Indian defence industry exports watch

[Indx TechStyle]

By LiveFist Defence
EXCLUSIVE: Indonesia Gets In Line For India’s New AEW&C Jet

Indonesia could be the first foreign customer for the DRDO-Embraer AEW&C system, designated Netra, within the next year, if interest from Jakarta is anything to go by. Livefist learns Indonesia, which first expressed interest in the system, has escalated its interest to a request for a systems demonstration, possibly in that country. The project has achieved initial operational clearance, with the first of two jets set to be handed over to its customer, the Indian Air Force, at the Aero India show — a terrific splash of an idea.

At the 2015 Aero India show, Livefist got full access to the first jet.

India’s DRDO has been ordered to aggressively and proactively pitch the new DRDO-Embraer AEW&C jet platform to foreign customers at Aero India 2017. With 52 countries at the show, the project team will hopefully have its hands full. Livefist can confirm the DRDO has received foreign interest (beyond preliminary enquiries) from Brazil itself, Israel and South Africa. “We have also received interest on just the sensor package developed by us for the platform, for fitment on other designated airborne platforms of countries in the interests of commonality or other compelling factors,” a member of the project told Livefist.

In a statement released yesterday, the Ministry of Defence said, “The Airborne Surveillance System is a game changer in air warfare. The AEW&C System is a system of systems populated with state-of-the art Active Electronically Scanned Radar, Secondary Surveillance Radar, Electronic and Communication Counter Measures, LOS (Line of Sight) and beyond LOS data link, voice communication system and self protection suite, built on an Emb-145 platform, having an air to air refueling capability to enhance surveillance time. Complex tactical software has been developed for fusion of information from the sensors, to provide the air situation picture along with intelligence to handle identification/classification threat assessment. Battle management functions are built in house to work as a network centric system of Integrated Air Command & Control System (IACCS) node.”

 

[Hemu Vikram Aditya]

in 2015

I meant 2025.........................................

By LiveFist Defence
EXCLUSIVE: Indonesia Gets In Line For India’s New AEW&C Jet

 

[Indx TechStyle]

I meant 2025.........................................

Even take 2025,results will be same. Turkey will assemble it only.

 

[Indx TechStyle]

Adani group's military venture to focus on aeronautics

Adani officials said the plan was to gain expertise in only the aeronautical sector of the defence market in the initial years.

BENGALURU: The Adani group’s foray into India’s military industrial complex will concentrate primarily on aeronautics and the group is drawing up a plan to set up facilities for the manufacture of jet fighters and unmanned aerial vehicles (UAV) besides setting up a maintenance, repair and overhaul (MRO) hub for aircraft at its 200-acre land bank in Mundra, a top executive handling the new venture of the Ahmedabad-based company told ET.

“We have spent the last 12 months conceptualizing and have decided to concentrate on one sector – aerospace. We want to create a tangible presence here. We want to set up a complete hub spread over 200 acres and an airbase that can be used for all types of aircraft,” the executive said.

Sharing details of its defence venture – the first public announcement was made in March last year in Goa – Adani officials said the plan was to gain expertise in only the aeronautical sector of the defence market in the initial years rather than spreading itself thin targeting areas like land systems and warship production.

The group’s defence venture is centred on a planned aviation hub at Mundra, spread around the existing air strip qualified as an alternate landing site for military aircraft operating in the region. It has also made its debut at India’s premier air show, AeroIndia with its joint venture company Adani-Elbit Advanced Systems India Limited. A master plan of the aviation hub shows a 100-acre area earmarked to set up a fighter jet production line and 50 acres each for a UAV line and a maintenance, repair and overhaul (MRO) facility.

“The plans are being worked but we would be creating a unique facility that could be leased out to any company that wishes to set up a fighter jet line. This could be an Indian company and its foreign partner. They would have a complete ecosystem available for the project,” the executive said. India is in the process of identifying a foreign partner for a multibillion dollar project to manufacture a new line of single engine fighter aircraft. The plan is to produce close to 200 jets in India in collaboration with a private sector company to give a boost to the domestic aeronautical manufacturing industry.

Adani’s joint venture company with Israel’s Elbit also responded in September to a request for information by the Indian defence ministry for a new fleet of medium weight unmanned aerial vehicles. India requires close to 200 new UAVs for the three services to meet an increasing demand for surveillance platforms. A top executive said that the Hermes 900 that is on offer can also be upgraded into a combat platform for future requirements of the Indian armed forces.

“We have a long term joint venture for the project that will cater for all upcoming requirements here. This is in line with the government’s policy on Make in India,” the executive said. A formal tender for the UAV requirement is expected to come out by next month.

