Showing posts with label semco. Show all posts
Showing posts with label semco. Show all posts

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

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

Thursday, 11 September 2014

11 Unbelievable Weapons That Only America And Its Closest Allies Have

U.S. policymakers are girding the American public for a long fight against ISIS, with Secretary of State John Kerry saying that the jihadists could take several years to defeat.
ISIS has one of the most extensive arsenals of any non-state armed group in modern history. But even if not all of their weaponry is applicable to the fight against extremists in the Middle East, it’s worth remembering that the U.S. and its partners still have the overwhelming advantage in hardware.
And it’s not just an advantage over nonstate groups like ISIS.
The U.S. is in possession of a range of weapons that the rest of the world simply doesn’t have.

Weapons like the MQ9 Reaper Drone, the Laser Avenger and the ADAPTIV cloaking give U.S. troops the a leg-up on any battlefield around the world – including in the ongoing battle against jihadist groups across the Middle East.

Monday, 1 September 2014

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

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

Saturday, 9 August 2014

FDI in defence may go up to 100% if CEO is Indian

Global defence equipment majors such as BAE Systems and Lockheed Martin could set up manufacturing units in India and bring in foreign direct investment (FDI) exceeding 49 per cent, provided the company’s chief executive officer (CEO) is Indian.
As the objective was to let only serious players enter the market, the defence FDI policy approved by the Cabinet on Wednesday categorically stated investee companies should be self-sufficient in product designing and have maintenance and life cycle support facilities for the products they manufactured here, said a senior department of industrial policy and promotion (DIPP) official.
The Union Cabinet had approved an increase in the composite foreign investment cap in the defence sector from 26 per cent to 49 per cent. For investment exceeding 49 per cent, the Cabinet Committee on Security (CCS) will clear applications on a case-by-case basis.
“It could go up from 49 to 100 per cent, depending on modern and state-of-the-art technology, with the approval of the CCS,” said the DIPP official.
The CCS might consider such proposals only in rare cases in which original equipment manufacturers such as BAE Systems, Lockheed Martin, Airbus Group and Sikorsky intend to set up manufacturing units here.
This is aimed at ensuring only top defence original equipment manufacturers, with robust and proven track records, enter the market, with large-scale investment proposals. The government is hopeful this will not only lead to more manufacturing facilities in the country, but also ensure the life cycle of products is catered to by foreign companies.
The CCS will see to it that the management and control remains with Indian companies in case the FDI exceeds 49 per cent, more so in case it is more than 51 per cent, on a case-by-case basis. The official said in these cases, the CEO had to be Indian.
However, experts say subjective norms such as modern and state-of-the-art technology, self-sufficiency in product designing and maintenance and life cycle facilities will be hurdles to attracting FDI.
Amber Dubey, partner and head of aerospace and defence, KPMG in India, said, “Subjective conditions such as local design, maintenance repair and overhaul, lifecycle support facility and state-of-the-art technology run the risk of interpretation, delays, misuse and litigation. Once an original equipment manufacturer wins a competitive tender, market forces will force these to be transferred to India in stages.” 
Putting onerous preconditions ended up discouraging serious investors, Dubey said, adding the government could, instead, bring in practical checks and balances that would help build a strong defence industrial base in India through 10-15 years. 
“The CEO has to be an Indian national by default, from the perspective of national security and individual accountability. It would be practically difficult to get a CEO of foreign nationality extradited to India and prosecuted in case of an adverse event,” he said. 
Officials said all foreign institutional investment up to 24 per cent would be allowed under the automatic route. The DIPP official said proposals related to FDI exceeding 26 per cent would be approved on a case-to-case basis, apparently due to “national security concerns, as it (defence) is a highly sensitive sector”. 
Since the Indian defence sector was opened to private companies in 2001, barely $5 million of FDI has flowed into it, according to official statistics.
Nayanima Basu in New Delhi

Source:

