Showing posts with label Defense. Show all posts
Showing posts with label Defense. Show all posts

Thursday, 11 December 2014

Russia to ‘Make in India’ 400 Helicopters a Year

Russia and India have agreed to assemble 400 twin-engined helicopters a year in India, Russian Deputy Prime Minister Dmitry Rogozin said after summit talks between President Vladimir Putin and Prime Minister Narendra Modi.
The Kamov Ka-226T, which Russia offered to assemble in India, is a light multi-role helicopter which is used for search-and-rescue operations.
The issue was discussed during the summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin.
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According to Russian Deputy Prime Minister Dmitry Rogozin, almost 400 Kamov helicopters a year will be assembled in India. He said Russia may consider producing Mi-17 transport helicopter in India as well.
At a joint media interaction with Putin, Modi said they discussed a broad range of new defence projects and how to align the defence relations to India’s own priorities, including ‘Make in India’.
“I am pleased that Russia has offered to fully manufacture in India one of its most advanced helicopters. It includes the possibility of exports from India. It can be used for both military and civilian use. We will follow up on this quickly,” Modi said.
The Prime Minister said Russia has been India’s foremost defence partner through decades and it will remain so.
“Even as India’s options have increased today, Russia will remain our most important defence partner. We have conducted joint exercises across all three wings of the Armed Forces in the last six months,” he said.
Russian officials said an in-principle decision was made on assembling of Russian helicopters in India.
“Almost 400 Kamov helicopters a year will be turned out,” Interfax news agency quoted Rogozin as saying.

Source : Defence News

Sunday, 7 December 2014

Obama’s defence secy nominee Ashton Carter instrumental in reviving ties with India

Washington: Ashton Carter, nominee for the US Defence Secretary, was instrumental in reviving India-US defence ties, a top American lawmaker today said, while others welcomed his nomination for the top Pentagon post.
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“He (Carter) was instrumental in reviving the US-India defence relationship, a major development that continues to bear fruit, and he has helped forge new security ties with former Communist bloc nations,” House Democratic Whip Steny H Hoyer said after President Barack Obama nominated Carter.
Hoping that the Senate will confirm Carter quickly so he can get to work without delay, Hoyer said Carter is an excellent choice to serve the next Secretary of Defence.
“He has the experience and the judgment required to lead the Department of Defence as it confronts ISIL in Iraq and Syria, brings our troops safely home from Afghanistan, and counters threats against the United States and our allies around the world,” he said.
Congressman Mac Thornberry, Chairman-elect of the House Armed Services Committee, said Carter knows the Pentagon, and he knows that some reforms are essential if they are to meet the national security needs of the country.
Welcoming the nomination, Senator Jim Inhofe, ranking member of the Senate Armed Services Committee, said he has worked with Carter over the years and consider him qualified for the position and look forward to his confirmation hearing.
Senator John McCain said Carter is a highly competent, experienced, hard-working, and committed public servant.
“Throughout Carter’s previous tenure at the Pentagon, I have worked closely with him on a number of issues, including defence acquisition reform,” he said, adding that he was looking forward to his confirmation hearing.
Senator Lindsey Graham said Carter has the knowledge and capability to serve as Secretary of Defence during these difficult times.
“I expect he will face tough questions at his confirmation hearing about President Obama’s failing national security policy, but I expect he will be confirmed,” the Republican Senator said.
Senator Carl Levin, chairman of the Senate Armed Services Committee, said Carter is highly qualified and experienced, and well-versed in the challenges that the next secretary of defence will face.
“Carter understands the threats that confront our country and I believe his experience at the Pentagon will make him an effective leader for our military. Given the many critical national security issues confronting the United States, it is my hope that the Senate will work swiftly to consider and confirm President Obama’s nominee to this critical post,” Senate Majority Leader Harry Reid said.

Source : Defence News

Thursday, 20 November 2014

India, Australia To Strengthen Strategic Ties, Counter China

Indian Prime Minister Narendra Modi has made a clear indication that New Delhi is fully prepared to counter Beijing’s increasing influence in the Asia Pacific region.

Indian Prime Minister Narendra Modi has made a clear indication that New Delhi is fully prepared to counter Beijing’s increasing influence in the Asia Pacific region. On Tuesday, Modi and his Australian counterpart Tony Abbott decided to bolster the bilateral strategic partnership on the basis of ‘converging political, economic and interests’. In Canberra, the two PMs discussed various aspects of bilateral relations and expressed serious concern over China’s attempts to increase its influence in the Indian Ocean region.
Modi and Abbott finalised a framework for security co-operation between the two countries. They also decided to hold annual meeting to assess the co-operation. According to the statement issued by the Indian External Affairs Ministry, the defence ministers of the two ‘friendly’ nations will hold regular meeting in the coming days. India and Australia will also hold annual defence policy talks and regular joint naval manoeuvres, apart from co-operating in defence research and development. Meanwhile, the Australian media reported that the confirmation of the security framework came only after Chinese President Xi Jinping’s departure from Canberra (after attending the G20 Summit).
Political experts are of the opinion that the current geopolitical situation in the Asia Pacific region has forced New Delhi and Canberra to strengthen bilateral defence ties. As China is racing ahead of Australia, Japan and India, the interests of Canberra, Tokyo and New Delhi have sharply converged. As a result, India and Australia announced the new ‘Framework for Security Co-operation’ for close collaboration in defence, counter-terrorism, cyber security and maritime security.
In a joint statement, governments of the two countries said: “Prime Minister (Narendra) Modi and Prime Minister (Tony) Abbott decided to extend defence co-operation to cover research, development and industry engagement. They agreed to hold regular meetings at the level of the defence minister, conduct regular maritime exercises and convene regular Navy to Navy, Air Force to Air Force and Army to Army staff talks.” Although the two leaders further decided to push for a free trade pact between their countries, the defence co-operation was more important.
Former Indian Foreign Secretary Kanwal Sibal said that it was a crucial development and the Modi administration pursued a strategy to protect the region from China’s unpredictable actions. “The Modi government is playing its cards astutely. While India is taking steps to improve economic ties with China, it is also pursuing a strategy aimed at checking China. It’s a wise approach,” he told the ‘Hindustan Times’ daily. Indian defence analyst Lieutenant General (Retired) B S Jaswal stressed: “Beijing’s hegemonic attitude will continue if not checked.”
Israel, too, is eager to ramp up strategic ties with India. A couple of days back, Israel said that China is its trading partner, but India is a ‘strategic’ one. The Israeli authorities also announced that they would not revive arms trade with Beijing in the future. With sales worth USD 1 billion-USD 1.5 billion every year, India is currently No 1 arms market for Israel and Jerusalem is planning to concentrate only on the South Asian country in the region as far as the arms trade is concerned.
In its latest report, the Israeli Defence Ministry said that the West Asian nation currently exports defence equipment worth USD 7 billion annually to India, but hardly anything to China in the last decade. The volume of annual trade between India and Israel is around USD 5 billion and the signing of a Free Trade Agreement can easily double the volume, the report said.
While welcoming the Indian PM’s commitment to taking ties with Israel to a new level, senior Israeli officials have said that no one should question Jerusalem’s relation with Beijing and dilute it with the strategic partnership with New Delhi.
Source : Defence News

Sunday, 5 October 2014

Geolocators to find stolen phones

Police To Buy Three Gadgets For Rs. 1.5Cr Each To Identify Precise Locations
The next time you lose a cellphone, chances of reclaiming it are higher.
Delhi Police has finally given the nod to its much-awaited project for buying devices equipped to trace mobile phones. Around 40 mobile phones go missing here every day on average, police data suggests.
The devices, termed Geolocators, will cost Rs 1.5 crore each—the department will reportedly procure three.
One each will go to the special cell and the crime branch, while the third may be allotted to the local police for specific cases.

