Bharat Rakshak

If anyone is interested in interpreting numbers,
1. Budget documents for MoD are here.
2. Capital outlay details

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One very interesting statistic - MoD actually overspent its budget last year. As opposed to budget of 164,400 cr, MoD spend 170,930 crore even though capital spending was lower by 3000 crore. Revenue expenditure overshot by 9000 crores.

Stockholm: India is the world's largest recipient of arms while South Korea is second and Pakistan and China are tied in third place, says the Stockholm International Peace Research Institute (SIPRI) in a study on international arms transfers.

The volume of worldwide arms transfers in 2007-11 was 24 per cent higher than in 2002-06 and the five largest arms importers in 2007-11 were all Asian states, said a press communique.

The data revealed that Asia and Oceania accounted for a whopping 44 per cent of global arms imports, followed by Europe 19 per cent, the Middle East 17 per cent, and the Americas 11 per cent. Africa was the lowest with 9 per cent.

India was the world's largest recipient of arms, accounting for 10 per cent of global arms imports.

The other large recipients of arms in 2007-11 were South Korea (6 per cent of arms transfers), Pakistan (5 per cent), China (5 per cent) and Singapore (4 per cent).

"Major Asian importing states are seeking to develop their own arms industries and decrease their reliance on external sources of supply," Pieter Wezeman, senior researcher with the SIPRI Arms Transfers Programme, was quoted as saying.

"A large share of arms deliveries is due to licensed production."

India's neighbour China was the largest recipient of arms exports in 2002-06, but it fell to fourth place in 2007-11.

Between 2002-06 and 2007-11, the volume of Chinese arms exports increased by 95 per cent and now China ranks as the sixth largest supplier of arms in the world.

"While the volume of China's arms exports is increasing, this is largely a result of Pakistan importing more arms from China," said Paul Holtom, director of the SIPRI Arms Transfers Programme.

"China has not yet achieved a major breakthrough in any other significant market."

The study said that major suppliers continued to deliver weapons to countries affected by the events of the Arab Spring.

Despite a review in 2011 of its arms transfer policies towards the region, the US remains a major supplier to both Tunisia and Egypt. In 2011, the US delivered 45 M-1A1 tanks to Egypt and agreed to deliver 125 more, the communique said.

"The transfer of arms to states affected by the Arab Spring has provoked public and parliamentary debate in a number of supplier states. However, the impact of these debates on states' arms export policies has, up to now, been limited," said Mark Bromley, senior researcher with the SIPRI Arms Transfers Programme.

The think-tank also noted that in 2011 Saudi Arabia placed an order with the US for 154 F-15SA combat aircraft, which was not only the most significant order placed by any state in 2011 but also the largest arms deal for at least two decades.

Stinging rebuke Corruption drives India’s spending on foreign arms | Global Times

Note:- He placed lot of emphasis that tech (not guns) should be imported. 25 year plan for artillery modernization approved.

New Delhi, April 2: The government today gave belated approval to a 15-year weapons purchase plan a week after army chief Gen. V.K. Singh’s letter to the Prime Minister detailing critical shortages in weapons and ammunition was leaked.

At its core, the plan will translate into a huge shopping list that global military companies will study before bidding for contracts worth billions of dollars.
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Cross post as a very important interview

Indian 155 gun (39 caliber?) is ready and has already fired 450 rounds. Army is satisfied. Next version of 45/52 caliber will be made by DRDO+OFB combine. For other technology (ULH??) tech will be imported (guns will be made in India) and tech will be absorbed with help of Pvt sector. Note:- He placed lot of emphasis that tech (not guns) should be imported. 25 year plan for artillery modernization approved.


Must watch after 13 min, it seems VKS reading BRF, note his comments at min 17.30 min to 18.30 super, If you are BRF must watch

Good news. Just a repeat of British history

The defence offsets policy stipulates that contracts over Rs. 300 crore must have a minimum offset of 30 per cent and be fulfilled along with the main contract. As per the policy, the winner of the bid or vendor has to source a third of the goods and services from domestic suppliers.

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Sending a strong signal to foreign arms suppliers often accused of adopting short cuts to bag lucrative military contracts, the Ministry of Defence (MoD) for the first time has invoked “integrity pact” to recover Rs 244 crore from Israel Military Industries (IMI) before blacklisting the company on corruption charges.

