Eye on Defense January 2012
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Transcript of Eye on Defense January 2012
• Needforoffsetmonitoringandasuitablesolution 2
• Electronicfuze:opportunitiesandmarketpotential 8
• Tier-1vendorsnowpermittedtoexecuteoffsetobligations 14
• RequestforInformation(RFIs) 16
• RequestforProposal(RFPs) 17
• ListofIndustrialLicenses(ILs)filedfrom01/09/2011TO31/10/2011 19
• ListofIndustrialLicenses(ILs)filedfrom01/11/2011TO31/12/2011 20
• Newprojects/investments/contracts 21
• Country-leveldealsandinitiatives 23
• Industrybuzz 24
• Sources 29
January2012 Eye on defence
DearReaders,
TheIndiandefenceindustryisenteringanexcitingphasewiththeGovernmentofIndiaembarkingonrapidindigenization.ThegrowingimportancecanbegaugedbytheproposedinclusionofdefenceintheTwelfthFiveYearPlan(2012–17).
Amidstthisrapidlychanginglandscape,wearepleasedtopresenttheEyeonDefence,Ernst&Young’squarterlynewsletterondefencefortheperiodOctober-December2011.ThisissueofEye
onDefencecoverskeytopics,whichincludetheurgentneedtomonitoroffsetsandthemarketopportunitiesforrelativelynewtechnologyprod-uctssuchaselectronicfuze.WiththerecentamendmentinDPP-2011allowingthetier-1supplierstodischargeoff-setobligations,welookforwardtohelptheIndianindustryidentifysuchsuppliersonaparticularprogram.Amongtheregularsectionsthereareindustriallicenseapplicants,newprojectsandinvestments,jointventuresandal-liances,country-leveldealsandthelatestbuzzintheindustry.
Wehopeyouenjoyreadingthisissue.Ithasbeenourconstantendeavortomakethispublicationmorerelevanttoyouandwouldappreciateyourcommentsandsuggestionsinthisregard.
K. Ganesh RajPartnerandLeaderAerospaceandDefencePractice
Need for offset monitoring and a suitable solutionBackgroundWithMMRCAbecomingarealityinthenearfuture,aUS$6–7billionofbusinessfortheIndianindustryisexpectedfromthisonesingleprogram.SincetheinclusionofoffsetsinDPP2006,contractsworthINR140billionhavealreadybeensignedbytheIndianindustrywithforeignOEMsunderoffsetsaloneandareundervariousstagesofimplementation.However,therearemanymoreexcitingopportunitiesintermsofbusinesspotentialinoffsets,intheverynearfuture.IndustryinIndia,hastakenthisopportunityseriouslytilldatebothrelatingtocurrentopportunitiesandtheonesalreadyaccorded.Industrybuzzis,“Isittruethatsomanyhundredsofcroresofoffsetsarebeingdischarged,ifsowherearetheyandwhoarethebeneficiaries?”
TheoffsetsopportunitycreatedbytheGovernmentofIndia(GoI)wasintendedtoactasanenablertoallowaconsiderablesegmentoftheIndianindustrytobeapartofthedefenceindustry,therebycreatinganenvironmentforseriousdefencemanufacturing.Therestrictiveregimesprevalentinthepastcreatedthemonopolyofthedefencepublicsectorenterprises,sincethedefencesectorenjoyedspecialtreatment.Openingofthedefencesectortoprivateparticipationin2001,witharestrictionof26%FDI,bothsubjecttolicensingwasindeedavisionarystep(consideringthehighlyrestrictiveregimesprevalentaswellasthereluctancetohaveanopenmindtowardthissector)tounleashthepotentialintheprivateindustries,whichhithertohavedoneexceedinglywellinothersectors.Thisimpliesthattoday,theMinistryofDefence(MoD)willhavetodealwithafigureofapproximately30,000companieswhenanyreferenceismadetothedefencesector.
InclusionofadedicatedAppendixonoffsetsintheDefenceProcurementProcedure(DPP)2005wasreallythefirststeptowardsettingouttorepatriateaportionoftheforeignexchangeoutgo,towardgeneratingdefencebusiness.DetailedoffsetguidelinesincorporatedinDPP2006,speltoutthescopeandmethodsofoffsetdischarge,besidesamodusoperandiforevaluationandacceptance,signingofcontractandabriefmentiononoffsetmonitoring.Thisiswellintendedandmadeonpurpose,sincethatwasindeedthebeginningandthefocuswasrightlyonthescopeandmethodsofdischargeofoffsets.
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AimWeareintothesixthyearsincetheprocedurewasformulatedfordischargeofoffsetsandtimeisripetoseriouslyconsideramonitoringmechanismforoffsetscontractsthattheGoIhasentered.
Theaimofthisarticleistoanalyzethepresentorganizationforoffsetmonitoringandtosuggestasuitablestructure.
NeedTheneedforoffsetmonitoringisparamountforcomplianceandadherencetothestatedcontractthatincludesanoffsetschedule.Anumberofdeductionscanbedrawnfromacarefulanalysisofthemonitoringmechanism,whichcouldpotentiallybehelpfultotheadministeringauthoritiestobeabletorefineorevenredefinethepoliciesforfutureaswellasformulatedetailedguidelinesforevaluationandacceptance.Thus,theoffsetschedule,whichformsanintegralpartofthecontract,canbemorepragmaticandpractical,ensuringeffectiveimplementation.AnalysisofsomeofthemethodsadoptedbyOEMsinactualdischargeofoffsetswillsuggestwhethertheimplementationofoffsetswasinconformationwiththespiritofthepolicyoronlynamesakeadherence.
Thus,thereisaneedforaneffectiveorganizationtomonitoroffsets,bothtoensurecomplianceandforananalysistotriggerforrefinementintheprocedures.Thesheervolumeoftheoffsetsbusinesstriggerstheneedforaneffectivemonitoringorganization.ItisbelievedthatmorethanINR140billionoffsets,havebeensignedandmorethanINR500billionareintheoffinginthenextfiveyears.
Divided responsibilityTheorganizationwehavenowcanbetermedaseitherdividedresponsibilityortobemoreprecisedistributedresponsibility.Currently,theMoDhasconstitutedanOffsetMonitoringCellundertheDDPforthisratherenormoustask.ItwillbeinterestingtoseehowtheMoDorganizeditselftocarryoutthisgigantictaskthatsetsaspirationsintheindustry,bothdomesticandinternational.
Amongthe130oddcountriesthathavebeenpracticingoffsetsevenbeforeIndiaimplementedthem,nonehave,eveninconcept,anorganizationsuchasDOFA(DefenseOffsetFacilitationAgency).TheIndianMoDisthefirstintheworld,tohaveconstitutedaDOFApurelyforfacilitationandalsoputtheentireDPPopenlyonagovernmentwebsite.ItisnoteasytohaveaccesstotheOffsetPoliciesofothercountriesandonehastogettheinformationfromthirdpartysourcesinconferencesandseminars.Thisisbyfar,awonderfulconcept,excellentideabutunfortunatelynotimplementedinthebestpossiblemanner.
WehavetheDG(Acquisition)andtheentireacquisitionwingunderhim,whichisfocusedontheacquisitionofweaponsystemsfortheArmedForcesandtheDOFAundertheDDP(DepartmentofDefenceProduction)forfacilitationofoffsetproposalsandexecution.Itisaverygoodconcept,sincetheDDPisasupportorganization,whichsupportsthepoliciesoftheMoDbyenergizingtheIndianindustry(readDPSUs).AlthoughthecharteroftheDDPwasDPSUs,itisbelievedthatithasbeenexpandedtoincludetheIndianindustryinitsentirety(notyetvisibleinmanyechelonsoftheIndianindustry).
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Suchasoundconceptwhenimplemented,tookshapeongroundtotranslateintothefollowing:
a. DG(Acquisition)processestheRFP,getstheresponses,constitutestheTOEC(TechnicalOffsetEvaluationCommittee),makesevaluations,accordsacceptanceofprojectsandfinallysignsthecontract.
b. DOFA(DefenceOffsetFacilitationAgency)undertheSecretaryDP(DefenseProduction)expectedtofacilitateimplementation,assistpotentialvendors,assistinvetting,assistinmonitoring,etc.ThelistoffunctionsoftheDOFAisalongone,whichishithertotooambitiousandseldomaddressedbytheorganizationduetoitsratherlimitedbandwidth.
c. AnOffsetMonitoringCellwasthereaftercreatedinadditiontotheabovethroughadepartmentalorder,in2008,underSecretaryDP.WhiletheDOFAwasunderJointSecretary(ElectronicSystems),theOffsetMonitoringCellwasfunctioningfromunderDirectorS1/S2,inthesupplieswingoftheDDP,underadifferentJointSecretary.EvenwithintheDDP,theresponsibilitywasfurtherdistributed.
d. ThencametheprovisionofBankingofOffsetCreditsinDPP2008,whichwascreatedundertheAdditionalSecretaryDP,withmembersfromallstakeholders,ofwhichtheChairmanDOFA,providedsecretarialsupport,withhelpfromtheOffsetMonitoringcell.
Ascanbeseenfromabove,theresponsibilityforoffsetswasdividedandtheOffsetMonitoringCell,whichprobablycomprisessomeofficialsofthesupplieswingofDDP,wereonmulti-taskingmode(asisthecasewithotherstoo,includingChairmanDOFA),andforalsomonitoringoffsetsinadditiontotheiroriginaltasks.EvenwithintheDDP,theinherentstrengthinthecreationofDOFAwasnotsustainedandaneworganizationwascreatedformonitoring,althoughitwasalsotoreporttoChairpersonDOFA.Lackofinformationandcoordination,arealsoinherentinsuchorganizationswithdistributedresponsibility,besidesvariousotherdrawbacks.While,duringtheplanningprocess,DDPisinvolvedinvariousServicesCapitalAcquisitionPlans(SCAP)committeesandtheCapitalAcquisitionPlan(CAP)sectionofDirectorateofPlanningandCoordinationhasthebaseknowledge,theDOFAandoffsetmonitoringcellaremostlywithdrawnfromthisentireprocessanddonotpossesstheknowledge,hithertoavailableattheplanningstages.TheDOFAandoffsetmonitoringcellcomeinatalaterstagewithoutthekeyknowledgeofacquisitionsprograms.ThisshouldnothavebeenaproblemiftheyDOFAwereonlyafacilitationagency.However,suchaprocessdoesnotfacilitatetheirintegrationintothewholegameofoffsets.