TOI had first reported in September last year that cops were planning to procure devices which could help them find mobile phones. Sources confirmed that a global tender was floated last week to procure these machines. The gizmo will not only help cops trace loststolen or snatched phones but will also help in narrowing down on the suspects making ransom calls from a remote area. It will also help in tracking terrorists and criminals on the run, police said.
Geolocators, which use advanced GPS and “frequency locator” technology from Europe, come with an assembly unit and a handheld device. The latter is equipped with a smartphone and can be used to reach to the place where the target phone is located. The units can be mounted on a vehicle or packed in a haversack.
A source said the device would generate a “mobileterminating call or an SMS” to the phone from any given number—cops would even be able to speak to the target and engage or distract him—and then it will establish contact with the phone’s IMEI or IMSI’s frequency. A trained cop will go through the area with the handheld device to track down the target. The GPS-enabled unit will take him even to the room where the crimi nals or terrorists could be operating from or hiding and a cover team will follow to thwart them.
Till now, cops have been using the information furnished by the service provider, which directs them to a vague tower location (such as ITO or Pragati Maidan) which have hundreds of active numbers. Cops get to the tower ID and track the target or the phone using manual intelligence. This device—the handheld part of the unit acts as a guide—can take you up to 10 metres close to the target. It will, however, only be able to track GSM phones with 2G or 3G technology and can be upgraded to 4G as well.
Geolocators are an essential part of any police investigation unit in the West and are crucial in cases of homicides, kidnapping for ransom and robbery. The instrument is perceived to be a great help to the force.


Source: Defence News

Friday, 3 October 2014

US rules out trilateral military partnership with India, Japan

Washington: The US has ruled out a trilateral military partnership with India and Japan, days after it decided to upgrade its annual trilateral meetings at the ministerial level.


“No,” Assistant Secretary of State for South and Central Asia Nisha Desai Biswal told reporters when asked if the India-Japan-US trilateral diplomatic ties expand to become a military partnership.
“The trilateral relationship between India and Japan is not to be at the exclusion of any other relationships and partnerships in the region. It has its roots on the desire to support economic connectivity across the South Asia and Southeast Asia landscape,” she said.
“As you see the transition, the political transition in Myanmar, it has created a new opening and an opportunity to strengthen that connectivity that allows trade to go north, south, east, and west. So the trilateral conversations, have focused on how to do that, how to support trade and economic connectivity across the region,” she added.
There are also discussions about how to strengthen humanitarian assistance and disaster response across the region. There’s a great deal of capacity in India. There’s a great deal of capacity in Japan, she noted.
Asia is one of the most disaster-prone regions of the world. Over 60 per cent of hydro meteorological disasters that require international assistance occur in the Asia-Pacific region. So another area of discussion has been on creating capabilities and synergies on disaster response, she said.
She said there is a very deep interest in strengthening maritime cooperation and maritime security, and India is playing an increasing role in providing that as we look at anti-piracy initiatives and ways to create safe transportation routes and lanes for commerce to be able to take place.
“So those have been the nature of the conversations. This is an important trilateral, but I don’t think it comes at the exclusion of other strong, important relationships in the region,” she explained.
The US is currently doing joint military exercises with India and with Japan, she said, adding a lot of the countries of the region, including China, have participated in the RIMPAC exercises.
“We see these areas not as being exclusive or exclusionary, but we think that the more that we’re able to partner with and work with the militaries of the region, create understanding and capabilities of how we can work together, both in terms of responding to crises when they happen, but also in terms of creating shared understandings,” she said.
“I know that we have mil-to-mil conversations in our relationship with China, and we certainly do with many of the other countries of the region. These are conversations that we want to have across the broad expanse of all of our relationships,” she added.

Source: Defence News

Wednesday, 1 October 2014

Modi trying to replicate East Asian growth model in India: Sanjeev Sanyal

Singapore: Prime Minister Narendra Modi has a very specific development strategy, and it involves moving India away from its current services-driven growth trajectory to an East Asian-style export-led growth model, based on the mass deployment of labour and capital, Sanjeev Sanyal, global strategist at Deutsche Bank AG, said in an interview. The East Asian model is not just about manufacturing but about creating a virtuous cycle of savings, investment, exports and employment creation, and given India’s demographic stage, it is a good time to attempt this strategic shift, he added. Edited excerpts: You share the view that a clear and internally coherent economic model is emerging from Prime Minister Modi’s speeches and policy actions, and you also believe India, under the new government, is shifting from its current services-driven growth trajectory to an East Asian growth model. What has led to these conclusions? Listen to what PM Modi repeatedly talks about—export-led manufacturing, infrastructure building, urbanization, expanding the banking deposit base to mobilize savings, mass employment generation and so on. Put them together and they spell out a very specific development strategy—the East Asian model based on the bulk deployment of labour and capital. Japan was the first country to pioneer this growth model, but it has since been replicated by Taiwan, South Korea, Singapore and, most recently, China. It is a well trodden path even if each country modified the strategy to suit its own requirements. Of course, this model, too, comes with risks, but every strategy will come with risks. Only time will tell if Modi can successfully anticipate these risks and navigate through them. For the moment, it is important to recognize he is less India’s Thatcher, and more of an East Asian modernizer like Lee Kuan Yew. What is the East Asian manufacturing-led model? Is this model replicable in India? The East Asian model is not just about manufacturing but about creating a virtuous cycle of savings, investment, exports and employment creation. Let’s say, an initial injection of foreign direct investment (FDI) boosts infrastructure spending. This infrastructure makes the economy more competitive and encourages manufacturing exports.
Modi trying to replicate East Asian growth model in India: Sanjeev Sanyal
Sanjeev Sanyal says Prime Minister Narendra Modi’s development strategy involves moving India away from its current services-driven growth trajectory to an East Asian-style export-led growth model.
In turn, jobs are created by both manufacturing and construction which boosts savings. These savings are then deployed back into investment by an expanding banking system. Obviously, this is a very simplified version of the model; there are many more ingredients that are needed to keep this cycle going. The central bank, for instance, has to be willing to hold the exchange rate weak and accumulate reserves. At some point, once inflation has been tamed, the cost of capital needs to be lowered significantly. Given India’s demographic stage, this is a good time to attempt this model. But there is no guarantee that it will succeed. Indeed, countries like Thailand and Indonesia appeared to have triggered the cycle in the 1990s, but they were unable to sustain it due to the Asian Crisis of 1997-98. So a lot depends on how this process is implemented and managed. Data indicate India must create 10 million additional jobs per year till the next elections to keep up with demographic expansion alone. Data further show unemployment among graduates is as high as 32%. You are of the view that Modi’s mandate is to clear up the pipeline that allows the increasingly educated children of farmers to join the middle-class. Is manufacturing the only solution to address this issue? India’s services-driven growth model managed to generate periods of rapid growth over the last 20 years. However, it disproportionately benefited the existing English-speaking middle class and did not generate enough jobs for the wider population. Thus, services now generate 60% of GDP (gross domestic product) but employ only 26% of the workforce. In contrast, half of the workforce remains trapped in agriculture that generates only 13% of GDP. Therefore, you need to get another sector to generate the jobs required to meet the aspirations of those who wish to shift from farming, as well as absorb the additional 10 million young people who are being added to the workforce by demographic expansion. Industrialization, which includes manufacturing, utilities and construction, is required as an additional engine of growth. The share of industry in GDP has remained stuck at 26% since the late 1980s but its share in employment has steadily increased. It is clearly needed for generating jobs for the semi-skilled workers who aspire to enter the middle class. As an aside, agriculture also cannot be totally written off. We need agricultural reforms to allow the sector to mechanize and grow even as workers are pulled out of it. What does the government need to do in order to get firms to invest again? The immediate thing that needs attention is to revive the large number of stalled infrastructure projects. I believe the government is already working on this. Longer term, investment-led growth requires a stable macroeconomic environment, a rational tax structure, laws/regulations/procedures that are not unduly burdensome and, finally, a judicial system that efficiently enforces contracts. Basic infrastructure like power, ports, railways and highways are also critical. Investing is inherently a risky activity, so investors want an environment that minimizes uncertainty and friction… The time has come to systematically implement the solutions. Who will finance this new model? Are banks equipped or large enough to fund manufacturing led growth? India needs to push its gross investment rate to 38-40% of GDP in a 5-10 year horizon. FDI is one way to get the cycle moving. It brings in capital but also technology, best practices, linkages and so on. However, the East Asian model is ultimately about mobilizing and deploying domestic savings. This means that the financial system, especially banks, will have to be expanded by an order of magnitude. Herein lies one of the biggest risks of the East Asian model. The Asian crisis of 1997-98 was partly due to a failure to manage the financial sector expansion. Even Japan and China have had problems managing this sector. This is why the role of the Reserve Bank is critical—it needs to make sure financing is available for investment-led model, and ensure poor capital allocation does not break the system. But can manufacturing take off without reforming India’s labour laws? Will the current government have the courage to touch this politically sensitive issue? Will state governments support the centre on this? Since this model is based on the mass deployment of labour, it requires a rational set of labour laws. It is not just about the content of Indian laws but the bewildering number of labour-related rules and regulations that a business needs to negotiate. The irony is that in the name of protecting workers, the laws have left the bulk of the workforce languishing in the unorganized sector. What India needs is a simple, clear set of rules that are widely applied—especially those related to worker safety (critical, since manufacturing and construction can expose workers to numerous hazards). The good news is that for the first time we are seeing state and central governments looking seriously at making changes. We should watch this space closely. Assuming that these laws are amended and the investment cycle revives, can India absorb millions of workers into the urban landscape to make this model work? Until very recently, policymakers saw urbanization as a bad thing that should be discouraged. Lately, the realization has dawned that urbanization is the inevitable spatial manifestation of development. If Modi succeeds in triggering the East Asian model of growth, India will urbanize just like China has done over the last two decades. Indeed, it will be an urban-majority country within a generation. Nonetheless, the PM recognizes Indian cities are not prepared for the deluge. This is the reason he keeps emphasizing the need to build 100 smart cities. So far, however, we do not have details of how he intends to build these cities. Must the rupee be kept weak for this model to succeed? There are several economists who feel the rupee is too weak and that it should be much stronger. However, it is important for this model that the rupee is stopped from appreciating too much from current levels even if there are strong FDI inflows. First, a weak exchange rate will provide Indian manufacturing exports with an initial competitiveness boost. Second, it will allow for the accumulation of foreign exchange reserves. Some economists think that large reserves are a waste, but I disagree. The reserves are an important bulwark against external shocks which is especially necessary when a rapidly expanding financial sector may be vulnerable. Finally, an investment boom could initially feed the current account deficit until such time the savings rate perks up. So, in any case, the rupee may not quite be as undervalued as people think. Manufacturing cannot succeed in isolation—the country needs reforms in infrastructure—roads, railways, ports—in the power sector, financial services as well as oil and gas, mining among others. Can all of it come together for this model to succeed? As I said, the East Asian model is not only about manufacturing but about a virtuous cycle. The building of infrastructure is important as it boosts the supply-side but is simultaneously a source of demand and a job creator. So it is very important that infrastructure projects get implemented smoothly. The mining sector, too, is critical—especially coal. Given that the new growth trajectory will be more materials- and energy-intensive, it is important that the government thinks through the environmental trade-offs very carefully. We cannot be certain that PM Modi will succeed. There are many roadblocks and risks along the way. However, it is becoming clear there is a coherent plan. Only time will tell if it will work. There is s genuine resolve but there are also genuine roadblocks. Why has India’s total factor productivity (TFP) growth, that has averaged around 2.5% in the past decade, declined almost each year since 2007, and is presently running well below 2%, while countries such as Indonesia, Philippines, and Thailand have seen TFP rise during the same period. There are many signs that productivity has slowed since 2007 although I am not sure of the exact TFP numbers you have quoted. There are several reasons for this slowdown. The economic reform process has been stalled for many years, and the productivity gains of previous rounds of reform have run their course. There are some sectors that have seen no reforms at all—most notably agriculture. Furthermore, numerous infrastructure and other projects lie stalled across the country. This is resulting in inefficiencies and severe bottlenecks. In order to revive productivity growth, the reform process needs to be urgently revived. China and South-East Asia still provide better infrastructure, flexible labour laws, stable policy and regulatory environment, among other factors. Even if India were to undertake major reforms, why should any of the existing manufacturing facilities shift base to India? Make no mistake, China remains a formidable industrial power. However, Chinese wages have been rising rapidly for years. Its workforce has peaked and will now decline steadily from here. So the country will have no choice but to move up the value chain and adapt. For the same reasons that production moved to China from Japan and the West, many industries will move to lower cost locations. Some of these may be absorbed by South-East Asia, but there is no reason India cannot compete with Thailand or the Philippines. They have their strengths, but India has its strengths. For instance, India has a much larger internal market that can be used to achieve scales that few other nations can individually aspire to. As just demonstrated by its successful mission to Mars, it also has technological capabilities that are on a different level.

