Make in India - Domestic Defense Manufacturing

WolfPack86

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Govt to focus on reducing use of imported components in indigenously developed platforms
The defence ministry will focus on significantly bringing down percentage of imported components in indigenously developed military platforms and weapons systems like light combat aircraft Tejas and Akash missiles, officials said on Monday. The Indian armed forces have been using a plethora of indigenously developed platforms and weapons which have various imported components and electronic systems.

Defence Minister Rajnath Singh on Sunday announced that India will stop import of 101 military systems and weapons like transport aircraft, light combat helicopters, conventional submarines and cruise missiles by 2024 to promote India's domestic defence industry.

The negative list featured many products which have either been developed by India or are in the development stage.


"Besides aiming to produce key platforms and weapons in India, the government will also focus on bringing down the percentage of imported components in indigenously developed systems," said an official.

On the inclusion of light combat aircraft (LCA Mark 1A) and a number of missile system which are manufactured in India in the negative list, the defence ministry said it was done to ensure that the armed forces do not go for importing similar systems.

The Tejas is a light combat aircraft produced by state-run aerospace behemoth Hindustan Aeronautics Limited NSE -1.95 %. The aircraft has some imported components.

"It is also highlighted that for a product to be considered as an indigenous system, the percentage of indigenous content has to meet minimum laid down specifications," the defence ministry said in a clarification.

"Hence, manufacturers are also required to ensure indigenisation and decrease import content to the permissible limits," it said.

It further said: "It is clarified that the reason for specifying systems presently made in India with part-import content is to ban procurement of such equipment or items which carry similar qualitative requirements but are often contracted under differing nomenclatures."

The decision to prune the import list of weapons systems under a year-wise schedule was first announced by Finance Minister Nirmala Sitharaman in May while rolling out reform measures for the defence manufacturing sector that included increasing the FDI limit from 49 per cent to 74 per cent under the automatic route.

The defence ministry has set a goal of a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years that included an export target of USD 5 billion (Rs 35,000 crore) worth of military hardware.
 

A chauhan

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Is this true ? -

 

Haldilal

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Yup, Adanis have been making such moves in several defence, aerospace aeras. From small arms to UAVs to fighter jets, they have big ambitions.


Only time will tell how many Defence Ventures of the adani will succeed.
 

WolfPack86

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Modi's push for Atmanirbhar defence | India Today Insight
Prime Minister Narendra Modi today emphasised his government’s commitments to opening up the defence sector to reform during a webinar ‘Atmanirbhar Bharat-Defence Outreach’ organised by FICCI, the Department of Military Affairs (DMA) and the ministry of defence. “Our commitment towards self-sufficiency in defence production is not limited to talks or paperbound proposals, we have taken several steps to realise this,” said the PM.

The government has recently begun one of the most sweeping changes in the defence sector under its atmanirbhar (self-reliant) policy—the reboot of its failed Make in India defence programme from Modi’s first term is now being pushed directly by the Prime Minister’s Office. The defence ministry has, in the past few weeks, unveiled a series of reforms—from a decision to corporatise 41 government-owned ordnance factories, to getting the ministry to release a negative list of 101 items banned for import, and getting the DRDO to identify 108 products for which it would partner with indigenous industry to co-develop. The defence ministry has assured the Indian defence industry of orders worth Rs 400,000 crore in the next five to seven years. BJP-ruled states like Uttar Pradesh are pushing for defence corridors to attract defence firms to set up manufacturing facilities.

Modi’s unscheduled appearance at the webinar attended by key defence ministry, public sector and private industry representatives left no doubt in anyone’s mind as to the seriousness with which the government was pursuing defence reforms, or as to who was driving it. Participants at the webinar included defence minister Rajnath Singh, chief of defence staff General Bipin Rawat, secretary (defence production) Raj Kumar and the three service chiefs.

The most significant statement was by Raj Kumar when he said that “Indian vendor could mean a foreign subsidiary, joint ventures and fully-owned Indian companies.” This is being seen as an extension of the government’s decision in May this year to allow foreign investors to own up to 74 per cent stake in an Indian defence firm, up from the earlier 49 per cent.

The CEO of a private sector firm has called the move to consider foreign companies as Indian vendors a ‘most regressive step in Indian defence industry’, since it means foreign firms will now be able to enter and compete with Indian firms in categories like ‘buy Indian’ and ‘Indian designed developed and manufactured (IDDM)’, which were earlier reserved only for Indian companies. The executive says: “There is no incentive for Indian companies to do anything but partner with a foreign company since the capital that goes in will anyway pale in comparison to what the foreign companies have pumped into R&D over decades.”

