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Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
Eye on Defence March 2014
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Eye on Defence March 2014

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EY India's quarterly defence news letter.

EY India's quarterly defence news letter.

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  • 1. Contents title Contents subjects March 2014 Eye on Defence Dear readers, The interim budget for 2014–15 was presented by the outgoing Government in the Indian Parliament on 17 February. In the interim budget, the allocation for defence expenditure for 2014–15 has increased by around 10% from last year (now US$37.33 billion). Although, this may seem to be an impressive figure, considering defence budget cuts around the world, but when seen in the light of India’s weakening exchange position, it does not seem like a significant increase. Moreover the declining share of capital expenditure with regards to revenue expenditure in the budget allocation is a cause of worry for the modernization and strengthening efforts of the armed forces. Furthermore, the sharp decline in allocation for some expenditure heads such as “aircraft and aero engine” for the Air Force puts the future of major programs such as the MMRCA, Attack and Transport Helicopters, Aerial Refuelers Aircraft, and Jaguar Re engine program under question. In this era of network-centric warfare, electronic warfare (EW) capabilities have indeed become force multipliers for all military operations. These systems have assumed a pivotal role in strengthening and modernizing India’s overall defence preparedness. The indigenous capability in electronic warfare systems, led by various labs of the DRDO, has made significant progress. The private sector too has developed world class products in this segment, sometimes even competing in ”Buy Global” programs and winning on the parameters of technology and cost. With the EW capabilities becoming the norm for all modern defence platforms, the market for these systems provides good business potential in the Indian context. Therefore, in this edition, we have tried to identify the various facets of EW systems and their application areas. In addition, included briefly are the relevant EW System programs under planning and various stages of execution. Among the regular sections, we have industrial license applicants, RFIs/RFPs released, new projects and investments, joint ventures and alliances, country-level deals and the latest buzz in the industry. I hope you find this issue useful. It has been our constant endeavor to make this publication increasingly relevant to you, and we will appreciate your comments and suggestions in this regard. K. Ganesh Raj Partner and Leader Aerospace and Defence practice Contents Indian Interim Defense Budget 2014–2015: a high- level analysis Indigenous Capability EW Systems Request for information (RFIs) for January – March 2014 Request for proposal (RFPs) for January 2014 – March 2014 List of Industrial Licenses (ILs) filed for November 2013— February 2014 New projects/investments/ contracts Joint-ventures and alliances Country-level deals and initiatives Industry buzz 2 6 12 13 17 19 21 23 25
  • 2. 2 | Eye on Defence As part of the Interim Budget presented in the Parliament of India for fiscal year 2014–15, the budgetary allocation for India’s defence forces has been raised to US$37.33 billion as compared with last fiscal year’s figure of US$33.95 billion (budget estimate), an increase of 9.98 percentage points. It is noteworthy that the growth rate of 9.98% does not change even when the Revised Estimate is taken into account, effectively meaning that there was no revision (neither upward nor downward) in the budget estimate in 2013–14. A national Interim Budget refers to the budget of a government that is going through a transition period. National governments require interim budgets to function in the months it takes for a new government to create its own budget plan. Countries such as India use the term Interim Budget specifically to describe this period. While in absolute terms the budget may have increased by around 10%, it must be assessed against the backdrop of the depreciating foreign exchange position of the rupee, since the same time last year. The capacity to buy new equipment may not have increased by much in real terms, since most of our imports (capital procurement) are paid for in dollars. Moreover, it is disturbing that the share of defence budget in the GDP has declined from 1.8% in 2013–14 to 1.74% in 2014–15. In a neighborhood as volatile as ours these stagnant budgetary provisions may not provide the impetus that the modernization effort is looking for. (1US$=INR60 has been taken for the purpose of conversion) Indian Interim Defense Budget 2014–15: a high-level analysis Capital expenditure Capital budget is that portion of the budget, which is earmarked to buy fresh defence equipment (e.g. tanks, radars, missiles, aircraft, rifle etc.). It also includes instalments — payments made in lieu of equipment purchased in the preceding years. Sometimes these instalments form as much as 70% or more of the capital budget. Certain categories including new aero engines, spares for in-service aircraft, and several categories of trucks and vehicles are also part of the capital expenditure putting further pressure on the capital budget. This year, the allocation for capital expenditure has been fixed at US$14.93 billion. This is an increase of 3.28% from last year if we consider the budget estimate (an increase of 13.59% from the last year if we consider the revised estimate). While the capital budget has shown impressive growth, we must bear in mind that the capital expenditure predominantly comprises imports and is paid for in dollars. Therefore, it bears the brunt of fluctuations in foreign exchange. The ratio of capital expenditure to revenue in the budget for 2013–14 was 42:58. Furthermore, in 2013–14 (in December), around INR 78.68 billion was diverted from the capital to the revenue account after which it fell to 38:62. The current year’s ratio is an unimpressive 40:60. This trend of declining capital expenditure, in relation to the revenue expenditure, is not encouraging for the modernization plans of the armed forces. It seems that the rising cost of maintaining the defence forces is restricting its modernization, pointing toward lack of central planning. 33.95 33.95 37.33 2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget) Total Defense Expenditure (US$ billion) % increase from 2013-14 (Budget): 9.98% % increase from 2013-14 (Revised): 9.98% % increase from 2013-14 (Budget): 3.28% % increase from 2013-14 (Revised): 13.59% 14.46 13.15 14.93 2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget) Capital expenditure (US$ billion)
  • 3. 3Eye on Defence | 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 2013-14 (Budget) 2013-14 (Revised) 2014-15 (Revised) Army Navy Airforce Defence Ordnance Factories R&D Other Breakdown of capital expenditure (in US$ billions) The budget allotted to the army (53% share of the allocated budget) has seen an impressive increase of 19% over last year. Last year, the army was to disburse more than INR646.8 billion — 92% of its capital allocation — for pre- committed expenditures (most of it toward ammunition, radars and missiles programs), leaving it with just INR29.55 billion for new contracts. In 2014–15, the army has its eyes set on big ticket contracts such as the M777 Light Howitzer, 197 Helicopters contract, the Close Quarter Carbines project, Javelin Missile and Night Vision Equipment. With a substantial increase in the budget, it may be feasible for the army to sign some of these contracts. There has also been announced a provision of INR357 million in the interim defence budget for prototype development under the “Make” procedure. It is unclear how this money will be allocated or if it will be enough, since major programs such as TCS, BMS and FICV are in the pipeline under the Make procedure. Category of Equipment 2013–14 (BE) (in INR million) 2013–14 (RE) (in INR million) 2014–15 (I) (in INR million) % Growth of 2014–15 (I) over 2013–14 (BE) Aircraft and aero engine 15277.9 11823.2 21279.9 39.29 H&MV 20243.7 14809.4 21281.6 5.13 Other equipment 97588.6 78894.7 161559.3 65.55 Rolling stock 0 815 2750.7 Rashtriya rifles 160.2 1669.9 2130.5 1229.9 Total acquisition expenditure 133270.4 108012.2 209002 56.83
  • 4. 4 | Eye on Defence Category of equipment 2013–14 (BE) (in INR million) 2013–14 (RE) (in INR million) 2014–15 (I) (in INR million) % Growth of 2014–15 (I) over 2013–14 (BE) Aircraft and aero- engine 255395.9 285888.5 162714.3 -36.29 H&MV 28.2 361.4 1942.9 6789.72 Other equipment 115056.5 73915.5 153521.7 33.43 Total acquisition expenditure 370480.6 360165.4 318178.9 -14.12 The budgeted provision for the Air Force has declined from last year; however, the Air Force exhausted its share of the budget in 2013–14 mainly paying instalments toward already running programs. Especially interesting is the major drop in budgetary provision for the aircraft and aero-engine head. Considering that a major portion of this allocation will already be committed toward contracts such as C-17, C-130J, Basic Trainer, LCA, SU-30MKi signed in previous years, it raises serious questions on the ability of the Air Force to undertake major fresh programs expected to come up for signing in 2014–15 such as the MMRCA, attack and transport helicopters, aerial refuelers aircraft, Jaguar Re engine program among others. The MoD will have to make a down-payment of up to 15% of the contract value on signing of the contract with Dassault Aviation if it decides to sign the MMRCA this year. The Naval budget for 2014–15 has also witnessed a decline in absolute terms. The Navy is expected to finalize major programs such as the Heavy Torpedo programs, Barak missiles, Mine Counter Measure Vessels, Kolkata Class Destroyers in 2014–15. Most of its capital budget last year was spent toward paying for already running programs such as the OPVs, Project 17 Shivalik Class Frigates, INS Vikramaditya and some fresh programs such as the Towed Active Array Sonar. The aircraft and aero engine head under the Navy has seen a sharp decline putting the fate of programs such as the multi-role helicopters, additional P8i aircraft under question. Category of Equipment 2013–14 (BE) (in INR million) 2013–14 (RE) (in INR million) 2014–15 (I) (in INR million) % Growth of 2014–15 (I) over 2013–14 (BE) Aircraft and aero- engine 67087.1 74184 33306.9 -50.35 H&MV 537.4 39 342.7 -36.23 Other equipment 21928.2 25148.7 43581 98.74 Joint staff 7400.8 6192.7 828.8.7 12 Naval fleet 117722.6 87578.7 12856.0.6 9.21 Naval dockyard 20111.7 5500 1612.8.7 -19.8 Total acquisition expenditure 234787.8 198643.1 23020.8.6 -1.95
  • 5. 5Eye on Defence | Revenue expenditure Revenue expenditure includes budget for pay and allowances, rations, clothing, stocking of spares, petrol, oil and lubricants, maintenance works, etc. In the Interim Budget it has shown a growth of 15% from the estimated budget and that of 7.7% from the revised budget of 2013– 14. This increase may be attributed mainly to the increase in pay and allowances of soldiers. Adding significantly to this number will be the salaries and pensions for 80,000 fresh soldiers being added to the Army as part of the new Mountain Strike Corps being raised in the North East. The cost of raising these divisions is expected to be to the tune of INR650 billion with an annual obligation of around INR80 billion. The current revenue budget may not be equipped to handle this pressure. How then the government decides to plug in this gap remains to be seen. In 2013, the revenue expenditure overshot its allocation due to increased fuel prices globally and India’s weakening foreign exchange position. This shortfall was made good by transferring money from the Capital Budget account to the revenue account. 19.49 20.80 22.40 2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget) Revenue expenditure (US$ billion) -2 0 2 4 6 8 10 12 14 16 18 2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget) Army Navy Air Force Defence Ordnance Factories R&D Breakup of revenue expenditure (US$ billions) % increase from 2013-14 (Budget): 14.95% % increase from 2013-14 (Revised): 7.70% References 1. “What-is-interim-budget-or-vote on account,” IBN Live Interim Budget 2014, www.IBNlive.in.comnews, 17 February 2014 2. Ajai Shukla, “Defence budgeting based on delusion,” Business Standard, 17 February 2014 3. “IDSA comments, India’s Interim Defence Budget 2014– 15,” IDSA, 23 February 2014