Ineffect,weseethat,DOFA,whichwasincorporatedundertheDDPasafacilitationagencyalone,alsoincorporatedintoitsresponsibilityandcharterofdutiescompletemonitoringofoffsetsinitsfunctionsduetoitsindustrybias.ThisisalsoincontrasttothecharterofDOFAspeltoutclearly,“toassistinmonitoringofoffsetprovisions(3.1(d)ofAppendixDtoDPP2011);asagainstcompletelyhandlingit.”
Thechallengestherefore,aretofindaneffectiveorganizationforoffsetmonitoring,adequatelystaffedandtechnologicallyequippedtomonitoroffsetcases,whicharesettoincreaseexponentially.
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Basic components of monitoringThebasiccomponentsofamonitoringprocessarebroadlysimilartothoseof“programmanagement”.Eachoffsetcontract,inanacquisitionprogram,isa“project”andtomanageallsuchindividualprojectsweneedprogrammanagement.Thevolumestobeencounteredinthisprogrammanagementaresubstantialandneedaveryeffectiveset-uptomanagethesame.Programmanagementisaboutdoingprojectsright.Andthisisdistinctlydifferentfromprojectmanagement,since,successfulprojectsaredeliveredontimeandareexecutedwithinbudgetandspecification.Successfulprograms,ontheotherhand,deliverlong-termimprovementstoanorganization,andtheMoDshoulddefinitelybefocusingonthat.Inthiscase,theterm“project”iscomplexwithdifferentIndianoffsetpartnersexecutingdifferenteligibleproductsandservices.
Therefore,offsetmonitoringmustessentiallybringtoforethebenefitsthata“programmanagement”functionwilldeliver;elsethisentirefunctionwillfailtodeliverontheconsiderablebenefitsthatcouldpotentiallyaccruetotheIndianindustry.Inlessthanfiveyearsofoffsetsbeingimplemented,contractsworthINR120billionhavebeensignedandimplementationisinvariousstagesofprogress,withlittleinformationonhowandwheretheintendedbenefitshaveactuallyaccrued.Itisnotevenknown,iftheindividualoffsetprojectswereindeedcompletedtothetotalsatisfactionoftheMoD.ThisismainlybecausetheMoDisyettoputinplaceaneffectivemonitoringmechanism,barringtheQuarterlyOffsetMonitoringreportthatissubmittedbytherespectiveOEMs.SomeorganizationinthesupplieswingoftheDDP,hithertounrelatedtoeithertheDOFAortheacquisitionprocess,withadualtaskingcannotbenominatedforsuchacriticalfunctionoftheacquisitionprocess.Inanycase,suchanorganizationcannotdomorethanamerebookkeepingfunction,atthehighestlevelofefficiency.
Therefore,theessentialingredientsinmonitoringofoffsetsprogramsarefollowing:
a. Monitoringeachindividualprojectforwhichoffsetscontractshavebeenconcludedforadherencetotheoffsetschedule.
b. Timeandcostover-runs,ifany,needstobemonitored.
c. Book-keepingofoffsetsdischarged,toensurethatthequarterlyreturnsandhalf-yearlyreturnsarefiledonschedulebytheOEMsandtheyareinconformationtothecontract.
d. AlistofforeignOEMsistobemaintainedforcomplianceandtosimultaneouslygeneratealistofIndianoffsetpartners(IOPs)whohavepartneredwithOEMs.
e. Concurrentlythelististobeupdatedforfreshcontractsawardedandalsotogenerateaproductprofile.
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f. AnalysisonsuchIOPsfordisplayofconcurrentproductprofilingandimprovementsaretobeshown.
g. Analysisontheperformanceofservicesvs.themanufacturingsectorindischargeofoffsetob-ligations,andcomparisonsofefficienciesthereofaretobecarriedout.Thiscouldpresentaverygoodpictureoftheinter-seperformanceamongvarioussectors.
h. Theacquisitionwingwillbeintimatedregardingnon-performanceofOEMswithregardtothecommitmentindischargeofoffsetsdespitereminders,forsuitablefollow-upaction.
i. Analysis,evaluationandapprovalofoffsetsdischargeforaccordofoffsetcredits,tobecarriedoutinnear-realtime.Thisisnotaschallengingasitmayseemandtheremustbeminimaldelaysinthisrespect.Unfortunately,theMoDfacesalotofflakinnon-performanceofthiscriticalfunctionandtheOEMsreportunduedelaysincreditingtheiroffsets,despitetheclaimsofcompletingthesame.Invariably,MoDdoesnotevenconsideritfittorespondtothequeriesoreventhereportssubmittedbytheindustry.SincethereisnoresponsefromtheGoI,theOEM’sversionprevails,forpublicconsumption.
Structure for monitoringMonitoringofoffsetsforimplementationisnotmerelyasimplisticjobofbookkeepingorprovidingreceiptsforthemailreceivedintheofficebythedispatchclerk.Thereneedstobelotmorethoughtinvolvedandthestructuremustflowfromthedesiretotargetachievablegoals.Themonitoringprocessmustprovidefoodforthoughttoshapefuturepolicies,provideremedialmeasuresforongoingprojectsandmanagetheprograminaneffectivemanner.
Monitoringmustincludesystemsengineeringandindustrialengineeringasmajordisciplinesbesidesaccountingandanalysis.ItmaybeagoodideafortheMoDtooutsourcethisfunctiontotheindustryassociations,whomayconstituteanindependentbody,chargedtofunctionundertheMoD’ssupervisionandreportingtotheMoD,whilemaintainingcorporatestandardsinrecruitmentandfunctioning.Thiscouldfollowthemodelofpublicprivatepartnership,onthelinesofAadhar.AdedicatedorganizationmustbecreatedforthisandbeintegratedintothefunctioningofMoD’scapitalacquisitionprocess.Thisisessentialtomakesurethattheorganizationisloadedwithadequateknowledgeandequippedwiththewherewithaltohandleunforeseensituationsinamoreeffectivemanner.Besidesotherbenefits,itwillensurecontinuityatleastatoneend.
Thestaffingforthisorganizationcouldbebothfromprivate,publicandgovernmentbodies,withsuitableincentives.ThestructuremustadheretothebasictenetsoffunctioningoftheMoD,tomaintainconfidentialityofdocumentswhileensuring,amonitoringfunctionwithadequatetransparencytoincludeallfacetsofprogrammanagement.Thestaffmustincludesystemengineering,productionengineering,technologyunderstandingandassessment,databasemanagement,ITprofessionalsandbedrivenbyastrategicpolicy-orientedanalyst.
TheorganizationmustbeabletomaintaincloseliaisonwiththeMoDtoincludeDG(Acquisition),HQIDS,Services,MOD(Finance),DRDOandDDP.SuitableintegrationatplanningstageswithMoDisnecessaryforanunderstandingofthecompleteprocess.Whiletheaimistoderivebenefitsofprogrammanagement,itmustberememberedthatthisisonlyamonitoringorganizationandmustbemandatedtoonlypost-contractmonitoringandforapprovedprogramsinoffsetbanking.
OutsourcingofsuchfunctionscanhelptheMoDtoderivebenefitsofcorporatebestpractices,enablethebestintheindustrytobehiredforthiscrucialjobandallowtheMoDtoconcentrateonformulationandrefinementofpolicies,evaluationofproposals,their
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interpretation,approvals,whilederivingthebenefitsofobtainingadetailedindustrialanalysis,outcomeevaluationsandanindependentoutoftheboxinput.Thisbodycouldalsobechargedwiththeresponsibilityoffacilitation,intermsofcreatingandsustainingacredibleindustrydatabasethroughwhichahighlevelprofessionaladvicecanbeofferedtotheOEMs.ThecredibilityofthisorganizationwillbehighsinceitwillenjoythebackingoftheGoIinhowsoeverasmallmanner.
Asastartingpoint,itissuggestedthattheMoDseriouslyconsideranoutsourcingmodelforthenon-serious,non-policyinvolved,non-sensitiveareasofimplementationtocredibleindustrybodies,throughsuitablepartnerships.Thisway,theindustrywillbeabletoputinplacethebestresourceforthejobandatthesametimebeabletoincorporatethebestpracticesgloballyforaneffectiveandefficientmonitoringsolution.Thiscanbedonethroughane-solutionincorporatingbestITpracticesaswellashandledthroughseriousbook-keeping.Anintegrationofbankingpractices,technologyassessmentwithactivesupportfromDRDO,industrypolicyinterpretationswithactiveliaisonwithMinistryofCommerce,internalsecurityrequirementsandtheirconsequentintegrationthroughliaisonwithMinistryofHomeAffairsandsimilarlyforcivilaviationthroughliaisonwithMinistryofCivilaviationandSTC,licensingnormsthroughinteractionwithSIA/DIPPetc.,willemerge.ThecorporatebodywillhavethebandwidthtobeabletoreachouttothevariousstakeholderswithinandoutsidetheGoI,tofindeffectiveandefficientsolutionstovarioussituations.ThebodycouldbestructuredtoactwithintheframeworkdefinedbytheMoDwithclearlylaiddowncharterforindependentactionandforactionwithconsultations.
Theneedofthehourisaneffectiveimplementationoftheoffsetprovisionsincorporatinganefficientmonitoringsolution.