Thursday, 7 August 2014

US eyes big-ticket arms deals during Hagel’s visit

With US Defense Secretary Chuck Hagel set to visit India tomorrow, noted American experts said his maiden trip to the country, in the early days of the new government, will give a much-needed thrust to the Indo-US defense ties.
Hagel, the second US cabinet minister to meet Prime Minister Narendra Modi, this week, will be accompanied by a high-power delegation of military leadership.
The Defense Secretary, during his three-day visit will hold talks with Defence Minister Arun Jaitley, and is also expected to meet National Security Advisor Ajit K Doval and External Affairs Minister Sushma Swaraj.“The purpose of this trip is to nurture the relationship and not to ink any deal,” Pentagon Press Secretary, Rear Admiral John Kirby told PTI ahead of the trip.
Hagel’s meetings will focus on the converging interests of India and the US in the Asia Pacific, their common interests in Afghanistan and initiatives to strengthen bilateral defense cooperation, including military exercises, defense, trade, co-production and co-development, and research and new technologies, Kirby said.
Assistant Secretary of State for Political Military Affairs, Puneet Talwar will also accompany Hagel.
“Bilateral defence ties are stronger than they have ever been, and poised to deepen further,” said Alyssa Ayres, senior fellow for India, Pakistan, and South Asia at the Council on Foreign Relation.
“On matters of strategy, a high-fidelity conversation between Hagel and Jaitley about regional security will build confidence between the two new counterparts,” Ayres said.
According to Richard M Rossow, Wadhwani Chair in US India Policy Studies, at the Center for Strategic and International Studies, India US defense ties have been the ballast for the relationship in the last year.
“Losing the MMRCA bid was painful, but the Department of Defense rebounded quickly, launching the Defense Trade Technology Initiative (DTTI). Defense sales by American firms are increasing, and joint exercises – highlighted by the recent Exercise Malabar,” he said.
“Anything really big that is close to ready for announcement would typically be held for when the two heads of state meet in September,” Rossow said. 
Source: Defencenews

Indian Union cabinet approves FDI in defence, railways

The Union Cabinet on Wednesday approved a proposal to raise the cap on Foreign Direct Investment (FDI) in the defence sector from 26% to 49%, a move aimed at accelerating indigenisation and bringing in modern technologies to meet the requirements of the armed forces.
Finance minister Arun Jaitley had announced in his budget speech that the FDI cap in defence manufacturing would be increased to 49%, with full Indian management and control through the Foreign Investment Promotion Board (FIPB) route.
Foreign firms haven’t made significant investments or set up defence manufacturing facilities, with the 26% cap on FDI dampening their enthusiasm to pump money into the country.
Barely $5 million of FDI has flowed into India since the defence sector was thrown open to private companies in 2001 by then NDA government.
However, it remains to be seen if lifting the FDI cap to 49% would lead to a significant inflow of foreign investment into the country and lead to greater indigenisation as there are some who have been advocating raising the limit to 74%.
Former defence minister AK Antony had opposed lifting the 26% cap on FDI. He had attacked the NDA government last month for increasing the FDI cap to 49% in the Budget, saying that it would hurt national security.
He had said, “I know a very strong lobby is working. Their demand is 100% FDI in defence. Successive governments since 1991 have overcome such pressure tactics. Their decision not to grant FDI beyond 26% was well thought out.”
However, the commerce ministry under the UPA regime had batted for raising the FDI cap to 74% to encourage foreign firms to invest in India.
100% FDI in railways
The government also approved a proposal to allow 100% foreign direct investment (FDI) for building railways infrastructure. Foreign capital in railways was not allowed till now.
However, the new government led by Prime Minister Narendra Modi has been pushing for it to build infrastructure projects such as high-speed railways and railway lines to and from coal mines and ports.
Currently, the cash-strapped railways cannot fund these projects without private participation. Foreign players from Japan and China are said to be keen to participate in building up of the infrastructure.
(With IANS inputs)
Source : Hindustantimes

Wednesday, 6 August 2014

Indian Air Force Not Keen on Rs. 30,000 Crore Indo-French Missile Deal

New Delhi: An Indo-French proposed joint venture expected to be worth around Rs. 30,000 crore to develop short range air defence missiles seems to have run into rough weather as the Indian Air Force feels that its requirements could be met by indigenous Akash surface-to-air missile weapon system.

