India's R&D in Defence DRDO, PSUs and Private Sector

Vipul · Post by **Vipul** » 05 Feb 2012 22:18

We are targeting a total offsets business of $300 million in the next 3 to 5 years.

If these are tough times to be in any business, it is tougher to be in the fiercely-fought military business; more so if you are a Government-owned enterprise. These days, players like Bharat Electronics Ltd are facing stiff competition in the hitherto assured domestic market — from trans-national companies and a growing breed of Indian private sector industries.

BEL's Chairman and Managing Director, Mr Anil Kumar, who took charge in October last year , gives a glimpse of how the listed defence electronics major (in its fifth decade) is poised to combat the challenging times. Excerpts:

What is the big picture for BEL? What is being done to take the company to the next level in performance, products and global play?

Our plan is that, by 2020 we should be a Rs 25,000-crore company. BEL will address the businesses of missiles, radars, C4I (command, control, computing, communication and intelligence equipment or network-centric systems), besides electronic warfare and homeland security.

We are pursuing the C4I in the three Forces. Our market research consultant has identified nuclear power, homeland security and railways as our future growth areas. We will give a good push to homeland security. We have shifted this business to Bangalore.

Future wars will be fought at night. So we want to go in a big way with [night vision or] thermal imaging devicesand may manufacture detectors. It could mean an investment of Rs 1,000 crore.

A major project we have taken up is the Software Defined Radio. The Forces' requirement will be a lakh or so radios.

What type of investment will happen under the 2020 plan?

Over the next 4-5 years, we will be spending Rs 2,500-3,000 crore on infrastructure and acquiring new technologies. The focus will be on developing our technologies. If there is still a gap, we will acquire it by partnering with DRDO and other suitable partners.

What is the current financial outlook for BEL? Which business prospects are you looking forward to?

For fiscal 2012, we are looking at a turnover target of Rs 6,200 crore-plus. The profit should be around Rs 1,200 crore-plus if a few pending projects happen — such as the DRTS (Digital Radio Trunking System) and the modified Lorros mast (for surveillance).

Before the end of March we expect an order for 30 Weapon Locating Radars. There is an order for 29 of 3D tactical radars.

We will be spending Rs 250-300 crore this year. Next year, our capital expenditure can go up to Rs 350-400 crore. We have several modernisation plans. We are looking for technology for uncooled detectors initially. We want to expand facilities at Machilipatnam for night vision devices.

What will BEL make for homeland security?

BEL has developed the coastal surveillance system for the Coast Guard. This business will include X-ray machines, baggage and cargo scanners, under-vehicle inspection, face detection and recognition and number plate readers.

How is your civil sector business doing?

Our civilian business is growing in revenue but as a part of the total turnover, it is still only about 15 to 20 per cent. The electronic voting machine has been very successful. The Election Commission has asked us to include a printing facility to allow for a manual audit. We designed a tablet PC in record four months for the Ministry of Rural Development and delivered six lakh tablets in six months.We are upgrading its processing speed.. Smart card is another new area.

What is BEL's offsets opportunity from ongoing or impending military purchases?

BEL is targeting a total offset business of $300 million (around Rs 1,500 crore) in the next 3 to 5 years. Its share in the overall offsets business could be around eight per cent. So far, 80 per cent value of (proposed) acquisitions is for air platforms. Our share may improve when RFPs are issued in (non-aerospace) areas such as Naval platforms, gun programmes, radar and missile systems.

How do you view the increasing competition from the private sector and MNCs?

The private sector is generating healthy competition. The defence business requires patience, perseverance and staying power. We have been there for a long time now and will continue to be there. The private sector asks for a level playing field, but a level field has to be totally uniform in all spheres and all Government stipulations that apply to us should also be applicable to them. Actually, we take quite a 30-35 per cent of supplies by order value from the private sector. The private sector can be partners with us in large programmes.

chackojoseph · Post by **chackojoseph** » 09 Feb 2012 20:21

Cabinet issues guidlines for DPSU JV's

SagarAg · Post by **SagarAg** » 11 Feb 2012 09:33

I came across this documentary on youtube:

Can something like this technology be used as a tool for night vision in Army

Kailash · Post by **Kailash** » 13 Feb 2012 12:25

Bangalore lab to suit up Indian vyomanauts

Badar · Post by **Badar** » 13 Feb 2012 12:34

Kailash wrote:Bangalore lab to suit up Indian vyomanauts

WTF with astronauts, cosmonauts, taikonauts etc etc, one different word for each nationality. Lame.

Kailash · Post by **Kailash** » 15 Feb 2012 11:01

Defence exports to reach $ 2 bn in 2011-12

Indian defence technology attract global attention in Singapore

State-of-the-art Indian defence technology, including unmanned aerial vehicle " Rustom" and pilot-less target aircraft " Lakhsya", have attracted strong interests from several countries, including Brazil, Canada and Israel, a top DRDO official said here today.

