Indian defence industry exports watch

[Cutting Edge]

Gujarat gets ready to be defence hub

Aiming to encourage development of aerospace and defence industry in the state, Gujarat government on Wednesday announced an investor-friendly Aerospace and Defence Policy 2016. The new policy offers incentives and tax sops with regard to land allotment, stamp duty, registration charges and electricity duty among others. The policy envisages promotion of cluster-based industries and provides for cash subsidy to micro, small and medium enterprises (MSMEs).

To attract defence and aerospace sector players, the state will now provide government land at 50% of jantri rates for setting up units during the five-year tenure of the policy,. Land owned by the state and Gujarat Industrial Development Corporation will be given first preference for land allotment.

J N Singh, chief secretary, Gujarat said while announcing the policy, “Those willing to establish their manufacturing units under the policy, will get land at 50% of the existing jantri rate. Earlier, a committee was to be formed for deciding the rate for land allotment. However, the process was time consuming.”

“There will be 100% rebate on stamp duty and registration charges levied on land purchased and electricity duty waiver for a period of five years since the commencement of production,” Singh added.

He said that inter-tidal land of Gujarat Maritime Board (GMB) and state government will also be allotted to the units under this policy, which lays special emphasis on cluster-based industries in defence and aerospace sector.

Apart from providing land at jantri rates for development of industrial clusters, a facility for trial and testing range will also be made available for defence industry.

As far as tax sops are concerned, the government has offered tax relief up to 90% of fixed capital investment. It could also go up to 100% considering financial constraints faced by any player. The tax sops are for a period of 10 years. The policy also provides for cash as well as interest subsidy for aerospace and defence sector players wanting to establish their units in the state. To make MSMEs an integral part of defence industry development in the state, the government has offered cash subsidy up to Rs 2.50 crore exclusively for MSME units.

http://idrw.org/gujarat-gets-ready-to-be-defence-hub/ .

 

[SANITY]

India's defence is backward and unequipped when compared to China
It is high time for the Indian military to seriously embark on its long march to modernisation.
China has a dream: to ensure economic prosperity, social stability, and a decent life to its citizens, but also to become a powerful nation; in fact it dreams to become one day the most powerful nation on the planet.

Military power will play a crucial role in the rejuvenation of the Chinese nation. This explains the in-depth military reforms undertaken by President Xi Jinping a year ago.

China is really serious about this. On December 5 in Beijing, President Xi Jinping, who is also chairman of the Central Military Commission (CMC) attended a two-day meeting during which he called for “a smaller army with better combat capability and optimised structure.”

Warfare

Xi spoke about the informationised modern warfare and emphasised the importance of joint operations. He called for readjusting and optimising the military's structure: “new type of forces must be developed, the ratios between different types of forces must be rationalised, and the number and the scale of the military be downsized.”

This raises two important questions. While undertaking these reforms, has China not taken a too large bite, which is now difficult to chew? The other question is: what does this mean for India?

Xinhua remarked that December 2015 “marked a fresh start in the history of the Chinese Armed Forces, as the nation embarked on a long march of deepening military reform.” On December 31, new services were created, namely, the PLA Army, the PLA Rocket Force and the PLA Strategic Support Force, and a few weeks later, the seven erstwhile Military Regions were regrouped into five PLA Theater Commands.

Soldiers of China's People's Liberation Army (PLA) march during the military parade. (Reuters photo)

The creation of a PLA Strategic Support Force is a plunge into the future as it will deal with cyber and space warfare, probably the keys of tomorrow’s conflicts. But changing mindsets and controlling vested interests is not an easy proposition.

Peter Wood, the editor of the China Brief of the Jamestown Foundation noted that Chinese publications “calling for the PLA to ‘cast off’ old concepts about the predominance of the ground forces are further indication that the transition has not gone smoothly.”

Regarding India: it is high time India undertakes reforms, in which the role of the ground forces (Indian Army) need to be rebalanced with the Navy and the Air Force, giving a greater role to "informationised warfare".

There are other issues which need to be reviewed: take for example the appointment of a Chief of Defence Staff (CDS). In December 2015, defence minister Manohar Parrikar said that the post of CDS “could be a reality soon”. He then added that the prime minister “marked defence reforms as a priority and stressed that ‘jointness at the top’ was a need long overdue.”

Apathy

The CDS would coordinate between the three services, the strategic command responsible for the nuclear weapons…and one day, the cyber and space commands. The creation of a post of CDS was already recommended by a Group of Ministers in 2001.