The proposed joint venture is planned between DRDO and the French missile manufacturer MBDA under which they were planning to produce short-range surface-to-air missile (SR-SAM) systems for the Indian Air Force for the Maitri programme.The Akash air defence missile system has already been developed by the DRDO indigenously and its development trials were completed successfully by the agency in Odisha recently.
The SR-SAM is also planned to be a project in the same class, highly placed sources said in New Delhi.
The IAF feels that when the indigenous system meets the requirements of the force, then there is no requirement for importing or co-developing a similar system, they said.
As per the proposed SR-SAM project, the IAF had to induct 49 Missile Firing Units (MFUs) of the co-developed missiles.
The IAF has already placed orders for eight squadrons of the Akash surface-to-air missile and it would require to place orders for another 25 squadrons of the weapon systems to meet its complete requirement of air defence missiles of this range, the sources said.
The induction would also save a lot of foreign exchange and help in expanding the indigenous missile production industry in view of the large orders to be placed, they said.
The negotiations for the SR-SAM project were started in 2007-08 and it was discussed in detail in parleys between the Indian and French government at highest levels during visits by senior dignitaries to each other’s country.
During talks between French President Francois Hollande and the then Prime Minister Manmohan Singh in January 2013, the two sides had stated that negotiations for finalisation of the joint development programme have been concluded.
The indigenously developed Akash missile, with a 27-km range and an effective ceiling of 15 km, was recently test fired from Integrated Test Range in Balasore district in Odisha.
The Akash air defence weapon system has been designed, developed and led to production by DRDO for defending and protecting important assets of the country from penetrating aerial attacks.
The missile is planned to be inducted in to the Army and the Air Force.
It was developed by the DRDO as part of the integrated missile development programme under which Agni, Prithvi, Trishul and Nag missile systems were to be developed.
Source : defencenews.in

Friday, 1 August 2014

General Dalbir Singh Suhag Takes Over As New Indian Army Chief

General Dalbir Singh Suhag today took charge as India’s new army chief, succeeding General Bikram Singh, who has retired. Lt. Gen. Suhag was appointed chief in May by the outgoing UPA government despite protests from former army chief, General VK Singh, and the BJP.
General Dalbir Singh Suhag today took charge as India’s new army chief, succeeding General Bikram Singh, who has retired.
Lt. Gen. Suhag was appointed chief in May by the outgoing UPA government despite protests from former army chief, General VK Singh, and the BJP.
59-year-old Lt. General Suhag, a Gurkha officer who had participated in the 1987 Indian Peace Keeping Force operation in Sri Lanka, will have 30-month tenure.
He comes from a family of soldiers.
A village in Jhajjar, Haryana, is celebrating the rise of the boy they knew as fearless.
“He had a sharp brain and worked hard. He has achieved all this because of his hard work. He was fearless,” his mother said. Asked if she was happy, she said, “When my son has reached such great heights…of course I am.”
His father Rajpal Singh Suhag is a retired flying officer.
“Generations of our family have been in the army. So he also had the desire to serve the nation. I was in the army, my grandfather and great grandfather were also in the army,” the former soldier said with pride, sitting in a room filled with medals and trophies.
Lt. General Suhag was made the Vice Chief of Army Staff in December last year. Before this he was the Eastern Army Commander.
He was at the centre of a controversy after a vigilance ban on him by then army chief General VK Singh in connection with an intelligence operation in Assam.
The ban was removed after General Bikram Singh took over in May, 2012.
General VK Singh is currently a minister in the BJP-led government. The BJP had questioned what it called the UPA’s alacrity to appoint Lt General Suhag and had insisted that the matter be left to the next government.
Soon after the BJP took power, however, Defence Minister Arun Jaitley said the appointment would not be scrapped.
Lt. General Suhag also commanded 53 Infantry Brigade engaged in counter insurgency operations in the Kashmir Valley in 2003-2005.
An alumnus of Sainik School, Chittorgarh, he joined National Defence Academy in 1970 and was commissioned in June 1974.

