Eye on Defense_April 2012

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Indian defence budget 2012-2013:

an analysis 02

DOFA: a single window mechanism 08

Alenia: C-27J SPARTAN Tier 1s 13

Request for Information (RFIs) 15

Request for Proposal (RFPs) 16

List of industrial licenses (ILs) led

from 01/01/2012 TO 29/02/2012 17

New projects/investments/contracts 18

Joint ventures and alliances 21

Country-level deals and initiati ves 23

Industry buzz 24

Sources 28

April 2012

Eye on defence

Dear readers,

The rst quarter of the New Year has witnessed some signicant

developments in the Indian defence sector.

Recently the 7th Defence Expo was held in Delhi in the last week

of March. There was certainly some reduction in the fanfare and

glamor, which was expected following the MMRCA decision. The

coinciding of the Defexpo with the nancial year closing also had an

impact with most senior level representatives of Indian companies

being present only for selected periods of time.

The Union Budget was also presented in the Parliament on 16 March 2012. Keeping with

the trend the defence budget was increased by double-digit percentage points (17.6%) over

the previous year. With the MMRCA now almost certain to be signed within this scal, the

adequacy of the defence budget is likely to be tested.

Last but not the least, there were a urry of articles in all major news-papers and the

internet about the amendments to the Offset policy. Noticeably these amendments

permitted ToT as offsets and also intro duced the concept of multipliers. However there

has been no ofcial statement or release or document uploaded on the MoD website to this

effect.

In our current issue, we have analyzed the latest defence budget; proposed certain

methods of imple-menting the recent changes to the offset policy (ofcial announcement

awaited) and described the Tier-1s of Alenia Aermacchis C-27J SPARTAN platform,

which is in contention for multiple programs in In-dia.

We hope you enjoy reading this issue of the Eye on Defence. It has been our constant

endeavor to make this publication more relevant to you and would appreciate your

comments and suggestions in this re-gard.

K. Ganesh Raj

Partner and Leader

Aerospace and Defence Practice


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Indian defence budget201213: an analysis

The Government of India (GoI) in its Union Budget 2012-13 has earmarked INR1,934 billion

(US$42.9 7 billion) for defence, increasing it by 17.6% as compared defence allocation of

INR1,644 billion (US$36.536 billion) in 201112. The defence budget 201213 accounts

for 12.97% of the total government expenditure and 1.9% of GDP. INR795.79 billion

(US$17.68 billion) has been allocated for capital expenditure and INR1,138.28 billion

(US$25.29 billion) has been allocated for revenue expenditure. The attached diagram

shows the defence budget allocations (including capital and revenue) in the last three years:

Share of services

In 201213, the Army with an approximate budget of INR969.43 billion (US$21.54

billion) accounts for the highest share of around 50%; at a distance followed by the Air

Force with INR475.59 billion (US$10.56 billion), which accounts for 25% of the defence

budget and the Navy, with an approximate budget of INR217.58 billion (US$4.83 billion),

which accounts for 19% of the total defence budget. Defence Research and Development

Organization (DRDO) with INR106.35 billion (US$2.36 billion) allocation, and ordnance

factories (OFs) with INR4 billion (US$0.088 billion) allocation together account for 6% of the

total budget. The pie diagram depicted below gives us the percentage shared by defence

services in Defence Budget 201213:

Defence budget = Capital + Revenue

13.33 15.37 17.68

19.41 21.38

25.29

32.7436.75

42.97

0

5

10

15

20

25

30

35

40

45

50

2010 - 2011 2011 - 2012 2012 - 2013

AmountinUSDbilllion

Capital Revenue Total defence budget

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Capital expenditure

The capital expenditure, which is meant for acquiring new weapon systems and platforms

has been scaled up to INR795.79 billion (US$17.68 billion), a 15.7% hike from last

years capital allocation of INR691.99 billion (US$15 billion). However, the actual capital

expenditure (revised estimates) was INR661.43 billion in 201112, which will mean that

actual hike is around 20%. In other words, this year the MoD surrendered INR30.56 billion

(4.41%) as unspent from its capital head. But, the overall share of capital expenditure as

a part of total defence expenditure has actually fallen to 41.11% from 42.09% from the

previous nancial year.

Share of defence services in defence budget 201213

Indian Army

50%

Indian Air Force

24%

Indian Navy

19%

OF+DRDO6%

Miscellaneous

1%

Share of capital: Revenue 2011-12

Capital expenditure

42%

Revenue expenditure

58%

Share of capital: Revenue 2012-13

Capital expenditure

41%

Revenue expenditure

58%

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Currently, all the three segments of the Armed Forces, the Army, the Navy and the AirForce, are on a transformation drive to acquire platforms and weapons with cutting-edge

technology, which are expected to be nalized in 201213. The graph given below shows

the sub allocations and percentage share, out of the total capital outlay allocated to the

different services:

The capital acquisitions allocations has

to cater for committed liabilities for the

year from the orders signed previous

years and are likely to be incurred on

account of the fresh schemes, during the

nancial year. The committed liabilities

as on date are around 65%70% of the

total capital outlay, thus leaving around30%35% only for new schemes. Under

the capital head, of the INR795.79 billion

(US$17.68 billion) nearly 70% or around

INR550 billion (US$12.22 billion) will

be for committed liabilities, thus leaving

around INR250 billion (US$5.55 billion)

for fresh purchases. With the impending

defence acquisitions, the ability of

the GoI to complete new purchases is

comparatively more limited than before.

Among the deals in the nal stages for

which the capital expenditure is likely to be spent upon include 126 ghter jets for US$20billion, six mid-air refuelling aircraft for US$2 billion, 75 trainer aircraft for US$1 billion,

US$647 for 145 Ultra Light Howitzers (ULH), 197 utility helicopters for US$750 million, 22

attack choppers valued at US$600 million and GE F414-INS6 engines for indigenous Light

Combat Aircraft (LCA) Tejas and Harpoon anti-ship missiles estimated at US$170 million.

Besides, a US$1.18 billion deal to procure 490 MICA missiles for Mirage 2000H multi role

ghters, 42 additional upgraded Sukhoi-30 MKI aircraft, around 40 warship of the Navy,

including refurbishment of an aircraft carrier and nuclear-powered submarine, are under

construction at home and abroad.

Revenue expenditure

In the budget for 201213, the

revenue expenditure, which caters tothe everyday operating expenditure

of the three services has been raised

to INR1,138.28 billion (US$25.29

billion) as compared with last years

revenue allocation of INR1,035 billion

(US$23.62 billion).

IAF

38%

Capital expenditure 201213: Service wise

IA: Indian Army; IN: Indian Navy; IAF: Indian Air Force;

DRDO: Defence Research & Development Organization;

OFB: Ordnance Factory Board

IA24%

IN12%

DRDO

6%

OFB

1%

Naval Fleet

17%

Miscellaneous2%

Revenue expenditure 201213: Service wise

IA: Indian Army; IN: Indian Navy; IAF: Indian Air Force;

DRDO: Defence Research & Development Organization;

OFB: Ordnance Factory Board

IAF16%

IA68%

IN11%

DRDO5%

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Defence budget 201213: key statisticsThe defence budget for 201213 has been increased by 17.6% over the previous years

allocation. The increase in the defence budget has the following impact on almost all

key components (see Table). On the positive side, however, the ratio between revenue

expenditure and capital expenditure has improved toward the former.

Comparison defence budgets, 2010-11, 2011-2012 and 2012-13

201011 201112 201213

Defence budget ($ in billions) $32.74 $36.75 $42.97

Growth of defence budget (%) over

Previous year

3.98% 11.59% 17.63%

Revenue expenditure ($ in billions) $19.03 $23.62 $25.20

Share of revenue expenditure in

defence budget (%)

60% 58% 59%

Capital expenditure ($ in billions) $11.95 $13 $17.29

Share of capital expenditure in defence

Budget (%)

40% 42% 41%

G rowt h of ca pi ta l ex pen dit ure (% ) 2 5. 40 % 1 5. 33 % 1 5. 70 %

Revenue vs. capital expenditure

The percentage share of capital allocation in the defence budget as compared to revenue

allocation has seen a decline this time. This growth has, however, been driven primarily

because of the increase in pay and allowance of the armed forces, which has increased by

27% to INR631.82 billion (US$14.04 billion), accounting for around 46% growth of the total

defence budget.