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Electronic fuze: opportunities and market potentialAfuzeisadevicethatinitiatesanexplosivefunctioninammunition,causingittodetonateorreleaseitscontents,whenitsactivationconditionsaremet.Anartilleryfuzeisusedwithaprojectilefiredbyguns/howitzersandmortars.Thefuzedesignincorporatesthefollowingmechanisms:
a. Safetymechanism.Itprovidessafetywhileinstorageandtransportandinitialstageofflightbykeepingtheexplosivestrain(detonatorandmagazine)non-alignedfromthestriker.
b. Armingmechanism.Itarmsthefuzeatappropriatestageofflightbyremovingthesafeties.
c. Firingmechanism.Itfiresthefuzeonmeetingactivationconditions.
Thesafetyandarmingmechanismsusecombinationof“setback,centrifugalandrotational”forcestoarmthefuzeoncetheprojectileisfiredanditisatasafedistancefromthecrew.
Classification of fuzesFuzesarebroadlyclassifiedbasedonoperatingmechanismasmechanicalandelectronicfuzes,thoughsomechemicalandopticalfuzesarealsoinexistence.
a. Mechanicalfuzes
Mechanicalfuzes,asthenamesuggests,havetheirsafety,armingandfiringmechanismsconsistingmostlyofmechanicalcomponentsandlinkages.MechanicalfuzesarebroadlyclassifiedundercategoriessuchasPercussionFuzes,Directaction,GrazeDelayandTimefuzes,dependingontheirmodeoffunctioning.ForexampleinPercussionandDirectActionfuzes,thecontactsensing(impact)orpresetting(Timemode)isconverteddirectlyintomechanicalmovementofafiringpin,whichinturnisdriveneitherintooragainstthedetonator.Thedetonatorignitesatrainofexplosives,eventuallyfiringthemainchargeoftheprojectile.
IndianArmyhas105mm,130mmand155mmArtyGuns,totalingaround2,000.Thefuzes,whichareinservicearemostlyoldvintagesuchas:
• MechPointImpactFZ117,FZ119,PDM572
• TankFuzeB429andB-429E
• TimePyroDelay-FUZE213andTimeVT-8A
• MortarFuze162,DA-4A,TimeFuzeV-19P
Someofthehardwaremanufacturersofmechanicalfuzes(lessexplosivescontents)are:
• OFB,OrdanceFactoryAmbajhari
• VXLFaridabad
• MicronChandigarh
• SandeepMetalCraftNagpur
AsondatethemainsourceofsupplyofexplosivefilledfuzesareOrdnanceFactories.Thisvalueadditionofaround70%isdonebyordnancefactoriesonly.
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b. Electronicfuze
InandEuropeanandotherwesterncountries,electronicsaregraduallyreplacingmechanicalsub-systemsduetoitsenhancedreliability,besidesmakingitpossibletoincorporatevariousoperatingmodesintoasinglemulti-purposedesign.Electronicfuzeshavemanycharacteristicsofmechanicalfuzes,thoughtheydifferinthemethodoffuzeinitiation.Inparticular,safetyandarmingfunctionsareachievedbycombiningelectronicandmechanicalmechanismswhereasthetargetsensingandfiringfunctionsareachievedbyelectroniccircuits.Maincomponentsofanelectronicfuzeareasshowninthefigurebelow.
Mechanicalfuze ElectronicfuzeNotarget-sensingcapability;hence,cannotfunctionasproximityfuze
Proximityactionpossible
Canbedesignedastimefuzebutnumberoftimeintervalsarelimited
Precisetimesettingwithawidediscreterange
Hastobemanuallyset;morepronetosettingerrors
Canbeprogrammedandsetremotely;minimalsettingerrors
Heavyandbulkyduetomechanicalcomponents;limitedminiaturizationpossible
Lightweightandcompactdesignprovidesextraspaceforexplosive
Comparativelylesssafe Electronicsafetycircuitsarevalueadditionstooverallsafety
Increaseslogisticsandtrainingrequirements ReducedlogisticsandtrainingrequirementsLessExpensive Expensive
Dependinguponthetargetsensingmechanismandelectroniccircuitryinvolved,theelectronicfuzesareclassifiedas:
• RadioProximity(PRX)Fuze
• ElectronicTime(ET)Fuze
• ElectronicPointDetonation(EPD)Fuze
• UniversalFuze(MultiOptionFuze)
Advantagesofelectronicfuzesovermechanicalfuzesaregiveninthefollowingtable.However,whereelectro-magneticenvironmentexists,mechanicalfuzeshaveanedgeoverelectronicfuzes.
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c. MultiOptionFuzeforArtillery(MOFA)
Inearly1980selectronicfuzeswithseveralfunctionsandoptionsstartedappearing.Themostmodernmulti-optionartilleryfuzesintegratesandoffersacomprehensivechoiceoffunctionsservedbydelay,superquick,timeandproximityfuzes.Theycanbeoperatedwithallexistinganddevelopmentalartillerysystems(105mm–203mm)usingbulk-filledprojectiles,suchashigh-explosiveroundsorilluminatingroundsandofferincreasedaccuracy,reliabilityandperformance.Multioptionfuzescanbeinductivelyormanuallyset.Theuserhastheoptiontoselectany/combinationofmodesaccordingtorequirement.
SomeofthemajorOEMsproducingtheMOFAare
• ATK,theUS(M782)
• JunghansMicrotec,Germany(DM74)
• FucshElectronics,SouthAfrica(M9801)
• RESHEFTechnologies,Israel(M175)
• SignalUsfaandTNOPhysics&Electronicslaboratory,theNetherlands(MEDEA)
d. PrecisionGuidedMunitions(PGM)
Thefiremissionstobeaccomplishedbyartilleryrequireconsiderableamountofartillerypieces,ammunitionandtime,andareevenfittedwithelectronicfuzes.Reductionofammunitionexpenditureandtimeofmissionaccomplishmentcanbeobtainedonlyincaseofhigh-accuracyfiring.ThishasledtodevelopmentofPGMstocatertooperationalneedsandgivetheseweaponsaprecision-strikecapability.Theprojectilesareguidedonthetargetusinglaser/IR/GPSguidancetherebyleadingtoreducedCircularErrorProbability(CEP).OtherbattlefieldadvantagesaccruingtoaforcecommanderemployingPGMsarethefollowing:
• First-roundeffect
• Effectiveengagementofsmaller/fleetingtargets
• Reducedlogistics
• Minimizecollateraldamage(counter-insurgencyoperations)
MajorOEMsproducingPGKarethefollowing:
• ATKUSA
• SaabBoforsdynamics
• LockheedMartinwithDiehl
• KBPInstrumentDesignbureau
• BAESystemswithRaytheonMissileSystems
• IsraelMilitaryIndustries
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Electronic fuzes: market sizeCurrently,theIndianArmyhasartillerygunsofvariouscalibersandofdifferentvintageinitsinventory.TheIndian105mmfieldgunanditslightervariantforthemountainsarethebasicfieldguns.TheRussian130mmgunsarethebackboneofmediumartillery,withtheSwedishBofors155mmHowitzers,complimentingthem.Wealsohavethe120mmmortarsthatneedanupgrade.Thebroadgun/mortarequipmentinventoryisasfollows:
Equipment Holding
105mmIFG/LFG 1000+
130mm 500+
155mm 400+
81mmMortar 4000+
120mmMortar 480+
Currently,bulkofthefuzesusedbytheIndiandefenceservicesismechanicalfuzes.Toassessthemarketsizewewillonlyconsidertherequirementoffuzesfortheartillerygunsatthisstage(155mm,130mmand105mm).Accordingtoexistingscales,theannualrequirementofallvariantsofmechanicalfuzesfortrainingandwastagesisestimatedtobeapproximately0.5million.ConsideringanaveragepriceofINR5,000perfuzethistranslatesintoannualrequirementofINR250million.Inaddition,thereisalsoarequirementoffuzestocoverthevoid,whichexistsbetweencurrentholdingsandauthorizedscalesoffuzesforoperationalrequirements.Takingaconservativeestimateofdeficiencyat15%,anadditionalmarketformechanicalfuzesstandsat0.75millionamountingtoINR375million.
Thefocusisnowshiftingtowardelectronicfuzes,inviewofenhancedperformanceandlogisticsre-quirements.Overaperiodoftimetheelectronicfuzeswillreplacethemechanicalfuzebeingusednow.Asondatethesearebeingusedonlyfor155mmgunsandthattooislimitedtolessthan10%oftheauthorizedscale.Theusageisnowbeingextendedto130mmand105mmguns.Thereisanexistingdeficiencyofelectronicfuzesworthmorethan1million.ElectronictimeandproximityfuzescostmorethanPointDetonationfuzes.TakinganaveragepriceofINR15,000perelectronicfuze,theexistingmarketiscappedataroundINR1,500million.Therequirementisboundtoincreaseinthefuturewhentheconversionformortarsalsotakesplace.Duetolimitedsourceofsupplycurrently,thetimelinetomeettheimmediaterequirementof1millionfuzesisanticipatedtobefivetosixyears.Atthisstageitwillbedifficulttopredictthetimelineforswitchovertotheelectronicmode.Theswitchoverwillalsoentailreductionininventory.However,itisexpectedthattherateofacquisitionwillgraduallyincreasebyapproximately15%–20%eachyear.
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Theindicativemarketsizeforelectronicfuzemarket(artillerygunsonly)isasshowninchartbelow.
210
300
490
320
450
730
2015 2017 2019
Market growth projections: electronic fuze for artillery
Quantity (in '000) Cost (in INR million)
Multi-functionalfuzesforpointdetonation,proximityandelectronictimefuzeswillhaveapplicationsinAirDefence,NavalandAirplatformsaswell.IndianInfantryusershavealsostartedrealizingthecosteffectivenessofusingelectronicfuzeswithmortarammunition.Takingintoconsiderationexpansionofusageofelectronicfuzeintheseareas(10%initiallyandtobeincrementedonanyearlybasis)theannualmarketsizeforelectronicfuzes(mortar,AirDefence,NavalandAirplatforms)asofdatestandsatapproximatelyINR2billion.
