Military Acquisitions, Partnerships & Developments

Vipul · Post by **Vipul** » 04 Mar 2015 03:23

Its a shameful for BJP if Indian Defence spending goes down as a percentage of GDP, especially so when there is not a sizeable increase in the size of the overall GDP.If we factor in inflation, then the Defence Budget for this year is actual lower then the Budgetary allocation over last year. The 11% increase in comparison to last years revised estimates is just an attempt at Delhi Statistics to make it look as a 11% hike.
All these years we were blaming the UPA and Italian Congress for disregarding our Defence preparedness but for me BJP is loosing its luster all too fast.Very shameful indeed if it is not even able to spend last years full allocation.

fanne · Post by **fanne** » 04 Mar 2015 03:35

Who is 'it' who was unable to spend the fund? Who should be blamed for this?
Politics/party do play a role, but most blame goes to the forces. Look at how Navy solved its problem (by returning less). It needed planes for it carriers, it ordered 48 Mig 29K, and supports NLCA from its own budget, it returns less of it every year. Compare that with IAF, it would not give extra money for LCA/HTT-40 from its budget, rather it will return it back as unused fund.

brar_w · Post by **brar_w** » 04 Mar 2015 06:17

Austin wrote:http://www.janes.com/article/49660/indi ... et-by-10-9

India announced a core defence budget of INR2.5 trillion (USD41.1 billion) for fiscal year 2015-16 on 28 February.

Full article -

India announced a core defence budget of INR2.5 trillion (USD41.1 billion) for fiscal year 2015-16 on 28 February.
The figure is a 7.7%, or INR1.8 billion, increase over the initial 2014-15 budget announced by the previous Congress Party-led government in February 2014, or a 10.9% increase over budget figures revised by the Ministry of Finance over the past year.
Total defence spending, including military pensions expenses, will rise to INR3 trillion.
The first full budget presented by Modi's government since it took power in May 2014 saw core defence spending decline to 1.75% as a percentage of GDP for the second consecutive year.
Although total defence spending will rise by around 5.5% in real terms compared with the revised budget for 2014-15, senior service officers have argued that the increase will be rendered "ineffectual" by rising inflation and the decline in the value of the rupee against the US dollar, leaving insufficient cash for long-delayed military modernisation plans.
The officials told IHS Jane's that this year's defence budget was among the lowest against GDP since 1962, when India lost a four-week war against China over a border dispute that remains unresolved.
The budget's revenue expenditure of INR1.5 trillion earmarked for salaries and operational expenses outstrips the INR945.9 billion capital or modernisation allocation.
Of this amount, the Indian Army gets INR215.7 billion, the Indian Air Force (IAF) INR314.8 billion, and the Indian Navy INR239.1 billion.
The IAF's allotment is INR3.4 billion less than the initial budget for FY 2014/15, even though it is expected to acquire 22 Boeing AH-64E Apache attack helicopters, 15 Boeing CH-47F Chinook heavy-lift helicopters, and six Airbus Military A330 tankers.
It is also in advanced negotiations to procure 126 Dassault Rafale fighters and will need to pay a hefty 15% advance if the deal is signed in FY 2015/16, as the IAF anticipates.
The INR176.2 billion balance of the capital budget is divided between tri-service procurement and construction activity, modernising the Ordnance Factory Board, expanding the defence capabilities of India's rail network, and augmenting defence research and development (R&D).
There has, however, been an exponential increase in fund allocation for the indigenous manufacture of prototype military equipment from INR5 million in FY 2014/15 to INR1.4 billion. This ties in with the new government's policy of locally sourcing its materiel requirements in order to reduce imports, which average around 70%.
Military officials said this enhanced outlay is to cater largely to two wholly indigenous Indian Army programmes: the Battlefield Management System and the Tactical Communication System, both of which are led by Indian companies. However, this funding represents less than 1% of the capital budget.
In presenting the budget, finance minister Arun Jaitley reiterated the government's policy of achieving self-sufficiency in its defence needs.
"So far we have been over-dependent on [materiel] imports, with its attendant unwelcome spin-offs," he said.
The government, he added, would encourage Indian-controlled entities to manufacture defence equipment not only for domestic employment but also for export.

