• Introduction

• Unmannedaerialvehicles:Indianmarketassessment

01

02

• OffsetPolicy2012:acomprehensivereview

09

• Nightvisiondevices:amarketassessment

14

• RequestforInformation(RFIs) 23

• Requestforproposal(RFPs) 24

• ListofIndustrialLicenses(ILs)filedforthemonthofJuly2012-August2012

26

• Newprojects/investments/contracts 27

• Jointventuresandalliances 29

• Country-leveldealsandinitiatives 30

• Industrybuzz 31

• Sources 34

October2012 Eye on defense

Dearreaders,

Thelastfewmonthshavebeenparticularlyexcitingforthedefensesectorwiththeannouncementofthelong-awaitedRevisedDefenseOffsetGuidelinesandtheclearanceofsomekeyprocurementprograms.

Amidthisrapidlyevolvinglandscape,wearepleasedtopresenttheEyeonDefense,Ernst&Young’squarterlynewsletterondefensefortheperiodJuly–September2012.ThecurrentissueofEye

onDefensecoverskeytopics,whichincludeacomprehensiveanalysisoftherecentlyannouncedrevisedDefenseOffsetGuidelinesandmarketopportunitiesforrelativelynewtechnologyproductssuchasUnmannedAerialVehiclesandNightVisionDevicesbothofwhichhavemajorprocurementprogramsontheanvil.

WiththerecentrevisionsinDefenseOffsetGuidelinesallowinginvestmentin“kind,”technologytransferasavalidmethodofoffsetdischargeandmultiplierstoincludemicro,smallandmediumenterprisesaspartofoffsetprograms,wefeelthatthedomesticdefenseindustrywilldefinitelygetashotinthearmandIndiawillbeabletoclaimitsrightfulplaceinglobalhigh-technologypeckingorder.Thenewpolicywillalsoaffectbroad-baseddevelopmentofthesynergisticsectorsofinland/maritimesecurityandcivilaviation.

Amongtheregularsections,wehaveindustriallicenseapplicants,newprojectsandinvestments,jointventuresandalliances,country-leveldealsandthelatestbuzzintheindustry.

Wehopeyouenjoyreadingthisissue.Ithasbeenourconstantendeavortomakethispublicationincreasinglyrelevanttoyouandwillappreciateyourcommentsandsuggestionsinthisregard.

K. Ganesh RajPartnerandLeaderAerospaceandDefensePractice

Unmanned aerial vehicles: Indian market assessmentUnmannedaerialvehicles(UAVs)orunmannedaircraftsystems(UAS)canberemotelycontrolledorcanflyindependentlybasedonpre-programmedflightplansorbemorecomplexdynamicautomationsystems.Theseplatformsareusedforavarietyofpotentialmilitarymissionssuchasreconnaissanceandsurveillance,targetacquisition,targetdesignation,communicationsrelay,battledamageassessment,signalintelligenceandforattackroles.AlthoughUAVsrepresentarelativelysmallsegmentoftheaerospacemarket,theyconstitutethedynamicandthemostpromisingsub-marketoftheindustry.Theattentiontowardthemisduetotheirpotentialforamajorexpansionandnewrolesinthedefenseandhomeland/civilapplications.TheclassificationsofUAVsarefairlyfluidandtheycanbedoneonthebasisofperformanceaspectsoronthebasisofmissions.OneclassificationthatiswidelyusedworldwideisdonebytheUSmilitary,whichprofilesUAVsintotiersbasedonaltitude;butotherfactorsincludeendurance,speed,rangeandsize.

T I E R

III

T I E R

II+

T I E R

I

T I E R

II

MQ-1 Predator, IAI Heron IAI

Searcher, RQ-2

Pioneer Netra

High Altitude, Long Endurance

UAV (HALE/HAE)

Medium Altitude, Long Endurance

UAV (MALE)

Low Altitude, Long Endurance

UAV

Small/ Micro UAV

A

L

T

I

T

U

D

E

High Altitude, Long Endurance

but low observable

Source:Q-TechSynergy

Eye on defense | 2

India UAV market overviewTheIndianArmywasthefirsttoacquireUAVs,inlate1990sfromIsrael,followedbytheIndianAirForce(IAF)andNavy.Intheinitialyears,mostoftheUAVsoftheIndianArmedForceswereprocuredfromIsrael’sIAIMalat.TheArmyinitiallyobtainedtheSearcherMarkI,followedbytheSearcherMarkIIandfinallytheHeron.TheIAFacquiredtheSearcherMarkIfollowedbySearcherMarkIIbutacquiredtheHeronUAVspriortotheIndianArmy.TheAirForcehas,oflate,acquiredtheHarop,againfromIsrael,whichismorelikeanUnarmedCombatAirVehicle(UCAV).TheIndianNavyalsoacquiredtheHeronUAVs,whichsuiteditslongrangeoffshorerequirements.AllUAVscurrentlyheldbytheArmyarebeingcontrolledattheoperationallevelandservetheneedsatanincreasedlevel.ThereisadirerequirementofUAVsatthetacticallevel,whichneedstobeprovidedtoforcemultiplyresultsatthegroundlevelforundertakingmissionswithaccurateintelligence.Apartfromtheseforeignprocurements,allthedefenseservicesalsohaveindigenouslydevelopedUAVs—NishantandLakshya—intheirinventory.Morearebeingdeveloped.Theholdingpatternisshowninthefigurebelow.

UAVsorDronesareontheriseintheIndianArmedforces.Identifiedasanessentialtoolformodernization.InrecentyearsUAVshavebecomeastapleforIndianbordersurveillance.AlthoughlittlehasbeendoneinthefieldofresearchonUAVssofar,governmentagenciessuchasDefenseResearchandDevelopmentOrganization(DRDO)andBharatElectronicsLimited(BEL)hadbeenworkingonprojectstodevelopUAVsindigenouslyforthethreedefenseservices.DRDOistheprimaryagencyinvolvedinthedevelopmentofUAVsfortheArmedForces.ConstrainedbythelimitationsofdefenseindustryexpertiseandchronicdelaysofDRDOprojects,Indiainitiallyresortedtoimportingoff-the-shelfmodels.LackofUAVsintheinventoryofdefenseforcesandtechnologicalcapabilitiesarethecauseofaconcertedframeworkforcurrentandfutureUAVdevelopmentprograms.

2000 2005 2010 Future

NRUAV

AURA

UAV’s in India

GAGAN UAV

HAROP

NETRA

Source: Compile by Mr. Amit Kumar Singh

IA27%

IAF68%

IN5%

1004

50

23

150

Searcher I, MK II

Source: Compiled by Q-Tech Synergy

Nishant

Heron I, II

120

90

13

Figure 1: Present Holding

8 4

Lakshya Harpy

Eye on defense | 3

Besidesthegovernmentinitiatives,theprivatesectorhasalsoshownkeeninterestinthedesignanddevelopmentandproductionofUAVs.ThedrivetowardsformationofJVswithsomemajorglobalUAVmanufacturersalsosubstantiatesthisfact.SmallfirmssuchasSpeck,Alpha,DesignDynamaticTechnologiesandCoralDigitalTechnologiesPvt.Ltd.arebuildingthesedronesbypartneringwithIsraelifirmsandIndia’sNationalAeronauticsLaboratories,orNAL.However,somecompaniessuchasAnjaniTechnoplast,IdeaForge,MukeshKumarUdyog(MKU),TanejaAerospace&Aviation(TAAL)andJubilantAeronauticshavetakenstepstodevelopUAVsontheirownorwithtechnologycollaborationwithOEM’s.Someoftheprivatecompaniesthathaveevengotdefenselicenseinthisandrelatedsegmentcomprises:

MahindraDefenceLandSystems MelSystems&Services ECIL,BHEL

ZenTechnologies BFUtilitiesLimited TataPowerCo.Ltd

AlphaDesignTechnologiesPvt.Ltd MaxAerospace&Aviation TataAdvancedSystemsLtd

JisnuCommunicationsLtd Mahindra&MahindraLtd SpeckSystems

DataPatterns(India)PvtLtd HalbitAvionicsPvt.Ltd AuroraIntegratedSystems

NovaIntegratedSystemsLtd VarisisPvt.Ltd Larsen&Toubro

Global market size for UAV platformsTheglobalUAVmarketisforecastedtobeworthUS$6.6billionthisyearandisexpectedtogrowataCAGRof6.4%overthenexttenyears,reachingUS$11.4billionby2021.WhiletheglobalmarketwillbedominatedbyAmericanmanufacturers,Europe’smarketshareispredictedtoincrease;however,significantgrowthwillcomefromtheAsia-PacificregionespeciallyfromChinaandIndia,primarilyduetothestressedsecurityenvironmentthere.

Figure 2: World UAV market forecast (2012–2021)

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Am

ount

in U

SD b

illio

n

US -Procurement and R&D

Source: Compiled by Q-Tech Synergy

Rest of the World - Procurement and R&D

Eye on defense | 4

Market potential in IndiaItisanticipatedthatIndiahasboughtUAVplatformsworthapproximatelyUS$1.3billionsinceitsfirstpurchaseinthelate1990stilldate.BytheendoftheTwelfthDefencePlan(2017),thearmywantstoequipUAVsdowntothebattalionlevel,whiletheIAFplanstohavefullyoperationalsquadronsbothofUAVandUCAVby2017.KeepinginmindthecurrentsmallholdingofUAVsystemswiththeIndianArmedForcesandalsotherecentlyissuedtendersforacquisitionofvarioustypesofUAVplatformsbytheIndianMoD;

TheUAVsegmentthuspromisesanoverallopportunitymorethantheUS$2–3billionincapitalprocurementoverthenext5–10years(2012–2020).Thegovernment,acknowledgingtheforcemultiplierroleUAVsaretoplayinthecurrentandemergingnetwork-centricwarfarescenarioandthenaxalsituationinhand,hasstartedinvestingheavilyinUAVs/UCAVstomeettheArmedForcesoperationalrequirements.Italsowantstoinducta“largenumber”ofman-portable“mini”and“micro”UAVsforshort-rangesurveillanceandNBC(nuclear,biological,chemical)detectioninthebattlefield.Rather,IndiaiscurrentlyeyeingtoacquirealmostalltypesofUAVs—tacticalUAV(TUAV),highaltitudelongendurance(HALE)UAV,verticaltake-offandlanding(VTOL)UAVandmediumaltitudelongendurance(MALE)UAVswithintheforecastperiodof2012–2020.However,amongthese,thedemandforMALEUAVsandTUAVsisexpectedtoincreaseduringtheperiod.

Figure 3: Indian imports : 1999-2012 (in US$ million and %)

Source: Compiled by Q-Tech Synergy

8,634 ; 58%1,858 ; 12%

1,300 ; 9%

1,383 ; 9%

363 ; 2%

1,489 ; 10%

Aircraft

Armouredvehicles

UAVs

Missiles

Ships

Others

Figure 4: Anticipated share of UAVs in the Indian defence expenditure (in %)

Source: Compiled by Q-Tech Synergy

25%

30%

15%

15%

10%

4%

1%

Others

Air

Naval

Land

R&D

C4ISR

UAVs

Eye on defense | 5

Program pipelineTheUAVmarketispoisedtogrowatasteadypaceinthecomingyearsofferinglucrativeopportunitiestoforeignandindigenouscompanies.Eyeingthemulti-milliondollaropportunitiesthattheemergingUAVmarketofIndiaislikelytoofferinthecomingyears,severalinternationalcompanieshavealreadystartedvyingfortheIndianUAVmarket.ItisalsotobenotedthatlackoftechnologydevelopmentcapabilitieshavedoggedIndia’sindigenousUAVprogramsandistheprimedriverforpushingIndianarmedforcestoprocurefromforeigncountries.Consequently,evenasblueprintsfortheindigenousdevelopmentofUCAVsarenowbeingfinalized,theIndianArmedForceshaveissuedvariousglobalRFIs/RFPs(asshowninthetablebelow)tomajorarmamentmanufacturersworldwideforprocurementofUAVsandcombatdrones.

RFIs/RFPs issued Quantity CostMiniandMacroUAVforArmy 500 US$85million

HighAltitudeLongEndurance(HALE)UAVforArmy --- US$175million

UAVMissionSimulatorforArmy 1 US$30million

UnmannedCombatAerialVehicleforIAF --- ---

MicroUnmannedAerialSystemsforIAFandIN 95 US$10million

SmallVTOLMINIUASforIAF --- ---

HighAltitudeLongEndurance(HALE)UAVforNavy --- US$150-$200million

Source- Compiled By Q-Tech Synergy

Indigenous developmentApartfromoutrightpurchase,indigenousdesignanddevelopmenteffortsarealsotakingplaceduetotheGovernmentofIndia’spushforanincreasedindigenouscapability,thoughthesehavemetlimitedsuccess.Onewaytoupgradethecountry’sowntechnologyisthroughjointdevelopmentprogramswithothers.Apartfromtheprogramslistedbelow,theDRDOalsohasanIndependentUnmannedSurveillanceAirVehicle(IUSAV)onthedrawingboard,whichissimilartotheX-45andX-47developedintheU.S.andisalsoscoutingforapartnersimultaneouslytodevelopahigh-altitude,longendurance(HALE)solar-poweredUAV.

