eye on defense july 2012

36
Indian market assessment: command, control,communications, computer intelligence, surveillance, reconnaissance (C4 ISR) 02 Foreign direct investment in defence: Indian scenario and concerns 10 Offsets in defence and MSMEs 17 Request for information (RFIs) 21 Request for proposal (RFPs) 22 List of industrial licenses (ILs) filed from 01/04/2012 TO 29/02/2012 23 New projects/investments/contracts 24 Joint ventures and alliances 27 Country-level deals and initiatives 28 Industry buzz 29 Sources 33 July 2012 Eye on defence Dear readers, It is widely believed that in future the wars and battles will be fought more on the digital battlefield than the conventional battlefields of the plains, mountains and deserts. The winning army, will be the one who would take over the entire gamut of the enemy’s communications and ensure that there is simply no capability or resource that enables the enemy to respond to the threat in a coordinated and suitable manner. This will leave the enemy in complete disarray. A somewhat similar scenario was visible in the second US-Iraq war. Taking this into cognizance, we have tried to ascertain the C4ISR market in India and also dwelled, to some extent, on its various constituents. There has been an increasing debate in various government, public and private forums over the pros and cons of permitting FDI in excess of the currently stipulated 26% in the defense manufacturing sector. We have tried to put up the arguments of both sides and also for the interest of our readers, have included most, if not all, of the joint-ventures,; agreements; etc that have been signed in the Indian defense sector till date. We have been expecting the revised Defense Offset Policy to be released for sometime now. In the previous issues of the Eye on Defense we have maintained our focus on certain significant aspects that we feel needs to be addressed in the revised policy. In continuance of this effort, we take up the cause of the MSME sector’s participation in the defense manufacturing and services space. We have tried to highlight the impending need for the Government to provide the requisite assistance and opportunity to the constituents of this sector enabling them to have their rightful place and also contribute towards building indigenous strategic manufacturing capabilities. If you have any suggestions on any of the articles or require any further information on the same, please feel free to get in touch. K. Ganesh Raj Partner and Leader Aerospace and Defence Practice

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Page 1: Eye On Defense  July 2012

• Indianmarketassessment:command,control,communications,computerintelligence,surveillance,reconnaissance(C4ISR)

02

• Foreigndirectinvestmentindefence:Indianscenarioandconcerns

10

• OffsetsindefenceandMSMEs 17

• Requestforinformation(RFIs) 21

• Requestforproposal(RFPs) 22

• Listofindustriallicenses(ILs)filedfrom01/04/2012TO29/02/2012

23

• Newprojects/investments/contracts 24

• Jointventuresandalliances 27

• Country-leveldealsandinitiatives 28

• Industrybuzz 29

• Sources 33

July2012 Eye on defence

Dearreaders,

Itiswidelybelievedthatinfuturethewarsandbattleswillbefoughtmoreonthedigitalbattlefieldthantheconventionalbattlefieldsoftheplains,mountainsanddeserts.Thewinningarmy,willbetheonewhowouldtakeovertheentiregamutoftheenemy’scommunicationsandensurethatthereissimplynocapabilityorresourcethatenablestheenemytorespondtothethreatinacoordinatedandsuitablemanner.Thiswillleavetheenemyincompletedisarray.Asomewhatsimilarscenariowasvisibleinthe

secondUS-Iraqwar.Takingthisintocognizance,wehavetriedtoascertaintheC4ISRmarketinIndiaandalsodwelled,tosomeextent,onitsvariousconstituents.

Therehasbeenanincreasingdebateinvariousgovernment,publicandprivateforumsovertheprosandconsofpermittingFDIinexcessofthecurrentlystipulated26%inthedefensemanufacturingsector.Wehavetriedtoputuptheargumentsofbothsidesandalsofortheinterestofourreaders,haveincludedmost,ifnotall,ofthejoint-ventures,;agreements;etcthathavebeensignedintheIndiandefensesectortilldate.

WehavebeenexpectingtherevisedDefenseOffsetPolicytobereleasedforsometimenow.InthepreviousissuesoftheEyeonDefensewehavemaintainedourfocusoncertainsignificantaspectsthatwefeelneedstobeaddressedintherevisedpolicy.Incontinuanceofthiseffort,wetakeupthecauseoftheMSMEsector’sparticipationinthedefensemanufacturingandservicesspace.WehavetriedtohighlighttheimpendingneedfortheGovernmenttoprovidetherequisiteassistanceandopportunitytotheconstituentsofthissectorenablingthemtohavetheirrightfulplaceandalsocontributetowardsbuildingindigenousstrategicmanufacturingcapabilities.

Ifyouhaveanysuggestionsonanyofthearticlesorrequireanyfurtherinformationonthesame,pleasefeelfreetogetintouch.

K. Ganesh RajPartnerandLeaderAerospaceandDefencePractice

Page 2: Eye On Defense  July 2012

(C4 ISR) Indian market assessment

Introduction

Tooperateinaneraofinformationwarfare(IW)/networkcentricwarfare(NCW),incomplexgeopoliticalenvironment,decisionmakersandwarfightersneedqualityintelligence.Accurateandtimelyinformationismission-criticaltoaddresscomplexbattlefieldandpeacekeepingrequirements.Intelligence,Surveil-lance,Reconnaissance(ISR)refersto“integratedcapabilitiestocollect,process,exploitanddis-seminateaccurateandtimelyinformationthatprovidesthebattlespaceawarenessnecessarytosuccessfullyplanandconductoperations.”

Thisrequirestheseamlessintegrationofsensors,commandandcontrol,andadvancedinformationsystems,network-centricISRsolutionstodeliveractionableintelligenceinrealtime.ThegivenfiguredepictsatypicalISR-basedNCWbattlefieldscenario.MostoftheISRresourcesutilizeeitherairborneplatformsorareusedbyairpower.

Source:Q-TechSynergy.

Command,control,communications,computerintelligence,surveillance,reconnaissance

Tier 3 Satellite Based

Tier 2 Airborne Based

Tier 1 Ground Based

Source: Q-Tech Synergy

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Typical elements of a C4ISTAR set up

UAVs and aerostats

Surveillance equipment

Night vision devicesRadars

and sensors

Intermsoffunction,,theairborneISRmarketcanbeclassifiedintofourmajorsegments,basedonrole,apartfrominadditiontotheC4(command,control,communicationsandcomputer):

• Airborneearlywarning(AEW)

• Airbornegroundsurveillance(AGS)

• Maritimepatrol(MP)

• SIGNIT

Global market sizeTheC4market(command,control,communications,computer,intelligence),consistingoflandspace,navalandairbornesystems,wasvaluedataboutUS$53.2billionin2011.ItisexpectedtotouchUS$63.7billionapproximatelyin2012.TheC4ISRconstitutes5%oftheglobaldefencespending.TheglobalairborneISRmarket,includingnewacquisitionsandupgrades,isestimatedtobeworthUS$17.3billionin2011,increasingataCAGRof2.5%.Currently,theUSistheprincipalmarketforISRsystems,butasemergingeconomiessuchasChinaandIndiaseektoimprovetheirmilitarycapabilities,theywillnecessarilyfocusonthisaspectofmodernwarfare.

Global projected C4 and C4ISR market for 2011

Source: Q-Tech Synergy

ISR US$17.3bn

25%

C4 US$53.2bn

75%

C4US$53.2bn

75%

ISRUS$17.3bn

25%

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Thetacticalcommand,control,communicationandinformationsystem(TACC3I),whichisessentiallythemainstayoftheArmy’sC4ISR,isploddingalong.TheTACC3Icomprisestheartillerycommand,controlandcommunicationsystem(ACCCS),airdefencecontrolandreportingsystem(ADC&RS),battlefieldsurveillancesystem(BSS),battlefieldmanagementsystem(BMS),allofwhichareinvariousstagesofdevelopment.

TheIAFplanstoputinplacefiveintegratedaircommandandcontrolsystems(IACCS)throughanindi-genousroute,whichwhenfullydeveloped,areexpectedtoputallsensorplatformsandweaponsystemsonacommongrid,interlinkingitsfiveoperationalcommandsinafullynetworkedarchitecture.TheAirForceNetwork(AFNET)isattheheartoftheairforce’scommunicationnetwork.ItisadedicatedIAFfiber-opticsnetworkthatoffersupto500MBPSencrypted,unjammablebandwidth.Amilitarysatelliteisexpectedtobelaunchednextyear,interalia,tostreamlinethemassivedataflow.

TheNavy,amongallthethreedefenceservices,isthemostadvancedserviceindeployingC4I2andair-borneISRcomponents.Itisalreadyintheprocessofimplementingconceptssuchasnetwork-centricwarfare,integratedcommandandcontrol,systemofsystemsandglobalinformationgrid.TheIndianSpaceResearchOrganization(ISRO)istolaunchanindigenouslybuiltgeo-stationarysatellitefortheNavy.ThededicatedsatelliteisaimedatbolsteringtheC4ISRcapabilitiesoftheIndianNavy.ThiswouldalsohelpunifythescatteredassetsoftheNavyatdifferentgeographicallocations.TheprocurementofmoreUAVs,maritimepatrolaircraft,sonarsandradarsisinthepipelinethroughindigenousandforeignprocurements,whichwillfurtherstrengthenitsISRcapability.However,withinitsthreeservices,thereexistsanissueonintegrationtoleverageawidearrayofISRcapability.

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GivenbelowaresomeofthemajorindigenousandforeignISRsystemswiththedefenceservices:

Airborne early warning (AEW)

Airborne ground surveillance (AGS)

DRDO’sAirawatPhalconAWACS*KamovKa-31*

Radar/Sensors UAV Optoelectronic

SwordfishLongRangeTrackingRadar

INDRAseriesof2Dradars

RajendraRadar3D

CentralAcquisitionRadar(3D-CAR)planararraytrack-ingradar

3DAESALongRangeTrackingRadar

LowLevelLightweightRa-dar(LLLR)

MediumPowerRadar3dActivePhasedArrayRadar

Revathi3DNavalSurveil-lanceRadar

EL/M-2070*

GS-100*

EL/M-2238STAR*

EL/M-2083APR*

RAN-30X*

RAN-40L*

DA-05*

LW-08*

DA-08*

Fregat/TopPlate*

Garpun/PlankShave*

EL/M-2075Phalcon*

Rustom

Akashdeep

Gagan

Nirbhay

Netra,

Nishant

Lakshya

HeronI,II*

Harop*

SearcherI,II*

HarpyII*

(Indigenous+ForeignProcurements)

NightVisionDevices

NightSights

ThermalImagers

Maritimepatrol(MP) Signalsintelligence(SIGINT)

EL/M-2022*

TupolevTU-142M*

AN/APY-10*

P8I*

IIyushinIL-38*

DO228-201(ELINT)*

Mig21MRS*

Mig23BNS*

B707*

Note: (*) are foreign procurements

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Current market size of C4ISR systems in IndiaGarneringthepowerofC4ISRsystems,Indiandefenceestablishmentsaremovingfromplatform-centricoperationstonet-centricoperationsandgearingupfornewandimprovedC4ISRtechnologies,thenewthrustarea,withanaveragespendof5%allocation.ItisapprehendedthatIndiaprocuredUS$2.76billionISRsystemsfrom2007to2011,majorlycomprisingsurveillancesystems—UAVs,radars,AEWaircraftsandchoppersfromabroad.