Competition analysisElectronicsCorporationofIndiaLtd.(ECIL),apublicsectorundertaking(PSU)underatie-upwithFuchsElectronicsofSouthAfricaiscurrentlymeetingapproximately80%ofthetotalrequirementofelectronicfuzesoftheArmy.ThePSUenjoyedvirtualmonopolyoveralongperiod,butfailedtoindigenizethecontents.Itisunfortunatethatdespitemorethan15yearsoftieup,criticalsubsystemssuchassafetyandarmingdevice(S&A),thebatteryandanelectronictimerkitareimportedfromSouthAfricaandassembledinIndia.
Arequestforproposal(RFP)for1millionfuzes,issuedbyMoDinearly2009,iscurrentlyheldupduetoobjectionsfromtheenvironmentandfromgovernmentvigilanceorganizations.TheRFPhascombinedthreedifferentkindsoffuzefor105mm,130mmand155mmguns.Stipulationssuchasvendoreithersuppliesallthreetypes,orsuppliesnone,shutsdoorsonmostcompanies.ItwasallegedthattheRFPhasbeendraftedinawaythatiteliminatescompetition.Companies,whichrespondedtotheRFP,indifferentcategoriesaftercollaborationsfordevelopmentandmanufactureofelectronicfuzewerethefollowing:
Electronic fuze:105 mm
• BEL,withIsraelfirmReshefTechnologiesLtd.
• Micron-Jughans
• ECIL-Fucsh
• HBLNoida-SouthKorean
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Electronic fuze:-130 mm
• BEL-ReschefIsrael
• ECIL-Fucsh
Electronic fuze:-155 mm
• BEL-Reschef
• ECIL-Fucsh
• Micron-Jughans
Thesecompanieshaveofferedtheproductfortrials.However,thetrialshavebeenheldbackbytheMoD.Theabovecaseislikelytobeshelvedasafreshproposalforprocurementof1millionfuzeshasbeensubmittedtotheMoD.AccordinglyafreshRFIwasissuedinJune2011,asa“buyglobal”case.TheMODisbelievedtohavereceivedresponsefromthefollowingvendors:
• ECIL-Fucsh
• BharatForge
• IndianTelephoneIndustries
• Micron-Junghans
• HBL
• BEL-ReshefTechnologies
• ATKUS
• Rheinmetall
TheIndianArmedForcesareonamajormodernizationdrive.Ascomparedtodevelopedcountries,theIndianArmedForcespossessaconsiderablylowernumberofelectronicfuzes/MOFA,PGMdevices.ChangesinDefencepolicywillallowprivateorpubliclylistedIndiancompaniesinthissector.Thus,theMODdesirestoenhancetheindigenouscapabilityinthissegment.
Theabsenceofindigenouscapabilityintheelectronicfuzestechnologyanditsvariants,offersmarketopportunitiestoestablishaJVtofillthevoid.
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Tier-1 vendors now permitted to execute offset obligationsInDecember2011,theMoDreleasedanamendmenttoDPP2011.Itaddedaparagraph(1.7)toappendixD,Chapter1oftheDPP,permittingTier-1sub-vendorstodischargeoffsetobligationstotheextentoftheirworkshare(byvalue)onbehalfofthemain/primevendor.However,theoverallresponsibilityandliabilityfordischargeofoffsetobligationswillcontinuetoremainwiththemain/primevendor.Thisamendmentisapplicablewithimmediateeffect.
TheMMRCARFPwasreleasedunderDPP2006andthus,DassaultandEurofighter(NETMA)willnothavebeenabletoleveragethisamendment.However,aspecialdispensationisintheoffingthatwillenablethetwocontendersoftheMMRCAprogramtotakeadvantageofthisamendmentandofferanenhancedoffsetdischargeprogram.
ForthenascentIndianDefenseindustrytogrowthroughtherouteofoffsets,itisveryimportanttorealizethefactthataprimevendorgenerallydoesnothavemorethan20%workshareonboardacompleteplatformandconsequentlytheywilldischargeonly20%ofthetotaloffsetobligation.Thus,thereisanincreasedpotentialtoreceiveoffsetworkpackagesfromTier-1sub-vendorsoftheprogramsunderconsiderationvis-a-vistheprimevendor.TheIndianindustryprofessionalsshouldthereforeforgerelationshipswithbothmediumandlargeTier-1sub-vendorsinordertogainnotonlyoffset-relatedordersbutalsotogetaccesstocuttingedgetechnologyandbestpractices.
Asafirstattempt,Ernst&YoungwilltrytohighlighttheTier-1subvendorsofcertainlargeticketcapitalacquisitionprogramsthathavealreadybeensignedorareexpectedtobesignedinthenearfuture.
Inthefigureonthefollowingpage,thedesignoftheC-130JHerculestransportaircraft,manufacturedbyLockheedMartin(Primevendor)isdepicted.Indiahasalreadypurchasedsixsuchaircraftandtalksareinadvancedstagestoprocuresixmore.WewouldliketoextendoursinceregratitudetoLockheedMartinIndiaforsharingthisinformationwithus.
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Request for Information (RFIs)
October 2011–January 2012
Date of issue RFI details Response date Issued by Service
14Oct2011 SubsonicAmmunition7.62x51mmFor7.62mmGALILSniperRifle
15Nov2011 WE-8/9) Army
19Oct2011 PowerPackWithMinimum380HorsePowerEngine
30Nov2011 DirectorateGeneralofMechanisedForces Army
27Oct2011 PassiveNightSightforAssaultRifle 15Nov2011 AdditionalDirectorateGeneralofWeaponsandEquipment(WE-8/9)
Army
5Dec2011 ElectronicBirdDeterrentSystemforArmyAviation
20Jan2011 AdditionalDirectorateGeneral Army
9Dec2011 ThermalImagingSightfor7.62mmLightMachineGun
31July2012 AdditionalDirectorateGeneralofWeaponsandEquipment(WE-8/9)
Army
20Dec2011 DrivingSimulatorsforT-90/T-72tanks 15Jan2012 DirectorateGeneralofMechanisedForces Army
21Dec2011 WeaponSystemforShootingAroundtheCorner
31Jan2012 DirectorGeneralofRashtriyaRifles(RR-2) Army
26Dec2011 PrimeMoverfor70TonTrailertobeusedforTransportationofTanks
25Jan2012 DirectorateGeneralOfSupplyAndTransport(ST-11) Army
6Jan2012 RFIandInteractionwithManufacturersofOperatingTheatreShelterInflatable
11Jan2012 MGO/EM/GS&CRoomNo206
Army
6Jan2012 GeneralPurposeMachineGunforPARA(SF)
20Jan2012 DirectorGeneralofInfantry Army
6Jan2012 Spares,RepairandOverhaulofMissileTestStation
23Jan2012 DirectorateGeneralOfEME(Electronics)MasterGeneralofOrdnanceBranch
Army
21Oct2011 LaserbasedSpeedGunswithAccessories 22Nov2011 DTEOFPM(AIR)/ AirForce
3Nov2011 3DCDBandAirSurveillanceRadar 1Dec2011 DirectorateOfStaffRequirements Navy
3Nov2011 IntegratedCombatSystem 15Nov2011 DirectorateOfSplOPS&Diving Navy
12Oct2011 AirCushionVessel(ACV) 25Oct2011 IHQMoD(Navy)/DSR Navy
4Nov2011 AirFieldSecuritySolution(CASS) 4Dec2011 AirHQ(VayuBhawan) AirForce
25Nov2011 AirborneHelmets 12Dec2011 DirectorGeneralofInfantry AirForce
5Dec2011 GeneralPurposeMachineGun(GPMG) 31Dec2011 DirectorateGeneralofWeaponsandEquipment(WE-8/9)
AirForce
23Dec2011 SearchandRescueEquipment 23Jan2012 AirHQ(VayuBhawan) AirForce
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Request for Proposal (RFPs)
October 2011–January 2012
Date of issue RFP details/equipment Response date Issued by Remarks
Oct2011 8/34MBPSRadioRelay — — Army
8Dec2011 TenInertWarheadsforP-SeriesMissiles
26Dec2011 TheCommandingOf-ficerINSTunir,NavalSta-tionKaranja
Navy
20Dec2011 COTSS-BandSurveillanceRadarSystemAlongWithAccessories
10Jan2012 TheNavalOfficer-in-Charge,Karnataka Navy
11Jan2012 Portableairsupply&communi-cationsystem
30Jan2012 CommanderOperationsOfficer
Navy
4Oct2011 IRISbasedAccessControlSystem 31Oct2011 WgCdrEPSyam,SeniorLogisticsOfficer AirForce
13Oct2011 SupplyInstallationTestingInte-grationandCommissioning(SITIC)ofAFLS(NewGeneration)withassociatedfittings-fixtures
1Dec2011 DirectorateofPro-curement AirForce
25Oct2011 GearwheelAssemblyforFDR-MIG29 14Nov2011 AFStationOjhar,Na-sik,Maharastra AirForce
28Oct2011 FlexiVideoScope 25Nov2011 LogisticsMgmtBranch AirForce
7Nov2011 DifferentialGPSSystemforASTE 29Nov2011 (BaranSen)WingCommanderOCTestEnggSqn
AirForce
5Dec2011 OverhaulofViper22-8AeroEn-gines 19Jan2012 JS(G/A),RoomNo.108(E) AirForce
7Dec2011 Repair/OverhaulofaggregatesofMi26Helicopters
16Jan2012 JointSecretary(G/AIR),MoD AirForce
9Dec2011 SpikeBarrierandBoomBarrier 30Dec2011 UnitsLogisticsSectionTrainingCommand(U),AF AirForce
10Dec2011 UnifiedThreatManagement(UTM) 6Jan2012 CentralAirCommandHQCACIAF
AirForce
29Dec2011 TwoBasicPoweredHangGliderswithAccessories
30Jan2012 StationCommander AirForce
30Dec2011 JaguarFlyingClothing 22Feb2012 ACAS(PROC) AirForce
23Nov2011 PassiveNightVisionMonocular 10Dec2011 DirectorGeneral,CRPF CentralRe-servePoliceForce
23Nov2011 PassiveNightVisionBinocular 10Dec2011 DirectorGeneral,CRPF CentralRe-servePoliceForce
26Nov2011 ClothHarnessB.P.Jackets 25Jan2012 DIGP,GC,CRPF CentralRe-servePoliceForce
25Dec2011 LifeJackets 27Jan2012 DIGP,GC,CRPF CentralRe-servePoliceForce
23Dec2011 MechanizedBoatandMediumCraft 21Feb2012 DirectorateGeneral,BorderSecurityForce BorderSe-curityForce
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Date of issue RFP details/equipment Response date Issued by Remarks
23Oct2011 Revamping/ReconditioningOfExistingOne(1)No.20TonLF-VDPlant
16Dec2011 AdditionalGeneralManagerMetal&SteelFactory,Ishapore
—
1Nov2011 FiringMountRequiredFor30MMCANNON 29Nov2011 TheGeneralManagerOrdnanceFactory,Tiruchirapalli
—
21Nov2011 XBandDopplerRadarSystem 22Dec2011 DirectorARDE —
22Nov2011 SupplyandIntegrationofCom-municationandNetworkTestBed
14Dec2011 DirectorCAIR —
30Nov2011 ArmourPlate4mm 29Dec2011 SrGeneralManager,VehicleFactory,Ja-balpur —
30Nov2011 ArmourPlate6mm 29Dec2011 SrGeneralManager,VehicleFactory,Ja-balpur —
9Dec2011 ExpressionofInterestofBCLplant 2Mar2012 TheGeneralManager,Corditefactory,Aruvankadu
—
16Dec2011 10TonHollowESRPlant 4Apr2012 TheGeneralManager,Metal&SteelFactory,Ishapore
—
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List of Industrial Licenses (ILs) filed from 01/09/2011 TO 31/10/2011Application no. and date Name of the applicant Item of manufacture
6701/09/2011
CromptonGreavesLtd. Design,development,manufacturingassemblyupgrade,systemintegrationofelectricalandelectronicsystemssubsystemsandassembliesfordefenceapplication
6806/09/2011
SFOTechnologiesPvt.Ltd. Electronicsitemsforthesupplytothedefencesectorundertheoffsetprogram
6907/09/2011
AviotechPvt.Ltd. Defenceandcivilaircraftinteriors,aeroairbornestructurescompositetestinggroundhandlingequipmentgroundsupportequipment
7013/09/2011
KLIMAviationTechnicsPvt.Ltd. Minorcomponentsavionic,radarsetc.andrepairoftheirparts
7123/09/2011
PipavavDefence&OffshoreEngineeringCompanyLtd.