Budget utilization

The defence budget for 201112 has been revised upward by INR65.21 billion (US$1.44

billion) to INR1,709.36 billion. However, unlike the revised estimate for 201011, in which

both the revenue expenditure and capital expenditure were higher than their respective

budget estimates, the revised esti-mate for 201112 shows an increase in revenue

expenditure (by INR9,576.32 million or 10.06%) and decline in capital expenditure byINR3,056 million (or 4.41%). Thus, this year the MoD has returned about INR30.56 billion

(US$0.67 billion) but fresh major purchases in 2012 are expected to be executed in 2013,

which gives an impression that the next revised capital budget may even exceed the

earmarked INR800 billion (US$17.77 billion) in 201213. Returning of unspent capital

funds shows a lack of planning, as is evident from the past.

Utilization of allotted capital budget (amount in USD billion)

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

$=45 INR BE RE BE RE BE RE BE RE BE RE

CE 9.32 8.38 10.67 9.11 12.18 10.63 13.33 13.52 15.38 14.7BE-RE 0.94 1.56 1.56 -0.19 0.67

CE-Capital Expenditure BE-Budget Estimate RE-Revised Estimate

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It is to be noted that the procurement process has thus picked up and the allocations have

been fully committed as against surrender earlier as shown in the table and gure above.

The revised estimate for 201112 also shows only marginal surrender of around 4%.

Impact analysis

India has an annual capital expenditure of around US$15 billion, and is the worlds biggest

importer of defence equipment, accounting for 10% of global arms imports between 2007

and 2011. While Indias defence imports are ofcially put at 70%, the actual gure isconsiderably high and is likely to be around 85%, if imports made quietly by defence public

sector corporations (DPSUs) are included.

Although Indias defence spending has more than doubled in the last ve years from

INR960 billion to INR1,934.07 billion but the military establishment still feels that the

nancial outlay should be further increased to beef up capabilities. In real terms, this

increase amounts to INR289.92 billion (US$6.44 bil-lion) in the total outlay for defence

for 201213 compared to the defence budget for the previous year (201112). However,

if we take the revised estimates of the budget 201112 then this budgeted estimate has

seen an increase of 13.1 % from the previous years revised estimate of INR1,709.36 billion

(US$37.98 billion) in 201112. The GoIs ne balancing of resources, rising ination and

the exchange rate variations (ERV) leading to sharp devaluation of the Indian rupee against

the US dollar, have caused the defence services modernization budget to be effectively

reduced for the rst time in decades.

The share of this years defence budget, which accounts for only 12.97% (approx.) of

the total Central Governments expenditure for the year 201213 has seen a decline

as compared to last year. Also, the money allocated for defence is below 2% of the

GDP where as a healthy defence budget is expected to be between 2.5% and 3% of the

countrys GDP. This year, the defence budget constitutes 1.90% of the GDP (estimated to

be INR101598.84 billion (US$2257.75 billion). It was 1.83% of the GDP in 201112 and

was 2.2% in 201011. What is signicant is that it is the second successive year when the

defence budget was less than 2% of the GDP. The gure given below shows the decline in

GDP in defence budget.

Capital budget: Spending

9.316 10.67 12.18 13.33 15.38

-10%

-15 %

- 13%

1%-4.5%

0

2

4

6

8

10

12

14

16

18

2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012

AmountinUSDbillion

Budget estimate Budget unspent Budget over-spent

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The armed forces, and even the Parliament, have been asking for an allocation of 3% of the

nations GDP to defence for a long time but the projected GDP of this year falls short. It is

to be seen that if our economy grows at around 8% per annum, it will not be difcult for the

GoI to allocate around 3% of GDP for National defence.

A closer look at the growth of the capital budget for 201213 would reveal that the

focus is entirely driven by the Navy, which has got a 72% hike (to INR241.51 billion) in its

modernization budget. The Air Forces modernization budget has increased marginally

(by 0.5%) to INR285.03 billion, while the Armys has declined by 3% to INR138.04 billion.

Trends in service-wise allocations, especially in capital budgets, suggest that Indias current

military modernization is weighted heavily in favor of the Air Force and the Navy, which

together account for INR540 billion approximately (US$12 billion). This conforms to alarger defence landscape where the aerospace as well as maritime domains are likely

to play a critical role in future. However, what is of concern is the increasing revenue

allocation for the Army at the cost of capital acquisitions. The Armys modernization has

already been hit by cancellation of major purchases, especially in artillery, armored and

soldier modernization and combat helicopter equipment. The obsolete air defence systems,

shortage of tank ammunition and deciencies in night-ghting capabilities has adversely

affected the Armys capabilities. Unless the MoD catches up with at least replenishment

requirements, the Army is likely to lag behind in overall modernization, which in turn will

cause more problems.

Notwithstanding above, the strategic shift in the threat perception from conventional war

to asymmetrical challenges have to be kept in mind during resource allocation besides

maintaining a ne balance be-tween defence and development. The eventual objective of

war is to break down the adversarys economic prowess by neutralizing strategic assets.

Our endeavor should be to focus on those areas as well. The defence forces will do well in

case they rationalize the tooth-to-tail ratio. Time has come to discard the baggage, which

are not required in the present operational environment.

Note: The conversation rate for $: INR has been kept at 1:45 for sake of uniformity and standardization with

the previous fgures.

Share of defence budget in GDP

0

0.5

1

1.5

2

2.5

Inp

ercentage

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

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DOFA: a single windowmechanismBackground

India is probably the only country in the world that has an institutionalized mechanism for

facilitation of Offsets. The MoD clearly lists out the nuances of the policy, its procedures;

etc. Yes there is scope for improvement, but the transparency shown by the MoD cannot

be overlooked.

The rst DPP that included Offsets implementation was promulgated in 2005 but the rsteffective DPP in this regard is always regarded as DPP 2006, wherein detailed guidelines

for implementation of offsets discharge was incorporated as part of DPP 2006. At that

time it was envisioned, most appropriately, that there is a need for a government agency

that is likely to act as a facilitator for foreign OEMs and Indian industry alike. Here was a

government that included consultancy per se as one of the functions to take this great

initiative forwards. The thinking within the government then was to create a vibrant

structure, yet provide the OEMs with all possible assistance to ensure the success of

implementation in Offsets. If one observed the functions and scope of work assigned

to the DOFA then, it is evident that this single organization was intended to work hard,

collect and disseminate information, provide Advisory services to the industry as well

as to the government arms in this business, provide for an e-solution by creating and

sustaining a dynamic web site, be the front end for facilitation and yet remain in the

background to aid in the decision-making process of the acquisition under consideration.

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How it all startedSoon after the promulgation of the DPP 2006, DOFA was founded and was established

as part of the DDP. A small organization was put in place headed by the Joint Secretary

(Exports). Soon after, a web-site was also launched, which included the extract of the DPP,

the procedure for implementation of offset guidelines, list of companies that required an

industrial licence and a few interactive features for queries. DOFA was a single window

advisory for the Indian defence industry and the various associations such as CII, FICCI,

ASSOCHAM and foreign OEMs.

DOFA, in its envisioned form (of having members from the industry associations, and other

stake holders as a multi-disciplinary organization), existed for not more than three months

or so when all the members as indicated in the policy were invited for DOFA meetings. Most

probably two such meetings were held after which it felt that such an extended body wasnot was really required. DOFA really meant the Chairperson, who headed the organization

and the PO (CAP) under the Director P&C, who was assigned the additional responsibility of

Offsets as well. This lean organization was effective in the formative years and provided the

single point advice to the Services (TOEC), the MoD(CNC) and the industry.

The effectiveness came about from the singular focus that DOFA maintained till then, To

be a credible Advisory and Facilitate in implementation, unmindful of authority. The name

DOFA is self-explanatory, it is a facilitation agency, and strives to provide service, provide

information and advice to all the stakeholders.

Lost focus

The years 2006, 2007 and early part of 2008 witnessed fructication of some major dealssuch as the Naval Fleet Tanker, the Maritime Reconnaissance and Surveillance aircrafts,

upgrades to the Mig 29 and procurement of Helicopters among others. These were about

eight or nine in number and accounted for more than a couple of billion dollars in offsets

alone. Despite such major programs having been nalized and many more under process,

DOFA was never strengthened to effectively take on the increased work-load. Revisions to

DPP 2006 were at the behest of some very sound feedback from the environment, which

included a procedure for Banking of Offsets credits and removal of the compulsory licensing

condition to establish the eligibility of the Indian Offset partner. At this juncture, instead of

strengthening the DOFA, it was felt more prudent to introduce yet another organization in

the DDP (someone called Director S1, hitherto looking after supplies wing under the Joint

Secretary (Supplies), in the DDP) to be made responsible for banking of offsets.