Aniticipated share of C4ISR in Indian Defence expenditure

Indian imports including C4ISR (2007–2011) (in US$ million)

Source: Q-Tech Synergy. Source: Compiled from SIPRI.

Other25%

Air30%

C4ISR5%

R&D10%

Land15%

Naval15%

(294, 2%)Air Defence

Aircraft(9031, 60%)

Land(1275, 9%)

Missiles (958, 6%)

ISR (2768, 19%)

Ships (361, 2%)

Engines (238, 2%)

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Market potentialDuringtheperiod2012–2020,itisanticipatedthatIndiawillbespendingawhoppingUS$19.6billionap-proximatelyonC4ISRsystemsandUS$16.77onISRsystemsalone.Withanemphasisonthedefenceservicesbecomingnetwork-centric,moreindigenousandforeignprocurementswillbeinthepipeline.

Market size of ISR submarkets (2012–2020)

3.7 5.6 4.45 3

AEW&C Airborne Ground surveillance

Maritime Patrol SIGINT (ELINT Aircraft)

Am

ount

in $

bill

ion

Market size of ISR systems in India (2012–2020)

US$16.717%

US$17.2218%

US$26.5327%

US$37.3538%

ISR

Ground Vehicle

Ships

Aircraft

ThemarketforISRsystemswilldefinitelybegrowingatarobustrateyear-by-year,offeringlucrativeop-portunitiestolocalandforeignvendors.WhileAGSdominates,MaritimePatrolisforecasttoexperiencerobustgrowththroughoutthereportingperiod,followedbyAEW&CSystems.

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Manned systems lead even as unmanned systems riseProjectionsindicatethatIndiawillspendaboutUS$11.15billionduring2012–2020onacquisitionofmannedISRplatforms,whileasfortheunmannedISRplatforms;itisexpectedtospendapproximatelyUS$2billionduring2012–2020.

Thebelowgiventableshowssomeofthemajorfutureacquisitionsinthesesegmentsduring2012–2020

Manned ISR platforms Unmanned ISR platforms

Maritime patrol acquisitions Nos. UAVs/UAS acquisitions Nos.

Medium-rangemaritimereconnaissance(MRMR)aircraft

9+6 MiniandmacroUAVforArmy 500

High-altitudelongendurance(Hale)UAVfortheIndianArmy

---

Long-rangemaritimereconnaissance(LRMR)aircraft/P8I

4+12 UAVmissionsimulatorfortheIndianArmy

---

Amphibiousaircraft 9 MiniUAVforArmy ---

MPA 6 AerostatsystemsfortheArmy 12

AWACS acquisitions Nos. UnmannedcombataerialvehiclesforIAF

---

PhalconAWACS 2+5 MicrounmannedaerialsystemsforIAFandIN

95

IndigenousAWACS–India 2+4 SmallVTOLMINIUASforIAF ---

Carrier-basedairborneearlywarningandcontrol(AEWandC)aircraftfortheIndianNavy

4 AerostatsystemsforIAF 3

SIGINT (ELINT aircraft) acquisitions

Nos. High-altitudelongenduranceUAV(HALEUAV)fortheNavy

---

ELINTaircraftwithSIGNITcapability

9 NavalRotaryWingUAV 3

Manned versus unmanned ISR platformsTheISRmarketprimarilycomprisesbothhighlyvaluablemannedsurveillanceplatformsaswellasincreasinglypopularandnumerousunmannedsurveillanceplatformsalongwiththeISRradars/sensorstheyemploy.Themannedplatformencompassesavastrangeofsystemsfromlargeairliner-basedAEW&CandAWACSsystemstomaritimepatrolaircraftandELINTaircraftandairships.Unmannedplat-formslargelyentailunmannedaerialvehiclesorsystems(UAVs/UAS),whicharegainingpopularity,keepinginviewthefutureNCWbattlefieldinmind,whichwillpushmoreofusingsuchsystems.AsfarastheIndianISRmarketisconcerned,asofnow,mannedsystemsinISRcontinuetoaccountforthemajorityofISRspending,withunmannedsystemsalsodemonstratingstronggrowth.

Further,largeglobalforeignmanufacturersgoverntheIndianISRmarket.Thales,IAI,ST-Engineering,Raytheon,EADS,NorthropGrumman,BoeingandLockheedMartinareamongthemaincompaniesof-feringC4ISRsolutionsforIndianArmedForces.AsfarastheIndiancompaniesareconcerned,therearenosignificantplayersfromtheprivatesector.BEL,DRDOanditsLaboratoriesaretheonlyplayersthathavebeeninvolvedindevelopingISRcapabilities.

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ChallengesIndiandefenceservicesneedtobeovercomethechallengesofsecurityarchitecture,connectivitymatrixandpointsofexchangeofinformation,integration,legacysystems,standardsandprotocols,functionalitiesandprocedures,timesensitivity,humanresourceissues,trainingofusersandmanagementoftrainedmanpower.Roadmapsofinformationandcommunicationmustconvergeintoanintegratedinformationcommunicationtechnologyroadmap,whichisyettotakeoff.Inaddition,servicesneedtofocusonspectrummanagementandtechnologytotelescopebandwidth.

References“IndianArmyandSpace:Skyisnotthelimit,”IRGApressrelease,http://irgamag.com/?page=spacearms_20120202,31January2012“TheC2/C4ISRSystemsMarket2011-2021,”VisionGainwebsite,http://www.visiongain.com/Report/565/The-C2-C4ISR-Systems-Market-2011-2021,January2011“TheC2/C4ISRSystemsMarket2011-2021,”Slidesharewebsite,http://www.slideshare.net/ReportLinker/the-c2c4isr-systems-market-20112021,January2011“TheIndustryReview,”IndustryReviewwebsite,http://industryreviewstore.blogspot.in/2012/03/global-c2c4isr-market-20112021.html,1March2012“TheGlobalC2/C4ISRMarket2011–2021,”PRnewswirepressrelease,http://www.bizjournals.com/prnewswire/press_releases/2012/02/09/SP50639,9February2012

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Foreign direct investment in defence:IndianscenarioandconcernsManned Vs Unmanned ISR Platforms

11.15

2.004

02468

101214161820

Unmanned

2012 - 2020

Am

ount

in $

bill

ion

Manned

TheproductionofdefenceequipmentinIndiawas,until2001,entirelyagovernmentfunction.TheIndus-trialPolicyResolution,1948,restrictedtheentryoftheprivatesectorintothisindustry.Thedefencein-dustrywasopenedtotheprivatesectorinMay2001(Pressnote4ofthe2001series)whentheGovern-mentofIndia(GOI)permitted100%equitywithamaximumof26%foreigndirectinvestment(FDI)com-ponent,subjecttolicensing.

Today,Indiaranksamongtheworld’stoptennationsintermsofdefenceexpenditure.Itis

oneoftheworld’slargestimportersofdefenceequipment.DespiteIndiacontinuingtorelyheavilyonimportsforitsdefencerequirements(whichapproximatelyis70%ofitstotalmilitaryequipmentandsystemneeds)andhavingapoordefence-industrial-base(DIB),theMoDhasnotshifteditsstanceonthe26%FDI.

Thepolicyofa26%caponFDIindefenceproductionhasfailedtoattractanysubstantiveFDIinthesector,withonlyapproximatelyINR176.8millionflowingintheformofFDIbetween2001andJanuary2012.Manylargeinternationaldefenceplayershavegoneonrecord,statingthatalthoughIndiaisoneofthelargestdefencemarkets,thecapof26%foreigninvestmentisstoppingthemfrombringinginthemanufacturingtechnologyofits“crownjewels”toIndia.SomeoftheplayerscomprehendthesecurityconcernsofallowingFDIofmorethan50%inIndianJVs,butinsistthattotransfersignificantlyvaluabletechnology,aminimumequityparticipationof49%shouldbepermittedinordertoprovidethemwithanencouragingrevenuestream.

ItisoftenarguedthattherevisionoftheFDIpolicybyincreasingthelimitonFDIwouldprovidetherequisitemomentumtothedefencesector,whileenablingIndiatoachieveitstargetofa70%levelofselfsufficiencyindefenceprocurements,butthesamehasalwaysbeenadebatableissue.Themootquestionatthispointiswhetheraninnovative,robustandsustainableindigenousdefenceindustrycouldbebuiltbyliftingthecaponFDI.

Intherecentpast,therehavebeenfrequentcallsbyvariousindustrybodiessuchastheASSOCHAMandCIItoraisetheFDIcapfrom26%to49%.Notwithstandingthesedemands,theMoDhasunequivo-callystateditsviewthatasdefenceisastrategicsector,theforeigninvestmentinjointventuresinthedefencesectorwouldbelimitedto26%.AnyFDIbeyond26%wouldbeconsideredonacase-by-casebasisonly.Insomeexceptions,suchasthejointventurewithRussiatomanufacturethemulti-roletrans-portaircraft,theMoDobtaineddispensationsfromtheCabinetfor50%foreignequity.BrahMos’missilesaremanufacturedwitha50%Russianequity,whiletheMoDhasalsopermittedHALandtheFrenchcompany

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Snecmatoforma50-50partnershipformanufacturingaircraftengines.However,intherecentpast,theMoDhasrejectedproposalsfor49%foreignequityinjointventuresbetweenMahindraDefenceSystemsandtheUK-basedBAEsystemsandtheonebetweenL&TandEuropeanEADS.

ThereisnodenyingthefactthatincreasesinFDIinthedefencesectorareindeedessential,consideringthefollowingaspects:

• ►Indiacurrentlylackstheadvancedstate-of-the-arttechnology,whichisusedinmostofthede-fenceproducts/equipment.

• ►ThecurrentFDIcapof26%doesnotprovideenoughmotivationtooriginalequipmentmanufac-turers(OEMs)tobringinproprietarytechnologytotheIndianjointventurepartners.

• ►Withthegrowthinthedefencesector,India’srelianceontheimportofdefenceequipmentwouldreduce,whichinturnwouldresultinnoteworthysavingsinforeignexchange.

• ►Manufacturingwithinthecountrythroughforeigncapitalwithafulltransferofmoderntechnologyisafar-betteroptionthanimportingtheequipmentfromabroad.

• ►Inordertodevelopadomesticindustrialbase,itisnecessarytoencouragetechnologytransfersandcurblarge-scaleimports.

However,thereisaflipsidetoallowinghigherFDIinthedefencesector,whichmakesincreasingFDIinthedefencesectordifficult,consideringthefollowingroadblocks:

• ►ItisoftenapprehendedthatallowingforeigncompaniestoexercisecontroloverIndiandefencecompanieswouldcompromisewiththeIndiandefenceandsecurityapparatus.

• ►Theissueofpossiblypassingoncriticalequipmentplans,designorsourcecodetootherplayers,particularlytocountriesnotalignedwithIndianinterestsisamajordeterrent.

