eye on defense july 2012
DESCRIPTION
EY India\'s quarterly defense news letter.TRANSCRIPT
• 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
(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
Eye on defence | 15
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
Eye on defence | 16
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.
Eye on defence | 17
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
Eye on defence | 18
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.
Eye on defence | 19
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.
Eye on defence | 20
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
Eye on defence | 21
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
Eye on defence | 22
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)
Eye on defence | 23
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
Eye on defence | 24
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
Eye on defence | 25
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)
Eye on defence | 26
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
Eye on defence | 27
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.
Eye on defence | 28
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.)
Eye on defence | 29
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
Eye on defence | 30
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
Eye on defence | 31
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.)
Eye on defence | 32
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Eye on defence | 33
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Eye on defence | 34
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