 

[Tactical Frog]

For example, as in the case of Rafale, which we are buying and UAE is also using (the Rafale), there is some interest. This is something that we can do together in terms of portion of the Rafale that would be built in India. Those are the areas that we are identifying and will work together," Amar Sinha added.

Either this is a confusion between Rafale and Mirage 2000 , either this is a major gaffe from an Emirati official ... I will opt for the latter.
A Rafale with Indian build parts will be considerably cheaper on exports markets than a full 100% French made Rafale. With this decisive price reduction... Rafale can win big contracts in Abu Dhabi and other oil-rich clients, where we face US and UK). It is win-win association for both France and India.

 

[Indx TechStyle]

MSME defence parks to be set up at Sanand, Khoraj and Dholera

The government of India has given 22 industrial licences for defence equipment and weapons manufacturing in Gujarat.

GANDHINAGAR: The Gujarat government has decided to set-up defence parks, at the Sanand and Khoraj GIDCs, cumulatively spread over 1,500 hectares and proposed another estate in the Dholera SIR, for defence manufacturing MSMEs.

A key official close to the development said: "Considering the possibility of developing the defence sector in the state in coming years, the state government has decided to develop three MSME parks in the state, reserved for ancillary suppliers to large defence manufacturers. The government has decided to reserve Sanand and Khoraj GIDC estates and a proposed estate in Dholera SIR for MSMEs producing ancillary parts. The area earmarked at Sanand and Khoraj GIDCs is 1,500 hectares. Under the proposed MSME policy, these parks may be given special incentives."

The government of India has given 22 industrial licenses for defence equipment and weapons manufacturing in Gujarat, one of the highest numbers in the country. It is expected that several projects like defence vehicles, warships and weapons manufacturing plants will come to Gujarat, and will source material and parts from the local manufacturers.

The Sanand MSME defence park was first proposed when Narendra Modi as Gujarat CM started promoting defence manufacturing in Gujarat's SIRs (special investment regions) and SEZs (special economic zones) in 2010 and announced the formulation of a new policy at the 2013 editions of Vibrant Gujarat.

The Gujarat industry and mines department, however, had failed to come out with the defence manufacturing promotion policy.

 

[Indx TechStyle]

MKU Offers Armoring Solutions To Indian Military Helicopters

Helicopter armoring (Image: MKU)

India’s MKU has offered to armor helicopters from the Indian armed forces, a senior manager with the company said during Aero India air show 2017.

“Keeping in mind the multi-role operations and survivability of utility and assault helicopters, MKU designs helicopter armor kits using ‘Modular Schutz Technik’. The technique uses precision engineered composite armor panels and aero-grade attachment systems. We can armor any helicopter by Indian armed forces,” Rajesh Gupta, Senior Manager with MKU said Thursday.

These kits are installed on existing structure of helicopters and will not require any structural changes or tampering with aerodynamics of the helicopter. We currently have done armouring for 20 different types of helicopters worldwide including MI-8/17; Lockheed C-130; Pilatus PC-6 Turbo Porter; Boeing CH-47; Eurocopter BO-105; Sikorsky S-70 Black Hawk, UH60,UH 60M,” Gupta said.

MKU manufactures combat helmets, ballistic shields, armor inserts, and overvests to armed personnel based on sixth generation Polyshield V6 armoring technology. The technology uses advanced composite materials and techniques to reduce weight of armor for both aircraft and helicopters by nearly 40 percent, he said.

 

[Indx TechStyle]

HEMRL, ARDEC to work towards eco-friendly primary explosives

DEFENCE Research and Development Organisation’s (DRDO) High-Energy Materials Research Laboratory (HEMRL) in Pune and USA-based Army Research and Development Engineering Centre (ARDEC) have entered into an understanding to develop eco-friendly primary explosives.

The two agencies will be working towards development of an environmental-friendly initiatory compositions together to meet the ever-increasing challenges of safety and handling of hazardous operations involved in production of ammunition, a press release sent through the Defence PRO said.

Scientists from both the laboratories will be working independently on synthesis and characterisation of various green primary compounds and will be sharing the information and technology for mutual benefit under the agreement. HEMRL is considered as a key government agency in the research and development on high energy materials for defence applications. Many technologies have been developed since its inception and have been deployed in production of military arsenals. Scientific contributions made the laboratory have been recognised internationally.

A team of delegates from ARDEC, Department Of Defence, USA visited HEMRL on Tuesday and Wednesday to discuss developments under ongoing collaborative research activities on green explosives in India and the US, the release said. The knowhow developed by both the establishments on some key technologies has been exchanged. The research efforts are likely to culminate in development of less hazardous green initiatory compositions with enhanced performance. The discussions also included recent advancements in low vulnerable ammunition.