"We have delegates visiting the Indian pavilion and expressing keen interest in our core technologies," Parimal Kumar, additional director of the Defence Research & Development Organization (DRDO) told reporters at the Singapore Air Show which opened here today.

He said Indian defence technology have attracted strong interests from Brazil, Canada, Israel, Jordan, Japan, Myanmar, Singapore and Japan at the Air Show from February 14-19.

chackojoseph · Post by **chackojoseph** » 16 Feb 2012 13:46

Daksh AMPMP to get LMG, Grenade and night vision to fight terror

chackojoseph · Post by **chackojoseph** » 16 Feb 2012 21:02

India and UK sign LOA for collabrative defence research

Pranav · Post by **Pranav** » 17 Feb 2012 01:46

SagarAg wrote:I came across this documentary on youtube:

Can something like this technology be used as a tool for night vision in Army

Yes - http://en.wikipedia.org/wiki/BEL_Battle ... ance_Radar . Has a thermal imager.

keshavchandra · Post by **keshavchandra** » 17 Feb 2012 14:00

DRDO to test image sensors (SAR)on aircraft
It has gone through the ground testing already and is ready for flight evaluation that could begin anytime.

An active sensor, synthetic aperture radar can image both in day and night. It has an all-weather capability. “SAR images are characterised by shadows, highlights, corner reflector effect, layover and shortening,” DRDO said.

Sources added that SAR, being sensitive to surface roughness and topography, can easily detect constructed areas and camouflaged objects.

It has the advantage of low revisit time due to steerable beam and cloud penetration capability.

ramana · Post by **ramana** » 18 Feb 2012 03:26

In future the HEMRL will become more important as BARC in its research products.

Kailash · Post by **Kailash** » 20 Feb 2012 14:42

DRDO scientists to develop advanced seekers for tactical missiles

To eventually equip mother missiles with smaller missiles

Imagine a war scenario in which miniaturised missiles equipped with Precision-Guided Munitions (PGMs) are unleashed from a mother missile to take out select enemy targets like an ammunition depot while avoiding collateral damage.

A mother missile acts as a “force multiplier” and to achieve the desired result, each miniaturised missile will have a seeker to ensure its independent motion, irrespective of the mother missile's motion.

Seekers, which are of two types — radio-frequency and infra-red, enable a missile to acquire, track and home in on to the target. They are required for all tactical missiles (less than 300 km range).

Scientists at the Research Centre Imarat (RCI), a key laboratory of Defence Research and Development Organisation's (DRDO) missile complex here, have embarked on developing such seekers to eventually equip mother missiles with smaller missiles packed with PGMs.

The mandate of the RCI is to deliver avionic systems for all missiles, including anti-ballistic systems and anti-aircraft missiles.

In a bid to conduct trials without using the mother missile, a Remotely Piloted Vehicle (RPV) has been imported to be used as a Technology Demonstrator for the project. A flight trial was conducted at the Integrated Test Range using the RPV along with a recoverable tow body by providing the vehicle the same velocity of a mother missile.

Good results were obtained from that exercise, RCI Director S.K. Chaudhuri told The Hindu on Sunday. More such trials would be carried out in stages to check the guidance, control and inertial navigation systems.

By the end of 2013, a crucial trial of the RPV with missile-launched PGMs to hit a target with both IIR (Imaging infrared) and mmW (millimteric Wave) seekers was being planned. Later, a flight test with a mother missile would be conducted, he said.

Another frontier technology area in which scientists have begun work is to design and develop ‘Low Probability of Intercept Radar Seeker' to equip anti-ship and anti-aircraft missiles.

This seeker will enable the missile to escape detection and jamming by enemy radars. Currently, Russia and the U.S. have such seekers, a senior RCI scientist said.

A few months ago, a major success was achieved when anti-tank Nag missile was flight-tested with an indigenously-developed mmW seeker.

Kailash · Post by **Kailash** » 20 Feb 2012 14:47

DRDO works on hypersonic vehicle

Hypersonic vehicles can take you to US in two hours

the work on the project had already started and technology is under development. She said, “The work of the project is on, thorough testing is required for this project as it is for passenger travelling . It can also be extended to space tourism.”

Kailash · Post by **Kailash** » 21 Feb 2012 17:44

India's next-gen electronic warfare system

Bangalore: India plans to develop new-generation Electronic Warfare (EW) systems to be fitted on Unmanned Aerial Vehicles, aircraft and satellites that would help it see "deep inside enemy territories", a key defence research and development official said here on Tuesday.