• ►Concernsalsorevolvearoundthecapabilityofdefencepublicsectorundertakings(PSUs)andtheordinancefactoriestobeabletofactorincompetition,duetoincreasedforeignparticipationinthedefencesectorandtheconsequentdamagetothenascentdomesticdefenceindustry.

• ►Concernsregardingillegalarmstradehaveledtogreaterreluctanceonraisingthecap.

Industryexpertshoweverbelievethattheaforesaidconcernscanbetackledbystrengtheningtheexistingregulatoryframeworkofaddressingsecurityissuesthroughextensiveverification,clearanceproceduresandcontrols.Thegovernmentcouldreservetherighttoinspectorcontroltheproductionanddispatchesinfacilitiesthroughthedeploymentofnecessarysecurityagencies.

AnincreaseintheFDIceilinglimitwillallowforeignfirmsalargershareoftherisksandprofitsandtheconfidencetotransfersensitivetechnologytojointventuresinIndia,resultinginindigenouscapabilitybuilding.LargerIndianfirmsseekingtodiversifyintodefenceproductionwouldalsobenefitasitwouldhelpthemmitigatecommercialrisksinthehighlyfraughtdevelopmentenvironmentofdefenceproduc-tion.Theexampleoftheautomobileindustrymayberelevanthere.TherearealsoinstancesofcountriessuchastheUS,theUKandotherEuropeancountries,whichallowedunrestrictedFDIinthedefencesec-torwithoutcompromisingoncontrol,securityandsecrecy.

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Offsets policyTherearediverseperspectivesonusingtheoffsetspolicyasatooltoattractthelatesttechnologywithoutcompromisingthenationalsecurityinterests.Theoffsetspolicyobligeseveryforeigncompanywinningadefencecontracttoinvestacertainportionofthecontractvaluebackintothehomecountry.However,forthepolicytosucceed,theforeignvendorshouldwanttooperateinacountrywhereitactuallyderivescommercialbenefitsfrompartneringwithlocals.

ItwouldhoweverbepresumptuoustoassumethattheleveloftechnologyrequiredbythecountrycanbeachievedwithintheexistingFDIlimits,merelybyoffsets.ConsideringthatIndiadoesnothavetheindus-trialcapacitiesandknowhowtoabsorbtheoffsetsobligations,thereisariskthatforeignvendors,facedwithsignificantoffsetsobligations,wouldthenbeforcedtoseeknon-commercialandartificialoffsetstradeswithIndianbusinessesforlowtechnologycomponentswithaminimaltechnologyvalueadditionsimplytodischargeitsoffsetsobligations.

ConclusionSimilarapprehensionsandobjectionswereexpressedatatimewhenthegovernmentreformedthetele-communicationsandinsurancesectors.However,withtime,foreigninvestmenthastransformedthetechnologicalsophistication,generatedemployment,builtlocalexpertiseandimprovedthereachandeffectivenessoftheservices.

AcarefulanalysisoftheprosandconsofincreasingtheFDIlimitrevealsthatthebenefitsarisingfromheightenedinvestmentandtechnologicaladvancementhaveoutweighedtheassociatedconcernsthatmayanywaybeovercomebystronggovernmentregulation.

ThegovernmentshoulddemonstrateaboldvisiontorealizeIndia’spotentialtobecomeselfreliantindefenceequipmentmanufacturinginthenearfuture.India’scaponFDIisstuntingtheprogressofitsdefenceindustryandwouldhavetogiveway,soonerorlater,sinceitisacapthatthecountrycannotafford.Thisisfine.

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Aerospace and defence joint ventures and MoUsA & D joint venturesNameofJVcompany

ForeignOEM Indianleadpartner

OtherIndianpartners

Otherglobalpartners

Mainareaofbusiness Year

Hindustan Aeronautics Limited SAABAB HAL Airborneelectronicwarfaresystems 2011FifthGenerationFighterAircraftProgram

UnitedAircraftCorporationofRussia

HAL FGFA 2010

InternationalAerospaceManufacturingPvt.Ltd.

RollsRoyce HAL Manufacturingcompressorrings,turbinebladesandnozzleguidevanes

2010

MultiroleTransportAircraftLtd.

UAC&Rosonboron

HAL Co-design/developandco-producemultiroletransportaircraft

2009

HATSOFFHelicopterTrainingPvt.Ltd.

CAE HAL Militaryandcivilhelicopterpilottrainingservicesthroughoperationofflighttrainingdevices

2009

TataHALTechnologiesLtd.

HAL TATA WorkpackagesrelatedtoengineeringdesignservicesinaerostructuresaswellasthecaptiveoffshoreandonsiteworkloadfromOEMs,includingtheoffsetprogram

2008

HALBITAvionicsPvt.Ltd.

ELBIT HAL MerlinHawk Design,developmentandmarketingofaircraftsimulatorsandallrelatedapplicationsforIndianandinternationalmarkets.Integratedlogisticssupportandmaintenanceservicesthroughoutthelifecycleofproducts

2007

HALEdgewoodTechnologiesPvt.Ltd.

EDGEWOODVentures,USA

HAL EDGEWOODTechnologiesPvt.Ltd.India

Applicationthroughdevelopment/acquisitionofcutting-edgetechnologies.PhaseI3Dtechnologyfor:i)Memorymodulesii)Systeminpackagemodulesiii)DC/DCconvertersIV)Charge-coupleddevice(CCD)/camerasforspaceapplication

2007

InfotechHALLtd. HAL INFOTECH Design/Softwaredevelopmentforaeroengines,technicalpublicationsandanticipatedworkfromvariousOEMsundertheoffsetprogram

2007

MROfacilityinBangalore

PrattandWhitneyofCanada

HALofIndia AunitforstaticpartsofaircraftenginesinBangaloreandanotherinKoraputforrotatingparts

2006

SamtelHalDisplaySystemLtd.

Samtel HAL ManufacturingMFD/HUD/HMDSforaircraftofIndiandefenceservices

2006

SnecmaHALAerospacePvt.Ltd.

SNECMA HAL Productionofprecisionaeroenginecomponentsandassemblies

2005

IndoRussianAviationLtd.

RAC-MiG HAL ICICIBank RyazanAviazapchast

Supplyofalltypesofaircraft(Russianorigin)engines,accessories,aggregates,systemsandspares

1994

BaeHALSoftwareLtd. BaeSystemsUK HAL BAEHALEmployeesTrust

Design,developandmarketsoftware,firmwareandcomputerprogramsandsystems,incorporatingthemandtoprovideconsultancyinthefieldofcomputertechnology

1993

BharatElectronicsLimited SAAB BEL Coastalsurveillanceradars 2011 ELTA BEL Radars 2011 DHSSystems BEL Softshelters 2009

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BEL AstraMicrowave Design,developmentandmanufactureofBEL'smicrowaveintensiveproducts

2009

ElbitSystemsElectroOpticsELOPLtd

BEL Development,productionandmarketingofthermalimagingcamerasandforwardlookinginfrared(FLIRs)

2007

Tata Group Companies ITTExelis TASL Gen3NVDs 2012TataLockheedMartinAerostructures

LockheedMartin TASL AerostructuresoftheC-130Jplatform 2011

IndianRotocraft AugustaWestland TASL IntegrationandassemblyoftheAW119platform

2010

HELA ELTA TASL Radar,electronicwarfareandsurveillancesystems

2010

TataSikorskyAerostructures

Sikorsky TASL S-92helicoptercabins 2009

NovaIntegratedLtd. IAI Tata EW,missilesandradars 2008 Boeing TataIndustries

Ltd. Manufacturingmilitarycomponentsfor

theF-18SuperHornetfighter,theCH-47ChinookhelicopterandtheP-8MaritimePatrolAircraft

2008

AeronauticalDesignandDevelopmentCenter(ADDC)

SAAB TCS Engineeringdesign 2008

Larsen&Toubro SamsungTechwin L&T 155mm52calSPHowitzer 2012 NEXTER L&T Manufacturingandintegratingplatformsfor

the155mm/52caltowedgun2011

L&TCassadianLtd. CassadianElectronics

L&T Manufacturing,designing,engineering,distributingandmarketinginthefieldsofelectronicwarfare,radars,avionicsandmobilesystemsformilitaryapplications

2011

HCLTechnologiesAerospaceNetworkResearchConsortium

Boeing HCL IndianInstituteofScienceandWipro

Wirelessandothernetworktechnologies 2008

CircorAerospaceInc

HCL Developsoftwareforfluidcontrols,landinggearforaerospaceanddefenceapplications

2008

DevelopmentCentre SmithAerospace HCL Softwaresolutionsforaircraft 2007Wipro CAE Wipro Simulation-basedtrainingforareassuchas

wargamingandC4ISR2010

GESecurity Wipro JointlyproduceandmarketphysicalsecuritysolutionsfortheIndiandefenceforces

2009

NetworkCentricOperationsCentre:AmberJyotiinGurgaon

LockheedMartin Wipro Thislabwilldevelop,demonstrateandexperimentwithemergingnetwork-enabledcapabilitiesandapplications.

2007

MahindraSatyamSaabIndiaTechnologyCentreinHyderabad

SAAB MahindraSatyam Technologycenter 2011

MahindraDefenseSystems Rafael Mahindra&

Mahindra Developandmanufactureproductssuchas

antitorpedodefencesystems,electronicwarfaresystems,advancedarmoringsolutionsandremotelyoperatedweaponstationsforfuturisticinfantrycombatvehicles(FICV)

2012

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Telephonics(aunitofUS-baseddiversifiedGriffonCorp)

MahindraDefenseSystems

IFFandelectronicsystems 2012

DefenseLandSystemsIndia

BAESystemsUK MahindraDefenseSystems

Landsystemsfordefenceandsecuritypurposes

2009

Government-owneddepartmentsCargoammunitionfacility

IMIofIsrael OFB(AtKhamariaandatNalanda)

Productionof130mmand155mmcargoprojectiles,122mmgradcargorockets,125mmadvancedtankammunitionand120mmcargomortars

2004

MayawiProject($100million)

ElisraGroup,BeneBeraq,Israel(30%)

DefenceAvionicsResearchEstablishmentBanagaloreofDRDO

EWsystemsforcombataircraft 2006

MaitriProject(US$$500million)

MBDAofFrance(TechnologyTransfer)

DefenceResearchandDevelopmentLaboratory(DRDL),Hyderabad

BharatDynamicsLimited

ElectronicandRadarDevelopmentOrganisation(Radars)

DevelopmentofnewgenerationLowLevelQuickReactionMissile(LLQRM)systemnamedasMaitiri

2007

SagarikaProject RafaelofIsrael DefenceResearchandDevelopmentLaboratory[DRDL},Hyderabad

TheResearchCentreImarat(RCI),Hyderabad,AerospaceSystemsLimited,HyderabadandDefenceAvionicsResearchEstablishment(DARE),Bangalore,ElectronicsandRadarDevelopmentEstablishment(LRDE)Bangalore,NavalPhysicalandOceanographicLaboratory(NOPL)inKochi

