Military Acquisitions, Partnerships & Developments

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kit
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Re: Military Acquisitions, Partnerships & Developments

Postby kit » 11 Feb 2020 07:18

Thakur_B wrote:
Nikhil T wrote:This is for the innermost ring of AD protection for New Delhi. Very interesting that they chose to include 32 M4 rifles with it :)


It's like topping off vegetable shopping with coriander and chillies :rotfl:



Wasn't there a report that such adhoc purchases never added anything substantial to national security ?

Cybaru
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Re: Military Acquisitions, Partnerships & Developments

Postby Cybaru » 11 Feb 2020 07:25

:(( What a $hit show... I hope it doesn't get past the MOD babus chai biscoot sessions. Doesn't there have to be summer/winter/Noclear-winter trials for this? Effin Arjun has to go through all this...

Karan M
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Re: Military Acquisitions, Partnerships & Developments

Postby Karan M » 11 Feb 2020 08:08

This is a very very interesting read on how methodically the Modi led GOI has gone after select purchases and what they expect of the CDS.
Its a very sensible approach, despite what appears to be the occasional political purchase.

https://www.news18.com/news/india/retir ... 91951.html

Retirement Age of Jawans, Defence Budget & Politics: CDS Bipin Rawat Tackles Key Issues in Exclusive Interview

Basically, govt expects CDS to be a serious post with real responsibilities, not a figurehead

You are one month into your new job as Chief of Defence Staff (CDS). What is the one big challenge you are facing? What is that one challenge you did not anticipate?
What I did not anticipate is the pace at which we will have to move forward. I think the government is very concerned that things must move on fast track. I am sure the government presumed that if defence services were asking for a CDS they would have done their basic homework. Therefore, all that the CDS would have to do is move on in what has been done already. But that is not the case, so we have had to start afresh and look at what lies ahead.

We are working on a 90-day or 100-day time frame and thereafter, in the first, second and third year, will identify the areas where we will bring about jointness – in operations, trainings, logistics and transportation. I think the timeline has been set very well and this is the biggest challenge.


Secrecy is paramount, to avoid undue influence or pressure. We've seen this before in other key decisions.

When the post of CDS was announced by the PM everyone said General Rawat would get the appointment. Where you as confident?

I had planned life post retirement. In February, I was to go to the US to meet my sister. I had bought an open ticket in October, now I have lost money on that. I thought since the government has taken so much time in announcing a name for CDS , maybe they want to wait for 6 months, let the implementation committee streamline the mandate and then announce a name. . I have always said I was prepared for retirement after commanding my regiment. That was my ambition. God has been kind…imandaari se kaam kiya to gaadi chalti rahi..

When did you get to know?

On 31st December, the day i was to retire, I saw the news on the TV ticker. But the official call came from the Raksha Mantri.


Forget about 110 MRCA - its unworkable. Expect a second batch of Rafales, and more focus on LCA etc.

We should not look at budget in monetary terms. We need to look at the budget in the management of the finances that are made available to us. I think we need to look at how the modernisation process of the Indian military has to move forward. It cannot happen overnight. If the government was to give you, let us say, two hundred thousand crore rupees today and said, ‘Okay, let us modernise in the next two years’, can we do it? It is not possible because things that we need for modernisation are not available in the open market. It’s not like going and buying bananas and oranges…you’re buying defence equipment. Even the most developed countries which produce these equipment don’t have the numbers that we look forward to introducing in our inventory.

There will be timelines over which you will be buying these things. I think the most important thing is see what you have in the budget, see what your priorities are and make sure that the three services move concurrently with modernisation. It is not lopsided modernisation, that is, one service going ahead leaving the other two services behind. Therefore, if you are going to have all the three services moving forward, the next issue I would like to highlight is, whenever you are procuring equipment, you must always stagger the purchase of all your equipment

For example, if you buy all the tanks that you require in the Indian Army, if you say, ‘I want to get a modern tank or a Future Ready Combat Vehicle (FRCV), and if you buy them over the three years, it will reach obsolescence in the next 15 to 20 years…30 years from now at the same time. The overhaul that will be due will all come at the same time. So I think you have to look at staggered purchases to ensure that the downtime of your equipment is not altogether down in one go.


So basically, the sequential focus on:

1. Ammo + Spares
2. Infantry (BPJ, Guns)
3. Arty
4. AD (Akash, S-400)

was all planned methodically. And now the focus is also on ammunition, hence the private sector.

So this issue of how to manage the budget…yes, budget can be managed. But we need to prioritise. In the last two to three years, we prioritised on purchase of equipment that we needed for infantry, we looked at artillery systems because artillery systems after Bofors had not been procured. And we said, ‘okay, this is high priority’. We looked at some of the obsolescence that had reached in the air defence systems…so we prioritised that.