ManufacturingofpartsandaccessoriesN.E.C.foraircraftorspacecraft
7211/10/2011
KaynesTechnologyIndiaPvt.Ltd. Electronicprintedcardboardassemblies/electron-ICsubassemblies/militarywireharnessesfordefenceandaerospaceapplication
7317/10/2011
DataPatterns(India)Pvt.Ltd. Design,developmentandmanufacturingofradar,sonarandelectronicwarfaresystems
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List of Industrial Licenses (ILs) filed from 01/11/2011 TO 31/12/2011Application no. and date Name of the applicant Item of manufacture
7401/11/2011
MahindraAerostructuresPvt.Ltd. Aerospacecomponents,aerostructuresandparts,accessories,assemblies/subassembliesthereof
7503/11/2011
Ray-HansTechnologies(P)Ltd. Design,engineering,softwaredevelopmentandmanufacturingofelectronicandcommunicationproducts,HLAS,FibreopticPROD.powersupplies,cableandwireharnessandsheetmetalfabricationspeciallydesignedforuseindefence,aerospace,healthcareetc.
7609/11/2011
OKPlayIndiaLtd. Manufacturingofpackingproductofplasticsfordefencepurpose
7716/11/2011
SattvaeTECHIndiaPvt.Ltd. Design,development,fabricate,manufacture,upgrades,recondition,assemble/systemintegrationofelectroniccomponentsincluding;software,firmware,multi-layerPCBs,highvoltagepowersupplies,digitalsignalprocessmodules,weapononboardetc.
7805/12/2011
MainiMaterialsMovementPvt.Ltd. Allterraincombatvehicles
7908/12/2011
AANEngineeringIndustryLtd. Defencevehicleparts
8019/12/2011
MAKControlsandSystemsPvt.Ltd. Design,development,manufacture,assemblyandrepair&maintenanceofgroundsupportequipment/vehicles,cargoloaders,groundairconditioningsystems,startingrectifiers,frequencyconverters,airstartersforaircraftetc.
8120/12/2011
VedaDefenseSystemPvt.Ltd. Parts,componentsandaccessoriesforaerospaceanddefensesector
8220/12/2011
Jeet&JeetGlassandChemicals(P)Ltd. Mineresistant/ambushresistant(armored)vehicles
8426/12/2011
SundramFastenersLtd. Kingpin/sleeve/bushes/adapter/thrustboring/components/bolts/nuts/screwsforaerospace
8730/12/2011
VinalTechPvt.Ltd. Cableharness/electronicsystemsintegration
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New projects/investments/contracts
Name of entity Project details Value
MinistryofDefence,GovernmentofIndia
• TheIndianDefenceMinistryacceleratedtheselectionprocesstoacquiretwotypesofmicro-andmini-unmannedairsystems(UAS)forusebyitsarmy’snortherncommandalongthenation’sborderwithPakistan.
• Twentysystemsofeachtypeareexpectedtobepurchasedunderanurgentoperationalrequirementdeal.
NA
GovernmentofIndia • TheDefenseSecurityCooperationAgencyhasnotifiedtheUSCongressofapossibleforeignmilitarysaletotheGov-ernmentofIndiaforsixLockheedMartinC-130Jsandas-sociatedequipment,parts,trainingandlogisticalsupport.
INR60.6billion
BrahMosAerospaceThi-ruvananthapuramLtd.(BATL)
• BrahMosAerospaceThiruvananthapuramLtd.(BATL),awhollyownedsubsidiaryofBrahMosAerospacecateringtoproductrequirementsofthecountry’sdefence,aerospaceandnuclearsectors,issettolandordersforproductionoftheBrahMossupersoniccruisemissile’sliquidramjetenginefromtheDefenceResearchDevelopmentOrganization(DRDO).
• BATLwillbeinvolvedinthemakingoftheentireBrahMosmissile,includingthenosecap,thewholeofF3(themissilesectioncomprisingairframeandfueltank)andtheramjetengine.Ineffect,itwillbethecompletemissileexceptthecompositepartandwarhead.
NA
BharatDynamicsLimited(BDL)
• BDLbaggedanorderforthesupplyofAkashWeaponsystemtotheIndianArmy.• TheUnionMinisterofStateforDefence,MMPallamRaju,laidthefoundationstoneforBDl’sAkash
projectbuildinginMedakdistrict(AndhraPradesh).
INR140billion
BharatDynamicsLimited(BDL)
• BDLissettingupanewunitatNandgaonPetinAmaravatidistrictofMaharashtratomanufactureshort-rangemissilesforthearmedforces.
• BDLplanstoproduceveryshort-rangeairdefencemissilesatthenewunit.
INR2.5billion
HindustanAeronauticsLtd.(HAL)
• TheStrategicElectronicsManufacturingFactoryofthepublicsectorHindustanAeronauticsLtd.,setupattheKINFRAIndustrialParkinKasargodisreadyforinauguration.
• ThemanufacturingfactorywillinitiallyworkastheextensionoftheAvionicsDivisionofHAL,Hyderabad.Itisengagedinmanufactureofawidevarietyofelectronicequipmentcoveringcommunication,radar,navigation,computersandelectronicwarfare.
• Thenewfacilitymaybeexpandedtoincludenewprojectsarisingoutofnewaircraftprogramsandconvertedintoafull-fledgeddivisioninfuture.
INR2billion
Boeing • Boeingbaggedadealforthesupplyof22heavy-dutyattackhelicoptersandgunshipstotheIAF.• Besidesthe22Apaches,thepackageincludes812AGM-114L-3HellfireLongbowmissiles,542AGM-
114R-3Hellfire-IImissiles,245StingerBlockI-92Hmissiles,12AN/APG-78fire-controlradarsetc.• BoeingwaspreferredoverRussianMilCorporation’sMi-28N“NightHunter”asApacheprovidedincreased
capabilitiesanddisplayedsuperiorall-weatherapplications.
INR70.67billion
MBDA,France • Indiaclearedtheacquisitionof490FrenchadvancedmissilesystemstoequiptheMirage-2000fighterjets.
INR62billion
TataPower,Stra-tegicElectronicsDivision
• TataPowerSED,thestrategicelectronicsdivisionofTataPowerLtd.,wasawardedthecontracttomodernizetheIndianAirForce’sairbaseinPunjab,whichincludesnewrunways,newlightingsystemandAirTrafficControl(ATC)systems.
• TataPower,afterbeingawardedthecontract,signedanagreementwithRaytheon,underwhichthelatterwillsupplyairtrafficcontrolsystems.
INR9.39billion
BAESystems • BAESystemssecuredacontractforsparesandgroundsupportequipmenttoaidtheIndianAirForce(IAF)Hawktrainingaircraftoperations.
INR4.64billion
TataSteel • TataSteelannouncedinvestmentinitsStocksbridgesteelworksinSouthYorkshire,UK,toboostaerospacesteelproductionby30%.
• Ithasalreadymadeinvestmentsintwovacuumarcremeltingfurnacesandspecialisttestingequipmenttoproducemoresteelfortheaerospaceindustry.
• Engineersarecurrentlycarryingoutfinalinstallationworkonthenewequipmenttoenabletrialstobeginbytheendof2011.Bothfurnacesareexpectedtobeinfullproductioninearly2012.