IAIofIsrael DevelopmentofSagarikaCruiseMissile 2005

BarakMissileProject($350Mn)

RafaelofIsrael DRDLofHyderabad

IAIofIsrael DevelopmentoftheBarakextendedrangesurfacetoairmissile

2007

OthercompaniesTrackSystemIndiaLimited

DiehlRemschiedGmbh

IndiaForge DiehlSystemTracksforseveralapplications,suchastheinfantrycombatvehiclesBMP1/2aswellastheT-familyofvehicles(e.g.T72,T90)

2012

ReginsonIndia ITA,Spain RaghuVamsiMachineTools

Reginson,UK Aero-enginecomponents 2012

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Dassault RelianceAerospace

ParticipateintheMMRCAdeliveryprogram 2012

Chemring AshokLeylandDefenseSystems

Pyrotechnics 2012

PipavShipyard MDL Vesselsofwar 2012SelexGalalieoUK DataPatterns Defenseelectronics 2012

KinecoKamanComposites

Kaman Kineco Advancedcompositeparts 2012

SamtelThalesAvionics Thales Samtel Avionics 2011 Compania

EspanolaDeSistemasAeronauticosSA(CEPA),anarmofEADS

WiproInfrastructureEngineering

Manufactureactuators,controlsystems,precisionengineeringcomponents

2011

VyoneeshrosebankTechnologies

Rosebank Vyoneesh MROforaerospaceandlandsystems 2011

JubilantAeronautics AeronauticsDefenseSystems

JubilantBhartia UAVsandaerostats 2011

MASGMRAerospaceEngineering

Malaysia'sMAE GMRIndia AircraftMRO 2011

Thales AxisAerospaceandtechnologies

Flightsimulatorstrainingcenter 2011

AeroEuroEngineeringIndia

GECI PLEngineering Productdesignandengineeringservicescompanyprovidingproductdesign,engineeringandR&Dservicesintheaerospacedomain

2010

AshokLeyland ParamountGroup Mine-protectedVehicles 2010 DassaultSystèmes KPITCummins

Infosystems Jointsolutionandbusinessdevelopmenton

theENOVIAplatform2009

Saertex-KemrockIndiaLimited

Saertex Kemrock Componentsfortheaeronauticalindustry 2009

SparesSupportSolutionsIndia,Pvt.Ltd.

AirlogicLtd AirspaceInfrastructure

Airbus Maintainaninventoryofrotablecomponentsusedonalltypesofairbuscommercial,aircraftbyoperatorsinIndiaforoutrightsale,exchangeandcustomizedpoolingarrangements

2009

Project71AirDefenseShips

ItalianFincantieri(propulsionsystem)

Directorateofnavaldesign

RussianNDB(AviationTechnology)

Aircraftcarrier 2008

AerospaceProcessingIndiaPvt.Ltd.

Magallen

Aerospace

QuEST

GlobalGlobal Approved

aerospacesurfacetreatments

2008 Approvedaero-spacesurfacetreatments 2008

RoltaThalesLtd. Thales Rolta C4ISTAR 2007Project75ScorpeneSubmarine

DCNS,France MazagaonDocksLtd.

Aramis,Thales

ScorpeneSubmarines 2005

BRAHMOSAerospacePrivateLimited($250million)

NPOMashinostroyeniaofRussia

DRDOIndia BRAHMOSCruiseMissile 1998

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Offsets in defence and MSMEsSmallenterprisesexistintheformoffactories,workshops,tradingandserviceorganizationsandrangefromthemostmoderntosimpleandtraditionalunits.Theoperationalrangevariesfromindependenten-terprisestoancillaries,sub-contractorsandvendorsengagedincateringtotheneedsofthemarkets,extendingfromthedomestictotheglobalhorizon.Theseenterprisesexistinvariousformssuchasproprietorship,partnership,companiesorco-operatives.Whilethemainobjectivesofsmallenterprisesarealmostthesame,theyaredefinedandvieweddifferentlyacrosscountries.

Micro,smallandmediumenterprises(MSMEs)arerecognizedasenginesofeconomicgrowthworldwide.InIndia,MSMEsmanufactureproductsrangingfromhandloomsarees,carpetsandsoapstomachinepartsforlargeindustries.NotonlydoMSMEsgeneratethehighestemploymentpercapitainvestment,theyarealsoanimportantfactorincheckingtheruraltourbanmigrationbyprovidingvillagersandpeoplelivinginsmalltownsand

isolatedareasasustainablesourceofemployment.MSMEsoftenactasancillaryindustriesforthelarge-scaleindustriesprovidingthemwithrawmaterials,vitalcomponentsandbackwardlinkages.

EversincetheannouncementoftheIndustrialPolicyresolutionin1948,small-scaleindustrieshaveoc-cupiedaprominentplaceintheoverallstrategyofindustrialdevelopmentinIndia.Successivefive-yearplanshaveallocatedincreasingresourcesforthedevelopmentofsmallindustries.Inviewoftheabun-danceoflabor,scarcityofcapitalandtheruralnatureoftheeconomy,thepreferenceofsmallindustriesisnatural.Theyareheterogeneous,dispersedandmostlyunorganized.Duetotheunorganizednatureofthesector,entrepreneursandartisans/workersfacedifficultiesinaccessinggovernmentschemes.Con-sequently,thoseworkers

engagedintheMSMEsector,andthesearevulnerableandpoor,havelittlebargainingpowerandareexploitedbymiddlemen,unitownersandlargebusinesshouses.Unabletotakeupaggressivemarketing,similartolargeindustries,theycannotfindmarketsdespitegoodqualityandcompetitiveprices.

ItisnosurprisethenthatMSMEsdonotplayasignificantroleinthedefencesector.Thedefencesectorhasalwaysbeenaholycow,shreddedinsecrecyandruledbythelarge,influentialandfamous.Recent-ly,adefensepublicsectorundertaking(DPSU)formedaJVwithaprivateIndianentity.TheJVdidnotfindfavorwithsomelargedomesticindustrialhousesinthecountry.ThisforcedthegovernmenttoissueguidelinesforJVsbetweenDPSUsandprivateIndianentities.Whileallthismayhavebeenforagoodcause,onecannothelpbutwonderifanyMSMEcouldhaveeverbroughtaboutthesameresult.

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Theissueis“whoisbattingforthecauseoftheMSMEs”?TheydonothaveaCEOorachairmanwhocanaddresstheirconcernsdirectlyattheofficeofthePrimeMinister.Theirconcernsarenotevenheardade-quatelyinindustrymeetings,sincelargeindustriesdominatesuchforums.Aquickchecktofindoutaboutthecompaniesthatareheadingthedefencecommitteesinthevariousindustrychamberswillprovethepoint.Eventhemediabatsforthelargeindustrialhouses,leavingtheMSMEstofendforthemselves.Nowonderthen,thelargedomesticcompetitorscontinuetofightforaRakshaUdyogRatna(RUR)statustobecomemoreequalthantherestoftheequals.Insuchascenario,whatisthenthefateoftheMSMEsinourcountry?

Theoffsetpolicywasformulatedintheyear2005anddetailedoffsetguidelineswerepromulgatedinSeptember2006bytheMoDasapartoftheDPP2006.Theentireexercisewasundertakenbytheministry,withaviewtoploughbackatleast30%oftheFE(foreignexchange)outgoandalsodevelopandbroadenthedefenceindustrialbase.Iftheaimofthepolicywastodevelopthedefenceindustrialbase,sobeit,letthishappen.WhyistheMoDshyingawayfrominclusivegrowth?Apolicythatisdesignedtofavorthelargeandinfluentialwillcreatemoredisparityinthecountrythanaddressinclusivegrowth.ThepolicyframeworkinsteadmustcatertothedevelopmentoftheMSMEsforrealdevelopment.

InthisparticularareaofdevelopmentoftheMSMEs,theMoDhasdonelittle,whichisinitselfin-excusable.ThisisallowedtohappenjustbecauseMSMEsdonothavethereachandconnectwithinthehigherechelonsoftheministriestomaketheirvoiceheardandtheirwoesaddressed.Whatthenisthesolution?HowdoweintegrateMSMEsintothisgameoftheaffluentandtheinfluential?

Smallandmediumenterprisesaccountforapproximately80%oftheprivatesectorindustrialworkersandthereforeoccupyanimportantpositionintheindustrialstructureofJapan.Theemployment-generatingcapacityofthesmallandmediumenterprisesinJapanhasbeenseentobelargerthanthatinGermanyortheUS.Smallandmediumenterprisesplayanextraordinarilyimportantroleasmusclesforregionaleconomicdevelopment.InthedevelopmentofsparselypopulatedareassuchastheHokkaidoIslandinthenorth,theyhavebeenavaluabletoolfordevelopment.Intheearly1960s,smallandmediumenterprisesaccountedformorethan50%ofJapaneseexports.Suchbusinesswasmostlylaborintensiveandnotdependentonimports/rawmaterials.Assuch,itsnetcontributiontoforeignexchangewasveryhigh.

TheIndianeconomyisadevelopingeconomy.Itsvastresourcesareeitherunutilizedorunderutilized.Amajorsectionofman-powerislyingidle.Thepercapitaincomeislow.Capitalisscarceandinvestmentislean.Productionistraditionalandtechniquesareoutdated.Theoutputisinsufficientandthebasicneedsofthepeopleremainunfulfilled.Industrializationistheonlyanswertothecurrentdisruptedeconomicstate.Theproblemisoftheapproach,whichshouldbedirect,utilitarianandpragmatic.SuchindustriesdonotrequirehugecapitalandarethereforesuitableforacountrysuchasIndia.Small-scaleindustrieshaveatalentof“dispersal.”Theycanbeaccessibletotheremoteruralareasofthecountryanddonotleadtoregionalimbalancesandconcentrationofindustriesatoneplace,whichisresponsibleformanyeconomicresourcessuchasentrepreneurshipandcapital.PlannersandeconomistsinIndiatookrecoursetosmall-scaleindustriesbecausemostoftheseindustriesexistedinthetraditionalform,whichsymbolizeourheritage.Thesestillserveasthebackboneofoureconomy,whichismostlyrural.

TheAshokMitraCommitteealsopointedoutthatSSI(smallscaleindustries)playanimportantroleincombatingpovertyalleviationinthecountry—moreincentivestoSSI,lesseristhepoverty.Whilethecommitteehashighlightedthegovernment’snegligence

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towardtheinfringementoflawsrelatingtoSSI,ithasalsopointedoutthattheSSIsectorisnotreceivingadequateattentionbythegovernment.Thecommitteealsosuggestedtheneedforanactiveprotectionistrolebythegovernment.