  • 6. 6 | Eye on Defence Indigenous capability EW systems The global proliferation of electronics and communications has evolved into a significant technologies advantage. Electronic Warfare (EW) is a key element in the Armed Forces ongoing effort to rebuild and modernize their capability. This also presents challenges, since our adversaries are constantly developing the means to use these same wireless networks, electronics, computer networks, and electronic warfare capabilities to launch attacks. To meet these challenges, the Armed Forces are implementing and integrating network and electronic warfare capabilities to counter the hostile use of cyberspace, space, and the electromagnetic spectrum. To put simply EW is any military action involving the use of electromagnetic and directed energy to control the electromagnetic spectrum or to attack the enemy. It has three main domains. Electronic attack (EA) Use of electromagnetic energy, directed energy, or anti-radiation weapons to attack personnel, facilities, or equipment with an aim to degrade, neutralize, or destroy enemy combat capability. These include: •  Electromagnetic Jamming (e.g., self-protection jamming or standoff jamming) •  Positioning, navigation, and timing denial •  Electromagnetic deception •  Directed energy •  Anti-radiation missile •  Expendable flares, decoys Electronic protection (EP) Actions taken to protect personnel, facilities, and equipment from any effects of friendly or enemy use of the electromagnetic spectrum that degrade, neutralize, or destroy friendly combat capability through: •  Electromagnetic spectrum management •  Electromagnetic hardening •  Emission control Electronic support Actions tasked by, or under direct control of, an operational commander to search for, intercept, identify, and locate or localize sources of intentional and unintentional radiated electromagnetic energy for the purpose of immediate threat recognition, targeting, planning, and conduct of future operations. The measures adopted for above purposes are broadly categorized as under: Electronic Warfare- Measures Electronic Support Measures (ESM) Electronic Counter Measures (ECM) Electronics Counter Countermeasures (ECCM) • Intelligence • ELINT • COMINT • Detection • Direction Finding • Analysis • Identification Active Active Deception ChemicalJamming Mechanical Passive Passive
  • 7. 7Eye on Defence | Wars in the future will be primarily fought in the electronic domain. Electronic warfare (EW) plays both strategic and tactical role in any modern military operation. These assets are employed for supportive, protective and offensive measures. The specific capabilities and equipment specifications are usually highly classified. The EW systems should have the following characteristics in order to be effective force multipliers in the Indian context: •  Multifunctional and inter-operable with various platforms; we need to integrate tri-service EW systems for information sharing and collaborative action. •  Secure and jam-resistant communications with inbuilt robust Electronic Counter Counter Measures (ECCMs) to maintain healthy service levels •  Ability to intercept global system for mobile communications (GSM), code division multiple access (CDMA), high frequency (HF) to microwave frequency and satellite monitoring, with both active and passive systems •  Focus on deciphering, frequency hopping and automatic switch control etc. for multi-range communication needs. Indigenous capability DRDO has been the main design agency with BEL being the production agency for most key indigenous EW programs. Defence Electronics Research Laboratory (DLRL) Hyderabad has been developing communications intelligence (COMINT)/ electronic intelligence (ELINT), land and naval systems such as Ajanta, Ellora, Sangraha, Samyukta, Catch, and Coin. Furthermore, Defence Avionics Research Establishment (DARE) Bangalore developed airborne EW systems for JAGUAR (DAWN) through imported technology for development of indigenous family of Radar warning receivers (RWR) such as Tranquil, Tarang, Tarang-1B, R-118 etc. Airborne Self Protection Jammer (ASPJ) system developed Tempest inducted in limited numbers. By now, India’s EW capabilities include secure and jam- resistant communications, EW systems and simulators, COMINT and Interception Systems, antenna, satellite communication systems (SATCOM Systems), networks, stabilized platforms for air-borne radars, C4I systems and missile support systems, encryption and secrecy systems etc. Airborne EW programs Several other programs are being handled by DRDO, HAL, and BEL with foreign partnership in Air Borne EW segment, which are discussed as under: Program No. of platforms Estimated cost (in INR billion) Partners MiG-27 UPG (TAKSHAK) 40 7.5 ELTA PA - BEL LCA (MAYAVI) 80 + 12 ELISRA Su -30 (HADF) 40 2 ELISRA PA - BEL ALH 100+ 3 SAAB, Avitronics, L&T HAWK 88 N/A Open MiG-29 UPG 63 10 ELISRA, Electtronica The fourth-generation EWS are currently being developed by the state-run Defence Avionics Research Establishment (DARE) and Defence Electronics Research Laboratory (DLRL).
  • 8. 8 | Eye on Defence Industry capability The ever-growing potential of EW systems as a force- multiplier for the military has been recognized by private companies as well. To begin with, they have played a very effective role with their expertise in electronics, communication and IT. The Indian private sector has the necessary licenses for design, development and production of EW systems and also demonstrated indigenous capability in most of the domains, which has been verified during NCNC evaluations. They also have flexibility to leverage the eco system to obtain comprehensive ToT and IPRs for imported sub systems, which will lead to self-reliance. Some of the firms active in the domain are Tata Power SED, Larsen & Toubro, Alpha Design, Axis Technologies etc. Private players have been prime bidders even in Buy (Global) EW tenders and are willing to invest stand alone or as Consortia modes. They can provide Lifecycle Product Support -Existing Pan India. L&T & TATA Power SED are identified by DRDO as candidates for Engg & Life cycle Support Agency (ELSA) for AEW&C project, beside can take on Annual Maintenance Contract. Tata Power SED bagged, a rare “Buy Global” defence contract by being the lowest bidder in a US$186 million contract to develop and supply two integrated electronic warfare systems for mountainous terrain (IEWS-MT) for the Indian Army in 2011. It is expected to open a larger market for future EW systems for private players. Although work is in progress indigenously, there is adequate scope to bring in latest technology with the Indian private players, thereby increasing the effectiveness of such systems, so vital in this field where the better system dominates the spectrum. Capability to work outside of the radio-frequency band and in the infrared band would facilitate search and track (IRST) and make possible anti- electronics weapons. Market size The continuing exploitation of the electromagnetic spectrum will be a driving factor for market growth. So far the market has been dominated by DRDO and government sector production units. The market will become more competitive with the entry of private sector and partnership with foreign OEMs. The competitors will engage in joint ventures to have the technical know-how and the technology. Though the 4th Generation EW can be developed indigenously, scope exists for foreign companies to render technical assistance to the Indian players to produce state-of-the-art systems. The global electronic warfare market is estimated to be US$12.15 billion in 2014 and is expected to register a CAGR of 4.50% to reach US$15.59 billion by 2020. In the Indian context, the EW systems segment forms almost one- third of Communications and Avionics market, which in turn, forms around 4.7% of total procurement. The annual market size (2010–13) of this market has been worth INR35–40 billion and is growing at around 8% annually, over the years. 528 559 600.2 640 685 0 100 200 300 400 500 600 700 800 2011 2012 2013 2014 2015 Amountin$Million Indian EW and Communication Market Share of Communication & Avionics in Total Procurements (2010-2013 36% 9% 10% 1% Communication and Avionics Other Equipment Naval Fleet Naval Dock-Yards Misc. Land Construction Air-Craft and Aero-Engine Heavy and Medium Vehicles 1% 15% 20.3% 4.7% 3%
  • 9. 9Eye on Defence | Land systems Land-based EW systems are moving beyond jammers, which also block friendly communications, to selective and reactive jamming capabilities, combined with flexibility, power, modularity and portability. This in turn will represent design challenges/opportunities for the next generation of land-based EW systems and components that will need to operate across wider bandwidths and higher frequencies as the signal environment continues to become more complex and congested. Some of the major systems required are: •  Replacement of Russian P series (P-18, P-19), Indra and the Reporter radars •  Procurement of MPRs and LLTRs worth more than US$1.5 billion (INR75billion) in the next five to seven years •  Procurement of mobile EW systems, both wheeled and tracked, worth around US$400 million (INR 20 billion) •  Development of light-weight mounted radars for its manned and unmanned aircrafts and helicopters •  Development of EW systems specific for use in the low intensity conflict (LIC) areas to be used in mountains, plains and jungle terrain •  Development of EW systems specifically for deserts, mountains, and heliborne platforms •  Development of EW systems for active protection to land vehicles Naval systems Sangraha comprises a family of electronic warfare suites, such as Ajanta and Ellora, for use on different naval platforms (helicopters, vehicles, and small ships) capable of intercepting, detecting, and classifying. The systems employ a modular approach facilitating deployment on various platforms such as helicopters, vehicles and small ships. Airborne EW programs Some of the recent direct big ticket procurements or those in pipeline with foreign EW suits are VVIP Boeing(FMS)-3, C-130 (FMS)-6, Heavy Lift Heptrs-12, Mi-17 upgrade- 70+, Mi-17 Procurement- 80, Light Heptrs-(A/N/AF)-197, MMRCA- 126, M-2000 UPG-52 etc. Airborne EW, which encompasses electronic attack (including jamming and spoofing), electronic protection against jamming and cyber- attack, and offensive cyber capabilities to attack enemy networks would be future requirements. Heli-borne EW systems The specifications are under formulation for the plans to procure helicopter-borne early warning systems. For HAL Dhruv helicopter, HAL and IAI jointly developed a glass cockpit. Avionics suites consisting of a HF/UHF communications radio, identification, friend or foe (IFF) recognition, Doppler navigation, and a radio altimeter; a weather radar, navigation radars and also avionics for day- and-night flight observation are other major subsystems required. Saab Compact Integrated Defensive Aids Suite (CIDAS) has been selected by HAL for its Dhruv, Rudra and LCH helicopters. Saab has signed an MoU with HAL in 2011 to form a joint venture for airborne EW systems. Similarly, Bharat Electronics Ltd.. and Elbit Systems-Elisra are working together on airborne electronic warfare programs for Indian defence requirements.