 

[Indx TechStyle]

India eyes it big as a major exporter of military hardware

Akash missiles, mounted on a truck, are displayed during the Republic Day parade in New Delhi. (Reuters File Photo)

The world’s largest importer of weapons is taking baby steps towards positioning itself as an exporter of military hardware.

State-owned Bharat Dynamics Limited (BDL) has chalked out a plan to export anti-tank guided missiles (ATGMs) and Akash surface-to-air missiles.

BDL managing director V Udaya Bhaskar told Hindustan Times that the defence public sector undertaking was in preliminary discussions with countries such as Turkey, Egypt, Kazakhstan, Vietnam and Myanmar to tap the export potential of the weapon systems.

“We are exploring opportunities to export Konkur and Milan ATGMs as well as Akash surface-to-air missiles. The ATGMs are built under license from Russian and French firms, and they will give us country-specific export clearance,” Bhaskar said. BDL has already inked a deal with Myanmar for supplying light-weight torpedoes.

India has identified 15 weapon systems for exports including Astra beyond-visual-range air-to-air missile, Prahar surface-to-surface missile, light combat aircraft (LCA), BrahMos supersonic cruise missile, sonars, Arjun Mk-2 tanks, airborne early warning and control systems, a variety of unmanned systems and battlefield radars.

India has set a target of exporting weapons and systems worth $2 billion by 2019, six times the size of India’s current exports. The government has allowed defence PSUs to earmark 10% of their production for exports to help India increase its defence exports. PSUs could earlier export only after meeting the demands of the Indian armed forces.

Bhaskar said the orders were unlikely to be very big but it would help India get a foothold in the global market.

Last week at Aero India-2017, BDL signed a memorandum of understanding with French firm Thales to assess the opportunity for the transfer of technology of the laser-guided STARStreak missile to India.

“Through this MoU, Thales and BDL seek to jointly offer a “Make in India” solution to help service growing international demand for this product,” said a Thales release. The missile, with three laser-guided darts, cannot be jammed by any known counter measure and can down even armoured helicopters.

The Make in India plan seeks to cut the country’s dependence on imported weapons and position the country as a hub of defence manufacturing.

 

[Hemu Vikram Aditya]

ECO FRIENDLY EXPLOSIVES

 

[Indx TechStyle]

ECO FRIENDLY EXPLOSIVES

Death of enemy will be green!

 

[Indx TechStyle]

Sheikh Mohammed, Anil Ambani discuss defence, aerospace

Image credit: DefenceAviationPost

Trade and investment issues figured prominently at a meeting in Abu Dhabi between His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai and Anil Ambani, chairman of India's diversified Reliance Group.

They also discussed various business opportunities, particularly in the defence sector, between the two countries and how the partnership and collaboration between Indian and UAE companies can boost defence production in both nations, it is learnt.

The meeting took place on the sidelines of IDEX 2017, the International Defence Exhibition and Conference, one of the biggest such shows underway in Abu Dhabi.

Reliance Group is a participating at the IDEX 2017, which started on February 19.

The meeting between Sheikh Mohammed and Ambani comes after Reliance Defence recently signed an MOU with Strata Manufacturing, the advanced composite aero-structures manufacturing company, wholly-owned by Mubadala Development Company of the UAE, to explore cooperation in the field of advanced aerospace manufacturing capabilities between India and the UAE.

The agreement will deepen the bilateral ties developed between the UAE and India at both the political and economic level, it is learnt.

The potential partnership between Reliance Defence and Strata, which follows extensive discussions between the two companies, will look at opportunities in the production of Carbon Fibre Composites Aerostructures, Prepegs as well as 3D printing of aerospace components and airframe panels. This collaboration is in line with Strata's vision to become one of the top aerospace companies globally.

The Dhirubhai Ambani Aerospace Park, located at the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN), is being considered by Reliance Defence Limited for a new facility to support its aerospace ambitions, and forms part of the emerging aerospace industry in India.

Strata is a composite aero-structures manufacturing facility based in the heart of Nibras Al Ain Aerospace, Al Ain, UAE. It has partnerships with the world's leading aircraft manufacturers such as Airbus, Boeing and Leonardo-Finmeccanica Aero-structures Division, and is a Tier one supplier to FACC AG, SAAB and S.A.B.C.A.

 

[Indx TechStyle]

By MoneyControl
LR-SAM, Akash orderbook at $2 bn; 15-17% margin sustainable: BEL
The orders for LR-SAM and Akash missile system can be worth nearly USD 1 billion each, adding roughly Rs 13,000 crore to BEL's total order book in the coming quarters, says Chairman and Managing Director MV Gowtama. The current orderbook is around Rs 34,000 crore.