Source: LiveMint

Monday, 29 September 2014

Make in India : Honeywell, Tata Partner To Produce TALIN Systems

NEW DELHI — Coinciding with the visit by Indian Prime Minister Narendra Modi to the US Sept. 25-30, Honeywell International has inked a partnership agreement with India’s Tata Power to license-produce the tactical advanced land inertial navigator (TALIN) system.


“TALIN represents the latest in global positioning system (GPS)-free navigation and positioning technology, designed to improve asset safety and ultimately mission success,” said Arijit Ghosh, Honeywell president for aerospace in India, according to a statement released Sunday.
An executive of Tata Power said TALIN would be sold to the Indian Army for use in artillery systems and also sourced to the Honeywell supply chain worldwide.
TALIN systems are ideal for environments where GPS signals are not available, the Tata executive said, so they would find a ready market with the Indian Army.
Tata Power will license the design and hardware to assemble, test and build the production kits for the navigation system in India.
The Indian government wants to boost the domestic defense industry and the Tata-Honeywell partnership will help Indian industry get advanced technology, the Tata Power executive said.
Ghosh said, “By partnering with Tata Power SED on the production of TALIN we are aligning with the government’s aim of increasing locally manufactured technologies for India’s defense industry and giving the Indian armed forces an easy-to-justify option for navigation on the 21st century battlefield.”
Source : Defence News

Indian PM Modi rocks Madison Square Garden – New York

NEW YORK: Indian-Americans from across the nation gave a “rock star” treatment to Prime Minister Narendra Modi at the prestigious Madison Square Garden in the Big Apple, where nearly 20,000 strong gathering of Indian Diaspora welcomed the Indian leader.

Shouting slogans like ‘Narendra Modi Zindabaad’, ‘Bharat Mata Ki Jai’ and ‘Welcome Modi’, Indian-Americans started arriving at the venue since early in the morning. People were seen waiting in long queues. By 9 p.m. a large number of people were dressed in Modi T-shirt with portrait of Modi on it. Many were holding banners and slogans like ‘America Loves Modi’.
Some 20,000 people packed the Madison Square Garden for the largest event of its kind for the Indian-American community organised by the recently formed Indian-American Community Foundation (IACF), and supported by more than 400 Indian-American organizers from across the country.
“He is a rock star,” said young college going Deepa Kaur. “We have a lot of expectations from him,” she said. Never seen before, the organisers had lined up a number of cultural events including popular songs, folk dances. People were seen dancing to the tune of these cultural events.
More than 200 media, a significantly large number of them from India, had registered for the event; which organisers said is unprecedented for an Indian American event.
“He is the first Prime Minister who is connected to the NRI (non-resident Indian community). That’s why you see such a large number of people. We filled up the seats in just two weeks. It has never happened in the history of the Madison Square Garden that seats gets filled up some three weeks before the event,” said Anil Sharma, one of the volunteers of the event.
In fact, more than 2,000 volunteers worked day and night for the past three weeks to make he program a success.
“It’s Modi Mania,” said Ankit Patel. “It’s a life time event,” he said.
In fact the event attracted some three dozen Congressmen including several power lawmakers like Senator Robert Menendez, Chairman of the Senate Foreign Relations Committee; Congressman Ed Royce, Chairman of the House Foreign Relations Committee, and Congressman Ami Bera.
South Carolina Governor Nikki Haley, Assistant Secretary of State for South and Central Asia Nisha Desai Biswal were also present. A huge contingent of Indian-American corporate leaders and IT professionals came in from the Silicon Valley for the mega event.
The New York Times in a headline ‘Indian Leader Narendra Modi, Once Unwelcome in US gets a Rock Star Reception’ story today wrote Modi will receive a rally fit for a rock star.
Modi’s fans were seen carrying the Indian tricolour and wore traditional Indian garb with several groups of performers carrying drums and ‘dhols’ to give him a rousing welcome.
There was also a group of Tibetan women carrying banners in support of Modi.
Strict security arrangements are in place with police barricades at several locations.
Besides the main venue, there would be at least 50 other locations across the country where special arrangements have been made for the live telecast of the prime minister’s speech and other events that include a nearly two-hour-long entertainment programme.
At 16.4 per cent, Indian-Americans are the third largest Asian-American group in the US, numbering 2.8 million strong, which is almost 1 per cent of the US population.
Source: Defence News

Saturday, 27 September 2014

Air Force Takes off With Plans to Make Aero India Bigger

BANGALORE: The Indian Air Force (IAF) has begun the preliminary rounds of preparations for the 10th edition of the biennial air show to be held at the Air Force Station (AFS) Yelahanka, in Bangalore, from February 18 to 22, 2015.