WhereistheprotectionprovidedbythegovernmentinthecaseoftheopportunityprovidedbytheoffsetsinMoD?WhilethegovernmentmaybethinkingofincentivizationofOEMsthroughasystemofmultiplierstoexerciseitschoicearoundMSMEs,thereisnorealprotectionistrole.IstheMoDnotawarethattheirDPSUsandOFBaresupportedactivelybymorethan25,000SMEsinthecountry?WhenyoupickupthesupplychainofanyoftheDPSUsortheOFB,theyhavecultivatedahugesupplychainoftenboastingofnumbersinexcessofafewthousands.Ifthatistrue,then,whyhastheMoDnotaddressedthisaspectintheoffsetspolicy?MSMEsgeneratehighemploymentnextonlytotheagriculturalsector.Theyarelaborintensiveandthereforepromisewideremploymentpossibilities.Theyaresuitableasasupplementarysourceofem-ploymentforIndianfarmerswhoareoutofworkduringtheleanseasonandtotheeducatedandunem-ployedyouthinurbanareastobeemployedgainfully.Theyhaveawidelydisbursedentrepreneurialbaseandcanbeeasilysetupanywhereinthecountry.Theyhavearelativelylowcapitalinvestmentanden-sureregionalbalanceddevelopment.IfMSMEscandominateintheexportofsportsgoods,readymadegarments,woolengarments,knitwearandplasticproducts,thenwhynotdefencegoodsandservices?Thishasnothappenedbecausethegovernmenthasnothand-heldthemever,Whatthenisthesolu-tion?

OffsetsimplementationprovidesforthebestpossibleopportunityforMSMEs,morethananyother.IftheMSMEsweretotieupwithOEMsandallowedadirectaccesstotheirname(asanIndianoffsetpartner,IOPtoDassaultRafale),itstraightawayushersintwinbenefits,oneasenseofdoingbusinesswithaforeigncompany(boostinself-esteem)andsecondtheOEMnowhandholdstheMSMEwiththebestpracticesfollowedandthereforebringsinthebestindustrycultureforgreaterefficiency.Thisisagame-changerfortheMSMEsector.MSMEsmustbeencouragedbytheMoDtohavedirecttie-upswithforeignOEMsasanIndianoffsetspartner.Shoulditbenecessary,thegovernmentmustalsofundthemappropriately,withsystemsforsuchfundinginplace.TherewasaconceptofanoffsetfundinthenameoftheIndianrisingfund,whichwasformedwithsingle-mindedinvestmentintotheSMEsectoralone,fromamongtheapprovedlistoftheMoD.However,theMoDdidnotconsiderthisinitiativefavorably.WhileOEMswerekeentobeapartofthisfund,MoDhadmanyapprehensions,mostly,ill-foundedandbasedonpresumptionsandnotfacts.

MoDmustincentivizeOEMswithmultipliersforchoiceofIOPfromamongtheMSMEs.Inaddition,theMoDmustplaceamandateonOEMstosourceatleast20%(ortobeginwith10%oranypercentagedeemedfair,soastobeinsyncwiththenationalpolicyongrowthofMSMEs)oftheoffsetsfromtheMSMEsector.

TheUnionCabinethasapprovedaprocurementpolicyaskinggovernmentdepartmentsandpublicsectorundertakings(PSUs)togivepreferencetomicroandsmallentrepreneurs(MSEs),includingthosebe-longingtoSC/STentrepreneurs,whilemakingpurchases.AccordingtothePublicProcurementPolicyforgoodsproducedandservicesrenderedbyMSEsbythecentralministries/departments/PSUstobenoti-fiedunderSection11oftheMicro,SmallandMediumEnterprisesDevelopment(MSMED)Act,2006,allcentralministriesandPSUswillhavetoensurethataminimum20%ofalltheirtotalannualpurchasesofproductsorservicesarefromMSEs.Withinthislimit,4%oftheordersshouldbeplacedtotheSC/STentrepreneurs.Thishasbeenpromulgatedthroughagazettenotificationon23March2012.

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But,giventheiruniquenature,defencearmamentimportswillnotbeincludedincomputingthe20%goalfortheMinistryofDefence.Inaddition,defenceequipmentsuchasweaponsystemremainsoutofthepurviewofsuchpolicyforreservation.Therefore,onlydefencearmamentimportsareexcludedandcer-tainequipmentsuchasmissiles,weaponsystemsarenotunderthepurviewofsuchareservation.ThisactuallymeansthatthereminderofmilitaryprocurementsuchasIT,servicesandrevenuepurchasessuchasration,foodstuff,freshproducts,consumables,etc.,dofeatureunderthecompulsoryreservationsystem.

Inthisscenario,itmaybeagoodideafortheMoDtoprovideamandatetoOEMstoexerciseadequateeffortstochoosefromtheMSMEsfortheiroffsetobligations.Inthisregard,theymaybedirectedtoapproachNationalSmallScaleCorporation(NSIC)aminiratnaprofit-makingPSUfornecessaryfacilitation.NSICisa55-yearoldIndiancompany,dedicatedlybringingabouttransformationalgrowthintheMSMEsector.NSICalsohasthebandwidthtobeabletoinfusefundsintotheMSMEswhenrequired.ThelicencingconditionsarealsometworthbyNSICthroughtheirsingle-windowregistrationmechanism,whichhappensafterthoroughdue-diligenceandinspections.

DRDOcouldalsoplayaverykeyroleinthegrowthofSMEsectorthroughtechnologyinfusionandfillinginthegapswherenecessary.Anintegratedapproachwithparticipationinoffsets,indigenization,participationunderthe“BuyIndian”categoryanddulycomplementedbytheexistingtieredsystemwillprovideaboosttoMSMEsandinturntothenationsasawhole.

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Request for Information (RFIs)

Date of issue RFI details Response date Issued by Service

11April2012 Airdefenceguns 30April2012 DirectorateGeneralofArmyAirDefence Army

18May2012 Sniperrifleforinfantry 15June2012 AdditionalDirectorateGeneralofWeapons,PMOFINSAS,DirectorateGeneralofPerspectivePlanning

Army

22May2012 Miniunmannedairvehicle(UAV) 1July2012 DirectorateGeneralofInfantry-5,DirectorateGeneralofWeaponsandEquipment-9

Army

22May2012 Fibrescope 10July2012 DirectorateGeneralofInfantry-5,DirectorateGeneralofWeaponsandEquipment-9

Army

31May2012 Airconditionerwithauxiliarypowerunit(APU)inTankT-90S/SK

20Jun2012 DteGenofMechForces Army

9April2012 COMJAMandSIGINTAircraft 24May2012 PDASR(RoomNo460)AirHQ(VayuBhawan),RafiMarg

ArmyQty:9

25April2012 TwindomesimulatorsforHawkMK132AJT

25May2012 PDProjectsAirHQ(VayuBhawan) IndianNavy

11May2012 Lightstrikevehicle(AllTerrainLightStrikeVehicle)

11June2012 JointDteofGarudAirHQ(VayuBhavan) IndianAirForce

29May2012 UniversalgroundpowerunitGPU(U) 20June2012 DteofMT AirForce

3April2012 Divernavigationsystem 20April2012 DirectorateofSpecialOps&Diving NavyQty:42

1May2012 Divingaccessories—searchlamp 30May2012 DirectorateofSpecialOps&Diving‘A’Block

Navy

1May2012 Underwaterhydraulictools 30May2012 DirectorateofSplOpsandDivingIntegratedHeadquartersofMoD(Navy),

Navy

1Jun2012 Indigenousconstructionofsurveyvessels

30June2012 IntegratedHeadquartersofMinistryofDefence(Navy)

NavyQty:04

28May2012 Plasmanitrocarbuzingequipment 9August2012 DefenceResearch&DevelopmentLaboratory

DefenceServiceQty:01

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Request for proposal (RFPs)

Date of issue RFP details/equipment Response date Issued by Remarks

10April2012 HolographicweaponsightforRifle47

21May2012 ColGSArty(A)ForMGArty

ArmyQty:520

16April2012 Harnessforbulletproofpatka

30May2012 ACSFPCELLHQ,NorthernCommand

ArmyQty:18000

25April2012 PropellantNGB204 29May2012 OrdnanceFactoryKhamariaJabalpur

ForArmy

10April2012 HolographicweaponsightforRifleAK47

21May2012 GOC-in-C,NorthernCommand,C/o56APO

ForArmy

7May2012 Combatunderwaterdivingequipment

5July2012 ForArmy

11May2012 Armourpiercingincendiarybulletfor14.5MmAMMN.

8June2012 OrdnanceFactoryKhamaria-Jabalpur(MP)

ForArmyQty:134130Nos.

15May2012 VTFuzeforPinaka(F) 25June2012 GeneralManager,OrdnanceFactory,Chanda

ForArmyQty:515Sets.

16May2012 Diversvisionsystem 14July2012 GOC-in-C,NorthernCommand,C/o56APO

ForArmyQty:24Nos.

28May2012 PropellantpowderM-1With19HolesforIM212

29Jun2012 Dy.GeneralManager,OrdnanceFactoryKhamaria

ForArmyQty:37000kg

30May2012 Propellant(Gunpowder5/7)for23mmSCHILKAAmmn

1July2012 Dy.GeneralManager,OrdnanceFactoryKhamaria

ForArmyQty:20000kgs

13June2012 RDX/TNT80/20HexoliteTypeB

27July2012 OrdnanceFactoryKhamariaJabalpur(MP)

ForArmyQty:94950Kgs.

4April2012 Ammunitionforshootingcompetition

18May2012 DirectorateGeneral,BorderSecurityForce

ForBSFQty:882400Rounds

2April2012 RubberizedinflatableBoatswith25HPOBM

15May2012 DirectorateGeneral,BorderSecurityForce

ForBSFQty:75No’s.

May2012 Globalpositioningsystem 5June2012 OfficeOfTheDIGP/Principal,CTC,CRPF

ForCRPFQty50:Nos.

25May2012 Bombsuit 2July2012 Asstt.InspectorGeneral/Prov. ForCISFQty:5

25May2012 Waterjetdisrupter 3July2012 Asstt.InspectorGeneral/Prov. ForCISFQty:04

18May2012 Laserwarningsystem 31Aug2012 OrdnanceFactoryProject,YedduMailaram,Medak

Defenceservice

4April2012 Dopplerradarsystemforthevelocitymeasurementofsub-sonicandsuper-sonicprojectiles

29May2012 IndianOrdnanceFactoriesAmmunitionFactory,Khadki

Defenceservice

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List of industrial licenses (ILs) filed from 01/04/2012 TO 29/02/2012Application no. and date Name of the applicant Item of manufacture

11:05/03/2012 Ray-HansTechnologiesPvt.Ltd. Militarygradeelectronicsandcommunicationproductsandassembliesdesignedformilitaryusesuchaselectroniccountermeasureandcountermeasureequipmentsurveillanceandmonitoring,dataprocessingandsignalingsystems

12:12/03/2012 HBLPowerSystemsLtd. Nickelcadmiumbatteriesandpartsthereof

13:15/03/2012 PremierExplosivesLtd. Sitemixedexplosives

14:15/03/2012 PremierExplosivesLtd. Mobdispersiondevices

15:16/03/2012 MachharIndustriesLtd. Bulkexplosives

16:20/03/2012 GlobalPrecisionPvt.Ltd. Partsandaccessoriesforindustrialmachine

17:21/03/2012 DCXCableAssembliesPvt.Ltd. Electronicprintedcircuitboardassembliessubassemblies,boxbuild,andmilitarywireharnessfordefenceaerospaceapplication

18:28/03/2012 EconomicExplosivesLtd. Energeticbindersforpropellants

19:28/03/2012 KavveriTelecomProductsLtd. Weaponsandammunition

20:09/04/2012 TechMahindraLtd. ITservicesandsoftwaredevelopmentfordefence

21:09/04/2012 SriVenkateswaraExplosivesPvt.Ltd. Allkindsofdetonators

26:19/04/2012 RaghuVamsiMachineToolsPvt.Ltd. Aerospacecomponentsanddefenceequipmentparts

23:16/04/2012 PipavavDefenceandOffshoreEngineeringCo.Ltd.