While negotiations for Akash is underway and expected to be completed soon, the negotiations for LRSAM is expected to conclude by March.

The company currently has margin of around 18-19 percent. But Gowtama says it is not sustainable. A 15-17-percent margin is achievable, he says in an interview to CNBC-TV18.

Gowtama expects double-digit growth in defence over the next 10 years backed by India's focus on self-reliance in defence.

He said the company is investing heavily into R&D with about 10 percent of revenues going into research. The company is also heavily ramping up execution capabilities.

Below is the verbatim transcript of MV Gowtama's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.

Anuj: This offer-for-sale (OFS) is happening and the government stake will come down but I just wanted to talk about business because some of defence companies have been in focus of-late. How is business shaping up and going forward, with the kind of focus on defence what kind of order book do you see for yourself?

A: We have little less than Rs 34,000 crore of order book right now and the focus on defence is increasing year-on-year and also self-reliance in defence is being focused upon.

The successive governments are ensuring that the domestic defence industry contributes a lot for the defence services. So the growth in double digits for the overall defence industry is very much on the card for the next 10 years and it is a great opportunity for people to make wealth through this government’s OFS of 5 percentof their stock.

Latha: In the earlier part of the year, you had guided for orders of Rs 13,000 crore. When we last spoke to you, you all had done Rs 6,000 crore, are you seeing a lot of orders in Q4 that can take the order book up?

A: The negotiations for Aakash are underway and we expect completion anytime. That is near to a billion dollar order. Similarly, the negotiations for LRSAM are also underway and that also we expect to conclude before March and that also will be another near to a billion dollar order book. So yesterday the BSE has cleared the second phase of coastal surveillance system so that is again a big order as far as Bharat Electronics is concerned. So that order is likely to come. It may take another two-three months’ time but certainly we are going to get.

Latha: Let me go beyond just March 31. By June 30th will your order book look like even more than Rs 13,000 crore?

A: Certainly.

Sonia: What will all of this do to your margins because you have been undertaking transformation of your company to a systems integrator and that was expected to aid your margins going ahead? Are we looking at margins upwards of around 18-19 percent in the near-term?

A: Margins of that range may not be sustainable in a long-term when we are picking up large system integration programme. So such type of margins are certainly possible when we deliver equipment and collect the cash across the counter. So in large system integration programmes, infrastructure development is also part of it. In the sense the margins certainly will be stressed when our business is shifting more towards large system integration.

Sonia: You were telling us that 18 percent margins may not be sustainable because such big projects of system integration could take time and have costs involved, so what do you think could be a very sustainable margin performance for you in the near-term?

A: I put it between15 and 17 percent margins are certainly sustainable for us. The type of business that we go through in a long-term. However, year-to-year, it also depends on how much intellectual property rights, what we are bringing into the equipment. If the IPR content of BEL is going up, again we can certainly cross 19 percent margin.

Latha: Is the IPR content going up because that will also come only by hiring state-of-the-art scientists. So that will also be in a higher wage bill. So what are the chances that you can climb above 19 percent sustainably?

A: The possibility is also quite high. I am an optimist in that regard also. If you see, BEL is one company which is spending a lot on research and development (R&D). We nearly spend 10 percent of our revenues back into R&D and we have many programmes which we have taken up through collaboration also with many Indian and foreign R&D institutes. So the IPR content in BEL is continuously growing and that is bringing value to us.

Latha: Can you maintain this pace of execution? Will you continue to be able to generate Rs 7,000-8,000 crore in terms of revenues?

A: Certainly. We are trying to increase our execution capability much beyond what we are today. We have 20 strategic business units and on an average, we are loaded to about 60-65 percent only.

We have got lot of inherent capability within the company and we are also increasing our outsourcing to small and medium enterprises (SMEs) and also micro, small and medium enterprises (MSMEs). So with this I am quite sure that we will be able to meet up to the challenges.

Sonia: You did mention that 10 percent of your Revenues is what you spend on R&D, for the following year for FY18, can you give us the exact number or specifically for strategic electronics segment what would be the R&D spends and what can the revenue opportunity be on the back of that?

A: In 2015-2016 we spent about Rs704 crore and 2016-2017 also we are spending more than Rs 700 crore as on today. For FY18 we have more than Rs 1,000 crore of projects lined up in R&D.

