Military Acquisitions, Partnerships & Developments

SagarAg · Post by **SagarAg** » 28 Feb 2013 18:56

So $37.9 billion is the defense budget for all our armed forces. So is it the allocated budget for buying military hardware onlee or it includes salaries, food supply etc etc of our armed forces ? Can someone explain what exactly defense budget means?

pkudva · Post by **pkudva** » 28 Feb 2013 19:37

The amount of Procurement of Military Hardware will be 86,000/- Crores which is roughly 16 Billion USD.

Rest of 117,000/- Crores will be for Revenue/Salaries.

Even though 203,000/- Crores has been allocated if the economy gets hit and may be it may face reduction. However, i feel the allocation has been low considering the fact last year itself the Forces had requested for 240,000/-

Cheers!!!

RamaY · Post by **RamaY** » 28 Feb 2013 19:47

SagarAg wrote:So $37.9 billion is the defense budget for all our armed forces. So is it the allocated budget for buying military hardware onlee or it includes salaries, food supply etc etc of our armed forces ? Can someone explain what exactly defense budget means?

It is every thing. It includes ~$16B for capital outlay. That means if needed in this year alone the Armed forces can pay for entire MMRCA deal and still have ~$5B for other projects.

First let us see if the Armed Forces can buy anything in time and without bribes and controversy.

Please note that the entire national budget is about ~$300B. This includes interest payments, Govt salaries, running the govt etc which will be around $200B. So after paying salaries and defense budget we will have ~$60-80B. Which will be used for some xGandi Vote Buying Scheme.

vic · Post by **vic** » 28 Feb 2013 20:07

It seems drdo budget is same or lesser which is a disappointment.

SagarAg · Post by **SagarAg** » 28 Feb 2013 20:08

Got it. Dhanyawaad pkudva ji and RamaY ji for the explaination.

Now it became more clearer to me the way money is spent onlee!

RamaY wrote: It is every thing. It includes ~$16B for capital outlay. That means if needed in this year alone the Armed forces can pay for entire MMRCA deal and still have ~$5B for other projects.

Are you sure RamaY saar that MMRCA will cost $11 billion dollars at the max. Some(including me) of us are speculating it will be negotiated for anything between $16b - $18b dollars.

SagarAg · Post by **SagarAg** » 28 Feb 2013 20:15

vic wrote:It seems drdo budget is same or lesser which is a disappointment.

DRDO has been allocated Rs 5,500 crore.

Of the Rs 1,16,931 crore allocated for revenue expenditure, the army has been allocated Rs 81,833 crore, the navy has got Rs 12,194 core while the IAF received Rs 18, 295 crore.

Of the Rs 86,741 crore capital expenditure fund, the IAF has the largest share of over Rs 38,000 crore followed by the navy and the army. These funds are used for modernization of equipment and raising new formations.

The major portion of these funds would be used to procure aircraft and aero-engines for the services for which Rs 33,776 crore have been earmarked for the year 2013-14.

Nikhil T · Post by **Nikhil T** » 01 Mar 2013 03:57

Few very interesting insights from the details of capital spending of the Defense budget. Here's the link.

1. In 2011, actual spending on capital was Rs 68k crores (lower from Rs 69.1k cr initially budgeted, but higher than revised estimates of Rs 66.5k cr). So overall not bad management at all.

2. Aircraft and aero engines
- Army's budget cut by half (Rs 1500 cr vs Rs 3000 cr last yr). Strange since the 22 Apache deal was to be signed and 20 Rudras are coming in 2013.

3. Other equipment (i.e. all other weapons)
Air Force sees a budget increase of 140%! Total is Rs 11600 crore this year (vs 4800 cr initial estimate 2012 and 6000 cr revised estimate. Also interesting that for this head, RE is higher than BE in a year of cuts!).
Guess there's more emphasis on radars, Akash deliveries and other missiles.

4. Naval Fleet (i.e. budget for warships) has been cut by 13% from Rs 13,500 cr to Rs 11,700 cr. But Naval Dockyards have doubled their outlay from Rs 1000 to 2000 crores.

putnanja · Post by **putnanja** » 01 Mar 2013 04:18

Lowest Defence Budget increase in over 30 years

...
As the government scrambles to cut costs given the dismal growth rate, defence spending is one of the hardest hit with the projected Budget of Rs 2.03 lakh crore coming up to barely 1.79 per cent of the Gross Domestic Product. This is a record low for India in at least three decades, with the figure dropping considerably from 3.16 per cent of the GDP in 1987.

The expenditure Budget has also revealed that the Defence Ministry suffered a Budget cut of over Rs 14,000 crore last year, a majority of which — over Rs 10,000 crore — had been marked for procurement of new defence systems.

...
...
However, as the records show, not only is this year's allocation the lowest in over three decades in terms of ratio to the GDP, it is also the lowest in terms of percentage of the total annual government expenditure. This year's defence budget is 12.23 per cent of the estimated spending of the government in the upcoming financial year, considerably down from the 15.79 per cent in 1999 as well as lower from last year's 12.97 per cent.