Manufacturingmissilesandrockets,torpedoesandautonomousunderwatervehiclesincludingsub-systemsandground/ship.etc.

24:18/04/2012 TanejaAerospace&AviationLtd. Manufacturingspacecraft,aircraftandtheirparts

25:19/04/2012 OctaniaAerostructureGroupPvt.Ltd. Aircraftsandprecisionmachinedaircraftcomponents

26:19/04/2012 RaghuVamsiMachineToolsPvt.Ltd. Aerospacecomponentsdefenceequipmentparts

27:25/04/2012 SouthernElectronics(Bangalore)Pvt.Ltd.

Aircraftcomponentsmaintenance,repairandoverhaul(MRO)activities

28:26/04/2012 SrinivasaExplochemPvt.Ltd. Detonatingfuse

29:30/04/2012 MillenniumAeroDynamicsPvt.Ltd. On-boardoxygengeneratingsystem(OBOGS)

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New projects/investments/contracts

Name of entity Project details Value

L&T,BEL,TataPowerSEDandHCLInfosystems

• TheL&T-ledconsortium,incompetitionwithBEL,wasse-lectedtodevelopaprototypeoftheTacticalCommunica-tionsSystem—atelecommunicationnetworkthatcanberolledacrossbattlefieldsonthefly.

• TheL&Tconsortiumwillbeformulatedasaspecialpurposevehicle(SPV)thatalsohasTataPowerSEDandHCLInfo-systemsastheotherpartners.

• Thisisthefirstprojecttobeapprovedunderthe‘Make’cat-egoryandisexpectedtostrengthenprivateparticipationinthedefencesector.

INR80–100billion

SunForestCity • GOIhassignedcontractswithM/sThales,FranceandM/sDassaultAviation,France,SunForestCityVenturesLtd.,jointlypromotedbytheGur-gaon-basedSunGroupandtheUK-basedForestCityInter-national,proposestosetupanaerospacehubnearBanga-lore.

• Thestategovernmenthasgivenapprovaltotheprojectandlandfortheprojecthasbeenidentifiedandpreliminarynoti-ficationhasbeenissuedtothefarmersforacquisitionoftheirlands.

INR100billion

Boeing

• BoeingisnegotiatingtosellitsApacheAH-64DmultirolecombathelicoptertotheIndianAirForce.

• TheIAFisseeking22heavyattackhelicopters.Boeing’sApacheisexpectedtobethepreferredchoiceoverRussia’sMi-28NNightHunter.

• Apachehassuccessfullyconductedtrials;thedeliveryisex-pectedtocommencewithin36monthsofsigningthecon-tract.

INR30.3billion

IndianAirForce • TheCabinetCommitteeonSecurityclearedthepurchaseofthe75-basictraineraircraft.

• Pilatus’aircraftwillreplacethe1988-vintage,single-piston-engineHPT-32s,groundedin2009,followingaseriesofcrashes.

• Thefirstbasictrainerwouldbeinducted15monthsafterthecontractissigned.Allthe75PC-7swillbeacquiredinafly-awaycondition.

INR30billion

BAESystems

• TheDefenceAcquistionCouncilclearedacontractfor145howitzergunsfromBAESystems(BAE’sM777lightweightartilleryguns).

• Thehowitzers,witharangeof30km,willfortifyIndia’smountainousnorthernborderswithIndiaandPakistan.ThegunswillbebuiltbytheBAEdivisionintheUS.

• ThedealawaitsclearancefromtheCCSbeforeitcanbesigned.

INR28.2billion

GoaShipyardLtd. • GoaShipyardLtd.willbuildsixoffshorepatrolvessels(OPVs)underacontractfromtheIndiancoastguard.

• Eachofthe2,400-tonnevesselswillbe105m(344.5ft)longandwillfeatureanintegratedbridgesystem(IBS),quickre-sponseboatsandafour-lanesimulator.

INR18billion

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Name of entity Project details Value

HindustanAero-nauticsLtd.(HAL)

• HALisinvestinginafacilityspreadover40acresatChal-laghatta,Bangalore.

• Theunitwouldundertakelicensedproductionforthefourth-generationfightersMMRCAfortheIndianAirForce.HALiscreatingtwonewdivisions,oneforaircraftassemblyandtheotherforengineassemblyandtesting.

• Thenewfacilityisexpectedtopotentiallyemploy1,200peopledirectlyandanother3,600bywayofrelatedservicesandoutsourcing.

INR6billion

BEML • BEMLissettingupanaerospacemanufacturingdivisionatanSEZparkneartheBangaloreInternationalAirport,Deva-nahalli,inBengaluru.

• Thefacilitywillmanufactureaerospacecomponentsandparts,andassembleaircraftandhelicoptersuptoaheightof21meters.

• Thefacility,spreadovera3,00,000sq.ft.area,isexpectedtobereadybySeptember2012.

INR4.55billion

Boeing • ►BoeingissettingupatransonicwindtunnelfacilityinHyde-rabad,whichisexpectedtocomeupinthreetofouryears.

• ThefacilitywillbeusedbyDRDOtotesttheaerodynamicfeaturesofvariousaircraftshapesandspacevehicles.Atransonictunnelisahigh-speedtunnel,whichcangenerateaspeeduptoMach1.4(Machisthespeedofsound).

INR3.1billion

AstraMicrowave • AstraMicrowaveProductsLtd.baggedthedealtosupplycriticalradarsub-systemstooneofitsoverseascustomers.

• Thisisthefirsttimethecompanyhasbaggedsuchacon-tractandthecompanyisexpectedtoreachrevenuesofINR2billionthisyear.

INR3.1billion

DefenceAvionicsResearchEstablishment(DARE)

• UltraElectronicsTCSwasawardedanorderforelectronicwarfareequipmenttobedeliveredtotheDefenceAvionicsResearchEstablishment(DARE)inBangalore.

• ThecompletesystemwouldbeusedinatestenvironmenttoevaluateaircraftEWradarcapabilityandprovideanopportunityforpilotstoassesstheeffectivenessofcountermeasuretechniques.

• TheEWsystemwillbeintegratedintotheultraTCSfacilityinOttawaandthenshippedtotheDAREfacilityinBangaloreinlate2012.

INR171.5mil-lion

Keltron • TheKeralaStateElectronicsDevelopmentCorp(Keltron)baggedacontractworthINR60millionfromtheNationalPhysicalandOceanographicLaboratory(NPOL).

• KeltronwonthecontracttomanufactureandsupplysonarsimulatorsusedfortrainingtheIndianNavy’ssubmarineop-erators.

• Keltron’sAroorunitwouldmanufacturetheelectronicsimu-lators,designedbytheNPOL,DefenceResearchandDe-velopmentOrganization(DRDO)lab.

INR60million

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Name of entity Project details Value

AltranTechnologies

• FrenchAerospaceCompany,AltranTechnologiesplanstoexpanditsIndiaoperationsbyaddingabout2,000em-ployeesoverthenexttwoyears.

• ThecompanyisindiscussionswithHALforweightreductionofafewmilitaryaircraftmanufacturedbyHAL.

• Itislookingatacquisitionstostrengthenitsexistingcapabilities.ItplanstoopenacenterofexcellenceinBangalore.

NA

BellHelicopter • BellHelicopteropenedanewofficeinNewDelhiforitsop-erationsinIndia.Itisseekinggrowthopportunitiesinsalesandmanufacturing.

NA

MahindraandMa-hindra(M&M)

• M&MplanstobuildunmannedcoastalsurveillancevesselstoboostIndia’scoastalsecurity.

• Thecompany’sjointventurewithIsrael’sRafaelAdvancedDefenseSystemswillbuildunmannedpatrolvessels(UPV)atafacilityinPune“inaphasedmanner”afterinitiallyim-portingmodelsfromRafael.

NA

MainiPrecisionProducts

• TheaerospacedivisionoftheBangalore-basedMainiPreci-sionProductssignedacontractwithAirbusthroughglobale-bidding.

• ThecontractisforthesupplyofstandardbushesthatwouldbeusedacrossthevariousAirbusaircraftplatforms.

NA

Bombardier • BombardierinaugurateditsengineeringservicecenteratBangaloretoimplementaerospaceprojects,whichincludeaircraftdesign.

• Thecompanyplanstorampuptheheadcountinthecenterto50by2013.Thecenterwouldassistabout4,000engi-neers,including800ofIndianorigin,whoareworkingatitsmainservicecenterinMontreal.

NA

CentreforAsia-PacificAviation(CAPA)

• Theglobalaviationconsultingbody,CentreforAsiaPacificAviation(CAPA),willlaunchanaerospaceparkinBangaloretopromotehightechnologyresearchandmanufacturinginaviation.

• Thepark,beingco-promotedbyVittalInnovationCity(VIC),willformoneoftheindustryclustersatVIC.

• Theproposedparkwillbespreadacross750acresandislocatedneartheBangaloreInternationalAirport.

NA

MahindraSatyam • MahindraSatyamsetupadeliverycenterinToulouse,France,dedicatedtotheaerospaceanddefencesector.

• Thecenterwillrampupto80employeestowardtheendofthisyearandwillofferengineering,ITandcommunicationservices.

• ThecenterwillhelpinexpandingitsoperationsinFrance,generatingjobsandutilizinglocaltalentintheareasofaero-spaceengineeringandinformationtechnology.

NA

*ThevaluesofthedealshavebeenconvertedtoIndianRupeesusingtheOandacurrencyconversiontool.US$1=INR50.44(AverageofthevaluefromJuly2011toJune2012)

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Joint ventures and alliances

Name of entities Nature of transaction Value

DCNSandPipavavShipyard

• PipavavShipyardplanstoenterintoastrategicpartnershipwithFrench-basedDCNSTechnologiestobuildsubmarinesandotherwarshipsfortheIndianNavyandCoastGuard.

• ►DCNSismanufacturingsixScorpenesubmarinesfortheIn-dianNavyinpartnershipwithMDLunderProject75.Thepartnershipbetweenthetwocompanieswillallowcostbene-fitsandtimelymanufacturingofvessels.

INR8billion

PipavavDefenceandOffshoreEngineeringCo.Ltd.andMazagonDockLtd.(MDL)

• ►MDLselectedPipavavDefenceandOffshoreEngineeringCo.Ltd.toformaJVthatwillbuildwarshipsandsubmarinesfortheIndianNavy.

• ►ThenewlyformedentityMazagonDockPipavavwillimple-mentapartoftheexistingordersofMDLaswellasbidforfuturedefensecontractsinIndia.

