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Imo people here are confusing the purpose of a light artillery it is a tactical weapon used for quick deployment.
Make in India - Domestic Defense Manufacturing
- Thread starter Hindustani78
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General Dynamics Light tanks for US militray.
Something like this can be totally made in India with A JV between CVRDE and any major defences company.
L&T is the most potent contenders since they have experience from k 9 Vajra.
The MOD needs to make up its mind rest all is within our reach.
Something like this can be totally made in India with A JV between CVRDE and any major defences company.
L&T is the most potent contenders since they have experience from k 9 Vajra.
The MOD needs to make up its mind rest all is within our reach.
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Our vajra literally would be world class that will create a benchmarking standard's like Merkeva and T 14's. Mark my word's.General Dynamics Light tanks for US militray.
Something like this can be totally made in India with A JV between CVRDE and any major defences company.
L&T is the most potent contenders since they have experience from k 9 Vajra.
The MOD needs to make up its mind rest all is within our reach.
Assassin 2.0
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All the mess could only be solved by one thing only, remember in 70's and early 80's why we were able to porcument defense products despite only lower defense budget despite subsidized product's from USSR's was due to the Defence ministry was many time's directly controlled by the PMO's . Then PM's procured many defence equipment's like Mig 29's, T 72's and BMP 2, could be fast tracked by that came at the cost of domestic products like Hal's proposed Deep strike aircraft never gone beyond search's and paper's.
The same way could be used to fast track domestic products procument's by fast trackinge's the procument's and solving the hurdle's . Why ISRO's is able to perform is also due to this way's being the DOS's being directly dictated's by the PMO's .
Assassin 2.0
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I'm here to spoil the party
Assassin 2.0
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Mixing two different foreign products with each other
( jokes aside it's cool coz we are going to indigenously manufacturer them)
Assassin 2.0
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Assassin 2.0
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IA logic protection?
RUSSIAN TIN CAN
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People need to write more on these calculations, so that it gets ingrained into Babu & Jernail heads.
======
Domestic Military-Industrial Complex
India has a fledgling Military-Industrial Complex (MIC) composed of Public Sector Undertakings (PSUs) and Private Sector entities of all sizes and shapes. Much has been written about it. Notwithstanding former Defence Minister Manohar Parrikar’s attempts at growing the MIC and weaning the services off imports, the period after his death has seen what some fear is a reversion to old ways. The current crisis with China and the emergency imports reinforce those fears, to an extent.
I’ve attempted to quantify the potential benefits that would accrue from investing in domestic products as compared to ordering from OEMs in other countries.
Assumptions
The Armed Forces (AF) need Anti-Tank Guided Missiles (ATGM). A tonne of them. But, like everything else in life, fiscal constraints dictate that there are only $10 million available in year one. For each subsequent year, the amount will organically increase by 8%.
The ATGM supplied by the foreign OEM – let’s call the ATGM ‘Barb’ – costs $210,000 / unit in year one. Each year the cost will increase by 4% because the OEM is genuinely benevolent (hah!).
The ATGM supplied by the domestic OEM will be called Ophiophagus – ‘Ophi’ – because, well, why not? Ophi costs 80% more than Barb in year one because a good 50% of its components are sourced from foreign OEMs. Also, the per unit cost for Ophi increases by 8% unless indigenous content increases. Expensive proposition. I can already see veterans shaking their sage heads.
Pic: An ATGM like Ophi.
To summarise:
Begin Procurement
Here I’ll indulge many a jingo’s fantasy and assume MOD’s procurement is instantaneous.
Year One
Now in year one, $10 million buys 48 units of Barb but just 27 units of Ophi. Bad news for Ophi, right? But here’s the thing, Ophi’s OEM sources half its components & raw materials from domestic suppliers. We’ll assume there are only 3 levels of suppliers.
So of the $10 million that flow to Ophi’s OEM, $2.35 million flow to the L1 supplier. Out of that amount $552,000 flow to the L2 supplier, and out of that $129,000 flow to L3 supplier. At each stage, GST is paid, Corporate Tax is paid, and employees pay Income Tax.
Total taxes paid = $1.53 million.
Year Two
Here we’ll do something that every bureaucrat in the Ministry of Finance will despise: we will redirect these taxes back to the ATGM budget for year two, subtracting 5% for R&D (which also flows to Ophi’s OEM, but for boosting indigenous content).
So year two ATGM budget for Barb is $10.8 million (8% increase), but that for Ophi is $12.25 million (after taxes flow back into it). Also, the 5% R&D results in indigenous content rising to 53% (because it’s a small enough and arbitrary enough number).
Since indigenous content goes up, per unit cost of Ophi goes down in proportion to the increase in indigenous content and the difference in price levels between India and Barb’s OEM’s home country.
In year two, the diverging budgets afford 50 Barbs or 34 Ophis.
Cumulative count: 98 Barbs OR 61 Ophis.
Year Three
Let’s plough taxes back into the Ophi & R&D budgets for year three.
Ophi’s budget for year three is now $15 million whereas Barb’s budget is $11.6 million. Ophi’s indigenous content has increased to 56%.
Ten Years
What happens if we continue this for ten years?
At the end of ten years:
1. 573 Barbs have been procured OR 1,145 Ophis have been procured.
2. If Ophis are procured, domestic OEM & its suppliers (L1 to L3) have:
But wait, there’s more.
Going by BEL’s numbers, it appears that earning $1 in revenue requires $0.2539 in Capex. Assuming that Capex depreciates over 5 years, a very simplistic calculation tells us that Ophi’s OEM and suppliers need $24 million in Capex from year one to year ten.
