity to the issues.

"The role of 'defence agents' has always been under a shroud and this at times has led to delays and even contract cancellations that adversely affect force preparedness.

With the norms of appointing and utilising defence agents by foreign vendors being clarified, their role becomes a part of the system and lends overall transparency," said Ankur Gupta, vice-president A&D, EY India.

While technically, agents were allowed in the past, they were never openly appointed by defence companies as their role could be questioned by the ministry. Several contracts, including a recent one for counter mine vessels have been cancelled due to a lack of clarity on the role or mandate of an agent.

READ MORE:
MoD|Defence Procurement Policy|Defence|AgustaWestland

 

[Chinmoy]

Indian Army To Set Up Design Bureau For Project Approvals

Wish this new organization doesn't end up like DRDO.
@Chinmoy @MKM @HariPrasad-1 @Kshatriya87 @Kunal Biswas

Actually it would not be a organization. It would be more of an mediator in between IA and other developers. If they are planning something like NDB, then I am sure that days of backdoor entry for arms dealers are numbered.

Now they would be responsible for any design flaw in upcoming products. In fact its a welcome decision on part of IA. One should be more clear about what is their need and what they want. I would welcome such a decision from IA and MOD.

 

[Indx TechStyle]

@pmaitra @Kunal Biswas This thread was posted back in 2015 which predicted Indian Defense Exports to surge 40% but they have doubled+ from $150 million to $330 millions.
Plus I have dedicated this thread for posting updates on Defense Exports, Indigenization and initiatives of MoD for better procurement.

Kindly, suggest a suitable title and change it.

 

[Rushil51]

http://www.newindianexpress.com/the...d-OROP-deadlock/2016/05/29/article3455636.ece

I am committed to making our defence forces more self-reliant and to push for Make in India in defence production. I have set a target to raise India’s defence exports to $2 billion in the next two years from the current $330 million.

 

[Rushil51]

Let's not forget this does not include BrahMos sale to Vietnam and modified Kamorta Class sale to Philippines. Seems like we will certainly meet out target of $2 billion.

 

[Kshatriya87]

Let's not forget this does not include BrahMos sale to Vietnam and modified Kamorta Class sale to Philippines. Seems like we will certainly meet out target of $2 billion.

Brahmos deal is not something that can be finalised quickly. It will take some time. But L&T can definitely supply patrol vessels to Vietnam before that.

 

[Indx TechStyle]

Nod for export of missile systems to friendly nations: Manohar Parrikar

"In-principle decision has been taken to allow exports to certain countries who are in friendly relationship with us," he said.

BENGALURU: Government has decided in principle to allow export of missile systems to 'certain' countries who have friendly relationship with India, Defence Minister Manohar Parrikar said today.

"The government had taken a very conscious decision about 4-5 months ago that 10 per cent of the missile capacity will be permitted to be exported if producers manage to get export orders subject to parameters set by the union government and External Affairs Ministry," he told reporters here.

Policy of export was always existing earlier, but the problem was lack of spare capacity after meeting requirement of the country's armed forces, he said, adding that the production capacity for various missile systems like 'Akash' had been been improved now.

"In-principle decision has been taken to allow exports to certain countries who are in friendly relationship with us... if they manage to export, then we would enhance the capacity by 10 per cent so that the forces are not deprived," he said.

Parrikar, here for the inaugural flight of indigenous basic trainer aircraft Hindustan Turbo Trainer-40 (HTT-40), was responding to a question on export policy.

On possible export of BrahMos missiles to Vietnam, which he had visited earlier this month, he said the Southeast Asian country had expressed interest and a group would be set up to discuss about their requirement.

About Rafale fighter plane deal, the Defence Minister said discussion between both sides had concluded and he was waiting for a report from the Indian team which had held negotiations.

"....may be next week I should receive their report, once the report is received, the Ministry will analyse it and then it will go to the government," he said.

The deal was announced by Prime Minister Narendra Modi in April last year during his visit to France when he said India would purchase 36 Rafales in a government-to-government contract.

To a question about the delay, he said "...I think we are now fast coming to a conclusion."

Asked about the standby, if the deal does not come through, Parrikar said: "I don't think you should see it from the negative side, because it is a declaration by two governments and we have signed in principle memorandum also."

Noting that the finalization of the deal was not very far, he said "we waited almost 14-15 years for acquisition. "This is not a big time if you compare;...it is a big purchase we have to be careful."