  • 10. 10 | Eye on Defence Ballistic Missile Defence A two-tier ballistic missile defence (BMD) network is at an advanced stage of development by the DRDO. Currently, it is using the ELTA Systems-built EL/M-2080 “Green Pine” ground-based active phased-array L-band long-range tracking radar (LRTR). The fielding of the BMD may see the need for more such radars (six to seven) at a cost of US$1.5 billion (INR75 billion). Much of the work involved is expected to be out sourced by DRDO. Some of the recent RFIs/RFPs in this segment are as under: Date of issue RFI details Indian Air Force 15-Jul-10 Heliborne EW System  17-Dec-10 Light Weight Integrated (LWI) Helmet of Chetak/ Cheetah for Helicopters Aircrew 02-Feb-11 Airborne Sigint System and Tactical Elint Pod 27-May-11 Instrumented EW Range 03-Dec-12 Passive Surveillance and ELINT system 13-Aug-13 Close in Weapon Systems (CIWS) 13-Aug-13 Low Level Quick Reaction Missile System 13-Aug-13 Medium Range Surface to Air Missile System 13-Aug-13 Long Range Surface to Air Missile System 13-Aug-13 New Generation Beyond Visual Range (NG BVR) Air to Air Missile 13-Aug-13 New Generation Within Visual Range (NG WVR) Air to Air Missile 19-Aug-13 Radar Warning Receiver 19-Aug-13 Counter Measure Dispensing System (CMDS) 19-Aug-13 Procurement of Laser Warning Receiver 19-Aug-13 Procurement of Missile Approach Warning System 19-Aug-13 Procurement of Directed Infrared Counter Measure System 19-Aug-13 Radar Warner Jammer 19-Aug-13 Procurement of Escort Jammer 24-Sep-13 High Power Radar Indian Army 26-Nov-09 Infra-Red Jammer 01-Jun-10 ELINT Intercept Receivers 16-Aug-12 ELINT Intercept Receiver for Mountainous Terrain 03-Sep-13 SAKRIYA (Radio And Cell Phone Jammer Counter IED System) Qty-22 Indian Navy Aug-10 COMINT System with DF Capability for Project 75 (Submarines) Oct-10 Six medium-range maritime reconnaissance aircraft capable of maritime patrol, anti-surface warfare, electronic intelligence and search and rescue. 25-Nov-10 Integrated ASW Defence Suite 02-Aug-13 EOIR (Electro Optical & Infra-Red Payload) for Helicopter 02-Aug-13 Infra-Red - Visual Search Light 24-Oct-13 Electro Optical System with Automatic Infrared Search and Track Facility Having Provision for Remoting Gun Mounts (EOIRST) Request for information (RFIs) - EW SYSTEMS 2009–2014
  • 11. 11Eye on Defence | Request for proposal (RFPs)- EW systems– 2009–2014 Date of issue RFP details Indian Air Force 23-Apr-13 TARANG Mk-1B Radiation Warning Receiver System Mechanical Mod Kits for IL-76/IL-78 fleet of IAF; Qty: 6 15-Jul-13 Automatic electronic warning system 06-Jan-14 Airborne RF Package Mk I (M. No. SYABPDE1-Mk1) + Two items; Qty: 2 India Army 13-Mar-13 Advance Surveillance Receiver; Qty: 48 21-Mar-13 Gamma Sensor; Qty: 18 DRDO and OFB 18-May-12 Laser Warning System 13-Jan-14 RF Multiplexer Module; Qty: 3 16-Jan-14 Wireless radio data link modems with accessories - DRDO 06-Feb-13 G Band Wave Guide Components 15-Feb-13 S Band WR 284 waveguide calibration kit and WR 137 C-Band waveguide calibration kit; Qty 01 No. 22-Jan-14 Laser diffraction based particle size analyzer References: 1. Field Manual No. 3-36, Electronic Warfare in Operations, Headquarters Department of the Army Washington, DC, 2014IANS, “BEL to invest $100 million in electronic warfare products,” Business Standard, 18 February 2014 2. “Electronic warfare offers Rs 25,000-cr biz for India Inc,” PR Newswire, February 21 2012 3. “Electronics,” DRDO website, http://drdo.gov.in/drdo/ English/index.jsp?pg=tech_electronics.jsp, accessed 5 March 2014
  • 12. Date of Issue RFI Details Response Date Issued By Defence Service 28-Feb-14 Night Sight for 7.62mm Light Machine Gun (TI) 26-Mar-14 PMO F-INSAS For IA 25-Feb-14 Passive Night Sight (PNS) for Rifle AK-47 20-Mar-14 DG of Weapons and Equipment (W E-8/9) For IA 25-Feb-14 Intermediate Jet Trainer Aircraft 04-Apr-14 Principal Director, Air Staff Requirement For IAF 26-Feb-14 Digital Side Scan Sonar 18-Mar-14 Directorate of Hydrography MoD Navy For IN 26-Feb-14 Portable Shallow water Multibeam System 18-Mar-14 Directorate of Hydrography MoD Navy For IN 21-Feb-14 Cots Radar With Multi Function Display 30-Mar-14 Directorate of Staff Requirements Navy For IN 21-Feb-14 Boom Defense System 31-Mar-14 Directorate of Staff Requirements Navy For IN 21-Feb-14 Cots Radar With Multi Function Display 30-Mar-14 Directorate of Staff Requirements Navy For IN 19-Feb-14 Work Boats 14-Mar-14 PD(SA) DTE of Ship Acquisition Coast Guard For ICG 23-Jan-14 Electronic Data Display Unit for Indian Army 10-Feb-14 Comdt, EME School For IA 10-Jan-14 Mobile Integrated Network Terminal (MINT) for mountain 05-Mar-14 Directorate of System Applications Directorate General of Signals For IA 02-Jan-14 Conductivity Temperature Depth (CTD) System 27-Jan-14 Directorate of Hydrography. MoD (Navy) For IN 02-Jan-14 Autonomous Underwater Vehicle (AUV) 27-Jan-14 Directorate of Hydrography, MoD (Navy) For IN 12 | Eye on Defence Request for information (RFIs) for January – March 2014
  • 13. 13Eye on Defence | Request for proposal (RFPs) for January 2014 – March 2014 Date of Issue RFI Details Response Date Issued By Remarks 07-Mar-14 Protective Masks (3-M Full Face Masks) 12-Mar-14 AOC, 3 BRD Air Force For IAF Qty: 12 Nos. 06-Mar-14 Very Short Range Air Defence System Simulator 27-Mar-14 Army Air Defence For IA Qty: 01 Nos. 04-Mar-14 Driving Simulator Four Wheel 19-Mar-14 Air Force Station Digjam Road For IAF 04-Mar-14 Test Equipment for New Generation Tank Sight 19-Mar-14 Comdt, EME School. For IA 04-Mar-14 Bullet Proof Jacket NIJ Threat level III 24-Mar-14 Naval Materials Research Laboratory Issued by DRDO Qty: 28Nos. 27-Feb-14 Igla Training Simulator 19-Mar-14 Army Air Defence Centre, Golabandha, For IA 24-Feb-14 Set Beam Search Light 27-Mar-14 Procurement Cell For NSG Qty: 100 No. 25-Feb-14 R-2 Airborne Antennas 03-Apr-14 Aeronautical Development Establishment Issued by DRDO 19-Feb-14 Coxed Four FRP Floating Jetty 10-Mar-14 NS Zamorin Ezhimala Naval Academy. For IN Qty: 10 19-Feb-14 Laser Radial Boat Equipment (Power Pack) 04-Mar-14 INS Zamorin, Naval Academy PO For IN Qty: 06 19-Feb-14 LWI Helmet for CTK/ CTH Hepter 13-Mar-14 DTE of Procurement Air HQ (VB), For IAF 18-Feb-14 LWI Helmet, Mask Oxygen Mic Lead and Microphone Dynamic 13-Mar-14 DTE of Procurement Air HQ (VB), For IAF 17-Feb-14 Structural Retrofit and Life Extension Task on Thirty Three MiG-29 Fighter Aircraft. 17-Apr-14 Head Quarters Maintenance Command, Nagpur – 440007 For IAF 14-Feb-14 Remote opening tool kit (CROT) 07-Mar-14 The Commandant, College of Military Engineering, For IA Qty: 2, explosive detective kits Qty: 1, Hook and line set 14-Feb-14 HVF Tender (11 Types of NBC Pads 18-Mar-14 HVF Avadi Issued by OFB 13-Feb-14 CCTV Camera 06-Mar-14 Naval Command For IN