Eye on defense | 6

SomeoftheongoingindigenousUnmannedAerialVehicles(UAVs)programsareasunder:

Program Manufacturer Quantity CostIndian Air Force (IAF)

Rustom DRDO Total Quantity: 15 US$60 million for 3 aircraft and 1 ground station

AURA Stealth UCAV ADA, DARE --- US$75 million for 2 aircraft and 1 ground station

Nirbhay UAV DRDO 30 ---

Lakshya-II DRDO --- US$531,687.5 each

Indian Navy (IN)

Rustom DRDO TotalQuantity:15 US$60millionfor3aircraftand1groundstation

MALE(MediumAltitudeLongEndurance)UAV-Rustom

DRDO

10 US$225Million

PAWAN-MiniUAV DRDO 4 US$33.2Million

NIRBHAYUAV DRDO 50-80 ---

NavalRotaryUAV DRDO 3 US$232.6Million

Netra,MicroUAV DRDO,IDEAFORGETech

--- US$50000each

GAGANTacticalUAV DRDO,HAL&Israel --- US$55.5Million

Indian Army (IA)

Rustom DRDO TotalQuantity:15 US$60millionfor3aircraftand1groundstation

Rustom-2 DRDO,ADEandoneselectedproductionagencycumdevelop-mentpartner

10 US$342.25million

Nishant ADE Total12;

4inducted

US$4.47millioneach

SlybirdMini-UAV DRDO-ADE,CSIR-NAL,IITs,IISc&NDRF

--- US$350,000for3aircraftand1groundstation

Netra DRDO,IDEAFORGETech

24inductedbyBSFandCRPF

US$50000each

Source:CompiledbyQ-TechSynergy

Eye on defense | 7

The road aheadIndia’scurrentholdingofUAVsisverylittleandthereisaneedforincreasedquantitiestomeetbattlefieldrequirementsforthefuture.Thereexistsaconsiderabledemandforunmannedaerialvehiclesnotjustindefensebutalsoinhomelandsecurityandcivilapplications.Further,inanIndiancontext,thereisanimmediateneedtoweaponizetheseunmannedaerialplatformstodestroyhostiletargetswithprecision.Indiaforeseesthatby2030,thepercentageofmannedfleetwillbereducedsignificantly.This,however,iscontingenttohowsmartandintelligenttheunmannedsystemscanbemade.

ThetendersissuedbytheMoDintherecentpastforVTOL,MediumAltitudeLongEnduranceUAV,TacticalUAVandUCAVconfirmthevalueoftheseaircraftasapriorityforthecountry.AmongtherequirementsfortheIndianforcesarea“bomberUAV”anda“fighterUAV.”Rather,keepinginviewthethreatperceptionsalongtheborders,Indiaismostlikelytopossessafleetofaround30“fighter/attack”UAVsinthenextcoupleofyears.

References

“Home,”TheUAVwebsite,http://www.theuav.com/index.html,accessed5September2012.

“UnmannedAerialVehiclesUAVsIndianperspective,” India Strategic website,”http://www.indiastrategic.in/topstories1369_Unmanned_Aerial_Vehicle.htm,accessed30August2012.

“JubilantGrouptoEnterintoUAVMarket,”Hexxcomwebsite,http://www.hexxcom.com/jubilant-group-to-enter-into-uav-market/,accessed3September2012.

“Top10FutureMilitaryProjectofIndia,”Indian Defence website,www.indiandefence.com/forums/indian-defence-industry/9137-top-10-future-military-project-india.html,accessed8September2012.

DanThisdell,“UAVmarketsettodouble,”Flight International,29March2011,viaFactiva,©2011ReedBusinessInformationLimited.

Eye on defense | 8

Offset Policy 2012: a comprehensive reviewBackgroundInthepastissuesofEyeonDefense,wehavepublishedaseriesofarticlesontheoffsetsdischargemechanismintheIndianMoD,anditistimeforustoreviewtherecentlyannouncedpolicybytheMoD.Inourpreviousarticles,wehavehighlightedthevariousdrawbacksinthepolicyandalsoindicatedthemoodoftheindustry,bothdomesticandforeign.Fromthevariousconferencesandseminars,wegatheredasubstantialamountofinformationandhadafairideaoftheproposedchanges.Wearehappytointimateourreaders,thatquiteafewofourinferences-turned-predictionshaveseenthelightofthedayandhavebeenincludedintherecentlyannouncedDefenseOffsetGuidelines.

Major takeaways: a snapshotTheDefenseOffsetGuidelinesannouncedbytheIndianMoD,isaforward-lookingdocumentincorporatingtheworlds’bestpractices.ThegoodpartoftheinclusionisthatithasbeentailormadeforaperfectfittoIndianconditions.

Recognition of technology transferred to enable manufac-turing or for a complete acquisition of technologies

sought after by the Indian MoD. This is associated with attractive multiplier effects for realization

of offset credits.

The MoD has allowed foreign OEMs to make investment in kind in the private Indian companies, public sector companies as well as to government institutions. Each type of transfer has certain conditions attached to it and had come well packaged.

Tier 1 vendors are allowed to discharge offsets on behalf of the OEMs. There was a grey area here, and

the MoD has clarified the position with industry benefits in mind.

This policy has a definite focus on small industries, providing a multiplier of 150%

for choice of an Indian offset partner from the MSME segment.

The fuzzy nature of responsibility that existed with a distributed responsibility pattern, has now been

clearly defined. While the acquisition wing will be responsible for all RFP-related work on offsets, till

the signing of the offset contract, the newly formed Defense Offsets Management Wing (DOMW) will

take care of post-contract monitoring, banking and policy formulation.

While the penalties hitherto were open ended, with cumulative and recurring recoveries, a cap of 20% of the total obligation has been

imposed during the period of the main procurement contract. In addition, the period of discharge of offsets

obligations has been extended by two years.

Takeaways

TechnologyRisk mitigation

Eligibility of Tier 1 vendors

Focus on small industries

Offset banking

Investment in kind

Responsibility defined

Forward thinking here by the Government will allow the validity to be extended for a period of seven years and has also invited projects for all the good work already executed so far, to be submitted by March 2013.

Eye on defense | 9

Technology

Technologytransfers,whichhavehithertobeendelinkedfromthescopeofoffsetsdischarge,havenowbeenincluded.TheGovernmenthasincludedtwotypesoftechnologytransfers,oneforthetransferofmanufacturingtechnologyandtheotherforhigh-endtechnologiesofamorestrategicnature.

Toenablemanufacturingtotakeplaceorforprovisionofservices,theGovernmenthasproposedanon-equityrouteofinvestmentinIndianenterprisesforco-production,co-developmentandproduction.AnOEMcantransfersuchtechnologytoanIOP,formanufactureorforprovisionofservicesofeligibleproducts.TheOEMwillbeincentivizedbyamultiplierof110%forthebuy-backoftheproductsasanoutcomeofsuchtechnologytransfer.Thus,whileallowingtechnologytransfers,amultipliereffecthasalsobeenprovided.Thisisaverywelcomestep,sincemostIndiancompanieshavenowreachedathresholdwhereintheyarelikelytorequireonlyanincrementalhelptodeliverworld-classproducts.ThereisanincentivefortheOEMtotransfersuchtechnologyandfortheIndianindustrytobenefitfromsuchatransferandalsomovetoglobalmarkets.

Theothertypeoftechnologytransferintroducedinthenewguidelines,isintheformofanacquisition.Thisisaveryinnovativemethodofoffsetdischarge;assuchamodeldoesnotexistinanyothercountryglobally.Theconceptisoneoftechnologyacquisitionwiththeresponsibilityandaccountabilityfortechnologyabsorptionandfurtherexploitation,dulyplacedontheDRDO,thecustodianofDefensetechnologies.Thismakesitfurtherinteresting,sinceontheonehandtheOEMshavebeenconstantlycomplainingthattheIndianindustrydoesnothavethecapabilitytoabsorbtechnologyoroffsetsandontheotherhandtheIndianindustryhasbeencomplainingthatoffsetsinrealtermsarenotvisible.TheTechnologyAcquisitionwilladequatelybridgethisgapandthemodusoperandifortechnologyacquisition,isprettysimpleandstraightforward.Forthefirsttime,theMoDhasalsocomeoutwiththetypeoftechnologiestheyareonthelookoutfor,althoughthismaynotbethecompleteandexhaustivelistthatanOEMislikelytoencounter.ItisbelievedthattheMoD/DRDOwillbemoreaggressiveinseekingtechnologiesthatarecontemporaryandatthecuttingedgelevelsforamoremeaningfulutilizationofthese.DRDOwillnominateacenterofexcellenceforabsorbingthetechnologysoofferedandwillalsoundertakeanexhaustiveevaluationofthetechnologiesintermsofitsrelevanceandusageaswellascreateamodelforafinancialevaluation.Thusthebestbrainswillbebehindtechnologyacquisitionandthedomesticindustryislikelytobenefitinmanywaysthanone.Thisalsoattractsthemaximummultipliereffectintermsofupto300%forfullandunfetteredrightsoverthetechnologysooffered.

ForthelastfiveyearstheOEMshavebeenconstantlycomplainingthattheMoDisnotfocusedoninductingstateofthearttechnologieswithsuitablemultipliers,andnowthatitisinplace,itistobeseeniftheOEMsnowwillbewillingtocomeforwardandoffersuchtechnologiesintheoffsetmodelpresented.Thisisanattractivepropositionandisgoingtobeaverylucrativeone.

Eye on defense | 10

Investment in kind

TheconsolidatedpolicyonFDI,releasedbytheGovernmentofIndia,alreadyallowsinvestmentinkindtoberecognizedasvaluedFDIandthusformsacomponentoftheFDI.TheerstwhileDPP2006tillDPP2011,didmentionofaDFIandnotFDI,sinceevenaccordingtotheFDIpolicy,theDFIisseentobeamoreencompassingterm.WhenthetermDFIwasintroducedinDPP2006,itwasintendedtodrawinvestmentsinkind,sinceitwasstillbelievedthatIndiawasaFEsurpluscountryandtheneedofthehourwastobuildcapability,withadefinitefocusontheDefenseindustrialbase.

Therecentlyreleasedguidelinesdomakeacleardifferentiationinequity(cash)andinvestmentinkind,althoughtheybotharecomponentsofDFI.Bydoingso,theMoDhasprovidedthemuchneededclarityfortheindustry,withoutreferencetoextantregulationsintheconsolidatedFDIpolicy.Investmentinkindisconditionaltoderiveanybenefitintermsofoffsetcredits.Iftheinvestmentinkindisintermsoftechnology,thenwehavediscussedthisintheaboveparagraphsanditcomeswithamultiplierof110%.Iftheinvestmentinkindisintermsofequipment,throughthenon-equityrouteformanufacturerorprovisionofservicesofeligibleproducts,thenabuy-backof40%oftheproductismandated,inorderthatfullrealizationoftheoffsetcreditsaccrues.Therehavebeensomeinstanceswhereinthebeneficiarieshavebeengovernment-ownedworkshops,whicharenon-commercialorganizations.Insuchcasesthebuy-backisnotmandated.Thesehavebeensomeofthethoughtfulchecksandbalancesintegratedintothisdocument.

MSME segment: good initiative

TheMoDhasdonewelltobringtheMSMEsegmentintothelimelightofthegrandprocurementsoftheDefenseservices.ShouldtheforeignOEMchooseamicro,smallormediumenterpriseasanIOP,theyarelikelytogetamultiplierof150%ofthebusinesstransacted,subjecttovalueadditioninIndia.Thisisagreatinitiativeandthiswouldtrulygoalongwaytoenlargethedefenseindustrialbase.IfIndialivesinvillages,theIndianindustrylivesinMSMEs.

TheOEMsarelikelytotakethisveryseriouslytomaximizeontheiroffsetcreditsrealization.TheMinistryofMSMElaysdownthenormsoftheMSMEs,andtheNationalSmallIndustriesCorporation(NSIC),isaminiratnaPSU,undertheMinistryofMSME,forthedevelopmentofthesmallindustrysegment.IndianDefenseindustryhasbeendependentontheMSMEsegmentfornichecapabilities,andtheDefensePSUs,ordnancefactoriesandothersdosourceaconsiderableamountoftheirrequirementsfromtheMSMEs.ThisisboundtobebeneficialtoboththeMSMEsinIndiaandtheforeignOEMs.