In 2007, the IMI emerged as the supplier of technology to produce bi modular charge system – a propellent required for ammunition – in India’s latest ordnance factory that was to come up at Nalanda at a cost of Rs 2,160 crore.

But, with allegations of corruption flying thick, the MoD on March 5 blacklisted IMI along with five other military firms.

Before blacklisting, the ministry invoked integrity pact to recover Rs 244 crore, clearly conveying to the arms lobby that “breach of contract terms” would not be tolerated, said an official. Almost six years ago, the defence ministry introduced integrity pact as an integral part of all defence deals worth Rs 100 crore and offset contracts worth more than Rs 300 crore. The aim was to remove any scope for foul play in high worth arms deals.

After reviewing the performance of ordnance factory board, Defence Minister A K Antony on Monday decided to pump in Rs 15,764 crore in the OFB over the next five years to upgrade its manufacturing and production capability.

Significantly, high investment in the OFB in the 12th Plan signals the government’s definitive shift towards self-reliance and gradually reducing dependence on foreign arms supplies.

Some of the major OFB projects approved include a Rs 971-crore scheme to augment production capacity of T-90 tanks from the present 100 tanks to 140 tanks at Heavy Vehicles Factory at Avadi, Tamil Nadu; a Rs 378-crore project to produce large calibre artillery guns and a Rs 378-crore plan to manufacture spares for T-72 and T-90 tanks.

With no artillery purchase since the Bofors contract, the OFB claims to have developed long range artillery guns based on the original technology transfer agreement from Bofors.

The home-made guns are under trials and OFB plans to make 300 of them by 2015, sources said.

For the ammunition propellant, the defence ministry planned to set up a new ordnance factory at Nalanda as the proposal was in limbo for the last 11 years after the ministry blacklisted two foreign firms which were to transfer the crucial technology.

New outfit

The Nalanda ordnance factory was likely to become operational this year, an official said, adding that the pilot batch of bimodular charge systems had been assembled at ordnance factory in association with Defence research and development organisation and would be offered to Army for trials shortly.

The plant for bulk production will be set up by OFB using indigenous resources at half the cost proposed by foreign companies. The defence ministry relied on two foreign suppliers for the technology – South African firm Denel, whose subsidiary Somchem was to provide the technology, and subsequently IMI. But it blacklisted both following corruption charges.

Delhi,Defence/Security, Tue, 17 Apr 2012 IANS

New Delhi, April 17 (IANS) Stung by Indian Army chief Gen. V.K. Singh's letter to Prime Minister Manmohan Singh over gaps in defence preparedness, the government Tuesday decided to fast-track army acquisition and projects and as a first step, empowered the army to buy equipment for special forces commandos.


The army will buy the specialist equipment on its own, as it at present does with regard to equipment for troops posted in Siachen Glacier, the world's highest and toughest battlefield.




This decision was taken at a two-hour meeting to review army's procurements and infrastructure development plans chaired by Defence Minister A.K. Antony here, attended by Gen. Singh and other senior officers from the force, defence ministry officials said here.




Antony also asked his ministry officials to immediately refer to the planning commission, the army's demand for laying of 14 strategically important railway lines to enable troop mobilisation close to the Indian borders with China in the northeast.




With regard to the road and infrastructure development in the northern borders with China and Pakistan, the defence minister also set up an empowered committee under Defence Secretary Shashi Kant Sharma that will look at speeding up these projects in Jammu and Kashmir and Himachal Pradesh, officials said.




'The army has been given authority to buy equipment for special forces and an empowered committee has been set up under army vice chief, Lt. Gen. Shri Krishna Singh,' they said.




The army chief had flagged deficiencies in the the special forces equipment too in his letter to the prime minister of gaps in defence preparedness.




On army's demand for helicopter gunships, the review meeting decided to refer it to a joint committee of the army and the air force, which will submit a report after studying current practices being followed by modern armies.




At present, the Indian Air Force operates two squadrons of attack helicopters under the operational control of the army's Strike Corps.




