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

India, Japan agree to strengthen defense ties

In his first state visit, Indian Prime Minister Narendra Modi has met with a kindred spirit, Japanese Premier Shinzo Abe. The two leaders, wary of China's glowing clout in Asia, have agreed to strengthen defense ties.

semco tech services

During his visit to Japan on Monday, Indian Prime Minister Modi warned Asian powers against territorial expansionism, in a veiled reference to China's ambitions in the region.

"The 18th century situation of expansionism is now visible," Modi said, after holding talks with Japanese Prime Minister Shinzo Abe in the historic city of Kyoto. "Such expansionism would never benefit humanity in the 21st century."

Modi didn't specifically mention Beijing, but China and India contest several regions along their common border. Abe shares Modi's suspicion of China's intentions in the region. Beijing and Tokyo dispute the Senkaku Islands, called the Diaoyu in Chinese.

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Modi's Japan visit signals strengthening of bilateral ties

Indian PM Narendra Modi will be heading to Japan on his first bilateral visit outside South Asia. Topping his agenda is the modernization of India's infrastructure and military, analyst Rajiv Biswas tells DW. (27.08.2014)

Over the summer, Prime Minister Abe's Cabinet approved a reinterpretation of Japan's pacifist constitution, permitting Tokyo to defend allies and deploy troops abroad for combat missions.

'Strategic, global partnership'

Although Abe and Modi failed to set up a permanent forum for their foreign and defense ministers to hold regular consultations, they did agree to "upgrade and strengthen" their defense ties. Tokyo is keen to sell New Delhi US-2 amphibian aircraft. The two countries also agreed to participate in joint maritime drills, and for Japan to continue participating in US-India drills.

"Together, working hand-in-hand with Prime Minister Modi, I intend to fundamentally strengthen our relationship in every field to elevate our relationship to a special strategic and global partnership," Prime Minister Abe said.

The two leaders also agreed to double Japan's investment in India over the course of five years to a total of 3.5 trillion yen ($33.6 billion, 25.5 billion euros).

slk/kms (AFP, dpa, Reuters)

Source : http://www.dw.de/ 

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. 

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

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

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

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

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:

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

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

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

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.

No 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”.

'India should be more aware of cyber security threats'

NEW DELHI: India should be more aware of cyber security threats and the time to act in this regard is now, an Israeli security solutions firm has said even as it averred that the two countries have many common "opponents".
"I believe India should be more aware of cyber threats. I am sure that once India will be aware of cyber threats, the necessary steps would be taken," Zori Kor, vice president of Israeli firm ASERO Worldwide, said here.
Stressing on the importance of having cyber security, Kor said it was "unfortunate" that the Indian public is not fully aware of threats in this field, which can even have a ripple effect on the economy.
"As the public still doesn't understand how complex the challenge is, may be some decision makers are hesitating whether to take the necessary steps in order to meet the future challenges," said Kor, who is on a visit to India in connection with an upcoming homeland security conference in Israel.
"My recommendation is to start dealing with it (cyber security needs) now because it takes time," said Kor, who recently retired from Israeli Security Agency after 25 years of service in a number of counter-terrorism and protective security posts.
Adding that cyber security is not an area where one size fits all as the environment and threats keep changing from time to time, he said, "If we answer only the current situation, it might not be good enough. We have to think what the bad guy's next step would be in order to answer that."
Talking about the salient features of Israeli security capabilities, he said the country believes in partnership and in sharing knowledge and experience regarding implementation of technological platforms for internal security.
"We are in the same boat. Many of our opponents are unfortunately yours as well because we have good ideas and creativity and so do you. So, whoever is trying to steal good ideas from us might want to steal it from you as well," he said while opining that India was one of the "few friends" that Israel had.
India is now the main export target of the Israeli defence industry; however, both countries avoid revealing details about the scale and nature of their security trade.
In 2012, the Israeli defence ministry announced that the country's defence exports stood at an annual USD 7 billion of which homeland security accounted for about USD 1.5 billion.
Source  : The Economics Times

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

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

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.

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.

International Police Expo 2014, Pragati Maidan, New Delhi

International Police Expo 2014 is the only exhibition which is focused and an interactive platform where the police representatives of different nations and policing equipments suppliers can meet their business opportunities related to police fitness, training, protection and rescue equipments. Here participants can gather and exchange not just knowledge and world views, but also new technologies, solutions and future business partnerships.

Police Welfare & Safety
Technology & Equipments for Attaining Basic Aims of Policing
Traffic Control & Support
Rescue Management Techniques and Equipments
Healthcare & Fitness to Force
IT & Communication
Indian Ordnance Factories and Dealers
Surveillance for Preventive Measures
Safety & Protection to Society
Training for Better Law Compliance

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.

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.

LCA Tejas: A `game changer’ for air defence

December 24, 2013

The induction of the Light Combat Aircraft, Tejas into the Indian Air Force will be a `game changer’ for the country’s air defence preparedness, says Avinash Chander, Scientific Adviser to the Defence Minister. “Though delayed, the India developed fighter aircraft has emerged as a `contemporary aircraft, as good or in a way better than the competitors in its class”, Avinash Chander told Business Line.The LCA signals the country’s indigenous capability to develop a major air-based weapon platform and a step towards achieving self-reliance in aircraft design, fabrication and manufacture. It has laid a sound base for a smooth take off in the efforts to develop more advanced fighter aircraft in the future, Avinash Chander, the Chief of the Defence Research and Development Organisation (DRDO) said.The fighter aircraft, which obtained the Initial Operation Clearance on December 20, is a step away from induction into the IAF to replace the ageing MiG-21 aircraft. The immediate plan was to induct six squadrons of the IAF with the Tejas. This means about 120 aircraft. Already, the IAF has placed orders for two squadrons. Similarly, the Indian Navy will have at least 40 of the naval version of the fighter aircraft.

In the next 10 years, at least 200 LCA numbers are expected to bolster the country’s air strike power. The HAL, which will manufacture these aircraft will provide 16 per year. It has built capacity and will further ramp up production facilities.

The DRDO Chief saw Rs 100,000 crore opportunity in the next decade in the defence aircraft industry for the country. The gradual induction of the LCA will ensure a forex saving to the tune of Rs 50,000 crore. In addition, the savings on life cycle and maintenance costs will be close to that figure in the long run, he explained.

There is tremendous scope for small and medium enterprises to make components and sub-systems and supply to HAL. It will also lead to creation of expertise and industrial infrastructure in the country.

source :http://idrw.org