Eye on defense | 11

Other refinements

TheMoDhastakentherightstepstoreducetheriskarisingoutofoffsetsintermsofcostpenaltyonthemainacquisitionandhavehence,cappedthetotalpenaltiestoamaximumof20%ofthetotaloffsetobligationduringtheperiodofthemainprocurementcontract,whilealsoprovidinganextendedwindowfordischarge.Bankingofoffsetcreditshasbeenfurtherliberalizedwithaseven-yearperiodofvalidity(althoughitcouldhaveverywellbeenmore),withDOMW,nominatedasthesinglewindowagencyforapprovalsandmonitoring.OEMs,whohavemadeinvestmentsinIndiatillnow,areadvisedtocreateoffsetbankingproposalsandplacethembeforetheDOMWforapprovalbeforeMarch2013.Tier1vendorshavebeenallowedtodischargeoffsetsonbehalfoftheirOEMs,whichisastandardpracticeworldover.Finally,thereismoreclarityontheagencytobeapproachedforanyqueryregardingoffsets—ifitisrelatedtotheRFPinquestion,thenitistheAcquisitionwingandifitistodowithanythingelse,thenitistheDOMW,whichisstillunderformation.

Is this enough?Anypolicyisasgoodasthesystemofimplementation;therefore,thestrengthliesinimplementation.ItwillbeinterestingtoseethepaththeMoDadoptstomakeoffsetsimplementationeffective.ItwillalsobeinterestingtoseehowtheDOMWtakesofffromwhereDOFAleft.

AlthoughtheMoDhastakenintoconsiderationvariousconcernsoftheindustry—thespiritisinthebackgroundandtheletterwillplayanimportantrole.Whiletheemphasisisonmandatorycompliance,thereisstillagapintermsofeffectivequalitychecks.

Valueadditionisstillaconcern,sincethestanceofMoDtocountallforeigncomponentsawayfromthecalculationofoffsetscredits,willbedifficulttoimplement.ItiscommonknowledgethatIndiaasacountrydoesnotproducequalityrawmaterial.Evenifthemanufacturingcapabilityexists,rawmaterialhasstilltobeimported,whatthenisvalueaddition?MoDneedstomakesuitablecorrectionsinthisregard.AnothergoodcomparisonexistswithintheDPPitself,whereintheindigenouscomponentina“BuyIndian”categoryisstipulatedat30%;therefore,acaseexistsfor30%or50%valueadditiontobecountedforfulloffsetcredits.

Eye on defense | 12

PolicystatementtoprovidemultipliersforchoosingMSMEsasIndianOffsetPartnerislikelytobeastepintherightdirectionbuttorealizethefullpotentialofthissegmentitneedstobeenabledtoparticipateinMoDcontracts,withtechnology,fundingsupportandmanagementsupport.VenturecapitalfundsmustbeencouragedtoprovidefundingsupporttotheIndianindustry,withafocusontheMSMEsegmentandamechanismshouldbeevolvedforprovisionofoffsetscreditsaswell.

BankingofoffsetscreditsneedstobemoreliberalandeasyforOEMstoexecute,toenableOEMstomakeincreasednumberoflong-termcommitmentstotheIndianindustry.

ConclusionTheexpansionofscopeofdischargeofoffsetstoincludethesynergisticsectorsofcivilaviationandinlandsecurityisapositivestepandtheOEMsmustlookattheseoptionsfordischargemoreseriously.OEMsmustcomeforwardtocreatemoreprojectsinbankingandtheadvantageofthetimedifferentialprovided.TheIndianindustrymustcreatecapabilitiesinbothmanufacturingandservicessector,throughsuitableinvestmentsandacquiringmandatorycertifications.MoreInvestmentinResearchandDevelopmentmustbemadebytheprivateindustry.Publicprivatepartnershipsareimportantforamoremeaningfulparticipationinsignificantcontractsaswellasforcapabilitybuilding.Infuture,theMoDwillcontinuetoengagewiththeindustryforamoreforward-lookingpolicy.

Eye on defense | 13

Night vision devices: a market assessment

IntroductionAnightvisiondevice(NVD)isanopticalinstrumentthatallowsimagestobeproducedinlevelsoflightapproachingtotaldarkness.Byusingthesedevicesonecaneffectively“see”anobjectatadistanceofupto7,000metersunderpitchdarkconditions.

Itusesambientlight(lightfrommoonandstars)includinglowerportionoftheinfraredlightspectrum,whichispresentbutcanbeimperceptibletooureyes,andamplifyingittothepointthatwecaneasilyobservetheimage.

Working and constructionFigure 5: Working of a night vision device

Source:www.howstuffworks.com

AnNVDworksontheprincipleoffocusingambientlight(photons)intoatube,convertingthemintoelectrons,acceleratingthemandthenprojectingthemontoaphosphorscreentoconvertthemtophotonsandproduceanimage.Thefollowingtabledetailsouttheprocessandfunctionsofeachcomponent:

Eye on defense | 14

Abovetableisbasedonamilitary–grade,hand-heldmonoculardeviceandonErnst&Youngresearch.1UShasrestrictivetechnologyregimeswhichdonotallowexportofcriticaltechnologieslikeImageIntensifiers

NVDsarebeingmanufacturedformorethan40yearsnow.Subsequentadvancementsintechnologyhaveresultedindramaticimprovementsinresolutionandsensitivity.Theseadvancementsintechnologywerereflectedinchangingterminologyandcategorizationby“generation.”EachsignificantadvancementinNVDtechnologyisdenotedbyanewgeneration.AfterbeginingwithGeneration0orGen0,todaycountriesareusingproductsofclassificationGen3andworkingonimprovingittoGen4.“Genx”istheterminologyusedforNightVisionEquipmentmanufacturedintheUS;forthesamekindofequipment,correspondingterminologyusedinEuropeis“XDx”(ProductcharacteristicsandperformanceofaGen3productaresimilartoanXD4Product).

Applications and usesNightVisiondevicesaremostoftenusedbythemilitaryandlawenforcementagenciesasforcemultipliersagainstenemytargetsatnight.Itisalsousedextensivelybythemilitaryfornavigation,surveillanceandtargeting.CommercialgradeNVDsarealsoavailabletociviliansforvariousapplications.Theyareavailableasmonocular,binocularorgoggles.

Component Construction Function Remarks

Manufacturing capability available internationally

Manufacturing capability available in India

SwitchandInfraRedLED

ItisamilitarygradeRotaryMicroSwitch.

AnexternalswitchisusedtoswitchontheNVDandspraytheobjecttobeviewedwithinfraredlighttomakeiteasiertodetect.

Theseswitchesareavailableofftheshelfwithmultiplevendors.

Manufacturingandintegratingcapabilityavailablelocally

Frontlenses/objectivelens

AconventionallenscoatedwithGermaniumisfittedintothehousing,whichismadeoutofaerospacealloy.

Usedtocaptureambientaswellassomeinfraredlight

Generally,majorvendorssuchasFujiandCarlZeissarepreferred;machiningofhousingislikelytobedonebyafive-axismachine

Manufacturingandintegratingcapabilityforlensesavailablelocally;machiningcapabilitylikelytobedevelopedonabuildtoprintbasis

Imageintensifier(constitutesalmost50%ofthecostofmanufacturinganNVD)

Itcontainsaphotocathodefollowedbyamicrochannelplate(tinyglassdiscthathasmillionsofmicroscopicholesinit,whichismadeusingfiber-optictechnology)coveredonbothsidesbycathodesandintheendisaphosphorscreen.Allofthisiscontainedwithinahousingconnectedtobatteries.

Incominglightparticles(Photons)areconvertedtoelectronsbythephotocathodeandacceleratedbythehighvoltagegeneratedbybatteries.OnpassingthroughtheMicrochannelPlatetheyaremultipliedmanytimesoverbeforefinallycollidingwiththePhosphorscreentoproduceincreasedintensityofimage.

Worldwide,thereisonlyalimitednumberofmanufacturersofimageintensifiertubesareavailable.OutsideoftheUS1PhotonisofFranceistheonlyavailablevendor.

Thereishardlyanylocalcapabilitytomanufactureimageintensifiertubes.

Battery TheyuseconventionalAAlithiumbatteries.

Thebatteriesareusedtogeneratehighvoltagetoaccelerateelectrons.

Itisavailableofftheshelfwithmultiplevendors.

Manufacturingandintegratingcapabilityofthesebatteriesareavailablelocally.

Eyelenses/ocularlens Itissameasfrontlenses/objectivelens.

Theseareusedtomagnifyandfocustheimage.

Itissameasfrontlenses/objectivelens.

Itissameasfrontlenses/objectivelens.

Table: Night Vision Device parts and their functions

Eye on defense | 15

Theycanbehandheld,helmetmounted,headmounted,gunmounted,handheldweaponmounted,oranyotherformastheplatformdesires.Theyarealsolikelytocomewithapicatinnyrail,IRlaserilluminator,IRLEDilluminatorandmagnificationlenses.FollowingarethevarioususesthatanNVDcanbeputto:

1. Night vision products for police, military, border patrol and security

• Nightaimingdevicesforhand-heldweapons

• Nightaimingdeviceforartilleryguns

• Nightaimingdevicesforarmoredvehicles(tanks,infantryfightingvehiclesetc.)

• Nightaimingdevicesforsnipers

• Nightvisiondevicesfordrones(UAV)

• Nightvisionsingle/duallensgogglewithheadmountfordrivers

• Gogglesforpilots

• Nightvisionbinocularsforlongrangeobservation

• Nightvisionfornightphotography(professionalgrade)

2. Night vision for commercial market

• Nightvisionforhunters

• Nightvisionforcommercialmarine

• Nightvisionfornightphotography(Commercialgrade)

• Nightvisionforastronomy

• NightvisionforTVjournalists(TV-NewsTeams)

• Nightvisionforprivateinvestigators

Eye on defense | 16

Indian market for night vision equipmentIndiahasenteredoneofthemostsustainedandintensivecyclesofdefenseequipmentprocurementandupgrade.AccordingtotheReportofWorkingGrouponDefenseEquipmentinIndia,enhancingitsnightfightingcapabilityhasemergedasoneofthemostcriticalareasoffocuswithitspotencyandderivativedemandarisingoutofapplicationacrossplatforms.

Untilashortwhileago,IndianforceshadbeenusingNightVisionproductsofsecondgeneration,whichareoperationallymuchinferiortothelatestthirdgenerationequipmentavailableintheglobalmarket.Inearly2010,theArmyreportedthatitwasshortbyaround30,000third-generationNVDs.Aspartofitsmodernizationandupgradingweaponry,theIndianArmyhasplannedtoequipallitsbattalionswithnightvisionequipment.Inadditiontothis,standaloneprojectsforequippingplatformsrangingfromarmoredvehiclestohelicopterswithnightfightingcapabilityhavemadethisopportunityoneofthemostexcitingopportunitiesavailableintheIndianDefenseprocurementplan.AconsiderablepartofdemandinNVDshasalsobeenoriginatingoutofthemodernizationofforcesthatMHAisundertakingfortheCentralandthestatepoliceforces.

Sofar,Indiaisonlyabletosatisfyitsdemandthroughimports.TherehavebeenattemptstoimportdevicesinpartstoIndiainordertoassemblethemonlocation.ApartfromthisnoIndiancompanyhasbeenabletoindigenouslymanufactureaThirdGenNightVisionDevice.Technicaltie-upsandoutrightimporthaveservedtofulfilltherisingdemand.

BharatElectronicsLimited(BEL)haswonaround80%ofcontractsfromtheMinistryofHomeAffairsfornightvisiondevicesoverthelastthreeyears.ItwaschosenasasinglevendortosupplytheParamilitaryForceswith32,766telescopicnightvisiondevices.BELstartedsupplyingtheNVDsinSeptember2010.KitsweresuppliedfromSDSinIsraelandBELperformedassemblyinIndia.In2011BELreceivedanotherordertomanufacture30,634NVDsforrifles,rocketlaunchers,lightmachinegunsandbinocularsfromtheIndianArmy.Therewereincidentsofirregularitiesinsuppliesduetowhichdeliverieshadtobestopped.Thestatusoftheseprojectsisuncertain.

Thusthenightvisionmarkethasopenedforotherprivateplayersindicatingbettercompetitiveenvironmentinthenearfuture.ItprovidesauniqueopportunityfortheIndianindustrytobecomekeypartnersinsystemintegrationforglobalOEMsandaddresstheestimatedUS$1billionnightvisionequipmentopportunityarisingoutoftheIndianmarketinthenextsevenyearhorizon.

Market potential Globally,demandfornightvisiondeviceshasgoneupdramaticallyinthelastcoupleofyearsasalargenumberofcountriesareembarkinguponsoldiermodernizationprograms(mostnoteworthyofthembeingLandWarriorofUSA,FISTofUK,FelinofFrance,COBRAofBrazilandldZofGermany).TheseareexpectedtostandardizeNVDaspartofstandardkitforsoldierstherebycreatingalargedemandinthenexttwotoeightyearstime.

MarketpotentialofnightvisiondevicesislikelytobebetterunderstoodbytryingtoanalyzeitagainstthebackdropofrecentlyawardedcontractandthenprojectingthefuturedemandarisingoutofboththeMinistryofDefenseandMinistryofHomeAffairs.

Eye on defense | 17

Recent contractsFollowingnoteworthycontractshavebeenawardedsinceJanuary2010:

Future opportunityIncludingthetwoyetunfulfilledordersplaceduponBELbytheParamilitaryForces(32,766NVDs)andtheArmedForces(30,634NVDs),followingprogramsconstituteamajorityoffutureopportunityarisingoutofthemarketforNVDsinIndia.Whereastheprogramandnatureofprocurementopportunityislikelytobeidentified,thequantumofprocurementremainsamatterofanalysis.Thusthenumbersareonlyindicative.