Due to this new structure, several banking proposals that are in the queue, only two havebeen approved even after four years of introduction. The crux of this matter can possible

be traced to the diluted responsibilities in the new structure and as a result, one of the

most important tools to be introduced in the offset policy is yet to truly play its role in offset

discharge.

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What is needed?

A sharp focus is expected of DOFA to enable the organization to discharge its functions.

Any policy, however well it is intentioned, and however well it is drafted, can fail, if the

original goals are lost down the road.

A single-window approach, for the industry to seek guidance and the necessary

support in their endeavors to be able to efciently exploit this opportunity provided by

the offset policy

Integrate the strengths of the government and incorporate a holistic approach

Strategize the concepts in implementation before promulgating yet another policy and

structures

Implementation strategy

One of the questions that emerge is, should DOFA remain a facilitation agency or does it

have some merit in upgrading itself onto an authority of sorts?

Considering the enormous amount of money involved in the procurement process and

subsequently in offsets, many analysts have put the gure of offsets at US$5 billion in

the next three years, the numbers involved are of the highest magnitude, wresting all the

control of Offsets in a single hand could be potentially fraught with danger. All this money

is through industrial participation guided by the avenues for discharge as enunciated by the

DPP, in the chapter, Procedure for implementing off-sets provisions.

Considering the avenues for discharge and the subsequent process for approvals, it can be

seen that there is no single agency that is completely responsible for approvals. This has

advantages as well as disadvantages. The pros are that, distributed responsibility does not

concentrate power in one hand and divergent views are expected to be freely aired without

being afraid of consequences. The greatest disadvantage this has is that there is no time-

bound solution. The process can be indenitely delayed and the blame can be passed from

one to another.

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A single-window mechanism is expected to resolve most of the issues and will expedite the

decision-making process. The industry, both domestic and foreign, will not have to keep

running from one ofce to another, in an effort to resolve their queries and problems.

DOFA needs to be focused on facilitation and be dedicated to this cause. This is an

important cause, though without any powers assigned to it. The entire industry, research

analysts and world forums seek to attribute many reasons to why implementation of

offsets in India will not succeed, both from an angle of poor implementation by the MoDas well as the lack of capability within the Indian industry. While the capability has indeed

come a long way and will only enhance in the coming years, both through organic and

inorganic methods, focus on effective

implementation is an immediate need. The

MoD must decidedly uphold the original

cause for facilitation and encourage the

industry to exploit this important forum.

The clarications provided by DOFA

must, in most cases, be binding on the

government while processing the cases at

a later date. This will encourage OEMs to

seek necessary advance clarication prior

to structuring their proposals.

This means, the new single window

organization, which the government

is in the process of establishing, must

incorporate a sound facilitation arm

and retain a sound Advisory inside the

government, both for internal purposes

to educate various stake holders. This

facilitation arm can create and sustain

an institutional memory and refresh

the annals of MoD and the industry in a

periodic manner. This facilitation arm canalso act as the knowledge partner to the

single window offset authority. The MoD

can do well to outsource this task to the

industry on a PPP model.

In order to be an apostle of knowledge,

the facilitation arm must have intimate interaction with the industry, both domestic and

foreign. There is also a requirement of an in-depth understanding of technology as it relates

to defence preparedness of the country. Toward this end, the facilitation arm must also

incorporate experts in the eld of education, technologists and have access to knowledge

that resides in the various research institutions in the country.

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The new and vibrant Offset Authority that is in the process of being formed needs to be asingle-window agency that incorporates a facilitation arm, which is also a knowledge arm,

and a separate execution arm. The Execution Arm must necessarily synergize the strengths

available in the government to form a formidable authority.

So what are the strengths available within the MoD?

DRDO is the Technology Arm of the MoD and has inherent strengths to provide for back-

bone resilience. Intimate association with the DRDO is an inescapable requirement. A

detailed knowledge of the technologies being harnessed across various laboratories, the

requirements of the Armed Forces, technologies in vogue across the Armed Forces of the

world, need to be studied and gaps identied. The new Offset Authority may not do the

entire processing, yet it needs to have a good hold on the subject for effective exploitation.

The Armed Forces do incorporate and use new technologies and have a fair idea of what

they need in combat, they must be integrated in a sound manner in this process. Thus,

Services, The Integrated Defence Staff, DRDO should be integrated into the decision-making

process.

The new Offset Authority must integrate all activities of facilitation, banking, processing and

evaluations, approvals, monitoring (for banking and post-contract monitoring), and cover

all the activities associated with offsets. This will ensure accountability and effectiveness in

implementation. The integration with the acquisition process must be full and total, leaving

no room for any delays in the acquisitions due to the lethargy of the Offset Authority.

It is time for MoD to strategize the concepts for implementation prior to promulgating

yet another policy or organization. The drawbacks of the previous organization must be

studied and analyzed threadbare and then effective counter measures must be taken andimplemented in the new structures. This will augur well both for the MoD and the industry.

Conclusion

The new offset authority being conceived by the MoD must be robust, well

staffed both in terms of quality and quantity and incorporate the best practices in

governance. From the highest to the lowest level, the staff must be dedicated. May be

at levels higher than this, multi-tasking could be permitted. DRDO must necessarily

play a dominant role in acquiring technology and be able to ll in gaps so identied as

also aggressively nd the route to production.

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Alenia: C-27J SPARTANTier 1s

The C-27J is a medium category transport aircraft and shares many of its systems (Rolls

Royce engines) with the C-130J which India currently posses. The C-27J is currently

looking at participating in multiple tenders that have been oated by the Central

paramilitary and armed forces. The aircraft is capable of taking off from unprepared strips

less than 500 meters long with a maximum takeoff weight of 30,500 kg. The aircraft is

designed to operate in remote areas like those in Jammu and Kashmir and the North-East

from gravel or sand as besides the twin-engines, it has an auxiliary power unit (APU) that

provides electricity and maintains pressure without the need to keep the engines running

when the aircraft is on ground.

At present, besides the US, the C-27 J has been ordered by the air forces of Italy, Greece,

Bulgaria, Lithuania, Romania, Morocco. Slovakia has also selected the aircraft.

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No.

Des

cription

3

Aile

rons(L&R)

4

Spo

ilers(L&R)

5

OutboardFlaps(L&R)

6

Inbo

ardFlaps(L&R)

14

Nos

eLandingGearDoors(L&R)

16

Rad

ome

18

MainLandingGearFairings(L&R)

22

Cen

treWingAirfoilUndersideDoor

23

OuterWingAirfoilUndersideDoor

24

Win

gtoFuseFairing

25

ForwardFuselage

26

Cen

treFuselage

27

Fwd

/RearFuselage

28

Aft/

RearFuselage

30

Pipes

31

Wires

No.

Description

1

Centre

Wing

2

OuterW

ing(L&R)

7

HorizontalStabilizer(L&R)

8

Elevato

rs(L&R)

9

Vertica

lStabilizer

10

Rudder

11

UprRearemergencyHatch

12

Paratro

opfoors(L&R)

13

UprFw

demergencyhatch

15

Sidemergencydoor

17

Fwdcrewdoor

19

Loadingramp

20

Loadingdoor

21

Uprctr

emergencyhatch

29

Nacelle

(L&R)

32

Propellers

Alenia(InHousefabricationand

assemb

le)

Subcon

tracted

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Request for Information (RFIs)

January 2012 15 April 2012

Date of issue RFI details Response date Issued by Service

6 Jan 2012 RFI and Interaction with

Manufacturers of Operating

Theatre Shelter Inatable

11 Jan 2012 MGO/EM/GS&C

Room No 206

Army

6 Jan 2012 General Purpose Machine Gun

for PARA (SF)

20 Jan 2012 Director General of Infantry

Infantry - 7

Army

6 Jan 2012 Spares, Repair and Over-haul of

Missile Test Station

23 Jan 2012 Directorate General Of EME

(Electronics)