NA

RoltaIndiaLtd.andGeoEyeInc.

• RoltaIndiaLtd.signedanMoUtopartnerwithGeoEyeInc.,aproviderofgeospatialinformationandinsight.

• ►RoltaisexploringopportunitiestoleverageGeoEye’shighresolutionsatelliteimageryservice,predictiveanalytics’ex-perienceandintelligent3-Dcitysolutionstodevelopdefenceandhomelandsecuritysolutions.

NA

TataMotorsandDRB-HICOM

• ►TataMotorsLtd.signedanagreementwithaDRB-HICOMBerhadunittomarketandselllighttruckstoMalaysia’sarmedforces.

• ►ThetrucksincludeTata’s2.5ton-5tontrucks,includingtheLPTA715andtheLPTA1623.

NA

KamanAerospaceGroupandKinecoPvt.Ltd.

• ►KamanAerospaceGroup,Inc.,asubsidiaryofKamanCor-porationenteredintoanagreementwithKinecoPvt.Ltd.toformamanufacturingcompanyinIndia.

• ►Thenewventure,knownasKinecoKamanComposites,willbebasedinGoaandwillmanufactureadvancedcompositestructuresforaerospace,medicalandotherindustries.

NA

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Country-level deals and initiatives

Country Nature of transaction Additional details

US • ►The2012editionoftheannual10-dayIn-dia-USnavalexercise,“Malabar,”washeldintheBayofBengalfrom7April.

• ►ItinvolvedtheAmericanandIndiannavalforces.

• ►TheUSwillfieldthreetanksanddep-loyaround200menaccompaniedbyarmoredpersonnelcarriersforthewargame.

• ►TheindigenouslybuiltguidedmissilefrigateINSSatpura,guidedmissilede-stroyersINSRanvijayandINSRanvirandfleettankerINSShaktitogetherrepresentedtheIndianNavy.

• ►ThecenterturneddownanAirForcerequesttoparticipateinthewargamesasitwaswaryofthehypesurroundingthejointmilitaryexerciseswiththeUS.

US • ►TheUSSecretaryofDefence,Mr.LeonPanettaandIndianDefenceMinister,Mr.A.K.AntonyhelddefencediscussionsinNewDelhi.

• ►BothsidesexchangedviewsonthesecuritysituationinSouthAsia,WestAsiaandtheAsia-Pacificregionandonvariousglobalsecuritychallengessuchascybersecurity.

• ►TheIndianDefenceMinisterempha-sizedonmovingbeyondthebuyer-sellertransactionsandfocusingonthetransferoftechnologiesandpartner-shipstobuildindigenouscapabilities.

Japan • ►Thefirstbilateralmaritimeexercisebe-tweenIndiaandJapan“JIMEX12”(JapanIndiaMaritimeExercise)washeldoffthecoastofJapanon9June2012and10June2012.

• ►TheengagementbetweenthenaviesofIndiaandJapanispartoftheoverallde-fencecooperationbetweenbothcountries.

• ►Twodestroyers,onemaritimepatrolaircraftandahelicopterfromJapapar-ticipatedintheJapaneseMaritimeSelfDefenceForce(JMSDF).INSRana,INSShivalik,INSKarmukhandINSShaktiaretheIndianunits,whichparti-cipatedintheexercise.

• ►Thefocusoftheseexerciseswaspri-marilymaritimesecuritycooperation.TheseincludeHumanitarianAid&Dis-asterRelief(HADR)operationsandvisit,board,searchandseizure(VBSS)drills,whichformapartofanti-piracyoperations.

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Industry buzzLarge-scale modernization of defence shipyardsTheGovernmentofIndiahasundertakenthelarge-scalemodernizationofdefenceshipyards.Ithasalsotakendistinctstepstoencouragetheparticipationoftheprivatesectorintheseprojectstoreducethetimethatisrequiredfortheconstructionofwarships.GardenReachShipbuildersandEngineersLtd.(Kolkata),MazagonDockLtd.(Mumbai),GoaShipyardLtd.andHindustanShipyardLtd.(AndhraPra-desh)arethefourshipyardsthathaveinitiatedthemajormodernizationprogram.Themodernizationpro-gramwillbefundedbypoolingupresourcesfromtheproject-basedfundingaswellastheirinternalac-cruals.

(Source:“Govttakesupthemodernizationofdefenceshipyardsonlargescale,”IndiaPublicSectorNews,22May2012,viaFactiva,©2012Contify.com.)

Indian Government taking steps being taken to curb corruptionIndiaimposedapenaltyontheIsraeliMilitaryIndustries(IMI)forthebreachofthe“integritypact”toes-tablishaplantformanufacturingbi-modularchargesfortheIndianArmy’s155mmhowitzersattheNa-landaOrdnanceFactoryinBihar.

DefenceministerAKAntonysternlywarnedeightdefencePSUstomaintainprobityandtransparencyinalltheirdealingsandsetbenchmarksinprobity.HealsoorderedaninquiryovertheroleoftheconsultanthiredbyFimmeccanicatofacilitatethechopperdealwithIndia.

(Source:“IndiapenalisesIsraelidefencefirmforcontractbreach,”Indo-AsianNewsService,16April2012,viaFactiva,©2012Indo-AsianNewsService;“8defPSUswarnedtomaintainprobity,”13April2012,TheTimesofIndia-AhmedabadEdition,viaFactiva,©2012Bennett,Coleman&Co.Ltd.;“DefMinordersfreshinquiryafterquestionsoverchopperdeal,”PressTrustofIndia,25April2012,viaFacti-va.)

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Proposal for an alternate communication network for defence forcesTheMinistryofDefencesaidthataproposalhasbeensenttotheMinistryofCommunicationandInfor-mationTechnologytobuildanexclusiveanddedicatedtelecommunicationnetworkfordefenceservicesthroughBSNL.ThegovernmentapprovedabudgetarysupportofINR80.98billioninDecember2009andaproposalisunderprocessintheMinistryofCommunicationandInformationTechnologyforthefinan-cialapprovalofINR52.36billionfortheproject.

(Source:“Govtforalternatecommunicationnetworkfordefenceforces,”PressTrustofIndia,9May2012,viaFactiva.)

Russia completes India’s submarine modernization programThetwo-yearmodernizationoftheIndianNavy’sINSSindhurakshaksubmarinewascompletedattheZvezdochkashipyardinSeverodvinsk,Russia.Ithasbeenequippedwiththetube-launchedClub-Scruisemissileseffectiveagainstsurfacevesselsandsubmarinesatarangeofabout200km.ThesubmarinewillbehandedovertotheIndianNavylaterthisyearafterundergoingseatrialsandfiringtests.

(Source:VladimirRadyuhin,“RussiacompletesIndia’ssubmarinemodernisationprogramme,”TheHindu,24June2012,viaFactiva,©2012Kasturi&SonsLtd.)

Frigate INS Teg commissioned in the Indian NavyThefrigateINSTeg,builtattheYantarShipyardinKaliningrad,Russia,wascommissionedintotheIndianNavy.Itisarmedwiththe290-kmBrahMossupersoniccruisemissileandcanoperatetheanti-submarineandearly-warning

helicopterfromitsdeck.INSTegisthefirstofthethreefrigatesbeingbuiltinRussiaasafollowupordertotheTalwarClassfrigates.

(Source:“StealthFrigateINSTegInducted,”DNA–DailyNews&Analysis,28April2012,viaFactiva,,2012.DiligentMediaCorporationLtd)

Maiden flight of light combat aircraft-navy Theindigenouslybuiltlightcombataircraft(LCA)TejasNavyNP1madeitsmaidenflightinBangalore.Duringtheflight,theaircraftwasputthroughvariousmaneuvers,includinglow-speedhandlingandun-dertookacloseformationflyingataslowspeedwithanotheraircraft.

(Source:“MaidenFlightofLightCombatAircraft-Navy(NP1),”27April2012,IndianGovernmentNews,viaFactiva,©2012HTMediaLimited;“LCA‘Tejas’tobeinductedinAirForcethisyear:DRDOchief,”PressTrustofIndia,29April2012,viaFactiva.)

Indian Navy seeks Midget submarines for special operationsTheIndianNavyplanstoacquire12midgetsubmarinesforthespecialoperationsforces.Thesewouldbeusedtotransportarmsandequipmentfromalargersubmarinetoanareaofoperationnearcoastalwater.Themidgetsubmarineswouldalsobeusedtoconductcovertsurveillanceinshallowwatersandextractcommandosoncompletionoftheirmission.TheglobaltenderformidgetsislikelytobesenttoHDWofGermany,NavantiaofSpain,DCNSofFrance,AmurShipyardofRussiaandHyundaiofSouthKorea.

(Source:VivekRaghuvanshi,“IndiaSeeks12MidgetSubsForSpecialOps,”DefenseNews,21May2012,viaFactiva,©2012ArmyTimesPublishing)

Coast Guard commissions hovercraft at Okha, GujaratIndianCoastGuardcommissionedtheGriffon8000TD,UKhovercraft.The30-tonneaircushionvehiclewouldbedeployedinshallowwatersandinter-tidalzonesalongthecoastlineandwouldbeusedforpa-trollingtheGulfofKutch.Thevesselcanundertakeeffectiveassaultoperationsandimmobilizetheene-mywithitshighspeed.

(Source:“CoastGuardcommissionshovercraftatOkha,”TheTimesofIndia,13June2012,viaFactiva,©2012TheTimesofIndiaGroup)

Coast Guard inducts Dornier aircraftTheCoastGuardinductedanewHAL-builtDornieraircraftequippedwithadvancednavigationalandcommunicationsensorsaswellasequipment.HindustanAeronauticsLimited(HAL)builtthisaircraft,whichcanbeconfiguredintovariousrolessuchaspollutionresponse,searchandrescue,maritimere-connaissanceandarmamenttomeettheCoastGuardcharterofduties,includingcoastalsecurity.TheinductionispartoftheongoingexpansionplanoftheCoastGuardtostrengthenitsfleet.

(Source:“CoastGuardinductsDornieraircraft,”Indo-AsianNewsService,23May2012,viaFactiva.)

R&AW set to acquire Bombardier spy jetsIndian’sExternalintelligenceAgencyResearchandAnalysisWing(R&AW)issettoacquiretwoBom-bardierjetsfittedwithIsrael-basedMulti-missionAirborneReconnaissanceandSurveillanceSystems.Theaircraftwilldailycollectelectronicandgroundintelligence180kminsidetheneighbors’territories.Thejetsareexpected

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tobeinserviceinthenexttwoyearsandwillprovidereal-timeinformationontroopandarmormovements.

(Source:ShishirGupta,“After20years,R&AWupgradestosuperspyjets,”HindustanTimes,3May2012,viaFactiva,©2012HTMediaLimited.)

Boeing extends the contract for subassemblies to Bharat Electronics Ltd. BoeingextendedthecontractwithBharatElectronicsLtd.(BEL)foranotheryearofworkonF/A-18E/FSuperHornetcockpitsubassemblies.Thesubassemblyprovidescockpitfloodlightingcompatiblewiththeaircraft’sNightVisionImagingSystem(NVIS).BoeinghadawardedBELaninitialcontractinMarch2011forworkonF/A-18E/FSuperHornetcockpitsubassemblies.Boeingexercisedtheoptiontorenewthecontractforanotheryear.