Chief Controller, Research and Development (Electronics and Computer Sciences), Defence Research and Development Organisation (DRDO), R Sreehari Rao, said the present EW system, especially ground-based ones fitted on Naval platforms have got "limited range" (10-20 km) and "can't intercept beyond the line of sight".

He noted that EW systems (to be) fitted on higher platforms like UAVs, aircraft and satellites would give "very long range". The ones on UAVs and aircraft would give the country a 400-500 kms range capability and those on satellites "much longer range".

"We can see deep inside enemy territories.We have plans to go in for higher platforms", Rao told reporters in response to questions ahead of the second international conference on electronic warfare, which will be formally inaugurated here tomorrow.

Rs 73.26 cr blocked as DRDO buys unusable land

Kailash · Post by **Kailash** » 21 Feb 2012 17:46

DRDOs new arm to offer only spin-off technology

In order to avoid controversial deals on the lines of Antrix-Devas, the Defence Research and Development Organisation (DRDO) will offer only civilian spin off technologies and avoid any “sensitive” products from its soon-to-be established commercial arm.

This has been soon-to-be for quite some time now

Kailash · Post by **Kailash** » 21 Feb 2012 17:58

Fortified AFVs vital for future battles

Kailash · Post by **Kailash** » 21 Feb 2012 18:43

They propel our space programme

While Andhra Sugars, based in Tanuku in the agri-rich coastal Andhra district of West Godavari, has developed a range of liquid propellants that fuel the satellite launch vehicles, Premier Explosives Limited, situated close to Hyderabad, fabricates solid propellants for key missiles. Each has, during the last decade or so, attained expertise, set up sound facilities, and has trained professionals to meet the stringent demands of the Indian space and defence sectors.

Snehashis · Post by **Snehashis** » 22 Feb 2012 01:21

Microwave masters

“OURS is a unique laboratory. Only about 15 countries in the world are engaged in research in microwave tubes, which is a tough technology area,” says Lalit Kumar, Director of the Microwave Tube Research and Development Centre (MTRDC), Bangalore. Microwave tubes, or MWTs, find applications in civilian systems, high-end communication systems and many defence systems. In fact, it is the MWTs onboard satellites that send signals to ground stations. Each satellite carries 30 to 40 travelling wave tubes (TWTs), which have high channel width, efficiency and life.

The MTRDC is one of 52 laboratories of the Defence Research and Development Organisation (DRDO) across the country. Its mandate is to work in the development of MWTs for the DRDO's Electronics and Radar Development Establishment (LRDE), the Defence Electronics Research Laboratory, the Defence Avionics Research Establishment, and the Defence Avionics Application Laboratory (which develops radar, electronic warfare equipment and communication and data link systems for the military). The MTRDC also develops microwave power modules (MPMs), electronic power conditioners (EPCs), high-density cathodes, and so on for various defence systems.

“The technological capability necessary for making these devices include computer-aided design and simulation, ultra-high vacuum, special purpose precision machining, protective atmosphere heat treatment and brazing, thin-film coating, high-frequency measurements, high-voltage testing and environmental testing for reliability,” said Lalit Kumar. “The state-of-the-art J.C. Bose Microwave Tube Facility, inaugurated recently at the MTRDC by V.K. Saraswat, Scientific Adviser to the Defence Minister, willboost research and development of MWTs,” he added. Bharat Electronics Limited (BEL), Bangalore, is the production agency for the MWTs and radars, electronic warfare systems and data links. The MTRDC is situated inside the BEL complex. It was the vision of V.S. Arunachalam, former Scientific Adviser to the Defence Minister, that led to the establishment of the laboratory. Former heads of the MTRDC, such as K.N. Tiwari, M.D. Rajnarayan, K.U. Limaye nurtured it. The MTRDC's goal is “to facilitate Em-power to empower the defence”.

The modern name for MWTs is vacuum electron devices (VEDs). But all VEDs are not necessarily MWTs. VED is the family name, while MWT forms the subset. MWTs are VEDs capable of generating or amplifying high-frequency signals for various defence and civilian applications in communications, radars, electronic warfare and integrated support measures (ISM) systems. Microwaves travel in matter in the same way light waves do but can penetrate most materials other than metals and other electrical conductors. Motion of electrons in vacuum is most critical in MWTs, which also find application in deep space communication, energy generation by fusion, sintering of ceramics in industry, processing of materials and in medical applications such as imaging and hyperthermia.

The purpose behind using MWTs is to amplify power. They can amplify microwave power a million times more, that is, one milliwatt into 100 watts and one watt into a megawatt. They are rugged devices. Some of these devices, used in satellites, last in space for about 15 years. The MTRDC did not develop the MWTs used in satellites but contributed to the design of the high-efficiency multistage collector for the first Indian space-qualified TWT developed for ISRO by the Central Electronics Engineering Research Institute (CEERI) and BEL.

