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Eye on Defence July 2013
1. Contents title
Contents subjects
July 2013
Eye on Defence
The Indian Government has endeavored to reverse the trend of importing 70% of
its defense equipment needs from foreign companies and achieve its objectives
of self-reliance in defense production. The much-awaited DPP 2013, released
on 1 June 2013, is a case in point. The government has brought back the focus
on indigenization and, through policy actions, intends to utilize DPP as a tool
to enhance the Indian industry’s participation in defense manufacturing and
services. Although programs announced under the current DPP will start getting
executed only by 2016–17, the policy statement does signal the MoD’s outlook
on reversing import trends.
The basic tenets on which DPP 2013 is based are speed of execution, transparency, efficiency and
indigenization. Significantly, it has introduced an order of preference for the categorization of defense
procurement projects, with indigenous design, development and manufacturing getting priority.
To back its intent with action, the MoD has also simplified and clarified procedures for “Make” and
“Buy and Make (Indian)”, signalling enhanced activity through these methods of capital equipment
procurement. Furthermore, to resolve the issue of determining indigenous content in defense
equipment, DPP 2013 clarified the line items used for calculation. It has also prescribed checks and
balances such as certifications and audit under the guidance of the MoD to calculate indigenous
content. To expedite procurement, DPP 2013 has initiated some measures including higher financial
powers of various agencies under the MoD and early release of RFP. These and other significant
changes have been analyzed and discussed in this issue of Eye on Defense.
India, with a vast coastal border of 7,516 kms and covering 9 coastal states and 4 Union Territories,
poses a variety of serious security issues/concerns and challenges. The 26/11 Mumbai terrorist attacks
brought to fore the vulnerability of India’s coasts and the urgent need for ensuring coastal security.
Since then, the government has taken several initiatives to strengthen the security of coastal areas. A
summary of such measures and other planned ones has been included in this issue.
This issue covers a commentary on the latest changes in the regulatory framework for the aerospace
and defense industry, including the introduction of a list of “defense” products for compulsory IL and a
notification for putting on hold offset discharge through “services”.
The regular sections cover industrial license applicants, new projects and investments, joint ventures
(JVs) 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. We would really appreciate your comments and suggestions in this regard.
K. Ganesh Raj
Partner and Leader
Aerospace and Defence practice
Contents
Indian defense
regulatory update 2
DPP 2013: a game
changer 4
India’s coastal security 7
Request for Information
(RFIs) (March 2013—
June 2013) 12
Request for Proposals
(RFP) (March 2013—
June 2013) 13
List of Industrial
Licenses (ILs) filed for
March 2013—April 2013 15
New projects/investments/
contracts 16
JVs and alliances 19
Country-level deals and
initiatives 20
Industry buzz 21
Sources 25
2. 2 | Eye on Defence
The sector has witnessed two significant developments
in the recent past. The question of what products require
an Industrial License (IL) before their manufacturing can
be undertaken has always been marked with ambiguity.
To provide the much-needed clarity, The Industrial
Development and Regulation Act (1951) and subsequent
press notes provided a very broad-based explanation.
However, the necessary details were found lacking in
the ensuing press notes. To add to this confusion, the
Defence Procurement Procedures (DPP) 2006 explanation
clearly stated that only companies with a valid IL would be
considered as IOPs. Although the mandatory requirement
on an IL was removed from DPP 2008 onward, the
ambiguity continued. As a result, the Department of
Industrial Policy and Promotion (DIPP) and, consequentially,
the Department of Defence Production (DDP) were flooded
with IL applications and processing time scaled a peak of up
to two years. As a result, all of the stakeholders, the MoD,
services and the Indian industry, were embroiled in the
confusion. Furthermore, DPP 2011, which was released in
Indian defense
regulatory update
January 2011 brought into the offset fold the synergistic
sectors of civil aerospace and internal security. Both these
sectors did not require an IL, but IOPs continued to file
applications for ILs. This is because OEMs were not clear
about the exact meaning of defense products.
The answer came in the form of a list of “Defense
Products” on the DIPP’s website (http://dipp.nic.in/
English/Investor/Investers_Gudlines/defenceProducts_
LicencingRequired_26April2013.pdf). This is a replica
of the Munitions List, as is prescribed in the Wassenaar
Arrangement. Minor modifications to this list, ML21
(software) & ML22 (technology), have been excluded. India
is not a signatory to the Wassenaar Arrangement but has
now decided to adopt this list.
Ernst & Young had, in its December 2012 issue of the Eye
on Defense, suggested a similar solution. In our limited
understanding, this is a list of items that require an IL. As a
corollary , we assume that any item that is not included in
the list should not require an IL. We hope that this list will
greatly reduce the number of IL applications and the period
3. 3Eye on Defence |
between application and receipt of the IL. It would aid OEMs
in using their fair direction while deciding which IOPs should
apply for an IL.
On the flip side, the Augusta Westland bribery case
continues to make controversy. The matter is still in Italian
courts and under investigation by the Central Bureau of
Investigation in India. The modus operandi used by the
accused was that of “Services” export for discharging
offsets. Reportedly, a North India-based firm was exporting
non-eligible service in the form of software, etc., and in
return was receiving large payments that Augusta was then
using to claim offset credits. Since there was no mechanism
in place to verify the genuineness of the export, the entire
transaction would have gone unnoticed had it not been for
the bribery case. The Defense Offset Management Wing
(DOMW) has taken cognizance of this case and, on 23 May
2013, released an Office Memorandum (OM) stating that
“all services” eligible for offset credits stand in abeyance
with immediate effect. This OM is applicable for all RFPs
released on and after this date (23rd May) and for RFPs
whose technical and commercial proposals are yet to
be submitted.