INR510.9million
*ThevaluesofthedealshavebeenconvertedtoIndianRupeesusingOandacurrencyconversiontool
1US$=INR50.48;1Euro=INR65.26;1£=INR78.6(Valuesason22January2012)
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Joint ventures and alliances
Name of entity Nature of transaction Value
Mahindra&MahindraandGriffonCorpora-tion(Telephonicsunit)
• ►TelephonicsCorporation,asubsidiaryofGriffonCorporation,andMahindra&MahindraLtd.announcedthesigningofamemorandumofunderstanding(MoU)toformajointventure(JV).Mahindra&MahindraGroupwillholda74%stakeintheventure,whiletheremaining26%willbeheldbyGriffonCorporation.
• ►ThejointventurewillprovidetheIndianMinistryofDefence(MOD)andtheIndiancivilsectorwithradarandsurveillancesystems,identificationfriendorfoe(IFF)devicesandcommunicationsystems.Inaddition,theJVintendstoprovidesystemsforairtrafficmanagementservices,homelandsecurityandotheremergingsurveillancerequirements.
• ►TheIndianfacilitywillmanufactureandserviceairborneradarsystemsthatarealreadybeingsuppliedtoHALbyTelephonicsandsupportairbornemaritimesurveillancesystemsfortheIndianNavyandCoastGuard.Asofnowitissearchingforlandtosetupamanufacturingplantandhasshortlistedthreelocations.
NA
AshokLeylandDe-fenceSystemsandKrauss-MaffeiWeg-mannGmbH&CoKG
• ►AshokLeylandDefenceServicesrecentlysignedaMemo-randumofUnderstanding(MoU)withMunich-based,Krauss-MaffeiWegmannGmbH&CoKG,inGermany,tomanufacturearmoredwheeledvehicles,recoveryvehicles,artilleryandcombatsystemsandbridgelayingsystems,amongotherthings.
• ►TheGermancompanywillprovidethetechnologyandthetechnicalassistancerequiredforthedevelopmentofthesedefencesystemsbyAshokLeyland.
NA
UnitedTechnologiesandAgniceFirePro-tection
• ►UnitedTechnologiesCorp(UTC),adiversifiedcompanyen-gagedintheproductionofHamiltonSundstrandaerospacesystems,aircraftengines,SikorskyhelicoptersandUTCFireandSecuritysystemsacquiredChennai-basedAgniceFireProtection.
INR3.5billion
UniversalDetectionTechnologyandHo-neywell
• ►UniversalDetectionTechnology,aUS-basedcompanythatdevelopsearly-warningmonitoringtechnologiesprotectingagainstbiological,chemical,andradiologicalthreats,hassignedacontractwithHoneywellIndia.
• ►Theagreementhasbeensignedtodeveloparadiationde-tector,whichwilldisplayradiationdatacollected,viaBlu-etooth,toasmartphone.
NA
PipavavDefenceandOffshoreEngineeringCo.LimitedandMazagonDockLimited(MDL)
• ►Pipavavsigneda50:50jointventureagreementwithMDLinSeptembertobuildsubmarinesandwarshipsfortheIndianNavy.Thejointventure(JV)companywasnamed“MazagonDockPipavavLtd.”However,theJVwasputonholdfollowingacomplaintfromLarsen&ToubroandABGShipyard.
• ►IndianshipbuilderPipavavDefenceandOffshoreEngineeringCo.Ltd.isintalkswiththeMinistryofDefencetoope-rationalizetheMoU,whichwillallowittoformajointventurewithMDL.
NA
BharatElectronicsLi-mitedandRaytheon
• ►Thestate-ownedelectronicequipmentmakerBharatElec-tronicsLtd.(BEL)planstoformaJVfirmwithUS-baseddefencecontractorRaytheonCompanyforthedevelopmentofdefenceproductssuchasPatriotmissiles.
NA
MahindraSatyamandSaabAB
• ►MahindraSatyamopenedadedicatedtechnologycenter,SaabIndiaTechnologyCentre(SITC)forresearchanddevelopmentinpartnershipwiththeSwedishfirm,SAAB.Thecenterwillcommenceoperationswith100engineers.
• ►TheprimaryareasofdevelopmentofSITCwillincludesoftwareengineering,electronicengineeringandmechanicalengineering.Itwilllaterfocusondevelopmentintheareasofsignalprocessingandsystemsengineering.
NA
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Country-level deals and initiatives
Country Nature of transaction Additional details
Russia IndiaandRussiareviewedtheirdefencetiesduringthevisitofIndia’sDefenceMinistertoMoscowfrom3to5October2011.Bothgov-ernmentsexpressedreadinesstotakenecessarymeasurestofurtherexpandthecooperationonamutuallybeneficialbasis.
Thetwosidesexpressedsatisfactionovertheirinteractioninthedevelopmentofdefencetechnologies,modernizationofmilitaryequipmentandjointmanufactureofmilitary-purposeproducts.However,theIndianDefenceMinisterex-pressedconcernattheprogressmadeinthedesignanddevelopmentoftheMulti-RoleTransportAircraft.
UK(JointNavalExer-cise)
IndiaandtheUKconductedtheirannualjointweeklongnavalexercise“Konkan”offthecoastofGoafrom8October2011keepingthefocusonsubmarineoperationsincludingnuclearunderwatervessels.IndiawillfielditsShishumarClassINSShankushHDWsubmarineandtheBritishwillhaveoneoftheirTrafalgarClassnuclearsubmarines.
TheexercisewillhelptheIndianNavytohoneitsskillsinoperatingnuclearsubma-rines.IndiaisexpectedtogettheNerpaK152nuclearsubmarineonleasefromRussiaandisalsoplanningtoinducttheindigenousINSArihantsubmarineinthenearfuture.
France(JointMili-taryTrain-ing)
AnIndo-FrenchJointMilitaryTrainingExerciseSHAKTI–2011washeldatChaubattia,Uttarakhandfrom9to21October2011undertheaegisofGarudDivision.
Theexercisewasaimedattrainingtroopsincounter-terroristoperationsandenhancingdefencecooperationandmilitaryrelationsbetweenthetwonations.
Japan(Defencetalks)
ThetalksbetweentheDefenceministersofIndiaandJapanwereheldinTokyoon2No-vember2011.
Maritimesecurity,anti-piracymeasures,freedomofnavigationandmaintainingthesecurityofsealanesofcommunicationtofacilitateunhinderedtradearesomeoftheissuesdiscussedinthebilateraltalks.
Oman(AirExercise) Afour-dayjointexercisebetweentheIndianAirForce(IAF)andtheRoyalAirForceofOman(RAFO)washeldattheAirForceStationJamnagarfrom17to21October2011.Theexercisenamed“EasternBridge-2011”wasthesecondintheserieswiththefirstoneheldinOctober2009atOman.
TheRAFOcontingentcomprisedsixJaguaraircraftand115personnel.TheIAF’sJaguarsandMiG29sbasedatJamnagar,participatedintheexercise.TheOmanicontingentwantedtounderstandthechallengesofflyingoverthevaryinglandscapeoftheIndianterrain,whichisunliketheOmaniflatbeddesert.
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Industry buzz
Defence to be included in the five-year planThedefenceindustryhasfoundplaceinthePlanningCommission’sfive-yearplanforthefirsttimeever.ThereportsoftheWorkingGrouponDefenceEquipmentandAerospacewillbeincorporatedintheframeworkoftheindustryoutlookduringtheTwelfthFiveYearPlanfortheperiod2012–17.Themoveisexpectedtofacilitatetheindigenizationofthedefenceequipment.
(Source:“DefencePartofFiveYearPlan’sIndustryOutlookforFirstTimeEver,”Press Information Bureau website,http://pib.nic.in/newsite/AdvSearch.aspx,accessed15January2012.)
GoI freezes all defense shipyard joint venturesTheIndianMinistryofDefencehasputonholdtheformationofalljointventuresindefenceshipyardsuntiltheGoIformulatessuitableguidelines.ThisdecisionwasputonholdafterajointventurebetweenMazagonDockLtd.andPipavavDefense&OffshoreEngineeringCompanywaschallengedbyothercommercialshipyards.TheIndianDefenceministryisnowforminganewpolicyforpublic-privatebusinesspartnershipsforincreasedtransparency.
(Source:JayMenon,“IndianFreezesAllDefenseShipyardJointVentures,”Aerospace Daily & Defense Report,21December2011,viaFactiva,©2011McGraw-Hill,Inc.)
GoI advises not to import encryption equipment from ChinaMinistryofDefence,citingnationalsecurity,advisedthestate-ownedelectronicsequipmentmanufacturerandsuppliertotheArmedForces,BharatElectronicsLimited(BEL)tonotsourcecriticalencryptioncomponentsfromChina.ThewarningwasbasedontheapprehensionthatChinamaymodifytheequipmentanduseittomonitorIndia’sdefenceactivities.
(Source:“GovtadvisesnottoimportencryptionequipmentfromChina,”ElectronicsBazaar,1November2011,viaFactiva,©2011EFYEnterprisesPvt.Ltd.)
Indian Army to procure armored recovery and repair vehiclesIndiawillsoonprocuremorethan600armoredrecoveryandrepairvehiclesforT-72battletanksatacostofINR10billion.AproposalinthisregardwasclearedbytheCabinetCommitteeonSecurity.TheorderisarepeatorderandthevehicleswillbebuiltunderatransferoftechnologyfromthePolishdefencefirm.Thesevehiclesareusedtorepairdamagedorbrokendowntanksandinfantrycombatvehiclesbothduringpeacetimeandcombatoperations.
(Source:“Indiaclears$275mnorderforT-72tankrecoveryvehicles,”13October2011,Indo-AsianNewsService,viaFactiva.)
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Field evaluation trials of anti-tank missile soonThefieldevaluationtrials(FET)ofMBDAMissileSystem’sPars3LRfire-and-forgetanti-tankguidedmissile(ATGM),shortlistedalongRafaelAdvancedDefenceSystem’sSpike-ERfortheIndianArmy’sweaponizedAdvancedLightHelicopter(ALH)”Rudra,“areslatedtogetunderwaysoon.