Lalit Kumar said: “The devices we make work for about 10,000 hours. Military systems are much more demanding. Military devices typically work from 1,000 to 10,000 hours. Each of these devices is handcrafted using exotic materials, high melting-point metals and precious metals. They are expensive because they cannot be mass produced. For instance, a magnetron used in a microwave oven may cost about Rs.500. But a military magnetron will cost not less than Rs.500,000 because so much sophistication goes into its microwave tube. We have made devices that will sell at Rs.50 lakh to Rs.60 lakh a piece.”

TWTs are MWTs of special design, made using a broadband circuit in which a beam of electrons interacts continuously with a guided electromagnetic field to amplify waves. Two major classes of TWTs – the helix TWT and the coupled cavity TWT (CCTWT) – have been developed.

K.S. Bhat, Associate Director, MTRDC, said developing VEDS required a coming together of a number of disciplines: vacuum technology, electronics, high-power technology, material science, high-voltage engineering, and so on. The MTRDC has developed a number of devices, mostly TWTs, which are broadband amplifiers. They have a large market share among the MWTs. TWTs contribute to almost half the share of the MWT market in the world, with all the other devices such as magnetrons and klystrons, contributing the rest. Lalit Kumar said: “So we have chosen to work in this field, and this is important. We have already made a high-power X-band CCTWT for the airborne radar, an S-band CCTWT for the ground-based radar surveillance radar and broadband helix TWTs for electronic warfare applications.”

Apart from these tubes, the MTRDC is now making complete MPMs, which are highly compact, efficient amplifier modules combining the best attributes of solid state and vacuum device technologies. Lalit Kumar likened the clubbing of solid state and vacuum device technologies to a relay race, with the first half of the race (for low power) won by the former and the second half (for high power) won by the VEDs. MPMs are used in flight-level radars (FLR) manufactured by BEL, Bangalore. The weight and volume of these radars, which earlier employed big high-power amplifier racks, have come down by ten times after the employment of MPMs.

The MTRDC is also working on vacuum micro-electron devices, which will combine the best of solid state and vacuum devices. The MTRDC has also mastered the development of high-density dispenser cathodes. A cathode, the emitter of electrons, is the most important part of any MWT and is the component that determines the tube's life. “Several batches of cathodes for helix TWTs, CCTWTs and magnetrons have been developed and tested in the actual tube environment. Their performance has been at par with imported equivalents,” Bhat said. There are not more than five manufacturers of cathodes in the world.

The MTRDC has been successful in developing highly compact EPCs, which deliver conditioned power to various electrodes of the TWT and solid state amplifiers. “In layman's terms, the EPCs are called power supplies. But power supply is simple technology. What we are doing is highly sophisticated, state-of-the-art, most compact, 95 per cent efficient power converters for specific devices such as TWTs and solid-state amplifiers. They also monitor the health, control the operation and communicate with the host system of these devices to carry out commands,” explained Lalit Kumar.

He is happy that the Indian capabilities and achievements in vacuum electronics were highlighted to the entire international VED community from 15 countries when the MTRDC hosted the 12th Institute of Electrical and Electronics Engineers' (IEEE) International Vacuum Electronics Conference (IVEC-2011) in Bangalore in February 2011. It was lauded as the largest IVEC gathering outside the United States and had several first-time events.

Kailash · Post by **Kailash** » 22 Feb 2012 12:01

Govt pads up for chemical, bio and nuke mishaps

CBRN disaster management refers to the management of disasters from the use of chemical, biological, radiological and nuclear materials and the DRDO has developed more than 60 products and technologies for CBRN. Such items are nowadays produced by ordnance factories, defence PSUs and private sector and inducted into the armed forces.

Disclosing this here in a two-day seminar over the weekend, Dr W Selvamurthy, chief controller of research and development (Life Sciences and International Co-operation), DRDO, said the Government had approved establishment of a national centre for CBRN mitigation and training by DRDO initially as an arm of the Institute of Nuclear Medicine and Allied Sciences (INMAS).

The mandate of this centre would be to provide quality training to military, paramilitary, police and civilian first responders in handling CBRN eventualities as well as to function as a CBRN emergency response centre.

Vipul · Post by **Vipul** » 22 Feb 2012 20:07

Bhilai Steel Plant builds plates for space vehicles.

Bhilai Steel plant has executed a fresh order for special steel plates for space vehicles. The plant's Plate Mill rolled out a fresh order of 54 tonnes of ultra high strength special steel plates of 9.2 mm thickness that will be used for the main body of the country's indigenous space vehicles such as PSLV and GSLV.

These vehicles are manufactured by India Space Research Organisation (ISRO). The plates were rolled in Bhilai's Plate Mill from slabs supplied by Mishra Dhatu Nigam Ltd (MIDHANI). The rolling took place on February 9 and was witnessed by officials from MIDHANI and ISRO.