Master General of Ordnance

Branch

Army

22 Feb 2012 Unmanned Aerial vehicle (UAV)

mission simulator for UAV crew

22 Mar 2012 Directorate General Of Artil lery 5 Army

21 Feb 2012 Full Body Truck Scanners 13 Mar 2012 MI Dte Army

22 Feb 2012 Night Sight for Carbine 10 Mar 2012 Inf Dte Army

23 Feb 2012 Optical Theodolite Instrument 15 Mar 2012 Directorate General of Artillery 5 Army

23 Feb 2012 Electro Optical Instrument 30 Mar 2012 Directorate General of Artillery 5 A rmy

15 Mar 2012 Specialist Vehicle 15 April 2012 Inf Dte Army

19 Mar 2012 New power pack with minimum360 horse power engine

including running gear and

suspension for Infantry Combat

Vehicle (ICV) BMP-2/2K

30 April 2012 DGMF Army

13 Jan 2012 Technical And Commercial

Information For A WIMAX

System

6 Feb 2012 Joint Director of Naval Signals

(Networking)

Directorate of Naval Signals

Indian Navy

3 April 2012 Diver Navigation System 20 April 2012 Directorate of Spe-cial Ops &

Diving

Indian Navy

1 April 2012 Surveillance Radar 23 April 2012 HQ CAC

Bamrauli

Allahabad

Indian Air Force

20 Mar 2012 Deep Search Metal Mine

Detector(DSMD)

2 April 2012 CRPF CRPF

1 April 2012 Surveillance Radar 23 April 2012 HQ CAC

Bamrauli

Allahabad

Indian Air Force

9 April 2012 Comjam And Sigint Aircraft 24 May 2012 PD ASR (Room No 460)

Air HQ (Vayu Bhawan),

Ra Marg

Indian Air Force

11 Apr 30 mm or more AD Gun 30 Apr 2012 DGWE(WE-9)

General staff branch

Room no 208g, south block

Integrated hq mod (army)

Dhq po, New Delhi-110011

Indian Air Force

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Request for Proposal (RFPs)

Date of issue RFP details/equipment Response date Issued by Remarks

19 Jan 2012 GPS for Aviation Navigation 19 March 2012 Army Commander Special

Financial Power Cell Northern

Command

For Army

7 Feb 2012 Counter Terrorism Operations

Planning Tool and WargamingSystem

14 April 2012 WARDEC For Army

7 Mar 2012 Light Weight BP Jacket 12 Mar 2012 INS Abhimanyu For Navy, Qty: 48

11 Jan 2012 Portable air supply &

communication system

30 Jan 2012 Commander

Operations Ofcer

For Navy

24 Feb 2012 Expression of Interest for

Technical Consultancy Services

for Phase IIA of Project Seabird,

New Delhi

21 Mar 2012 Director General

Project Seabird

For Navy

23 Jan 2012 Hand Held LED Torches with

Accessories

13 Feb 2012 SO PROVOST

HQ WAC IAF

For Indian Air Force

21 Feb 2012 Repair overhaul of Russian origi n

aggregates of Illushin aircraft

of IAF

3 Apr 2012 D Eng TI

Air HQ (VB)

For Indian Air force

27 Jan 2012 Supply And Installation Of CCTV

Surveillance System

27 Feb 2012 Wing Commander

Units Logistics Section

Training Command

For Indian Air Force

Qty: 12 Nos.

30 Jan 2012 FUZE T AND P DA NO 213 P-MK-

5(M-2)

28 Feb 2012 Ordnance Factory Dehuroad,

Pune

For OFB

Qty: 10190

15 Feb 2012 Smokeless Pyroxylene

Propellant Powder for 14.5 MM

Ammn.

20 Mar 2012 Ordnance Factory Khamaria

JabalPur

For OFB

15 Feb 2012 Smokeless Pyroxylene

Propellant Powder for 14.5 MM

Ammn.

20 Mar 2012 Ordnance Factory

Khamaria JabalPur

For OFB

3 Mar 2012 Power Unit Part No.1155261,

complete as per BOM and Drg.

Attached as Annexure-I for 155

mm FH Gun

10 April 2012 Joint General Man-ager

Gun Carraige Fac-tory

For OFB

Qty: 06

14 Feb 2012 Image I ntensier Tube 18mm

AVG Glass I/P

20 Mar 2012 Ordnance factory

Dehradun

For OFB

Qty: 352 units

Jan 2012 Explosive Detection Kit 15 Feb 2012 Deputy I nspector

General of Police,

Central Reserve

Police Force

For CRPF

Qty: 10 Nos.

30 Jan 2012 Hand Held Thermal Imagers and

Accessories

14 Mar 2012 Directorate-General, CRPF For CRFP

Qty: 100

23 Feb 2012 Global Positioning System 17 Mar 2012 CRPF CRPF, Qty: 77

4 April 2012 Ammunition for Shooting

competition

18 May 2012 Directorate General, Border

Security Force

For BSF , Qty: 882400 Rounds

4 April 2012 Doppler radar system for

velocity measurement of sub-sonic and super-sonic projectiles

29 May 2012 Indian Ordnance Factories

AMMUNITION FACTORY,KHADKI

For OFB

2 April 2012 Rubberized inatable Boats with

25 HP OBM

15 May 2012 Directorate General, Border

Security Force

For BSF, Qty 75 Nos.

January 2012 15 April 2012

Eye on defence | 16


17/31

List of industrial licenses (ILs) led from01/01/2012 TO 29/02/2012Application no. and date Name of the applicant Item of manufacture

1: 5/1/2012 Mistral Solution Pvt. Ltd. Defence electronics hardware boards

2 : 6 /1 /2 01 2 Ta ta A dva nce d M at er ia ls Ltd . M an ufa ct ure of p ar ts a nd a cce sso ri es N .E .C . fo r a irc ra ft o r s pa ce

craft

3: 31/01/2012 Vinyas Innovative Technologies Pvt. Ltd. Electronic printed card board, assemblies/electronic

subassemblies/military wire ha rnesses for defence andaerospace application

4 : 3 1/ 01 /2 01 2 E lc om e m ar in e s er vi ce s P vt . L td . Sy st em i nt eg ra ti on f or e le ct ro ni cs i nc lu di ng d es ig n a nd

production of customized hardware and software (GUI / API

based, as well as embedded) (NIA 620)

5 : 7 /2 /2 01 2 Ta ra A ero sp ace Sy st em s Ltd . C om po ne nt s k it s / a cce sso ri es fo r a irc ra ft ( ro to r c ra ft s a nd xe d

wing aircraft )

6 : 1 3/ 02 /2 01 2 N ava ni dh i E le ct ro ni cs ( P) L td . A nt en na s, H F/ VH F/ UH F/ RF p ow er a mp li e rs , e le ct ro M ec ha ni ca l

masts, security jammers, mo-bile Jammers & cell phone

jammers, microwave systems and components for EW equipment,

V/UHF, l-band Digitally tuneab le lters, active night vision and fog

vision equipment

7 : 2 2/ 02 /2 01 2 P ip ava v D efe nc e a nd O ff sh ore

Engineering Co. Ltd.

Manufacture of tanks (armored ghting vehicles) gun Turrets (land

and sea), artillery systems (including upgrades and overhaul)

8 : 2 2 /0 2 /2 0 12 U n iq u e I n st r um e nt s & M f rs -P v t. L td . M a nu fa c tu re o f a i rc ra f t a n d e n gi n e p ar t s, a c- ce ss or i es a nd s ub -

assemblies

9 : 2 3/ 02 /2 01 2 S ri L ak sh mi E xp lo C he mi ca ls S ol de ri ng o f f us e h ea d u nt o i ns ul at ed t wi n w ir es o f p re cu t l en gt hs ,

sleeving and tagging

1 0 : 2 9 /0 2 /2 0 12 A s ho k L ey l an d D e fe n ce S ys te m s L td . D es i gn d ev el o pm e nt , m an u fa ct u re a ss em b ly, o ve r ha u l, r ep ai r

and upgrade of defence equipment to include armored fghting

vehicles, other armored combat vehicles, unmanned ground/

aerial vehicles, armor protected vehicles, specialist vehicles etc.

Eye on defence | 17


18/31

New projects/investments/contracts

Name of entity Project details Value

Bharat Dynamics

Ltd. (BDL)

BDL plans to set up a surface-to-air missile unit in Hyderabad with a capacity to

produce an estimated 6,000 sophisticated medium-range missiles.

The plant spread over 630 acres is expected to be operational by 2016 and create

employment for 700 people directly and 2,000 indirectly.

INR300 billion

Indian Air Force

GOI has signed contracts with M/s Thales, France and M/s Dassault Aviation, France,as well as M/s Hindustan Aero-nautics Limited (HAL), India to upgrade the Mirage

2000 aircraft of the Indian Air Force (IAF), scheduled to be completed by 2021.

Another contract has been signed with M/s MBDA, France, for procurement of air-

to-air missiles for the Mirage 2000 aircraft. The delivery of missiles is scheduled

between 2015 and 2019.