Buyer Seller Product No. of Units Size of Order

Central Police Forces (Ministry of Home Affairs)

BorderSecurityForce BEL PassiveNightVisionTelescopicSightsfor5.56mmINSASRifle INR81,63,71,919/-

BorderSecurityForce BEL PassiveNightVisionTelescopicSightsfor5.56mmINSASRifle INR234,04,42,196/-

ITBP BEL NightVisionBinocular 25 INR61,49,385/-

NSG BEL PNVGoggles 100 INR1,30,87,300/-

NSG BEL PNVGoggles 103 INR1,34,79,919

NSG BEL PNVBinocular INR27,19,541/-

NSG BEL PNVGogglesfordrivers 20 INR67,19,360

NSG M/sAligatorDesignsPvt.Ltd

NightSightforSIG(SWAT)AssaultRifles 128 INR2,86,96,648/-

SehestraSevaBal - PNVMonocular 75 INR1,47,00,000/-

SehestraSevaBal - PNVBinocular 98 INR2,63,00,000

CRPF - PassiveNightVisionBinocular 3240 Approx.INR100,00,00,000

CRPF - PassiveNightVisionMonocular 3804 Approx.INR100,00,00,000

Armed Forces (Ministry of Defense)

ArmyCommanderSpecialFinancialPowerCellNorthernCommand

- PassiveNightSightforINSAS 100 INR3,20,00,000

ArmyCommanderSpecialFinancialPowerCellNorthern - PassiveNightVisionBinocular 150 INR4,50,00,000

MoD StarDefenseSystemsofIsrael NightVisionEquipment

PlacedordersforNIS153million;previousordersincludeaNIS40millionorderinFebruary,aNIS13millionorderinSeptember2010,andaNIS130millionorderinAugust2010

Eye on defense | 18

Ministry of Defense

1. Helicopter Pilot Sights: TheArmyAviatonbranchisprocuringadvancednight-visiongoggles(NVGs)foritspilotsflyinghelicopterssuchasCheetahs,ChetaksandDhruvadvancedlighthelicopterstoenablethemtooperateeffectivelyaftersunset.AnRFIforaircrewadvancednightvisiongogglesforIndianarmyaviationwasreleasedduringthefirsthalfof2010.Procurementandinductionwillbecarriedoutinphases.Theprogramisexpectedtobeextendedtoincludeinductionsofnewhelicoptersinthearmedforces,whichisslatedtobetothetuneof1,100helicoptersinthenexttenyears.

2. F-INSAS:TheFutureInfantrySoldierasaSystemhasbeentakenuptoequiptheIndianinfantrywithadvancedweaponry,communicationnetworkandinstantaccesstoinformationonthebattlefield.TheF-INSASroadmap,laidoutbyIndiandefenseofficialsattheproject'soutset,statesthatthenewsystemwillbesuppliedtoeighttoteninfantrybattalions(upto10,000soldiers)by2015,withall325battalions(eachwith800–1,000soldiers)fullyupgradedby2020.

• Aspartoftheprogram,RFPsfor44,000CloseQuarterCarbinesand66,000AssaultRifles,alongwithholographicweaponsightsandmounted“3rdGen”NightVisiondevice,havealreadybeenissuedandareinvariousstagesoffinalization.ThiswillbefollowedbyindigenousmanufactureofalargenumberofsimilarmodularcarbinesbytheOrdnanceFactoryBoard(OFB)undertransferoftechnology.

• Nightvisiondevices,aspartofthisprogram,willalsobehelmetmountedandthetotalquantumofordercouldbeintherangeof300,000units.

3. Land systems:Armoredvehiclesandtanksrequirenightvisionequipmentfordriver,gunnersandcommandersight.Proposalstoequipthearmy’slandsystemsareinvariousstagesofimplementation/procurement.

• BMPupgradeprogram—Around2,200Soviet-designed“Sarath”BMP-IIinfantrycombatvehicles(ICVs)lacknight-fightingcapability.Aconsiderableportionofthesewillbeupgradedinphases.

• Tankdriversights—Thesewillbesuppliedtoaround2,000–2,200RussianandlocallybuiltT-72andT-72M1s“Ajeya”mainbattletanks(MBTs),whichformthebackboneofits59-oddarmorregiments,

• FutureInfantryCombatVehicle“make”programwilltakeoffsoon,underwhich,vehicleswillbemanufacturedbyIndiancompaniesinIndia.Thiswillinvolvemountingofaround2,600vehicleswithnightsights.

• Overallacompositeopportunityofaround6,000sightsislikelytobeonthehorizonfromthissectionofplatforms.

4. Field Artillery Rationalization Plan

• AspartoftheFARP,IndianMoDplanstoinductaround3,800artillerygunsinthenext10-yearhorizon.Outofthese,around1,700gunswillbemanufacturedindigenously.Artillerygunswillrequirenightvisionsightstobeintegratedontotheplatform.

• Apartfromthese,thereisanupgradeprograminthepipelineforlightfieldgun(105mm)andRussianM146gun(130mm).Thequantumarisingoutofthiswillbetothetuneof1,200guns.

5. Other platforms

• Nightvisiondevicesareplannedtobemountedonrocketlaunchers,airdefensesystems(suchasVSHORAD)andanti-tankmanpads.

Eye on defense | 19

Ministry of Home Affairs

1. Strengthening of Central Police Forces:MinistryofHomeAffairshassanctioned2,671passiveNVDs(monocular),8,052passiveNVDs(binocular),8,109passiveweaponsightsand203night-visiongogglestobeprocuredforforcessuchasCentralReservePoliceForce(CRPF),BorderSecurityForce(BSF),SashastraSeemaBal(SSB),Indo-TibetanBorderPolice(ITBP)andtheelite“blackcat”commandoNationalSecurityGuard(NSG).

2. Modernization of Police Forces:ConceivedbytheBureauofPoliceResearchandDevelopment,policemodernizationplanistheflagshipprogramofMHAtomodernizeandincreaseeffectivenessofstatepoliceforces.Enhancementofnightsurveillancecapabilityisalsoafocusarea.CurrentlytendershavebeenopenedforGadchiroliPolice,MaharashtraPoliceforbothnghtvisionbinocularandmonocular,BiharPoliceforbinoculars(50Units),TamilNaduPolicefornightvisionbinoculars(90Units),andKeralaPoliceforbinoculars.RecentlyconcludedcontractshavebeenwithAndhraPolice(25Units),UttrakhandPoliceandKeralaPolice(20Units),AssamPolice(14Units),JharkhandPolice(100Units),KarnatakaPolice(12Units)andPuducherryPolice(5Units).

Other agencies

1. Criticalinfrastructureprotection:Nightvisionequipmentalsofindsapplicationinsurveillanceandprotectionofcriticalinfrastructure.AnindicativelistofinstitutionswhichhaveprocuredNightVisionDeviceslatelyconsistsofRajivGandhiThermalPowerPlant,Hisar,Haryana,ChidambaranarPortTrust,Tuticorin,TamilNadu,NorthernRailway(100Units),EasternRailways(209unitsbinoculardevices),SouthEastCentralRailway,ECIL,ChiefConservatorOfForest,Haldwani,Uttarakhand,DepartmentOfForest,Tadong,Sikkim,HimachalPradeshForestDepartment,Shimla.AlsoAirportAuthorityofIndiahasapprovedproposalsforequipping50airportswithnightvisiondevices,whichhavealreadybeendoneitonfourairports.

Company Details of operation

BELOP-BELofIndiawithDelftInstrumentsofHolland

• BE-DELFTElectronics,ajointventurebetweenBengaluru-basedBharatElectronics(BE)andDelftInstruments,HollandwasrenamedasBELOptronicDevicesin2002.

• Thecompanyprovidesresearch,developmentandmanufactureofImageIntensifierTubesandassociatedhighvoltagepowersupplyunitsforuseinmilitary,securityandcommercialsystems.

• In2011BELOPannouncedthatithasanorderfromtheIndianArmyfor30,000-pluspieces.Thethree-yearcontractislearnttobeworthINR9billion.

RoltaofIndiawithThalesofFrance

• RoltaplanstomanufacturenightvisiongogglesthroughitsJVwithThales.• ThecompanyhasplannedtosetupafacilityinMumbai,andobtainedindustriallicenseforthesame.• CoretechnologyisexpectedtobeprovidedbyThalesandRoltaislikelytoassembleinIndia.• RoltahasdisplayedfamousproductsfromthestablesofThalessuchasLUCIE,MONIEatvariousforumsandexhibitions.

TataAdvancedSystemsLtd.ofIndiawithITTExelisoftheUS

• UnderanMoU,thecompanieswillpartnertosupplymanufacturingcapabilitiesinIndia,formaintenanceandlife-cyclesupportforGen3nightvisionproducts.

• ITTplanstoprovideTASLwiththelatestGen3nightvisionimageintensifiertubesandkits.Thereafter,manufactureofhighprecisioncomponentsandsub-assembliesofthedeviceswillbeundertakenbyTASL.

• SinceintensifiertubesofGen3isarestrictedtechnologyintheUS,theoutlookofconversionofthissupportagreementintoamanufacturingsubcontractagreementremainscircumspect.

MKUofIndiawithanundisclosedForeignpartner

• ThecompanyplanstoprovidelatestandindigenouslydevelopedadvancedrangeofNVDswithatotalinvestmentofINR1billion.• TherangeofNVDswillincludethreenightvisiondevices,i.e.,monocular,binoculars(singletube),andbinoculars(twintube,for

3Dvisionatnight).Inaddition,theywillalsomanufacturenightsights,whichcanbeattachedtocarbines,assaultrifles,sniperrifles,andmachineguns.

Companies in India

Eye on defense | 20

AmongtheothercompaniesthathaveshowninterestintheIndianmarketareSDSofIsrael(whichhasalreadywoncontractsinIndia)andMeoptaSystems,CzechRepublicandOIPSensorSystems,BelgiumwhohavebidonIndiacontractsforNVDs.OtherinternationalcompaniesthatarelookingtotargettheIndianmarketarestrategicconglomeratessuchasZeissinGermany,ITTintheUS,ThalesAngenieuxinFranceandSimradinNorway.

Challenges• Technologytransferrestrictions:Internationally,sensitivetechnologiessuchasnight

visionarecharacterizedbyrestrictivetechnologyregimes.Majorityofthedefensecontractors,whopossessthesetechnologies,areeithergovernmentownedorfunded.Hence,theyhavesovereignsensitivitiesandconcernsinestablishingoperationsoutsidetheircountries.

• Exportrestrictions:Theitemcode90049010undertheDefinition-PassiveNightVisiongogglesisrestrictedundertheITC(HS)ClassificationasITC(HS).Astheitemislistedasrestrictedforexportpurposes,anexportlicensehastobeappliedfromDGFT(DirectorGeneralofForeignTrade)bytheexportingentity.

• Manufacturingrestrictions:Accordingtoexhibitno.7(contd.),pressnoteno.9(1991series)oftheNationalIndustrialPolicy1991,nightvisiondevicescomeunderthecategoryofcompulsorylicensinginaccordancewiththeDIPP.

• Singlevendorrisk:Indiahasnotbeenabletodeveloptechnicalcapabilitytomanufactureimageintensifiertubesindigenously.ThesearemanufacturedbyPhotonisofFrance(apartfromUScompanies).Thisisapotentialsinglevendorsituation,whichwillaffectscalabilityandcontinuityofthebusinessintheabsenceofindigenousmanufacturingtechnology.

OptoElectronicFactoryDehradunofIndia

• Nightvisionequipmentisassembledatthisfacility.• ThermalImagingNightSightforT-72(CTIT-72)hasbeendevelopedbyOLFinassociationwithIRDE,Dehradun.• ThecompanyhassuppliednightvisiondevicestotheCRPFin2000,toAssamRiflesin2002andtotheITBPin2007.

GeneralOpticsAsia • Thecompanyhasappliedforaindustriallicenseforguidanceandnavigationequipment,imagingequipmentandnightvisiondevices,sensors,surveillanceequipmentandpartsthereof.

• ItplanstoinvestaroundINR250millionfortheabove.

AlphaDesignTechnologyofIndiawithITLOptronicsLtd.ofIsrael

• Alpha-ITLElectro-OpticshasbeenaccordedDGS&D(QA)Certificationforbulkmanufactureofmorethan15,000NVDsperyear.

• ItdoessounderaLicenseAgreementfromM/sITLOptronicsLtd.,Israel.

BELofIndiawithPhotonisofFrance

• BELisexpectedtosetuptheirfirstImageintensifierTubeXD4(equivalentto“Gen3“oftheUS)productionfacilityoutsideEuropeinIndia(atBEL’sfacilityinPune).

BECILwithaRussianFirm

• In2010AssamRiflesprocured2,000nightvisiondevicesfromBECIL• BECILdevelopedtheNVDincollaborationwithaRussianfirm.