The National Institute of Public Finance & Policy estimates a cumulative fiscal multiplier of 4.8 for Capex. Basically, $1 in Capex yield $4.8 in economic activity in the long run. I know it might not fit directly here, but this is a short article not a bloody research paper, so it will have to do.
For $24 million in Capex, the economic activity would be $115 million.
These are all, of course, first order effects (except for the Economic Value Injected on account of Capex). When you factor in second and third order effects like:
shaunak.substack.com
======
Domestic Military-Industrial Complex
India has a fledgling Military-Industrial Complex (MIC) composed of Public Sector Undertakings (PSUs) and Private Sector entities of all sizes and shapes. Much has been written about it. Notwithstanding former Defence Minister Manohar Parrikar’s attempts at growing the MIC and weaning the services off imports, the period after his death has seen what some fear is a reversion to old ways. The current crisis with China and the emergency imports reinforce those fears, to an extent.
I’ve attempted to quantify the potential benefits that would accrue from investing in domestic products as compared to ordering from OEMs in other countries.
Assumptions
The Armed Forces (AF) need Anti-Tank Guided Missiles (ATGM). A tonne of them. But, like everything else in life, fiscal constraints dictate that there are only $10 million available in year one. For each subsequent year, the amount will organically increase by 8%.
The ATGM supplied by the foreign OEM – let’s call the ATGM ‘Barb’ – costs $210,000 / unit in year one. Each year the cost will increase by 4% because the OEM is genuinely benevolent (hah!).
The ATGM supplied by the domestic OEM will be called Ophiophagus – ‘Ophi’ – because, well, why not? Ophi costs 80% more than Barb in year one because a good 50% of its components are sourced from foreign OEMs. Also, the per unit cost for Ophi increases by 8% unless indigenous content increases. Expensive proposition. I can already see veterans shaking their sage heads.
Pic: An ATGM like Ophi.
To summarise:
- Barb costs $210,000 per unit & increases at 4% per year
- Ophi costs $378,000 per unit & increases at 8% per year, except if indigenous content increases.
I’ve taken assumptions about Cost of Goods Sold as % of Revenue, Salaries as % of Revenue, etc. from Bharat Electronics for the domestic OEM. The GST rate is assumed to be 18%, and the effective Income Tax Rate for employees of the domestic OEM is assumed to be 15%. The full set of assumptions can be seen in the image below.
Begin Procurement
Here I’ll indulge many a jingo’s fantasy and assume MOD’s procurement is instantaneous.
Year One
Now in year one, $10 million buys 48 units of Barb but just 27 units of Ophi. Bad news for Ophi, right? But here’s the thing, Ophi’s OEM sources half its components & raw materials from domestic suppliers. We’ll assume there are only 3 levels of suppliers.
So of the $10 million that flow to Ophi’s OEM, $2.35 million flow to the L1 supplier. Out of that amount $552,000 flow to the L2 supplier, and out of that $129,000 flow to L3 supplier. At each stage, GST is paid, Corporate Tax is paid, and employees pay Income Tax.
Total taxes paid = $1.53 million.
Year TwoHere we’ll do something that every bureaucrat in the Ministry of Finance will despise: we will redirect these taxes back to the ATGM budget for year two, subtracting 5% for R&D (which also flows to Ophi’s OEM, but for boosting indigenous content).
So year two ATGM budget for Barb is $10.8 million (8% increase), but that for Ophi is $12.25 million (after taxes flow back into it). Also, the 5% R&D results in indigenous content rising to 53% (because it’s a small enough and arbitrary enough number).
Since indigenous content goes up, per unit cost of Ophi goes down in proportion to the increase in indigenous content and the difference in price levels between India and Barb’s OEM’s home country.
In year two, the diverging budgets afford 50 Barbs or 34 Ophis.
Cumulative count: 98 Barbs OR 61 Ophis.
Year Three
Let’s plough taxes back into the Ophi & R&D budgets for year three.
Ophi’s budget for year three is now $15 million whereas Barb’s budget is $11.6 million. Ophi’s indigenous content has increased to 56%.
Ten YearsWhat happens if we continue this for ten years?
At the end of ten years:
1. 573 Barbs have been procured OR 1,145 Ophis have been procured.
2. If Ophis are procured, domestic OEM & its suppliers (L1 to L3) have:
3. Over 10 years, with increasing indigenisation of components, the per unit cost of the Ophi declines by 33% and it becomes more than competitive with respect to Barb even if you ignore other economic benefits (let’s not even mention the strategic advantages of controlling the supply chain for weapons systems we use).
But wait, there’s more.
Going by BEL’s numbers, it appears that earning $1 in revenue requires $0.2539 in Capex. Assuming that Capex depreciates over 5 years, a very simplistic calculation tells us that Ophi’s OEM and suppliers need $24 million in Capex from year one to year ten.
The National Institute of Public Finance & Policy estimates a cumulative fiscal multiplier of 4.8 for Capex. Basically, $1 in Capex yield $4.8 in economic activity in the long run. I know it might not fit directly here, but this is a short article not a bloody research paper, so it will have to do.
For $24 million in Capex, the economic activity would be $115 million.
These are all, of course, first order effects (except for the Economic Value Injected on account of Capex). When you factor in second and third order effects like:
- In addition to paying taxes, employees consume goods and services, boosting economic activity,
- Indigenous components developed (taking indigenous value from 50% to 77%) get used in other products like, for example, Hand Held Thermal Imagers or Day/Night sights for a tank or APC,
Domestic Military-Industrial Complex
A quick and lazy estimation of benefits from cultivating a domestic Military-Industrial Complex
WolfPack86
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Defence Ministry unveils second draft of Defence Procurement Procedure
New procedures seek to promote purchase of indigenously developed weapons
The Ministry of Defence has put up the second draft of the Defence Procurement Procedure, 2020, a key protocol for the promotion of the indigenous defence industry.