Analysis

Underspending of the Ministry of Defence's (MoD's) capital budget continues to be a significant issue, with government figures suggesting that related spending has been revised downward by around 13.3% during the course of 2014-15, writes Craig Caffrey . Around 10.4% of funding allocated for procurement in 2014-15 is expected to be removed from the budget.
INR755 billion was allocated under the initial budget. However, figures released as part of the 2015-16 budget process show that only around INR676.3 billion is expected to be utilised. Capital budget underspend has been a recurring issue for the MoD, with the armed services having typically utilised only around 90% of allocated funding on average over the past 10 years.
Similarly, while R&D funding will increase by 4.3% to a record level of INR145 billion, budget documents show that the MoD was unable to fully utilise the additional funding provided for the purpose in 2014-15.
When the budget was initially released in February 2014 INR59.8 billion was allocated for R&D within the capital budget. This figure was subsequently increased to INR93 billion by Modi, in line with attempts to develop India's defence industry.
Figures for the revised 2014-15 budget show that only around INR71.5 billion is actually expected to be spent, with the INR77.9 billion allocated for 2015-16 representing a relatively modest increase to this total.
An additional INR1.4 billion will be invested in prototype development, while a further INR65.7 billion will be allocated from outside the capital budget through India's state-run R&D organisations.

Austin · Post by **Austin** » 04 Mar 2015 12:52

India Explores New Helicopter Options with Russia

At the recent Aero India show in Bangalore, Russian Helicopters held further talks with Indian officials about possible licensed production of the Mi-17 and Ka-226, following the agreement in principle by the heads of state last December. According to authoritative sources, the Russian side also offered to supply “an improved version of the Ka-31 with higher performance.” The Indian navy operates approximately a dozen of these ship-based airborne early-warning and naval surveillance rotorcraft.

“We and our Indian partners are in discussions on a follow-on contract for one more batch of the Mi-17V5,” said Alexander Mikheyev, general manager of Russian Helicopters. But, he added, “The Mil design house is working on new versions of the Mi-17 with improved hot-and-high performance, the key to further sales into India.” The company has already delivered 121 Mi-17s to India. The original agreement signed in 2008 specified 80 aircraft, but the Indians have since exercised three options, bringing to 151 the current total to be received. These helicopters are delivered in a customized Indian version, including a glass cockpit from Russian Avionics. India has more than 300 Mi-8/17s.

The Indian defense ministry was briefed on the new version of the Mi-17, designated Mi-171A2, during Aero India. The prototype has been flying since last November. Russia demonstrated the Klimov VK2500P turboshaft with Fadec and surge-protection system. The manufacturer claims the Klimov engine is asolely Russian product with no Ukrainian-made parts, and is pitching it as an alternative to the Ukrainian-made TV3-117VMAs that power the bulk of Mi-17s produced so far. Earlier versions of the VK2500 are already in use in India on some of the Mi-17s.

Although no firm agreement on licensed production was concluded, Russian arms sales agency FSVTS announced during Aero India that Russian companies are supplying equipment and tools to Chandigarh airbase, as part of an offset agreement to create an Indian base for maintenance of the Mi-17’s avionics, engines and rotor systems. The location will eventually become a full-fledged service center.

KiranM · Post by **KiranM** » 04 Mar 2015 15:37

^^^ With 300+ Mi-8/17s in IAF how will they be used for supporting IA? Will they move men and material to IA staging areas and AAC choppers moving them to FEBA? Like a hub and spoke model?

Prasad · Post by **Prasad** » 04 Mar 2015 23:06

No news but here about Reliance acquiring pipavav defense?

JTull · Post by **JTull** » 05 Mar 2015 02:30

They've only acquired 18% stake.

Vipul · Post by **Vipul** » 05 Mar 2015 05:31

It was to be bought by Mahindra with Management control. Then Hero Group made a desperate bid for it, even agreeing to be just investors and let Nikhil Gandhi have Management control. Now this news about Reliance acquiring the 18% stake. Per their agreement the stake will be scaled up to 25.1% and follow that up with a open public offer.

Nice to see big corporates making a serious pitch to get into manufacturing of Defense Goods. DRDO bosses having chalta hai attitude need a big kick to their butts.

Shrinivasan · Post by **Shrinivasan** » 08 Mar 2015 10:52

Vipul wrote:...DRDO bosses having chalta hai attitude need a big kick to their butts.

What is the poit of this comparison and DRDO a bashing? Pipavav is a ship yard, comparable to CSl or MDL or GRSE, a private shipyard... DRDO a is not a manufacturer... It is a design house which in the Naval space is working in tandem with IN. It looks like you have some beef with the quality of Locally made defense products... The fault for that lies with our DPSUs and not DRDO? DRDO develops a product, tests it, proofs it, once the armed forces accept it... Which takes ages as our forces constantly look for unobtainiums and then pass on the design to these DPSUsfor manufacture.