DefsysofIndia • Defsysappliedforanindustriallicenseforsimulators,riflesights,nightvisionsights(5000unitsataninvestmentofINR120million).

• ThecompanyislookingatapossiblecollaborationwithNewNogalightunderSDSGroupofIsrael.

ITIofIndia • India’soldestPSU,ITI,issearchingforapartnertoprovideToTtomanufacturenightvisionequipment.TheyreleasedanRFPtothiseffectinJuly2011.

• TheyintendtoparticipateinthecontractsfloatedbyCRPFfor3241binocularsand3804monoculars.

Eye on defense | 21

ConclusionThereisasignificantopportunityforNVDsintheIndianmarket.ItisexpectedtocrossUS$1billioninthenextfiveyears.Thedemandfornightvisionequipmentisdirect(hand-heldsystems)aswellasderivative(mountingonplatforms).Thedramaticincreaseininterestinthismarketisbeinggeneratedasallthearmedforces(theArmy,theAirForce,andtheNavy),CentralPoliceForces,ParamilitaryForcesandstatepoliceforceshaveannouncedbigticketprojects,whichemphasizesonenhancementofnightfightingcapability.Notonlythis,criticalinfrastructureprotectionanditscommercialapplicationsalsomakeitaninterestingopportunity.

IndiahasnotbeenabletodevelopmanufacturingcapabilityforthirdgenerationNVDs,mostlyduetotechnicaldifficultiesinnotbeingabletomanufactureandassembleimageintensifiertubes.FurthercriticaltechnologyexportrestrictionsofvariousnationshavepreventedIndiatoachievecompleteindigenizationinnightvisiontechnologyandconsequentlyIndiahasreliedmostlyonimportfromothernations.

Despitethis,allmajormanufacturersofNVDsintheworldarenoweyeingtheattractiveopportunitythatIndianprocurementscenariopresents.ThisisevidentfromthelatestjointventuresformedbyITTExelisoftheUSwithTataAdvancedSystemstomanufacturethirdgenerationNVDsinIndiaandBELandPhotonisofFrancetyinguptomanufactureXD4imageintensifiertubesatPune.Moresucharrangementsareexpectedtobefinalized,resultinginvariousjointventures(JVs),coproductionarrangements,andmarketingarrangementwithIndiancompaniesbecomingprimeson“GlobalBuy”programsandtransferoftechnologywithproductioninIndia.

References

AjaiShukla,“Deepdeficienciesaboundindefenceprocurement,”Business Standard,31March2012,viaFactiva,©2012BusinessStandardLtd.

“TrackYourILApplication,”Department of Industrial Policy and Promotion website,http://dipp.nic.in/English/policy/Appli_Status.aspx,accessed15September2012.

“OpenTenders,”Indian Tenders website,http://tenders.gov.in/,accessed30September2012.

“InsidestoryofIndia’sbiggestnightvisiondevicescam,”Syed Nazakat world press.comwebsite,http://syednazakat.wordpress.com/2011/06/04/inside-story-of-indias-biggest-night-vision-device-scam/,accessed15September2012.

“Fighttonight!nightvisionprogrammesinAsia,”Defense Review Asia website,http://www.defencereviewasia.com/articles/172/FIGHT-TONIGHT-NIGHT-VISION-PROGRAMMES-IN-ASIA,accessed20September2012.

“Portfolio:Nightvisiondevices,”Rolta Thales website,http://www.rolta.com/rolta-thales/portfolio/night-vision.html,accessed20September2012.

MinistryofDefense2010-112annualreport.

RajatPandit,“IndianArmy’smodernizationdrivegatherssteam,”The Times of India,24December2011,viaFactiva,©2011TheTimesofIndiaGroup.

“ITTExelisandTataAdvancedSystemsLimitedPartnertoManufactureGeneration3NightVisionDevicesinIndia,”BusinessWire,29March2012,viaFactiva.

MinistryofHomeAffairs2010-11annualreport.

Eye on defense | 22

Date of Issue RFI Details Response Date Issued By Service

26Jun2012 TerrestrialTrunkedRadio(TETRA)HandheldRadio

31July2012 DirectorateGeneralOfWeaponsAndEquipment(WE-9) IndianArmy

2July2012 DrivingSimulatorwithMotionPlatform

30July2012 DirectorateGeneralofSuppliesandTransport(ST-11) IndianArmy

10July2012 AntiMaterialRifle 5Aug2012 DirectorateGeneralofInfantry/Infantry–5 IndianArmy

12July2012 TrackedExcavator8Ton 16Aug2012 CombatEngineersDirectorate,CombEngrs-6

IndianArmy

13July2012 BreachingMunition 5Aug2012 DirectorateGeneralofInfantry/Infantry–5GeneralStaffBranch

IndianArmy

16July2012 CBRNMobileDecontaminationSystem(PersonnelandEquipment)

23Aug2012 CombatEngineersDirectorate,CombEngrs-6 IndianArmy

16July2012 CBRNMobileDecontaminationSystem(VehicleandInfrastructure)

23Aug2012 CombatEngineersDirectorate,CombEngrs-6,

IndianArmy

26July2012 BorePumpActionShotGun(PASG)

15Aug2012 DirectorateGeneralofInfantry/Infantry–5 IndianArmy

16Aug2012 ELINTInterceptReceiverforMountainousTerrain

25Nov2012 DirectorateGeneralofMilitaryIntelligence

IndianArmy

16Aug2012 InternetProtocol(IP)Radio 1Oct2012 DGWE-9,WorkingGroupCDNS IndianArmy

23Aug2012 155mmWheeled(SelfPropelled)Gun

20Sep2012 DirectorateGeneralofArtillery,Artillery-14 IndianArmy

31Aug2012 PrecisionApproachRadar(PAR) 27Sep2012 DirectorateofNavalAirStaffIntegratedHeadquarters IndianNavy

4Sep2012 ModularIndividualLoadCarryingEquipment(MILE)

5Oct2012 DirectorategeneralofInfantry/PMOFINSAS IndianArmy

5Sep2012 Igla1MMissile 30Sep2012 DteGeneralofArmyAD,RoomNo-606 IndianArmy

6Sep2012 MobileElectromagneticInterference(EMI)/ElectromagneticSusceptibility(EMS)Lab

30Sep2012 ArmyCentreforElectromagnetics IndianArmy

7Sep2012 Strela10MMissile 20Sep2012 DIR(PROC)ArmyAirDefenceGeneralStaffBranch IndianArmy

25July2012 AirportSurveillanceRadar 23Aug2012 DirectorateofNavalAirStaffIntegratedHeadquarters IndianNavy

25July2012 FibreOpticsTestandMeasurementFacilities

28Aug2012 PrincipleDirectorWeaponEquipment IndianNavy

4Sep2012 SubmarineRescueBellSystem 20Sep2012 DirectorateofSpecialOperationsandDiving IndianNavy

18Sep2012 1KWHFTransmitter/TransreceiverSet

19Oct2012 DirectorateofNavalSignalsRoomNo6,SenaBhawan‘C’Wing

IndianNavy

20Sep2012 HighSpeedExpendableAerialTarget

30Nov2012 DirectorateofStaffRequirementsIntegratedHeadquartersofMoD(Navy)

IndianNavy

24July2012 HFRTSetsforcommunication 24Aug2012 PDC4ISR IndianAirForce

24July2012 Spatialdisorientationtrainingsimulator

24Aug2012 PDASR IndianAirForce

7Sep2012 ExpressionofInterest:QR/SpecificationofMiniUAV

22Sep2012 CommnBranch,Dte.Gen.,CRPF CRPF

18Sep2012 ExpressionofInterest:HandHeldSatellitePhone

30Sep2012 CommnBranch,Dte.Gen.,CRPF CRPF

18Sep2012 ExpressionofInterest:SatellitePersonalTrackerSystem

30Sep2012 CommnBranch,Dte.Gen.,CRPF CRPF

Request for Information (RFIs) (June 2012–September 2012)

Eye on defense | 23

Date of Issue RFI Details/Equipments Response Date Issued By Remarks

18July2012 IPBasedCCTVSurveillance 13Aug2012 OCIT,ITCell,OfficersTrainingAcademy,Gaya

ForIA

6Aug2012 CartsSA7.62mmSniperammunition 8Oct2012 DDGPPO ForArmy

7Aug2012 MiniUAVs 5Sep2012 DirectorACSFPCell ForArmyCommander;Qty:20

9Aug2012 VibrationInsulator 30Aug2012 CentralOrdnanceDepot-Kandivli(E),Mumbai

ForIndianArmy

23Aug2012 CounterTerrorismOperationsPlanningToolandWargamingSystem

27Nov2012 CounterTerrorismOperationsPlanningToolandWargamingSystem

ForIA

27Aug2012 EngineerReceeEquipmentforBMP-II 19Sep2012 OICACSFP,HQWesternCommand,GS(JtOps)Branch

ForIA;Qty:08Units

4Sep2012 HolographicWeaponSightForRifleAK47

15Oct2012 GOC-in-C,HQNorthernCommand

ForIA(Commander)Qty520Nos.

7Sep2012 VehiclesModificationofNetworkOperationalCentres(NOC)TacticalDataNetwork(TDN)

20Sep2012 HeadquartersWesternCommand

ForIA

18Sep2012 InteractiveFireArmTrainingModelandSimulationofSmallArmsFire

16Oct2012 GSO-1(Trg)HQInfantrySchool,Mhow(MP)

ForIA

28Jun2012 CCTVSurveillanceSystem 6Aug2012 UnitLogisticsSection,JCNagarPost,Hebbal.Bangalore

ForIAF;Qty:25

28Jun2012 Reconditioningof9klrefuellers 10July2012 DteofMT,AirHQ,WestBlock–VI

ForIAF

28Jun2012 Reconditioningof11klrefuellers 10July2012 DteofMT,AirHQ,WestBlock–VI

ForIAF

29Jun2012 UnderVehicleScanningSystem 30July2012 HeadquarterCentralAirCommand

ForIAF

29Jun2012 SpikesBarrier 30July2012 HeadquarterCentralAirCommand

ForIAF

29Jun2012 CCTV 30July2012 HeadquarterCentralAirCommand

ForIAF

28Jun2012 JackalArmourPlates6mmThick 30July2012 GeneralManagerVehicleFactory,Jabalpur

ForOFB

28Jun2012 JackalArmourPlates4mmThick 30July2012 GeneralManagerVehicleFactory,Jabalpur

ForOFB

10July2012 MineSweepingPloughtoDrgKMT-6 26Sep2012 Sr.GeneralManager,HeavyVehiclesFactory,Avadi

ForOFBQty:27

13July2012 RDXTNT8020HexoliteTypeB 16Aug2012 Dy.GeneralManagerForGeneralManagerOrdnanceFactoryKhamaria

ForOFBQty:400MT

29July2012 Supply,erectionandcommissioningofClosedvesselFiringUnit

30Aug2012 OrdnanceFactory,Itarsi ForOFB

2Aug2012 SafetyFuzeNo.11MK2/LA 30Aug2012 TheGeneralManager,OrdnanceFactoryChanda

ForOFB

3Aug2012 IntegratedLineofPlantandMachineryforManufactureof5.56x45mmSmallArmAmmunitionCargt.Cases

30Sep2012 JointGeneralManagerAmmunitionfactoryKirkee,

ForOFB

6Aug2012 Plantandmachineryformanufactureof9x19mmSmallArmAmmunitionCargt.cases

30Sep2012 JointGeneralManagerAmmunitionfactoryKirkee,

ForOFB

Request for Proposal (RFPs) (June 2012 - September 2012)

Eye on defense | 24

6Aug2012 PlantformanufactureofclosedtypeDetonator356mg

30Sep2012 AmmunitionfactoryKirkee, ForOFB

6Aug2012 PlantandMachineryforFillingPlantforManufactureofClosedTypeDetonator356Mg

30Sep2012 IndianOrdnanceFactoriesAmmunitionFactory,Khadki,Pune

ForOFB

17Aug2012 ElectricFuzeUncharged 7Sep2012 OrdnanceFactory,Badamal,Bolangir

ForOFBQty:91500Units

25Aug2012 FuzePercussionDA5A(Empty) 28Sep2012 AmmunitionFactory,Khadki–Pune

ForOFBQty:214117Nos.

25Aug2012 MineAPM

11Sep2012 Dy.GeneralManagerForGeneralManager/AFK

ForOFBQty:5870Sets.

31Aug2012 BombBody51mm 5Oct2012 Dy.GeneralManager/AmmunitionfactoryKirkee

ForOFB

3Sep2012 105mmLongRangeChaffRocket(LRCR)(AssembledEmpty)

30Oct2012 AmmunitionFactory,Khadki–Pune

ForOFBQty:1000set

17Sep2012 TurnkeyexecutionofDENSACPlant 6Nov2012 HighExplosivesFactory,Khadki,Pune

ForOFB

28Jun2012 LifeJacketsandLifeBuoys 23July2012 OfficerCommandingHQWaterwing,Pathankot

ForBSF

3July2012 Arms 14Aug2012 TheDIG/Commandant,CSWTBSFIndore

ForBSF

30Aug2012 HandHeldThermalImager(Biocular) 4Oct2012 DirectorateGeneral,BorderSecurityForce

ForBSFQty:355Nos.