A surprise revelation in the Budget is that the Defence Ministry's much valued funding for prototype manufacturing of defence systems under the 'Make' category of procurement has failed to make a mark. The Budget document indicates that none of the Rs 89 crore earmarked for prototype development was spent, forcing a cut in this year's allocation to a symbolic Rs 1 crore.
...

Karan M · Post by **Karan M** » 01 Mar 2013 05:35

vic wrote:It seems drdo budget is same or lesser which is a disappointment.

Sire, the entire underfunding of local R&D even whilst expensive imports which cost many times the investment in local infra, is a constant policy & is nothing new. The rough thumbrule is that DRDO, for instance, at best gets 70% of what they ask for, which in turn is heavily pruned versus what they really need. So the level of underfunding is actually more. Meanwhile, we keep importing screws & screwdrivers to go along with them, in the guise of TOT.

aditya.agd · Post by **aditya.agd** » 01 Mar 2013 08:59

we do not want private sector participation so that corruption can be continued.

vic · Post by **vic** » 01 Mar 2013 12:18

This systematic corruption and cutting down of DRDO budgets cannot happen without blessing from the top family

Nikhil T · Post by **Nikhil T** » 01 Mar 2013 12:18

aditya.agd wrote:we do not want private sector participation so that corruption can be continued.

Karan M wrote:
vic wrote:It seems drdo budget is same or lesser which is a disappointment.
Sire, the entire underfunding of local R&D even whilst expensive imports which cost many times the investment in local infra, is a constant policy & is nothing new. The rough thumbrule is that DRDO, for instance, at best gets 70% of what they ask for, which in turn is heavily pruned versus what they really need. So the level of underfunding is actually more. Meanwhile, we keep importing screws & screwdrivers to go along with them, in the guise of TOT.

Want another shocking stat? If you see the actual DRDO budget here, out of that Rs 5500 crore, no more than Rs 850 crore is meant to be ACTUALLY spent on R&D. Rest is salaries, stores and works.

What are we trying to even achieve with this pittance? Not sure if this is Govt apathy or DRDO's low ask. Even private auto firms spend more on their R&D projects. Something doesn't add up.

Worse, last year Rs 650 crore was spent under R&D after Rs 1150 crore initially budgeted.

Singha · Post by **Singha** » 01 Mar 2013 13:06

does that include funding for strategic projects like SSN/missiles. someone was claiming these are hidden under some entity called "consolidated fund of india" or such? but I do agree even if we just call it non-strategic its a pittance and worse than probably what AVIC1 or Chengdu get all alone.

pankajs · Post by **pankajs** » 01 Mar 2013 16:30

HAL to rope in local entrepreneurs to make Sukhoi spare parts

Hindustan Aeronautics Ltd (HAL), a premier state-owned aeronautical company, is open to involving local entrepreneurs for manufacturing spare parts required for Sukhoi aircrafts, a senior official said today.

“Nashik-based entrepreneurs will get an opportunity to produce Sukhoi spare parts, its milling and griding components, electrical circuits, among others, for the HAL,” Dhananjay Bele, President, Nashik Industries and Manufacturers Association (NIMA) said here today.

“HAL is ready to provide technology to local entrepreneurs,” HAL General Manager (Indigenisation), Poonam Srivastav said here after an event.

“HAL requires 350 to 400 spare parts for overhauling and repairing work of each Sukhoi-30 aircraft. The spare parts are currently imported from Russia,” she said.

“If local entrepreneurs produce these spare parts, they will get business of Rs 10,000 crore,” Srivastav added.

Vipul · Post by **Vipul** » 09 Mar 2013 19:59

Defence ministry still waiting for nod to Plan outlay.

Despite an 'in-principle' clearance from the Defence Acquisition Council (DAC) last April, the defence ministry is still awaiting approval of the ministry of finance and the Cabinet Committee on Security for its 12th Five-Year Plan.

In April 2012, the DAC, at a meeting chaired by defence minister AK Antony, gave its nod for the 15-year Long-Term Integrated Perspective Plan (LTIPP) that will end in 2027 and the five-year plan that will end in 2017, a defence ministry official said.

"The DAC considered the perspective plans of the defence forces at a meeting and gave in-principle approval to two important planning documents of the armed forces -- The LTIPP 2012-27 and Five-Year Defence Plan 2012-17," the official said.

According to officials in the ministry, the five-year plans are usually approved a year ahead of the Plan period. But in this case, the approval came a day after the Plan period had begun.

Explaining the procedure of clearance, officials told FE: "The country's defence planning falls under the purview of the National Security Council, headed by the Prime Minister, and members of the Cabinet Committee on Security (CCS) are there too. The defence plans, be it the Five-Year Plan or the long-term plan, have to go through the finance ministry before it goes to the CCS."

They added: "These plans need the finance ministry approval as then only can they chalk out their procurement plans, as they get an idea what is the expected growth of GDP, what kind of funds the government would give. Based on all this can procurements be planned." Now, due to the non approval by the Finance ministry and the CCS, several important military modernisation plans, are likely to get affected.