 

[Indx TechStyle]

Tata's NISL signs Surface Surveillance project with govt

NISL, the company claimed, is equipped to offer ‘customised technical solutions to Indian defence, paramilitary forces, civilian requirements, international OEMs and system integrators.’ Image Source: Tata Sons PR

NOVA Integrated Systems Limited (NISL), a subsidiary of Tata Advanced Systems Limited (TASL), along with the Ministry of Defence (MoD) on Wednesday announced that they have signed a contract to execute Indian Navy’s Surface Surveillance Radar (SSR) project.

“The SSR programme is the first procurement by MoD under the ‘Buy and Make (Indian)’ category of the Defence Procurement Procedure (DPP),” the company said.

The company also added that the project involved delivery, installation and commissioning of the Radar Systems on Indian Navy vessels, as well as delivery of simulators, establishing depot level facilities, and integrated logistics support with deliveries spread over 10 years.

“The proposed radar is based on the latest solid state technology and also suited for coastal surveillance applications,” NISL said.

The aerospace and defence sector initiative of Tata group, NISL the company claimed is equipped to offer ‘customised technical solutions to Indian defence, paramilitary forces, civilian requirements, international OEMs and system integrators.’

The Ministry of Defence, Government of India has said, “Procurement of SSR is part of Indian Navy’s plan for modernisation of its fleets. It would also be installed on the ships under construction and is in line with the Government’s ‘Make in India’ initiative.”

Commenting on the contract Sukaran Singh, Chief Executive Officer and Managing Director, Tata Advanced Systems Limited said, “We are proud to be the first private sector Indian Company to bag the coveted contract of the SSR project. Undertaking the responsibility of complete manufacture and assembly of a radar for the Indian Navy gives us an excellent opportunity to showcase our prowess of development and assembly projects in high technology areas.”

NISL has also partnered with Terma A/S of Denmark on this project to undertake the manufacturing, integration and testing of the Radar system under transfer of technology in India.

The company said, “Facilities at TASL’s Combat Management Systems (CMS) development center will be utilised for the SSR project which involves integration of the radar with a variety of weapon and sensor systems on different class of vessels of the Indian Navy’s Battle Assets.”

“We look forward to making a meaningful contribution to the Indian Ministry of Defence’s first procurement under the ‘Buy and Make (Indian)’ category of the DPP,” Singh added.

 

[Indx TechStyle]

A remarkable progress in India’s defence and space production
Dr Bhamre also informed that to involve private sector in defence R&D, projects have been undertaken under the “Make in India” category.

The Indian Space Research Organisation successfully launched a record 104 satellites, including India’s earth observation satellite, on board PSLV-C37/Cartosat-2 Series, from Sriharikota on February 15. (Photo: PTI)

On February 15, 2017 Indian Space Research Organisation (ISRO)’s Polar Satellite Launch Vehicle (PSLV-C37) successfully launched the 714 kg Cartosat-2 series satellite along with 103 co-passenger satellites from Satish Dhawan Space Centre, Sriharikota. In this 38th consecutively successful mission of the PSLV, the total weight of all the 104 satellites carried on-board PSLV-C37 was 1,378 kg. After a flight of 16 minutes 48 seconds, the satellites achieved a polar Sun-synchronous orbit of 506 km inclined at an angle of 97.46 degree to the equator (very close to the intended orbit) and in the succeeding 12 minutes, all the 104 satellites successfully separated from the PSLV fourth stage in a predetermined sequence beginning with Cartosat-2 series satellite, followed by INS-1 and INS-2. The total number of Indian satellites launched by PSLV now stands at 46. After separation, the two solar arrays of Cartosat-2 series satellite were deployed automatically and ISRO Telemetry, Tracking and Command Network (ISTRAC) at Bengaluru took over the control of the satellite. In the coming days, the satellite will be brought to its final operational configuration following which it will begin to provide remote sensing services using its panchromatic (black and white) and multi-spectral (colour) cameras.

Of the 103 co-passenger satellites carried by PSLV-C37, two — ISRO Nano Satellites, INS-1 weighing 8.4 kg and INS-2 weighing 9.7 kg — are India’s technology demonstration satellites and 101 were international customer satellites from the US (96), The Netherlands (1), Switzerland (1), Israel (1), Kazakhstan (1) and the UAE (1). With this successful launch, the total number of foreign customer satellites launched by India’s workhorse launch vehicle PSLV has reached 180.

On February 14, the first indigenous Airborne Early Warning and Control System (AEW&C) in inversion of control (IOC) configuration, having undergone all weather and environmental trials and accepted by the Indian Air Force (IAF), was handed over to it during Aero India 2017 at Yelahanka airbase, Bengaluru, by chairman, Defence Research and Development Organisation (DRDO) and secretary department of defence (R&D), Dr S. Christopher.