With Prime Minister Narendra Modi’s ‘Make in India’ pitch the Aero India-2015 will be seen through ‘a new window of opportunity’ by the aerospace and defence industry now. The IAF officials said they are preparing the ground to accommodate more participants during the air show.
Speaking to Express on the sidelines of a media visit to AFS Yelahanka on Wednesday, ahead of the 82nd IAF Day celebrations on October 8, Air Commodore S C Gulati, Air Officer Commanding of the station said initial talks with various state government agencies have already begun.
“These are early days of preparations and we have the SOPs (standard operating procedures) in place. We hope that the coming show will be bigger in all aspects and AFS Yelahanka is warming up for the task,” said Gulati, a seasoned IAF pilot with close to 8,000 hours of flying. Survey of hospitals and helipads in Bangalore are underway as part of the disaster management plan.
To a query whether the training activities at AFS Yelahanka would be hit if HAL Airport is reopened for commercial operations, Gulati said the IAF’s modern traffic management systems were capable of handling the situation. To another query whether the current activities at the Kempegowda International Airport (KIA) have eaten into the traffic space of the base (as reported by the media earlier), he said the training schedules have not been affected.
“Our training patterns have not changed and are proceeding as planned. We operate on the assigned air space and both the HAL and KIA too do the same. Paris has got three airports and London has four,” said Gulati, who was part of the Air HQ Communication Squadron, flying the Boeing Business Jets, carrying VIPs.
The AFS Yelahanka has the record of being the single largest base in India with maximum number of flying hours. It has to its credit over 20,000 hours of flying, annually.
As part of the IAF’s ongoing modernisation mission, AFS Yelahanka will soon get a new station HQ with the construction work almost entering the last lap. An official said the induction of AFS Yelahanka is poised to increase in the near future.
SOurce : Defence News

Monday, 22 September 2014

France asks India to finalise joint missile project soon

NEW DELHI: France has asked India for early finalisation of the long-pending Rs 30,000-crore project for joint production of short-range surface-to-air missile (SR-SAM) systems.

In a letter, the French Defence Ministry has told its Indian counterpart that “it will carry out substantial transfer of technology and know-how, especially in the field of missile guidance”.
The French side has proposed that the project “would enable India to get in a few years in areas of strategic missile, the maximum autonomy you have called for”.
SR-SAM is proposed to be a joint venture between India and France and they have nominated the DRDO (Defence Research and Development Organisation) and a French multinational firm for the programme.
The deal has been under negotiations for over five years and has been awaiting final clearance after French President Francois Hollande and then Prime Minister Manmohan Singh in 2013 announced that talks have been concluded between both the sides on the missile development project.
The IAF had raised certain objections over the programme but the Defence Ministry has to take a final call on the programme after holding discussions with all stakeholders.
The French Defence Ministry said it wants to actively participate in new Indian government’s plans to achieve autonomy in field of military hardware production.
It has said that the missile programme would help in meeting India’s domestic market and can also be supplied to future export markets.
Source  : Defence News

Thursday, 18 September 2014

STATOISTICS

China started its economic reforms in the late 1970s. In 1980, China’s GDP–both in absolute and per capita terms in PPP dollars–was smaller than India. In 1984, the Chinese economy overtook us in terms of absolute value of output.
Interestingly, until 1991, the year when India started its economic reforms, India’s GDP per capita was higher than China’s. Since then, the gap between the two economies has only widened. Some experts believe that the economic reforms did not work that well in India because before opening its economy China managed to bring some level of social equality by doing land reforms and ensuring access to education to all section of society. Also its economy is growing at a faster rate while the population growth has stabilized

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Source : TOI

Monday, 8 September 2014

INDIA as a Great Power

UNLIKE many other Asian countries—and in stark contrast to neighbouring Pakistan—India has never been run by its generals. The upper ranks of the powerful civil service of the colonial Raj were largely Hindu, while Muslims were disproportionately represented in the army.
 