This is again not DRDO's will and wish, but an GPI/MODI policy... Left to itself, DRDO would pass on the tech to. Private player and reap royalties...

Rahul M · Post by **Rahul M** » 08 Mar 2015 11:01

forgive the intrusion but this is important and I want to get as many eyeballs as I can.

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If you are knowledgeable about Indian military and/or have HTML CMS skills, you can help BR.

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Austin · Post by **Austin** » 11 Mar 2015 19:16

Longish read

For the armed forces, Budget brings no cheer

Austin · Post by **Austin** » 13 Mar 2015 16:04

Saws Parikar conference today at India Today .....He mentioned that he did evaluation to buy arms for the next 6 years and he says there would be many new purchases possible even with current budget.

He mentioned money is there and money is really not a concern , Spoke about hard negotiations to get more from the deal.

Kakkaji · Post by **Kakkaji** » 14 Mar 2015 08:33

Austin wrote:Saws Parikar conference today at India Today .....He mentioned that he did evaluation to buy arms for the next 6 years and he says there would be many new purchases possible even with current budget.

He mentioned money is there and money is really not a concern , Spoke about hard negotiations to get more from the deal.

Parrikar promises a lot, but has so far delivered little.

VinodTK · Post by **VinodTK** » 16 Mar 2015 06:02

In first foreign visit, Manohar Parrikar to push Korean firms to Make in India

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Sources said that the Indian side is keen on discussing projects that will involve Korean companies setting up shop and producing defence related equipment. Among the projects that are likely to be discussed during the visit is the aircraft trainer that Korea makes for its armed forces as well as exports. Another major area is cooperation in the navy's plans to procure six new minesweepers. The Korean minesweeper is considered to be one of the best in its class, but a plan to buy it directly was shelved due to discrepancies in the bidding process last year.

The ships will now be built at the Goa Shipyard with possible assistance from Korea. Officials said that India is also keen on studying the Korean T 50 Golden Eagle fighter aircraft programme for possible areas of cooperation and sharing of technology for similar Indian initiatives. Korean firms are also participating in multiple ventures for adding new artillery guns for the Indian Army. It is also bel i eved that the Korean side is keen on a trilateral engagement with India and the US, something along the lines that New Delhi has with Tokyo. Parrikar's visit next month is likely to be followed up by PM Modi's visit in May.

Austin · Post by **Austin** » 16 Mar 2015 11:05

India becomes world’s largest arms importer in 2010-2014 — study

Singha · Post by **Singha** » 16 Mar 2015 12:44

now that you reminded me, what happened to the mega artillery deals? is anything decided ?

Kartik · Post by **Kartik** » 18 Mar 2015 09:20

Israel India - IAI courts India with Offsets, Tech Transfer

Yagnasri · Post by **Yagnasri** » 18 Mar 2015 09:45

Is Indian AIP to be fitted on Scorpene boats tested? It is supposed to be done last month.

Vipul · Post by **Vipul** » 18 Mar 2015 15:30

Test bed trials on land of the DRDO developed AIP at ordnance factory in ambarnath was supposed to start some time back, how long it will take to finish the testing will be difficult to guess for anyone.

Vipul · Post by **Vipul** » 19 Mar 2015 07:51

ThyssenKrupp ready to transfer knowhow to India for submarines.

The ‘Project 75’ for the construction of six submarines for the Indian Navy has been in the pipeline for long time now. Dr Gurnad Sodhi, Managing Director, ThyssenKrupp Marine Systems (TKMS) India, which is one of the companies in fray for the order, talks about what the company has to offer to India.

Q. What has prompted TKMS to participate in one of the lndia’s largest Defence tender for the construction of six submarines under Project 75 India (P-75 (I) for the Indian Navy?
A. The Ministry of Defence is expected to issue the P-75 (I) RFP for which we are planning to offer the Type 214 submarine, which combines best-in-class underwater endurance and diving depth. Besides its highly regarded anti-surface and anti-submarine operations, intelligence, surveillance and reconnaissance capabilities, the HDW Class 214's proven fuel cell-based Air Independent Propulsion system is the best available in the market and offers exceptional operational advantages to the Indian Navy.
Since the Indian Navy has been our customer for over 30 years, we have established a strong working relationship with them and are in a position to fully satisfy their requirements.

Q. Has TKMS short-listed any Indian shipyard for collaboration or alliance?
A. A high-level committee has been formed by the MoD and is currently evaluating the Indian shipyards. It is expected that this Committee will submit its report shortly.
TKMS respects the decision by the MoD in short-listing the most capable shipyard(s) without any bias. Thereafter, we will commence our negotiations with the shortlisted shipyard(s).