A senior government official, who wished to not be named, says the policy would mean that foreign companies would set up their subsidiaries in India to import the equipment in sub sections and integrate them here to deliver to the defence ministry. “In times of war, these subsidiaries will supply only when their countries allow them to do so. This will be a disaster for Atmanirbhar Bharat.”

Rahul Chaudhry, chair, FICCI Homeland Security Committee, terms the arguments against bringing foreign companies in India as the ‘Bombay Club arguments of 1992’ (the argument by Indian industrialists at the dawn of India’s liberalisation against liberalisation and the entry of foreign firms).“What is required is value addition,” says Chaudhry. “Value addition is equal to jobs and to intellectual property. It is absolutely clear from the Make in India general financial rules (GFR) that the government has begun to talk about value additions in India and not about which company or equity holder is doing it.”
 

WolfPack86

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Major deal for private sector: Defence Ministry inks Rs 5,000 cr project with L&T, Tata

In a major boost for the private industry, the defence ministry is inking an estimated Rs 5,000 crore deal to manufacture indigenous Pinaka multi barrel rocket launchers for the Army that is likely to generate several hundred jobs in the coming months. The contract, which has been in the making since 2017, will go to private sector companies Larsen & Toubro and Tata Aerospace and Defence, with a significant portion of work also falling into public sector unit BEML, which supplies the trucks for the rocket launchers. The Pinaka program has been a home grown success story, with two regiments already in service and technology transfer successfully executed by DRDO to the private sector for manufacturing the systems as well as ammunition. Out of the six new regiments, L&T has been awarded the contract to manufacture four while the balance two will be made by Tata Aerospace and Defence. This would be one of the largest orders placed on the private sector in India from the Army. ET had reported in May that the Pinaka program had been identified to be fast tracked, both to boost the private industry during the coronavirus crisis and the utilise money saved from delays in delivery of weapon systems currently being imported. As reported by ET, the first ever rockets fully manufactured by the private sector have also been successfully test fired by the Army this month. The Pinaka rockets were tested at a firing range in Pokharan and achieved the desired results by accurately hitting targets. The rockets have been manufactured by Economic Explosives Limited (EEL) and are the first munition of its kind made by the private sector in India. They are also a success story for DRDO that has been engaging with the private sector to transfer manufacturing technology for home developed systems. DRDO has also successfully tested an extended range guided Pinaka rocket that can hit targets at a distance of 75 km, a significant boost from the current range of 40 km. The Pinaka was developed by DRDO to replace imports from Russia for the BM 21 Grad multi barrel rocket launchers.
 

WolfPack86

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To take on China, boost local defence capabilities

India and China are currently engaged in a low-intensity opaque war (LIOW), and renewed tension has been reported in recent days along the already troubled Line of Actual Control (LAC). These developments have taken place at the southern bank of the Pangong Tso and New Delhi has charged Beijing with attempting a second “provocative action” on August 31, even as talks were being held at the local military commanders’ level.

Pre-emptive action by Indian troops has evidently foiled any further Chinese intrusions. China has displayed lack of sincerity and engaged in deception. The steady build-up of troops and related inventory by both sides is indicative of heightened military tension, with a probability of skirmishes leading to unintended escalation, and a long winter vigil. For India, the monitoring and safeguarding of the claim line along LAC with China will demand a higher level of sustained military presence.

Against this backdrop, Prime Minister (PM) Narendra Modi’s address, at the end of August, on defence manufacturing acquires critical salience, particularly for the candid manner in which the inadequacies and structural flaws of equipping India’s military machine were highlighted. He noted, “It is not hidden from anybody that India has been one of the main defence importers in the world for the last several years. When India became Independent, it had huge capabilities in defence production. There was a well-established 100-year-old ecosystem in defence production in India. Not many countries had the resources and potential of India. But it is unfortunate that not much attention was paid on this issue for several decades. No serious attempts were made. But, the situation is changing now”.


The PM’s statement merits scrutiny in relation to how India will manage the China factor in the long-term from a military perspective. He was right when he referred to a 100-year-old ecosystem since India’s first gunpowder factor was set up in Ishapur (Bengal) in 1787 and a modern rifle factory was established by the British in 1904. Slowly, a defence production base was created in India, but only to serve the imperial interest. During World War II, the Indian contribution was considerable by way of war goods — but they were at the lower end of the spectrum and included ammunition, clothing, footwear, animals, among other items.