But the army wants its own squadrons of attack helicopters in it aviation wing so that each of its corps could operate one unit that provide close air support to the troops and armoured vehicles during battle.




Tuesday's review was the third since Feb 28 and the second since Gen. Singh's letter to the prime minister.




The meeting also noted that the decks have been cleared for one more squadron of the BrahMos supersonic cruise missiles for the army, which already operates two squadrons.




The army's plans to get additional Pinaka multi-barrel rockets too has been fast-tracked with price negotiations with the vendors completed recently.




The defence ministry, at the meeting, also recorded the fact that an army proposal for additional manpower for its Military Engineering Services, which handles civil constructions and projects for the services, has been sent to the finance ministry for approval.




Another demand for eight mule companies to assist in border road projects too has been sanctioned, officials added.

The new steps significantly include seeking the Planning Commission's sanction for 14 strategic railway lines, mostly along the western and eastern fronts, for "quick troop mobilization and logistics sustenance'' in times of conflict, sources said.

An empowered committee has also been constituted under defence secretary Shashikant Sharma to examine the "detailed project reports'' of the Army's proposed "capability development plan on the Northern Borders'', worth Rs 26,155 crore that is slated for completion by 2020-2021. There is already an ongoing Rs 9,243 crore project for "infrastructure development in the Eastern Theatre'' by 2016-2017.

All this is critical since China can now move around 30 divisions (each with over 15,000 soldiers) to the borders within 30 days to outnumber Indian forces by at least 3:1 after undertaking massive infrastructure development all along the 4,057-km Line of Actual Control. Beijing, in fact, has recently taken to holding regular air and land combat exercises in the high-altitude Qinghai-Tibet Plateau to flex its military might............

FAST TRACK MEASURES

14 Strategic Railway Lines:

Eastern: Murkongseld-Pasighat-Rupai, Misamari-Tawang, North Lakimpur-Along-Silapathar.

Western: Patti-Ferozpur.

Southern: Jodhpur-Shergarh-Phalsund, Jodhpur-Jaisalmer.

Central: Rishikesh-Karanprayag-Chamoli, Dehradun-Uttarkashi, Tanakpur-Jauljibi, Tanakpur-Bageshwar

Northern: Jammu-Akhnoor-Poonch, Pathankot-Leh, Srinagar-Kargil-Leh

South-Western: Anupgarh-Chhattisgarh-Motigarh-BKN.

Committees:

Empowered committee headed by defence secretary to monitor "capability development plan on the Northern Borders'' worth Rs 26,155 crore, slated for completion by 2020-2021.

Empowered committee headed by Army vice-chief to fast-track equipment for Special Forces. These include advanced assault rifles, carbines, all-terrain multi-utility vehicles, GPS navigation systems, modular acquisition devices, laser range-finders, underwater vehicles, combat free-fall parachutes and the like.

Committee to examine Army's case for attack helicopters and other "combat aviation assets''. Army Aviation Corps wants a mix of reconnaissance, utility, tactical battle-support, armed and attack helicopters as well as tactical airlift fixed-wing aircraft in the long term.



Acquisitions:

4th regiment of BrahMos supersonic cruise missiles for Rs 4,100 crore.

Two regiments of Pinaka multi-barrel rocket launchers for Rs 2,136 crore.

10,000 Konkurs-M anti-tank guided missiles for Rs 1,223 crore from Russia.

10,000 3UBK-Invar missiles for T-90S tanks for Rs 1,386 crore from Russia.

15,000 3UBK-Invar missiles for T-90S tanks for Rs 2,079 crore from Bharat Dynamics.

66,000 "armour-piercing fin-stabilized discarding sabot'' tank shells for Rs 1,386 crore.

Two troops of Heron UAVs (unmanned aerial vehicles) for Rs 1,200 crore from Israel.

145 M-777 ultra-light howitzers for $ 647 million from US.

A contract for 66,000 rounds of ammunition for 84mm rocket launchers also was signed in March 2011 with Swedish firm Saab, the official says.

BANGALORE: In one of the largest defence offset contracts awarded to a mid-tier Indian firm Astra Microwave Products Ltd has bagged Rs 310 crore deal from one of its overseas customers.

The Hyderabad-based microwave and radar component maker will supply critical radar sub-systems to the vendor which is participating in one of India's defence radar programme.