Q. Will TKMS adhere to India’s new policy of ‘Make in India’?
A. We are committed to the ‘Make and Made in India’ policy. This would encompass inter alia robust Transfer of Technology (ToT), training, meeting the offset obligations etc. TKMS is willing to bring its expertise in cutting-edge areas to India and co-develop solutions with local partners to meet the country's needs. Besides the most capable submarine, best value for money and a strong industrial partnership, TKMS is offering extensive ToT to India.

Q. Could TKMS throw some light on the present status of its four submarines which were commissioned in the late eighties and early nineties?
A. TKMS has been a trusted partner of the Indian Navy for over 25 years. The Indian Navy has operated successfully the HDW Type 209 since their induction in 1986. The very fact that INS Shalki and Shankul were made in India by an Indian Shipyard under a technology-transfer agreement is proof that TKMS has been supporting India’s indigenous defence industry for over a quarter of a century. We can proudly claim that all our four submarines are performing well without any inherent problems.

Q. Are there any plans to upgrade the existing HDW/Shishumar class submarines with the Indian Navy?
A. Yes, we are currently exploring opportunities to upgrade the Shishumar class Type 209 submarines with the Indian Navy, for lifetime extensions. TKMS has successfully demonstrated in several countries, how substantial ToT can be implemented in the upgrade of the HDW Type 209s.

Q. Is the Indian Navy also contemplating upgrading the weapon suite on the existing German submarines?
A. Yes, TKMS is in discussions with the Indian Navy about this. We have the capacity to integrate any weapon system that is selected by the Indian Navy into the existing Shishumar class submarines. In fact, such customised integrations have been successfully carried out by TKMS in similar type of submarines for many other Navies of the world.

Q. What other strategic benefits does TKMS offer to India?
A. We can offer to the Indian Navy the world’s best, cutting-edge technologies in the form of modular construction, stealth technologies and integration of diverse weapon systems, including Brahmos missiles, besides providing high-quality training to both shipbuilders and crew in all disciplines.

Kakkaji · Post by **Kakkaji** » 21 Mar 2015 06:17

Defence Minister Manohar Parrikar says no decision has been taken on purchase of US 2i amphibian aircraft from Japan

Kakkaji · Post by **Kakkaji** » 21 Mar 2015 06:19

Government may shelve Indian Air Force's $2 billion Avro replacement project

VinodTK · Post by **VinodTK** » 25 Mar 2015 04:24

India Said to Plan Army Drone Exports to U.S. in Role Reversal

(Bloomberg) -- India, the top global arms importer, is in talks to export drones and spy equipment to the U.S. and its allies as the world’s largest democracies boost security ties, two Indian defense officials with knowledge of the matter said.

AeroVinronment Inc.’s Raven drone and Lockheed Martin Corp.’s ‘Roll On-Roll Off’ kits, which turn jumbo transport jets into surveillance aircraft, are set to be made in India and sold overseas, according to the officials, who asked not to be identified because the discussions were confidential.

The drones and surveillance hardware are two of four defense technologies the U.S. agreed to jointly produce in India, a deal reached during President Barack Obama’s trip to New Delhi in January. India’s market for both items is limited, so exports would make production viable, the officials said.

The U.S. is boosting joint production with India to profit from its $150 billion modernization plan and help it counter China’s growing military capabilities. The deals also help Prime Minister Narendra Modi create manufacturing jobs and reduce India’s reliance on arms imports.

The arrangement is “a win-win for both India and the U.S.,” said Surya Gangadharan, a security analyst in New Delhi who has written about India’s defense industry for more than 20 years. “As long as we can leverage this relationship to counter China in whichever way possible, it is going to be useful.”

The Raven is a lightweight, hand-launched drone used by about 20 countries for intelligence gathering. While India has just six C-130J transport aircraft, more than 300 of the planes are in use in about a dozen countries.
Joint Production

The joint production stems from a 2012 agreement, now referred to as the Defense Trade and Technology Initiative, to make it easier for the U.S. and India to seal arms transfers. The nations haven’t released many details on the manufacturing deals, including how many units will be produced and when they will be ready for delivery.

Nungsanglemba Ao, a spokesman for India’s Defense Ministry, declined to comment on the possibility of exports being permitted under the India-U.S. deal. Mark Boyer, external media relations officer for AeroVironment, didn’t respond to e-mails seeking comment.