  • 14. 14 | Eye on Defence Date of Issue RFI Details Response Date Issued By Remarks 13-Feb-14 4,381 Quantity of Round 122MM HOW (Full Charge) Smoke (White Phosphorous) Ammunition 08-May-14 MGO PPO For IA 13-Feb-14 4,751 Quantity of Round 122MM HOW (Reduced Charge) Smoke (White Phosphorous) Ammunition 08-May-14 MGO PPO For IA 13-Feb-14 9,058 Quantity of Round 122MM HOW HE (Reduced Charge) Ammunition 08-May-14 MGO PPO For IA 13-Feb-14 122MM HOW Illuminating (Full Charge) Ammunition 08-May-14 MGO PPO For IA Qty: 3,144 12-Feb-14 Security Equipment (Multifunctional Electronic Target System) 03-Mar-14 For IAF 10-Feb-14 Proc of training packages of guided weapon (GW) basic including display system 04-Mar-14 Army Air Defence College : Gopalpur For IA 11-Feb-14 TACAN/9039119 transistor 0912-300 KC16 25-Feb-14 LP Cell 9 BRD, AF For IAF Qty: 04 03-Feb-14 Cartridge SA 7062 MM (With Steel Core Bullet) Rimmed - QTY 76,04,171 17-Apr-14 DDG PPO For IA 25-Jan-14 Electronic Ballast 40 Watt 10-Feb-14 General Manager, Ordnance Equipment Factory, Kanpur Issued by OFB 24-Feb-14 Shrapnel Proof Ballistic Protection Goggles 03-Feb-14 HQ TC For IAF Qty: 100 23-Jan-14 General Service Life Jacket 27-Feb-14 Controller of Procurement Material Organisation (Mumbai) For IN Qty: 4950 22-Jan-14 Laser diffraction based particle size analyzer 19-Feb-14 Director, HEMRL, Pune Issued by DRDO
  • 15. 15Eye on Defence | Date of Issue RFI Details Response Date Issued By Remarks 20-Jan-14 FUZE 213 MK-5 (M-3) for 81MM ILLG 07-Feb-14 General Manager, Ordnance Factory, Dehuroad (Maharashtra), Pune Issued by OFB 20-Jan-14 FZ 117 DA (E) with cap for 105MM HE 27-Jan-14 Issued by OFB 22-Jan-14 Aerial Bomb 100-120 KG.RDZ (Empty) 25-Feb-14 The General Manager, Ordnance Factory Khamaria, Jabalpur Issued by OFB 06-Jan-14 Computed Radiography System (CR System) 28-Jan-14 Directorate General of Medical Services (Air) Air Headquarters (RKP) For IAF 06-Jan-14 Infra Red Thermometer (Thermal Gun) 13-Feb-14 Deputy General Manager (Materials), Cochin Shipyard For IN 06-Jan-14 Computed Radiography System 28-Jan-14 Directorate General of Medical Services (Air) Air Headquarters (RKP) For IAF 06-Jan-14 Airborne RF Package Mk I (M. No. SYABPDE1-Mk1) + Two items 29-Jan-14 Aeronautical Development Establishment, Bangalore For IAF 06-Jan-14 Digital Aneroid Barometer 04-Feb-14 Directorate of Meteorology, AIR HQ (VB) For IAF 06-Jan-14 Two Wind Direction And Speed Sensors 04-Feb-14 Directorate of Meteorology, AIR HQ (VB) For IAF 06-Jan-14 Supply Of Digital Mobile Met Kit 04-Feb-14 PD Met, Directorate of Meteorology, Air HQ (VB For IAF 06-Jan-14 Radio Controlled Target Boats (RCTBs) 19-Feb-14 Directorate of Indigenisation, Integrated Headquarters, Ministry of Defence (Navy) For IN Qty: 2 04-Jan-14 Tactical Vest 22-Jan-14 Col EME, EME Branch, HQ Central Command, Lucknow Qty: 1040
  • 16. 16 | Eye on Defence Date of Issue RFI Details Response Date Issued By Remarks 02-Jan-14 Bomb Arial 100-120 Kg Empty 18-Feb-14 Deputy General Manager, OFB Khamaria, Jabalpur Issued by OFB Qty: 1500 Nos. 02-Jan-14 Bomb 450 KG HSLD Empty ASY ARDE- 2122 18-Feb-14 Deputy General Manager, OFB Khamaria, Jabalpur Issued by OFB Qty: 1000 Nos. 02-Jan-14 Bomb 250 KG HSLD ARDE-9501-01/1 Empty 18-Feb-14 Deputy General Manager, OFB Khamaria, Jabalpur Issued by OFB Qty: 1640 Nos. 01-Jan-14 Procurement and Installation of Video Surveillance System Including Command and Control Centre 06-Feb-14 Air Officer Commanding, Air Force Station Jodhpur For IAF 01-Jan-14 Fuze Percn. DA. No.117 empty MK-20 with cap to CQA (A) part no. QX 244GE, DC 33752-A and specn. NO. 1A 1204 27-Jan-14 The General Manager, Ordnance Factory Chanda Issued by OFB
  • 17. 17Eye on Defence | List of industrial licenses (ILs) filed for November 2013— February 2014 Application no. and date Name of the applicant Item of manufacture 193 28/02/2014 Vihaan Networks Ltd. Base transceiver station, base station controller, main switching center, charge control unit, CCU combiner, voltage conversion unit, power cable assembly, OMC racks, TD node/ RT node, e-kiosk, radio unit, repeater, surveillance/IP camera 171 27/02/2014 Mahindra Aerostructures Pvt. Ltd. Airframe parts and assemblies for aircraft and unmanned aerial vehicles specially designed for military/defense use 142 25/02/2014 Kadet Defence Systems Pvt. Ltd. Unmanned aerial vehicles, unmanned surface vehicles, launchers and recovery support equipment, airframe and parts thereof for aerial targets and UAVs, miss distance indicators and scoring systems, shelters, ground control station and ground support unit 60 17/02/2014 Best Forgings India Pvt. Ltd. Manufacturing of parts and accessories of n.e.c. for special purpose non-electrical machinery equipment n.e.c.— parts of rifle and guns 57 17/02/2014 Raja Explosives Pvt. Ltd. Detonators, fuse, cast boosters, PETN and other items 25 05/02/2014 Analogic Controls India Ltd. Manufacturing of safety fuses, electronic warfare systems, design, development and production of defense electronics systems and sub systems, missile systems etc. 20 31/01/2014 Investment & Precision Castings Ltd. Manufacturing of parts and accessories of n.e.c. for special purpose — non electrical machinery equipment n.e.c.— parts of rifle and gun 18 30/01/2014 Neco Defence Systems Ltd. Bulletproof jacket, bulletproof helmet, body protector, bulletproof other items 13 22/01/2014 Radiant Wiring Systems Pvt. Ltd. Wire harness 07 20/01/2014 Amertec Systems Pvt. Ltd. Manufacturing of automatic test equipment and simulators for radars, seekers, EW and data link applications, electro-optic units, electro mechanical systems, UAVs, missile systems, pods, T/R modules, RF and microwave sub systems 05 20/01/2014 Hi - Tech Investment Castings Ltd. Manufacturing of weapons and ammunition, ignition parts and other electrical parts for internal combustion engines, air and spacecraft and related machinery, weapons and ammunition. 04 17/01/2014 Micron Instruments Pvt. Ltd. Weapon systems such as mortars, rocket launchers, grenade launchers, and missile launchers 79 31-12-2013 UMS Technologies Ltd. Manufacture of steam engine and turbine 78 30-12-2013 Economic Explosives Ltd. New generation explosives for defense applications, new generation binders and plasticisers for rocket propellants for defense 73 20-12-2013 ESS AAR Tools Pvt. Ltd. Machined components, special purpose machines