On gaining independence the Indian political elite, which had a strong pacifist bent, was determined to keep the generals in their place. In this it has happily succeeded.
But there have been costs. One is that India exhibits a striking lack of what might be called a strategic culture. It has fought a number of limited wars—one with China, which it lost, and several with Pakistan, which it mostly won, if not always convincingly—and it faces a range of threats, including jihadist terrorism and a persistent Maoist insurgency. Yet its political class shows little sign of knowing or caring how the country’s military clout should be deployed.
That clout is growing fast. For the past five years India has been the world’s largest importer of weapons (see chart). A deal for $12 billion or more to buy 126 Rafale fighters from France is slowly drawing towards completion. India has more active military personnel than any Asian country other than China, and its defence budget has risen to $46.8 billion. Today it is the world’s seventh-largest military spender; IHS Jane’s, a consultancy, reckons that by 2020 it will have overtaken Japan, France and Britain to come in fourth. It has a nuclear stockpile of 80 or more warheads to which it could easily add more, and ballistic missiles that can deliver some of them to any point in Pakistan. It has recently tested a missile with a range of 5,000km (3,100 miles), which would reach most of China.
Which way to face?
Apart from the always-vocal press and New Delhi’s lively think-tanks, India and its leaders show little interest in military or strategic issues. Strategic defence reviews like those that take place in America, Britain and France, informed by serving officers and civil servants but led by politicians, are unknown in India. The armed forces regard the Ministry of Defence as woefully ignorant on military matters, with few of the skills needed to provide support in areas such as logistics and procurement (they also resent its control over senior promotions). Civil servants pass through the ministry rather than making careers there. The Ministry of External Affairs, which should be crucial to informing the country’s strategic vision, is puny. Singapore, with a population of 5m, has a foreign service about the same size as India’s. China’s is eight times larger.
The main threats facing India are clear: an unstable, fading but dangerous Pakistan; a swaggering and intimidating China. One invokes feelings of superiority close to contempt, the other inferiority and envy. In terms of India’s regional status and future prospects as a “great power”, China matters most; but the vexatious relationship with Pakistan still dominates military thinking.
A recent attempt to thaw relations between the two countries is having some success. But tension along the “line of control” that separates the two sides in the absence of an agreed border in Kashmir can flare up at any time. To complicate things, China and Pakistan are close, and China is not above encouraging its grateful ally to be a thorn in India’s side. Pakistan also uses jihadist terrorists to conduct a proxy war against India “under its nuclear umbrella”, as exasperated Indians put it. The attack on India’s parliament in 2001 by Jaish-e-Mohammed, a terrorist group with close links to Pakistan’s intelligence service, brought the two countries to the brink of war. The memory of the 2008 commando raid on Mumbai by Lashkar-e-Taiba, another terrorist organisation, is still raw.
Pakistan’s nuclear capabilities are a constant concern. Its arsenal of warheads, developed with Chinese assistance, is at least as large as India’s and probably larger. It has missiles of mainly Chinese design that can reach most Indian cities and, unlike India, it does not have a “no first use” policy. Indeed, to offset the growing superiority of India’s conventional forces, it is developing nuclear weapons for the battlefield that may be placed under the control of commanders in the field.
Much bigger and richer, India has tended to win its wars with Pakistan. Its plans for doing so again, if it feels provoked, are worrying. For much of the past decade the army has been working on a doctrine known as “Cold Start” that would see rapid armoured thrusts into Pakistan with close air support. The idea is to inflict damage on Pakistan’s forces at a mere 72 hours’ notice, seizing territory quickly enough not to incur a nuclear response. At a tactical level, this assumes a capacity for high-tech combined-arms warfare that India may not possess. At the strategic level it supposes that Pakistan will hesitate before unleashing nukes, and it sits ill with the Indian tradition of strategic restraint. Civilian officials and politicians unconvincingly deny that Cold Start even exists.
Bharat Karnad of the Centre for Policy Research, a think-tank, believes Pakistan’s main danger to India is as a failed state, not a military adversary. He sees Cold Start as a “blind alley” which wastes military and financial resources that should be used to deter the “proto-hegemon”, China. Others agree. In 2009 A.K. Antony, the defence minister, told the armed forces that they should consider China rather than Pakistan the main threat to India’s security and deploy themselves accordingly. But not much happened. Mr Karnad sees feeble civilian strategic direction combining with the army’s innate conservatism to stop India doing what it needs to.
The “line of actual control” between China and India in Arunachal Pradesh, which the Chinese refer to as South Tibet, is not as tense as the one in Kashmir. Talks between the two countries aimed at resolving the border issue have been going on for ten years and 15 rounds. In official statements both sides stress that the dispute does not preclude partnership in pursuit of other goals.
But it is hard to ignore the pace of military investment on the Chinese side of the line. Brigadier Gurmeet Kanwal of the Centre for Land Warfare Studies points to the construction of new railways, 58,000km of all-weather roads, five air bases, supply hubs and communication posts. China would be able to strike with power and speed if it decided to seize the Indian-controlled territory which it claims as its own, says Mr Karnad. He thinks the Indian army, habituated to “passive-reactive” planning when it comes to the Chinese, has deprived itself of the means to mount a counter-offensive.
Unable to match Chinese might on land, an alternative could be to respond at sea. Such a riposte was floated in a semi-official strategy document called “Nonalignment 2.0”, promoted last year by some former national security advisers and blessed by the current one, Shivshankar Menon. India’s naval advantage might allow it, for example, to impede oil traffic heading for China through the Malacca Strait.
China and India are both rapidly developing their navies from coastal defence forces into instruments that can project power further afield; within this decade, they expect to have three operational carrier groups each. Some Indian strategists believe that, as China extends its reach into the Indian Ocean to safeguard its access to natural resources, the countries’ navies are as likely to clash as their armies.
An OCEAN needs a navy ::
China’s navy is expanding at a clip that India cannot match—by 2020 it is expected to have 73 major warships and 78 submarines, 12 of them nuclear—but India’s sailors are highly competent. They have been operating an aircraft-carrier since the 1960s, whereas China is only now getting into the game. India fears China’s development of facilities at ports in Pakistan, Sri Lanka, Bangladesh and Myanmar—a so-called “string of pearls” around the ocean that bears India’s name; Mr Antony called the announcement in February that a Chinese company would run the Pakistani port of Gwadar a “matter of concern”. China sees a threat in India’s developing naval relationships with Vietnam, South Korea, Japan and, most of all, America. India now conducts more naval exercises with America than with any other country.
India’s navy has experience, geography and some powerful friends on its side. However, it is still the poor relation to India’s other armed services, with only 19% of the defence budget compared with 25% for the air force and 50% for the army.
The air force also receives the lion’s share of the capital-equipment budget—double the amount given to the navy. It is buying the Rafales from France and upgrading its older, mainly Russian, fighters with new weapons and radars. A joint venture between Hindustan Aeronautics Limited (HAL) and Russia’s Sukhoi is developing a “fifth generation” strike fighter to rival America’s F-35. As well as indulging its pilots’ need for speed, though, the air force is placing a new emphasis on “enablers”. It is negotiating the purchase of six Airbus A330 military tankers and five new airborne early-warning and control aircraft. It has also addressed weaknesses in heavy lift by buying ten giant Boeing C-17 transports, with the prospect of more to come. Less clear is the priority the air force gives to the army’s requirements for close air support over its more traditional role of air defence, particularly after losing a squabble over who operates combat helicopters.
With the army training for a blitzkrieg against Pakistan and the navy preparing to confront Chinese blue-water adventurism, it is easy to get the impression that each service is planning for its own war without much thought to the requirements of the other two. Lip-service is paid to co-operation in planning, doctrine and operations, but this “jointness” is mostly aspirational. India lacks a chief of the defence staff of the kind most countries have. The government, ever-suspicious of the armed forces, appears not to want a single point of military advice. Nor do the service chiefs, jealous of their own autonomy.
The absence of a strategic culture and the distrust between civilian-run ministries and the armed forces has undermined military effectiveness in another way—by contributing to a procurement system even more dysfunctional than those of other countries. The defence industrial sector, dominated by the sprawling Defence Research and Development Organisation (DRDO), remains stuck in state control and the country’s protectionist past. According to a recent defence-ministry audit, only 29% of the products developed by the DRDO in the past 17 years have entered service with the armed forces. The organisation is a byword for late-arriving and expensive flops.
The cost of developing a heavy tank, the Arjun, exceeded the original estimates by 20 times. But according to Ajai Shukla, a former officer who now writes on defence for the Business Standard, the army wants to stick with its elderly Russian T-72s and newer T-90s, fearing that the Arjun, as well as being overweight, may be unreliable. A programme to build a light combat aircraft to replace the Mirages and MiG-21s of an earlier generation started more than quarter of a century ago. But the Tejas aircraft that resulted has still not entered service.
There are signs of slow change. These include interest in allowing partnerships between India’s small but growing private-sector defence firms and foreign companies, which should stimulate technology transfer. But the deal to buy the Rafale has hit difficulties because, though Dassault would prefer to team up with private-sector firms such as Tata and Reliance, the government wants it to work with stodgy HAL. Even if Dassault had a free choice of partners, though, it is not clear that Indian industry could handle the amount of work the contract seeks to set aside for it.
Richard Bitzinger, a former RAND Corporation analyst now at the S. Rajaratnam School of International Studies in Singapore, sums up the problem in a recent study for the Zurich-based International Relations and Security Network. If India does not stop coddling its existing state-run military-industrial complex, he says, it will never be capable of supplying its armed forces with the modern equipment they require. Without a concerted reform effort, a good part of the $200 billion India is due to spend on weaponry over the next 15 years looks likely to be wasted.
The Tiger and the Eagle ::
The money it will spend abroad also carries risks. Big foreign deals lend themselves to corruption. Investigations into accusations of bribery can delay delivery of urgently needed kit for years. The latest “scandal” of this sort surrounds a $750m order for helicopters from Italy’s Finmeccanica. The firm denies any wrongdoing, but the deal has been put on hold.
Britain, France, Israel and, above all, Russia (which still accounts for more than half of India’s military imports), look poised to be beneficiaries of the coming binge. America will get big contracts, too. But despite a ground-breaking civil nuclear deal in 2005 and the subsequent warming of relations, America is still regarded as a less politically reliable partner in Delhi. The distrust stems partly from previous arms embargoes, partly from America’s former closeness to Pakistan, partly from India’s concerns about being the junior partner in a relationship with the world’s pre-eminent superpower.
The dilemma over how close to get to America is particularly acute when it comes to China. America and India appear to share similar objectives. Neither wants the Indian Ocean to become a Chinese “lake”. But India does not want to provoke China into thinking that it is ganging up with America. And it worries that the complex relationship between America and China, while often scratchy, is of such vital importance that, in a crisis, America would dump India rather than face down China. An Indian navy ordered to close down China’s oil supplies would not be able to do so if its American friends were set against it.
India’s search for the status appropriate to its ever-increasing economic muscle remains faltering and uncertain. Its problems with Pakistan are not of the sort that can be solved militarily. Mr Karnad argues that India, from a position of strength, should build better relations with Pakistan through some unilateral gestures, for example cutting back the size of the armoured forces massed in the deserts of Rajasthan and withdrawing its short-range missiles. General Ashfaq Parvez Kayani, head of Pakistan’s army, has declared internal terrorism to be a greater danger to his country than India. That may also offer an opportunity.
China’s confidence in its new military power is unnerving to India. But if a condescending China in its pomp is galling, one in economic trouble or political turmoil and pandering to xenophobic popular opinion would be worse. Japan and South Korea have the reassurance of formal alliances with America. India does not. It is building new relationships with its neighbours to the east through military co-operation and trade deals. But it is reluctant to form or join more robust institutional security frameworks.
Instead of clear strategic thinking, India shuffles along, impeded by its caution and bureaucratic inertia. The symbol of these failings is India’s reluctance to reform a defence-industrial base that wastes huge amounts of money, supplies the armed forces with substandard kit and leaves the country dependent on foreigners for military modernisation.
Since independence India has got away with having a weak strategic culture. Its undersized military ambitions have kept it out of most scrapes and allowed it to concentrate on other things instead. But as China bulks up, India’s strategic shortcomings are becoming a liability. And they are an obstacle to India’s dreams of becoming a true 21st-century power.
Source : Defence News

Monday, 1 September 2014

For First Time Since World War 2, Japan Will Sell Military Equipment. To India

TOKYO:  During his visit to Japan, Prime Minister Narendra Modi may not have closed a deal on nuclear energy cooperation, but he is returning with a pledge from counterpart Shinzo Abe for nearly 34 billion dollars in investment over the next five years, and the  sale of an amphibious aircraft to India's navy. The deal marks the intent of Asia's second and third largest economies to counter an increasingly aggressive China. 