(Source:S.Anandan,“Fieldevaluationtrialsofanti-tankmissilesoon,”The Hindu,24October2011,viaFactiva,©2011Kasturi&SonsLtd.)
Main Battle Tank Arjun debuts in military exerciseTheindigenouslybuiltMainBattletank(MBT)ArjunmadeitsdebutinSudarshanShakti,oneofthelargestmilitaryexercise,heldinrecenttimes.Arjunhasafavorableguntoweightratioandhasgotmorehorsepowerandgunpower.Itcameoutwithsuperiorperformanceonallparameters.Arjuntook37yearsofresearchanddevelopmentandwasbuiltatacostofINR3.5billion.
(Source:RituSharma,“MainBattleTankArjunDebutsinWarGames,”New Indian Express,10December2011,viaFactiva,©2011TheNewIndianExpressGroup.)
Indian army may revive Bofors howitzer plansTheIndianArmyseekstoreinstatelong-dormantABBoforsFH-77B155mm/39-caltowedHowitzerprogramthatwassuspendedin1980soverallegationsofcorruption.
(Source:RahulBedi,“IndianArmymayreviveboforshowitzerplans,”Jane’s Defence Weekly,26October2011,viaFactiva,©2011TheNewYorkTimesCompany)
Indian Navy plans to acquire Russian submarine Nerpa RussiawillhandovertheAkula-IIclass,nuclear-poweredsubmarine”K-152Nerpa”toIndiaona10-yearleaseafterthesubmarinerecentlyfinishedseatrials.ThesubmarinewillberechristenedINSChakraandisexpectedtoreachIndiabytheendofJanuary2012.
(Source:“IndiatakesdeliveryofRussianN-submarine,”The Times of India,31December2011,viaFactiva,©2011TheTimesofIndiaGroup.)
Indian Navy intends to upgrade Sea King and Kamov ChopperTheIndianNavywantstoupgradeitspresentfleetofSeaKingandKamovhelicoptersandpurchasenewhelicopterstoreplacethem.SeaKingisanti-submarinewarfarehelicopterwhileKamovisusedforairborneearlywarnings.
(Source:“IndianNavyHuntsforSea-KingandKamovChopperUpgradesandSuccessors,”IndiaDefence,1October2011,viaFactiva.)
Yantar Shipyard tests INS Teg built for IndiaFrigateINSTeg(standsfor“saber”)builtbyYantarShipyardinKaliningradcontinuedseatrialsafteritsdamagedcruisingturbinewasreplaced.Thetrialprogramwassuspendedafteranaccidenttothefrigate’sportsidecruisingturbine.INSTegisthefirstProject11356frigateinthesecond3-shipseriesorderedbytheIndianNavy.MooringtrialsstartedinMarch2011,andinAugusttheshipwastransferredtoBaltiyskforthefirstphaseofshipyard’sseatrials.
(Source:“YantarShipyardTestsINSTegBuiltforIndia,”RIAOreanda-News,16November2011,viaFactiva,©2011RIAOREANDA.)
GE Shipping arm cancels Mazagon Dock offshore vessel order on delayGreatEasternShippingCompany(GEShipping)cancelledanorderforamulti-purposesupportvessel(MSV),placedwithstate-ownedMazagonDockLtd.,duetonearlyatwo-yeardelayindelivery.Earlier,anarmofGEShipping,GreatshipGlobalOffshoreServices(GGOS)hadsignedcontractstobuildtwonewmultipurposesupportvessels(Builder’sYardNo.26775and26784)withMazagonDock,MumbaiinSeptember2007.
(Source:“NW18:GEShippingarmcancelsMazagonDockoffshorevesselorderondelay,”NewsWire18–EquityWire,9November2011,viaFactiva,©2011NewsWire18Ltd.)
Naval exercise organized at Paradip to spread awarenessTheIndianNavyorganizedanavalexerciseintheseaoffParadiptospreadawarenessaboutthecapabilitiesofitswarships.Thisnavalexercisehelpedthepublictoknowmoreabouttheoperationofwarships.TheNavy’smostmodernmulti-purposestealthfrigate,INSShivalik,twoguidedmissiledestroyersINSRanvirandINSRanjit,twoguidedmissilecorvettes,INSKarmukandINSKuthar,andonelandingshiptank,INSAiravat,displayedtheiroperationalskills.Thewarshipsperformedoperationalmaneuversanddemonstratedtheirfiringpower.
(Source:“NavalexerciseleavesParadipawestruck,”The Times of India,9November2011,viaFactiva,©2011TheTimesofIndiaGroup.)
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India falters in getting its new submarine plan off the blockThelong-delayed“Project-75India”toacquiresixnew-generationstealthsubmarineshasbeendelayedandtheactualcontractisnowlikelytobeinkedonlyby2014–15.TheP-75Iboatsareexpectedtobereceivedonlyafter2020sinceittakessixtosevenyearstobuildanadvancedsubmarine.Thishappenedbecauseoftheinabilitytodecideontheshipyards,whichwillbeexecutingtheproject.OriginallythreeofthesubmarinesweretobeconstructedatMazagonDocks(MDL)inMumbai,andanothercameupattheHindustanShipyardinVisakhapatnam.Theothertwoweretobeeitherimportedfromtheforeigncollaboratororbuiltbyadomesticprivateshipyard.
(Source:RajatPanditTNN,“Indiafaltersingettingitsnewsubplanofftheblock,”The Times of India-PuneEdition,2November2011,viaFactiva,©2011Bennett,Coleman&Co.,Ltd.)
Indian Navy to double orders for P-8I maritime reconnaissance aircraftTheIndianNavywillinduct24BoeingP-8Ilong-rangemaritimereconnaissanceaircraft,whichwillboostitssurveillanceandattackcapabilitiesoverIndia’sterritorialwaters.TheIndianNavyplacedordersfor12additionalaircraftoverandabovethe12alreadyonorderbringingthetotalto24.TheP8-Iiscapableofbroad-areasurveillanceandanti-ship,submarineandlandattackoperationsandisequippedwithHarpoonmissiles,depthchargesandtorpedoes.TheaircraftwillbeequippedwithsomeIndiancomponentsbecauseoftheindustrialoffsetrequirements.BharatElectronicsLtd.isalreadysupplyingtheDataLinkIIsystemtofacilitateP-8I’scommunicationswiththeIndianspace,naval,andland-basedassets.
(Source:“IndianNavytodoubleordersforP-8Imaritimereconnaissanceaircraft,”Domain-B,6December2011,viaFactiva,©2011TheInformationCompanyPvt.Ltd.)
Tejas LSP-7 all set for launchTejas,ahomegrownlightcombataircraftdevelopedbyHindustanAeronauticsLimited(HAL),completeditscrucialgroundrun(EGR)andisnowbeingputonlow-speedtaxitrials(LSTT).TejasLSP-7isthetwelfthaircraftfromtheprojectflight-lineandtheseventhfromthelimitedseriesproduction(LSP-7).TheaircraftisexpectedtodotheLSTTat150kmphandtheHSTTat250kmph.
(Source:AnanthaKrishnanM,“TejasLSP-7allsetforitslaunch,”New Indian Express,21October2011,viaFactiva,©2011TheNewIndianExpressGroup)
21 more Hawks for IAF’s Surya Kiran aerobatics display teamTheIAFinitiatedtheprocurementof21additionalHawkaircraftbuiltbyHindustanAeronauticsLimited(HAL).HawkadvancedjettrainerswillallowtheSuryaKiranAerobaticsTeam(SKAT)toflyfaster,turntighterandmanoeuvremorespectacularly,thanwaspossiblewiththevintageKiranMarkIItraineraircraftthattheyhaveflownsince1996.
(Source:AjaiShukla,“21moreHawksforIAF’sSuryaKiranaerobaticsdisplayteam,”Business Standard,25October2011,viaFactiva,©2011BusinessStandardLtd.)
Third generation Nag test-firing in Pokhran ThethirdgenerationNagmissile’sfinaltestwasdoneinJaisalmer’sPokhranfieldfiring.The“fire-and-forget”missilehasbeendevelopedbytheDefenceResearchandDevelopmentOrganisation(DRDO).ThereweresometechnicalchangesandcorrectionsinthelaunchpadaccordingtoArmyrequirements.TheNag,oncefired,isguidedtohitevenafast-movingtank.
(Source:VimalBhatia,“ThirdgenerationNagtest-firinginPokhransoon,”The Times of India,7October2011,viaFactiva,©2011TheTimesofIndiaGroup)
India to order 59 Mi-17s Indiaissettoorder59Mi-17sunderthefollow-onclauseinthefirstcontract.TheywillbeweaponizedforcombatoperationsandwillallowIAFtodeployadditionalchoppersforlogisticalsupportinanti-Naxaloperations.80Mi-17VswereorderedundertheUS$1.34-billioncontractsignedbyRosobronexport,JSCinDecember2008.ThefirstbatchofthecontracthasbeendeliveredtoIndiainNovember2011.ThehelicoptersaremanufacturedbyKazanHelicopters,asubsidiaryoftheRussianHelicoptersholdingcompany.TheR.E.T.Kronshtadt,amemberofTranzasGroup,basedinSt.Petersburg,alsoplanstobuildtwohelicoptersimulatorswithintheframeworkofthiscontract.
(Source:“Indiasettoorder59moreRussiancopters,”FrontierStar,14November2011,viaFactiva,©2011Asianet-Pakistan.)
IAF sends Mirages to France for retrofittingTheIndianairforce(IAF)dispatchedtwoofitsMirage2000fighteraircrafttoFranceaspartofthedealbetweentheGoIandThalesandDassaultAviation.Thedealistoupgradearound50supersonicfighters.Accordingtotheagreement,theFrenchfirmswillmodernizethenavigationsystems,missioncomputers,electronicwarfaresystemsandradars,bringingtheaircraftuptothestandardsofmoreadvancedMirage-2000-5s.ThemodernizationwillcostanestimatedUS$2.4billionundertheagreementsignedbetweenIndia,ThalesandDassaultAviation.TheFrenchcompanieswillinvest30%ofthedeal’svaluebackintotheIndiandefencesectoraspartoftheoffsetpolicy.