READ MORE:
Manohar Parrikar | BrahMos Missiles

 

[Indx TechStyle]

Tata Boeing aerospace unit's foundation laid

HYDERABAD: The foundation stone of a manufacturing facility being built by Tata Boeing Aerospace Limited (TBAL), a joint venture of Boeing and Tata Advanced Systems, was laid at the Aerospace Special Economic Zone (ASEZ) at Adibatla on the city’s outskirts on Saturday.

Boeing’s multi-role combat AH-64 Apache helicopter fuselages and other aerostructures will be co-produced at the facility. Apart from the production of the main body of the combat helicopters, integrated systems in aerospace will also be made here.

Boeing, the world’s largest aerospace company, and Tata group, India’s leading industrial group, have established a partnership to manufacture aerostructures for Boeing’s commercial and military aircraft. The announcement of a joint venture to manufacture aerostructures and collaboration on integrated systems development opportunities was made in November last year.

The production facility here will eventually be the sole producer of AH-64 fuselages globally. The Apache has been flown or selected for acquisition by the United States and 15 other nations, including India.

Union defence minister Manohar Parrikar, who was the chief guest at the ground-breaking ceremony, appreciated Boeing for keeping its word given to him on locating the facility in India.

State industries minister KT Rama Rao, who was the guest of honour, said the state emerged as a leading hub in defence research, missile technology and space technology. “The state government will come out with an aerospace and defence policy. We are also working on establishing an aeroskills academy in Hyderabad,” Rama Rao said.

Tata Advanced Systems Ltd chairman S Ramadorai, said theTata-Boeing partnership was the latest example of growing collaboration between India and the United States of America.

State transport minister P Mahender Reddy, Boeing India president Pratyush Kumar, Boeing’s Vertical Lift vice-president Dave Koopersmith, Tata Advanced Systems CEO and managing director Sukaran Singh, and others were present at the programme.

 

[Indx TechStyle]

Rs 1 lakh crore defence purchases on Manohar Parrikar’s mind

In a marathon meeting on new acquisitions, defence minister Manohar Parrikar is set to discuss projects worth over Rs 1 lakh crore, including critical purchases like armed unmanned aerial vehicles.

NEW DELHI: In a marathon meeting on new acquisitions, defence minister Manohar Parrikar is set to discuss projects worth over Rs 1 lakh crore, including critical purchases like armed unmanned aerial vehicles (UAVs), an advanced air defence system, carbines for the Army and a range of vessels for the Navy.

A meeting of the high-powered Defence Acquisition Council (DAC) is scheduled for Saturday after a gap of several weeks and sources have told ET that the fate of several projects that have been in the works for years will be discussed. The forces are keen to move ahead on these acquisitions, several of which have not moved for over a year due to differences within the ministry.

High on the agenda is a proposal to acquire a new fleet of armed drone for the Indian Air Force, which will expand its options for punitive cross-border action in response to terror. While a $400 million proposal for acquiring armed Heron TP drones from Israel was given a quiet goa ahead last year, the deal is yet to be inked.

India may now also have the option to purchase US-made Predator armed drones after its recent entry into the Missile Technology Control Regime. Another major Air Force acquisition plan to be discussed is the $6.1-billion purchase of S 400 air defence system from Russia that is seen as a game-changer for the region. The S 400, which is also being procured by China, has a range of over 300 km and an ability to even target aircraft flying deep in enemy territory.

The Air Force is also expected to push for its plans to acquire the Indo-Israeli long-range surface-to-air missile. A long-pending proposal to equip two Boeing777 VVIP aircraft that are being transferred from Air India with missile avoidance systems is also to be discussed. On the Army front, some clarity is expected on the $700-million plan to purchase M777 ultra-light howitzers under a foreign military sales deal with the us.

The plan to purchase 145 howitzers from the BAE Systems has hardly moved forward since January this year. Another Army plan that has been in the works since 2010 to replace its long - retired short-range carbines is also to be discussed. The Army wants to import 44,600 carbines and only one of the three competitors — Israeli IWI — has qualified after field trials.

A decision could also be taken on the long-running 'short-range surface-to-air missile' project of the Army to purchase an agile missile shield for forward moving forces. While the Israeli Spyder system has qualified, the decision has to be taken on whether to continue with the acquisition or replace it with the indigenous Aakash missile system.