The second draft of the DPP, dubbed the Defence Acquisition Procedure 2020, was uploaded on the MoD website for suggestions and comments from stakeholders and the general public.
The MoD says the first draft received over 10,000 pages of suggestions from stakeholders and industry, following which “specific interactions” were carried out with the stakeholders, both in person and via web conferences, in order to understand their precise concerns.
“The amended second draft has since been finalised by the review committee driven by tenets of defence reforms announced as part of the ‘Atmanirbhar Bharat Abhiyan’ and has been placed in the public domain,” the MoD said in a press release.
As per the new draft policy, procurement of goods and services—dubbed Capital Acquisition schemes—which will be broadly classified as ‘Buy’, ‘Buy and Make’, Leasing, ‘Make’, ‘Design and Development (D & D) and Strategic Partnership Model (SPM).
“A Simplified Capital Expenditure Procedure (SCEP) may also be followed for replenishment or repairs or refits of recurring nature of ‘In Service’ equipment/systems, which entail high cost and longer service life. Under the ‘Buy’ scheme procurements are categorised as ‘Buy (Indian - IDDM)’, ‘Buy (Indian)’, Buy (Global - Manufacture in India) and ‘Buy (Global)’. Under the ‘Buy and Make’ scheme, the procurements are categorised as ‘Buy and Make (Indian)’ and ‘Buy and Make’” the new DAP states.
The most preferred cateogory would be the 'Buy Indian - IDDM' (Indigenously Designed Developed and Manufactured), wherein at least 50 per cent is Indigenous Content (IC) on cost basis of the base contract price.
"Preference will be given to indigenous design, development and manufacturing of defence equipment...The MoD will notify a list of weapons/platforms banned for import, updated from time to time and SHQ will ensure that no weapon/platform figuring on the list is procured ex import. These equipment may, therefore, be procured under the Buy (Indian - IDDM), Buy (Indian), Buy and Make (Indian) (only if Buy quantities are zero) and Buy and Make (only if Buy quantities are zero) categories of procurement," the DAP states.
The first draft released in March introduced a new category in addition to ‘Buy’ and ‘Make’, that is ‘leasing’. This would include Lease (Global) and Lease (Indian).
While the DAP 2020 states that the maximum permitted in various categories would be up to 49 per cent, a planned increase of the permitted limits to 74 per cent FDI under the automatic route was announced by Finance Minister Nirmala Sitharaman in May. On July 13, PTI reported that the Department for Promotion of Industry and Internal Trade would approach the Union Cabinet to approve raising this limit.
Comments on the DAP 2020 are invited with the last date to submit them being August 10, 2020.
www.theweek.in
New procedures seek to promote purchase of indigenously developed weapons
The Ministry of Defence has put up the second draft of the Defence Procurement Procedure, 2020, a key protocol for the promotion of the indigenous defence industry.
The second draft of the DPP, dubbed the Defence Acquisition Procedure 2020, was uploaded on the MoD website for suggestions and comments from stakeholders and the general public.
The MoD says the first draft received over 10,000 pages of suggestions from stakeholders and industry, following which “specific interactions” were carried out with the stakeholders, both in person and via web conferences, in order to understand their precise concerns.
“The amended second draft has since been finalised by the review committee driven by tenets of defence reforms announced as part of the ‘Atmanirbhar Bharat Abhiyan’ and has been placed in the public domain,” the MoD said in a press release.
As per the new draft policy, procurement of goods and services—dubbed Capital Acquisition schemes—which will be broadly classified as ‘Buy’, ‘Buy and Make’, Leasing, ‘Make’, ‘Design and Development (D & D) and Strategic Partnership Model (SPM).
“A Simplified Capital Expenditure Procedure (SCEP) may also be followed for replenishment or repairs or refits of recurring nature of ‘In Service’ equipment/systems, which entail high cost and longer service life. Under the ‘Buy’ scheme procurements are categorised as ‘Buy (Indian - IDDM)’, ‘Buy (Indian)’, Buy (Global - Manufacture in India) and ‘Buy (Global)’. Under the ‘Buy and Make’ scheme, the procurements are categorised as ‘Buy and Make (Indian)’ and ‘Buy and Make’” the new DAP states.
The most preferred cateogory would be the 'Buy Indian - IDDM' (Indigenously Designed Developed and Manufactured), wherein at least 50 per cent is Indigenous Content (IC) on cost basis of the base contract price.
"Preference will be given to indigenous design, development and manufacturing of defence equipment...The MoD will notify a list of weapons/platforms banned for import, updated from time to time and SHQ will ensure that no weapon/platform figuring on the list is procured ex import. These equipment may, therefore, be procured under the Buy (Indian - IDDM), Buy (Indian), Buy and Make (Indian) (only if Buy quantities are zero) and Buy and Make (only if Buy quantities are zero) categories of procurement," the DAP states.
The first draft released in March introduced a new category in addition to ‘Buy’ and ‘Make’, that is ‘leasing’. This would include Lease (Global) and Lease (Indian).
While the DAP 2020 states that the maximum permitted in various categories would be up to 49 per cent, a planned increase of the permitted limits to 74 per cent FDI under the automatic route was announced by Finance Minister Nirmala Sitharaman in May. On July 13, PTI reported that the Department for Promotion of Industry and Internal Trade would approach the Union Cabinet to approve raising this limit.