The unclassified version of the LTIPP will be promulgated in the form of Technology Perspective Capability Roadmap (TPCR) to enable the Defence Research and Development Organisation, Defence Public Sector Undertakings and the Indian industry to plan their research and development roadmap. While the LTIPP is a broad vision document, the 12th Defence Plan deals more in detail with the specific requirements and modernisation plans for the armed forces, as also projections for the allocation of resources for the modernisation and day-to-day functioning.

Concerns are being expressed by the defence ministry and the headquarters of the armed forces that the 12th Plan documents should not go the 11th Defence Plan way. "It maybe recalled 11th Defence Plan that ended in March 2012 was not formally approved by the government and hence did not receive committed budgetary support. If the approvals had come and the budgetary resources were available, that would have enabled the three armed forces to work out their acquisitions, be it weapons or other military systems, in a systematic manner," pointed out a senior official.

Malayappan · Post by **Malayappan** » 13 Mar 2013 19:39

Not sure if posted already.

Appu Soman questioning the Rafale

http://centreright.in/2013/03/rip-rafal ... UCM51eZgzQ

arun · Post by **arun** » 06 Apr 2013 13:35

Ashok Leyland / L&T combine wins contract to upgrade the IA’s 122 mm BM-21 Grad MBRL inventory, a process which includes mounting the MBRL system on a new platform:.

According to people familiar with the development, a consortium of Ashok Leyland and L&T emerged the lowest bidder two weeks ago when commercial bids for procurement of 100 multibarrel rocket launchers (meant to upgrade the BM21 rocket launchers) were opened. The value of the contract is about Rs 100 crore, according to industry sources.

The contract involves refurbishing the existing rocket launchers and mounting them on new vehicles. The weapons-related work will be done by L&T and the vehicle is a new Ashok Leyland platform. ……………….

The contract for rocket launchers is among four tenders for specialised trucks the army had called for in 2009. Field trials are over and commercial bids will be opened in the coming months.

The others are for 1,239 units of 6-wheel-drive high-mobility vehicles, 255 units of 8-wheel-drive highmobility vehicles and 100 units of so-called field artillery tractors. ……………….

Economic Times.

Eric Leiderman · Post by **Eric Leiderman** » 07 Apr 2013 10:09

http://bit.ly/XZOe5r?nan_pid=434100677

HOPE the IA and IAF use this to its full potential.

Austin · Post by **Austin** » 07 Apr 2013 15:39

India Mulls More Changes To Defense Acquisition Rules

The AgustaWestland deal in India for AW101 helicopters that is being investigated after bribery allegations has prompted the Indian government to re-examine its already delayed defense procurement procedure 2013 (DPP). This is now focusing on “indigenization,” which defense minister A.K. Antony described recently as the “ultimate solution to the scourge of corruption.”

In the interim, until the DPP 2013 is released, amendments on revised offset guidelines will include preference for Indian suppliers for bids. The clause on application-based software for enterprise resource planning (ERP), for which Indian companies already have the skills, will be removed. To encourage system-based software development in civil and defense aerospace, high-end avionics, flight controls, flight control laws and Cat A critical software will be included as offsets, a senior MoD official told AIN.

India’s DPP calls for a minimum of 30-percent offsets, but OEMs are finding it difficult to meet this requirement as the industry has yet to mature. “We found printers and computers being bought under the name of offsets. Besides, OEMs were implementing systems applications and products [SAP] and ERP at the premises of the Indian offset providers, not charging for it and claiming that as offsets,” said the official.

Limiting software as an offset has direct ramifications on many OEMs’ ability to transfer technology, and some are describing the move as shortsighted. “With software becoming the central theme of integrated defense warfare, this could be detrimental for the large IT and system integration capabilities we built in this country…The challenges are lack of critical technologies, integration of large systems, supply chain and logistics,” said Karthikeyan Natarajan, senior vice president and global head of integrated engineering solutions for Mahindra Satyam.

The DPP amendment, expected to provide the first opportunity in all contracts to Indian companies, including the private sector, has raised concerns that lack of investment or knowledge base will prevent projects from maturing (India has a small aerospace manufacturing base and only 26 percent foreign direct investment by foreign partners is allowed). For example, none of the major contracts including the Battlefield Management System and Tactical Communication System, under the Make (India) category, in which India’s private sector and public sector have equal opportunity, has progressed much beyond the preliminary stage.

“When will we understand that indigenization and build-out of the defense industrial base can happen with responsible [foreign direct investment] allowance? If a company is able to control majority ownership of a [joint venture] on India’s soil, this will bring sensitive technology and manufacturing know-how to the Indian private and public sector,” a foreign OEM told AIN. “Restricting [foreign direct investment] yields slower and less impressive technology to be transferred and more basic manufacturing rather than higher-order system integration and component or platform manufacturing,” said the official on condition of anonymity.

“The need of the hour is to develop a common forum of different agencies [potential suppliers, R&D labs, industries and users] for a specific purpose of ‘indigenization’ with clear goals, ” said Ramaseshan Satagopan, vice president and head of aerospace engineering practice, integrated engineering solutions, Mahindrea Satyam.

Austin · Post by **Austin** » 13 Apr 2013 10:59

Defence ministry's initiative to push indigenous development: DPP-2013 coming soon!