But what happened since then? Practically nothing.

Another example of the apathy of the Indian system is the Indian National Defence University (INDU). Planned since decades, the government finally approved the setting up of the INDU at an estimated cost of 2.95 billion in Haryana in 2010.

On the occasion of the laying of the foundation stone by Prime Minister Manmohan Singh in 2013, Air Chief Marshal NAK Browne, the then chairman of the chiefs of staff committee asserted that “India needs military leaders who can critically analyse, demonstrate professional acumen and are capable of meeting the threats and challenges at the tactical, operational and strategic levels."

What has happened to the INDU? Lost in the corridors of South Block?

In the meantime, Kanwa Asian Defense, a Chinese-language publication reported that China's military build-up is coming closer to India.

Acumen

Beijing's military would have placed more missiles and fighter jets along the Indian border: “The weapons have been deployed in Tibet and in the western region of Xinjiang along with airborne early warning and control systems.”

Kanwa said that Chinese troops have placed the J-11, the J-10 and the Kongjing-500 (airborne early warning and control or AEW&C aircraft) in rotational deployment. The Shenyang J-11 is a twin-engine jet fighter, developed to compete with fourth-generation fighters.

On December 3, 2016, a PLA website showed pictures of airmen “assigned to an aviation regiment under the PLA Western Theater Command performing flight checks on a J-11 fighter jet prior to a round-the-clock flight training exercise under realistic combat environment at a military airfield.” The airport is located near the Indian border.

Kanwa also said that in Korla (Xinjiang), China may have deployed troops for the launch of mid-range ballistic missiles and in Hotan, north of the Aksai Chin, J-10 and H-6K strategic bomber would have been spotted.

Is it not high time for the Indian defence forces to seriously embark on its long march to modernisation?

 

[SANITY]

India, the New Kid in Defense Exports, Ratchets Healthy Growth

Export licenses issued to Indian domestic companies have jumped eight times since Narendra Modi became PM in mid-2014. But in absence of home grown technology, it will have to depend on global manufacturers for further breakthroughs.

New Delhi (Sputnik) – In an indication of the present Government's focus on advancing defense manufacturing, India's global sale of defense equipment has increased to almost double than last year.

The Indian government has provided a major boost to indigenous defense equipment capabilities by granting production licenses to 116 Indian companies. Defense Ministry documents suggest that India has turned its focus towards sale of aviation items to smaller countries after gaining a favorable response in selling naval equipment to countries having differences with an assertive China. Apart from government units, New Delhi has issued 54 industrial licenses to Indian private companies for the manufacture of aviation items such as aircraft, Unmanned Aerial Vehicles (UAVs), lighter-than-air-vehicles, remotely piloted vehicles, parts and accessories for aircraft, air flights, airframes sets, landing gears and related equipment.

Till now, India's major defense exports comprise patrol vessels, helicopters & their spares, sonars & radars, small arms, small caliber ammunition, grenades and telecommunication equipment etc.

In value terms, India's defense exports in 2013-14 were $174 million, which crossed to $309 million in fiscal 2015-16; reveals Ministry of Defense documents. The government has become more liberal in distributing export license to Indian companies. Defense companies have received 241 ‘no objection certificates' in fiscal 2015-16, which is more than six times in comparison to fiscal 2014-15. The government has set an ambitious target of $ 2 billion in defense equipment exports by fiscal 2017-18.

However, without indigenous R & D capabilities, India is mainly supplying products built on technology licenses provided by global equipment manufacturers. The Indian government is pushing hard to sell its indigenously assembled LCA ‘Tejas' to cost-conscious countries in Asia and helicopters to Latin American countries. But it is not known if re-export permissions are required from overseas suppliers of components of Tejas. Its engines are American, radar, helmet display and laser pod of Israeli make and Russia has supplied the canons and missiles.

 

[SANITY]

Indian Commando Across Pakistan Border to Receive Lethal Weapon
New Delhi (Sputnik) — India's Special Forces will be getting more teeth as the Defense Acquisition Council's (DAC) December 23 meeting may approve the purchase of the latest assault rifles and lightweight long range machine guns equipped with night sights. The Defense Acquisition Council (DAC) is India's highest decision making body for defense purchases and is headed by the Minister of Defense. The DAC may also approve the purchase of more M4 automatic rifles from the US.