Source : Defence News

Wednesday, 30 July 2014

Indian Defense is in the air again

Defense is in the air again. There is a palpable sign of excitement amongst the Industry players who are suddenly awake to new sense of anticipation as far as defence sector is concerned. After a lull of almost a decade where inaction at large and negative action to some extent was the norm, the industry is looking forward to slew of measures from the new government to kick start the sector out of its deep slumber. And so far government has made right kind of noises. In fact, the new BJP led government’s manifesto explicitly envisages India as an exporter of defense equipments over the next decade. Government has already stuck a right note by increasing FDI in defence to 49% and also enhanced capital expenditure budget by 20%. Well, what it means for domestic defence players? Let’s take a deep breath and soak in the following facts:
a) According to a recent report by a reputed financial house, given Mr. Narendra Modi’s push to reduce import dependence in defence equipments and also to make India self-reliant, India’s likely defence outlay is estimated at USD 248 billion over next decade.
b) According to another report by KPMG, the defence budget is likely to grow at CAGR of 8% to reach $64 billion by 2020. The growth is to be primarily driven by capital expenditure.
The above figures suggest a huge opportunity for not only foreign players but more significantly even for domestic players, given the present government intent to promote the domestic defense industry as also to reduce dependence on imports.
Now, are these mere numbers or are we staring at a tremendous business opportunity?
The anecdotal data as well as common sense approach suggest, the later.
a) NDA has always been known to promote private business enterprise and the current PM is known for his “Gujarat Model” that has a strong place for private enterprise.
b) BJP intends to have a clear focus on Indian Defence with a vision to make it self- reliant & import independent.
c) Govt also clearly intends to promote domestic defence manufacturing that serve three purposes:
  1. It revs up the Indian Manufacturing sector and help aid our economy
  2. Create much needed employment for youth and
  3. Takes a significant step towards its ultimate goal of being self-reliant in defence.
stsplNo doubt that Indian top business houses like TATA, RIL, Mahindra, L&T are aggressively eyeing defense as a sunrise sector for coming decade. It is noteworthy that currently Indian Domestic defence manufacturing is distinctly dominated by Public Sector (DPSU) & Govt (OFB) which together account for 90% of defence manufacturing. Here, it is also noteworthy that opening up of largely govt dominated sectors in the past has meant huge business opportunities for private sector, teleocm, media and Aviation being the cases in point.

The above argument clearly suggests a huge door (not window) of opportunities for private enterprises in this now rightly called “Sunrise Sector”.

Tuesday, 22 July 2014

Defence could be sunrise industry for Indian firms in the next decade

With Prime Minister Narendra Modi’s push to reduce import dependence in defence equipment, India’s likely defence outlay is estimated at $248 billion over the next 10 years, according to the report.