For First Time Since World War 2, Japan Will Sell Military Equipment. To India


The specialised sea-plane, the US-2, will be Japan's first overseas military sale in nearly 50 years. Because it provides landings on sea and land, the plane will significantly enhance the Indian Navy's ability to carry out, casualty evacuations, deliver humanitarian assistance and conduct long-range surveillance and reconnaissance.



In keeping with Mr Modi's emphasis on developing military technology indigenously to check India's dependence on foreign defence manufacturers, the US-2 planes will be made in India. The Indian Navy has been lobbying to get 15 of these.



A statement issued in Tokyo after Monday's summit between Prime Ministers Modi and Abe said "both sides directed the Joint Working Group to accelerate progress in the discussions and preparations for a road map for the development of the Indian aircraft industry through US-2 amphibian aircraft cooperation including the transfer of the aircraft and its technology to India." 



This is the first time since World War-II ended seven decades ago that Japan will be selling military hardware abroad. Following its defeat, Japan had imposed an embargo on sale of weapons and military equipment.



The four-engine US-2 aircraft will act as a force multiplier for the Indian Navy, allowing it to quickly insert troops at places where there is no landing strip on shore, including the numerous far-flung islands in Andaman and Nicobar and Lakshwadeep. 



Currently, ground troops are delivered to areas like this using a 'Landing Ship Tank' which isn't always effective. The Sea Planes will allow faster troop insertion of small clusters of soldiers for specialised operations.



India's coastline runs nearly 7,500 kilometres and the Navy had earlier projected a requirement of 15 such sea planes, but their acquisition was stalled by a shortage of funds and other competing requirements, seen as more urgent - like acquiring multi-role helicopters, torpedoes, submarines and ships. 



The US-2 is one sturdiest aircrafts and can operate in sea state 5 conditions (wind speed of 30 to 38 km per hour) on the high seas as well as on rivers and lakes. Each plane can carry about 30 personnel and lift 18 tonnes and fly 4,500 km at stretch without needing to stop for refuelling. 
Story First Published: September 01, 2014 21:30 IST
Source: NDTV

Mahindra & Mahindra prefers consortium for defence; in talks with BAE, others


NEW DELHI: Learning from past experience in bidding for defence orders in India, Mahindra & Mahindra has decided to go the consortium way and is talking to global players, including erstwhile joint venture partner BAE.
"What we have discovered was that it's better to work as consortium because we have so many areas of interests right now," Mahindra Group Chairman and Managing Director Anand Mahindra told PTI in an interview.



Last year in February, the group had ended its joint venture with BAE Systems by buying out the partner's 26 per cent stake. The JV was formed in 2009 with plans of supplying artillery howitzers and anti-mine vehicles to the Indian armed forces.
"We dismantled the JV because we ran out of patience. Nothing was happening," he said.
Mahindra said that with the new government led by Narendra Modi in place, things have started to move now.
"They are moving. In certain areas like defence, RFPs (request for proposals) are being floated now," he said.
Elaborating on the group's decision to form consortium rather than enter into JVs, he said: "It's just a practical decision, which we have taken that given the number of areas we are in, we are probably better off bidding for large projects... JV is not the right way to do it. The right way to do is through consortium."
When asked about global players that the group was talking for such projects, Mahindra said: "We are in fact talking to the BAE again and to all the others... We are talking to BAE for the same bid, but we are saying that we do not know, so let's not go through the JV thing once again. Let's form a consortium."
He said while the easing of FDI norms to allow up to 49 per cent in defence was welcome, what was more important was to take "quick and transparent" steps.
"Suddenly we find out RFPs are being made. Will it be followed up? Will spending be carried out? Will the process be quick and transparent?" he wondered.

Mahindra further said: "Even at 26 per cent we had the partner BAE and they were ready to do business. That's not the problem. The problem was is the process of procurement happening. Is it happening transparently and predictively? And that's what will change defence and get production in."
Source :Economics TImes

Wednesday, 27 August 2014

Indian Defense Ministry to decide fate of Rs 6,000 cr light helicopter deal

New Delhi: The Defence Ministry will decide the fate of the controversial Rs 6,000 crore deal to procure 197 light choppers which has been on hold due to an ongoing CBI probe into charges that a Brigadier had sought bribe from AgustaWestland to help it bag the contract.
 
During a meeting of the Defence Acquisition Council (DAC) scheduled this week, the Defence Ministry will also discuss deals worth around Rs 15,000 crore for procuring Apache attack helicopters and Chinook heavylift choppers for the IAF from the US, Defence Ministry officials said.
The DAC, headed by Defence Minister Arun Jaitley, is scheduled to take up the deal for discussion in its meeting where it is expected to decide its fate, they said.
The 197 light utility choppers are to be procured for the Army and the IAF who use them for ferrying troops and supplies in high altitude areas such as Siachen Glacier and would be used to replace the vintage Cheetah/Chetak choppers which were inducted 40 years ago.
CBI has been probing allegations against the Brigadier which surfaced during investigations into the VVIP chopper deal about the alleged involvement of AgustaWestland in paying kickbacks to secure the Indian contract for 12 VVIP choppers.
CBI probe was ordered by the Defence Ministry after the Army requested it to investigate the charges against the Brigadier before taking any decision on the future developments in the deal.
Allegations have been levelled against the Brigadier in a letter allegedly sent by an AgustaWestland official in India to his superiors in Italy saying the officer was seeking USD 5 million for facilitating the deal in their favour.
Only two firms European Eurocopter and Russian Kamov are left in the race for the deal to supply 197 light choppers to the Army and the IAF as AgustaWestland was knocked out of the deal in the preliminary stages itself.
The deal for procuring 197 light choppers has already been cancelled once in 2007 in the last stages. The Brigadier has denied the charges made against him.


Source : Zee News

India imposes ‘Partial Ban’ on Finmeccanica

NEW DELHI: India will not ink fresh arms deals with Finmeccanica, if other armament companies can provide the same equipment, but will allow ongoing contracts with the Italian conglomerate to continue unhindered.
 