Considered to be a game changer in air warfare, the AEW&C is a system with state-of-the art Active Electronically Scanned Radar, Secondary Surveillance Radar, Electronic and Communication Counter Measures, Line of Sight (LOS) and beyond LOS data link, voice communication system and self-protection suite, built on an Emb-145 platform, having an air to air refuelling capability to enhance surveillance time. Complex tactical software has been developed for fusion of information from the sensors, to provide the air situation picture along with intelligence to handle identification/classification threat assessment. Battle management functions are built in house to work as a network centric system of the Integrated Air Command & Control System (IACCS) node. The AEW&C system has the IAF for induction.

On February 11, 2017 India successfully conducted a test wherein an incoming ballistic missile target was intercepted by an exo-atmospheric interceptor missile off the Bay of Bengal. With this commendable scientific achievement, India has crossed an important milestone in building its overall capability towards enhanced security against incoming ballistic missile threats. It has entered an exclusive club of four nations with developing capabilities to secure its skies and cities against hostile threats. Prime Minister Narendra Modi and defence minister Manohar Parrikar lauded the efforts of DRDO and all the scientists involved for their dedicated efforts in this significant achievement.

Recently, minister of state for defence Dr Subhash Bhamre informed in Parliament that in the last two financial years and current year, 90 contracts involving a value of Rs 83,344.31 crores were signed with Indian vendors and 51 contracts involving a value of Rs 1,16,667.34 crores were signed with foreign vendors for capital procurement of defence equipment. The Defence Procurement Procedure 2016 reflects the commitment to promote indigenisation and self-reliance in the defence sector by harnessing the capabilities of the public and private sector.

A contract between Nova Integrated Systems Ltd and Indian Navy for procurement of Surface Surveillance Radars (SSR) signed on February 17, 2017 is the first under the Buy and Make (Indian) category, in line with the government’s “Make in India” initiative. Nova Integrated Systems Ltd, a fully owned subsidiary of Tata Advanced System Ltd, will indigenously manufacture these state-of-the-art radars in collaboration with Terma, Denmark. This contract marks the entry of Indian private industry in production of hi-tech sensors for the Indian Navy. Procurement of SSR is a part of Indian Navy’s plan for modernisation of its fleets, and these radars will also be installed onboard the ships under construction. The government’s drive to modernise the armed forces and build an Indian defence industrial base with participation of private industry gets a major boost with the signing of this contract.

Some of the major weapon platforms indigenously designed and developed by DRDO, that have been successfully inducted into the services inter alia include advanced light helicopters, light combat aircraft, Akash missile systems, multi barrel rocket system — Pinaka, Arjun tanks, Sonars, etc.

Dr Bhamre also informed that to involve private sector in defence R&D, projects have been undertaken under the “Make in India” category. The government also launched the Technology Development Fund to involve industry, particularly SMEs in defence sector. According highest preference to the “Buy Indian” category of acquisition (indigenously designed, developed and manufactured) and revising the “Make” procedure in the Defence Procurement Procedure 2016, are moves expected to catalyse investment into defence research, development and innovation. Some of the new special innovative projects covering a wide variety of technology domains from aeronautics to missiles and naval systems undertaken by DRDO during last three years are:

• Pralay Missile
• Rudra M-II Air to Surface Missile
• Supersonic Missile Assisted Release of Torpedo (Smart)
• Ku-band Active Radar Seeker
• Stealth Wing Flying Testbed (SWiFT)
• AESA Based Integrated Sensor Suite (ABISS)
• EM Gun Powered by a Capacitor Bank
• Multi-Agent Robotics System (MARS)
• Ku-band TWTA for Aerospace Application
• Submarine Periscope
• Air Independent Propulsion System for Submarine
• AWACS (India), Radar USHAS

Details of expenditure made by the department of defence R&D during the last three years and current year, including the above mentioned projects are: Rs 10,868.88 crores in 2013-14, Rs 13,257.98 crores in 2014-15, Rs 13,277.27 crores in 2015-16 and Rs 13,593.78 crores in 2016-17.

Changing the policy on blacklisting of firms, the ministry of defence had debarred six firms, including their allied and subsidiary firms from further business dealings for a period of 10 years since April 11, 2012. Further, business dealings have been suspended/put on hold for 13 firms. For another four firms, orders were issued restricting procurement from them to cases where procurements are justified and necessary for operational urgency, national security and non-availability of other alternatives. Guidelines for penalties in business dealings with entities have been promulgated since November 21, 2016 to ensure probity, transparency, propriety and compliance in the defence procurement process and are also aimed at ensuring fairness, impartiality, rigour and correctness in dealings with entities, keeping in view the overall security interests of the country.