The Defence Procurement Procedure of 2013 (DPP-2013), which the defence ministry (MoD) has almost finalized, aims to fundamentally transform the approach to buying new military equipment. From mid-2013, when DPP-2013 is expected to take effect, the international arms bazaar will no longer be the first choice for buying weaponry and equipment. Instead, it will first have to be established that the required equipment cannot be built in India.

A senior MoD official who is involved in framing DPP-2013 tells Business Standard, “So far the army, navy and air force have gotten away with the presumption that sophisticated weaponry must necessarily be bought overseas. Now development in India will be the default option. Only after establishing that indigenous development is impossible will we explore the international market.”

Lip service has long been paid to indigenization but DPP-2013 will back Indian vendors with institutional procedures. After deciding to buy a particular piece of equipment, a process called “categorization” determines whether it will be bought from Indian or from international vendors.

If the equipment can easily be built in India, or must be because it is so sensitive that no overseas vendor will part with it (e.g. electronic warfare equipment), the procurement is classified “Make (Indian)”. Alternatively, if an Indian company can partner a foreign vendor to build an existing system in India with at least 50% indigenous content, it is classified “Buy & Make (Indian)”. Next, if in-service equipment is to be bought overseas and then license-built in India with transfer of technology (ToT), the procurement is categorized “Buy & Make”. Finally, if neither indigenous design nor manufacture is feasible, and the equipment must be bought over-the-shelf, the procurement is categorized as “Buy (Global)”.

MoD and DRDO officials complain that the military often cites “urgent operational requirement” to rush through multi-billion dollar arms purchases in the “Buy (Global),” or “Buy & Make” categories. The military has repeatedly argued that the urgency of a threat left no time for Indian developers like the Defence R&D Organization (DRDO), or Indian public and private sector companies, to go through the time-consuming process of developing a complex weapons system. This argument was made convincing by the decades that the DRDO took to develop its first generation of successes like the Dhruv helicopter, the Arjun tank and the Light Combat Aircraft.

“When the DPP-2013 comes into effect, ‘Make’ and ‘Buy & Make (Indian)’ will be the default categories. If they are, for some reason impossible, the second priority will be ‘Buy and Make’. The ‘Buy Global’ category will be the last option,” says Dr VK Saraswat, the DRDO chief.

MoD officials admit that this indigenization drive can succeed only if Indian industry is allowed the time to develop futuristic weaponry. Last year, the military’s Long Term Integrated Perspective Plan (LTIPP) detailed the armed forces’ equipment requirement for the 15 years out to 2027. Translating these projections into actual development projects will give Indian industry the lead-time to design and develop the weaponry that has been projected.

Until recently, a declassified version of the LTIPP was proposed to be put up on the MoD website, so that Indian industry could begin technology development programmes. But this raised security concerns; and so no declassified LTIPP will be posted. Instead, Requests for Information (RFIs) will be sent out to Indian vendors and consortiums, effectively inviting them to develop selected equipment.

The RFI will detail the performance parameters of the equipment that is required. So far these parameters were listed in a formal document termed the General Staff Qualitative Requirement (or GSQR). The RFI will effectively be an abbreviated GSQR.

“If the military wants to buy weaponry abroad, it will be required to explain at the categorization stage why it cannot be made in India. It will have to demonstrate that the equipment was conceived of well in time, and that industry was given enough time to develop the equipment. Only if that was done, and industry still failed to develop the equipment, will a category other than ‘Make’ be considered, says the MoD official.

“Along with the LTIPP, the DPP-2013 will give domestic developers the time needed for developing defence equipment. We need to specify what we want to indigenize. Once the industry knows that, market forces will drive investment, development activity, collaboration, joint ventures and help this country to design and develop systems,” says Dr Saraswat.

It is evident that this new indigenization push has been accelerated by the succession of procurement scandals in the MoD, most recently that of the AgustaWestland VVIP helicopters. At a DRDO conference in New Delhi on Mar 23, defence minister AK Antony make a strong pitch for indigenization.

nash · Post by **nash** » 13 Apr 2013 21:37

it is probably the reaction of action taken by arm export nations few days back.
Any way whatever is mention in this article, if implemented with complete conviction , then it would do wonder to MIC in India.

rohitvats · Post by **rohitvats** » 13 Apr 2013 22:57

arun wrote:
According to people familiar with the development, a consortium of Ashok Leyland and L&T emerged the lowest bidder two weeks ago when commercial bids for procurement of 100 multibarrel rocket launchers (meant to upgrade the BM21 rocket launchers) were opened. The value of the contract is about Rs 100 crore, according to industry sources.

<SNIP>

This explains the video on YouTube where the BM-21 Rockets were mounted on TATA platform and firing trial was being done.

So, IA is replacing the Russian truck with indigenous stuff. Good going. The rockets themselves were extended in range by DRDO some years back.

Kakkaji · Post by **Kakkaji** » 14 Apr 2013 05:28

India emerges as hub of German Cassidian's defence and security unit

Andleeb Shadman, 39, heads the defence engineering facility at Cassidian in India — the first fully owned defence-oriented engineering centre by any foreign company in the country, employing as many as 60 engineers, most of them Indians.