  • 18. 18 | Eye on Defence Application no. and date Name of the applicant Item of manufacture 71 17-12-2013 Micronel Global Engineers Pvt. Ltd. Aerosystems parts and items of aircraft and helicopter and UAV 70 25-11-2013 Punj Lloyd Aviation Ltd. Manufacturing of aircraft, LAV, UAVs, aero engines and aircraft equipment, related equipment and components specially designed or modified for military use 68 25-11-2013 Punj Lloyd Aviation Ltd. Forging, casting, aero-structures and components for aerospace specially designed to be used in military platforms, launcher use and other unfinished products 67 25-11-2013 Punj Lloyd Aviation Ltd. Maintenance, repair and overhaul activities of aircraft, lighter than air vehicles, unmanned aerial vehicles, aero-engines and aircraft equipment, related equipment and aerospace-related equipment and components 66 22-11-2013 Belmaks Pvt. Ltd. Manufacture of sheet metal components for defense 65 18-11-2013 OIS Aerospace Pvt. Ltd. Manufacturing of parts accessories, sub-systems of aircraft lighter than air vehicles, unmanned aerial vehicles, and aerospace software engineering; maintenance of the above and ground support systems 64 14-11-2013 Titan Company Ltd. Design, development and manufacturing of components, parts, assemblies, sub-assemblies, systems and subsystems for aircraft, helicopters, avionics, aero engines, airborne systems, UAV, UVS, warfare system, satellite systems, weapon systems, weapon systems, rocket and missile launchers, etc. 63 14-11-2013 SKL (India) Pvt. Ltd. General sets, control panels, repair of electrical indl. machines
  • 19. 19Eye on Defence | New projects/investments/contracts Name of entity Project details Value* Indian Air Force (IAF) • ►The IAF is looking to buy 14 squadrons of indigenously built Tejas Light Combat Aircraft. Each IAF combat squadron has 21 fighter aircraft; therefore, 14 squadrons will require 294 Tejas fighters. • The Tejas will cost INR2.09 billion per fighter when the entire development cost on the fighters is amortized. However, Hindustan Aeronautics Ltd. (HAL), which manufactures the Tejas, quoted a reduced price for the IAF at INR1.62 billion a fighter. INR476 billion Ordnance Factory Board (OFB) • OFB is seeking help from overseas companies to modernize its factories. The modernization program is expected to begin in April 2014. • Currently the OFB is evaluating UK-based BAE System’s offer to modernize its 41 factories. • The modernization efforts will continue through the Twelfth five-year plan period of (2012–17). INR157 billion Ministry of Defence (MoD) • The MoD has cleared multiple procurement proposals for the Indian armed forces in a meeting of the defense acquisitions council (DAC). • The different proposals cleared include an INR40 billion plan to procure hand-held thermal imagers with laser range finders from Bharat Electronics Limited (BEL). • A project to procure thermal imaging sights worth around INR30 billion was also cleared for the tank fleet of the Army including T-90 and T-72 tanks and the BMP armored personnel carriers. • The major chunk of more than 40,000 light machine guns will go to the Army, while the Air Force and the Navy will get around 3,000 pieces from this acquisition. • The Army’s Special Forces also got approval for the light armed multi-purpose vehicle (LAMV) worth around INR12 billion under which 702 vehicles will be procured. • Finally, the DAC approved an INR18 billion project to modernize five ordnance depots of the Army. INR90 billion MBDA • MBDA won a contract to provide IAF with air-to-air close combat missiles for its British- made Jaguar aircraft. • It has beaten Rafael of Israel and Rosoboronexport of Russia in the tender floated in 2009. • Though the missile trials were completed nearly two years ago, the MoD delayed announcing the short-listed vendor. MBDA is waiting for finalization of the contract. INR22 billion Finmeccanica • DAC cleared a proposal to procure Black Shark torpedoes from Finmeccanica for the Navy. Black Shark torpedoes are multi-purpose weapons designed to launch from both submarines and surface vessels. • The Indian Army plans to buy 98 torpedoes, out of which 20 would be procured from the original equipment manufacturer and the rest would be manufactured by Bharat Dynamics under licence in India. INR19 billion
  • 20. 20 | Eye on Defence Name of entity Project details Value* Indian Space Research Organisation (ISRO) • ISRO got the GoI’s clearance to establish a high-tech rocket assembly center and to set up its third launch pad in the Satish Dhawan Space Centre (SDSC) at Sriharikota in Andhra Pradesh. • With more than 50 missions in the queue during the next five years, ISRO plans to set up the high-tech launch pad by 2016. • The launch complex will provide complete support for vehicle assembly, fueling, checking and launch operations. It will also have facilities for launching sounding rockets meant for studying the earth’s atmosphere. INR5 billion Pilatus • Swiss aircraft maker company, Pilatus, announced plans to establish a manufacturing facility in India. • The facility will produce airframes in the beginning for its single-engine turboprop PC-12 aircraft. • The company also plans to set up a business unit named Pilatus Aircraft India, within the next three years, to expand its Indian operations. NA Bharat Heavy Electric Limited (BHEL) and DRDO • BHEL plans to collaborate with DRDO to indigenously develop field guns for the Indian Army, including a more modern and potent variant of the infamous 155 mm Bofors Howitzer guns. • BHEL is likely to produce a lower or higher calibre version of the upgraded indigenous version of original Swedish 155 mm Bofors Howitzer, which the Ordnance Factory Board (OFB) is already developing. • BHEL also plans to participate with the MoD to manufacture smaller field guns of 30 mm size, apart from large-sized 155 guns. NA *The values of the deals have been converted to Indian Rupees using Oanda currency conversion tool 1US$ = INR62 Sources: 1 “Rs 9,000-cr weapons acquisition plan cleared,” Deccan Herald, 25 February 2014, via Factiva ©The Printers (Mysore) Private Ltd. 2. “A number of projects to do away with the night blindness,” Press Trust of India, 24 February 2014, via Factiva. 3. “HAL plans to establish first aerospace university in India,” India Public Sector News, 19 February 2014, via Factiva. 4. “IAF will buy 14 Tejas squadrons, lowering costs,” Business Standard, 11 February 2014, via Factiva. 5. “DRDO’s UAVs to hunt down Naxals,” The Hindu, 8 February 2014, via Factiva, © Kasturi & Sons Ltd. 6. “Swiss aircraft maker to establish manufacturing unit in India,” Mena Report, 7 February 2014, via Factiva, © Albawa. 7. “Pilatus to setup manufacturing facility in India,” Indian Business Insight, 6 February 2014, via Factiva, ©Informatics (India) Ltd. 8. Vivek Raghuvanshi, “MBDA to provide missiles for Indian AF Jaguars,” Defense News, 3 February 2014, via Factiva © Army Times Publishing. 9. “Tata Group looking for bigger defence sector pie,” Financial Express, 30 January 2014, via Factiva. 10. “BHEL to expand footprint in defence production market,” Financial Express, 30 January 2014, via Factiva. 11. Pradip R Sagar, “Amid blacklisting process, Agusta firm gets torpedo deal,” DNA - Daily News & Analysis, 17 January 2014, via Factiva, © Diligent Media Corporation Ltd. 12. “ISRO infrastructure to get a big boost,” Deccan Herald, 6 January 2014, via Factiva, © The Printers (Mysore) Private Ltd. 13. Ajai Shukla, “BAE Systems offers to modernise ordnance factories,” Business Standard, 10 February 2014, via Factiva.