Comments on the DAP 2020 are invited with the last date to submit them being August 10, 2020.
Defence Ministry unveils second draft of Defence Procurement Procedure
New procedures seek to promote purchase of indigenously developed weapons
WolfPack86
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India Set To Ban Import of Weapons That Can Be Produced Indigenously
In keeping with the Aatmanirbhar Bharat Abhiyan, the Defence Ministry proposes to ban the import of weapons that can be made in the country.
This suggestion has been made in the second draft of the Defence Procurement Policy (DPP) 2020, in line with the announcements made during the Aatmanirbhar Bharat presentations in March. The DPP 2020 will now be called Defence Acquisition Procedure (DAP) 2020, according to the draft put out by the Ministry.
The Defence Ministry will notify a list of weapons/platforms banned for import, which will be updated from time to time based on the requirements of the various Services, the draft said. The preparation of this negative list is on.
Besides, a budget head has been created by the Defence Ministry for ‘Make in India’ projects and a provision is being made for domestic capital procurement.
An industry body representative welcomed the move, saying it will mark a fundamental shift in India’s approach that has evolved to include acquisition of technology instead of just procurement of equipment. This is also being seen as a booster for MSMEs.
According to the 48th report of the Parliamentary Standing Committee on Defence, India’s major equipment imports include rockets, simulator and component repair facility for tanks from Russia; laser designation pods, radars, aircraft pods, radios, weapons for ‘Garud’ commandos and missiles from Israel; aircraft, helicopters, missiles, artillery guns and simulators from the US, and aircraft, ammunition, bimodular charge system and high zone modules of artillery guns from France.
Local Capabilities
India currently exports indigenously developed patrol vessels, helicopters, sonars and radars, avionics, radar warning receivers, small arms, small calibre ammunition, grenades, telecom equipment, coastal surveillance gear, simulators, bullet-proof jackets and body armour.
These will be the low hanging fruits for completely shutting the doors to imports.
www.indiandefensenews.in
In keeping with the Aatmanirbhar Bharat Abhiyan, the Defence Ministry proposes to ban the import of weapons that can be made in the country.
This suggestion has been made in the second draft of the Defence Procurement Policy (DPP) 2020, in line with the announcements made during the Aatmanirbhar Bharat presentations in March. The DPP 2020 will now be called Defence Acquisition Procedure (DAP) 2020, according to the draft put out by the Ministry.
The Defence Ministry will notify a list of weapons/platforms banned for import, which will be updated from time to time based on the requirements of the various Services, the draft said. The preparation of this negative list is on.
Besides, a budget head has been created by the Defence Ministry for ‘Make in India’ projects and a provision is being made for domestic capital procurement.
An industry body representative welcomed the move, saying it will mark a fundamental shift in India’s approach that has evolved to include acquisition of technology instead of just procurement of equipment. This is also being seen as a booster for MSMEs.
According to the 48th report of the Parliamentary Standing Committee on Defence, India’s major equipment imports include rockets, simulator and component repair facility for tanks from Russia; laser designation pods, radars, aircraft pods, radios, weapons for ‘Garud’ commandos and missiles from Israel; aircraft, helicopters, missiles, artillery guns and simulators from the US, and aircraft, ammunition, bimodular charge system and high zone modules of artillery guns from France.
Local Capabilities
India currently exports indigenously developed patrol vessels, helicopters, sonars and radars, avionics, radar warning receivers, small arms, small calibre ammunition, grenades, telecom equipment, coastal surveillance gear, simulators, bullet-proof jackets and body armour.
These will be the low hanging fruits for completely shutting the doors to imports.
India Set To Ban Import of Weapons That Can Be Produced Indigenously
Defence Ministry preparing negative list; new budget head soon for ‘Make in India’ projects In keeping with the Aatmanirbhar Bhara...
India Set To Ban Import of Weapons That Can Be Produced Indigenously
In keeping with the Aatmanirbhar Bharat Abhiyan, the Defence Ministry proposes to ban the import of weapons that can be made in the country.
This suggestion has been made in the second draft of the Defence Procurement Policy (DPP) 2020, in line with the announcements made during the Aatmanirbhar Bharat presentations in March. The DPP 2020 will now be called Defence Acquisition Procedure (DAP) 2020, according to the draft put out by the Ministry.
The Defence Ministry will notify a list of weapons/platforms banned for import, which will be updated from time to time based on the requirements of the various Services, the draft said. The preparation of this negative list is on.
Besides, a budget head has been created by the Defence Ministry for ‘Make in India’ projects and a provision is being made for domestic capital procurement.
An industry body representative welcomed the move, saying it will mark a fundamental shift in India’s approach that has evolved to include acquisition of technology instead of just procurement of equipment. This is also being seen as a booster for MSMEs.
According to the 48th report of the Parliamentary Standing Committee on Defence, India’s major equipment imports include rockets, simulator and component repair facility for tanks from Russia; laser designation pods, radars, aircraft pods, radios, weapons for ‘Garud’ commandos and missiles from Israel; aircraft, helicopters, missiles, artillery guns and simulators from the US, and aircraft, ammunition, bimodular charge system and high zone modules of artillery guns from France.
Local Capabilities
India currently exports indigenously developed patrol vessels, helicopters, sonars and radars, avionics, radar warning receivers, small arms, small calibre ammunition, grenades, telecom equipment, coastal surveillance gear, simulators, bullet-proof jackets and body armour.
These will be the low hanging fruits for completely shutting the doors to imports.