When the British left India in 1947, this production infrastructure was denuded of its critical human resource and funding; further, it was irrevocably fragmented due to Partition. Lethal stores were destroyed and platforms such as bomber aircraft damaged and rendered non-operational. So the PM’s suggestion that India inherited “huge capabilities” apropos defence production at the time of Independence is not accurate.

But the PM was spot on that while India had the potential to build a defence industrial base, it was “unfortunate” that no serious attention was paid to this strand of national capability for decades. The onus for this omission lies with those entrusted with the higher defence management. There has been no dearth of reports and recommendations about how to fix the problem but the under performance of the Indian defence manufacturing ecosystem has been overwhelming.

That India is among the world’s largest importers of arms is a shameful reality, and it is to the PM’s credit that he had acknowledged this fact in his first term (2014) and had sought to enhance the indigenous production of military inventory. However, the empirical truth is that, six years later, the 100-year-old “ecosystem” that the PM referred to has not enabled or nurtured any significant progress in the indigenous design and manufacture of military inventory. The most stark indicator is that India is still floundering with the basic personal weapon for the soldier — the Kalashnikov equivalent — and is dependent on Russia for this item.

Modi 2.0 has another four years to pick up the military equipment gauntlet, and having a full-time defence minister in the seasoned Rajnath Singh is positive. India has to invest in design and research and development in a far more sustained and effective manner, and not succumb to short-term measures such as urgent imports when there is a crisis.

This happened in Kargil 1999, and most recently, post-Galwan. The PM has outlined India’s indigenous defence manufacturing challenge with commendable candour. The challenge is to irrigate the ecosystem in a manner that will enable India to acquire the appropriate level of military capability and confidence (atma nirbharata) to deal with the China challenge along the LAC and beyond.

To start with, how about focusing on producing an Indian-designed and manufactured personal weapon that will compare with the best in the world by August 2023? That will be the best symbolic gift for India’s national security, as the nation completes its 75th independence celebrations.

 

WolfPack86

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India, Russia to ink defence logistics support pact

India and Russia are expected to ink a mutual defence logistics support agreement soon with each other during the annual bilateral summit between the two countries that will take place in October or November this year, Russian Deputy Chief of Mission (DCM) Roman Babushkin said on Tuesday, adding that Russia has decided not to sell weapons and defence equipment to Pakistan because of Indian “sensitivities and requests”. The senior Russian diplomat also said Russian supply of the S-400 missile defence system to India is “on schedule” but added that in case of India asking for the expediting (fast-tracking) of this, the Russian side “will do its best”. India already has similar defence logistics support pacts with the United States, France, Singapore and Australia. New Delhi is expected to ink such a pact soon with Japan as well apart from Russia which is India’s time-tested friend and key defence supplier. Such defence logistics support pacts ensure that either country’s defence platforms including ships and aircraft being able to use the other’s bases for repair and replenishment of supplies including fuel and spare parts. Russian President Vladimir Putin is expected to visit India in October or November for the Summit but there is also a possibility that it could take place in a Virtual format keeping in view the Covid Pandemic situation. “We are hopeful of a face to face Summit. But we should keep in mind the (Covid) Pandemic situation. We will adjust to the schedule (that is eventually decided),”Mr. Babushkin said. While emphasising strategic cooperation with India including in the Indian Ocean region, Russia however remains uncomfortable with the four-nation “Quadrilateral” arrangement to maintain a “rules-based order in the Indo-Pacific region” of which India is a part along with the US, Japan and Australia. The Russian DCM said Russia supports any inclusive effort for cooperation in the maritime region but opposes any formation of military blocs. He said any inclusive arrangement on cooperation should be based on international laws, indicating—in a veiled criticism of long-time rival the United States—that Moscow feels the term “rules-based order” is to justify unilateral sanctions on countries and interfere in other countries’ domestic affairs. But the senior Russian diplomat made it clear that Moscow is confident that New Delhi’s ties with other nations would never be at the expense of its ties with Russia and expressed Russia’s confidence in its “Indian friends”. Detailing the extent of defence cooperation with India, the Russian DCM said that ongoing defence cooperation projects including for MiG-29 and Sukhoi-30 fighter aircraft were being implemented”. He said the defence project between the two countries on production of AK-203 assault rifles (at Amethi in Uttar Pradesh) would be not merely a licensed production but also a “full-fledged transfer of technology”. He also described the Indo-Russian BrahMos supersonic cruise missile as an “exclusive weapon”.
 