Contract with M/sThales and M/s Dassault

Aviation: INR101.66

billion

Contract with M/s HAL:

INR20.2 billion

Contract for pro-

curement of the missiles:

INR66.25 billion

Pawan Hans

Indian government-owned Pawan Hans has submitted a proposal to four central

ministries seeking the purchase of 249 helicopters and 10 sea planes and the

construction of 180 helipads across India.

The aircraft and helipads will improve aerial surveillance, law-and-order monitoringand Indias response to medical emergencies and natural disasters. This is also likely

to make at least 30% of Indias districts and many remote areas more accessible.

INR100.30 billion

Defence public

sector units

Four defence public sector units are setting up nine manufacturing units in Andhra

Pradesh that is expected to create 10,000 jobs in the state.

This includes Bharat Dynamics Ltd. (three units), Bharat Electronics Ltd. (3 units),

Electronics Corporation of India Ltd. (2 units) and Mishra Dhatu Nigam Ltd.

(MIDHANI) (one unit).

INR70 billion

Government of

India

The Russian Akula-II class submarine K-152 Nerpa was commissioned into

the Indian Navy as INS Chakra on a 10-year lease agreement. INS Chakra,

commissioned at the Primorye region in far southeastern Russia will soon be sent to

India.

With this, India has become the worlds sixth country after the US, Russia, France,

the UK and China to operate nuclear powered submarines.

INR46.67 billion

Government of

India

The GoI is purchasing 75 Pilatus trainer aircraft from Switzerland. Deliveries of the

aircraft are expected to begin in 2013.

The Pilatus aircraft is likely to replace the earlier HPT-32 trainers that were

grounded after a fatal accident in 2009.

INR18.50 billion

Poland

Bumar, Polish-based supplier of armaments and defence signed an export contract

for armored units to the Indian army.

It also signed an agreement with BEML stipulating co-operation on projects,

including sales to third-party markets.

INR15.56 billion

Eye on defence | 18


19/31


Pratt & Whitney Pratt & Whitney, unit of United Technologies, is exploring to set up an MRO

(maintenance, repair and overhaul) unit, an aircraft engine components facility and

a training center in India.

The company is holding talks to set-up a JV with Tatas and L&T and the proposed

unit is expected at Bangalore or Hyderabad.

INR7.78 billion

Bharat Earth

Movers Limited

(BEML)

BEML initiated the process of setting up an Aerospace manufacturing division near

Bangalore airport. The facility will be spread over 3,00,000 sq ft and is expected to

be ready by September 2012.

This Aerospace Facility will be capable of manufacturing aerospace components and

parts, assembling of aircraft and helicopter up to 21 meters height.

INR4.45 billion

Tata Motors

Tata Motors Ltd. will invest to build a factory subject to supply order of 2,000

infantry combat vehicles to the Indian Army.

The company submitted a bid two years ago to supply the infantry vehicles.

INR3 billion

Hind High

Vacuum

Hind High Vacuum (HHV), a vacuum technology major that supplies equipment for

satellite and aircraft projects to ISRO, Hindustan Aeronautics, DRDO etc. has stated

plans to set-up a third plant near Bangalore focusing on the defence and aerospacebusiness.

HHV is open to a foreign equity stake or an investor in its existing plant.

The company wants to increase its presence globally and aims to more than double

its turnover to INR5 billion by 2014 (from nearly INR2 billion this scal year).

INR2-3 billion

Indian Central

Board of Excise

and Customs

Smiths Detection, part of the UK-based global technology business Smiths Group,

has won a contract to supply the Indian customs authorities with high-energy, X-ray

screening systems.

Smiths Detection will work in partnership with Bharat Electronics Limited and will

deliver the systems to the ports of Chennai, Tuticorin, Kandla and Mumbai over the

next two to three years.

INR1.04 billion

Kalyani Group Kalyani Group, a diversied Indian conglomerate will invest INR1 billion to develop a

towed artillery gun to meet the future needs of the countrys armed forces.

It is developing the gun on its own with a technology partner and has hired 60

experts for its development.

INR1 billion

Ministry of

Defence

The defence ministry is purchasing six Mi-17 V-5 helicop-ters from Russia to be used

by the Union Home Ministry to assist the forces in internal security duties.

These helicopters are being built by Russian Helicopters Kazan Helicopter Factory

(KVZ) subsidiary.

NA

Hindustan

Aeronautics Ltd.

(HAL)

A new unit of HAL at Seethangoli, Kerala was inaugurated in February. The unit

will prepare indigenous designs and assemble components purchased from abroad

for the armed forces aircraft and choppers and state-of-the-art communicationequipment, radio altimeter used in radar devices and navigation radar computers.

NA

Eye on defence | 19


20/31


Bharat

Electronics (BEL)

The Coast Guard has selected Bharat Electronics (BEL) to provide turnkey

surveillance solution.

BEL has also given a contract to Obzerv Technologies to supply it with 46 ARGC-

2400 cameras.

This program is the rst phase of the Indian coastal surveillance project designed tocover the entire coast.

NA

Russian

airplane-building

corporation

(RAC)-MiG

Russian airplane-building corporation (RAC)-MiG completed supply of ship borne

ghters MiG-29K/KUB in-tended for aircraft-carrier Vikramaditya to the navy of

India in late 2011.

The contract on supply of 16 combat airplanes in the single-seat version K (ship

borne) and double-seat version KUB (ship borne combat training) was signed in

2004.

The company has already started production of the next batch of 29 such ghters in

accordance with the additional contract signed with India in March 2010.

NA

Indian Rotorcraft

Indian Rotorcraft, a JV company of Tata Sons and Agusta Westland, has proposed

to set up an assembly line for helicopters in Hyderbad on a 10-acre site. The JV willcommence production from June 2013 and will initially produce the eight-seater

AW119Ke light helicopter.

The facility will be capable of producing up to 30 helicopters per annum.

NA

Tata Power

Strategic

Electronics

Division (SED)

New Zealand-based Radiola Aerospace Limited has won a four-year contract

to undertake ight inspections of new navigation aids at 30 military airelds

throughout India.

The contract is awarded by TATA Power SED. Tata Power SED holds a prime contract

with the Indian MoD to modernize the facilities at airelds operated by the Indian Air

Force.

NA

*The values of the deals have been converted to Indian Rupees using Oanda currency conversion tool

1US$ = INR51.8521 (Values as on 31 March 2012)

Eye on defence | 20


21/31

Joint ventures and alliances

Name of entities Nature of transaction Value

DCNS and SEC

Indus-tries

DCNS, a French naval defence company signed a contract (through DCNS India) with

Hyderabad-based SEC Industries for the local manufacturing of equipment for the

P75 Scorpene submarines.

SEC will manufacture equipment under a TOT provided by DCNS India and they will

be delivered to its customer, Mazagon Dock Limited (MDL).

INR3.1 bil-lion

Larsen & Toubro

and Thalest Ltd.

The electrical and automation business division of L&T acquired Thalest, UK-based

provider of ship control and automation systems.

The acquisition is aimed at expanding the automation offerings for ships.

INR240 million

Industria

de Turbo

Propulsores

and Reginson

Engineering Ltd.

and Raghu Vamsi

Spanish manufacturer of turbines for aircraft engines, Industria de Turbo

Propulsores (ITP), in alliance with British rm Reginson Engineering Ltd. and Indian

rm Raghu Vamsi have set up a plant in India with an objective of ex-pansion and

diversication.

The agreement was signed by ITPs subsidiary Tuberias Aeronauticas with the local

rms.

The production output is planned to double in 2014 whereas the number of

employees will be more than 100 people.

INR165.98 million

Reliance

Industries Ltd.

and Dassault

Reliance Industries Ltd. (RIL) and French Dassault Aviation SA have signed a

preliminary agreement to explore defence projects in alliance.

The two companies are yet to identify areas where they can collectively work.

NA

TTI, Inc. and

Radiant Corp

TTI entered an agreement with Radiant Corporation to supply interconnects,

electromechanical, and passive (IP&E) components.

Radiant manufactures its own requirements of composite cables and recently

entered the eld of aviation grade cable looms and wiring harnesses to participate in

the growing offset business generated as a result of aircraft supply contracts to the

Indian Armed Forces.

NA

Mahindra andMahindra and

Rafael

Mahindra & Mahindra announced its JV with Rafael that will focus on developmentand manufacturing of products such as Torpedo Defence Systems, Electronic

Warfare Systems, Advanced Armour Solutions and Remotely Operated Weapon

Stations for Futuristic Infantry Combat Vehicles (FICV).