Lockheed is ready to export if necessary, though couldn’t comment on the specifics of any initiative until the governments have agreed, India Chief Executive Phil Shaw said by e-mail.
Jet Engines

A Pentagon spokeswoman referred to comments made last month by Frank Kendall, a U.S. under secretary of defense who has made five trips to India in the last two years. The initiative “aims to promote science and technology cooperation at the research, co-development, and co-production stages, and hopefully even defense exports from both of our countries at some point,” he said in New Delhi on Feb. 26.

India last year allowed more foreign investment in defense and started prioritizing purchases of locally made weapons. It plans to spend $150 billion by 2027 on new missiles, artillery, fighter jets, submarines and defense equipment.

During Obama’s visit, the U.S. and India also agreed to jointly produce mobile electric hybrid power sources that may be used in submarines, and protective clothing for soldiers in battlefields with nuclear, biological or chemical weapons. They also are considering sharing technology on aircraft carriers and jet engines.

India accounted for 15 percent of global weapons imports from 2010 to 2014, followed by China at 5 percent, according to data from the Stockholm International Peace Research Institute. Russia provided 70 percent of India’s weapons in that time, with the U.S. at 12 percent.

India now exports only a small amount of defense goods to neighboring countries, including a home-built warship to Mauritius last year.

Kakkaji · Post by **Kakkaji** » 28 Mar 2015 06:24

Copter deal: India seeks extension of price validity

NEW DELHI: The Defence Ministry has again sought extension of the validity period for the price quoted by Boeing for the USD 2.5 billion deal for 22 Apache and 15 Chinook heavy-lift helicopters.

"The Defence Ministry is processing the deal and it will then be taken up in the Cabinet Committee on Security. Since, the deadline for the price quoted ends soon, an extension has been sought," the defence sources said.

Kakkaji · Post by **Kakkaji** » 29 Mar 2015 00:57

Decisions taken by Defence Acquisition Council today March 28, 2015

DAC, chaired by Defence Minister Manohar Parrikar, also approved the purchase of 1,512 mine ploughs for T90 tanks for Rs 710 crore and 30 weapon-locating radar for Rs 1,605 crore.

The top-decision making body in the Defence Ministry also approved certain deviations in the offset policy for the purchase of harpoon missiles for the navy, which had been sanctioned earlier.

A fresh Request for Proposal (RFP) for 220 Truck-Mounted Lifting Device (TMLD) was also approved by DAC at a cost of Rs 24 crore.

Vipul · Post by **Vipul** » 31 Mar 2015 06:28

Centre may tweak defence procurement policy.

To make Prime Minister Narendra Modi’s ‘Make in India’ programme saleable for the defence sector, the government is considering tweaking the Defence Procurement Procedure.

The Centre may allow an option for those interested to migrate from their offset obligations to ‘buy and make’, an official source said.

Indications are that under the revised norms, the value of foreign direct investment (FDI) from the original equipment manufacturer and the eligible products being manufactured in India will be counted against the offset obligations. Offsets were introduced by the UPA erstwhile government in 2005 with the objective of developing a defence industrial base.

The offset obligation requires foreign companies selling defence equipment worth more than ₹300 crore to India to source 30 per cent of the value of a contract locally.

However, according to industry trackers, the offset policy has failed to deliver. Data indicates that of the 24 contracts signed between 2007 and 2013, total offset obligations were close to ₹30,000 crore. Sources said that 90 per cent of these contracts have under-performed their targets and annual offset obligations have remained unfulfilled. In fact, the Ministry of Defence has imposed penalties on various original equipment manufacturers.

Another reason cited for offsets attracting the government’s attention is the higher costs that the Ministry ends up incurring on capital acquisitions with offset provisions.In most cases it is seen that the negotiations and finalisation of offset contracts is taking longer than for the prime contract itself, the official added.

Increasing FDI in the defence sector is another key area for the Government.

According to Department of Industrial Policy & Promotion (DIPP) Secretary Amitabh Kant, defence manufacturing is expected to provide business worth $250 billion in the next 7-8 years. “How quickly we can transform ourselves into a defence manufacturing country is a key challenge for India,” he said, speaking at a seminar organised by industry body Assocham on Monday. The Centre recently increased the FDI cap on the defence sector to 49 per cent from 26 per cent, and Kant said that for specific cases it could also be increased to 100 per cent.

Cybaru · Post by **Cybaru** » 31 Mar 2015 20:30

Kakkaji wrote:
DAC, chaired by Defence Minister Manohar Parrikar, also approved the purchase of 1,512 mine ploughs for T90 tanks for Rs 710 crore and 30 weapon-locating radar for Rs 1,605 crore.

That is excellent news!