India Set To Ban Import of Weapons That Can Be Produced Indigenously
Defence Ministry preparing negative list; new budget head soon for ‘Make in India’ projects In keeping with the Aatmanirbhar Bhara...
WolfPack86
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Separate budget for Indian made defence items, negative import list: FM Nirmala Sitharaman
The government will make separate budgetary provisions for procuring only Indian made defence items and will generate a negative list of weapons that can be imported as part of larger reforms to boost the economy in the post Covid 19 world. Announcing a series of reforms for defence production, Finance Minister Nirmala Sitharaman said that the idea is to bring down India’s large weapons import bill and while certain high technology systems will still be procured from abroad, emphasis will be on procuring locally made products. The minister said that the long pending corporatisation of the Ordnance Factory Board (OFB) has been approved that will enable them to cut costs and overheads for more efficient operations. She also said that the OFB factories could be listed in the markets in the near future to bring in transparency in their operations. The corporatisation of OFBs has long being contested by staffers but the defence ministry has gone ahead with the process, with a detailed roadmap for implementation ready. Sitharaman emphasised that this does not mean a privatisation of the factories but is being done to improve performance. The government also announced that the Foreign Direct Investment (FD) limits are being enhanced from 49 percent to 74 percent under the automatic route, even though security clearances will still be required. It is not immediately clear how this much impact this could have, given that even 100 percent FDI is currently allowed in the Defence Sector on a case by case basis. On imports, the minister said that while essential weapons not produced here will be sourced from abroad, a negative list will be generated and notified for which all imports will be banned. This list will be generated by the Department of Military Affairs and will have year wise timelines to reduce import dependency. The government said that it would also move towards indigenisation of spare parts for foreign systems that are already in service. Indian industry will be encouraged to produce spare parts locally for the consumption of the armed forces. The minister also announced the government’s intention to speed up the procurement process by bringing in mechanisms to make realistic General Staff Qualitative Requirements (GSQRs). These are the performance criteria set up by the forces to procuring new systems. The minister said that there have been cases when unrealistic GSQRs have resulted in a lengthy search for weapons and often results in the selection of a single vendor that is against the rules. Besides the overhauling of testing and trial procedures, the defence ministry will also set up a Project Monitoring Unit to support contract management.
The government will make separate budgetary provisions for procuring only Indian made defence items and will generate a negative list of weapons that can be imported as part of larger reforms to boost the economy in the post Covid 19 world. Announcing a series of reforms for defence production, Finance Minister Nirmala Sitharaman said that the idea is to bring down India’s large weapons import bill and while certain high technology systems will still be procured from abroad, emphasis will be on procuring locally made products. The minister said that the long pending corporatisation of the Ordnance Factory Board (OFB) has been approved that will enable them to cut costs and overheads for more efficient operations. She also said that the OFB factories could be listed in the markets in the near future to bring in transparency in their operations. The corporatisation of OFBs has long being contested by staffers but the defence ministry has gone ahead with the process, with a detailed roadmap for implementation ready. Sitharaman emphasised that this does not mean a privatisation of the factories but is being done to improve performance. The government also announced that the Foreign Direct Investment (FD) limits are being enhanced from 49 percent to 74 percent under the automatic route, even though security clearances will still be required. It is not immediately clear how this much impact this could have, given that even 100 percent FDI is currently allowed in the Defence Sector on a case by case basis. On imports, the minister said that while essential weapons not produced here will be sourced from abroad, a negative list will be generated and notified for which all imports will be banned. This list will be generated by the Department of Military Affairs and will have year wise timelines to reduce import dependency. The government said that it would also move towards indigenisation of spare parts for foreign systems that are already in service. Indian industry will be encouraged to produce spare parts locally for the consumption of the armed forces. The minister also announced the government’s intention to speed up the procurement process by bringing in mechanisms to make realistic General Staff Qualitative Requirements (GSQRs). These are the performance criteria set up by the forces to procuring new systems. The minister said that there have been cases when unrealistic GSQRs have resulted in a lengthy search for weapons and often results in the selection of a single vendor that is against the rules. Besides the overhauling of testing and trial procedures, the defence ministry will also set up a Project Monitoring Unit to support contract management.
Bhadra
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Sir, when the requirement is of about 1580 towed pieces and there is a crunch of funds - the price has to the major factor except for a few guns in ULH category.
The government has already placed artillery guns in a negative list. That means the domestic players in artillery guns that is - OFB, TATA Power SED, Kalyani and L&T have emerged as the main players. All are ready with their 155/52 guns.
However the entire problem is a complete lost of trust on OFB as also DRDO . The Armed Forces has lost trust on those MoD organizations and trust is a major consumer choice factor. MoD has invested very heavily in OFB towards 155 guns specially the carriage and barrels. Hence they should be able to offerthe least cost solutions.
But look at the first order of 114 guns. Even after two years, they have not gone a figure of six guns.. They do not seem to be interested.. that is sure shot way to sabotage Indian Army FARP..
Look at DRDO. In place of 12 -13 ton guns they have made a beast of 18 tons in a bid to prove their technological mettle and fuc*d the entire schedule. That gun can not be taken on mountain roads..
These guys in place of solving problems create the problems..