The order will significantly add to the Astra's revenues. As per an industry source, the company was expected to touch revenues of Rs 200 crore this year.

"This is the first time, we have bagged such a huge contract. It will significantly increase our topline," said Astra Microwave managing director B Malla Reddy.

He declined to name the overseas customer and give details of the Indian radar programme, as the company has signed a non-disclosure agreement.

As per the company website Astra Microwave counts European Aeronautic Defence and Space Company, Israel Aerospace Industries, Elettronica, Italy's SIAE Microelettronica among its top foreign customers.

According to industry sources, Astra will be making sub-systems for active phased array multifunction radar (Apar) which provides the capabilities required for the air defence and modern anti-ship missile threats.

Apar is capable of performing various tasks simultaneously such as automatic detection and tracking of low altitude targets like seaskimmers (anti-ship missiles) and air targets. It also provides support and guidance of a very wide range of missiles.

"This order shows that foreign vendors have faith in our small and medium enterprises. Such contracts will boost the confidence of the ecosystem," said Rajiv Chib, associate director, aerospace and defence practice at consulting firm, PricewaterhouseCoopers.

India's defence authorities plan to spend Rs 75,000 crore over the next decade to procure new radar systems in a bid to modernise the armed forces with more sophisticated weapon systems, according to PricewaterhouseCoopers.

Industry sources said global players such as Israel's Elta Systems, European EADS, Sweden's Saab and the US' Raytheon and Northrop Grumman are among the companies exploring to bid for these contracts.

Besides Astra Microwave, other small and medium enterprises such as Alligator Designs, Mistral Solutions, CMC, Chaturvedi Tools, SM Creative, Data Patterns are also making key components for different Indian radar programmes.

India alone will spend $100 billion on defence modernisation programmes by 2022, according to consulting firm Frost & Sullivan, throwing opportunities for small and medium firms in the form of offsets.

An offset agreement is a stipulation made between a foreign supplier and a company, which requires the supplier to purchase a certain amount of goods from that country in exchange for a contract.

Including the new order Astra Microwave will now be executing orders worth approximately Rs 730 crore outsourced by its foreign and domestic customers -- Defence Research and Development Organisation and Indian Space Research Organization.

The firm is backed by Strategic Ventures Fund, a private equity fund managed by Frontline Strategy Limited.

(Reuters) - U.S. companies are poised to sign defense deals totaling $8 billion with India, U.S. Ambassador Nancy Powell said on Friday at her first public speech since arriving in New Delhi this month.

Powell did not specify which companies she was talking about or when the deals would be signed, but embassy officials said she was referring to negotiations that include about a dozen Apache helicopters along with engines for Indian jets.

"We are poised to sign an additional $8 billion in direct commercial and foreign military sales," Powell said. "As we share more common equipment, our bilateral defense ties will become stronger."

...

U.S. companies including Boeing Co, Lockheed Martin Corp and Raytheon Co are some of the contractors looking to grab a share of India's planned military spending.

Industrial conglomerate Honeywell International Inc. is offering engines for the Indian Airforce's Jaguar fighter aircraft.

Powell said improving bilateral trade and investment was her main objective as ambassador, mentioning U.S. concerns about tariff and non-tariff barriers and a new retroactive tax law as obstacles in the relationship.

How about Chinooks and follow-on orders of C-17 and P-8I?

Press Information Bureau
Government of India
Ministry of Defence
02-May-2012 14:15 IST

Delay in Trainer Aircraft Deal

The proposal for procurement of Basic Trainer Aircraft for the Indian Air Force (IAF) is awaiting consideration of the Cabinet Committee on Security (CCS). The proposal regarding the selection procedure of the Pilatus Trainer Aircraft has been progressed in accordance with the Defence Procurement Procedure. A representation submitted by M/s Korea Aerospace Industries (KAI), one of the bidders, has been found to be devoid of merit.

The Defence Procurement Procedure prescribes an indicative timeline for progressing procurement cases. All effort is made to adhere to these timelines. This information was given by Minister of Defence Shri AK Antony in a written reply to Shri PiyushGoyal in Rajya Sabha today.

PK/NN

PIB