Steel is widely used in construction of space shuttles along with metals like aluminium, titanium and other high grade materials. These special grades of steel are made out of special alloys and are capable of withstanding metal fatigue which occurs due to tremendous changes in heat and atmospheric pressure on the spacecraft when it returns to orbit.

Bhilai had earlier rolled this special grade of plates for space application in 2009.

Kailash · Post by **Kailash** » 23 Feb 2012 11:24

Ministry may dilute defence offset policy today

* Permitting technology transfer as an offset. This will only apply to high technology that a vendor provides with full Intellectual Property Rights (IPR), and without restrictions. The DRDO will evaluate technology that is offered as an offset, assessing whether it fits into an overall indigenisation plan. For example, if a vendor offers technology for a missile seeker head, the DRDO will assess how badly that is needed; the feasibility of developing the technology within India quickly; and the cost at which it is offered.

* A system of “multipliers” will be introduced, which would give vendors enhanced credits for investing in priority fields. For example, if the MoD urgently requires metallurgical technology for building jet engines, a multiplier of, say, three could be placed on that technology. That would give a vendor who provides technology worth Rs 200 crore an offset credit of Rs 600 crore.

* Likely to be approved: a multiplier of 1.5 for purchase/manufacture directly related to the contract that generates the offset obligation. Also likely is a multiplier of 1.5 for investment in small and medium enterprises (SMEs). The highest multiplier of 3 is likely for the provision of high technology.

* DOFA, the lightweight section under the Department of Defence Production (DDP), could be beefed up with additional manpower and resources into a “single window agency” that can provide vendors with all reviews and approvals. Alternatively, DOFA could take the form of an entirely new agency, called “Directorate of Defence Offset Management” or “Defence Offset Management Wing.”

* Vendors could be permitted to discharge offsets through commercial shipbuilding. This non-defence field will be in addition to civil aviation and homeland security, which were permitted as offsets in DPP-2011

* The requirement of offsets may be substantially increased above 30 per cent, since vendors would benefit from measures like multipliers (a multiplier of 3 effectively brings down a 30 per cent liability to just 10 per cent). It will also be compulsory for vendors to discharge at least 40 per cent of their offset requirement through defence production (i.e. direct offsets) and no more than 60 per cent through the non-defence categories of civil aviation, homeland security and shipbuilding.

* The eligibility period for “offset banking”, which allows vendors to accumulate offset credits towards a future contract, could be increased to 7-10 years.

Kailash · Post by **Kailash** » 23 Feb 2012 11:36

India To Install EW Systems on Aircraft, Expand Range

Govt to Unveil Long-Term Plan of Armed Forces

The Plan would give an idea to the industries vis-a-vis requirements of the Armed Forces for the next 15 years so that they can act accordingly in areas such as joint venture, investment, research and development, the Vice-Admiral said.

Acknowledging that the demand-supply gap is an issue and the process -- from conceptualisation to actual delivery of products -- takes "a little longer time", he said there is need to involve and encourage private industry and "widen the capacity of the industry".
<snip>

Addressing the conference, he referred to "long-gestation period" between Research and Development, limited production capacity vis-a-vis users' (armed forces) necessity for military operations. "This calls for introspection".
<snip>

He said private industry should be encouraged in joint design and development and users need to be kept in the loop from the time of conceptualisation.

While the DRDO and production agencies have contributed a great deal in the field of EW, there is a need to fill the gap of demand and supply in terms of time-frame, quality and quantity, the Vice-Admiral added.

Atleast they know and are talking about the right way ahead. We will have to see how this really works out in the 15 or so years...

chackojoseph · Post by **chackojoseph** » 23 Feb 2012 13:03

Goa Shipyard works on new stealth ship designs for missile, patrol and ASW roles

chackojoseph · Post by **chackojoseph** » 23 Feb 2012 13:14

DRDO organises 2nd International Conference on Autonomous Unmanned Vehicles

ramana · Post by **ramana** » 24 Feb 2012 11:04

Trouble in HEMRL decisions:

http://www.outlookindia.com/article.aspx?279925

Outsourced mfg of products to company without license to make explosives.

Kailash · Post by **Kailash** » 24 Feb 2012 12:30

DRDO working on systems to detect nuke contamination

DRDO Develops Aerial Systems To Detect Nuclear Contamination Zones

Kailash · Post by **Kailash** » 24 Feb 2012 12:32

DRDO opens new department for low intensity conflicts

Jamal K. Malik · Post by **Jamal K. Malik** » 24 Feb 2012 16:43

DRDO focused on developing UAVs to aid intelligence: Subhananda Rao, DRDO R&D Chief

ramana · Post by **ramana** » 24 Feb 2012 21:12

Jamal K. Malik wrote:DRDO focused on developing UAVs to aid intelligence: Subhananda Rao, DRDO R&D Chief

Singha, Hurray for RECW.