The new equipment will be earmarked for the Special Forces that carried out `surgical strikes' across the Line of Control (the de facto border between India and Pakistan). According to the proposal, Special Forces will be equipped with sniper rifles and automatic general purpose machine guns along with approximately 1,000 personal automatic rifles. Apart from this, the purchase plan includes two dozen lightweight rocket launchers and 500 pistols.

According to sources, the Special Forces will be equipped with latest version of Carl Gustaf rocket launchers that are much lighter than the current version. New launchers will have intelligent-sighting system and programmable ammunition. Rocket launchers will be made in the Indian Ordnance factory and delivery may start next year.

 

[Indx TechStyle]

India, the New Kid in Defense Exports, Ratchets Healthy Growth

Export licenses issued to Indian domestic companies have jumped eight times since Narendra Modi became PM in mid-2014. But in absence of home grown technology, it will have to depend on global manufacturers for further breakthroughs.

New Delhi (Sputnik) – In an indication of the present Government's focus on advancing defense manufacturing, India's global sale of defense equipment has increased to almost double than last year.

The Indian government has provided a major boost to indigenous defense equipment capabilities by granting production licenses to 116 Indian companies. Defense Ministry documents suggest that India has turned its focus towards sale of aviation items to smaller countries after gaining a favorable response in selling naval equipment to countries having differences with an assertive China. Apart from government units, New Delhi has issued 54 industrial licenses to Indian private companies for the manufacture of aviation items such as aircraft, Unmanned Aerial Vehicles (UAVs), lighter-than-air-vehicles, remotely piloted vehicles, parts and accessories for aircraft, air flights, airframes sets, landing gears and related equipment.

Till now, India's major defense exports comprise patrol vessels, helicopters & their spares, sonars & radars, small arms, small caliber ammunition, grenades and telecommunication equipment etc.

In value terms, India's defense exports in 2013-14 were $174 million, which crossed to $309 million in fiscal 2015-16; reveals Ministry of Defense documents. The government has become more liberal in distributing export license to Indian companies. Defense companies have received 241 ‘no objection certificates' in fiscal 2015-16, which is more than six times in comparison to fiscal 2014-15. The government has set an ambitious target of $ 2 billion in defense equipment exports by fiscal 2017-18.

However, without indigenous R & D capabilities, India is mainly supplying products built on technology licenses provided by global equipment manufacturers. The Indian government is pushing hard to sell its indigenously assembled LCA ‘Tejas' to cost-conscious countries in Asia and helicopters to Latin American countries. But it is not known if re-export permissions are required from overseas suppliers of components of Tejas. Its engines are American, radar, helmet display and laser pod of Israeli make and Russia has supplied the canons and missiles.

The reports are earlier posted here say $450 millions?

 

[airtel]

just 450/309 million ??

even Canada sold 900 ICV to saudi Arabia & earned 11 billion$ .

we should start selling tata kestrel , LCH , LAH , ghatak etc .

to African & south american countries .

 

[charlie]

just 450/309 million ??

even Canada sold 900 ICV to saudi Arabia & earned 11 billion$ .

we should start selling tata kestrel , LCH , LAH , ghatak etc .

to African & south american countries .

system or platform has to Mature, the first question the other country will ask is how much did you sell in your local Market ?

 

[Indx TechStyle]

just 450/309 million ??

even Canada sold 900 ICV to saudi Arabia & earned 11 billion$ .

we should start selling tata kestrel , LCH , LAH , ghatak etc .

to African & south american countries .

$76 millions to $450 millions within two is a significant improvement.
Parrikar has target to export $2 billion defence equipment between 2017 & 19. If he succeeds, we can break in top 10 exporters.

 

[Indx TechStyle]

system or platform has to Mature, the first question the other country will ask is how much did you sell in your local Market ?

India's indigenization ratio has increased from 25% to 40% targeted for 70% in 2020.

 

[charlie]

India's indigenization ratio has increased from 25% to 40% targeted for 70% in 2020.

I was trying to tell him that those platform has to inducted first by our own forces to justify export.

 

[SANITY]

The reports are earlier posted here say $450 millions?

It is $ 309 million when taking the figure of goods in licensed segments only, About 65 per cent of defence sub-segments that are delicensed are not included in list of the defence ministry figures.