WolfPack86
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Govt comes out with draft defence production policy to boost indigenous weapons & exports
| Languishing in the strategically-vulnerable position of being among the top three arms importers in the world for years, India now wants to build a major defence industrial base (DIB) for self-reliance in weapon systems and exports to other countries within the next five years. The defence ministry on Monday released a draft defence production and export promotion policy (DPEPP 2020), with the stated objective of achieving a turnover of Rs 1,75,000 Crores ($ 25 billion), including export of Rs 35,000 Crore ($ 5 billion) in aerospace and defence goods and services by 2025. A similar draft policy in 2018 had set out similar goals, but nothing much came out of it. The estimated size of the existing Indian defence industry is around Rs 80,000 crore, with the public sector’s contribution being almost 80% of it. There is no getting away from the fact that India desperately needs to bolster its fledgling DIB by getting the private sector to jump into defence production in a major way. The public sector, which includes DRDO and its 50 labs, four defence shipyards, five defence PSUs and 41 ordnance factories, also concurrently needs to be drastically overhauled to deliver cutting-edge weapon systems without huge time and cost overruns. The ongoing military confrontation with China has only served to further drive home this point with the 15-lakh strong armed forces scrambling to import a wide array of weapon systems, from drones and assault rifles to missiles and ammunition, to maintain operational readiness along the northern borders. But whether the stated goals of the draft DPEPP 2020, which is envisaged as an “overarching document to provide a focused, structured and significant thrust to defence production capabilities”, can be achieved in five years remain to be seen. The draft DPEPP says the aim is to reduce dependence on imports and take forward "Make in India" initiatives through domestic design and development, as also promote export of defence products as part of the overall ‘Atmanirbhar Bharat’ policy. DRDO, for instance, will set up missions in select fields in consultation with the armed forces and other scientific and industrial establishments to develop futuristic weapon systems. These range from hypersonic, ballistic and cruise missiles to armoured vehicles, gas turbine engines, submarines, fifth-generation fighter jets, transport aircraft, robotics and airborne sensors. The draft policy brings out multiple strategies with the focus areas being procurement reforms; indigenization and support to MSMEs/Startups; optimization of resource allocation; investment promotion, FDI and ease of doing business; innovation and R&D; DPSUs and ordnance factories; quality assurance and testing infrastructure; and export promotion. The policy comes after the government in May made it clear the armed forces will have to shed their penchant for exorbitant foreign weapon systems unless they can be made in India through joint ventures with global armament and aviation majors. The government had also announced the import of certain weapons would be banned through a progressively-expanding negative list, while the FDI limit would be hiked to 74% from the existing 49% in the defence production sector through the automatic clearance route. With an annual defence budget of about $70 billion, India is behind only the US ($732 billion) and China ($261 billion) in terms of military expenditure around the globe. It is also the second-largest buyer of foreign weaponry after Saudi Arabia in the world, accounting for 9.2% of the total global arms imports during 2015-2019, as was earlier reported by TOI. |
Govt comes out with draft defence production policy to boost indigenous weapons & exports
Languishing in the strategically-vulnerable position of being among the top three arms importers in the world for years, India now wants to build a major defence industrial base (DIB) for self-reliance in weapon systems and exports to other countries within the next five years. The defence...
www.defencenews.in
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Army asks private firms to meet its ammunition requirements for next 10 years
The Army has asked private industries to meet the annual requirement for different types of ammunition, including rifle bullets and artillery rockets, for the next 10 years. The move, however, comes with a rider that interested manufacturers will not receive any financial support for their venture.
In a series of requests for information (RFI) issued on Tuesday, the Master General of Ordnance’s Branch at Army Headquarters has sought to identify prospective manufacturers for participating in the indigenous manufacture of ammunition.
The types of ammunition to be manufactured include rockets for the 300mm SMERCH and 122 mm BM21 systems, 90 mm shoulder-fired rocket launcher, 155 mm, 40 mm and 20 mm rounds for artillery and air defence guns as well as 7.62 mm and 9 mm rounds for different rifles and carbine.
The annual requirement projected to be sourced from the private sector varies from a few dozen rounds for systems like SMERCH rockets to about 70 lakh 7.62 mm bullets.
While inviting private firms for manufacturing ammunition, the Army has also made it clear that the government will neither provide any special concessions nor any funding or investment to facilitate setting up requisite infrastructure by participating firms.
The manufacturers will also be responsible to obtain necessary clearances under the Arms Act from the Ministry of Home Affairs, manufacturing licenses from the Department of Industrial Policy and Promotion as well as any other permissions necessary for the manufacture of ammunition in India.
Each type of ammunition has various variants or type of warhead to be used for different purposes. The Russian-origin SMERCH rockets, for example, can be equipped with cluster warhead, fuel-air explosive warhead and a high explosive fragmentation warhead. Similarly, the 7.62 mm rounds are for use in assault rifles and different types of sniper rifles.
The army has approached the private industry earlier for indigenous manufacture of ammunition. While some private manufacturers are supplying certain types of ammunition, the bulk of the indigenous supply comes from the state-run Ordnance Factory Board. A large quantity, especially that of critical and specialized ammunition, continue to be imported.
The shift towards the private industry to meet defence requirements is part of the government’s efforts to facilitate the development of indigenous capacity, reduce import dependence and with the long-term objective of building capacity within the industry as a robust alternative source of ammunition. The government has approved manufacturing of eight selected ammunition for Indian Army by the Indian Industry.
In 2017, the government had initially identified eight types of ammunition that could be produced by the private sector. The armed forces are also identifying weapons and equipment that will be placed on the ‘negative list’ to curtail their imports and switch their procurement to indigenous sources. Later, the government also allowed domestic private companies to tie up with foreign firms that had been banned for corrupt practices to manufacture ammunition.
The Army has asked private industries to meet the annual requirement for different types of ammunition, including rifle bullets and artillery rockets, for the next 10 years. The move, however, comes with a rider that interested manufacturers will not receive any financial support for their venture.