He is from RECW!

Finally they make it to the top.

VinayG · Post by **VinayG** » 25 Feb 2012 03:40

Expectations: Defence Sector

FICCI has highlighted the following proposals for the Defence Sector in its pre-budget memorandum.

• As per the DPP, for all Buy Indian, Buy and Make (Indian) and Make procurement, Foreign Exchange Rate Variation (FERV) is allowed to DPSUs for all nominated orders and the same is denied to all Indian companies including DPSUs when they compete with Private industry. Since most of the order book of DPSUs continue to be nominated, their risk profile on account of FERV exposure is minimal at portfolio level. Therefore FERV facility should be available to Domestic Private Suppliers also.

• Payment terms for DPSUs are as agreed in the MOU between Ministry of Defence (MOD) and DPSUs, whereas other domestic suppliers do not enjoy the same terms. This discrimination needs to be corrected.

• Domestic Private Suppliers have to continue to load local taxes and duties like Excise/CST/Octroi through the value chain which is a handicap against foreign suppliers. DPSUs on the other hand are benefiting through use of delegated powers to get these exemptions for their direct and tierised vendors (input material to DPSU). The benefits available to DPSUs for sourcing duty-free inputs and job work under various notifications should be extended to other major suppliers / system integrators.

• Offsets Taxation: DPP 2008 stipulates offsets from Foreign vendors on contracts larger than 300 Cr. Offsets are a minimum 30% of the contract value. Current Taxes and duties treatment of offsets is limiting offsets as “parts and subsystems” sold by Indian industry through Physical exports (being part of Global supply chain) and thus misses out on systems and system of systems integration within the country.

Moreover, offsets at component and subsystem level that are exported as part of global supply chain of foreign OEM do not suffer taxation except CST that can not be VAT’ed. Such a treatment of offsets benefits only SMEs who are manufacturers at component and subsystem level.

The other aspect of offsets could be to build systems (system integration) in India for a foreign OEM by system houses (Defence licensees). This brings in the Domain expertise and need to be facilitated rather than dissuaded by the current taxation treatment of offsets that are “delivered” in India. Following may be looked at to make the offset policy more efficacious for the country by treating indigenous value addition on par with imports since the same as defence imports would have been treated tax free anyway:

i) Offsets could also be supply of indigenous systems supplied as part of system of systems being sold by the foreign OEM, and may directly be supplied to Indian Services (not getting physically exported).

ii) It is also possible that Offsets could be delivered by the foreign OEM in the form of system integration especially where large systems need to be fully integrated and tested in India by the Indian offset partner. This involves passing on the system level know-how that is vital for building industry capability in doing so in India.

• In either of these cases there is no exemption of taxes and duties, on inputs or output (at sale point), when Offset sales are delivered in India. T&D implications at the hand of Indian Offset Partner add up to >30% of price accounting for the T&D on inputs as well as at point of sale. This makes offsets more expensive compared to the supplies by foreign OEM and moreover dissuades them doing domain level value addition in India. It also effectively reduces offsets from 30% to 21-22% if delivered in India.

• To avoid this and facilitate indigenous capability building System Offset sales delivered in India should be treated on par with Physical Exports for the purpose of Excise duty and Sales Tax / VAT on output with use of corporate bonds and not involving physical payment of T&D upfront and get it reimbursed later. Credit of Excise duty and Sales tax, octroi, local levies should also be allowed on inputs required to deliver offset sales.

Alternately all Defence imports need to be “notionally loaded” with customs duty and countervailing duty and procurement from domestic vendors be freed of all duty exemption regimes to remove subjectivity to facilitate higher value addition in India with a partner (defence licensee) of choice of the foreign OEM.

Set up Rs 100 crores technology fund for SMEs in defence production.

Exemption from Central Excise Duty on job work inputs for supplies to defence: Presently specified Defence undertakings like HAL, BEL, BDL, BEML etc procure Job Work Inputs without payment of duty for use in the manufacture of items for supplies to Defence, in terms of Notification No. 70/92 – C.E. dated 17-06-1992 as amended. This affords them a cost advantage by savings of Central Excise duty on their inputs as compared to private sector companies licensed to manufacture Defence equipment.