(Source:JayMenon,“BoeingExtendsContractForIndian-builtGrowlerSubassemblies,”AerospaceDai-ly&DefenseReport,31May2012,viaFactiva,©2012McGraw-Hill,Inc.)

HAL partners with Russia’s UAC for a multi-role transport aircraftRussianfirm,UnitedAircraftCorporation(UAC)anditsJV,MultiroleTransportAircraftLtd.(MTA),signedacontractwithHALtomanufacture205multi-roleaircraft(MTA)inthe15–20ton-class.Theprojectenvi-sagesmaking100aircraftfortheRussianAirForce,45fortheIAFandtheremaining60airplaneswillbesoldtoothercountries.TheprojectislikelytocostbetweenUS$600millionandUS$700million.

Theprototype’sfirsttestflightisslatedtobeconductedin2017,withregularproductionexpectedtobeginby2019.

Theaircraftwillbeusedforcargo/trooptransportationandpara-drop/airdropofsupplies,includingalow-altitudeparachuteextractionsystem.HALwillcarryoutthedesignanddevelopmentofitsworkshareoftheMTAattheAircraftR&DCenter(ARDC)atBangalore,whileitsTransportAircraftDivision(TAD)atKanpurinUttarPradeshwillmanufacturetheprototypesandsubsequentlytheserialproductionwillbeatKanpur,wherededicatedfacilitiesarebeingsetup.

(Source:JayMenon,“Russia’sUACPartnersWithIndia’sHALonNewTransport,”30May2012,Aero-spaceDaily&DefenseReport,

viaFactiva,©2012McGraw-Hill,Inc.)

HAL to undergo restructuringAnexpertcommitteechairedbyB.K.Chaturvedi,amemberofIndia’sPlanningCommission,visitedvari-ousfacilitiesofHAL.ItwouldsuggestmeasurestomeettechnologicalandHRrecommendationstobeabletoaccomplishcontractssuchasRafale.Theneworganizationstructureislikelytobringmoretieswithprivate-sectordefensecompanies.HAL’ssharesareexpectedtobefloatedinthemarket.

(Source:VivekRaghuvanshi,“IndianOfficialsHaveHighHopesforHALReorg,”DefenseNews,28May2012,viaFactiva,©2012ArmyTimesPublishing.)

Embraer competes in the Indian tender for maritime patrol aircraftEmbraerDefesaispreparingtobidforatendercalledbytheGovernmentofIndiatopurchaseninemari-timepatrolaircraftatacostofUS$1.2billiontoUS$1.5billion.ThecompanyalreadysuppliesEmb-145AEW&Cjets,designedandadaptedforsurveillance.EmbraerwillcompeteinthistenderwiththeEMB145MPdesignedforananticipatedalertandarangeof3,000km.

(Source:“Brazil:EmbraercompetesinIndiatenderformaritimepatrolaircraft,”OEstadodeSãoPaulo,12April2012,viaFactiva,©2012AGÊNCIAESTADOLTDA)

Bumar plans to renegotiate a recovery vehicle contract Bumarhadearliersignedacontractforthedeliveryof204WZT-3armoredrecoveryvehiclesforIndia’sarmoredtroopssignedwithBEML.Itnowplanstorenegotiatethecontractorwillterminateitforthear-moredvehiclescontract.AccordingtothenewPresidentofBumar’smanagementboard,thecontractisunfavorableforBumarwithunrealisticdeadlinesandwouldcauseitsprofitstodecline.

(Source:“PolishcompanyplanstorenegotiaterecoveryvehiclecontractwithIndia,”28May2012,BBCMonitoringEuropean,viaFactiva,©2012TheBritishBroadcastingCorporation.)

BEL receives the SCOPE Meritorious Award for R&DBharatElectronics(BEL)receivedtheSCOPE(StandingConferenceofPublicEnterprises)MeritoriousAwardforR&D,technologydevelopmentandinnovationfortheyear2010–2011.TheawardwasformallyreceivedbyAnilKumar,ChairmanandManagingDirector,BELfromPresidentPratibhaPatilon13April2012.

(Source:“BELreceivesSCOPEMeritoriousAwardforR&D,”AccordFintech,14April2012,viaFactiva.)

Kaveri spin-off engine to power the unmanned combat air vehicle programThemodifiedversionofKaveriturbofanenginewillpowerIndia’sunmannedcombatairvehicle(UCAV)program.Currently,theKaveriengineprogramisundergoingtests

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attheGromovInstituteinRussiaforatestextensiontocompleteitstechnologicalobjectives.

(Source:“KaveriEnginetoPowerIndia’sUCAV,”SP’sAviation,23April2012,viaFactiva,©SPGuidePublicationsPvt.Ltd.)

Brahmos missile to expand fighter optionsBrahmosAerospaceplanstodevelopalightweightanti-shipcruisemissileBrahMos-3deployablebylightandmediumfighters.TentativelycalledBrahMos-3,thecompanysaysthatitislookingtoaddressalargerequirementforsuchweaponsbytheIndianNavy’sMiG-29KandfuturefighterfleetaswellastheIndianAirForce’s(IAF)mediummultirolecombataircraftandsepecatjaguars.

(Source:“LightandLethal;NewBrahMosmissileversionwouldexpandfighteroptions,”9April2012,viaFactiva,AviationWeek&SpaceTechnologyISSN:0005-2175,Volume174,Issue13,viaFactiva,©2012McGraw-Hill,Inc.)

Two Akash missiles test-fired in OdishaIndiatest-firedtwosurface-to-airanti-aircraft“Akash”missilesfromtheIntegratedTestRangenearChandipur,achievingsuccessinone,whilethedataofthesecondtrialwasbeinganalyzed.Eachmissilewasaimedatinterceptingafloatingobjectsupportedbyapilotlesstargetaircraftatadefinitealtitudeoverthesea.Afterthelaunch,theassessmentwasmadewithdataretrievedfromtelemetrystationsandradars.

(Source:“TwoAkashmissilestest-firedinOdisha,onesuccessful,”PressTrustofIndia,28May2012,viaFactiva.)

Vajra corps conducted the “Ashwamedh” exerciseTheVajraCorps,defendersofthePunjabborders,conductedamilitaryexercise“Ashwamedh”inthewesternsector.Theexercisesawunmannedaerialvehicles(UAV),attackhelicoptersandfront-linefighteraircraftcarryingoutbattledrillsinsynergywiththeArmy.Theexerciseincludesthemovementoffor-mationstothetacticalbattleareaandlaunchinganoffensive.Theinfantry,armored,artillery,airdefence,specialforces,engineers,signalsandlogisticsunitsparticipatedinthisexercise.

(Source:“Vajracorpslaunches‘Ashwamedh’exercise,”PressTrustofIndia,25May2012,viaFactiva.)

CABS develops IFF Systems TheCentreforAir-BorneSystems(CABS),aDefenceResearchandDevelopmentOrganisation(DRDO)laboratorysuccessfullydevelopedandprocessedanIdentificationFriendorFoe(IFF)system,IFFMk-12(S).IndigenousIFFisarequirementforAEW&CAircraftandLightCombatAircraft,Tejas.Thelatestver-sionofthewarningsystemcanbefittedonplatformssuchasships,unmannedaerialvehicles(UAV)andmissiles.

(Source:“CABSdevelopsIFFsystem,”DeccanHerald,24May2012,viaFactiva,©2012ThePrinters(Mysore)PrivateLtd.)

India developing an anti-radiation missile Indiaisdevelopingananti-radiationmissile(ARM),whichwouldmultiplythestrikecapabilitiesbydestroyingtheenemy’sadvancewarningsystem.Themissiledetectstheradarbytrackingitselectro-magneticradiationandpulsesgeneratedandcanbemountedontheSukhoifighterplanesSu-30MKI.

(Source:“Indiadevelopingradar-destroyingAnti-RadiationMissile,”SamayLive,29April2012,viaFacti-va,©2012SaharaSamay.)

Agni V to be equipped with multiple warheads Agni-V,withastrikerangeofmorethan5,000kmissettobeequippedwithmultiplewarheads.Themis-silesknownasmultipleindependentlytargetedre-entryvehicles(MIRVs)wouldbecapableofcarryingmultiplewarheadstodestroyseveraltargets.ThiscapabilityexistswithaselectfewcountriessuchastheUS,RussiaandChina.MIRVmissilesareequippedwithsmallon-boardrocketmotorsandcomputerizedinertialguidancesystems,whichmaneuverwarheadstoseveraldifferenttrajectories.

(Source:“PlanstoequipAgni-Vwithmultiplewarheads:DRDOchief,”PressTrustofIndia,10May2012,viaFactiva.)

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Page 36: Eye On Defense  July 2012

Ahmedabad2ndfloor,ShivalikIshaanNear.C.NVidhyalayaAmbawadi,Ahmedabad–380015Tel: +917966083800Fax: +917966083900

Bengaluru12th&13thfloor“UBCity”CanberraBlockNo.24,VittalMallyaRoadBengaluru–560001Tel: +918040275000 +918067275000Fax: +918022106000(12thfloor)Fax:+918022240695(13thfloor)

Chandigarh1stFloorSCO:166-167Sector9-C,MadhyaMargChandigarh–160009Tel: +911726717800Fax: +911726717888

ChennaiTidelPark,6th&7thFloorABlock(Module601,701-702)No.4,RajivGandhiSalaiTaramaniChennai–600113Tel: +914466548100Fax: +914422540120

HyderabadOvalOffice18,iLabsCentre,HitechCity,Madhapur,Hyderabad–500081Tel: +914067362000Fax: +914067362200

Kochi9thFloor“ABADNucleus”NH-49,MaraduPO,Kochi–682304Tel: +914843044000Fax: +914842705393

Kolkata22,CamacStreet3rdFloor,BlockC”Kolkata–700016Tel: +913366153400Fax: +913322817750

Mumbai6thFloorExpressTowersNarimanPointMumbai–400021Tel: +912261920000Fax: +912261922000

14thFloor,TheRuby29SenapatiBapatMargDadar(west)Mumbai–400028Tel +912261920000Fax +912261921000

5thFloorBlockB-2,NirlonKnowledgeParkOff.WesternExpressHighwayGoregaon(E)Mumbai–400063Tel: +912261920000Fax: +912261923000

NCRGolfViewCorporateTower–BNearDLFGolfCourse,Sector42Gurgaon–122002Tel: +911244644000Fax: +911244644050

6thfloor,HTHouse18-20KasturbaGandhiMargNewDelhi–110001Tel: +911143633000Fax: +911143633200

4th&5thFloor,PlotNo2B,Tower2,Sector126,Noida–201304GautamBudhNagar,U.P.IndiaTel: +911206717000Fax: +911206717171

PuneC—401,4thfloorPanchshilTechParkYerwada(NearDonBoscoSchool)Pune–411006Tel: +912066036000Fax: +912066015900

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