By then Cassidian had in place what no other foreign player had on Indian soil: a 100% owned defence engineering team that makes products for the local market. In the process, Shadman's boss Peter Gutsmiedl was promoted from being CEO of Cassidian's India arm to its first head of Asia-Pacific to push for more business in the region — and Shadman and team came up with new home-grown products.

In fact, such moves reflect Cassidian's larger game plan: to make the country a hub of its operations in the region, a fastgrowing market, comprising besides India — the world's largest importer of defence goods — high defence spenders such as Singapore, Malaysia, Indonesia, Australia and South Korea. The $10-bn Indian homeland security industry is expected to grow to $16 billion by 2016 and spend on local airport security is expected to touch $3.2 billion by 2016, growing at a cumulative average rate of 5%.

Of course, Gutsmiedl, too, has something to flaunt: the high-accuracy air pressure measurement system and structurally integrated antenna (see Two Indigenous Products). The former, according to both Gutsmiedl and Shadman, provides pilots with highly accurate altitude readings "thus contributing to a safe operation of the aircraft in reduced vertical separation minimum fly zones where aircraft are required to maintain a vertical separation of 1,000 ft". Moreover, the sensor can be retrofitted on any fighter and military transport aircraft, Shadman points out.

More products are in the pipeline, says Gutsmiedl without disclosing details. In the highly competitive defence environment it is natural for companies to keep their plans under wraps so as to secure deals when they are tendered.

Business of Purpose

But Gutsmiedl says the engineering centre serves multiple purposes. "It fits perfectly into our plans. The technical capabilities created at the centre will allow us to adapt products from our global portfolio to specific requirements of our regional customers and support our Asia-Pacific campaigns," he notes.

Heidenkamp feels that Cassidian's first-mover role gives it both advantages and challenges. "It presents itself to the Indian government as a proactive investor in the Indian defence market thereby making a point for sensible sponsorship by the government," he says, emphasisng that "but in the end, Cassidian has to deliver quality products and services in time and at acceptable cost".

He adds: "This is arguably a particular challenge for a first-mover like Cassidian, which will also be the first to figure out how best to operate in the complex Indian market and meet domestic and regional requirements. I think though that Cassidian — also benefiting from the experience and network of the EADS Group — is well-positioned to address this challenge."

A Question of Necessity

Cassidian's organic growth is of particular importance to EADS after the failed 25-billion merger with BAE Systems last year, says Heidenkamp. "Cassidian's success in creating an Indian hub for its operations will arguably depend on its ability to establish a sound working relationship with the Indian government and the armed forces. First and foremost Cassidian has to offer equipment and services that meet domestic military requirements and at a competitive price," he adds.

Gutsmiedl is optimistic: "On the one hand, it [the facility] supports Cassidian's global technology initiatives. Indian engineers enhance our competitive advantage worldwide. On the other hand, it gives us an edge in India: The engineering capabilities we have created here allow us to tailor products to specific requirements of our customer here, especially in areas such as unmanned aerial vehicles (UAVs), radar solutions and security systems." He says he is emboldened by the success of Cassidian's several projects in India. The Tetra radio network, which doesn't get jammed in disaster situations, was installed in Parliament by Cassidian.

Tetra handsets allow security personnel to access security information, including images of visitors and vehicles at the push of a button, and enhance access control. The 5.8-billion company has also been selected to deploy a Tetra communication system for the upcoming Jaipur Metro; it will support train dispatching, operations and management. Besides, Cyberabad Police operates a Tetra network supplied by Cassidian. Worldwide, Cassidian is also known for installing border, city and cyber security solutions.

Winds of Change?

In the defence business as well, Cassidian sees great opportunities in India at a time when the defence minister himself has begun to talk of "winds of change" indicating that the public sector monopoly alone won't work.

However, defence analyst and military historian Edward Luttwak is sceptical of such winds of change buffeting the way defence production is in done in India: "I see HAL [Hindustan Aeronautics Ltd] as the problem, a great big barge full of rotting fruit, as programmes are allowed to rot instead of being concluded. Problem is, the barge is full of people who are mis-employed," he alleges.

Gutsmiedl is unperturbed. "I am here for the long haul," he contends. "The strategic significance of India for Cassidian does not depend on the outcome of any single tender, even as large as MMRCA [medium multi-role combat aircraft, which it lost to its French rival Dassault]," he adds. It also plans to bring UAVs suited to local conditions to the country. Cassidian has clearly made some success thanks to its Bangalore initiative. But can such foreign companies sustain the momentum and crack the highly monopolised local defence sector? Luttwak remains pessimistic while many others aren't. Perhaps, all depends on Antony's promises of "winds of change" — which way they will blow.
India emerges as hub of German Cassidian's defence and security unit.

KEY PROJECTS IN INDIA

PAST: The Tetra radio network in Parliament

PRESENT: It has been selected to deploy a Tetra communication system for the upcoming Jaipur Metro; it will support train dispatching, operations and management Cyberabad Police operates a Cassidian-supplied Tetra network, which provides police with clear voice, data/image transmission and automatic vehicle location capability over an area of 3,600 sq km

NUMEROUS OPPORTUNITIES

- Homeland security - Cyber security - Combat aircraft - Professional mobile radio - Avionics for fighter aircraft and helicopters - Radar systems - Border control systems - Unmanned aerial vehicles

Long article, with useful information.