In a series of requests for information (RFI) issued on Tuesday, the Master General of Ordnance’s Branch at Army Headquarters has sought to identify prospective manufacturers for participating in the indigenous manufacture of ammunition.
The types of ammunition to be manufactured include rockets for the 300mm SMERCH and 122 mm BM21 systems, 90 mm shoulder-fired rocket launcher, 155 mm, 40 mm and 20 mm rounds for artillery and air defence guns as well as 7.62 mm and 9 mm rounds for different rifles and carbine.
The annual requirement projected to be sourced from the private sector varies from a few dozen rounds for systems like SMERCH rockets to about 70 lakh 7.62 mm bullets.
While inviting private firms for manufacturing ammunition, the Army has also made it clear that the government will neither provide any special concessions nor any funding or investment to facilitate setting up requisite infrastructure by participating firms.
The manufacturers will also be responsible to obtain necessary clearances under the Arms Act from the Ministry of Home Affairs, manufacturing licenses from the Department of Industrial Policy and Promotion as well as any other permissions necessary for the manufacture of ammunition in India.
Each type of ammunition has various variants or type of warhead to be used for different purposes. The Russian-origin SMERCH rockets, for example, can be equipped with cluster warhead, fuel-air explosive warhead and a high explosive fragmentation warhead. Similarly, the 7.62 mm rounds are for use in assault rifles and different types of sniper rifles.
The army has approached the private industry earlier for indigenous manufacture of ammunition. While some private manufacturers are supplying certain types of ammunition, the bulk of the indigenous supply comes from the state-run Ordnance Factory Board. A large quantity, especially that of critical and specialized ammunition, continue to be imported.
The shift towards the private industry to meet defence requirements is part of the government’s efforts to facilitate the development of indigenous capacity, reduce import dependence and with the long-term objective of building capacity within the industry as a robust alternative source of ammunition. The government has approved manufacturing of eight selected ammunition for Indian Army by the Indian Industry.
In 2017, the government had initially identified eight types of ammunition that could be produced by the private sector. The armed forces are also identifying weapons and equipment that will be placed on the ‘negative list’ to curtail their imports and switch their procurement to indigenous sources. Later, the government also allowed domestic private companies to tie up with foreign firms that had been banned for corrupt practices to manufacture ammunition.
Army asks private firms to meet its ammunition requirements for next 10 years
The Army has asked private industries to meet the annual requirement for different types of ammunition, including rifle bullets and artillery rockets, for the next 10 years. The move, however, comes with a rider that interested manufacturers will not receive any financial support for their...
www.defencenews.in
WolfPack86
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MOD TO PLACE CONTRACTS WORTH RS 4 LAKH CRORE TO BOOST SELF-RELIANCE
Union defence minister Rajnath Singh announced on Sunday that the defence ministry will embargo 101 items to give a boost to indigenous defence production in a bid to strengthen the Atmanirbhar Bharat initiative taken by the PM Narendra Modi.
Singh said that over the 6-7 years the Indian defence industry will get contracts worth almost four lakh crore. The current contract of items that were taken by the tri-services between 2015 and 2020 from the embargo list cost Rs 3.5 lakh crore.
The union defence minister said that the decision to achieve self-reliance in the defence manufacturing sector and said the announcement was made early to allow time for the armed forces to acclimatise and also to provide time to domestic industries for preparation.
• Rajnath Singh said that the decision to embargo 101 items will give a big boost to India’s self-reliant initiatives in the defence sector. Singh said that this presents an opportunity for the nation’s defence industry to manufacture the items in the embargoed list by using their own design or by adopting the technologies developed by the DRDO.
• Rajnath Singh highlighted that the domestic defence industry can expect defence contracts worth Rs 4 lakh crores to be given to them within the next 6-7 years.
• Union minister says that the list of embargoed items was made after holding discussions with several stakeholders which included public & private industry members along with the armed forces. The exercise was conducted to assess the current capability and ability to handle demand in the future.
• The list of embargoed items include artillery guns, LCH, sonar weapons system, high-tech weapons systems, corvettes, assault rifles, transport aircrafts and armoured fighting vehicles. Check out the full list here.
• The office of the defence minister said that the measures will be implemented within 2020 to 2024. The announcement was made early to apprise the Indian defence industry of the need and requirements for India’s armed forces.
• The defence ministry also said that the Indian Navy and Air Force will receive items worth almost Rs 1,30,000 crore from the list of items and the Navy shall receive items worth almost Rs 1,40,000 crore. The Army is also expected to import wheeled 200 Armoured Fighting Vehicle worth Rs 5,000 crore each whose embargo date is December 2021.
• The defence minister also said that the ministry will hand hold the defence industry and co-ordinate a mechanism to make sure that timelines are met for domestic production of the items which are on the embargoed list.
• Singh said the identification of further items which could be added to the embargoed list shall continue.
• MoD says a capital procurement budget has been announced for the initiative. The capital procurement process is bifurcated between domestic and foreign capital procurement routes. A separate budget head has been created for domestic capital procurement in the current financial year with an outlay of Rs 52,000 crore.
www.indiandefensenews.in
Union defence minister Rajnath Singh announced on Sunday that the defence ministry will embargo 101 items to give a boost to indigenous defence production in a bid to strengthen the Atmanirbhar Bharat initiative taken by the PM Narendra Modi.
Singh said that over the 6-7 years the Indian defence industry will get contracts worth almost four lakh crore. The current contract of items that were taken by the tri-services between 2015 and 2020 from the embargo list cost Rs 3.5 lakh crore.