  • Mumbai: Defence could be the sunrise industry of the next decade for Indian companies, according to a report released by Edelweiss Securities Ltd on 18 July. And Indian conglomerates such as the Tata group, Reliance Industries Ltd (RIL), Larsen and Toubro Ltd (L&T), and Mahindra Group are increasingly forging partnerships with global defence companies, and are “heavily enhancing production bases in the defence and aerospace businesses as India is on the cusp of a major spending drive to modernise its armed forces”, the report said. 
With Prime Minister Narendra Modi’s push to reduce import dependence in defence equipment, India’s likely defence outlay is estimated at $248 billion over the next 10 years, according to the report. In the budget unveiled on 10 July, the government proposed to raise the foreign direct investment limit in defence production to 49% from 26%.
On Saturday, Press Trust of India (PTI) reported that the government cleared procurement proposals worth over Rs.21,000 crore and also approved a project for the production of transport aircraft, which is open only to Indian private sector companies. Among the major proposals to receive approval is a Rs.9,000 crore tender to provide five fleet support ships for the Indian Navy, for which the request for proposal (RFP) would be issued to all public and private sector shipyards, defence ministry officials said.
The majority of the proposals cleared would involve only Indian public and private sector firms and are aimed at increasing the indigenization of military hardware, PTI reported. The Indian defence sector will be a significant opportunity for both foreign and domestic players, given the government’s intent to promote the domestic defence industry via a fresh dose of defence reforms.
The minimum opportunity for domestic entities is worth $75 billion, given the 30% offset requirement, the Edelweiss report said. India’s defence offset policy mandates that foreign contractors source components and systems from local vendors for at least 30% of the value of orders worth more than Rs.300 crore that they get from India. Other industry experts have a similar view.
According to KPMG, the defence ministry expects the defence budget to grow at a compounded annual growth rate of 8% to touch $64 billion in the financial year 2020. The growth will primarily be driven by capital expenditure, the component of the defence budget used for creation of assets and expenditure on procurement of new equipment. The offset opportunities are expected to be around $15 billion within the next 10-15 years, assuming that the proposed acquisitions which are under different stages are completed on time, according to KPMG.
“The new BJP-led government’s manifesto explicitly envisages India as an exporter of defence equipment over the next decade. The government has done away with the requirement of licences for defence manufacturing for all but 16 items. Further, in Budget 2014-15, it has increased FDI (foreign direct investment) in defence to 49% and also enhanced capital expenditure budget by 20%,” the Edelweiss report said. Domestic defence manufacturing is dominated by defence public sector undertakings (DPSU) and Ordnance Factories Board (OFB), which together have an 80-90% share of domestic defence manufacturing.
However, various private sector companies have been involved in a small way with several defence projects over the past years. Larsen & Toubro, the Tata group, Pipavav Defence and Offshore Engineering Ltd, among others, have tied up with global defence companies and have created infrastructure required to take on bigger roles in the defence space.
“These companies are yet to make a significant impact given the tardy processes involved in bagging defence orders…(However,) we believe defence could be the sunrise industry of the next decade for Indian companies,” the Edelweiss Securities report said. For instance, Mukesh Ambani-controlled RIL has been nurturing its ambitions in the defence space over the past few years and is likely to be a formidable entity in the aerospace business with several tie-ups in place, according to the research report.
The report said RIL is currently incubating the defence business, which looks promising. RIL did not offer any comments for the story. RIL had set up two defence subsidiaries—Reliance Aerospace Technologies and Reliance Security Solutions—in 2011. The group is set to enter the defence space by investing and signing new deals with global original equipment manufacturers (OEMs) primarily towards offset arrangement of defence equipment, the report said. RIL had recently signed an agreement with Dassault Aviation (France) for medium-multi-role combat aircraft (MMRCA) towards the offsets clause. RIL has also signed agreements with Raytheon Co. and Boeing Co. of the US and Siemens AG of Germany for homeland security systems.
Rival Tata group has also further fortified its presence in the defence space. “Chairman Cyrus Mistry’s strategy is to increase the Tata group’s footprint in the sectors opened up by the government, namely, defence and aerospace,” the Edelweiss report said. In June, Mint had reported that the $100 billion Tata group’s strategic aerospace and defence arm, Tata Advanced Systems Ltd (TASL), has scaled up operations across its seven lines of manufacturing and was preparing to bid for building full aircraft in the next three to five years.
To start with, TASL is eyeing a defence ministry contract to manufacture 56 military transport planes to replace an ageing fleet of Avro jets with the Indian Air Force at an estimated cost of Rs.11,900 crore. The Mahindra Group began its Mahindra Defense Systems division in 2000; this was later carved out as a separate company in July 2012. The group expects most of the projects to come from artillery systems and armoured vehicles. It hopes to ramp up revenues to $430 million by FY16E from the current $51 million.
Source : Defense News

