Modernisation of Indian Army Infantry

[WolfPack86]

BIG. Indian finance minister
@NSitharaman
announces Govt to shortly notify list of weapons/platforms which won’t be allowed via import, and will need to be contracted in India, after meeting requirements. Defence import bill needs to come down, she says. CDS to implement.

 

[WolfPack86]

Seperate budget provision to be given for Indian made defence weapons.

 

[WolfPack86]

Separate budget for Indian made defence items, negative import list, realistic GSQRs, hike in FDI - the Defence production reforms announced by FM Nirmala Sitharaman today.

 

[samsaptaka]

I honestly hope that the “essential weapons” clause will not be misused!

 

[janme]

Corporatosation of OFB also approved, hope it's just not all talk and is fast tracked.
However I am still dissapointed. Government could have done a lot more. For example:-
1. Complete authority to DRDO to transfer any technology/weapon to private industry along with dpsu for mass manufacturing.
2. More Disinvestment in HAL.
3. Complete authority to forces if they are buying from the local industry.
4. Preference to MSME who are investing in R&D instead of doing screwdrivergiri.

 

[IndianHawk]

One thing I learned on defense forums is that people are never satisfied no matter what govt does.

 

[Defcon 1]

Corporatosation of OFB also approved, hope it's just not all talk and is fast tracked.
However I am still dissapointed. Government could have done a lot more. For example:-
1. Complete authority to DRDO to transfer any technology/weapon to private industry along with dpsu for mass manufacturing.
2. More Disinvestment in HAL.
3. Complete authority to forces if they are buying from the local industry.
4. Preference to MSME who are investing in R&D instead of doing screwdrivergiri.

1. Already present
2. Wouldn't make sense to go for disinvestment at a time when share prices are compressed. Also wouldn't improve efficiency at HAL as its IPO showed.
3. What do you mean by this?
4. How does anyone know who is doing R&D and who is doing screwdriver giri? And what preference do you want for them?

 

[janme]

1. Already present
2. Wouldn't make sense to go for disinvestment at a time when share prices are compressed. Also wouldn't improve efficiency at HAL as its IPO showed.
3. What do you mean by this?
4. How does anyone know who is doing R&D and who is doing screwdriver giri? And what preference do you want for them?

1. I don't think so, DRDO doesn't have autonomy in that regard although they have transfered some low end stuff as outlined by one of the interviews of the DRDO chief in the past.
2. You are talking about timing, I am talking about the intent. I have also read articles/rumors that government is still holding about 97 percent of the shares indirectly using LIC and other state run companies.
3. For example, government asked/identified a list of items from the ofb which army can buy from the local industry instead of relying on ofb. This should be done/allowed for everything.
4. I will post the article to explain further, I think this has already been incorporated.

 

[janme]

@Defcon 1
Here it is for point 2 :-

LIC Bought 70% Of Shares In Hindustan Aeronautics’ IPO

LIC bought more than two-thirds of the shares that were up for grabs in HAL’s IPO.

www.bloombergquint.com

For point 4 :-
"The defence ministry will be adopting a new procurement policy that will define the level of indigenous content for defence equipment and give higher preference to local vendors in contracts and to start with, it has identified military textiles such as bulletproof jackets, boots and high altitude clothing for this purpose."

Defence ministry to adopt new procurement policy

The ministry will also identify other defence equipment where the policy can be applied.

economictimes.indiatimes.com

As I said earlier, except corporatisation of OFB( which was planned earlier by Arun jaitley himself), I don't see any major "reforms" that have been anounced today,Where is the planned disinvestment that was to be done in BEML? and I can go on and on.

BJP is just marginally better than congress and invests a lot of time in media management. We need someone like parrikar who understands what he is doing....

 

[janme]

For point 3 :-

275 items manufactured by OFB declared 'non-core', forces can procure it from OFB or open market

As many as 275 items manufactured by ordnance factories have been declared "non-core" and the armed forces are free to procure these from open market or from the Ordnance Factories Board (OFB), the government said on Monday. In a written response to a question on whether a large number of items...

www.business-standard.com

 

[WolfPack86]

More FDI In Defence Manufacturing, No Import of Weapons that can me Made in INDIA
Companies abroad will be able to invest up to a maximum 74 per cent in defence manufacturing in India, up from 49 per cent, Finance Minister Nirmala Sitharaman said on the fourth day of mega reform and relief announcements amid the coronavirus pandemic. The higher foreign direct investment (FDI) limit on defence manufacturing is under the automatic route, for which government approval is not required, Ms Sitharaman said.