4Sep2012 BicatStripandGrenadeNo90(MK-III) 9Oct2012 ProvisioningDirectorate(ProcurementCell)HQ,DG,BSF

ForBSFQty:8,497Nos.

8Aug2012 InteractiveFireArmsTrainingSimulator 4Sep2012 DeputyComdt(QuarterMaster)

ForCRPF

13Aug2012 CCTVCameras 7Sep2012 OfficeOfTheInspectorGeneralOfPolice,NorthWestSector,CRPF,Chandigarh(UT)

ForCRPF

16Aug2012 SelfIlluminatingMicroscopeComplete(Binocular)

11Sep2012 DC(Proc),LSC,CoBRASector ForCRPFQty:08Units

22Aug2012 AutomaticGrenadeLaunchers(AGLs)(alongwithitsmatchingGrenades)

19Oct2012 DirectorateGeneral,CRPFProvisioningDte.(ProcurementCell)

ForCRPFQty:AGL:110&Grenades:31900No

23Aug2012 IntegratedCommunicationSystem 10Sep2012 DirectorateGeneralCRPF,CGOComplex,NewDelhi

ForCRPFQty:12Nos.

Eye on defense | 25

Appl no. and date Name of the applicant Item of

4603/07/2012

HindustanAerosystemsPvt.Ltd. ManufacturingofOrecusuibNecgabucakCinoibebtsYSEforAerospace,Defence,Railwaysandotherhighandmediumindustryapplications

4703/07/2012

DewsoftFabricationPvt.Ltd. Siliconcarbideceramicplates

4803/07/2012

VipulEnterprises Bulletproofjacketsbulletproofvehiclefirefightingvehicle

4903/07/2012

RelianceAerospaceTechnologiesPvt.Ltd.

Manufactureofpartsandaccessoryforaircraft

5009/07/2012

SGSTekniksManufacturingPvt.Ltd. Manufactureofelectronicprintedcircuitboardassemblies,sub-assemblies,modules,boxbuild,powersupplies,DCtoDCconverters,controlsystemsfordefenseandaerospaceapplications.

5112/07/2012

RiverEngineeringPvt.Ltd. Manufactureofmagneticparts,mechanicalandelectro-mechanicalassemblies(suchasvalves,junctionboxes,connectors,pumpsetc.)andmachinedcomponentsfordefenseandaerospaceapplication

5218/07/2012

AsiaMotorworksHoldingsLtd. Lightarmoredhighmobilityvehicle,infantrymobilityvehicles,lightspecialistvehicles,lightbulletproofvehicles,armoredengineervehicles,armoredlogisticscarriers,armoredrecoveryvehicles

5318/07/2012

PrakashArmsCorporation Armsandammunition

5431/07/2012

PiramalSystem&TechnologiesPvt.Ltd.

Non-explosivecomponents,assemblies,sub-assembliessuchascanisters,containers;standssensors;seekers;firingsystemsforground-basedairdefensesystem

5507/08/2012

PiramalSystems&TechnologiesPvt.Ltd.

Manufactureandassemblyofunmannedaerialvehiclesanditsparts

5614/08/2012

ShoftShipyardPvt.Ltd. Warship

5714/08/2012

PiramalSystems&TechnologiesPvt.Ltd.

Manufactureandsupplyofmachinedmetalandcompositecomponents,sub-assembliesandassembliesfordefenseandaerospaceapplication

5816/08/2012

DeftechServices Airborneavionicsystemmechanicalcomponentsofaircrafts,groundsupportandtestequipmentforrepairofaircraftcomponents

5916/08/2012

KeltechEnergiesLtd. Detonatingfuse

6021/08/2012

SterlingandWilsonLtd. S&Wplanstodesigntheairconditioningsystemsrequiredforradarcooling,suchradarsareusedinsectorssuchascivilaviation,homelandsecurityanddefense

6121/08/2012

LakshmiTechnologyandEngineeringIndustriesLtd.

Aircraftparts

6228/08/2012

SasmosHetTechnologiesPvt.Ltd. Electronicwarfaresub-systems,partsandaccessoriesforairborne,groundnavalapplications,theirupgradeandcomponent

6328/08/2012

SwallowSystemsPvt.Ltd. ManufacturingminiandmicroUAVandpartsthereofwithgroundsupportsystems,compositeaerospacecomponents,auto-pilot,UAVtrainingsimulatorsandavionics

6429/08/2012

EinfochipsLtd., Softwaredevelopmentandelectronicdesignservicesforaerospaceanddefensesystems

List of Industrial Licenses (ILs) filed for the month of July 2012-August 2012

Eye on defense | 26

Name of entity Project details Value

IndianAirForce IndiaandRussiaareexpectedtosignthedesignorR&Dphasecontractforthefifthgenerationfightersbythisyear-endorearly2013.Indiaplanstoinduct200stealthfightersfrom2022onwards.TheIndianfighterwillprimarilybebasedontheT-50tweakedtoIAFrequirements.BeforethesigningoftheR&Dcontract,aseniorteamofHindustanAeronautics(HAL)engineersandIAFexpertsisgoingtoRussiatoensurethatthe"fulldocumentationandotherwork"oftheearlierpreliminarydesigncontract(PDC)hasbeencompleted.

INR1,926billion

IndianAirForce TheMinistryofDefence(MoD)clearedtheprojecttoacquire56transportaircraftfortheIAFtoreplaceitsageingfleetofAvroplanes.ItalsodecidedtooptforaforeignvendortopartnerwithHALtomanufacturetransportaircraft.Thefirst16aircraftwillbeprocuredoff-the-shelfinaflyawayconditionfromtheselectedforeignvendorwhilethenext16planeswillhavetohaveatleast30%indigenouscomponents.Thefigurewillgoupto60%forthelast24.AirbusMilitaryC295andAleniaAermacchiC-27Jarethepossiblecontendersforthedeal.

INR120billion

IndianAirForce TheIndianAirForcecompletedtestsoftheUSAH-64DApacheLongbowassaulthelicoptersandispreparedtoorder/buy22helicoptersfromBoeing.ThetestsconfirmedthecomplianceofAH-64DhelicopterswiththerequirementssetbytheIndianAirForce.TheAH-64DhelicoptershadwonthecontractagainstRussianMilMi-28.

INR77billion

RelianceIndustries

RelianceIndustriesplanstoinvestUS$1billioninthenewaerospacedivisionbesideshiringaround1,500people.InJuly2012,RelianceIndustriesappliedforalicensewiththeDepartmentofIndustrialPolicyandPromotionto”design,developandmanufacture,equipmentandcomponents,includingairframe,engine,radars,avionicsandaccessoriesformilitaryandcivilianaircraft,helicopters,unmannedairbornevehiclesandaerostats.”Thenewbusinessislikelytobehousedunderthecompany'stwonewentitiesestablishedlastyear—RelianceAerospaceTechnologiesandRelianceSecuritySolutions,createdlastyear.

INR55billion

IndianNavy IndiaissuedanRFPfor56navalhelicopterstoglobalaviationmajorssuchasBoeing,Bell,Sikorsky,Kamov,EurocopterandAgustaWestland.Thesehelicoptersareintendedforsurveillance,anti-submarinewarfare,anti-terror,electronicintelligencegatheringandsearchandrescueoperations.Thehelicoptersareplannedforinductionfrom2016onward.

INR55billion

IndianNavy Indiafloatedaglobaltendertoprocurearound60utilitychoppers.Theutilitychopperswillreplacethe60-oddChetaksthatthenavyhasinserviceandareoperatedbothfromshoreandonboarditswarships'flightdeck.Thenavyislookingtoprocuretwin-enginehelicoptersaspartofthistender.

INR50billion

PipavavDefenceandOffshoreEngineeringCo.Ltd.

PipavavDefenceandOffshoreEngineeringCo.Ltd.receivedanorderfromaWestAfricanclienttobuildtwooffshorepatrolvessels,markingitsfirstinternationalnavalcontract.ThecontractvalueislikelytogouptoINR25billioniftheclientexercisesanoptionfortwomoresimilarships.

INR12billion

CXPartners CXPartners,aprivateequityfirm,signedanagreementtoacquireuptoa26%stakeinSecurityandIntelligentServices(SIS),engagedinsecurityproductsandservices.TheinvestmentwillbemadebyacquiringtheminoritystakeofaUShedgefundDEShawaswellasbuyingnewsharesofthesecuritycompany.ThedealislikelytohelpSISraisefreshcapitalofINR2billiontofuelitsfuturegrowthplan.

INR5billion

New projects/investments/contracts

Eye on defense | 27

SAAB SAABwillinvestinPipavavDefenseandOffshoreEngineeringundera“technologypartnershipagreement.”TheinvestmentwillenablePipavavtoenhanceitsinfrastructurecapabilitytobuildandmaintainmilitaryhardwarefortheIndianArmyandexportmarkets.

INR2.1billion

RollsRoyce Rolls-RoycewonadealtodesignandpoweraUT755SbuoytendervesselbuiltforIndia.Underthecontract,thecompanywillsupplythevessel'smainengines,propulsionsystem,automationandcontrolsystem,deckmachineryandshaftgenerators.TheunitwillbebuiltatIndia'sCochinShipyardLtd.Upondeliveryin2015,thevesselwilloperatearoundtheAndamanandNicobarislands,performingmaintenanceandreplacementofnavigationalaidsandbuoys.

INR695million

Samtel SamtelAvionics&DefenceSystemsreceivedanordertomanufactureavionicsequipmentforHoneywell.TheequipmentisorisusedfortheaircraftintheUS.TheorderisincontinuationofthepreviouspurchaseorderthatSamtelhadreceivedfromHoneywellin2010.TheproductionofthisequipmentistobeginshortlyatSamtelAvionics'newproductionfacilityatGreaterNoida.

INR281million

Kerala ProfilesoftwoprojectsunderthecategoryAirport/InfrastructureandAerospace/HelicopterserviceswerefinalizedforEmergingKerala—AeronauticalMaterialTestingLaboratory(AMTL)atAthaniinThrissurdistrictandAerospaceParkatKadinamkulammeetcommencinginKochifromSeptember2012.BesidesattractingcompaniessuchasJaguar,Boeing/Airbus,theATMLwillalsobeabletotrainaeronauticalengineeringstudentsfrominstitutesinsideandoutsidethecountry.

NA

IndianAirForce BritishcompanyBAESystems,whichmanufacturesHawkAJTs,receivedarequestforproposal(RFP)fromHindustanAeronauticsLtd.(HAL)fora“potentialorder”tosupplyproductsfor20HawkAJTs.TheseaircraftwillbemanufacturedbyHALandsomeofthesewillbedeployedforthenewaerobaticsteamoftheIAF,expectedtobereconstitutedinaboutthreeyears.

NA

*ThevaluesofthedealshavebeenconvertedtoIndianRupeesusingOandacurrencyconversiontool

1US$=INR55.03and1GBP=INR86.92(AverageofthevaluefromJuly2012toSeptember2012)

Eye on defense | 28

Name of the entities Nature of transaction Value

BharatElectronicsLimited(BEL)andThales

• BELplanstoestablishajointventurecompanywithThalesAirSystems,FranceandThalesIndiaPvt.Ltd.inthefieldofmilitaryradars.Thecompanyexpectstogainmarket-shareinthecivil-sectorradarcapabilitywiththisventure.ItapprovedtheproposalduringitsboardmeetingandwillnowseekapprovaloftheMoDinthisregard.

• BELwillhold74%intheJVandwillinvestINR400–450million.

INR600million

PiramalEnterprisesandBlueBirdAeroSystems

• PiramalEnterprises(formerlyPiramalHealthcare)acquireda27.83%stakeinBluebirdAeroSystems,anIsrael-basedunmannedairsystemsmanufacturertoforayintothedefensesector.

• BluebirdhasanagreementwithBengaluru’sDynamaticTechnologiestomanufactureandmarketminiandmicrotactical,unmannedaerialvehiclesinIndiaandissettobidforcontractsinIndia.

INR385million

OrdnanceFactoryBoardandRosoboronexport,Russia,Sp

• OrdnanceFactoryBoardsignedaMemorandumofUnderstanding(MoU)foraJVwithM/sRosoboronexport,RussiaandM/sSplav“SPA”,RussiatomanufacturefiveversionsofSmerchRockets,basedonthetechnologyreceivedfromRussia.

• TheSmerchRocketshavearangeof70–80kmsandwillbearmedonthemultiple-launchrocketsystemsacquiredfromRussia.

NA

Mahindra&MahindraLtd.andTelephonics

• Mahindra&MahindraLtd.signedadefiniteagreementtoformajointventure(JV)withTelephonicsCorporation,whichwillbecalledMahindra-TelephonicsIntegratedSystems.

• TheJVwillprovidetheIndianMoDandthecommercialsectorwithradarandsurveillancesystems,identificationfriendorfoe(IFF)devices,andcommunicationsystems.Inaddition,theJVintendstoprovidesystemsforairtrafficmanagementservices,homelandsecurity,andotheremergingsurveillancerequirements.