A manufacturing facility is expected to be set up in Pune. Mahindra will own a 74%

stake in the JV with Rafael and is expecting a turnover of US$500 million in the next

10 years.

NA

Larsen & Tubro

and Nexter

Larsen & Tubro signed an agreement with French defence products company Nexter

to jointly bid for the Indian armys artillery gun programs.

Nexter is expected to transfer technology for its towed and mounted gun systems to

L&T. The Indian company plans to assemble Nexters Caesar and Trajan guns in India.

NA

Eye on defence | 21


22/31

Name of entities Nature of transaction Value

Larsen & Toubro

and Samsung

Techwin Co.

Larsen & Toubro Ltd. entered an agreement with South Korean defence products

company Samsung Techwin Co. to make howitzer guns in India.

The companies have already submitted a bid to supply up to 100 guns to the Indian

army.

NA

Selex Galileo andData Patterns

Pvt. Ltd.

Selex Galileo and Data Patterns (India) Pvt. Ltd. will seek approval from the GoI toform a JV to make defence electronics products. The two companies will establish a

new facility at Chennai.

Selex Galileo will hold a 26% stake in the planned joint ven-ture (JV) and plans to

employ 100 people initially.

NA

ITT Exelis and

Tata Advanced

Systems (TASL)

ITT Exelis and Tata Advanced Systems Limited have formed a strategic alliance to

support Generation (Gen) 3 night vision requirements in India.

ITT Exelis will provide TASL with the technology to build night vision devices in

India, which will be followed by manufacture of high precision components and sub-

assemblies of the devices by TASL.

NA

DHS Systems

and BharatElectronics

DHS Systems International, manufacturer of shelters entered Indian market,

through a long term deal with Bharat Electronics Limiteds Navi Mumbai unit.

DHS Systems International aims to generate revenue of INR1billion in the next

three years from the defence and health care sectors in India and also set up a

manufactur-ing facility by 2015.

NA

DCNS and IIT

Bombay

Naval Defence Company, DCNS entered an agreement with IIT Bombay for

education and research programs in naval defence and energy.

According to the MoU, R&D programs will be carried out jointly by IIT Bombay and

DCNS Research teams while training of DCNS personnel will be conducted by IIT

Bombay.

NA

Eye on defence | 22


23/31

Country-level deals and initiatives

Country Nature of transaction Additional details

US For the rst time in Indo-US war games, the Americans

will deploy their tanks in the company-level Exercise

Yudhabhyas scheduled to be held in the Mahajan eld

ring ranges in the Rajasthan desert in March.

Apart from elding three tanks, the US will also deploy

around 200 men accompanied by armored personnel

carriers for the war games.

India will le its Russian-origin BMPs along with tanks for

the war game.

Russia The MoD plans to purchase six Mi-17 V-5 heli-copters

from Russia to be used by the Union Home Ministry.

Through the purchase, the Ministry will assist its forces

engaged in internal security duties. These helicopters

are being built by Russian Helicopters Kazan Helicopter

Factory (KVZ) subsidiary.

Currently, the defence ministry is negotiating purchase of

59 Mi-17 s after its rst order of 80 such helicopters to

the Russian company.

Brazil

(Defence talks)

The talks between the Defence ministers of India and

Brazil were held in India in February 2012.

Topics of discussion revolved around cooperation in the

naval sector to build aircraft carriers and submarines ofthe Scorpene class, expansion of the existing vacancies

for exchange of military ofcers, and courses of higher

education offered by the military schools of both

countries.

Other key areas on the agenda included talks on

partnerships between Brazilian and Indian armies to

establish research centers for development of defence

equipment that meet the future needs such as the

Border Monitoring System (Sisfron), talks related to theirrespective air forces, exchanges between schools of

pilots, aerospace medicine, search and rescue operations

and parachuting.

A u st ra l ia T he S oc i et y o f I nd i an A e ro sp a ce a n d Te ch n ol - og i es

(SIATI) and Aviation Aerospace Australia (AAA) have

forayed into a long-term pact to jointly develop the

aerospace industry in both the countries.

The agreement has signaled a new level of cooperation

and the collaboration is likely to help both the

organizations to share knowledge, develop domain

expertise and transfer skills.

S i ng a po re A i r C h ie f M a rs h al N A K B ro wn e, C h ie f o f t h e A i r S ta ff,

went on a four day Defence Cooperation visit to

Singapore.

The discussion issues revolved around the ongoing

defence cooperation between the two countries toward

expanding the already robust bilateral military-to-military

ties and also a visit the Singapore Air Show.S r i L a nk a I na u gu ra l d ef en ce d i al o g h as t a ke n p l ac e b e -t we e n t h e

Defence Secretaries of India and Sri Lanka.

Regional security situation including issues of maritime

security in the Indian Ocean region were the key themes

at the inaugural annual defence dialog.

J ap an J ap an es e d el eg at io n l ed b y A dm ira l H is ay as u S uz uk i,

the Commandant, Japan Coast Guard (JCG), for the XI

High Level Meeting and Combined Exercises met with the

Indian Coast Guard (ICG).

The ve-day visit, was in pursuance of the Memorandum

of Cooperation (MoC), signed between the two Coast

Guards on 24 November 2006, which stipulates that the

heads of the two organizations meet alternately in India

and Japan, to discuss maritime issues of mutual concerns

and formulate a cooperative approach to address these.

S audi Arabia The Indian and S audi armed forces are likely to conduct

joint exercises involving S audi and Indian ship visits from

both sides and to work closely to combat sea piracy.

The joint committee will also prepare a draft agreement

that will be endorsed by both sides in the eld of

hydography. The two sides intend to discuss the details of

their future defence cooperation, including the details of

an agreement in the defence sector.

Eye on defence | 23


24/31

Industry buzz

Stronger role of private sector

in Defence

The private sectors role in the Defence

sector is likely to get strengthened, under

the Armed Forces Long-term Integrated

Perspective Plan soon to be made public by

the Union Government. Under the 15-year

plan, the private sector will have a greater

role in meeting the requirements of the

armed forces, in terms of investment and

in research and development of technology

such as electronic warfare.

(Source: Greater role for private parties in

Defence sector, The Hindu, 23 February

2012, via Factiva, 2012 Kasturi & Sons

Ltd.)

Electronic warfare proposition

attractive for India

India could soon get access to electronic

warfare (EW), the science of electronically

dodging and attacking the enemy, with an

INR250 billion business proposition awaiting

the countrys public and private sectors.

The countrys military labs were equipping

the three forces with futuristic EW or

intelligent devices, including radar warners,

missile warners, electronic and leak-proof

communication intelligence, jammers and

detectors. These will be tted on ground

vehicles, ships and also on unmanned

combat air vehicles, ghter planes and even

future satellites to enhance the militarys

seeing and hearing ranges. Currently,

Bharat Electronics Ltd, (BEL) is a major

provider of EW hardware and solutions to

the military.

(Source: Electronic warfare offers Rs

25,000-cr biz for India Inc., Business Line

(The Hindu), 22 February 2012, via Factiva,

2012 The Hindu Business Line.)

Government extends support on

Defence PSU JVs

The ofcial guidelines on formation of a JV

by Defence PSUs are an attempt toward a

fair and transparent framework to enable

such tie-ups. A case in point is the recent

controversy around the JV by Mazagon

Dock Ltd., a shipbuilder under the Ministry

of Defence, with the privately promoted

Pipavav Shipyard for constructing warships

for the Navy. The GoI is responding to these

concerns, with the guidelines containing

provisions on selection of JV partners by the

Defence PSUs.

(Source: In defence of joint ventures,

Business Line (The Hindu), 13 February

2012, via Factiva, 2012 The Hindu Business

Line.)

Indian records success in missile

test re

India has achieved another defence

milestone by successfully ight-testing one

of its sophisticated in-terceptor missiles

from Wheeler Island in Orissas Bhadrak

district. The interceptor named Advanced

Air Defence (AAD), destroyed a target

missile. The test was part of a coordinated

air defence exercise, which featured twomissiles an interceptor and a target

missile.

(Source: Advanced interceptor missile test-

red successfully, The Times of India, 12

February 2012, via Factiva, 2012 The Times

of India Group.)