VinodTK · Post by **VinodTK** » 19 Apr 2013 02:10

US aims to expand arms sales to India by 'billions of dollars'

VinodTK · Post by **VinodTK** » 21 Apr 2013 04:48

New policy says Arms import to be last resort

The armed forces will have to tame their passion for imported weapons, with the defence ministry on Saturday announcing that foreign vendors will be the “last resort” for ramping up capabilities.

The defence acquisition council (DAC), headed by defence minister AK Antony, has stipulated that the armed forces would have to state reasons for rejecting the public and private sectors in favour of imports.

This is one of the most significant amendments to the government’s two-year-old arms procurement policy to empower India’s domestic defence sector and cut dependence on imports, following alleged kickbacks in the Rs. 3,760-crore VVIP chopper deal.
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Katare · Post by **Katare** » 21 Apr 2013 23:24

We like !!lost!! resorts

Austin · Post by **Austin** » 25 Apr 2013 08:19

Miffed Russia may stop arms sale to India

Russia has questioned New Delhi’s fairness and transparency in awarding multi-billion dollar military contracts, and warned that it may have to reconsider doing business with India.

“We know what gimmicks are used to manipulate deals,” Russian ambassador to India Alexander Kadakin told HT in an exclusive interview, adding that his country may not bid for Indian military tenders in the future. “Sometimes, terms of tenders are crafted specifically to get the required results.”

The statement comes in the wake of Russia losing ground in the Indian arms market in the past few years, with international rivals winning tenders to supply modern fighter jets, mid-air refuellers, heavy-lift helicopters and attack choppers to the Indian military.

Russia’s current defence portfolio in India is worth $20 billion ( Rs. 1,08,000 crore).

But such outcomes have weakened the standing of India’s oldest and largest arms supplier.

Israel, the second largest defence supplier to India, has bagged business worth more than $10 billion ( Rs. 54,000 cr) in the past 10-12 years. The US, currently at number three, could overtake Israel if India chooses to place some follow-on orders for platforms already contracted.

Instead of tenders, Russia now wants to sell military equipment to India directly through government-to-government deals, Kadakin said.

India has ordered equipment worth $8 billion ( Rs. 43,200 crore) from the US in the past five years through Washington’s foreign military sales programme, a government-to-government method for selling US-built platforms.

“If we emerge number two, it doesn’t mean our platform is any worse. But it sends out that impression and causes damage to our reputation,” Kadakin said. He added that Russia had stood by India when strictest sanctions were imposed on the country after it conducted nuclear tests.

Kadakin acknowledged that India, being “an emerging superpower”, had the right to build defence ties with other countries, but was quick to point out that unlike “some newly-acquired partners”, Russia had never hesitated to transfer the most sensitive defence technologies to India.

“Name a country that will lease you a nuclear submarine. Will the Americans, the British or the French lease you such a platform?” Kadakin asked, referring to the Akula-II nuclear-powered attack submarine leased to India by Russia last year. “This is the unique character of our privileged strategic partnership. Your people have to realise this.”

Avarachan · Post by **Avarachan** » 25 Apr 2013 10:12

What's puzzling about that statement by the Russian ambassador is that supposedly, the IAF wasn't keen on the Mig-35 even taking part in the MMRCA competition. It was the Russians who insisted. (Sorry, I can't find the link.) One of the primary reasons for the MMRCA was to diversify India's fighter-jet fleet beyond Russian equipment. (The IAF's cutting-edge platforms for the next 40 years will already be Russian--the MKI and the PAK-FA/FGFA.) The IAF, for understandable reasons, didn't want to put all of its eggs in the Russian basket by giving them the MMRCA contract, as well.

I agree, India should take care not to embarrass Russia unnecessarily. But Russia should also be reasonable regarding India's concerns.

Singha · Post by **Singha** » 25 Apr 2013 10:19

they are charging a very steep fee for the akula lease ... its not free .... sure I agree nobody else will do it but they are well compensated by the lease fee and the kings ransom of the AG deal and talwar class deal..this has given them money to revitalize their moribund shipyards and prepare for new construction.

Austin · Post by **Austin** » 25 Apr 2013 10:42

Avarachan , The IAF was keen no Sukhoi takes part as Su wanted to participate with Su-35 for MMRCA and IAF forbid it being on heavy class.

Regarding the ambassador statement its true that certain specs were designed to acquire certain class of platform but its India prerogative as its our money , Russia cannot veto what we can/should purchase.

Beyond Akula lease the Amb is not talking of the Elephant in Room ie. ATV help that Russia is providing to India .......so it boils down to perception ....Nayi Delli has to balance on many front keeping its interest in mind.

Austin · Post by **Austin** » 29 Apr 2013 15:47

Funds Spent on Procurement of Weapons

Austin · Post by **Austin** » 29 Apr 2013 15:53

Defence Procurements

So far only one contract, i.e. supply of Basic Trainer Aircraft, has been concluded using the Total Cost of Acquisition model under the LCC approach.