Monday, 21 July 2014

Jaitley Clears Rs 34,260 Crore Military Deals at One Stroke

Two months after Narendra Modi took charge as Prime Minister, his pre-poll promise of quicker decisions on arms purchases was put into action, with Finance-cum-Defence Minister Arun Jaitley on Saturday chairing his first military acquisition meeting that cleared procurement, cumulatively worth `34,260 crore, at one go.
#semcotech
NEW DELHI: Two months after Narendra Modi took charge as Prime Minister, his pre-poll promise of quicker decisions on arms purchases was put into action, with Finance-cum-Defence Minister Arun Jaitley on Saturday chairing his first military acquisition meeting that cleared procurement, cumulatively worth `34,260 crore, at one go.
And the Defence Acquisition Council (DAC) gave the go-ahead for purchase and tendering of military ware for all the three services, of which a majority were warships meant for the Navy and the Coast Guard, according to Ministry of Defence (MoD) sources.
The meeting, held in the middle of the Budget session, was attended by Minister of State for Defence Rao Inderjit Singh, Army Chief Bikram Singh, IAF Chief Arup Raha, Navy Chief Robin Dhowan, Defence Secretary R K Mathur and other Department Secretaries of the MoD. According to sources, the DAC cleared a `15,000-crore tender for the purchase of 56 transport aircraft, to replace the obsolete Avro planes of the Air Force to be a ‘private sector only’ venture.
The Avro replacement tender was issued in May 2013, but was put on hold by the then Defence Minister A K Antony-led DAC in December, following protests from his ministerial colleagues for keeping the public sector Hindustan Aeronautics Limited (HAL) out of the bidding process. The argument against the ‘private sector only’ clause was that none of the Indian private sector firms involved in aerospace had adequate manufacturing facilities for an Avro-sized plane. The small requirement for such planes made the huge investments on building a production unit unviable, in terms of profitability.
Under the tender clause, an original equipment manufacturer of foreign origin should bid for the contract after tying up with an Indian Production Agency, which should be an Indian private sector company. The first 16 planes would be manufactured abroad by the winning foreign vendor, but it has to transfer technology to its Indian partner for manufacturing the remaining 40 planes. Jaitley-led DAC also decided to push through the Naval requirement for five fleet support ships at a cost of `9,000 crore, apart from patrol vessels and fast patrol vessels, numbering five each, for the Coast Guard, at a cost of `2,000 crore and `360 crore respectively, sources said. Apart from these, the Navy and the Coast Guard’s proposal to buy 32 Advanced Light Helicopters, Dhruv, from HAL, worth `7,000 crore, got the DAC nod.
The requirement for Army, Navy and IAF, for search and rescue equipment worth `900 crore were also cleared. Jaitley had, in the general budget announced earlier this month, allocated `94,588 crore for defence capital expenditure.
 