This “partial ban” — instead of what could have been a “complete” one — was officially notified by the defence ministry on Tuesday. It will come as “a major breather” for Finmeccanica, all dealings with which were earlier put on hold after its UK-based subsidiary AgustaWestland got enmeshed in the infamous VVIP helicopter kickbacks case.
It also marks a shift from the earlier UPA era, under A K Antony as defence minister, where there was “indiscriminate blacklisting” of armament companies after allegations of corruption and bribery. “It often proved counter-productive. The aim now is not to block military acquisitions and spares, even as any wrongdoing is punished,” said an official.
This is the second such case after the Narendra Modi government ruled out blacklisting of global engine manufacturer Rolls-Royce, which too is under CBI scanner for allegedly employing agents, on the grounds of “operational urgency and national security”.
As was first reported by TOI on August 7, attorney general Mukul Rohatgi had advised the MoD that a complete ban or blacklisting of the entire Finmeccanica group, which produces warship guns and torpedoes to helicopters and radars, would jeopardize the battle-readiness of the armed forces.
On Tuesday, the MoD issued a graded set of guidelines for dealings with Finmeccanica:
* It will go ahead with all contracts under execution. Contracts already executed but requiring supply of spares and upgrades on a regular basis will also continue. This means ongoing contracts for manufacture of 76mm warship guns by BHEL under licence from Otomelara, a subsidiary of Finmeccanica, as well as those for Selex radars and electronic systems will continue.
* Contracts where any Finmeccanica company is a sub-contractor or supplier to the main contractor will also continue. So, Russian upgrades of the Kamov-28 anti-submarine helicopters, where a Finmeccanica company is a supplier, will go-ahead.
* All acquisition cases where Finmeccanica has been declared L-1 (lowest bidder) after competition shall be put on hold till further orders. A special exception for the Rs 1,800 crore project to buy 98 ‘Black Shark’ heavyweight torpedoes for the Scorpene submarines being constructed at Mazagon Docks is likely to be done.
* In an ongoing tender process, in which L-1 has not been declared, Finmeccanica may not be considered if other vendors are available. But Finmeccanica may remain in the fray to supply naval multi-role helicopters to avoid a single-vendor situation.
* A fresh tender or RFP (request for proposal) will not be issued to Finmeccanica if there are other vendors which can provide the same equipment or system. This could rule out Otomelara from participating in the new project for heavy 127mm guns India is now looking for new warships.
As earlier reported by TOI, one estimate holds Finmeccanica, apart from ongoing contracts like the supply of Selex radars or Otomelara naval guns, is in contention for Indian military contracts worth over $6 billion.
The crucial ones include the Rs 1,800 crore project to buy 98 ‘Black Shark’ heavyweight torpedoes, manufactured by another Finmeccanica subsidiary Whitehead Alenia Sistemi Subacquel (WASS) for the six Scorpene submarines being built at Mazagon Docks in Mumbai.
Another case is for the procurement of naval multi-role helicopters (MRHs), with the contenders being European NH-90 choppers, which have Finmeccanica as a partner, and the American Sikorsky-70B choppers. The first contract for the 16 MRHs is to be followed by a bigger one for 123 helicopters at a cost of over $3 billion.

Source : TNN

Thursday, 21 August 2014

Indian firms tool up for defence orders on Modi’s ‘buy India’ pledge

(Reuters) – Some of India’s biggest companies are pouring billions of dollars into manufacturing guns, ships and tanks for the country’s military, buoyed by the new government’s commitment to upgrade its armed forces using domestic factories.
 
India, the world’s largest arms importer, will spend $250 billion in the next decade on kit, analysts estimate, to upgrade its Soviet-era military and narrow the gap with China, which spends $120 billion a year on defence.
Under the last government, procurement delays and a spate of operational accidents – especially dogging the navy – raised uncomfortable questions over whether India’s armed forces are capable of defending its sea lanes and borders.
Even before his landslide election victory in May, Prime Minister Narendra Modi promised to assert India’s military prowess and meet the security challenge posed by a rising China and long-running tensions with Pakistan.
Within weeks of becoming prime minister, he boosted defence spending by 12 percent to around $37 billion for the current fiscal year and approved plans to allow more foreign investment into local industry to jump-start production.
Launching a new, Indian-built naval destroyer last week, Modi said: “My government has taken important steps in improving indigenous defence technology … We can guarantee peace if our military is modernised.”
This build-up comes as Southeast Asian nations expand their own defence industries, spurred by tensions with China. India, reliant on a state defence industry that often delivers late and over budget, risks being caught flat-footed.
“The opportunity is huge,” said M.V. Kotwal, president (Heavy Engineering) at Larsen and Toubro Ltd, one of India’s biggest industrial houses.
“We really expect quicker implementation. There are signs that this government is very keen to grow indigenisation,” added Kotwal, referring to increasing domestic production.
Tata Sons, a $100 billion conglomerate, said last month it will invest $35 billion in the next three years to expand into new areas with a focus on a handful of sectors including defence.
Larsen is putting $400 million into a yard to build ships for the navy, while Mumbai-based Mahindra Group is expanding a facility that makes parts for planes, including for the air force, and investing in armoured vehicle and radar production.
The companies are being lured by the prospect of lucrative returns on their investments as the Modi government has pledged to make “buy Indian” the default option for future orders.
Larsen is targeting a fourfold increase in annual defence revenue to $1 billion within the next five years.
Critics of indigenisation argue that producing gear – especially in the lumbering state sector – is more costly than buying from abroad. Such deals can add layers of bureaucracy, increasing risks of corrupt dealings.
Indian industry is renowned for its ability to adapt, yet questions remain whether the private sector can come up with the solutions needed to bring armed forces into the 21st century without sufficient access to world-class foreign technology.
DELAYS
Some companies are also sceptical of the government’s commitment to grow the private market given New Delhi’s history of delays and order cancellations, and the traditionally strong ties between the military and state-run manufacturers.
They cite the case of a $10 billion Future Infantry Combat Vehicle (FICV) programme. Conceived in 2009, the defence ministry invited three private players and the Ordnance Factory Board, a state entity, to bid for the 2,600-vehicle contract but suddenly withdrew the letter of intent in 2012.
Bidders included Mahindra and Tata, which is developing a vehicle along with Lockheed Martin Corp and General Dynamics Corp that could compete for a future contract, said Rahul Gajare, an analyst at Edelweiss Securities.
A quick decision to relaunch the programme would demonstrate Modi’s resolve, said S.P. Shukla, who heads Mahindra’s defence business. Past tenders have stalled amid wrangling over whether or not to allow state manufacturers to bid and under what terms.
Larsen’s Kotwal said its Kattupalli shipyard in south India has yet to receive any orders for warships or submarines despite being designed to do just that and despite past government pledges to build at least two submarines in private yards.
In the meantime, the yard has switched to constructing and repairing commercial vessels.
“The policy in India has been right since 2006. The problem has been implementation,” said Rahul Chaudhry, CEO at Tata Power SED, which makes rocket launchers, sensors and radars.
Local firms have captured a fraction of the Indian defence market since it first opened to private participation in 2001. Consecutive governments have handed orders to state factories or to foreign giants like Boeing, Lockheed and BAE Systems.
Gajare at Edelweiss estimates total India private sector revenues from defence, including overseas orders, at below $2 billion last year, less than 6 percent of the country’s defence spending.
 
Source :Defence News

Monday, 18 August 2014

Rafale fighter jet deal contract with France almost ready: Defence ministry

The much-awaited multi-billion Rafale combat aircraft deal with France has moved a step further with the defence ministry finalizing a ‘draft contract’, according to top defence ministry officials.
 
Rafale was declared the lowest bidder in Janaury 2012 but the deal has not been inked so far on account of escalation in the cost. The Cost Negotiation Committee, which was set up in February 2012 to work out the modalities for the deal has not reached a conclusion after 30 months of negotiations.
The government raised its concerns over this last month, during the visit of French foreign minister Laurent Fabius to New Delhi.
“Yes, we are in the process of finalizing the draft contract for the deal. And we also expect the Cost Negotiation Committee to submit its report soon,” said a senior defence ministry official, who was privy to the developments.
But the official refused to give a time frame for inking the deal. “It is very difficult to predict any date for signing the contract. But, it should happen in the next few months,” the officer said, requesting anonymity.
The Indian Air Force (IAF), which is coping with a depleted combat strength, claims that even if the deal is signed by the end of the year the first lot of Rafale aircraft would arrive only by 2017, by which time the IAF would have to phase out its MiG-21 squadrons.
The likelihood of an early signing is encouraging. Besides, the ruling NDA government has promised to address all the needs of the armed forces to ensure defence preparedness.
According to officials privy to the development, the defence ministry has asked representatives of M/s Dassault Aviation – the French manufacturer of Rafale aircraft – to revise the price structure which has gone beyond expected estimates.
Officials claim that when the tender was floated in 2007 the cost of the programme was $12 billion (Rs42,000 crore).When the lowest bidder was declared in January 2012, the cost of the deal shot up to $18 billion (Rs90,000 crore). Now with the inclusion of transfer of technology, the life cycle cost and creation of an assembly line, the deal has climbed to a whopping $20 billion.
The air force is seeking to replace its aging MiG-21s with a modern fighter and the medium multi-role combat aircraft (MMRCA) fits between India’s high-end Sukhoi-30MKIs and the low-end Tejas LCA lightweight fighter. The IAF has a sanctioned strength of 45 fighter jet squadrons. However, only 30 squadrons are operational as old aircraft have been retired.
Eighteen of the 126 new aircraft are to be purchased directly from Dassault and Hindustan Aeronautics Limited will manufacture 108 under a licence, at a new facility in Bangalore.
Defence minister Arun Jaitley informed parliament last week that “given the complexity of the procurement case, the process of negotiations with Dassault Aviation on various aspects of the commercial proposal and provisions of draft contract is on.”
Dassault Aviation emerged as L-1 bidder for procurement of the MMRCA based on its quotation.
 