• Theplantwillbeset-upinBengaluruandMahindra-TelephonicswilllicensetechnologyfromTelephonics.

NA

InfotechEnterprisesandInfotechAerospaceServices

• ITservicesfirm,InfotechEnterprisesplanstoacquirea74%controllinginterestinitsJV,InfotechAerospaceServices,inabidtowinmorebusinessfromnewaerospaceclients.

• Pratt&Whitney,aunitofUnitedTechnologiesCorporation(UTC),currentlyholdsa51%stakeinPuertoRico-basedInfotechAerospaceServices.Itwillnowholda26%stakeintheJV.

• TheJVworksonaerospaceengineeringandsoftwaredevelopmentformilitarycommercialandindustrialapplicationsandindicatesitsintentiontoscaleupaerospaceengineeringservices.

• TheJVwillhelpingettingbusinessfromaerospaceclientsotherthanUnitedTechnologies,sinceamajoritystakeinUnitedTechnologieswasconsideredahurdleingivingbusinesstoInfotechAerospaceServices.

NA

RossellIndiaLtd.andCAECanada

• RossellIndiahastiedupwithCanadianfirm,CAECanadatoprovidesimulationtrainingsolutionstotheIndiandefensemarket.CAECanadaprovidesmodeling,simulationandtrainingservicesforthecivilaviationanddefenseindustry.

• RossellIndiawillholda74%stakeinthepartnership,whileCAECanadawillholdtheremaining26%.

NA

CiscoPartnersandThales

• CiscoenteredapartnershipwithThalestoprovideequipment,systemssolutionsandservicesthatmeetthesecurityrequirementsfordefenseandsecurity,aerospaceandtransportationmarkets.

• CiscowillprovideThaleswithanextensiverangeofstandardnetworkingequipmentandinfrastructure,complementedbynetworkingdesignandengineeringexpertisefromCiscoServices.

NA

MahindraSatyam • ITservicesproviderMahindraSatyamisindiscussionstoacquireanaerospaceengineeringfirminEurope.Theproposedacquisitionispartofalargerplanbythecompanytoimproveitsofferingsinengineeringservices,healthcareandfinancialservicesverticals.

• AnaerospaceacquisitionwillalsohelpMahindra&Mahindratostrengthenitsfootholdinaeronautics.

NA

Mahindra&MahindraLtd.andHawkerBeechcraft

• Mahindra&MahindraLtd.,manufacturerofdefensetransportationsystemsanddefensesystems,isconsideringbiddingforHawkerBeechcraftInc.,thebankruptaircraftmanufacturerpartlyownedbyGoldmanSachsGroupInc.

• HawkerwillfitwellwithMahindra,sinceboththecompaniesmanufactureturbopropaircraft.

NA

DCNSandPipavav • France'sDCNSandIndia'sPipavavDefencehaveforgedastrategicalliancetobuildwarshipsandsubmarinesinIndia.

• DCNSisoneofthelikelybiddersoftheIndianNavy’sUS$12billionprogramtopurchasesixconventionalsubmarinesanditwantstoforgeatie-upwithPipavavaheadofthetender.

NA

Joint ventures and alliances

Eye on defense | 29

Country Nature of transaction Additional details

SaudiArabia ThefirstmeetingoftheIndia-SaudiArabiaJointCommitteeonDefenceCooperationwasheldinSeptember.The11-memberSaudidelegationwasheadedbyMajorGeneralSuleimanSalehAl-Khalifa,ChiefoftheArmedForcesOperationsofSaudiArabia.TheIndiandelegationwasheadedbytheJointSecretary,MoD.

Duringthemeeting,bothsidesexpressedinteresttofurtherenhancedefenseexchangesandinteractionsbetweentheirarmedforces.Discussionswereheldonproposalsforhigh-levelvisits,trainingexchangesandfunctionalexchangesinvariousareas.TheestablishmentoftheJointCommitteewasdecidedduringthemeetingoftheDefenseMinisterAKAntonywiththeSaudiDefenseMinisterduringtheIndiandefenseminister’svisittoSaudiArabiainFebruary.

China IndiaandChinatodayreachedconsensusonawiderangeofissuesrelatingtodefenseandmilitaryexchangesandcooperation.TheyalsoagreedtostrengthenbordersecuritycooperationbetweenthebordertroopsofthetwosidessoastoenhanceandmaintainpeaceandtranquilityintheIndo-Chinaborderareas.

BothsidesexchangedviewsonthesecuritysituationinSouthAsia,WestAsiaandtheAsia-Pacificregionandonvariousglobalsecuritychallengessuchascybersecurity.IndiaandChinaalsoagreedtoconductthenextroundofjointmilitaryexercisesattheearliest.TheyalsodecidedtostrengthencooperationbetweenthenavalforcesofbothsidesincounterpiracyoperationsintheGulfofAdenandoffthecoastofSomalia.DefenseMinister,AKAntony,isalsoinvitedtovisitChinain2013.

Russia RussiaistryingtoarrestthelossesintheIndiandefensemarket.Atonepointoftime,itwasoneofthebiggestarmssupplierstoIndia,butitisrapidlylosingmarketsharebecauseofoverpricingandothercommercialreasons.

RussianDeputyPrimeMinister,DmitryRogozin,duringhisvisittoNewDelhion17July2012,advocatedmovingfrombasictradetothejointdevelopmentofdefenseequipment,whichcouldbesoldtoothercountries.

Vietnam SeniorLieutenant-General,NguyenChiVinh,DeputyMinisterofNationalDefenceandIndianAmbassador,RanjitRae,heldameetinginHanoion11September.

Themeetingwasinpreparationforthe7thVietnam-IndiaStrategicDefenceDialogue,whichwillfocusonpromotingstrategiccooperationindefense,army-medicine,searchandrescueandpersonneltraining.ThearmiesofVietnamandIndiaannouncedclosecooperationinthefieldofdefenseindustry,informationtechnologyandpersonneltraining.

Maldives DefenseMinister,AKAntony,heldtalkswiththePresidentofMaldives,MohamedWaheedHassanManik,andtheDefenseMinisterCol(Retd)MohamedNazimonhisthree-dayvisittoMaldivestodiscussdefensecooperationbetweenthetwocountries.

ThetwodefenseministersexchangedtheagreementtostationtheIndianCoastGuardAdvancedLightHelicopterinMaldivesforaperiodofanothertwoyears.HealsolaidthefoundationstoneofMaritimeTrainingAcademyofMaldivestobebuiltwithIndia’sassistance,whichwilltrainpersonnelfromMaldivesCoastGuardandMarinePolice.

Country-level deals and initiatives

Eye on defense | 30

Industry buzz

India verifying counterfeit spare parts in US defense equipmentIndiaisattemptingtoverifywhethercounterfeitsparepartsmadeinChinawereusedindefenseequipmentbeingsoldbyUSfirmstoIndia.InMay,theUSSenateArmedServicesCommitteereleasedareportsayingthatcounterfeitelectronicpartsfromChinahavefoundtheirwayintocriticalUSmilitarysystems,includingspecialoperationshelicoptersandsurveillanceaircraft.SuspectedcounterfeitpartswerefoundonSH-60B,AH-64andCH-46helicopters,aswellastheC-17,C-130J,C-27JandP-8Afixed-wingaircraft.

(Source:JayMenon,“IndiaHuntsForCounterfeitPartsInU.S.DefenseProducts,”AerospaceDaily&DefenseReport,10August2012,viaFactiva,©2012McGraw-Hill,Inc.)

Government not to immediately raise FDI cap in defenseTheGovernmentofIndiahasdecidednottoimmediatelypushforraisingFDIcapindefenseproduction.Inadiscussionpaperreleasedmorethanayearago,theDepartmentofIndustrialPolicyandPromotion(DIPP)hadproposedthattheFDIcapindefensebeincreasedfrom26%to74%topromotelocalmanufacturinginsteadofdependingonimports.However,theMoDhasraisedconcernsonthegroundsthatdefenseisofstrategicinterest.

(Source:SidharthaandSurojitGupta,“GovtnotkeenonhigherFDIcapindefence,”TheTimesofIndia-HyderabadEdition,17September2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.)

RK Mathur to be the new Secretary, Department of Defense ProductionMr.RadhaKrishnaMathur,anIASofficerfromManipur-Tripura(MT)cadre,hasbeenappointedasSecretary,DepartmentofDefenseProduction(DDP),MinistryofDefense,inplaceofMr.ShekharAgarwal,whosetenureendedon30September.Mr.MathuriscurrentlySecretary,MinistryofMicro,SmallandMediumEnterprises.Furthermore,Ms.RashmiVerma,currently,JointSecretary,DepartmentofDefenseProductionhasbeenappointedasAdditionalSecretary,DepartmentofRevenueintheMinistry.

(Source:“RKMathurappointedDefenceProductionSecretary,”BureacracyToday,28September2012,viaFactiva)

RFP expected for Indian wargaming center ARFPforawargamingcenterfortheIndianAirForce(IAF)isexpectedinthelastquarterofthisyear.AccordingtotheRFIissuedlastyear,thecentershouldbecapableofsimulationsatstrategicandoperationallevelsincollaborationwithothersecurityagencies.ApartfromtakingintoaccounttheIAF’scurrentfleet,thecenterwillalsoallowfortheincorporationofsystems,whichareyettobeinducted.

(Source:JayMenon,“RFPExpectedForIndianWargamingCenter,”AerospaceDaily&DefenseReport,30July2012,viaFactiva,©2012McGraw-Hill,Inc.)

Eye on defense | 31

India successfully test-fires BrahMos cruise missileIndiatestfiredasupersoniccruisemissile,BrahMos,aspartofausertrialbythearmyfromatestrangeatChandipuroffthecoastofOrissa.Themissilehasaflightrangeofupto290kmandiscapableofcarryingaconventionalwarheadof300kg.

IndiahopestodevelopthenextversionofitsjointhypersoniccruisemissileprojectwithRussia,theBrahMosIIinthenextfiveyearsby2017.

(Source:“Indiatest-fires'BrahMos'cruisemissile,”TheFinancialDaily,30July2012,viaFactiva;JayMenon,“BrahMosIIMissileToBeReadyBy2017,”AerospaceDaily&DefenseReport,3August2012,viaFactiva,©2012McGraw-Hill,Inc.)

Nuclear capable Agni-II and Agni-III test-fired successfully and SFC gains capability to fire Agni-IThe2,000-kmrangesurface-to-surfaceAgni-IIballisticmissilewassuccessfullyflighttestedfromWheeler'sIslandintheBayofBengal,offthecoastofOdisha.Themissilehasbeengivenmaneuverablere-entry,whichmeansthatafterthemissileisfiredandre-enterstheatmosphere,itscanbenavigatedtohitthetarget.

Agni-IIIwasalsotest-firedforarangeof3,000kmoffthesameisland.Itiscapableofcarryingapayloadweighing1.5tonnesandisequippedwithanadvancedguidanceandnavigationsystemtoensureaccuracy.

Also,theStrategicForcesCommand(SFC)cannowindependentlyfirethe700-kmrangenuclearcapableAgni-1missilewithoutthehelpofDRDOscientists.

(Source:“NuclearcapableAgni-IItest-firedsuccessfully,”TheTimesofIndia,10August2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.;“Army'sStrategicForcesCommandcanfireAgni-Ionitsown,”TheTimesofIndia,16July2012,viaFactiva,©2012TheTimesofIndiaGroup)

Karnataka to formulate aerospace policy to woo investorsTheKarnatakaGovernmentisformulatinganaerospacepolicytoattractglobalinvestmentsandmakeBengaluruasamajoraerospacehubinSouth-Asia.Theaerospacepolicywillhelpfacilitateglobalaerospacemajorstosetuptheirfacilities.TheproposedaerospaceparkwillbesetupneartheinternationalairportatDevanahalli.BangalorehasemergedasamajorcenterforaerospaceindustrieswiththepresenceofHindustanAeronauticsLtd(HAL),NationalAerospaceLaboratories(NAL)andmanyaeronauticalresearchanddevelopment(R&D)organizations.

(Source:“Karnatakatohaveaerospacepolicytowooinvestments,”Sarkaritel,27August2012,viaFactiva.)

Embraer delivers first modified AEW&C aircraft to be fitted with DRDO systemsThefirstfullymodifiedaircraftforindigenousAirborneEarlyWarningandControlSystems(AEW&C)aircraftlandedinIndiaattheCentreforAirborneSystems(CABS),Bengaluru,aDRDOlaboratory.TheaircraftwillnowbeintegratedwithaDRDO-developedmissionsystem,whichwillbefollowedbydevelopmentflighttrialsinIndiabeginning2013.ItwillbenotedthatthisisthefirstaircraftdeliveredbyEmbraer,forwhichthecontractwassignedin2008.ThenextaircraftisexpectedtoarriveinDecember2012.

(Source:“EmbraerdeliversfirstmodifiedAEW&CaircrafttobefittedwithDRDOsystems,”Domain-B24August2012,viaFactiva,©2012TheInformationCompanyPvt.Ltd.)