Source : Defense News

Thursday, 17 July 2014

Modi seeks Putin’s support to strengthen defence & bilateral ties

“Even a child in India, if asked who’s India’s best friend, will reply it is Russia because Russia has been with India in times of crisis… I felt I was in India when I visited Russia’s Astrakan region,” PM Narendra Modi told President Vladimir Putin when they met on the sidelines of the BRICS Summit.
“Even a child in India, if asked who’s India’s best friend, will reply it is Russia because Russia has been with India in times of crisis… I felt I was in India when I visited Russia’s Astrakan region,” Prime Minister Narendra Modi told President Vladimir Putin when they met on the sidelines of the BRICS Summit to expand the scope of bilateral strategic partnership that has stood the test of time.
During the 40-minute meeting, Modi sought Putin’s support to broaden cooperation in the defence, nuclear and energy sectors. As Putin offered help to build more nuclear plants in India, Modi invited the Russian strongman to visit Kudankulam power project when he visits the country in December for the annual Summit. Putin responded to the invitation positively.
This was the first meeting between the two leaders after Modi became Prime Minister.
The Unit-I at the Kudankulam project has started producing electricity and the second one will become operational in December. Moscow has already extended Line of Credit for Units three and four at the same project and four more reactors could be added at Kudankulam.
India and Russia have drawn up a roadmap for 22 more nuclear reactors in the country.
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Modi described Russia as India’s top foreign policy priority and said he would visit Moscow next year, sources in the Prime Minister’s Office told ET. The two leaders met late on Tuesday night at Fortaleza after their Monday meeting was deferred because of Putin’s engagements in capital Brasilia. Putin congratulated Modi on his victory in the recent elections.
Interestingly, the Indian PM spoke in Hindi during the meeting, which is not a hindrance for many Russian diplomats who are fluent with the language.
Modi, who had met Putin in 2001 in Moscow, said India’s relationship with Russia is a time-tested one and appreciates that it has been so since early independence. It’s also little known that Modi had visited Russia thrice in the past as Gujarat Chief Minister. Emphasising the need for greater people-to-people contact, Modi said there was need to look at a liberal visa regime, especially for students going abroad for studies.
President Putin acknowledged that the issue needs to be looked into, MEA spokesman Syed Akbaruddin told reporters after the meeting.
Modi fondly recalled his visit to Russia’s Astrakan region in his early days as Gujarat CM, which has ties with that area. Talking about the visit, he said that he felt as if he was in India. Putin, on his part, said Russia places its relationship with India high enough in the strategic framework.
Modi appreciated Putin’s speech at the BRICS Summit, saying it was clear on issues like reforms of the UN Security Council and international financial organisations. The two leaders also discussed regional and global challenges, including the situation in Iraq, Syria and Afghanistan.
A number of important bilateral fora will take place by the end of this year, such as the sessions on two Inter-governmental commissions — on military cooperation and on trade and economy — with Defence Minister S Shoigu and Vice-Premier D Rogozin visiting Delhi.

Foreign Minister S Lavrov will precede the most important political event, the annual Summit, to be held in Delhi in December. A roadmap for the bilateral relations will be fixed at that Summit.

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Thursday, 9 January 2014

The Sukhoi-30 MKI: India’s Two-Front War Ace?

Friday, January 10, 2014
By : Russia India Report
A Report in the Russia and India Report takes a fascinating look at the role of the twin-fin Sukhoi-30 MKI air superiority fighters in the Indian Air Force’s (IAF) combat strategy.
A Report in the Russia and India Report takes a fascinating look at the role of the twin-fin Sukhoi-30 MKI air superiority fighters in the Indian Air Force’s (IAF) combat strategy. The Su-30 MKI is an eminently versatile fighter that is capable of meeting the IAF’s evolving needs, particularly in the context of a nightmare scenario involving a two-front war with Pakistan and China. I recommend Flashpoints readers check out the whole report for a fairly comprehensive description of the Su-30 MKI’s place in India’s air power strategy going forward.The Su-30 is a technological transition away from the dated and retired MiG-21 the IAF relied on for so long, and its speed, 1800 km range, maneuverability, and firepower make it absolutely pivotal in ensuring the IAF’s capability to fight a two-front war. The report cites the IAF’s April 2013 exercises – its largest ever – which involved “as many as 400 combat aircraft plus 200 transport planes and helicopters,” and tested the IAF’s readiness for a two-front war against China and Pakistan.
According to the Times of India, a two front war with Pakistan and China is somewhat of a nightmare scenario for Indian military planners – neither foe’s conventional military capabilities are anything to scoff at. Estimates suggest that China could mobilize 21 fighter squadrons against India from its airbases in Tibet, and Pakistan could deploy “21 to 25 fighter squadrons” against India.
The Su-30 MKI is an “air dominance fighter.” Its large range and capacity for being refueled mid-flight make it the perfect “swing” fighter in a split two-front war that could theoretically take place simultaneously on India’s eastern and western frontiers, according to the Russia and India Report.
Certain Su-30 MKI aircraft are also undergoing structural modifications to allow them to carry an air-launched variant of India’s famed BrahMos hypersonic cruise missile. On this, the report notes that there may be a nuclear angle as well:
There is another ominous angle. India’s Strategic Forces Command (SFC) has asked for 40 nuclear capable strike aircraft to be used conjointly with land-based and submarine launched ballistic missiles. Although it’s not clear whether the IAF or the SFC will operate this mini air force, what is clear is that exactly 40 Su-30 MKIs have been converted to carry the BrahMos. That’s some coincidence.
According to Defense Industry Daily, Russian BrahMos Aerospace Executive Director Alexander Maksichev expects the first test-launch of the BrahMos air-launched variant from a Su-30 MKI to take place sometime this year. A report from July 2013 by the Russia and India Report states that the “air-based BrahMos missile will be different from the other versions because the very platform of the Su-30MKI works on the supersonic speed so it’s no longer necessary to accelerate the missile to the same speed.” The BrahMos variant will undergo significant changes to its chassis and nose cone to reduce weight and improve stability for the dramatically different launch scenario.
The Su-30 MKI alone is, of course, quite limited in preparing India for a two-front conventional war. The effort necessitates a joint effort by the Indian Army and the Air Force. The April 2013 exercises demonstrated the importance of the MiG-29, attack helicopters, mid-air refuellers, drones, and surface-to-air missiles in establishing a robust defensive line for India against a conventional assault by Pakistan and China.
Currently, a quantitative disparity exists between Indian and Chinese Su-30 fleets: China possess 400 total to India’s 272. The arrival of the fifth-generation T-50 PAK FA fighters could remedy this disparity. The report also suggests that the pending purchase of French Rafale fighters could help.