The Total cost of Acquisition (TCA) model consists of all major elements that contribute to the cost of acquiring, maintaining and operating the equipment over its life and which are determinable, quantifiable, verifiable and relevant. These elements are:

(i) Direct Cost of Acquisition.
(ii) Cost of Total Technical Life (TTL) Based Reserves.
(iii) Cost of Time Between Overhaul (TBO) / Mean Time Between Failures (MTBF) based reserves.
(iv) Cost of Intermediate Level Servicing.
(v) Cost of Depot Level Servicing.
(vi) Operating Cost.
(vii) Cost of Transfer of Technology (ToT).

Of these, cost of ToT and cost of TBO / MTBF based reserves are used, where applicable. These firmed up elements of TCA are stated up-front in the RFP.

(b) The methodology has been approved by the Defence Acquisition Council.

(c) This information is not maintained by the Ministry of Defence.

(d) Out of various elements that constitute the Total Cost of Acquisition (TCA), only the Direct Acquisition Cost is quoted on a firm and fixed basis for the period of delivery and this is reduced to its Present Day Value (PDV) using the Discounted Cash Flow (DCF) technique. All the other elements covered under TCA are also brought to their Present Day Value by (i)escalating the costs quoted in the bid using indices based formula, and (ii)applying Man-Hour Rates and Fuel Cost as prevalent in the country as on the date of opening of the bid.

(e) The actual fuel consumed during a standardized flight profile (which is stated upfront in the RFP) flown during the Field Evaluation Trials is measured and used to compute the operating cost. This fuel consumption is also accepted by the Original Equipment Manufacturer (OEM) and no notional arbitrary fuel figure is used.

This information was given by Defence Minister Shri AK Antony in a written reply to Shri Kalikesh N. Singh Deoin Lok Sabha today.

VinodTK · Post by **VinodTK** » 17 May 2013 04:45

Russia may help India arm itself

he Russian company “Rosoboronexport” will compete with the Indian “Larson&Tourbo” for the right to supply the Indian army with 100 self-propelled howitzers. According to estimations, the sum of the contract will be 20 bln rupees, which is $364 mln.

“Rosoboronexport” is also taking part, together with several Indian and foreign companies, in another tender, this time for supplying the Indian army with more than 100 air defense systems.
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akimalik · Post by **akimalik** » 24 May 2013 13:26

RIL bags strategic military aviation tie-up with Boeing

Reliance Industries Limited (RIL) has bagged a strategic military aviation tie-up with the leading US aerospace company, Boeing, in the field of offsets. That means Boeing will be sourcing 30% of its components worth hundreds of crores of rupees from the RIL.

In the context of the RIL-Boeing MoU, sources said the Defence Ministry has on order eight Boeing P8I aircraft and the first one is expected to arrive this year. It is estimated that eventually more than 20 P8Is could be required to protect India’s vast 7517-km coastline.

Industry sources said the RIL’s aerospace venture is likely to spend over $1 billion in foreign aircraft components manufacturing area. It is planning to hire over 2,000 engineers over the years. The margin of profit in this high technology oriented industry is huge.

VinodTK · Post by **VinodTK** » 01 Jun 2013 06:52

From Hindustantimes : US to supply IED detectors to India

The May 25 Maoist attack using a 25-kg explosive device in Darba has added impetus to the UPA government's plan to acquire state-of-the-art ground penetration radars from the US to detect buried improvised explosive devices (IEDs ) in low-intensity conflict zones.

The acquisition of ultra wide band microwave radars, which can detect a seven-feet underground IED, was discussed during the Indo-US homeland security dialogue last week, home ministry sources said. "Washington is more than willing to sell the high-tech radars to New Delhi for use by security forces," they added. Delegates to the meeting were led by home minister Sushilkumar Shinde and his American counterpart Janet Napolitano.

While Indian para-military forces still use hand-held metal detectors or mine sweepers to open roads for traffic in insurgency-affected zones, the US radar -- mounted on an IED-proof vehicle (like Husky or Stryker) -- scans the road ahead, jams the device's frequency and gives a 3D picture of the buried ordnance.
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khukri · Post by **khukri** » 07 Jun 2013 21:07

Extract from report on robotic systems, Israeli ISDEF 2013 exhibition:

Another new payload coming from the Netherlands is the Acoustic Multi-Mission Sensor (AMMS) a patented Acoustic Vector Sensor developed by Microflown-Avisa. At a weigh of 70 grams the sensor can be mounted on the tip of a UAV, detecting gunshots, RPG firing or rocket launches from an altitude of about couple of hundred meters and at tactically effective range. The company is already delivering 3 Acoustic Multi-Mission Sensor systems (AMMS) equipping Dutch military units and is also in the process of adapting the system into vehicular sensors.

An integration of Acoustic Vector Sensor on an Unmanned Aerial Vehicle will son begin in India, under cooperation between Microflown-Avisa and an Indian military research agency. (this was the caption under a picture on the defense update website)

This configuration will provide a low-profile sensor, offering many advantages compared with existing high-profile acoustic sensors. Another development, currently at the early stage with the an Indian research agency, will integrate the AVS into mini UAVs.