A range of Navy vessels that have to be bought are also to be discussed as the validity of their necessity is expiring shortly. Among these are six new-generation missile vessels expected to cost over Rs13,000 crore and a new range of fleet support vessels that could cost as much as Rs10,000 crore.

READ MORE:
US|Manohar Parrikar|Israel|Indian Air Force|Boeing|BAE Systems|Air India

 

[Indx TechStyle]

Ashok Leyland May Close Deal Soon With Malawi for up to 500 Vehicles

Gianluigi Guercia/AFP via Getty Images

A Malawi Defence Force member stands armed by a road following riots in Ndirande township in May 2014 in Blantyre, Malawi.

GABORONE, Botswana — The Malawi government and Indian defense equipment manufacturer Ashok Leyland are reportedly close to signing a deal for the sale of up to 500 military and civilian vehicles to replace the aging operational fleet of the Malawi Defence Force (MDF).

According to local newspaper "Nyasa Times," the MDF is seeking personnel carriers, light trucks, fuel tankers, field ambulances, water bowsers, buses and other logistics vehicles to replace its Tata-made military fleet, which was also acquired from India in 2006.

Government sources quoted by the paper said a team of three officials from Ashok Leyland headquarters in Chennai, India, visited Lilongwe to meet top Malawian government and military officials to finalize discussions on the sale. The government of Malawi has reportedly agreed in principle to acquire some of the vehicles at a cost of up to $100,000 each, excluding shipping and secondary logistics costs.

In March, former Malawi Deputy Defence Minister Malison Ndau announced government plans to replace the MDF fleet but said he would invite potential suppliers to submit bids from which a suitable supplier would be selected. However, the selection of Ashok Leyland without going through a tender process has led to calls for the country's Anti-Corruption Bureau to probe how the Indian company landed the deal.

The MDF's military transport and logistics vehicles modernization program arose from the need to meet the mobility, logistics and force protection requirements of nearly 800 troops deployed to support the Southern African Development Community (SADC) regional combat mission set up to battle rebel groups operating in the eastern Democratic Republic of Congo (DRC).

Speaking during a visit to troops deployed to the MDF's SADC brigade in DRC in May, the chairman of Malawi's Parliamentary defense committee, Willet Kalonga, said Malawian troops need new, modern equipment to operate in the thick jungles and bad Congolese terrain.

"We will request the government to ensure that our troops are adequately equipped for such missions. Here, the forest is very thick and vision is down to 5 meters, all in very bad terrain," he said.

The MDF is also setting up a new local mountain force which requires new transport and supporting logistics platforms. If confirmed, the sale would represent an expansion of the Indian company's shares of the African market following the sale of Ashok Leyland's DOST Light Commercial Vehicles to Malawi, South Africa and Kenya in June 2015.

In July 2015, Ashok Leyland delivered 633 out of an order of up to 670 troop carriers, buses, transport trucks, water tankers, fuel tankers, fire tenders, ambulances and light commercial vehicles ordered by the Zimbabwe Defense Forces in 2014. The equipment was acquired at a cost of $50 million secured from India's Exim Bank.

Ashok Leyland also provided training for Zimbabwean technical staff in the operation and maintenance of the vehicles. Apart from Zimbabwe, Ashok Leyland supplied 691 vehicles of the same configurations to the Tanzania People's Defence Force in 2013. The vehicles were ordered at a cost of nearly $35 million.

Commenting on the Zimbabwean and Tanzanian orders last year, Ashok Leyland Managing Director Vinod Dasari said the company had deliberately shifted its focus from other markets to boost sales in the African military market.

"These projects are a continuation of the many pilot projects we have done across Africa to offer integrated solutions, and these orders have been won in the face of stiff global competition," Dasari said. "It is very encouraging to see our efforts bear fruit. I am confident this is the beginning of a successful new area of enhanced cooperation between Ashok Leyland, Africa and our valued customers."

The company has previously supplied military vehicles of assorted configurations to the armies of Kenya, Djibouti, Botswana and the Seychelles. Ashok Leyland's African network includes sales and support offices in Nigeria, Ghana, Malawi, Mozambique, Kenya, Tanzania, South Africa, Egypt and Tunisia.

 

[Indx TechStyle]

India to be made defence export hub: Manohar Parrikar

"The government has taken steps in defence sector by increasing FDI. This has been done in order to make India an export hub over the years,"Parrikar said.