Karan M · Post by **Karan M** » 31 Mar 2015 20:54

Finally.

Singha · Post by **Singha** » 31 Mar 2015 21:59

Was this the 28 you talked of a decade ago or a new order?

Cybaru · Post by **Cybaru** » 31 Mar 2015 22:32

^^ Oh sarcy you!

. I am sure they are new Karan right?

vaibhav.n · Post by **vaibhav.n** » 31 Mar 2015 22:34

At less than 10 Million $/system this is excellent bang for the buck. The 12 Firefinders came for around 15 Million/system, i remember asking.

You know LRDE boys have built up a complete portfolio all by themselves, atleast the DRDO Missile chaps had ISRO to lean onto during the initial years....

Cybaru · Post by **Cybaru** » 31 Mar 2015 22:42

This is probably the 285$ million dollar tender that was floated some time back. 9.5$ is not bad for each unit.

VinodTK · Post by **VinodTK** » 01 Apr 2015 03:43

Saab Grintek Defence receives R940 million orders for Indian self-protection systems

Saab has received large follow-on orders for integrated self-protection systems for installation on the Indian Army and Air Force’s Dhruv Advanced Light Helicopters in deals worth approximately $78 million.

The Dhruv’s manufacturer Hindustan Aeronautics Limited (HAL) ordered additional Integrated Defensive Aids Suites (IDAS), which warn against radar, laser and infrared (IR) guided threats and automatically deploy appropriate countermeasures. IDAS has been designed for both helicopters and fixed wing aircraft. Saab also produces protection systems for both land and naval applications.

Production of the IDAS system will take place at Saab Grintek Defence’s facilities in Centurion, with deliveries set to take place between 2015 and 2018. In addition to the production orders received, Saab also received orders for IDAS ground support and test equipment for the Dhruv programme. Chris Skinner, head of marketing and sales at Saab Grintek Defence, said that Saab and HAL are in talks over the production of IDAS components in India.

Anne Lewis-Olsson, Vice President Communication Sub Sahara Africa for Saab Grintek Defence, said the Indian order is huge for Saab Grintek Defence and will have good long-term implications for the company. She said it will also retain skills and competence in South Africa.

“This is the type of order that companies dream about,” Skinner said, adding that this will mean that production facilities will have to be expanded to accommodate. He expects Saab Grintek Defence to receive additional follow-on IDAS orders from HAL.

Saab has been awarded several follow-on contracts in the past, after receiving initial serial production orders in December 2008 worth $24 million. For instance, it received contracts worth $33 million in September 2013. However, the most recent orders are by far the largest from HAL, Skinner said, as the company speeds up helicopter production.

Micael Johansson, head of Saab business area Electronic Defence Systems said that, “the success of IDAS continues and we are proud that HAL and the Indian Armed Forces have continued faith in the IDAS system, of which this follow-on orders is a clear indication. It is a testimony of the effectiveness and reliability of the IDAS solution.”

“With these follow-on orders we continue to build on our very successful partnership with HAL and further establish Saab as a local partner to the Indian industry and as a supplier of high tech products and systems to the Indian Armed Forces”, said Lars-Olof Lindgren, head of Saab market area India.

Saab says IDAS has been chosen for many different airborne platforms, including the Saab 2000, Agusta-Westland A109, Super Lynx 300, Boeing CH-47 Chinook, Denel Rooivalk and Oryx, Eurocopter Cougar, Puma & Super Puma, NH Industries NH90, C-130 and L100 Hercules, and Sukhoi Su-30MKM.

The Indian Air Force (IAF) is receiving 54 Dhruvs to partially replace its approximately 65 HAL Chetak and 25 Cheetah light helicopters, while the Army is taking 105 under a $3.56 billion order placed in 2007. Over 150 Dhruvs have been delivered to military and paramilitary forces after delays, technical problems, crashes and maintenance issues. HAL is currently manufacturing the improved Mk III and armed Mk IV Rudra variants (half of Dhruvs built will be these armed versions).

HAL is also working on the indigenous Light Combat Helicopter (LCH), based on the Dhruv. The first LCH prototype made its maiden flight in March 2010 and the third in November 2014. Initial operational capability is expected by September this year. HAL will build 65 for the IAF and 114 or the Indian Army. Although Saab Grintek Defence is only producing IDAS suites for the Indian Army and Air Force Dhruvs at the moment, it will be bidding to supply the system on the Light Combat Helicopter.

Skinner told defenceWeb that SGD had also secured another order for IDAS from a European client and is working with major original equipment manufacturers like Airbus Helicopters. In addition to selling the system to clients around the world, Skinner said there are some customers who also want local production.