When we started prioritising, we said, ‘okay, we’ve got the equipment and weapons, but where is the ammunition?’ What use is the weapon system, with the manpower available, if you don’t have the ammunition? So we decided to prioritise the procurement of ammunition.


This is big - the service chiefs state they are ready today

I am happy when I hear from the service chiefs, ‘we are ready today’. What does it mean? They are ready today because they have something in the arsenal in stock. But when we prioritised, we started buying these weapon systems, we started buying the ammunition… something would have to take a hit. So what did we do? We made sure we went slow on our married accommodation project and construction of infrastructure…I’m not saying roads, I’m talking about headquarter buildings and accommodations for various other institutes and establishments.


Rationalizing penny packet land parcels and getting state govts/central to pay back in infra - basically moving infra spend off the Armed forces budget

We went slow on these. We have not done anything of these kind in the last two to three years. But can we continue with that over the years? Therefore, we are working with the government to say, can we, for the married accommodation project and for the infra development, find funds from other means? Let me tell you, the Ministry of Defence has helped us in this regard. We are now going to adopt the New Moti Bagh model for building married accommodation houses and for the infrastructure development that we need the money for. Our aim is to get around Rs 35,000 crore over the next eight to 10 years to meet the requirements of our map and infra-development. That is how we are going about it. It is not from the defence money. WE MAY MONETIZE SOME PART OF DEFENSE LAND. Some of the land that is required for national construction effort, like National Highways Authority of India (NHAI) wants something or the state government want some land for development projects…we have that land available. We can give that land to those people, and instead of and that, we go in for infrastructure. That will help us with that problem.

Are you proposing to sell the defence land and downsize cantonments?

We are not selling defence land. For example, the Bharatmala roads (a central government scheme to build highways) are coming up, national highways are being developed. A very large number of these national highways go past our military stations, cantonments or defence land. When we give this land away, say instead of giving us money, which may or may not come to us, it is better you give us infrastructure in lieu.

We also find that a large number of our cantonments are in isolated pockets. We’ve got small pockets of land which have been given to us in various places. We do not need this land. For example, in Nagpur where we are now stationed, there are small pockets of land…half acre here, one acre there…we don’t need that land. This land is certainly going to be given away to the state government if it wants and take infrastructure in lieu.

What does ‘taking infrastructure in lieu’ mean in this context?

We ask state governments to evaluate the cost of land that we want. Once we know the cost of the land, we tell them, one house for a jawan costs us Rs 20 to 22 lakh and we need these many houses, so you build them for us…


... Read the rest.

Ankit Desai
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Re: Military Acquisitions, Partnerships & Developments

Postby Ankit Desai » 11 Feb 2020 10:55

Process for procuring Indian anti-tank guided missiles begins

NEW DELHI: Seeking to cut down the import bill, the army has kicked started a process to order new anti-tank guided missiles (ATGM) from the Indian industry, preferring the domestic route for over 2,000 missiles, a number that could grow exponentially given its requirements.

The third generation ATGM project, which will replace thousands of Milan and Konours missiles that are currently in service, is being looked at keenly by the private sector, with some companies in advanced stages of prototype development.

The army has asked Indian companies – both private and public sector players like Bharat Dynamics Limited – to submit their `expression of interest’ in the program, which will be followed by the tendering process, trials and evaluations and commercial negotiations.

Spelling out its requirements, the army has said that the present anti tank capabilities have been in service for more than three decades and there is a need to catch up with other armed forces across the world that have third generation missiles.

“These systems have better accuracy, enhanced lethality, a higher kill probability, day and night operation capability and ensure better survivability for the operating crew,” an army document on the requirement says, inviting Indian vendors to develop a prototype to offer for testing.

While there are a handful of Indian companies that claim to have the technology, the army is open to them having a foreign collaborator as long as there is a minimum of 40% indigenous content (IC) as the contract will be processed under the Indigenous Designed and Manufactured (IDDM) category.

The army has promised the industry an assured order of 101 launchers and 2330 missiles if the trials are successful but the potential orders in the coming decade could be ten times this number. For example, just last year the army cleared the purchase of 5,000 of the older generation Milan 2T missiles to replenish stocks.

To meet immediate needs, the army has placed an emergency order for third generation missiles on Israel’s Rafael. The order is for 210 missiles and a dozen launchers and is being processed on the fast track basis.

Indian companies like the Kalyani Group and VEM Technologies have already initiated work on the systems, with others like Solar Industries also in the reckoning. Not to be left behind, the state owned BDL, which has manufactured the Milan series of missiles in India, too is ready with an offering. BDL launched its ‘Amogha III’ ATGM at the just concluded DefExpo in Lucknow.