It is suggested that the private sector licensed manufacturers of Defence equipment be afforded a level playing field by amending further the Notification No.70/92 – C.E. dated 17-06-1992. The amendment should provide for procurement of the Job Work inputs by the private sector defence licensed manufacturers against ‘Ministry of Defence Orders’ without payment of Central Excise duty on the same lines of the procurement of the Job Work inputs by the specified Defence Undertakings

shukla · Post by **shukla** » 25 Feb 2012 05:48

HAL to give more work to local firms
TOI

In a bid to increase outsourcing of its work to local industry, the aircraft manufacturer Hindustan Aeronautics Ltd (HAL), which mainly makes combat aircraft of the MiG series and Sukhoi 30 MKI for the Indian Air Force, wants industries in Nashik to manufacture aircraft components. HAL manufactures defence aircraft at its Ozhar plant, near Nashik. The defence aircraft, which are manufactured here, include Su-30 MKI (twin-seater, multi-role, long range fighter / bomber / air superiority aircraft), MiG-27 M (single-seater tactical fighter / bomber with variable sweep wings), MiG-21 variants (single-seater frontline tactical interceptor / fighter aircraft). Presently, HAL is outsourcing aircraft components to industries from Bangalore and Hyderabad, while Nashik industries contribute on a minor scale. In Nashik, HAL is outsourcing components to around 50 to 60 small and medium enterprises (SMEs) amounting to around Rs 70 crore, which is very less compared to the components the aircraft maker does to industries based in Bangalore and Hyderabad.

"Nashik has witnessed a substantial industrial growth in the past few years. The small and medium industries from Nashik are manufacturing quality products and getting good business opportunities. Hence, HAL had shown interest in outsourcing aircraft components to companies in Nashik for the last three years, but it was at very low scale," said P S Roy, HAL general manager (aircraft manufacturing division), said at the inaugural session of the four-day industrial exhibition NIMA Index: 2012 here on Friday.

"Presently, we are outsourcing aircraft components from Bangalore and Hyderabad, which is logistically not feasible. Considering this fact, we are planning to outsource maximum components to Nashik industries. We already have large number of works which will be done by Nashik industries," Roy said. Nashik Industries and Manufacturers' Association (NIMA) president Dhananjay Bele said currently the local industries are getting only a very small portion of the outsourcing pie. "We are making efforts to get more outsourcing work to at least 500 small and medium enterprises in Nashik with the value amounting to Rs 250 crore. The business deals with HAL are expected during the ongoing industrial exhibition," he said.

Vipul · Post by **Vipul** » 27 Feb 2012 22:03

Three Indian entities among world's top 100 arms manufacturers.

Two Indian companies - Hindustan Aeronautics Limited (HAL) and Bharat Electronics (BEL) - and one entity - the Ordnance Factories Board (OFB) - figure in the top 100 list of arms manufacturers released by disarmament watchdog SIPRI (Swedish International Peace Research Institute) for 2010.

HAL (aircraft and missiles) is placed 34 with total sales of $2.7 billion. Of this, arms sales accounted for 90 percent at $2.4 billion. HAL, in fact, climbed four places from 38 in 2009, when it posted total sales of $2.1 billion.

The OFB (artillery, small arms and ammunition) was ranked 46, up from 55 in 2009. Its total sales were at $2.4 billion, with arms sales bringing in $1.9 billion or 80 percent of its revenues.

BEL (electronics) fell to 71 from 67, with total sales of $1.2 billion, of which arms accounted for $970 million or 80 percent of its revenues.

Interestingly, HAL is one notch above the highest-ranked Israeli company - Elbit Systems (electronics) - which is at 35, down from the 29th it was in 2009. Its total sales in 2010 were $2.6 billion, with arms accounting for $2.4 billion.

India might be sourcing 70 percent of its military hardware from Russia but the highest-ranked Russian company in the list is missile manufacturer Almaz-Antei at 20. Its total sales were $4.4 billion, with arms accounting for $3.9 billion.

The only other Russian company in the top 25 is United Aircraft Corporation at 21, with total sales of $4.2 billion and arms sales of $3.4 billion.

RIA Novosti adds: US military hardware major Lockheed Martin was the biggest arms vendor in 2010 with sales of $35.7 billion, 78 percent of its total sales of $45.8 billion.

Only three companies in the top ten of the SIPRI Yearbook 2012 are not from the US - Britain's BAE Systems (second with sales of $32.9 billion), Europe's EADS (seventh with sales of $16.4 billion) and Italy's Finmeccanica (eighth with sales of $14.4 billion).

"The total arms sales (including sales of military services) of the SIPRI Top 100 maintained their upward trend in 2010, although at 1 percent in real terms, the increase was much slower than in 2009," a SIPRI press release said.

"The data for 2010 demonstrates, once again, the major players' ability to continue selling arms and military services despite the financial crises currently affecting other industries," SIPRI arms industry expert Susan Jackson said.

Aditya_V · Post by **Aditya_V** » 27 Feb 2012 22:10

No Chinese Companies in the SIPRI list?

chackojoseph · Post by **chackojoseph** » 28 Feb 2012 18:06

BASIX 'Aahaar,' DRDO Dal Roti pack for Rs 35

We are the first to bring out the price, quantity and method information.