Source : Defence NEws

Saturday, 16 August 2014

Indian defence modernisation plan needs pragmatic action

The Army’s war waging capability is increasingly handicapped. Concerned with dwindling operational preparedness and operationally hard pressed, it wants to induct advanced technology hardware that it perceives would serve its operational needs optimally.
 
The NDA government has identified defence reforms and building a self sustaining defence industrial base as a priority reform sector. To transform this into reality, it is not so much of the government commitment but its ability to take policy decisions and put processes in place by spurring public and private sector investments through higher indigenisation, transfer of technology, simplifying procedures, etc.
The Army’s war waging capability is increasingly handicapped. Concerned with dwindling operational preparedness and operationally hard pressed, it wants to induct advanced technology hardware that it perceives would serve its operational needs optimally.
However its efforts at modernising be it combat or combat support arms are hardly encouraging – plagued by procurement and indigenous production delays and lack of timely planning.
The Parliamentary Standing Committee on Defence’s figures reveals that the army’s equipment modernisation is steadily falling. In 2008-09, the army spent 27 paisa of every rupee on capital expenditure. This fell to 24 paisa in 2009-10; 23 paisa in 2010-11; 20 paisa in 2012-13 and just 18 paisa in the last two years.
Indian army’s mechanised fleet comprises T-72 and T72 M1s Main Battle Tanks (MBTs), T-90S MBTs and indigenously produced Arjun MKI tanks. The main issue facing operational efficiency of mechanised forces are two: night fighting capability and ammunition.
Resultantly the army’s ambitious plans to transform from a ‘threat-based to a capability force’ by 2020 are being consistently thwarted as a result of process driven MoD breaucracy and the Army headquarters delays in drawing up credible qualitative requirements.
Army’s Modernization Perspective ::
Let us take the armour first. Indian army’s mechanised fleet comprises T-72 and T72 M1s Main Battle Tanks (MBTs), T-90S MBTs and indigenously produced Arjun MKI tanks. The main issue facing operational efficiency of mechanised forces are two: night fighting capability and ammunition.
In so far as night fighting capability is concerned only the 650-odd Russian T90S MBTs along with indigenously designed Arjun MKI tanks have full solution night fighting capability. T-72 and T72M1s that form the backbone of 59-odd armour regiments along with some 2200 Soviet-designed BMP-II infantry combat vehicles (ICVs) lack night fighting capability. Majority of the T72s await upgrades that will provide them with either full solution thermal imaging fire control systems (TIFCS) or third generation partial solution thermal imaging stand alone systems (TISAS) enabling all weather including night operations. Till date only 620 partial solution TISAS have been acquired.
In terms of armour ammunition there is critical deficiency of anti tank ammunition; 125 mm armour piercing fin-stabilised discarding sabot (APFSDS). Indigenous production is held up on account of black listing of Israeli company, resultantly availability of 125 mm APFSDS including war wastage reserves have dropped to critical levels necessitating urgent imports of around 66,000 rounds from Russia at highly inflated prices.
Next major deficiency is that of Artillery, where no new gun has been inducted in last three decades. Despite years of attempts at modernisation; army’s artillery profile remains beseeched by the inability to decide on the 155 mm gun to replace the 180-odd field artillery regiments employing as many as six different calibres that are fast approaching obsolescence. Even the 32 artillery regiments equipped with 410 FH-77B 155 mm Bofors guns imported in the late 1980s-are reduced to half following cannibalization owing to the non-availability of spares. Upgradation of approximately 200 Soviet 130 mm M-46 carried out jointly by the Ordnance Factory Board and Soltam of Israel has been unsatisfactory resulting in CBI enquiry.
The proposal under the Artillery Rationalisation Plan to acquire by 2020-25 a mix of around 3000-3600; 155mm/39 calibre light weight and 155mm/52 calibre towed, mounted, self-propelled (tracked and wheeled) and ultra light weight 155mm/39 calibre howitzers through imports and local, licensed manufacture have been continually postponed for over a decade. Tenders for almost all these guns have been issued, withdrawn and re-issued, along with several rounds of inconclusive trials. Matters have been further complicated by the MoD completely or partially blacklisting at least four top overseas howitzer manufacturers.
The infantry’s F-INSAS (Future Infantry Soldier as a System) project that includes a fully networked, all-terrain, all-weather personal equipment platform as well as enhanced firepower and mobility for the digitalised battlefield of the future continues to be abnormally behind schedule. Similarly eight-odd Special Forces battalions face an identity crisis, operating without a specialised operational mandate, organisational support or “dedicated budget” resulting in piecemeal and incomplete weapon and equipment packages.
Adding to the Infantry’s woes is the shortages of credible assault rifles (ARs), carbines, ballistic helmets, lightweight bullet proof jackets and night vision devices. These are largely produced indigenously. Last year the MoD issued a global tender for 66,000, 5.56 mm ARs for an estimated $ 700 million to replace the locally designed Indian Small Arms System (INSAS). The eventual requirement for the proposed AR is expected to be around 2 million units for use not only by the army but also the paramilitary forces and the numerous provincial police forces in a project estimated to cost around $3 billion.
Other infantry shortages include; close quarter battle carbines, general purpose machine guns, light-weight anti-materiel rifles, mine protected vehicles, snow scooters for use at heights above 21,000 feet in Siachen, 390,000 ballistic helmets, over 30,000 third generation NVDs, 180,000 lightweight bullet proof jackets together with other assorted ordnance including new generation grenades.
Similar is the story of air defence. The bulk of the army’s air defence guns – Bofors L 70s and the Soviet Zu-23-2s and ZUS-23-4s and missiles like the Russian OSA-AK and Kradvat – date back 30-40 years and need replacing. The Army Aviation also faces similar shortages. There is an urgent need to replace obsolete aviation assets like the Chetak and Cheetah helicopters. Acquisition of 197 helicopters under the Army Aviation Corps Vision 2017 was postponed after the procurement of Eurocopter AS 550 C3 Fennec was scrapped in November 2007. Four years later after trials, evaluation and negotiation the contract is under re-assessment featuring Russia’s Kamov 226 and Eurocopter’s AS 550 models, with little chance of early conclusion.
Addressing Army’s Modernization Needs ::
The major issue that emerges is how will the army get out of the vicious cycle of delays in procurement, and get its modernisation plans back on track. Is it feasible to undertake an all encompassing procurement backed by indigenous production taking the transfer of technology (TOT) route? What are the likely constraints?
Let us take a look at the budgetary support first? The Defence Budget for 2014-15 has an allocation of Rs. 2, 29,000 crores ($38 billion) an increase of 12 per cent over the previous year’s allocation. The capital outlay is Rs.94, 588 crores ($15.7 billion), and the remaining allocation of Rs. 1, 34,412 crores is the revenue outlay. The sub allocation of capital outlay to Army is Rs. 20, 655 crores, Navy Rs. 22, 312 crores, Air force Rs. 31,818 crores, DRDO Rs.9298 crores and modernization of Ordnance Factories (OFs) Rs. 1, 207 crores. While the figures might look impressive it needs to be noted that fairly large amount of capital outlays get consumed by committed liabilities leaving fairly modest amounts for new procurements.
Second, even if the money was available how can the army make up such huge shortages in any acceptable time frame? Procurement procedures, deciding on vendors for transfer of technology, issues regarding off sets, participation of the private sector and above all skill development are long drawn process which in the best case can take anything from 5 to 7 years.
To deal with the problem two critical aspects need to be addressed: One, the nature of future threats both in short-and-medium-to-long-terms basis. If the trigger for conflicts is likely to be unacceptable provocation requiring immediate military response; this requires basic level of preparedness and modernization to deal with such contingencies. Two, the long-term capability needs require a more nuanced and detailed induction perspective more attuned to R&D, technology transfers and indigenous production, etc. The essential take away from the above analysis is two-fold – laying down induction priorities and tri service synergy.
[Author Brigadier (Retd.) Arun Sahgal, PhD, is Deputy Director Research and Head, Centre for Strategic Studies and Simulation, at the United Service Institution of India. He is a member of National Task Force on Net Assessment and Simulation, under the NSCS, Government of India.]
 
Source : Defence News