-Ankit

abhik
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Re: Military Acquisitions, Partnerships & Developments

Postby abhik » 11 Feb 2020 19:18

^^^
This would have been a perfect use case for Make-1, too bad they killed it. We need a formalize a process by which the government pays for private sector and PSU R&D.

nam
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Re: Military Acquisitions, Partnerships & Developments

Postby nam » 11 Feb 2020 19:48

The army has asked Indian companies – both private and public sector players like Bharat Dynamics Limited – to submit their `expression of interest’ in the program, which will be followed by the tendering process, trials and evaluations and commercial negotiations


I don't understand why MoD waste people's time by including private players.

Has it ever happened that a order went to a private player, when DPSU was also one of the competitor in the tendering process?

BDL recently tied up with Javelin. I am sure they can offer Javelin at zero cost to IA. After all it is MoD who pays BDL's bill.

Kartik
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Re: Military Acquisitions, Partnerships & Developments

Postby Kartik » 13 Feb 2020 03:43

HAL seeks to export Su-30MKI and MiG-29 engine spares to friendly countries

India’s state-owned Hindustan Aeronautics Limited (HAL) plans to export assorted spares and accessories for the engines that power the Indian Air Force’s Sukhoi Su-30MKI and Mikoyan MiG-29 combat aircraft to foreign air forces that also operate the two Russian-developed fighter types.

A memorandum of understanding (MoU) signed by HAL on 7 February with Russia’s defence export agency Rosoboronexport envisages the export of Saturn AL-31FP and Klimov RD-33 engine components and services to “friendly countries”.

“The parties will subsequently sign an agreement on mutually agreed terms and conditions,” the MoU states, without elaborating further.

HAL officials told Jane’s that possible customers for AL-31FP-related spares include Algeria, Angola, Armenia, Indonesia, Kazakhstan, Malaysia, and Vietnam, while those for RD-33-related parts comprise Algeria, Bangladesh, Kazakhstan, Malaysia, Mongolia, Myanmar, and Serbia.

Vips
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Re: Military Acquisitions, Partnerships & Developments

Postby Vips » 22 Mar 2020 06:08

Armed Forces may get to lease platforms, equipment soon.

The armed forces will soon be allowed to take a variety of equipment on lease, cutting down acquisition time as well as costs as the defence ministry is revising its procurement rules to bring in some much needed changes.

The draft Defence Procurement Policy, released by Defence Minister Rajnath Singh, has special incentives for Indian designed and developed products, promotes the use of offsets for exports and has introduced a new category that will encourage foreign vendors to set up manufacturing facilities in India.

A significant change has been the provision to lease equipment like transport aircraft,trainers and simulators that do not have a direct combat role. “Leasing has been introduced as a new category for acquisition to substitute huge initial capital outlays with periodical rental payments,” the defence ministry has said.

Given the inadequate budgetary allocations, the option will come in handy for the forces to obtain equipment at short notice. Options for leasing trainer aircraft and transport helicopters have been made in the past to the ministry but were not taken up in the absence of a policy.

The ministry has also incorporated lessons from the past by formulating new `trial wings’ under different services of the armed forces that will specialise in conducting field evaluations. These wings will have personnel that will be given training to ensure a fair competitive process. In the past, trial teams have been manned by officers drawn from different roles, often resulting in the results being under par.

“Field Evaluation Trials to be conducted by specialised trial wings and the objective of trials will be to nurture competition rather than elimination for minor deficiencies,” the ministry has said.

The draft policy, which will be finalised after receiving inputs from the industry, also plans to increase the Indigenous Content (IC) stipulated in various categories by 10% to support the ‘Make in India’ initiative.

Significantly, there is a specific assurance in the policy to jet engine manufacturers and chip manufactures that the entire Indian market will be open if any company sets up a manufacturing unit domestically.

This would mean that if a company sets up shop here to manufacture, say fighter jet engines, it will be assured that the engine would be incorporated on the suitable home developed platform without a competition. The engines made here would be termed as `buyer nominated equipment’, meaning that they will compulsorily have to be fitted onboard the suitable platform.

While imports have already been at the bottom of the procurement priority list, they have been further pushed back with a new category to be introduced - Buy Global, Manufacture in India. This would require a minimum 50% indigenous content on cost basis of the contract value.

Other changes include new rules for the procurement of software and systems related projects where obsolescence is rapid, requiring a flexibility in approach. New rules on product support will incorporate new concepts like Performance Based Logistics (PBL), Life Cycle Support Contract (LCSC) and Comprehensive Maintenance Contract (CMC).