 

[Indx TechStyle]

BEML eyes ₹800-crore revenue from defence, aerospace verticals

A BEML display at the recently concluded Aero India show in Bengaluru | Bloomberg

BEML, a public sector firm, plans to double its revenues from the defence and aerospace verticals.

“The Centre’s Make in India initiative is showing results. Revenues from the defence and aerospace verticals, which used to be around 10-11 per cent of the company’s total turnover, is likely to touch 25 per cent this fiscal,” Deepak Kumar Hota, CMD of BEML, told BusinessLine.

“In value terms, the company is likely to post ₹800 crore in revenues from the defence and aerospace verticals, against ₹300 crore a couple of years ago,” he added.

After the Make in India initiative was launched, the company built a 1,200-odd supplier base, of which nearly 20 per cent are small and medium enterprises (SMEs).

Now, modernisation of key infrastructure is taking off, and the company is waiting for opportunities in civil aviation, airport infrastructure and defence engineering.

The company, which displayed its products and services at the Aero India 2017 show, got enquiries for Tatra ground support vehicles, armoured recovery vehicles, BMP transmission and aircraft towing tractors, said Hota.

Talking about localisation or indigenisation, Hota said: “The company has achieved 90 per cent indigenisation in the manufacture of mining equipment. In rail and metro it is around 45 -50 per cent, in defence and aerospace it is around 50 per cent. In the manufacture of Tatra trucks we have achieved 70 -75 per cent.” To facilitate more indigenisation, the company plans to throw open its testing facility at Kolar Gold Fields to other companies including SMEs.

At Kolar, BEML has built a test track to carry out ‘acceptance test’ for heavy duty army vehicles like armoured recovery vehicle and main battle tanks.

 

[Indx TechStyle]

India Eyes A New Role In The Global Arms Race

The Brahmos missile launchers are displayed during a dress rehearsal for the 2015 annual Republic Day parade in New Delhi, India. (AP Photo /Manish Swarup)

India has been spending more money on buying arms than any other country, sitting atop the list of arms importing countries for years. From 2011-15, the South Asian country has nearly doubled the amount of its expenditure from the 2006-10 period, making it a lucrative market for top arms exporters like the United States and Russia.

India's military expenditure from 2006-2016 (in billions)

Data: SIPRI Military Expenditure Database; made with Chartbuilder

But India wants to flip its role in the global arms industry by transforming itself into a leading arms exporting nation.

Prime Minister Narendra Modi's government has already scaled up efforts toward attaining this goal. Last week, the chief of India’s Defense Research and Development Organization said India is currently discussing the sale of short-range surface-to-air Akash missile to Vietnam. If the deal is signed, this will mark India’s first ever missile transfer to a foreign country.

India looks to Vietnam

During a visit to Vietnam last year, Modi offered the Southeast Asian country a line of credit worth $500 million to help beef up its defense capacity. India also offered a $100 million loan to build four patrol vessels for Vietnam. The defense cooperation has essentially elevated the bilateral relationship to what the both countries hail as “strategic partnership.”

However, for India, it means a bit more. New Delhi is wooing Hanoi to purchase the Brahmos missile, jointly developed with Russia. This supersonic cruise missile has a range of 250 kilometers and can be launched from land, sea and submarine. The Brahmos is the most advanced among the defense ministry-endorsed list of military hardware that can be exported by Indian companies. The list also includes armored vehicles, warships, tanks, electronic warfare devices, software, bombs and torpedoes aside from typical items such as ammunition, rifles, small arms and military training equipment.

Due to Vietnam’s dispute with China over the South China Sea maritime territories and, of course, the strategic competition between India and China, Indian exports to Vietnam are certain to stir the interest of many Asian countries. Whether India will go to great lengths to strengthen Vietnam's defense or stop short of the threshold so as to not upset Beijing would help shape India's future role in the regional arms race.

Meanwhile, India has quietly expanded the list of shoppers of its weaponry. It has supplied Afghanistan with combat helicopters, a move that has made Pakistan more wary of Indo-Afghan ties. And in 2014, the country sold a small warship to Mauritius, showing India’s keen interest in building a naval exporting industry.

Modi's efforts and challenges

At present, India’s per annum arms sale stands around $150 million. Prime Minister Modi wants to raise the figure to $3 billion in a decade. This ambitious goal is part of his highly-touted “Make in India” campaign to transform the South Asian nation into a manufacturing powerhouse.

In order to facilitate arms exports, the government has revised the Standard Operating Principles (SOPs), getting rid of the practice of countersigning the End User Certificate (EUC) by multiple government agencies for selected export items. And to further reduce bureaucracy, the application process and issuance of No Objection Certificates (NOCs) for military equipment to be exported has moved online. The government has also relaxed the caps previously imposed on foreign investment in the home-based defense industry.