Austin · Post by **Austin** » 09 Jun 2013 10:40

IAF to close deals worth $25 bn this fiscal including MMRCA, Boeing Apache Longbow helicopters

Deals worth $25 billion are expected to be closed by the Indian Air Force (IAF) this fiscal, its largest ever procurement. These include the long-awaited $20-billion 126 MMRCA, three C-130J special-operations planes (as a follow-on order), 22 Boeing Apache Longbow strike helicopters ($1.2 billion), 15 heavy-lift Boeing CH Chinook helicopters ($1.4 billion) and six European A-330 MRTT ($2 billion) mid-air refuelling tanker planes.

Air Chief NAK Browne said: “IAF is witnessing an unprecedented phase of modernisation. Capability enhancement can be seen across the spectrum. Five major deals estimated at $25 billion are slotted to be closed this fiscal.”

Sources told FE: “Talks are on for a follow-up order for six more C-130J from Lockheed Martin. Orders for three have been placed. Also, the IAF is expected to get 10 Boeing C-17 Globemaster III heavy-lift aircraft at $5 billion. The delivery of the aircraft is scheduled between June 2013 and June 2015. Like in the case of C-130J, IAF also plans to increase its C-17 fleet by 10 more such planes.”

The IAF is also inducting 139 Russian Mi-17 V-5 medium-lift helicopters for an estimated $2.4 billion. The workhorse Mi-17 has been in service for decades, but the new-model, V-5, is a vastly superior machine with new engines, rotor blades and avionics. An IAF order for 80 Mi-17s is already being delivered, which is likely to be followed by an order for 59 more.

As part of its modernisation plans, earlier in May, the ministry of defence issued a Request for Proposals (RfP) to eight foreign aerospace vendors, inviting tenders for co-producing 56 medium transport aircraft to replace the aging fleet of Hawker Siddeley 748M Avro aircraft. The deal could be worth about R28,000 crore.

Among the companies invited to bid are Boeing of the US, Ilyushin of Russia, Antonov of Ukraine, Franco-German consortium EADS and Alenia Aeromacchi of Italy. As reported earlier by FE, the pre-bid meeting will take place on June 19. The MoD has given bidders five months to choose and tie up with an Indian Production Agency (IPA) and submit their “techno-commercial proposals”.

Of the total capital outlay of R86,741 crore for new buys this fiscal, finance minister P Chidambaram has allocated the maximum for IAF (R38,558 crore), followed by Army (R17,822 crore), Navy (R9,626 crore) and Defence Reseach and Development (R5,058 crore).

abhik · Post by **abhik** » 09 Jun 2013 11:16

^^^
Rather optimistic, it was reported earlier that the capital outlay for new deals in the budget is hardly enough to close any of the deals let alone all of them.

Austin · Post by **Austin** » 09 Jun 2013 13:38

DRDO to Develop Robotic Soldiers to Deploy in Warfare

With futuristic warfare in mind, India is working to develop robotic soldiers as part of efforts to boost unmanned fighting capabilities, joining a select group of countries in this endeavour.

Under the project being undertaken by DRDO, robots would be developed with very high level of intelligence to enable them to differentiate between a threat and a friend.

These can then be deployed in difficult warfare zones, like the Line of Control (LoC), a step that would help avert the loss of human lives.

"We are going to work for robotic soldiers. We are going to look for very high level of intelligence in it than what we are talking today... It is a new programme and a number of labs are already working in a big way on robotics," DRDO chief Avinash Chander told PTI in an interview.

The newly-appointed DRDO chief listed the project for development of robotic soldiers as one of his "priority thrust areas" saying that "unmanned warfare in land and air is the future of warfare. Initially the robotic soldier may be assisting the man."

He said in the initial phase of the project, the robotic soldier would be required to be told by the human soldier to identify an enemy or a combatant but "slowly in due course of time, the robotic soldier would be at the front end and the human soldier would be assisting him."

Chander said the need for a robotic soldier is felt to save precious human lives and already robots are used in areas where humans do no want to venture such as defusing bombs or getting inside a high-radiation territory.

"Robotic soldier is one step further. It will have multiple technologies in terms of communication with team members, ability to recognise an enemy," Chander said.

"Today, you have neural networks, whenever the soldier tells him (robotic soldier) that this is a human solider, he will derive his own logic as to what is the difference between him and others (civilians). That learning process will keep building up," he said.

Asked if it would be capable of being deployed in areas such as the Line of Control, Chander said, "In due course of time but not before a decade in any way."

He said many new technologies have to be developed such as "miniature communication, materials, cognitive technologies, self-learning processes and interaction with human."

Chander said "already five to six countries are actively working. They have not yet developed it fully but they are in fairly advanced stages. This is one of my priority areas."

merlin · Post by **merlin** » 10 Jun 2013 13:06

abhik wrote:^^^
Rather optimistic, it was reported earlier that the capital outlay for new deals in the budget is hardly enough to close any of the deals let alone all of them.

That is assuming that you pay the entire money up-front for any deal. Far from the case.