WolfPack86

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Adani Defence picks up 51% stake in small arms manufacturer

Adani Land Defence Systems and Technologies Ltd, a step down subsidiary of Adani Enterprises, has bought 51% stake in the small arms business of Gwalior-based PLR Systems in an all-cash transaction. PLR Systems produces machine guns, carbines and other weapons for domestic and export markets. It was incorporated in 2013 and supplies indigenously manufactured defence equipment to armed forces. Israeli defence manufacturer IWI holds 49% stake in the company. The deal will help the Adani group company acquire capabilities ranging from unmanned aerial vehicles (UAVs) to helicopter systems and major aero structures. In a stock exchange filing, Adani Land Defence Systems and Technologies Ltd said it has acquired 51% of shares of PLR Systems Private Ltd from Fouraces Systems India Private Ltd on Thur. The company said PLR will produce “indigenous equipment to the 1.2 million army personnel and an equal number of para-military forces and state police forces and shall help achieve self-reliance aligned to the Make in India and Atma-Nirbhar Bharat initiative.” Adani Defence said it has already received approval from the Ministry of Home Affairs for the acquisition. The Economic Times had reported in January that PLR Systems is poised to pick up major orders from the defence ministry, with final discussions underway for 16,400 light machine guns for which IWI is the lead contender while a larger competition for 41,000 guns is also underway. Besides, paramilitary forces and state police, too, have requirements for these small arms. In February, Adani Elbit Advanced Systems India Ltd, a joint venture between Adani Defence & Aerospace and Elbit Systems, Israel set up the first private UAV manufacturing complex at Adani Aerospace Park in Hyderabad to indigenize unmanned aerial platforms. The only Hermes 900 production facility outside Israel which inaugurated in December 2018, it has started exporting Hermes900 Unmanned Aerial Platform to international customers. Adani Defence & Aerospace and Elbit have agreed to set up a design and development center focusing on co-developing defence technologies aligned to the global requirements.
 

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Haldilal

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Ya'll Nibbiars MoD cancelled the UAE contract for a domestic alternative and Bhimo deal is cancelled rumors are the Russians are offering their Pantasirs most advanced varient with a ToT for complete Make in India.
 

Assassin 2.0

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Govt plans to scrap 2 defence deals under foreign procurement, could go ‘atma nirbhar’ way
The projects for procuring carbines and self-propelled air defence system had been in the works for long, but were stuck due to price & technical requirements, among others.

SNEHESH ALEX PHILIP
15 September, 2020

Ministry of Defence building
File image of the Ministry of Defence building (representational image) | Commons

New Delhi: The Defence Ministry is learnt to have decided to scrap two deals that were being pursued under foreign procurement — carbines from UAE and Self-Propelled Air Defence Gun Missile System (SPAD-GMS) from South Korea — and route them through the ‘Make in India’ initiative.

Sources in the defence and security establishment told ThePrint that at a special meeting, attended by top officials, a decision was made to indigenously build the two projects worth nearly USD 4 billion.


The deal for the new close quarter battle (CQB) carbines, a long arm firearm, had been in the works since 2017.

A UAE firm, Caracal International, finished as ‘L-1’ or the lowest bidder in September 2018 for a contract that was supposed to be fast-tracked.

However, it ran into rough weather over pricing and representation by the Defence Research and Development Organisation, and domestic small arms industry, who wanted to have a shot at the deal.


The carbines are meant to replace the outdated and ageing 9 mm British Sterling 1A1 sub-machine guns that are currently in service.

The Army had in 2017 decided to opt for Fast Track Procurement (FTP) of 93,895 new carbines against an overall demand of 3.5 lakh such weapons.


Sources now indicated that the FTP numbers could actually be added to the overall demand and a tender could be issued next year.

Efforts to acquire the CQB carbines since 2008 have not materialised as the carbines of state-owned DRDO and Ordnance Factory Board had failed to meet the Army requirements.

Also read: Indian Army could get carbines from UAE soon, deal in final stages of confirmation

The SPAD-GMS project
The SPAD-GMS project is another project that has run into rough weather. This was meant to replace the 1,360 obsolete Bofors L 70 40 mm single barrel and Soviet-era ZU-23-2 towed 23 mm twin-barrel weapon systems.

The tender for this was floated in 2013 and the competition was primarily between Russia and South Korea.

Russia had fielded two weapon systems — the upgraded Tunguska system fielded by arms company Almaz Antey and Pantsir by a company called KBP Tula — but failed to pass the technical rounds.

South Korean company Hanwha Defense, which had put forward ‘Hybrid Biho’, did not meet full technical parameters.

Russia has been complaining to the Ministry of Defence against the South Korean system since 2018.
 

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