(Source:JayMenon,“IndiaSendsMiragesToFranceForRetrofit,”AerospaceDaily&DefenseReport,7December2011,viaFactiva,©2011McGraw-Hill,Inc.)
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214 Russian-Indian fifth-generation fighter jets to be inducted into the Indian Air Force by 2017214fifth-generationfighterjets,beingdevelopedjointlywithRussia,areexpectedtoentertheIndianAirForceby2017.Outofthese166areexpectedtobesingle-seaterand48two-seateraircraft.
(Source:“214Russian-Indianfifth-generationfighterjetstoenterserviceinIndiaby2017,”Interfax:Russia&CISMilitaryNewswire,4October2011,viaFactiva,©2011InterfaxInformationServices,B.V)
MHA helps OCTOPUS commandos acquire gunsTheMinistryofHomeAffairs(MHA)sanctionedINR30milliontopurchase206sub-machinegunsMP5A3sandtheiraccessoriestoarmtheOrganisationforCounterTerroristOperations(OCTOPUS),theanti-terrorcommandoforceofAndhraPradesh.TheGermanweaponsmakerHeckler&Kochearlierrefusedtosellthestatepolicetheirsub-machinegunscitinghumanrightsviolations.MHAdecidedtoimporttheweaponsasthesameweaponsareusedbyTheUSNavySealsandtheBritishSpecialAirService.
(Source:“MHAhelpsstategetguns,”Deccan Chronicle,3November2011,viaFactiva,©2011DeccanChronicleHoldingsLtd.)
Security forces get 19,000 night vision gadgetsTheGoIsanctionedmorethan19,000night-visiondevicesforthesecurityforcessuchasNSG,CRPFandITBP.Thehigh-enddevices,procuredfrompublicsectormanufacturerBharatElectronicsLimited(BEL),includeweapon-mountednight-visiontelescopes,nightsightsforrocketlaunchers,monocularsandbinocularsandhelmet-
mountednightvisiondevices,whichcanbewornbytroops.Thenight-visiondevicesareessentialforthesecurityforcestooperateatnightandprovideaclearvisionoftheenemyandotherstatictargets.
(Source:“Forcesget19,000nightvisiongadgets,”The Statesman,7October2011,viaFactiva,2011TheStatesmanLtd.)
Agni-4 test-fired successfullyThelong-rangemissileAgni-4wassuccessfullytest-firedfromWheelers’Island,offthecoastofOrissanearBalasore.Agni-4,earlierknownasAgniIIprime,hasthecapabilitytodeliverstrategicwarheadsintherangeof2,500–3,500km.Itis20meterslongandweighsnearly17tons.Itislightinweightandhastwostagesofsolidpropulsionandapayloadwithare-entryheatshield.Ithasacompositerocketmotor,whichhasbeenusedforthefirsttime.Themissilesystemisequippedwithmodernandcompactavionicswithredundancytoprovidehighlevelreliability.
(Source:RajaramSatapathy,“Agni-4firedsuccessfully,”The Times of India,17November2011,viaFactiva,©2011TheTimesofIndiaGroup)
SAAB–HAL JV to commence airborne electronic warfare systems productionThejointventureofSaabABandHindustanAeronauticsLimited(HAL)willstartproductionofairborneelectronicwarfaresystemsbyMarch2012inBengaluru.ThejointventurewasannouncedinFebruary2011inwhichSaabwillholdaminoritystakeof26%.ElectronicwarfaresystemssuppliedbySAABarebeingusedinDhruv-HAL’sadvancedlighthelicopter.ItalsoplanstoexporttheairborneelectronicwarfaresystemsfromitsBengalurufacility.
(Source:“Saab-HALJVtocommenceairborneelectronicwarfaresystemsproductioninsixmonths,”IndiaPublicSectorNews,25October2011,viaFactiva,©2011Contify.com)
BDL procures DRDO technology for anti-tank missileBharatDynamicsLtd.(BDL)procuredanindigenouslydevelopedSeekertechnologybytheDRDOforthethird-generationNAGanti-tankguidedmissile.ImagingInfraRed(IIR)Seekersisasophisticatedsystemusedformissileguidanceandgivesthemissilethe“fireandforget”capability.BDListhefirstinthecountrytoownthetechnology.Thetechnologywillbeusedfortheforthcomingdevelopmentaltrialsofhelicopter-launchedNAG(HELlNA),whichistheothervariantoftheNAGmissilebeingdevelopedbyDRDO.
(Source:“BDLprocuresDRDOtechnologyforanti-tankmissile,”ThePressTrustofIndiaLimited,2No-vember2011,viaFactiva,©2011AsiaPulsePtyLimited.)
Rolls-Royce and HAL to set up aero engines unitInternationalAerospaceManufacturingPrivateLtd.(IAMPL),ajointventurebetweenHindustanAeronauticsLtd.(HAL)andRolls-Royce,commencedconstructionofanewmanufacturingunitatBengaluru.TheplantwillmanufacturecomponentsfortheTrentcivilaeroengines,aswellasmarineandenergygasturbines.IAMPLhasaround200employeesinIndia,andanother650engineersworkonasub-contractbasisintheengineeringcenteratBengaluru.Theplantisexpectedtocommenceproductionfrom2012.
(Source:“Rolls-Royce,HALtosetupaeroenginesunit,”ProjectMonitor,9December2011,viaFactiva,©2011EconomicResearchIndiaPvt.Ltd.)
HAL shortlists Goldman, 3 others for IPOHindustanAeronauticsLtd.(HAL)hasshortlistedfourbanksincludingGoldmanSachsandBarclaysforaninitialpublicoffering(IPO)thatislikelytoraiseUS$200million.Accordingtoreports,SBICapitaland
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EnamSecuritieshavealsobeenshortlistedbythecompany.Thesharesaleisexpectedtobelaunchedinthenextfiscalyearthatbeginson1April.
(Source:“HALshortlistsGoldman,3othersforIPO:report,”IndiainfolineNewsService,15November2011,viaFactiva,©2011IndiainfolineLtd.)
BEL bags Raksha Mantri’s Award in five categories for FY10India’sstate-ownedelectronicequipmentmanufacturerBharatElectronicsLtd.(BEL)wontheprestigiousRakshaMantri’sAwardsfortheyear2009–10infivecategories.BEL’sPanchkulaunitreceivedtheawardfortheBestPerformingDivisionofDefencePublicSectorUndertakings.TheawardwasreceivedbyBELChairmanandManagingDirectorAnilKumaralongwithGeneralManagerofBEL’sPanchkulaunitSureshNfromDefenceMinisterAKAntony.
(Source:“BELbagsRakshaMantri’sAwardin5categoriesforFY2010,”IndiaEnergyNews,19November2011,©2011.Contify.com)
Avantel to deliver first MSS system to BoeingHyderabad-basedAvantelLimiteddevelopedtheindigenousMobileSatelliteSystem(MSS)afterthreeyearsofintensiveR&Dindesign,engineeringandintegrationoftechnologiesrelatedtoradiofrequencydesign,satellitecommunication(satcom),signalprocessingandnetwork.IthassecuredordersworthUS$2.2billionforMSSfromBoeing,UStoinstallthesysteminP-81maritimeReconnaissanceAircraftfortheIndianNavy.AvantelLimitedisengagedinthemanufacture,sale,andexportofRF/microwave,telecom,andsatcomproductsinIndia.
(Source:“AvanteltodeliverfirstMSSsystemtoBoeing,”UNI(UnitedNewsofIndia),24December2011,viaFactiva.)
Embraer completes first flight of EMB 145 EmbraercompleteditsmaidenflightofEMB145AirborneEarlyWarningandControl(AEW&C)aircraftdevelopedfortheGoI.Theplatformisequippedwithanin-flightrefuelingsystem,satcomcapabilityandincreasedelectricalandcoolingcapabilities,alongwithaerodynamicandstructuralchanges.Theseimprovementswillallowtheinstallationofadvancedelectronicsystems
currentlybeingdevelopedbyIndia’sDRDOwithCABS(CentreforAirborneSystems)asthenodalagency.Thedeliveryofthefirstaircraftisexpectedinthefirsthalfof2012.
(Source:“EmbraercompletesFirstFlightofEMB145AEW&CforIndia,”The Weekly of Business Aviation,12December2011,viaFactiva,©2011McGraw-Hill,Inc.)
Research facilities boost prospect for the Futuristic Main Battle Tank (FMBT)ThreenewresearchfacilitieswereopenedatCombatVehiclesResearchandDevelopmentEstablishment(CVR&DE)inAvadionSunday(Chennai),whichhasboostedtheprospectofthefuturisticmainbattletank(FMBT).CVR&DEisalaboratoryundertheDRDO.TwodedicatedtestfacilitieshavebeenopenedtotesthydrogassuspensionunitsusedinFMBTandfuturisticsemi-activesuspensionunits.Anotherfacility,theCombatVetronicsTechnologyCenter,willfocusontechnologiesthatincludein-vehiclenetworkingandembeddedsystemcontrol.
(Source:“Newresearchcentrestofocusonfuturisticbattletank,”The Times of India-ChennaiEdition,12December2011,viaFactiva,©2011Bennett,Coleman&Co.,Ltd.)
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Eye on defence | 30
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NCRGolfViewCorporateTower–BNearDLFGolfCourse,Sector42Gurgaon–122002Tel: +911244644000Fax: +911244644050
6thfloor,HTHouse18-20KasturbaGandhiMargNewDelhi–110001Tel: +911143633000Fax: +911143633200
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PuneC—401,4thfloorPanchshilTechParkYerwada(NearDonBoscoSchool)Pune–411006Tel: +912066036000Fax: +912066015900
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