Just checked official figure at http://ddpmod.gov.in/defence-exports
It says, "The value of defence export by DPSUs, OFB and the Private Sector Companies (based on the NOCs issued), for the financial year 2015-16 was Rs. 1693.80 crore which is about $250 million as compared to Rs. 994.04 crore during the financial year 2014-15".

 

[ezsasa]

It is $ 309 million when taking the figure of goods in licensed segments only, About 65 per cent of defence sub-segments that are delicensed are not included in list of the defence ministry figures.

Just checked official figure at http://ddpmod.gov.in/defence-exports
It says, "The value of defence export by DPSUs, OFB and the Private Sector Companies (based on the NOCs issued), for the financial year 2015-16 was Rs. 1693.80 crore which is about $250 million as compared to Rs. 994.04 crore during the financial year 2014-15".

Indx tech's number is close because after modi govt came they de-regulated many defence products from getting Govt approval before export.

Since Govt is not not giving any approvals, they do not show up in govt numbers.

I tried calculating the number once from ministry of commerce website, adding up all export codes with defence sub-component. It came to about 2500 crores. Even there it is difficult because, defence items are not coded separately. Defence items can exist within electronics, high engineering, naval systems etc.

Basically there is no direct method of arriving at this number, only subtotalling of various line items.

 

[SANITY]

Indx tech's number is close because after modi govt came they de-regulated many defence products from getting Govt approval before export.

Since Govt is not not giving any approvals, they do not show up in govt numbers.

I tried calculating the number once from ministry of commerce website, adding up all export codes with defence sub-component. It came to about 2500 crores. Even there it is difficult because, defence items are not coded separately. Defence items can exist within electronics, high engineering, naval systems etc.

Basically there is no direct method of arriving at this number, only subtotalling of various line items.

Not concerned about numbers. If we want to break into major arms exporter, don't we need to make our components? It seems like all part of Tejas is taken from various countries. Are we atleast focusing on making and using our own components as well?

 

[Indx TechStyle]

Not concerned about numbers. If we want to break into major arms exporter, don't we need to make our components? It seems like all part of Tejas is taken from various countries. Are we atleast focusing on making and using our own components as well?

Tejas is now 59% indigenous by weight and 75% by numbers.
Let's hope we can push figure further up.

 

[Indx TechStyle]

Defence Minister Manohar Parrikar to discuss major manufacturing projects, new policy today
By Manu Pubby, ET Bureau | 23 Dec, 2016, 00:34 hrs IST

NEW DELHI: In what could be a big day for the Make in India initiative, the defence ministry could give a go ahead to a key policy change at a high powered meeting chaired by Manohar Parrikar on Friday, besides discussions on taking forward at least two major manufacturing projects for the private sector.

Sources have told ET that a marathon meeting of the defence acquisition committee (DAC) has been planned that could clear the long pending Strategic Partnership (SP) model that will identify partners in the private sector for major military manufacturing projects like submarines, fighter aircraft and ammunition.

The SP model, which was announced in the new defence procurement policy in March, has been stuck for several months with comments and suggestions being taken in from various stakeholders, including industry groups and expert panels.

Officials said that Parrikar's pet project could now get final clearance at the Friday meetings, kick starting the process to identify private sector companies capable of taking large scale manufacturing projects.

In the first phase, projects for manufacturing a new line of submarines, a fighter jet production facility and ammunition procurement from a private sector partner are likely to be finalized. At least two major make in India projects are also likely to be discussed at the meeting.

 

[Indx TechStyle]

Tata Motors seeks nod for taking help of group companies over Rs 60,000-crore Army tender

Tata Power SED is also in competition for the Indian Army tender.

NEW DELHI: Despite two Tata group companies at loggerheads over the Rs 60,000-crore future infantry combat vehicles (FICVs) order, Tata Motors said it hopes to draw on the expertise of Tata Power and other group companies, if the government permits it.

Tata Power SED is also in competition for the Indian Army tender. The peculiar contest — that pitches a Tata Motors-Bharat Forge combine against a joint venture of Tata Power SED and Titagarh Wagons — was one of the core disputes that led to the Tata-Mistry tussle, as reported earlier by ET.

Vernon Noronha, defence business head at Tata Motors, said two offerings were made by the group as it had two ‘distinct’ products to offer, but future cooperation was definitely on the cards. “There is absolutely no doubt that when the shortlist happens, and if allowed by the government, we would draw upon competencies of other companies, including Tata Power,” he said.