Karan M · Post by **Karan M** » 03 Apr 2015 19:00

Singha, am assuming its the same "28" order suitably rounded out to 30...

Karan M · Post by **Karan M** » 03 Apr 2015 19:01

vaibhav.n wrote:At less than 10 Million $/system this is excellent bang for the buck. The 12 Firefinders came for around 15 Million/system, i remember asking.

You know LRDE boys have built up a complete portfolio all by themselves, atleast the DRDO Missile chaps had ISRO to lean onto during the initial years....

Yes..the good /important thing is they are regularly managing to get their systems clear trials, match imports and hence get orders put in.

Singha · Post by **Singha** » 03 Apr 2015 20:27

Karan M wrote:Singha, am assuming its the same "28" order suitably rounded out to 30...

boy talk about "teething troubles"....we were discussing it post Kargil right after the initial buy of ANTPQ37...around 2004 defexpo.

Karan M · Post by **Karan M** » 04 Apr 2015 02:58

usual "endless trials" business.. IIRC these newest versions have all the bells and whistles... and BEL can finally start rolling them out of the door

Karan M · Post by **Karan M** » 04 Apr 2015 04:27

btw wlr cleared a set of trials by 2008.. then more trials...then 2012 onlee...but more upgrades were done ..so now

2008
http://www.indiastrategic.in/topstories129.htm
2012
http://www.thefreelibrary.com/Army+eyes ... 0312455945

now
http://pib.nic.in/newsite/efeatures.aspx?relid=72477
http://drdo.gov.in/drdo/labs/LRDE/Engli ... chieve.jsp

Singha · Post by **Singha** » 04 Apr 2015 07:13

this is like USAF sitting on F-16A and buying it in block40 form only.

putnanja · Post by **putnanja** » 16 Apr 2015 20:41

A very good interview by Defence minister in HT. Not sure if it was posted earlier:

IAF consulted on direct buy of Rafales: Parrikar

From an arms race in the Indian Ocean and the challenges of raising a mountain strike corps to the hurdles in scaling up border infrastructure and how the UPA regime ignored the military's needs, defence minister Manohar Parrikar opens up to HT in an exclusive interview.

Excerpts:

Q. Was the Indian Air Force on board when the government took the decision to buy 36 Rafale fighters under the government-to-government (G2G) route from France?

A. I consulted the Air Force to the extent it was required. They have no role in decision-making as ultimately it’s the Prime Minister’s call. I did discuss possibilities with the prime minister and he took a very bold decision which was required. If we had missed this opportunity, the entire matter would have gone into a spin and we might have had to re-start the whole procedure this year. And in another five years our requirements might have changed. Rafale induction could begin in about 18 months.

Q. You said the fighter acquisition process will be G2G now. Will India buy more Rafales or could it source fighters from other countries too?

A. I will say both options are open to us depending on reassessment of our requirements (after scrapping the tender for 126 aircraft). I will not spell out MMRCA (Medium Multi-Role Combat Aircraft) role but it will be very effective in certain areas. Two people travel on a scooter, 4 in a car and 20 in a bus. But 2 people can also travel in a bus but that would be wasting resources. So, we will not deploy this aircraft where it is not required. I can tell you our light combat aircraft (LCA) is also a very capable aircraft and can replace MiG-21s more than adequately. It cannot be compared with the Rafale as the latter is a heavier fighter with two engines.

Q. So India will buy more Rafales after re-assessing requirements? Where does the LCA fit in the picture?

A. I feel that some more Rafale jets may be required but need to figure out how we can acquire them. But more importantly, we need large number of aircraft to replace MiG variants over the next 8-10 years, which is their extended life. So either we go in for large-scale manufacturing of the LCA or combine some other requirements and go for a medium-weight fighter under the Make in India plan.

Some of it can be replaced by even proper stockpiling of missiles. Nowadays, one can attack some targets by proper use of missiles.

Q. Will the remaining Rafales come under Make in India programme and will Dassault Aviation set up a unit here?

A. That decision will be taken after both India and France hold talks. It will also depend on what our financial outlay is. We operate various MiG variants, Mirage 2000s, Jaguars, Sukhoi-30s and we have the LCA now. All these warplanes have different capabilities and cannot be compared. Ultimately, we may also require certain number of Rafales but how many will hinge on the cost factor. Why just 126? I would want the IAF to have 500 planes, but the question is how much I can afford. We will have to do an analysis of minimum requirement and then take a decision.