Boeing completes major integration of India’s C-17 aircraftBoeingintegratedtheforward,centerandaftfuselagesandthewingassemblyofIndia'sfirstC-17GlobemasterIIIduringits"majorjoin"ceremony,inLongBeach,California.The"majorjoin"ceremonyentailsrivetingoftheaircraft'sfuselagewithotherpartssuchaswingsandthecargohull.Itisnowpreparingtotest-flythefirstoftheC-17aircraftbyJanuary2013.India'sMinistryofDefensesignedanagreementwiththeUSGovernmentonJune2011,toacquire10C-17aircraft.ThefirstaircraftisexpectedtoarrivebyJune2013.

(Source:“BoeingcompletesmajorintegrationofIndia'sfirstC-17airlifter,”SP'sAviation,1August2012,viaFactiva,©2012SPGuidePublicationsPvt.Ltd.;JayMenon,“FirstIndianC-17GetsReadyForTesting,”AerospaceDaily&DefenseReport,6August2012,viaFactiva,©2012McGraw-Hill,Inc)

HAL puts indigenous aircraft development activities on fast trackHALhasplacedthedevelopmentofitsindigenousaircraftonthefasttrack.ItstatedthecompletionofIntermediateJetTrainer(IJT),Sitara),completionoftheAirForceversionofthelightcombataircraft(LCA)toreplaceMiG-21s,completionoftheNavy’sversionofLCAtoreplaceSeaHarriers,completionofthelightutilityhelicopter(LUH)andthelightcombathelicopter(LCH)asitspriorities.Ithasclaimedtoputdedicatedteamsinplacetoworkontheprojects,componentprocurementprocessesandaugmenteditsinfrastructure.

(Source:“HALputsindigenousaircraftdevelopmentactivitiesonfasttrack,”IndiaPublicSectorNews,3September2012,viaFactiva,©2012Contify.com)

Helicopter tender for Indian Navy delayed TheIndianNavydelayeditstendertobuy16multi-rolehelicoptersbyanothersixmonthsevenasitplanstoissuearequestforproposaltoprocuremorethan75similaraircraft.Accordingtopressreports,twobiddershavebeenaskedtoextendthevalidityoftheirproposalsforsixmoremonths.NHIndustries(NHI)withitsNH-90andSikorskywithitsS-70havebidfortheprogram.Thisisthesecondtimeinthelastyearthatthedefenseministryhasaskedthecompaniestoextendthevalidityoftheirproposals.Theaircraftwillbeusedforanti-submarinewarfareandsurveillance.

(Source:JayMenon,“HelicopterTenderForIndianNavyDelayed,”AerospaceDaily&DefenseReport,7August2012,viaFactiva,©2012McGraw-Hill,Inc.)

Army to use UAVs on China borderDefenseminister,AKAntony,advocatedmorefrequentuseofUAVsneartheSino-IndianborderintheNorthEastandLadakhtoaugmentIndia’ssurveillanceandintelligencegatheringcapabilityduringhismeetingwithArmyChiefBikramSinghtodiscussthesecuritythreatsemanatingfromChina.

(Source:“AntonywantsArmytouseUAVsonChinaborder,”DeccanHerald,3July2012,viaFactiva,©2012ThePrinters(Mysore)PrivateLtd.)

Bharat Forge initiates trial creation of products for aerospace worldBharatForgeLimited(BFL),afullservicesupplierofforgedandmachined-engineandchassiscomponents,hasinitiatedatrialcreationofforgingsintitaniumandspecialtysteelsfortheaerospacesector.Thefirmhasestablishedasustainedpartnershipwithtitaniummanufacturerstocreaterawmaterialandtechnologyrequiredforforgings.Theidentification

processofproductsisbeingcarriedoutandthecompanywillinitiatetrialproductionforsomeaircraftmanufacturers

(Source:“BharatForgeinitiatestrialcreationofproductsforaerospaceworld,”IndiaAutomobileNews,3August2012,viaFactiva,©2012Contify.com)

Navy plans to buy two submarines off shelfMoDplanstoawardcontractsfortwoProject75Isubmarinestoaforeignshipyardbecauseofthedelayinconstruction.Byawardingthesecontracts,theMoDistryingtoavoidthedelayintheroll-outofthesesubmarines.Underafollow-onorderofProject75I,fourvesselswillbeconstructedinIndiabyMazagonDock(MDL)inMumbaiandHindustanShipyard(HSL)inVisakhapatnam.TheMoDissuedarequestforproposalsin2009toFrance'sArmaris,Russia'sRosoboronexportandGermany'sHDWforthenextgenerationofsubmarinestobeconstructedattheirshipyards.

(Source:“Hitbydelays,Navywantstobuy2subsoffshelf,”FinancialExpress,16August2012,viaFactiva,©2012IndianExpressOnlineMediaPvt.Ltd.)

Indian Coast Guard Hovercraft H-187 CommissionedViceAdmiral,MPMuralidharan,commissionedtheIndianCoastGuardHovercraftH-187,thefirstofaseriesoftwelveAirCushionVehicles(ACVs)designedandbuiltbyGriffonHoverworkLimited(GHL)UKatOkhainGujaraton11June.The21meterlongAirCushionVehicle(ACV)displaces31tonnesandcanachieveamaximumspeedof45knots.TheACViscapableofundertakingmultifarioustaskssuchassurveillance,interdiction,searchandrescueandrenderingassistancetosmallboats/craftindistressatsea.

(Source:“IndianCoastGuardHovercraftH-187Commissioned,”Force,31July2012,viaFactiva,©2012ArrowheadMediaPvt.Ltd.)

Scorpene submarine project takes-offTheMinisterofStateforDefence,MMPallamRaju,inauguratedthemanufacturingfacilityofSECindustriesdevelopedincollaborationwithDCNS.DNCSwilldeliversixScorpenesubmarinestotheIndianNavyandfourofthemwillbemanufacturedbytheMazagonDockLimitedundertransferoftechnology.SECwillbemanufacturing14criticalcomponentsforScorpene.ThefirstScorpeneisexpectedtobelaunchedbyend-2013andcommissionedin2015andthelastisexpectedtobecommissionedin2018.

(Source:“FacilityopenedtomakekeycomponentsforScorpenesub,”TheHindu,17July2012,viaFactiva,©2012Kasturi&SonsLtd)

Two coastal radar stations to be operational ThetworadarsinthenetworkinMumbaiandPorbanderwereinauguratedbytheDefenseMinister,AKAntony.TheyhavebeendevelopedbyBharatElectronicsandwereputonafasttrackafter26/11Mumbaiattacks.Inthefirstphase,achainof46radars(36onmainlandand10inislandterritories)willbeoperationalizedinclusters.Theradarnetworkinthemainlandisexpectedtobefullyfunctionalbymiddleofnextyearwhiletheradarsintheislandswilltakeafewmoremonths.Theseradarswillbeabletodetectbigvesselsplyingontheseaupto25nauticalmilesaswellasaircraft;however,detectingfishingboatsstillremainaproblem.

(Source:“TwocoastalradarstationstofunctionfromSaturday,”DeccanHerald,24August2012,viaFactiva,©2012ThePrinters(Mysore)PrivateLtd.)

Eye on defense | 33

1. ArunKumar,“CXPartnerstobuyupto26%inSecurityandIntelligentServicesforRs500crore,” The Economic Times,28August2012,viaFactiva,©2012TheTimesofIndiaGroup.

2. “SAABofSwedentoinvestinPipavavDefence,” Business Line (The Hindu),28August2012,viaFactiva,©2012TheHinduBusinessLine.

3. RajatPandit,“Indiasettoinkbiggestdefdeal,”The Times of India - Mumbai Edition,21August2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.

4. “Indiareadytobuy22AH-64DassaulthelicoptersfromUS”,ITAR-TASSWorldService,21August2012,viaFactiva,©2012ITAR-TASS

5. “SamtelReceives$5.1MillionOrderFromHoneywellForAvionicsEquipment,”EFYtimes.com,21August2012,viaFaciva,©2012EFYEnterprisesPvt.Ltd.

6. P.Manoj,“PipavavDefencewinsglobalnavaldeal,”HNMINT,7August2012,viaFactiva,©2012.HTMediaLimited.

7. “RelianceIndustriesearmarksaninvestmentworth$1billioninnewaerospacedivision,”Accord Fintech,3August2012,viaFactiva.

8. BobyKurian&SwatiBharadwajChand,“InfotecheyescontrolofJVwithPratt&Whitney,”The Times of India - Chennai Edition,14August2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.

9. “DefenceministryclearsRs12,000croreprojecttoacquire56transportaircraftforIAF,”The Times of India,25July2012,viaFactiva,©2012TheTimesofIndiaGroup

10. RituSharma,“DefenceMinistryNodforTransportAircraftJointVenture,”New Indian Express,23July2012,viaFactiva,©2012TheNewIndianExpressGroup.

11. “NewDelhigetssetforHS748successorduelIndiasetsstagefor$2.4bntransportcontest,” Flight International,31July2012,viaFactiva,©2012.ReedBusinessInformationLimited.

12. S.AnilRadhakrishnan,“Twoaerospaceprojectslisted,” The Hindu,5September2012,viaFactiva,©2012Kasturi&SonsLtd

13. “IAFsettobuy20HawkAJTsforaerobatics,” The Asian Age,15September2012,viaFactiva,©2012.DeccanChronicleHoldingsLtd.

14. “Navyfloats$900mntenderforutilitychoppers,”Indo-AsianNewsService,10August2012,viaFactiva.

15. AmritaNair-Ghaswalla,“PiramalEnterprisespicksup27%stakeinBluebirdAeroSystems,”Business Line (The Hindu),17August2012,viaFactiva,©2012TheHinduBusinessLine.

16. “MahindraandTelephonicsjointventureagreement,”SP'sMAI,16August2012,viaFactiva,©2012SPGuidePublicationsPvt.Ltd.

Sources for new projects/investments/contracts, joint ventures and alliances and country-level deals and initiatives

Eye on defense | 34

17. “MazagonDocksignsJVstocompletehugeorderbook,”ProjectMonitor,30July2012,viaFactiva,©2012EconomicResearchIndiaPvt.Ltd.

18. “RossellIndiatiesupwithCanadianfirmindefencesector,”PressTrustofIndia,10August2012,viaFactiva.

19. “CiscopartnerswithThalestoaddressglobaldefenseandsecuritymarket,”TelecomTiger,30July2012,viaFactiva,©ATDataProcessPvt.Ltd.

20. DeepikaAmirapu,“MahindraSatyamintalkstobuyaerospaceengineeringcompanyinEurope,”The Times of India,13July2012,viaFactiva,©2012TheTimesofIndiaGroup.

21. “BELplanningjointventurecompanywithFrenchmajorThales,”PressTrustofIndia,5July2012,viaFactiva.

22. MadhumathiD.S.,“BELbetsbigonradarventurewithFrenchfirmThales,”Business Line (The Hindu),13August2012,viaFactiva,©2012TheHinduBusinessLine.

23. “MahindraeyesHawkerBeechcraft,”EdmontonJournal,5July2012,viaFactiva.

24. “DCNSseeksIndianpartnersforScorpeneproject,”The Hindu,17July2012,viaFactiva,©2012Kasturi&SonsLtd.

25. ManuBalachandran&KausikDatta,“L&T,PipavavInkTwoSeparateDefenceJVswithMazagonDock,” The Economic Times - Mumbai Edition,23July2012,viaFactiva,©2012.Bennett,Coleman&Co.,Ltd.

26. “MoUforaJointVentureforIndigenousProductionofSmerchRocketswithRussia,”PressBureauofIndiawebsite,28August2012,http://www.pib.nic.in/newsite/AdvSearch.aspx,accessed25September2012.

27. “FirstMeetingofIndia-SaudiArabiaJointCommitteeonDefenceCo-Operation,”10September2012,PressBureauofIndiawebsite,http://www.pib.nic.in/newsite/AdvSearch.aspx,accessed25September2012.

28. “India,RussiainkMoUforlong-rangeSmerchrockets,”29August2012,The Times of India-HyderabadEdition,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.

29. RituSharma,“IAFChieftoVisitRussiaNextWeek,”New Indian Express,5August2012,viaFactiva,©2012TheNewIndianExpressGroup

30. “Vietnam:Vietnam,Indiastrengthendefencecooperation,”ThaiNewsService,12September2012,viaFactiva.

31. RajatPandit,“Navytobuy56utilityhelicoptersfor$1billion,”The Economic Times,12August2012,viaFactiva,©2012TheTimesofIndiaGroup.

32. Shubhashish,“MazagonDockmaysplitorderamong4,”Business Standard,4July2012,viaFactiva.

33. VivekRaghuvanshi,“DCNS,PipavavDefencePartnerforWorkinIndia,”DefenseNews,2July2012,viaFactiva,©2012ArmyTimesPublishing.

34. “Rolls-Roycetodesign,powerbuoytendervesselforIndiaforGBP8m,”SeeNewsShipping,22August2012,viaFactiva.

Eye on defense | 35

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