Kailash · Post by **Kailash** » 29 Feb 2012 12:09

DCNS India delivers to Mazagon Dock Limited (MDL) the first locally produced Scorpene submarines equipments

The delivery, managed by DCNS India, was achieved on time, meeting all the stringent quality standards required for on-board use on a submarine (100% quality compliance).

The shipyard Mazagon Dock Limited (MDL) has received the first Indian made equipment for the Scorpene submarines programme (P75). MDL has congratulated this successful industrial performance during the recently held Government to Government (G2G) meeting between India and France.

MDL is producing six SSK Scorpene submarines (P75) under transfer of technology (ToT) from DCNS. Simultaneously, DCNS India*, DCNS Group’s subsidiary in India, is working at the selection and qualification of Indian companies as partners for local production of the Scorpenes’ equipments.

In June 2011, DCNS India has signed a contract with Flash Forge India Pvt. Ltd. under the Scorpene submarines programme (P75). “We are providing our Indian partners with know-how and technical assistance to manufacture equipments which will be installed onboard the Scorpenes. Together with MDL, we are qualifying the suitable companies which are meeting the rigorous specifications needed for the submarines”, reminded Bernard Buisson, Managing Director of DCNS India.

The Factory Acceptance Test (FAT) for the first locally made Scorpenes’ equipment (for the large scale piping system) was successfully performed at Flash Forge premises in Vishakapatnam in January 2012.

The success of the manufacture and delivery of this first indigenisation contract with Flash Forge India Pvt. Ltd. is the culmination of a long and stringent process, involving: • Preliminary audits of the manufacturing and quality processes, performed by experts from DCNS France; • Certification of the prototypes to three different laboratories, including a DCNS laboratory for Naval Material and Structures, in order to validate the good manufacturing of the equipment; • Frequent interactions between Flash Forge and DCNS teams during the manufacturing process.

This delivery is especially significant since the quality of each equipment onboard submarines contribute to the overall safety of the crew on board and of the ship performance. Flash Forge has already proven experiences in forgings and pipe fittings with MDL and other Indian shipyards. Today, through the participation in the P75 Scorpene submarines, higher standards of qualifications have been achieved.

Bernard Buisson said, “Given the relative small quantities of each material to be manufactured, DCNS is looking for long term partnerships. And each potential industrial partner needs to demonstrate a willingness to invest in the required specific infrastructure development. We are very pleased with commitment shown by Flash Forge”.

The same comprehensive selection method is under way for other equipments and more contracts with Indian partners will be announced shortly.

chackojoseph · Post by **chackojoseph** » 29 Feb 2012 17:24

Mazagon Dock receives first locally produced Scorpene submarines equipments

shukla · Post by **shukla** » 01 Mar 2012 12:53

Hindustan Aeronautics poised for significant restructuring
FlightGlobal

gunjur · Post by **gunjur** » 01 Mar 2012 20:07

B/E Aerospace opens engineering services division

Here i found this

The Tata-Sikorsky joint venture has already started producing helicopter cabins.

So what is the status of various JV's between Tata's, Mahindras, L&T's of india with BAe , EADS, Boeing, IAI, Lockheed Martin. Is any of them are up and running or are they still on paper.

SaiK · Post by **SaiK** » 03 Mar 2012 06:28

It's because of the multiplicity of programme not because of the lack of competencies or facilities. "It's more a question of project management. Need of the hour is greater project management", the Minister said.

The process of productionisation needed to be speeded up. Some times "small decisions" are referred to the Ministry while it could be handled by HAL itself,he said.

The minister reads BR, I guess.

And.. it is funny! for small decisions they go up to ministry... speaks volume about insecure feeling or incompetence in whatever that makes them go the ministry.

fruedian slip it may be, but the in between line speaks volume about HAL/per the ministry.

shiv · Post by **shiv** » 03 Mar 2012 07:36

Disinvestment of HAL will happen: govt

Government today said the process to disinvest shares in Hindustan Aeronautics Limited is on but acknowledged that the Indian Air Force is dissatisfied with the defence PSU for not sticking to delivery schedule.

"The will of the Government is there for disinvestment. But it's going through its procedures", Union Minister of State for Defence, M M Pallam Raju told reporters in response to questions on the sidelines of a function here.

Sources in the Bangalore-headquartered company said the Book Running Lead Managers and the Legal Advisors have been selected for the divestment process.

"HAL is gearing up for the disinvestment process.The exact timing of the IPO would be decided by the Ministry of Defence/ Department of Disinvestment", an HAL official told PTI.

Raju said some times HAL was not able to meet the expectations of the primary user of its products, IAF, because it's handling "so many programmes". "They (HAL) may not be able to productionise on time".

(Delay in_ productionisation "has not been entirely to the satisfaction of the Air Force", he said.