  • 21. 21Eye on Defence | Joint ventures and alliances Name of the entities Nature of transaction Value* Ramco and Turbomeca ► • ►Ramco Systems signed a memorandum of understanding (MoU) with Turbomeca to develop compatibility solutions between Turbomeca’s BOOST and Ramco’s M&E/MRO solution. • The partnership plans to develop an interface to integrate both solutions to help aerospace customers, engine services centers and heli-operators benefit from seamless data transfer. The web-based application will help customers to electronically share data for operations and airworthiness tasks and limit human factors through its specific online features. NA SAAB and Kalyani ► • ►Kalyani Group has tied up with Sweden-based defense and security company SAAB to boost indigenization. • The strategic alliance will address key Indian air defense projects, including the Very Short Range Air Defense (VSHORAD) and the Short Range Surface to Air Missile (SRSAM) requirements. NA SAAB and Ashok Leyland ► ► • ►Swedish defense company, SAAB, tied up with Ashok Leyland for the Indian Army’s requirement for short-range surface-to-air-missile system tender (SRSAM). • Ashok Leyland will deliver high-mobility vehicles to transport the SRSAM solution. • All sub-units within the weapon system are being integrated with the Ashok Leyland Super Stallion 8x8, a high-mobility vehicle capable of operating in all types of terrain under all- weather conditions. NA BEL and Sagem ► • ►BEL signed an MoU with France-based Sagem Defense Securite for co-operation in the production and supply of navigational sensors such as periscope, Inertial Navigational System and optronic mast to the Indian Navy. • The MoU will help in understanding and absorbing the critical technology adopted in these sensors for use in future induction platforms of the Navy. It will facilitate BEL and Sagem to work together for two years and if considered necessary, the same can be extended to a further period agreeable to both the companies. NA BEL and Textron ► • ►BEL has signed an MoU with Textron Systems to develop an unattended ground sensor (UGS) system for Indian security agencies. • The UGS system will provide actionable intelligence by displaying the position, direction and speed of personnel and vehicle threats, making it easy for border management agencies to locate, identify and intercept them. NA OIS-AT and BCB International ► • ►OIS-AT will form strategic relationship with UK-based BCB International. Under this agreement OIS-AT will work as an OEM of the BCB’s Ultralight Micro Vertical Take Off and Landing (UMVTOL) Unmanned Aerial Vehicles (UAVs) in a hand-held form factor. • OIS-AT will also be the Indian OEM for their kinetic systems, including wall-breaching system and a water interceptor for low-intensity conflicts (LIC). NA OIS-AT and Aerosentinel • ►OIS-AT plans to enter a strategic relationship with Israel’s AeroSentinel. Under this agreement, OIS-AT will work in all functions as an OEM of AeroSenitel’s Quad Copter Unmanned Aerial Vehicles (UAVs). NA
  • 22. 22 | Eye on Defence Name of the entities Nature of transaction Value* OIS-AT and Applied Research Associates (ARA) • ►OIS-AT will form strategic relationships with US-based ARA. Under this agreement, OIS-AT will work in all functions as an OEM of the ARA’s Micro Unmanned Aerial Vehicles (UAVs) and advance this product in India. NA Mahindra & Mahindra and Telephonics Corporation ► • ►Mahindra & Mahindra and Telephonics Corporation’s JV opened the first private sector aerospace and electronics joint manufacturing facility in India. • The facility, located in the city of Prithla near Delhi, will focus on the development and manufacturing of leading-edge radar technology. Initial production of the first proprietary products commenced at the facility in December 2013. NA General Dynamics and Samtel • ►General Dynamics signed a cooperation agreement with Samtel Avionics Ltd., to co- produce digital displays in India for a range of military and non-military vehicles worldwide. • The partnership will produce multi-function displays (MFDs) for armored and reconnaissance vehicles, and for civilian use in utility vehicles such as those used for garbage collection. • At least INR5 billion worth orders are estimated for the JV while Samtel Avionics hopes to build INR1 billion worth of displays each year for General Dynamics’ domestic and international markets by 2015–16. • For General Dynamics, manufacturing in India will reduce manufacturing costs while for Samtel Avionic a strong international player such as General Dynamics will provide opportunity to increase its sales. NA Sources: 1. Ajai Shukla , “Samtel, General Dynamics sign Rs 500-cr agreement,” Business Standard, 3 February 2014, via Factiva. 2. “Mahindra Telephonics Integrated Systems Opens First Private Joint Venture Aerospace & Electronics Manufacturing Facility in India,” Dow Jones Institutional News, 6 February 2014, via Factiva. 3. “OIS-AT enters into strategic partnership with ARA, USA as OEM of hand launched Micro UAVs in India,” PR Newswire (US), 6 February 2014, via Factiva. 4. “OIS-AT Enters Into Strategic Partnership With AeroSentinel of Israel as OEM of Quad Copter UAVS in India,” PR Newswire (US), 5 February 2014, via Factiva. 5. “OIS-AT Enters Into Strategic Partnership with BCB of the UK as OEM of Handheld UAVs in India,” India Investment News, 6 February 2014, via Factiva, ©Contify. 6. “Saab, Ashok Leyland tie-up for Army's SR-SAM tender,” Press Trust of India, 5 February 2014, via Factiva. 7. Jay Menon, “India’s BEL, Textron Systems Team Up On Ground Sensor System,” Aerospace Daily & Defense Report, 7 February 2014, © McGraw-Hill. 8. “BEL inks MoU with Sagem” Mena Report, 8 February 2014, via Factiva, © AlBawa 9. “Kalyani Group inks alliance with SAAB for defence projects,” Indian Business Insight, 14 February 2014, via Factiva, © Informatics (India). 10. “Ramco Systems signs MoU with Turbomeca for developing compatibility solutions,” Mena Report, 27 February 2014, © AlBawa.
  • 23. 23Eye on Defence | Country-level deals and initiatives Country Nature of transaction Additional details China • The 6th Annual Defence and Security Dialogue between India and China was held in New Delhi and co-chaired by India’s Defense Secretary, Shri RK Mathur and China’s Deputy Chief of General Staff, Lt Gen Wang Guanzhong. • Both sides exchanged views on regional and global security issues including the security situation in South Asia, the Asia-Pacific region and the Indian Ocean region. • The countries decided on measures for exchanges and interactions between the Armed Forces in 2014 including a joint Army exercise in India in 2014. • Other agreed measures included the strengthening of maritime security cooperation between Navies, officer exchanges and professional interactions at various levels of all services and exchanges in the areas of peacekeeping, counter terrorism and humanitarian assistance and disaster relief. Israel • India and Israel are close to completing a deal to build an antimissile system as protection from possible nuclear or conventional attacks. • The final deal is anticipated to be inked within six months. • The envisioned antimissile system would incorporate India’s indigenous Prithvi air defense technology and the land-transportable radar under development by Israel Aircraft Industries. • Israeli defense company, Rafael, is also in line to participate in the program. Japan • India is set to become the first country to buy a military aircraft from Japan since World War II. This will help Japan to end a ban on weapons exports that has kept its defense contractors out of foreign markets. • The two countries are in broad agreement on a deal for the Japan-based ShinMaywa Industries’ amphibious aircraft, estimated to cost around US$1.65 billion. • Currently, Japan offered a stripped-down civilian version of the US-2i search and rescue plane to India. The two countries are also discussing about assembling the aircraft in India, which can give India access to Japanese military technology. ►Russia • India signed MoUs with Russia for Combat Management Systems and radars for the Indian Navy. • The MoUs include an agreement between Indian company Pipavav defense and Offshore Technologies Ltd. and Russian state-run defense company Concern- Morinformsystem-Agat. • India and Russia are looking forward to launching a mutually beneficial cooperation pattern in producing for the Indian market as well as for export. A working group is likely to be established as soon as all the formalities are settled within a month of signing the MoUs. • The Russian defense company is also in talks with Hindustan Shipyard, Goa Shipyard and BEL to jointly develop products for the Indian Navy. ►South Korea • South Korea and India held their first strategic dialog to discuss ways to boost military ties and cooperation in the defense industry. • South Korean Deputy Defense Minister met with his Indian counterpart to share opinions on regional security issues and to explore ways to expand defense cooperation. The two countries agreed to regularly hold high-level security consultations. • Military officials and businessmen held meetings to explore ways to conduct joint R&D and production opportunities.