Eye on defence | 24


25/31

Ministry of Defence debars rms

The Ministry of Defence has debarred six

rms M/s Singapore Technologies Kinetics

Ltd. (STK), M/s Israel Military Industries Ltd.,

M/s Rheinmetall Air Defence, Zurich, M/s

Corporation Defence, Russia, M/s TS Kisan &

Co. Pvt. Ltd., New Delhi and M/s RK Machine

Tools Ltd., Ludhiana from further business

dealings with the Ordnance Factory Board,

Department of Defence Production, MoD,

for a period of ten years. The rms have

been blacklisted by the CBI on the evidence

collected against them.

(Source: MoD Debars Six Firms from

Business Dealings for Ten Years, Press

Information Bureau website, http://pib.nic.

in/newsite/AdvSearch.aspx, accessed 15

March 2012.)

Indian IT majors work hard to

lure MNC defence players

Indian IT companies are working hard

to forge partnerships with aerospace

majors, as the countrys defence budget is

expected to reach US$50 billion in the next

three years. Software rms are exploring

opportunities arising from offset obligations

of multinational defence companies as IT

adoption related to communication, human

and machine management in Armed Forces

is on the rise. According to the offset policy,

foreign defence manufacturers have to

buy from local players or form JVs to pass

back 30% of the cost of the contract. A casein example is the Wipros tie-up with an

European organization for manufacturing

and global supply of actuators for landing

gears.

(Source: Software cos aggressive on

defence offset policy, Financial Express, 14

February 2012, via Factiva, 2012 Indian

Express Online Media Pvt. Ltd.)

Hatsoff simulator receives LevelD certication

A JV of HAL and CAE, Helicopter Academy

to Train by Simulation of Flying (Hatsoff)

recently announced that one of its simulator

cockpits has received a certication of

Level D. Level D is the highest qualication

for ight simulators and Hatsoff has got

the certication for Eurocopter AS365

N3 Dauphin helicopter. Indias Directorate

General of Civil Aviation and the European

Aviation Safety Agency (EASA) have given

the certication. Further, its three simulator

cockpits-a Bell 412, a HAL civil/conventional

Dhruv, and the Eurocopter AS365 N3

Dauphin-have been certied as Level 2

(JAR)/Level 6 (FAA) ight-training devices

when used as xed-base, non-motion

simulators in the docking station installed at

the facility.

(Source: Simulator gets regulators nod,

DNA - Daily News & Analysis, 13 January

2012, via Factiva, 2012 Diligent Media

Corporation Ltd.)

First batch of Mi-17V-5

helicopters made operational in

India

The rst batch of Mi-17V-5s, delivered as

per the contract signed in 2008, has been

made operational by the Indian Air Forces.

A contract on 80 Mi-17V-5s had been

signed in 2008. Around 20 helicoptershave already been delivered to India. These

vehicles are being produced by Kazan

helicopter plant. All 80 helicopters are

expected to be operational by 2014.

(Source: India puts rst Mi-17V-5

helicopters into operation, SKRIN

Newswire, 20 February 2012, via Factiva,

2012 SKRIN.)

Delivery of six Scorpenesubmarines delayed

The delivery of six Scorpene submarines,

being constructed at the Mazagon Dock

Limited (MDL), Mumbai, under Project-75

has been delayed. The delivery schedule

of the rst submarine has been revised to

June 2015 and that of the last submarine

to September 2018. The original delivery

schedule for the rst submarine was

December 2012 and the remaining were to

be delivered with a gap of one year each.

The delay in schedule is because of problems

in absorption of new technology, delay in

augmentation of industrial infrastructure

at MDL and delay in procurement of items

due to high cost as compared to the earlier

indicated cost.

(Source: Delivery of Scorpene submarines

delayed: Govt, 19 March 2012, Press Trust

of India Limited, via Factiva, (c) 2012 Asia

Pulse Pty Limited.)

Cochin Shipyard provides

platform supply vessels to SCI

Indian shipbuilder, Cochin Shipyard Ltd.,

has launched two platform supply vessels

for water transport company Shipping

Corporation of India (SCI). The ships, BY-85,

SCI Nalanda, and BY-86, SCI Yamuna, are

platform supply vessels of the UT 755 CD

type, designed by Rolls-Royce Marine AS,

Norway, a subsidiary of UK engineeringgroup Rolls-Royce Group plc.

(Source: Cochin Shipyard launches platform

supply ships for SCI, SeeNews Shipping,

9 January 2012, via Factiva, 2012

SeeNews.)

Eye on defence | 25


26/31

Police department will getaccess to Electronic warfare

technologies

India is set to develop electronic warfare

technologies to help paramilitary and police

ght the Maoists and terrorists. Defence

Research and Development Organisations

(DRDO) Chief Controller Research and

Development (Avionics) G. Elangovan said

that the agency has created a separate chief

controller (R&D) for low intensity conict

to identify electronic warfare technologiesthat can be customized to help paramilitary

and police meet internal security needs. The

DRDO intends to involve the private sector

in co-developing niche products required

for low-intensity conict with anti-national

elements within the country.

(Source: Electronic warfare technologies

to be developed for police, Indo-Asian News

Service, 22 February 2012, via Factiva,

2012 Indo-Asian News Service.)

IBMs security intelligence

platform to ght cyber attacks

IBMs QRadar Security Intelligence Platform

allows analysis of real-time data feeds

from more than 400 different sources. The

company mentioned that this platform helps

in identifying threats and hackers with real-

time analysis of the trafc on the corporate

IT infrastructure.

(Source: IBMs QRadar Security to ght

against cyber attacks!, EFYtimes.com, 23

February 2012, via Factiva, 2012 EFY

Enterprises Pvt. Ltd.)

Mahindra Aerospace likely toset up plant abroad

Mahindra Aerospace, the aerospace

division of Mahindra & Mahindra Group is

considering setting up plants for 8- to18-

seater aircraft in the US, Canada, Latin

America and China. This is being done to

establish its presence among these markets.

Mahindra has plans to increase its business

ve-fold by selling approximately 100

aircraft annually by 2015. The company

is also looking for a potential technology

partner as well as a hanger to build its own

aircraft in India by 201314. It also aims

to become a Tier I component supplier to

aircraft makers Airbus and Boeing as part

of the governments US$10-billion offset

program.

(Source: Ketan Thakkar, Mahindra Aero

Plans Aircraft Assembly Abroad, 23 March

2012, via Factiva, The Economic Times

Bangalore Edition, 2012. Bennett,

Coleman & Co., Ltd.)

Tatas may make choppers if

Sikorsky bags defence deal

Sikorsky Aircraft Co, a US-based aircraft

manufacturer is among the two companies

shortlisted by the Ministry of Defence (MoD)

to supply 16 multi-role helicopters to the

Indian Navy in a US$1 billion deal. It is

currently awaiting a license from the GoI

to manufacture components and assemble

helicopters for the Indian defence services.

Tata Sikorsky Aerostructures, joint-venture

with Tata Advanced Systems Ltd, is likely to

benet if Sikorsky bags the defence deal.

(Source: K V Ramana,Tatas may make

choppers if Sikorsky bags defence deal,4

April 2012, DNA Money, via Factiva, 2012.

Diligent Media Corporation Ltd.)

Indian rms to provide food andclothing for space mission

Two life science laboratories of the Defence

Research Development Organisation (DRDO)

will provide food and clothing for the

Indian astronauts ( Vyomanauts), during

the countrys rst human space mission.

The Mysore-based Defence Food Research

Laboratory (DFRL) will provide ready-to-eat

food in space, the Defence Bioengineering

and Electromedical Laboratory (Debel) (both

under DRDO) will design and produce the

space suits for the rst vyomanauts of India.

Bengaluru-based Debel, which has already

developed Nuclear Biological and Chemical

(NBC) protection suits, ight clothing and

protective equipment for air crew, has been

assigned to develop the highly complex

space suits. It is the rst time that space

suits will be developed in India.

(Source: Debel to develop suits for

astronauts, DNA - Daily News & Analysis,

13 February 2012, via Factiva, 2012

Diligent Media Corporation Ltd.)

DRDO launches explosive

detection kits

DRDO launched the Explosive Detection

Kit (EDK) at the Defence Expo 2012.

It was chosen among more than 70

products and technologies developed for

defence applications with potential civilian

applications that have been identied for

commercialization under the DRDO-FICCI

ATAC (Accelerated Technology Assessment

Commercialization) programme. The

Explosive Detection Kit (EDK), developed by

Pune based High Energy Materials Research

Laboratory, can quickly detect and identify

even traces of explosives.