India will also stop importing weapons that can be made at home, the Finance Minister said. "We will notify a list of weapons and platforms for ban on their imports and fix deadlines to do it," Ms Sitharaman said, adding this move will improve self-reliance on defence manufacturing. "…Every year this list will be increased," she said.

"Even the spares of these weapons have to be manufactured locally. This will help reduce a huge defence import bill," the Finance Minister said.


The Ordnance Factory Board or OFB that makes weapons for the country's military will be made more professional. "We will work to improve autonomy, accountability and efficiency of OFB by corporatisation and not privatisation," the former Defence Minister said.

The OBF runs 41 factories in 24 locations across the country. Any move at privatisation is likely to be resisted by the workers.

Ms Sitharaman said they will simplify the documents needed to buy weapons by making them "realistic".

"Sometimes the general staff qualitative requirement (GSQR) could be unrealistic. We will make it more realistic that matches with the needs. Weapon trial and testing procedures will also be overhauled," Ms Sitharaman said.

The GSQR is among the first steps in buying capital equipment, which contains why the equipment is needed and its expected quality standards.

More FDI In Defence Manufacturing, No Import of Weapons that can me Made in INDIA

Companies abroad will be able to invest up to a maximum 74 per cent in defence manufacturing in India, up from 49 per cent, Finance Minister Nirmala Sitharaman said on the fourth day of mega reform and relief announcements amid the coronavirus pandemic. The higher foreign direct investment (FDI)...

www.defencenews.in

 

[WolfPack86]

In major defence reforms, govt pushes for desi arms

The armed forces will now have to willy-nilly shed their penchant for exorbitant foreign weapon systems and platforms, unless they can be made in India through joint ventures with global armament and aviation majors. This was the unequivocal message in the announcement of some long-pending defence reforms by the government on Saturday, which ranged from banning the import of certain weapons through a progressively-expanding negative list to significantly hiking the FDI limit to 74% from the existing 49% in the defence production sector through the automatic clearance route. Several global arms majors have for long been demanding the hike in the FDI limit on the ground that they need “more management control” of the JVs to step up investments and provide top-notch military technologies to India. India has attracted a paltry Rs 1,834 crore as FDI in the defence and aerospace sectors since 2014. In the same timeframe, the country has inked over 120 “capital procurement” contracts roughly worth around Rs 2 lakh crore with foreign armamentcompanies. India, with an annual defence budget of about $70 billion, 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. This will no longer do, declared finance minister Nirmala Sitharaman on Saturday, though some cutting-edge weapons will continue to be imported. India will stop importing arms that can be made indigenously to reduce the “huge defence import bill”, with a thrust also on domestically manufacturing even the expensive spares of the imported weapons. A separate capital budget, in turn, will also be created to buy indigenously-produced weapons, she said. "We will notify a list of weapons and platforms for ban on their imports and fix deadlines to do it,” she said. The negative list, to be prepared in coordination with the newly-created department of military affairs led by chief of defence staff General Bipin Rawat, will be expanded every year as domestic production capacities grow. Among the first lot of weapon systems to be included in this list are likely be artillery guns and some types of helicopters, said sources. A clear indication of these big-bang reforms, with the renewed thrust on “Make in India”, had come in the exclusive interview of Gen Rawat published in the May 10 edition of TOI. The 15-lakh strong Indian armed forces, which do not have an “expeditionary” role, have to get rid of their overwhelming dependence on foreign arms and refrain from framing “unrealistic” technical parameters or GSQRs (general staff qualitative requirements) for weapon systems that DRDO-domestic industry cannot deliver in specified timeframes, Gen Rawat had told TOI. Sitharaman, on her part, said there would be a time-bound defence procurement process, with “faster decision-making” through the setting of a “project management unit” to support contract management, “realistic” framing of GSQRs and overhauling of the cumbersome trial and testing procedures. Unrealistic GSQRs often result in a lengthy search for weapons and lead to single-vendor situations that are against the rules, she said. The 41 factories under the Ordnance Factory Board (OFB), which with an annual turnover of around Rs 19,000 crore is the main source of supply of arms and ammunition for the Army, will also be “corporatized” to improve its “autonomy, accountability and efficiency”, she said, stressing that it did not mean “privatization” in any way. The Army had last year sounded the alarm over the unacceptably high number of accidents and casualties taking place in the field due to the poor and defective quality of ammunition being supplied for tanks, artillery, air defence and other guns by the OFB, as was then reported by TOI. The long-pending draft note for the Cabinet Committee on Security on corporatizationof the OFB says it would help increase the state-owned entity’s turnover to Rs 30,000 crore by 2024-25, enhance its exports to 25% of the turnover, and increase self-reliance in technology from the existing 20% to 75% by 2028-29.