  • 24. 24 | Eye on Defence Sources: 1. “6th India-China Defence and Security Dialogue held,” PIB-GoI website, http://pib.nic.in/newsite/AdvSearch.aspx, accessed 7 March 2014 2. “Indian Navy signs MoUs with Russia on new Combat Management Systems and radars,” The Economic Times, 20 February 2014, via Factiva, ©The Times of India Group 3. “Israel, India said close to sealing Antimissile Cooperation Deal,” National Journal Online, 6 February 2014, via Factiva 4. Sanjeev Miglani, “India close to buying Japan-made military aircraft in $1.65 bln deal,” Reuters News, 28 January 2014, via Factiva 5. “South Korea, India hold first strategic military talks,” BBC Monitoring Asia Pacific, 23 December 2013, via Factiva
  • 25. 25Eye on Defence | Industry buzz IAF will soon get India’s indigenous LCA India’s indigenous Light Combat Aircraft (LCA), Tejas, received operation clearance in December 2013 and is just a step away from being inducted into the Indian Air Force (IAF). It also signals the country’s capability to develop a major air-based weapon platform indigenously. Moreover, it signifies a step toward achieving self-reliance in aircraft design, fabrication and manufacture. The LCA will replace the ageing MiG-21 aircraft and boost the country’s air defense preparedness. The immediate plan is to induct six squadrons of the IAF with the Tejas, which means induction of around 120 aircraft. The first squadron will be inducted by 2015 and the second by 2017. In addition, the Indian Navy will have at least 40 units of the naval version of Tejas fighter. In the next 10 years, at least 200 LCA numbers are expected to bolster the country’s air strike power. (Source: M. Somasekhar, “Tejas: a game changer for Indian Air Force,” Business Line (The Hindu), 28 December 2013, via Factiva) IAF plans to test BrahMos missile from Sukhoi fighters India will begin testing its 290-km supersonic BrahMos cruise missile, from the heavy-duty Sukhoi-30MKI fighter, by the end of 2014. BrahMos is fast becoming the missile of choice for the armed forces due to its precision-strike capabilities. The Indian Army has already inducted three BrahMos regiments while the Navy has installed the missiles on six warships. The missile has been cleared for flight after simulation tests and Hindustan Aeronautics Limited (HAL) is currently working at its Nasik facility to strengthen the Sukhoi fuselage to ensure the fighter can carry the heavy missile. (Source: Rajat Pandit, “After Army and Navy, IAF gears up for supersonic BrahMos missile punch on Sukhois,” The Economic Times, 11 February 2014, via Factiva, © The Times of India Group) IAF expected to get AWACS from DRDO The Defence Research and Development Organization (DRDO) is creating AWACS (Airborne Warning and Control System) for the IAF to enable it to look up to 400 km into Pakistan and China while remaining in the safety of its own airspace. The AWACS should be available by 2020. Currently, the DRDO is able to progress in the AWACS project after achieving some initial capabilities. IAF currently has three AWACS and has projected a requirement of 10 units in the next decade. The current AWACS comprises the Israeli Phalcon radar mounted aboard a Russian IL-76 aircraft. (Source: “India's DRDO creates AWACS for the Indian Air Force,” Mena Report, 22 January 2014, via Factiva, © Al Bawaba) Indian armed forces to get indigenous UCAV, Rustom-2 The DRDO is developing Rustom-2, a medium–altitude, long–endurance, unmanned combat air vehicle (UCAV) for the Indian Armed Forces. Expected to be inducted into the forces by 2017, Rustom-2 will have the capabilities to perform various roles such as intelligence gathering, border surveillance, target information and communication. With enhanced aerodynamic configuration, digital flight control and navigation system, and automatic takeoff and landing capabilities, the Rustom2 can replace Israeli-manufactured “Heron” and “Searcher” vehicles. The first flight is scheduled in the third quarter of 2014. (Source: Chethan Kumar, “Rustom-2 unmanned combat vehicle taxiing by month-end,” The Times of India, 13 January 2014, via Factiva, © Bennett, Coleman & Co., Ltd.) Indian Army successfully tests Akash The Indian Army successfully flight-tested Akash, a surface- to-air missile developed by the DRDO, from the Integrated Test Range at Chandipur, Odisha. The Akash weapon system is an all-weather, air defense system for defending valuable assets from aerial attacks. It can target fighter-aircraft, helicopters and cruise missiles flying at a distance of 25 km. The advantages of Akash are: • It thrusts all the way to intercept the enemy aircraft • It can engage multiple targets • It can be transported by rail, road and air • It boasts of command, control, communication and computers, and intelligence (C4I) (Source: T.S. Subramaniam, “Akash bang on target in flight test,” The Hindu, 22 February 2014, via Factiva, © Kasturi & Sons Ltd.) Night trial of Agni fails India once again failed in the night trial of 700-plus km range Agni-I missile due to technical glitches. Strategic Forces Command (SFC) of the Indian Army was to test fire the missile. The countdown was stopped at 18 seconds as the missile system encountered severe technical problems. The failure was attributed to snags in the inertial navigation system (INS). This was the first time the missile was being tested at night. The proposed night trial has now been
  • 26. 26 | Eye on Defence postponed indefinitely. Earlier, in 2009, an attempt to fire a 2,000-km range Agni- II had ended in a failure. (Source: “Night trial of Agni fails once again,” New Indian Express, 20 February 2014, via Factiva) India plans to manufacture indigenous submarines soon India is preparing to launch an indigenous submarine design and development plan with its underwater arm severely depleted due to recent submarine accidents. As the first step, the DRDO will set up an agency in Hyderabad to test and certify the steel that will be used in making the indigenous submarine. The underwater vessel will then be made using the same DMR-249A and 249B steel that was used to make aircraft carrier Vikrant and P-28 missile corvettes. A parallel effort is on to develop suitable welding technologies and consumables for submarines at the Naval Material Research Laboratory, Ambernath. (Source: “India to manufacture indigenous submarines soon,” Deccan Herald, 10 February 2014, via Factiva, © The Printers (Mysore) Private Ltd.) Fully armed Arihant plans to hit the sea in a month India's nuclear-powered submarine, Arihant, will be out at sea within a month to complete its sea trials. The harbor trials for the submarine are almost complete. Arihant has the capability to include ballistic missile on-board, which will be fired during the trials. The Navy hopes to induct the Arihant by the end of 2014, if the trial is successful. When inducted, it will complete India's nuclear triad giving the country strike capability from land, air and sea in case of a nuclear attack. Source: (“Fully armed Arihant to hit the sea in a month,” Deccan Herald, 22 January 2014, via Factiva, © The Printers (Mysore) Private Ltd.) Liberal face of DPP lures slew of Indian companies Defence procurement procedure (DPP) 2013, which stresses on “Buy” (Indian) and “Buy and Make” (Indian) categories of acquisition, has encouraged a slew of Indian companies from various backgrounds to enter defense production. The Government of India (GoI) is committed to opening up the defense sector to private sector participation. Opening up of the defense sector, together with defense offsets, offers a significant opportunity to companies with strong R&D and industrial manufacturing excellence. The favorable policy encouraged a number of Indian companies such as JK Group, Kalyani Group, L&T and Tata Group. These companies have lined up their business strategies around areas of defense production, including design and development. (Source: “Liberal face of defence procurement policy lures slew of Indian companies,” Financial Express, 7 February 2014, via Factiva, © Indian Express Online Media Pvt. Ltd.) GoI set to tap FIIs for more foreign investment in defense The GoI plans to increase foreign direct investment (FDI) limit in the defense sector to 49%. However, there will be a provision that this would include an internal cap of 23% for foreign institutional investors (FIIs). Current regulations is conservative on foreign investment in the defense sector due to concerns flagged by the defense ministry over its strategic importance and need to promote indigenous manufacturers. Under the current regulations, up to 26% FDI is permitted in the sector after approval from the Foreign Investment Promotion Board (FIPB). The sectoral cap will increase to 49%, after a 23% cap on FIIs is allowed above the current cap of 26% FDI. Increased FDI in the defense sector is likely to improve domestic production of defense equipment, in turn curbing imports and reining in India’s current account deficit. (Source: “GoI set to tap FIIs for more foreign investment in defence,” Indian Express, 6 February 2014, via Factiva) India joins elite club with heli-borne geo- survey capability India became the seventh country to own a heli-borne geophysical survey system (HGSS), which has been integrated on Garuda Vasudha, the advanced light helicopter’s (ALH) latest version. The ALH has been integrated with HGSS procured from Pico Envirotec Inc, Canada. The chopper, costing around INR730 million, was officially handed over to the Geological Survey of India (GSI), a body responsible for conducting geophysical survey under the ministry of mines. (Source: Chethan Kumar, “India joins elite club with helicopter-borne geo-survey capability,” The Times of India, 24 January 2014, via Factiva)