“With the experience gained by the industry and the Ministry of Defence (MoD), it is now time to take further steps to strengthen ‘Make in India’ initiative, refine Life Cycle Support of procured equipment & platforms and hasten the defence acquisition process by further simplifying the procedures & reducing the overall procurement timelines.” Defence Minister Rajnath Singh said at a ceremony to release the draft policy.

Karan M
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Re: Military Acquisitions, Partnerships & Developments

Postby Karan M » 22 Mar 2020 08:04

"A significant change has been the provision to lease equipment like transport aircraft,trainers and simulators that do not have a direct combat role. “Leasing has been introduced as a new category for acquisition to substitute huge initial capital outlays with periodical rental payments,” the defence ministry has said."


This is an excellent move!! Frees up $$ for the combat edge.

This would mean that if a company sets up shop here to manufacture, say fighter jet engines, it will be assured that the engine would be incorporated on the suitable home developed platform without a competition. The engines made here would be termed as `buyer nominated equipment’, meaning that they will compulsorily have to be fitted onboard the suitable platform.


This is a very dangerous move. It can force our local systems to be dependent on a country which exploits this to provide us sanctionable kit under the guise of local manufacture.

Ditto for chips.

Cain Marko
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Re: Military Acquisitions, Partnerships & Developments

Postby Cain Marko » 22 Mar 2020 11:55

Karan M wrote:
"A significant change has been the provision to lease equipment like transport aircraft,trainers and simulators that do not have a direct combat role. “Leasing has been introduced as a new category for acquisition to substitute huge initial capital outlays with periodical rental payments,” the defence ministry has said."


This is an excellent move!! Frees up $$ for the combat edge.

Karan, can you think of a back of envelope list of platforms where lease might be a good option. In terms of price and induction speed/availability. I'm suspicious that this is a move to get some US maal. It can also be made relatively sanction proof by including a clause where maal is not returned in case of of such events?

nachiket
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Re: Military Acquisitions, Partnerships & Developments

Postby nachiket » 23 Mar 2020 11:17

Leasing a few civilian cargo planes can be helpful. Not every supply mission needs a C-17, IL-76 or An-32. An old 737 cargo conversion might work well.

Vips
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Re: Military Acquisitions, Partnerships & Developments

Postby Vips » 23 Mar 2020 18:52

Indian Air Force may lease aerial refuelling tanker craft.

The Indian Air Force (IAF) is considering, for the first time, leasing aerial refuelling tanker aircraft to extend the reach of its fighter jets instead of a direct purchase against the backdrop of previous failed attempts to buy new tankers, two officers familiar with the move said on Sunday on condition of anonymity.

The doors to leasing military hardware were opened for the first time last week with the government unveiling a draft policy on arms acquisition that allows the armed forces to go in for leased capability to cut down on costs associated with purchasing weapons and systems.

“The IAF has made two attempts to buy tankers during the last decade-and-a-half. On both occasions, we were close to signing the deal but things fell through because of the high acquisition cost. Leasing is a good option to fill the capability gap,” said one of the officers cited above.

The IAF operates a fleet of six Russian-origin Ilyushin-78 tankers that are plagued by maintenance problems and the force urgently needs at least six more.

“We are finalising the requirements for the proposed lease of tankers to boost our in-flight refuelling capabilities. We are looking at aspects such as whether we should opt for a wet [the lessor provides crew and maintenance] or dry lease. Leasing will be a better option as our budget is under pressure,” said a second officer.

Leasing has been introduced in the draft Defence Procurement Procedure (DPP)-2020 as a new category for acquisition in addition to the existing ‘Buy’ and ‘Make’ categories in order to substitute huge initial capital outlays with periodical rental payments.

Leasing is permitted in two categories—where the lessor is an Indian entity and is the owner of the assets and where the lessor is a global entity. The provision of leasing in the draft DPP governs military equipment that is not deployed during the war—transport fleets, trainers and simulators.

“Tankers are a force multiplier and the IAF has been pressing for more inductions for the past 15 years. Finance has been and still is the issue. Leasing is a good option. It will save the flying hours of the IAF-owned aerial refuelling tanker aircraft for wars, with the leased ones doing the very substantial task of training and long ferries for exercises abroad,” said Air Vice Marshal (retired) Manmohan Bahadur, additional director general, Centre for Air Power Studies.

According to an August 2017 Comptroller and Auditor General of India report, the desired serviceability of the Il-78 fleet should have been 70% by the IAF’s own standards but it stood at 49% during 2010-16—barely half of the planes were available for missions at any given time during that period.

American (Boeing KC-46A), Russian (Il-78) and European (A330 MRTT) military contractors were expecting the IAF to float a global tender for more tankers. Israel Aerospace Industries’ Bedek Aviation Group was also looking at participating in the contest with its Boeing 767-200 multi-mission tanker transport—a conversion of the Boeing aircraft by Bedek Aviation.


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