In major defence reforms, govt pushes for desi arms

The armed forces will now have to willy-nilly shed their penchant for exorbitant foreign weapon systems and platforms, unless they can be made in India through joint ventures with global armament and aviation majors. This was the unequivocal message in the announcement of some long-pending...

www.defencenews.in

 

[Rajaraja Chola]

Pushing FDI to 74% in defence manufacturing is absolute BS and nothing ground breaking. No country will set up facilities to sell.to third nations without selling to India first.

There are a lots of start ups already in Indian defence sectors. Instead of encouraging them by placing orders with these defence companies this charade of fdi is disappointing. Only if we place orders these companies can continue to innovate and continue to produce groundbreaking products with time. They need capital orders and not loans. How many orders were placed to Indian private start ups in last 2 years? Almost nothing. Many are frustrated. We need Indian companies, not some foreign companies based in india alone.

 

[Raj Malhotra]

I ask a Simple question :-

Whether AK 203 import in guise of JV will be dropped or not?

 

[WolfPack86]

Government mandates purchase of 26 military equipment only from domestic firms
NEW DELHI: The defence ministry on Wednesday issued directives providing for procurement of 26 spares and equipment for military use only from domestic suppliers in sync with the government's focus on encouraging indigenous defence manufacturing, officials said.


The move came days after Finance Minister Nirmala Sitharaman unveiled a series of reform measures to promote the domestic defence industry and cut India's reliance on imported weapons and military platforms.


All the items identified for procurement from domestic defence manufacturers are used in shipbuilding.


So far, the defence ministry has notified 127 items where purchase preference is given to local suppliers.


"In order to further encourage procurement from local suppliers, 26 items out of 127 already notified, have now been notified under clause 3(a) of the Public Procurement (Preference to Make in India) Order 2017," the defence ministry said in a statement.


"Henceforth, procuring entities will procure these items only from local suppliers, irrespective of purchase value, provided that the local suppliers meet the minimum local content (MLC) as prescribed for each item," it said.


The local content prescribed for the 26 items is in the range of 40 per cent to 60 per cent.


The reform measures announced by Sitharaman included making separate budgetary outlay to procure Indian-made military hardware, increasing FDI limit from 49 per cent to 74 per cent under the automatic route and generating a year-wise negative list of weapons whose import will not be allowed.

India is one of the most lucrative markets for global defence giants as it figured among top three importers of military hardware in the world for the last eight years.


According to estimates, the Indian armed forces are projected to spend around USD 130 billion in capital procurement in the next five years.


Experts said increasing the existing Foreign Direct Investment (FDI) cap to 74 per cent will encourage global players like Lockheed Martin, Boeing, Airbus and Dassault Aviation to set up manufacturing hubs in India and bring niche technology without hesitation as the firms will have majority stakes in their Indian subsidiaries.

Government mandates purchase of 26 military equipment only from domestic firms

NEW DELHI: The defence ministry on Wednesday issued directives providing for procurement of 26 spares and equipment for military use only from domestic supplier

www.newindianexpress.com

 

[WolfPack86]

India has notified 26 defence-related items under clause 3(a) of the Public Procurement (Preference to Make in India) Order 2017, which means they are reserved for domestic suppliers regardless of purchase value, provided minimum local content levels are met.

 

[IndianHawk]

I ask a Simple question :-

Whether AK 203 import in guise of JV will be dropped or not?

Don't think so. Tech is imported but they are being built in India. So they will come under make in India.

In such deals only royalty ( tot fee) is paid back to Russia rest is all spend in India ( most of material is sourced from India + all the labour is from India paid here ).

 

[Raj Malhotra]

More than 50%-75% value of "all" AK-203 will be manufactured in Russia.

 

[IndianHawk]

More than 50%-75% value of "all" AK-203 will be manufactured in Russia.

Do you have a link which shows cost break up?

 

[Blue Water Navy]

These helmets looks bad ass.

But these soldiers are carrying knife as their sidearm. Shouldn't be the Govt. thinking about giving them a handgun? (I know knife is reliable but still, all modern militaries have them).