The union defence minister said that the decision to achieve self-reliance in the defence manufacturing sector and said the announcement was made early to allow time for the armed forces to acclimatise and also to provide time to domestic industries for preparation.
• Rajnath Singh said that the decision to embargo 101 items will give a big boost to India’s self-reliant initiatives in the defence sector. Singh said that this presents an opportunity for the nation’s defence industry to manufacture the items in the embargoed list by using their own design or by adopting the technologies developed by the DRDO.
• Rajnath Singh highlighted that the domestic defence industry can expect defence contracts worth Rs 4 lakh crores to be given to them within the next 6-7 years.
• Union minister says that the list of embargoed items was made after holding discussions with several stakeholders which included public & private industry members along with the armed forces. The exercise was conducted to assess the current capability and ability to handle demand in the future.
• The list of embargoed items include artillery guns, LCH, sonar weapons system, high-tech weapons systems, corvettes, assault rifles, transport aircrafts and armoured fighting vehicles. Check out the full list here.
• The office of the defence minister said that the measures will be implemented within 2020 to 2024. The announcement was made early to apprise the Indian defence industry of the need and requirements for India’s armed forces.
• The defence ministry also said that the Indian Navy and Air Force will receive items worth almost Rs 1,30,000 crore from the list of items and the Navy shall receive items worth almost Rs 1,40,000 crore. The Army is also expected to import wheeled 200 Armoured Fighting Vehicle worth Rs 5,000 crore each whose embargo date is December 2021.
• The defence minister also said that the ministry will hand hold the defence industry and co-ordinate a mechanism to make sure that timelines are met for domestic production of the items which are on the embargoed list.
• Singh said the identification of further items which could be added to the embargoed list shall continue.
• MoD says a capital procurement budget has been announced for the initiative. The capital procurement process is bifurcated between domestic and foreign capital procurement routes. A separate budget head has been created for domestic capital procurement in the current financial year with an outlay of Rs 52,000 crore.
MoD To Place Contracts Worth Rs 4 Lakh Crore To Boost Self-Reliance
Bharat Forge's Bharat-52 artillery gun The Defence Ministry’s official Twitter handle announced that union defence minister Singh wi...
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Defence reforms to steer India towards self reliance, boost indigenous production: Industry
| India Inc on Sunday said the Centre's decision to impose restrictions on import of 101 weapons and military platforms, and creation of a separate budget for domestic capital procurement in the current financial year is a ''path-breaking'' reform towards becoming self-reliant and will boost indigenous defence manufacturing. In a major reform initiative to boost the domestic defence industry, Defence Minister Rajnath Singh on Sunday announced restrictions on import of 101 weapons and military platforms, including artillery guns, assault rifles and transport aircraft. "The Ministry of Defence is now ready for a big push to #AatmanirbharBharat initiative," Singh said on Twitter while making the announcement. He said the Ministry of Defence (MoD) has prepared a list of 101 items for which the embargo on imports is planned to be progressively implemented between 2020 and 2024. "MoD has also bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes. A separate budget head has been created with an outlay of nearly Rs 52,000 crore for domestic capital procurement in the current financial year," the Defence Minister tweeted. Welcoming the initiative, CII Director General Chandrajit Banerjee said the defence minister's announcement of negative import list of defence systems and platforms marks the launch of a new glide path for 'Aatmanirbhar Bharat'. "Announcement of Rs 52,000 crore for domestic capital procurement coupled with the list of 101 items for import embargo gives a tremendous boost to Aatmanirbhar Bharat and indigenous defence manufacturing," he added. Godrej & Boyce, which provides solutions for aerospace and defence, said the government's decision will provide a much-needed fillip to Indian defence manufacturing companies. "As a long-term partner with deep partnerships with key strategic organizations like DRDO and ISRO for over 30 years, we look forward to developing a domestic eco-system to help boost India's domestic defence manufacturing capabilities in India and support the vision of self-reliance,” said Godrej & Boyce CMD Jamshyd N Godrej. The CII termed the announcements as "path breaking" and stated, "Today is a historic day for Indian industry in the defence and aerospace. Can assure the Defence Minister that the Indian defence and aerospace industry will rise to the challenge and opportunities therein." S P Shukla, Chair, FICCI Defence Committee, said the move is a great leap forward towards building a self-reliant India. "FICCI applauds the announcement of 101 #defence items for embargo on imports. A great leap forward for #AtmanirbharBharat in RakshaUtpadan," Shukla tweeted. "Great move to earmark Rs 52k cr for domestic capital procurement. It fulfills a request by FICCI Defence Committee to provide long-term visibility on defence procurement plans. Industry can now plan its capex & production capacity," he said in another tweet. Assocham Secretary General Deepak Sood said with India being amongst the largest importers of weapons, ammunition and high technology systems for the armed forces, self reliance in defence production is the most desired policy initiative. "Increased capabilities in defence production not only offer a great economic opportunity for the domestic industry, but also give an immense strategic advantage to the country in a fast evolving geo-political situation," he added. The list of 101 embargoed items comprises some high-technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars and many other items. Singh said all necessary steps would be taken to ensure that timelines for domestic production of equipment identified under the negative list for import are met, adding the measures will include a co-ordinated mechanism for hand-holding of the industry by the defence services. "The embargo on imports is planned to be progressively implemented between 2020 and 2024. The aim behind promulgation of the list is to apprise the Indian defence industry about the anticipated requirements of the armed forces so that they are better prepared to realise the goal of indigenisation," he said. |
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Orders for 5 More desi Equipment