(Source: DRDO to Launch Explosive

Detection and Swine Flu Diagnostic

Kits at DEFEXPO, Press In-formation

Bureau website, http://pib.nic.in/newsite/

AdvSearch.aspx, accessed 17 April 2012.)

Eye on defence | 26


27/31

Ashok Leyland launches COLTrange of defence vehicles

Ashok Leyland Defence Systems engaged in

the manufacture of specialized tactical and

armored vehicles unveiled the rst of the

range of COLT tactical vehicles - the Light

Tactical Vehicle (4x4) at the Defence Expo

2012. The Light Tactical Vehicle is being

developed its strategic partnership with

French-based, Panhard General Defense,

France.

(Source: Ashok Leyland Defence Systemsunveils the COLT range of tactical vehicle,

30 March 2012, ENP NewsWire, 2012,

Electronic News Publishing.)

Tata Motors showcases anti-terrorist combat vehicle

and launches Prahar missile

launcher and armored vehicles

at Defence Expo India 2012

Tata Motors showcased a new Micro Bullet-

Proof Vehicle (MBPV) at DEFEXPO India

2012, a mobile combat vehicle for indoor

combat inside airports, railway stations

and other such infrastructure. Tata Motors

launched four other defence vehicles the

Tata 12x12 Prahaar Missile Carrier, the Tata

Light Armoured Vehicle, the Tata Mobile

Bunker and the Tata 6x6 7kl Refueler during

the event.

(Source: Tata Motors showcases Anti-

Terrorist Indoor Combat Vehicle concept

at DEFEXPO India 2012; Launches Prahar

missile launcher and armoured vehicles, 30

March 2012, ENP Newswire, via Factiva, (c)

2012, Electronic News Publishing.)

Eye on defence | 27


28/31

Sources

1. Aircraft component manufacturing unit in Bangalore; Internationa l Aerospace

Manufacturing is implementing an aircraft component manufacturing project in dist.

Bangalore, Karnataka, Domex New Engineering & Metallurgical Projects, 25 January 2012,

via Dow Jones Factiva, 2012 Domex Business Information Pvt Ltd.

2. Indian Navy inducts INS Chakra, Domain-B, 24 January 2012, via Factiva, 2012 The

Information Company Pvt. Ltd.

3. Indian govt planning two Ipos to raise funds,Asia Pulse, 24 January 2012, via Factiva, 2012 Asia Pulse Pty Limited.

4. Expansion: ITP opens rst parts plant in Asia, Expansin, 24 January 2012, via Factiva,

2012 AII Data Processing Ltd.

5. HHV to expand with a third plant around Bangalore, Industry 2.0, 23 January 2012, via

Factiva, 2012 Nine Dot Nine Mediaworx Pvt. Ltd.

6. Obzerv Technologi es gets Bharat Electronics contract, Entertainment Close-Up, 23

January 2012, via Factiva, 2012 Close-Up Media, Inc.

7. Rs 10,030 crore plan to link India with choppers, The Economic Times, 23 January 2012,

via Factiva, 2012 The Times of India Group.

8. Plan panel to allocate Rs 5k crore to develop civilian plane, The Press Trust of India

Limited, 22 January 2012, via Dow Jones Factiva, 2012 Asia Pulse Pty Limited.

9. CCS to discuss Rs1850 crore proposal for 75 trainer aircraft, The Press Trust of India

Limited, 15 January 2012, via Factiva, 2012 Asia Pulse Pty Limited.

10. MHA to buy 6 Mi-17 copters from Russia,The Times of India, 4 February 2012, via

Factiva, 2012 Bennett, Coleman & Co., Ltd.

11. Brazilian def min arrives here on Feb 4 on 5-day visit, United News of India, 2 February

2012, via Factiva, 2012 United News Of India.

12. BrahMos missile to be integrated at BATL in two years, The Hindu, 2 February 2012, via

Factiva, 2012 Kasturi & Sons Ltd.

13. Bumar sells $300m vehicles to India, Polish News Bulletin, 21 January 2012, via Factiva,

PNB Company Ltd. 2012.

14. RIL, Dassault in talks for defence venture, Indian Express, 14 February 2012, via Factiva,

2012 Indian Express Online Media Pvt. Ltd.15. HAL prepares to manufacture Rafale combat jet in India, Indo-Asian News Service, 13

February 2012, via Factiva, 2012 Indo-Asian News Service.

16. IAF Chief Leads Delegation to Singapore, Press Information Bureau website, http://pib.

nic.in/newsite/AdvSearch.aspx, accessed 15 March 2012.

17. India, Sri Lanka hold Inaugural Defence Dialogue, Press Information Bureau website,

http://pib.nic.in/newsite/AdvSearch.aspx, accessed 15 March 2012.

18. India, Japan Coast Guard Meeting and Combined Exercises Conclude, Press Information

Bureau website, http://pib.nic.in/newsite/AdvSearch.aspx, accessed 15 March 2012.

19. Opto to partner German rm to supply AEDs to aircraft makers,The Press Trust of India

Limited, 2 February 2012, 2012 Asia Pulse Pty Limited.

20. Antony to inaugurate HAL unit in February, The Hindu, 19 January 2012, via Factiva,2012 Kasturi & Sons Ltd.

Eye on defence | 28


29/31

21. Russia will start supplying mig-29 to India under the contract of 2010 in 2012, WPS:

Defense & Security, 13 January 2012, via Factiva, 2012 WPS Russian Media Monitoring

Agency.

22. Joint team to prepare road map for Saudi-India defense cooperation,Arab News, 15

February 2012, via Factiva, 2012 Arab News.

23. M&M inks two defence JVs,Hindustan Times, 31 March 2012, , via Factiva, HT Media

Limited.24. Hyderabad to host missile productio n unit, Bureaucracy Today, 20 March 2012, via

Factiva.

25. Rs 7,000 cr to be invested to set up 9 defence units, Business Line (The Hindu), 19 March

2012, via Factiva, 2012 The Hindu Business Line.

26. TTI Announces Supply Agreement with Radiant Corporation India,15 March 2012, ENP

Newswire, via Factiva, 2012 Electronic News Publishing)

27. M&M inks 2 defence JVs, 31 March 2012, Hindustan Times, via Factiva, 2012. HT

Media Limited.

28. DCNS, Bombay IIT ink MoU for programs in naval defence, energy, 31 Marc h 2012, The

Press Trust of India Limited, via Factiva, 2012 Asia Pulse Pty Limited.

29. Larsen, Nexter Sign Pact To Bid For Indian Armys Artillery Gun Programs, 30 March

2012, Dow Jones Business News, via Factiva.

30. Santanu Choudhury, Finmeccanica Unit Selex Galileo, Indias Data Patterns Plan Defense

Electronics JV, 30 March 2012, Dow Jones International News, via Factiva, (c) 2012 Dow

Jones & Company, Inc.

31. Kalyani Group Executive: To Invest INR1 Bln To Develop Towed Artillery Gun, 29 March

2012, Dow Jones International News, via Factiva.

32. Nikhil Gulati, Tata Motors May Invest $59 Million in New Factory, 29 March 2012, The Wall

Street Journal Online, 2012 Dow Jones & Company.

33. DHS Systems signs MOU with Bharat Electronics, India Infoline News Service, 29 March

2012, via Factiva.

34. BEML Puts up Aerospace Manufacturing Complex at SEZ, Bangalore, 4 April 2012, Press

Trust of India, via Factiva.35. Indian Rotorcraft to set up copter facility at Hyderabad, Project Monitor, 28 March 2012,

via Factiva, 2012 Economic Research India Pvt. Ltd.

36. Electronics Companies; Smiths Detection Wins $20M Indian Customs Contract, Journal of

India, 27 March 2012, via Factiva, 2012 Journal of India via VerticalNews.com.

37. Upgradation of Mirage aircraft, Indian Government News, 26 March 2012, via Factiva,

2012. HT Media Limited.

38. DCNS signs with SEC Industries a contract for the local manufacture of equipment for

the Indian Scorpene submarines, ENP Newswire, 26 March 2012, via Factiva, 2012,

Electronic News Pub-lishing.

39. Mahindra Aero Plans Aircraft Assembly Abroad, The Economic Times - Bangalore Edition,

23 March 2012, via Factiva, 2012, Bennett, Coleman & Co., Ltd.

40. Radiola Aerospace lands plumb Indian contract, Fuseworks Media, 21 March 2012, via

Factiva, 2012 Fuseworks Limited.

41. Y. Mallikarjun, Pratt & Whitney plans to invest $150 m, 20 March 2012

Eye on defence | 29


30/31

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