Top Indian private companies, including L&T and Mahindra Defence Systems, are targeting the mega order to set up a facility for combat vehicles that can also address the global market, with the much-awaited FICV project. The defence ministry is expected to take a call on shortlisting two companies that will develop prototypes for a final selection very soon.

As reported by ET, Ratan Tata was “dismayed” after the group made two bids for the prestigious army contract earlier this year — India needs over 2,600 future infantry combat vehicles. A board member who spoke to ET said Ratan Tata felt that two bids “made Tatas a laughing stock”. Tata was of the opinion that Tata Motors should combine with SED for the order.

 

[Indx TechStyle]

Government to fund defence MSME work up to Rs 10 crore

Defence Minister Manohar Parrikar has laid out the guidelines for MSME work. In cases where academia or research institutions are involved, their work involvement cannot exceed 40% of the total efforts required,” an MoD paper on the fund says.

NEW DELHI: More than two years after announcing it, the government has finally kick started its defence technology fund scheme -- a cornerstone of the Make in India initiative that will fund research by MSMEs on urgent military technology projects up to a value of Rs 10 crore.

In the first round, six projects have been identified for the Technology Development Fund (TDF) plan, in which the government will fund the development of technologies or a prototype by selected companies that has to be completed within two years.

The Defence Research and Development Organisation will oversee the execution. Among the projects chosen to initiate the plan are light weight bulletproof materials for the Army that can be used to make bulletproof jackets and vehicles.

Another project is to develop and demonstrate a series of fuel cells to meet different requirements of the Army. First announced in the 2014-15 budget, the scheme already has an annual allocation of over Rs 100 crore that is still to be utilised. “The programme will cover improvements to existing systems, development of futuristic technologies and import substitution.

The idea is to encourage the private sector to undertake research and come up with solutions,” an official involved in the project said.

Limited to a two-year developmental cycle to avoid delays, the plan is to make industry work in collaboration with the academia or research institutions for selected projects.

A detailed standing operating procedure has been drafted and made public which lays out selection criteria for Indian companies wishing to apply for the funds. “Such chosen entities will be referred to as Development Agencies (DAs).

In cases where academia or research institutions are involved, their work involvement cannot exceed 40% of the total efforts required,” an MoD paper on the fund says.

 

[Indx TechStyle]

Work-In-Progress In Defence Shipyards

Defense Shipyards have capability of manufacturing front line warships like destroyers, frigates, corvettes including auxiliaries like fleet tankers, fast attacks crafts, landing craft utilities, mine counter measure vessels, offshore patrol vessels, etc. Cochin Shipyard Limited, under administrative control of Ministry of Shipping is building the Aircraft carrier for Indian Navy. Government has taken several initiatives to modernize these shipyards. The details of some of the initiatives are as under:

Mazagaon Dock Limited (MDL):

MDL has successfully completed Mazdock Modernization Program (MMP), which included creation of facilities like New Wet Basin, Module Workshop, heavy duty Goliath Crane, Cradle Assembly Shop etc. In addition new Submarine Assembly Workshop has been developed as a second line for Submarine in 2014-15 and 2015-16, Rs.75.80 Crore and Rs. 38.99 Crore respectively were allocated for this purpose. Rs. 9.84 crore has been spent upto 30.11.2016 in 2016-17.

Garden Reach Shipbuilders & Engineers Limited (GRSE):

GRSE modernization project was completed in 2013 at a total cost of Rs. 606 Crore. The important facilities created under this modernization phase include Dry Dock (10000 Ton capacity), inclined Berth (4500 ton capacity), Module Hall, 250 Ton Goliath Crane, Electrical Substation, Paint Cell etc.

Goa Shipyard Limited (GSL):

GSL has undertaken infrastructure modernization program at an outlay of around Rs. 1300 Crore. It has four phases. Phase 1, 2 & 3A have since been completed. Work for balance phases (Phase 3B & 4) is in progress. Rs. 212 Crore was provided for the above modernization in 2014-15 and 2015-16.

Syndicated Feed
Credit: IDN

 

[Indx TechStyle]

Fron Alpha Design Technologies by Ehsani Mathur

 

[Indx TechStyle]

IRDE/DRDO Night Vision Sights for T-Series, etc.

IRDE/DRDO Night Vision Sights for T-Series, etc.

IRDE/DRDO Commanders Thermal Sights for T-Series, etc.

[GIF Image ]
IRDE/DRDO Pod for NAG launcher, QR-SAM, etc.