Aside from bureaucracy, another challenge for India is achieving the technological prowess essential for producing an advanced weapon system. For instance, after years of effort, the air force finally developed a fighter jet, Tejas. But the navy says they won’t use it because the overweight jet is not suitable for the aircraft carrier.

New Delhi also needs to figure out ways to lure foreign companies to share their technology and manufacturing skills with Indian companies. The latest $8.7 billion deal with France's Dassault Aviation, which will reinvest 30% of the deal in India's aircraft industry, can be considered an apparent success for India. Regardless, India has still a long way to go to build an export-oriented military industry.

 

[Indx TechStyle]

Anil Ambani to spell out defence business plans
The Reliance Group's defence play started with the acquisition of Gujarat-based Pipavav Shipyard about two years ago.

Pitching defence business as the main growth driver, industrialist Anil Ambani will brief the sectoral and market analysts here tomorrow about future plans of his Reliance Group in this segment. This is the first time ever that Ambani or his group firm Reliance infrastructure is hosting an analyst meet for defence business. In a brief notification to the stock exchanges, Reliance Infra said the meet is being held to give an update on the group’s defence business.

The group officials said Ambani, the group Chairman, will himself interact with the analysts on the defence business and brief them about its future plans and how the defence business is going to be the main growth driver for the group in the years to come. Almost 100 analysts from Mumbai and Delhi are likely to attend this meet, they added.

While defence is the latest key business for Anil Ambani-led group, it is also present in financial services, telecom, power and other infrastructure sectors. The Reliance Group’s defence play started with the acquisition of Gujarat-based Pipavav Shipyard about two years ago. This remains the largest acquisition in the defence sector in India so far.

Pipavav Shipyard has now been renamed as Reliance Defence and Engineering Ltd (RDEL). It owns the largest dry dock in the country. Recently, the Reliance Group also entered into a joint venture with Dassault Aviation of France to execute the largest offset obligation against the 36 Rafale fighter jets bought by India. For this, the company is setting up manufacturing facilities in Mihan SEZ in Nagpur.

 

[ezsasa]

Anil Ambani to spell out defence business plans
The Reliance Group's defence play started with the acquisition of Gujarat-based Pipavav Shipyard about two years ago.

Personally I have decided that I will form an opinion on RDEL based their delivery of those five patrol vessels by pipavav.

 

[Indx TechStyle]

Godrej Aerospace readies ₹200-crore facility for defence business orders

Kaustubh Shukla, COO (Industrial Products Group), Godrej & Boyce | x

Godrej Aerospace (GA), a business unit of Godrej & Boyce, which had recently contributed to the ISRO’s successful launch of 104 satellites by manufacturing critical systems and components for the launch vehicle, is ready with a ₹200 crore facility for taking on new orders from Aerospace and Defence sector.

For ISRO’s launch, GA had manufactured second stage liquid propulsion engine and the fourth stage reaction control system components for the launch vehicle.

Prior assignments

Since 1985, the company has been working with government agencies such as Defence Research and Development Organisation (DRDO) and ISRO. Later, it became a supplier to Brahmos Aerospace for its missile programme.

It has also been a top vendor for ancillary supplies to global Defence and Aerospace majors such as Rolls Royce, GE and Snecma.

Kaustubh Shukla, Chief Operating Officer (Industrial Products) of Godrej & Boyce, told BusinessLine that Godrej & Boyce has been building capacities to produce larger numbers of equipment and today it is completely geared for fresh orders from ISRO and Ministry of Defence.

Shukla said that building manufacturing capabilities have taken many years for the company, as it believes that extensive experience is required for working with advance materials such as Inconel (nickel-chromium super alloy) and Titanium, which are extensively used in global Defence and Aerospace industries.

Capital equipment for making high-tech components can be bought easily on the market, but the expertise lies in knowing what to make and how to make those parts.

Over the years the company has gathered a huge amount of knowledge, manpower and certifications and now it is ready to accept new challenges, he said. Shukla said that with ₹200 crore investments made by the company, a major phase of the investment is over. Only incremental investments will be made for buying required capital equipment.

“We are no longer just a precisions component maker, today we can handle the whole value chain from machining, surface treatment to the assembly of mission critical components for the sectors,” he said.

‘Challenging task’

He pointed that making parts for a missile is a one-shot affair, but making parts for civil aviation companies is far more challenging as the lives of hundreds of people depend on those parts, which may be in service for six years in an aircraft. From space, defence to civil aviation, Godrej & Boyce is present in all these sectors.