Q. The 10 years of UPA is often referred to as the lost decade for the military with several key projects getting delayed or derailed. How do you intend to reverse the damage and speed up acquisitions?

A. My focus is on projects that are stuck at different stages. I have managed to speed up these projects by 25%. There are 339 such cases that need to be dealt with. The ministry has managed to bring 58 of these to final stages of completion. Nearly 100 projects may not be required now due to long delays or changed requirements and we are looking at dropping them or putting them on the back burner. The thrust is on accelerating critical projects.

Q. What stopped the previous regime from taking quick decisions: bureaucratic inertia or lack of leadership?

A. I always say bureaucracy is colourless like water. It takes the colour of the government so you cannot totally blame them (bureaucrats). Part of the blame surely lies with them. But, it is the duty of the government or the minister to ensure proper follow-up action to crucial projects. I do not know what the previous government was doing but as far as I am concerned, review meetings are held in South Block on a daily basis.

Q. Pakistan is on course to buy 8 diesel-electric submarines from China in what would be one of Beijing's biggest exports. How do you think it will change the dynamics in the Indian Ocean region?

A. Of course, a submarine in itself is a very powerful platform in the ocean. It may, however, not directly pose a threat to India. But it does become a weakness in your armour of controlling the ocean. We will have to match it. I do not see it as a big problem because we will have enough submarines by the time Pakistan gets these 8. By the time they get the deliveries, we can manufacture 15-20 submarines.

Q. You have said the UPA regime cleared the mountain strike corps project in the eastern sector without factoring in availability of funds? What outlay are you planning to set aside for it?

A. The previous government had estimated it will cost Rs 88,000 crore and will have 70,000 soldiers. I have frozen the cost at Rs 38,000 crore over next eight years. It will consist of 35,000 men. The CCS had cleared the original proposal, but where is the money? Rs 88,000 crore is the army's revenue budget. The CCS kept clearing projects worth Rs 50,000 crore to Rs 1,00,000 crore but where is the actual money? So you have to be selective. I have cleared a Rs 48,000-crore project for seven stealth frigates (P-17A), but I have factored in when the money will be required and at what stage.

Q. Are you satisfied with infrastructure in forward areas and the role of the Border Roads Organisation?

A. Much more needs to be done. Environmental clearances have come in 64 cases. But I will be able to take the issue head on only when we are in a position to deliver in terms of roads. BRO is now in the process of outsourcing. Government machinery, the BRO in particular, has never developed the technique of outsourcing. They are very poor outsourcers. They do not have conceptual clarity on outsourcing. We are in touch with the Confederation of Indian Industry and may appoint consultants to push it.

Q. Can you elaborate on proposed changes in the new defence procurement policy?

A. Different issues are being tackled separately and we are close to coming close to a conclusion. I think 8 or 9 main issues (including blacklisting and allowing agents) have been discussed extensively and decision-making is in an advanced stage. I am forming a committee that will go through all this material and do a final round of interaction (with stakeholders). It will then write a Defence Procurement Procedure which will be published after the ministry vets it.

Q. The Prime Minister has talked about skills as part of defence offsets but your ministry says skills cannot be a part of offsets.

A. It can be. They are going by what is written there. But if we change that, the same people will say it is possible. Currently, there is a ban on services in offsets as someone used services to give kickbacks. I intend to take it up at the next meeting of the defence acquisition council and lift the ban on services.

Q. What are your expectations from your visit to South Korea (April 15-19)?

A. The Prime Minister will be visiting Korea in May. The idea is to discuss some issues so that some agreements can be finalised and signed during the Prime Minister's visit. The Koreans excel in areas such as shipbuilding, electronics and metallurgy. They have also shown interest in the Make in India programme.

Q. The Defence Research and Development Organisation (DRDO) has been without a chief for more than 2 months? What about appointing chief of defence staff?

A. The selection process for the new DRDO chief is on and will happen soon. DRDO will play a key role in boosting the Make in India programme. We will encourage it to tie up with the local industry in the development phase. As for creation of the post of chief of defence staff or permanent chairman of the chiefs of staff committee, I will take up that issue after two months as I already have my hands full with other issues. We do intend to create that post but if I take up everything together I will not be able to do anything.

Q. Coming back to the Rafale deal, you said your predecessor had himself put a question mark on it.

A. The previous defence minister had written that after the price negotiation is done, L1 should be verified again. But it did not come to that stage as it got stuck up because of interpretation of whether to take French man-hours into consideration for building the plane or Indian man-hours, which is 2.7 times the French number. I have not gone into too much detail on that, but my officers have expressed reservations about this 2.7-hour formula for local manufacturing.