Thursday, 26 December 2013

MoD clears Navy plans to get 16 shallow-water anti-sub vessels

Thursday, December 26, 2013
By : The Tribune
The Defence Acquisition Council headed by A.K. Antony this week accorded Acceptance of Necessity to the Indian Navy for the Rs 13,440 crore project that envisages these vessels as a replacement for the existing Abhay-class corvettes commissioned between 1989 and 1991.
The plans of the Indian Navy to acquire 16 indigenously built shallow-water anti-submarine vessels, for which it has received clearance from the Defence Ministry, takes forward the project that fits into their overall task of defending the long coastline in the changed maritime security environment of the region.The Defence Acquisition Council headed by Defence Minister AK Antony this week accorded Acceptance of Necessity to the Indian Navy for the Rs 13,440 crore project that envisages these vessels as a replacement for the existing Abhay-class corvettes commissioned between 1989 and 1991.
The four vessels — INS Abhay, Ajay, Akshay and Agray — have been in service for over two decades with the Indian Navy. These are customised variants of the Russian Pauk-class corvettes.
The Navy has expressed interest to procure new vessels under the ‘Buy Indian’ category. Under this, Indian shipyards will be asked to build these ships and the yards in turn, can seek design from a foreign partner.
Over the past few years, several Indian companies have shown interest in building ships for the Indian Navy and some of them have entered into collaboration with foreign ship builders. The effort is part of the government move to expand the domestic defence manufacturing base and begin the process of reversing over-dependence on imports.
Explaining the strategic importance of shallow-water anti-submarine vessels, Commodore Ranjit B Rai (retd), former Director, Naval Intelligence and Operations, said: “These will be a replacement for the Abhay class and will provide defence against any special operating vessels (Midgets) including those operated by Pakistan and China close to the harbour.”
The anti-submarine vessels are deployed to tackle and destroy underwater threats and also undertake low-intensity maritime operations. These are equipped with torpedoes and missiles and SONAR detection equipment to ferret out submarines in shallow waters.
The DAC clearance for acquisition of two Deep Submergence Rescue Vessels by the Indian Navy is also long pending. These vessels are required to go under water to bring up the personnel from disabled submarines.
The decision comes in the backdrop of the August 14 INS Sindhurakshak accident in Mumbai and also at a time when the Indian Navy is set to expand its fleet of underwater boats. At present, the Navy operates Kilo, Shishumar and Foxtrot-class submarines with another six Scorpene class — currently being built with French collaboration at Mazagon docks in Mumbai — also scheduled to join the service over the next few years.