Bhuvaneshwar: Union Minister Manohar Parrikar today said the Centre has decided to double the production capacity of two defence establishments in Odisha and concrete steps are being taken to make India an export hub in defence and make it self-reliant.

"The government has taken steps in defence sector by increasing FDI. This has been done in order to make India an export hub over the years," he said while addressing a meeting with the ex-servicemen here.

Rejecting apprehension that local manufacturers would be affected after allowing FDI in the sector, the Defence Minister said when the NDA government came to power, rate of import of defence material by India was 70 per cent.

"Now, import of defence items has come down to below 60 per cent. I can assure that by the time the government ends its first term, we will be able to bring down our imports to 40 per cent," Parrikar said.

Talking about the 'One Rank One Pension' (OROP) issue, he said its implementation has got delayed as the ex-servicemen have not been able to furnish the required documents on time.

After meeting the representatives of employees union of defence establishments in the state, Parrikar said the production capacity of of HAL, Sunabeda will be doubled in 3-4 years.

The expansion work will start at Sunabeda in 6 to 7 months, he said.

He added that the local BJP leaders have urged him to take steps for enhancing the production capacity of the ordnance factory in Badmal.

"We can help create some employment without taking token money from the candidate," Parrikar said, adding the local manufacturers will not be affected by the entry of FDI in defence sector.

He also took out time to meet Prasant Kumar Patnaik, his former teacher at IIT, Bombay.

READ MORE:
Union Minister|OROP|Manohar Parrikar|FDI|Defence Minister|BJP

 

[Indx TechStyle]

Defence imports may come down: Parrikar

Union Defence Minister Manohar Parrikar and Oil and Petroleum Minister Dharmendra Pradhan (left) addressing a news conference in Bhubaneswar on Sunday. | PTI
___________________________________________
For the first time in the country, we are creating strategic reserve of fuel, he says

Defence Minister Manohar Parrikar on Sunday exuded confidence that defence imports would be brought down below 40 per cent by the end of the NDA government’s term.

“When our government came, defence imports were approximately 70 per cent. Now they have come down to below 60 per cent. I can assure that by the time the term of this NDA government ends, the imports will be brought down to below 40 per cent,” Mr. Parrikar said at a convention of ex-servicemen here.

“We don’t want war, but we annually spend nearly Rs. 3,40,000 crore for preparation of war. If war takes place, we need to be fully prepared. Even after spending so much of money and we have to go to war while depending on others, we may land up in short-supply and at critical juncture, we may land up in no-supply,” he said.

“When we conducted nuclear tests at Pokhran in 1998, whole western world, including the U.S., banned specific technologies. You cannot depend on import of critical materials for the security of nation. Apart from security on weapons, we need to ensure energy security,” the Minister said.

“For the first time in the country, we are creating strategic reserves of fuel. It was never thought of by previous governments. China has created facilities for storage of crude oil for 20 days and the U.S. has 50 to 60 days of storage. India used to have five to six days of storage, mostly stocks in transit. There was absolutely no strategy for a strategic reserve,” he said.

Agusta deal

Targeting the Congress, Mr. Parrikar said, “Loot was going on in the last Congress regime. When I tabled details of the AgustaWestland deal in Parliament, the next day media started picking holes in other defence deals, including acquisition of supporting vessels. If I start examining all decisions taken by the previous Congress regime, I won’t be able to do any work. It will be matter of concern.”

“They [including the Opposition] also demand for blacklisting suppliers whose deals are suspicious. If I start blacklisting companies where will I bring spare parts used in their weapons? Exactly, the same had happened in Bofors case. In 1984, we purchased Bofors guns. When the issue of corruption was raised, the company was blacklisted. In 1999, during Kargil war, Bofors guns became useful to tackle enemies positioned in high altitude. We were forced to lift the ban,” said the Minister.

Regarding allowing 100 per cent FDI in defence sector, Mr. Parrikar allayed apprehensions that local industries would be impacted. “As per a 2016 guideline on defence procurement, the first priority will be given to equipment which are indigenously designed and developed.”

“The objective behind allowing FDI in defence sector is India can become exporter of defence products over a period of time. If a foreign company starts operating from Indian soil, it will create jobs for Indians,” Mr. Parrikar said.

 

[AnantS]

I propose the renaming of this thread to Tracking Mr Parrikar's progress on Defence Self Reliance