  • 27. 27Eye on Defence | Defense ministry sets up panel to boost aircraft sector The Ministry of Defence (MoD) formed an inter-ministerial National Aeronautics Coordination Group (NACG) to centrally coordinate the building of India’s capability to design and manufacture civil and military aircraft. The Secretary (defense production) will chair the NACG. The NACG will bring together the capabilities of Indian entities with aerospace expertise, including the DRDO, public sector companies such as HAL, private sector companies, non-MoD establishments such as the National Aerospace Laboratory (NAL), which falls under the Council of Scientific and Industrial Research (CSIR) and academic institutions such as Indian Institutes of Technology (IITs) to create the eco- system essential for the growth of the aerospace industry. (Source: Ajai Shukla, “Defence min sets up panel to boost aircraft sector,” Business Standard, 18 January 2014, via Factiva) India comes a step closer to manned space flight India unveiled an indigenously manufactured astronaut capsule with a hope to become the fourth country to send humans into space. Currently only the US, Russia and China have accomplished the feat of putting humans into earth orbit. The Indian Space Research Organization (ISRO) has displayed a prototype of its first crew capsule module designed to carry two people into low earth orbit. It plans to send the test prototype into orbit with the first experimental flight of the country's latest rocket, the Geosynchronous Satellite Launch Vehicle (GSLV) Mark III. The test is expected to launch by June 2014. (Source: “India unveils its own astronaut crew capsule, plans test launch,” Global Data Point, 27 February 2014, via Factiva) India becomes sixth country to develop cryogenic engine ISRO successfully launched its geosynchronous satellite, GSAT-14, with indigenous cryogenic engine, Geosynchronous Satellite Launch Vehicle-Development 5 (GSLV D5). The 49.13-metre-tall rocket, carrying a communication satellite, took off from the second launch pad at the Satish Dhawan Space Centre (SDSC), about 90 km north of Chennai. The launch has put India in a club of select countries with the technology to put heavy satellites into orbit. Only five other countries have cryogenic technology — the US, Russia, Europe, China, and Japan. It also paves the way for sizeable savings for the country in launch costs. India paid around INR5 billion as launch fee for sending a 3.5-tonne communication satellite whereas the GSLV rocket costs only around INR2.2 billion. In addition, it opens up a window to earn foreign exchange from launching heavier foreign satellites. (Source: “GSLV D5 with indigenous cryogenic tech launched,” Deccan Herald, 6 January 2014, via Factiva, ©The Printers (Mysore) Private Ltd.) Successful Mars mission helps ISRO end 2013 on high note With ISRO’s inter-planetary Mars Orbiter Mission (MOM), India became the first Asian country and the fourth country in the world to moved into the inter-planetary space. The scientific mission will explore the Mars surface features, morphology, mineralogy and Martian atmosphere by indigenous scientific instruments. The successful launch of MOM, along with the sending up of India's first navigation satellite midnight and the launch of the Indo-French satellite SARAL, has put India among the select group of space- faring nations in 2013. (Source: “Successful Mars mission helps ISRO end year on high note (2013 in Retrospect),” Indo-Asian News Service, 24 December 2013, via Factiva) India plans a 10% stake sale in state-run HAL The GoI plans to sell a 10% stake in state-run aircraft maker HAL through a maiden share sale in the current financial year. The share sale in HAL will be the last in a series of state-run companies, planned for this financial year in an effort to keep the country’s fiscal deficit in check. (Source: Saurabh Chaturvedi, “India plans 10% stake sale in state-run HAL,” Dow Jones Institutional News, 6 February 2014, via Factiva)
  • 28. 28 | Eye on Defence For more information, visit www.ey.com/in Connect with us Assurance, Tax, Transactions, Advisory A comprehensive range of high-quality services to help you navigate your next phase of growth Read more on ey.com/IN/en/Services Our services Centers of excellence for key sectors Our sector practices ensure our work with you is tuned in to the realities of your industry Read about our sector knowledge at ey.com/IN/en/Industries Sector focus Easy access to our knowledge publications. Any time. http://webcast.ey.com/thoughtcenter/ Webcasts and podcasts www.ey.com/subscription-form Follow us @EY_India Join the business network from EY Stay connected
  • 29. 29Eye on Defence | Why choose Team EY? Unique Team Experience Offset Structuring Industrial Connects End to End Solutions • Team member was a part of the team that wrote the Indian Defense Offset policy in 2006. • Team member founded the DOFA. • Team member has written a complete book on Offsets with the CII. • Offset Structuring worth US$ 3.7 Bn executed successfully. • Total experience of 66 man years in the Armed Forces. • MoD experience of 14 man years. • Team has members from the Auto practice-India’s only proven manufacturing competence • in Bangalore; Pune Hyderabad & Chennai where these manufacturing and IT capabilities reside • Industrial License Application • FIPB approval • Due-diligence services • Transaction Advisory for M&A • Tax Mitigation in offset contracts • Creation of a compliant Offset Schedule • Quarterly Offset progress report Unparalleled Support & Advantage for OEM’s & Indian Companies
  • 30. 30 | Eye on Defence Services offering – Tax & Regulatory Contract negotiation stage Post contract signing support Other Compliance and Advisory Pre bid stage1 2 3 4 ► Review the clauses of RFP in order to highlight the clauses/terms from a tax & regulatory perspective. ► Suggest alternative approaches where necessary ► Advising on tax issues Association of Persons ('AOP') exposure under the consortium model and suggesting adequate safeguards. ► Identification of a suitable business model. ► Formulate appropriate tax positions ► Back End advise on tax and regulatory clauses in the bid negotiation with the objective of optimizing the tax & regulatory implications. ► Responding to queries pertaining to any tax or regulatory issues which may arise during the discussion stage ► Assistance in set up of the agreed upon business model. ► Advise on subcontracting/ local purchase arrangements from tax and commercial perspective ► Formulate appropriate tax positions ► Plan for advance ruling for upfront certainty/ clarity ServicesOffering Support atevery stage Contracting Process ► Corporate tax and indirect tax compliance ► Accounting services ► Background check (Fraud investigation) on viability of the chosen Indian Offset Partners (IOP’s) ► Foreign Investment Promotion Board (FIPB) & Industrial License (IL) application and clarifications for IOPs Importance ► Develop certainty with respect to impact and incidence of direct and indirect taxes in India ► Establishment of a tax efficient and regulatory compliant structure in India ► Compliance with ever evolving tax and regulatory regime in India ► Upfront identification of tax and regulatory implications under the RFP Services offering - Defence Offset Bid Stage Contract negotiation stage Post contract signing support Pre bid stage 1 2 3 4 Offset process ► Help evolve an understanding of the offset process and stakeholders Indian offset partners(IOPs) ► Identification of IOPs (M&A / JV / Licensed Manufacture / Sourcing) ► Clarification from DIPP/FIPB/MoD regarding their regulatory status Support services ► Industrial Licensing for IOPs ► IOPs financing ► Joint venture structuring Offset Proposal ► Identification of methods of offset discharge ► Structuring/vetting of Technical and commercial offset proposals ► Support in answering the queries of the MoD Indian offset partners(IOPs) ► Structuring contractual arrangements with IOPs ► Valuation of offset attributable ► Financial & Background due diligence of IOPs ► Continuous support through on call advisory ► Support in preparation of appropriate responses to MoD queries ► Identification of stand by IOPs in case of removal of existing ones ► Any other support as maybe required. Servicesoffering Supportatevery stage Contracting process ► Support in compiling documentation required for offset discharge ► Support in preparation of quarterly / half yearly reports on fulfillment of offset obligations. Importance ► To ensure a suitable Technical and commercial offset plan that should find favour with the TOEC and the CNC. ► Support in getting the technical offset proposal approved in time so that it does not obstruct main contract signing ► Continued support for offset execution to avoid penalties and loss of faith with the MoD ► Evolve understanding of offset process amongst the core team for optimal planning ► Identification of eligible and viable IOPs who can sustain through the duration of the offset program ► Planning for submission ► Identifying the right partners and methodologies ► Getting the documents right for submission ► Building the right offset program ► Getting the optimum economic value for offsets ► Documentation of offset execution
  • 31. For more information , please contact: K. Ganesh Raj Partner and Leader Aerospace and Defence Practice Ernst & Young Pvt. Ltd. Tel: + 91 120 671 7110 Email: ganesh.raj@in.ey.com Udit Narula Senior Consultant Aerospace & Defence, IIC Ernst & Young Pvt. Ltd. Mob: + 91 9654452626 Email: udit.narula@in.ey.com Our offices in India Kolkata 22 Camac Street 3rd floor, Block ‘C’ Kolkata - 700 016 Tel: + 91 33 6615 3400 Fax: + 91 33 2281 7750 Mumbai 14th Floor, The Ruby 29 Senapati Bapat Marg Dadar (W), Mumbai - 400028 Tel: + 91 022 6192 0000 Fax: + 91 022 6192 1000 5th Floor, Block B-2 Nirlon Knowledge Park Off. Western Express Highway Goregaon (E) Mumbai - 400 063 Tel: + 91 22 6192 0000 Fax: + 91 22 6192 3000 NCR Golf View Corporate Tower B Near DLF Golf Course Sector 42 Gurgaon - 122002 Tel: + 91 124 464 4000 Fax: + 91 124 464 4050 6th floor, HT House 18-20 Kasturba Gandhi Marg New Delhi - 110 001 Tel: + 91 11 4363 3000  Fax: + 91 11 4363 3200 4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. India Tel: + 91 120 671 7000 Fax: + 91 120 671 7171 Pune C-401, 4th floor Panchshil Tech Park Yerwada (Near Don Bosco School) Pune - 411 006 Tel: + 91 20 6603 6000 Fax: + 91 20 6601 5900 Ahmedabad 2nd floor, Shivalik Ishaan Near C.N. Vidhyalaya Ambawadi Ahmedabad - 380 015 Tel: + 91 79 6608 3800 Fax: + 91 79 6608 3900 Bengaluru 12th & 13th floor “UB City”, Canberra Block No.24 Vittal Mallya Road Bengaluru - 560 001 Tel: + 91 80 4027 5000 + 91 80 6727 5000 Fax: + 91 80 2210 6000 (12th floor) Fax: + 91 80 2224 0695 (13th floor) 1st Floor, Prestige Emerald No. 4, Madras Bank Road Lavelle Road Junction Bengaluru - 560 001 Tel: + 91 80 6727 5000 Fax: + 91 80 2222 4112 Chandigarh 1st Floor, SCO: 166-167 Sector 9-C, Madhya Marg Chandigarh - 160 009 Tel: + 91 172 671 7800 Fax: + 91 172 671 7888 Chennai Tidel Park, 6th & 7th Floor A Block (Module 601,701-702) No.4, Rajiv Gandhi Salai, Taramani Chennai - 600113 Tel: + 91 44 6654 8100 Fax: + 91 44 2254 0120 Hyderabad Oval Office, 18, iLabs Centre Hitech City, Madhapur Hyderabad - 500081 Tel: + 91 40 6736 2000 Fax: + 91 40 6736 2200 Kochi 9th Floor, ABAD Nucleus NH-49, Maradu PO Kochi - 682304 Tel: + 91 484 304 4000 Fax: + 91 484 270 5393 Ernst & Young LLP EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in. Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata - 700016 © 2014 Ernst & Young LLP. Published in India. All Rights Reserved. EYIN1403-032 ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. MS EY refers to the global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited EY refers to the global organization, and/or one or more of the independent member firms of Ernst & Young Global Limited

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