This OM has effectively put an end to the use of “services”
as an offset eligible item. Several Indian companies that
are very active in this space are in for a difficult time.
Furthermore, “services”, India’s biggest export, will no
longer get a leg up through offsets. We sincerely hope
that this OM gets reviewed soon and that the MoD takes a
measured step in the right direction. There is one query that
still remains. DPP 2013 was released on 01 June 2013.
Para 77 of the new DPP clearly states that all cases where
the RFP is issued after 01 June 2013 will be processed
under DPP 2013. A brief analysis of the new DPP revealed
that “services” are a part of the offset eligible item list,
as well as the multipliers for MSMEs. This creates a doubt
whether the OM has been superseded by DPP 2013. If at all
it has superseded, we would need to question the need for
an OM that was valid for fewer than 10 days and clearly look
into what RFPs (if any)have been affected by this OM.
4. 4 | Eye on Defence
DPP 2013:
a game changer
After undergoing five iterations since its introduction in
2002, the DPP has renewed its focus on indigenisation
through DPP 2013 to achieve its objective of reversing
the trend in imports, from the now 70% to the projected
30%. This, in fact, is quite an ambitious target and was first
stated by our former President, Bharat Ratna Dr Abdul
Kalam, when he was the Scientific Advisor to the Prime
Minister. The MoD, in consultation with various other
ministries, industry bodies, OEMs and other stakeholders,
has been actively trying to formulate a policy that promotes
indigenization. The success of the policy would only
become evident in time and is proportionate to efforts
made in implementation.
The evolution of the DPP from 2002 has indicated the intent
of the MoD to adapt to the requirements of stakeholders
by retaining the DPP as an evolving process, in continuum.
The process was initiated with one category of “buy” and
has now been evolved to include another four: “Buy Indian”,
“Buy and Make Indian” and “make”, in addition to “Buy and
Make Global” and “Buy Global”. As stated, the emphasis is
on giving a fillip to the Indian defense industry, both in the
public and private sector.
The highest priority has been laid on “Buy Indian“ and the
lowest on “Buy Global“, with Buy Indian, Buy and Make
Indian, Make, Buy and Make Global being listed in the order
mentioned in the DPP 2013. The MoD has gone a step
further to include a clause seeking detailed explanation
for recommending categorization, as well as reasons why
each of the higher preferred categorizations have not been
considered suitable.
It is indeed interesting that the MoD did not stop at merely
according a priority and has traversed an extra mile by
simplifying the procedure for the “Buy and Make Indian”
category. Lack of clarity on the “Buy and Make Indian”
category, as was the case in the previous versions of
the DPP, did harm to the cause of indigenization. As a
direct consequence, only one project had been booked
under this category since its introduction in the DPP. The
question arises whether the amendment would translate
into a substantial increase in the number of cases that are
projected for seeking Acceptance of Necessity (AoN) under
this category. The armed forces are upbeat about this and
are likely to increasingly sponsor cases under the “Buy and
Make Indian” category than the usual route of “Buy and
Make Global”. In the case of the “Buy and Make Global”,
a common practice has been to nominate Defence Public
Sector undertakings (DPSUs) as Production Agencies (PA) to
undertake the “Make” portion of the program. Nomination
of the private industry for absorption of technology and its
subsequent licensed production was never contemplated in
the background of uncertainty around capacity, capability
and experience and the lack of a formal process/method by
which a PA could be selected. This issue has been corrected
to a very large extent in the “Buy and make Indian”
category, which provides for a level-playing field and, thus,
attracts public and private Indian companies alike. The
move is expected to increase transparency in the transfer of
technology, as the recipient is now held responsible for the
cost of technology, as well as delivery (initially responsible
only for delivery, as cost was borne by the MoD). This may
have a ripple effect of reducing the cost of technology,
since the recipient would be more diligent in identifying
incremental technologies that add value to the indigenous
defense technology base. Demand for technology, therefore,
will be based on need and not want. The MoD has also taken
steps to further simplify the “Make” and the “Fast Track”
procedures, indicating the onset of a new paradigm of
categorizations with emphasis on enabling the participation
of the domestic industry.
The recently amended Defence Offset Guidelines of 2012
have been incorporated with minimal cosmetic additions.
The concept of “facilitation” has been done away with in
respect of offsets discharge. Although, one of the tasks
for Defence Offsets Management Wing (DOMW) is to assist
OEMs during interface with the Indian industry.
The DPP 2013 has also sought to increase accountability
within various departments/agencies involved in the
acquisition process by reducing the validity of AON once
accorded to just one year from two. The implications are
quite significant: defence services have to make sure
that they are ready in all respects for the said acquisition
even before the AON is accorded, so that they are able to
comply with the challenging timelines. In addition, the DPP
stipulates that the Services Qualitative Requirements (SQRs)
should be frozen before the accord of AON. Therefore,
AON has become significant in its approval; it is now an
all-encompassing approval with limited scope available for
changes after finalization. In this case as well, the focus
on facilitating indigenization is prominent, since the above
provisions are not applicable to the “Buy and Make Indian”
cases. “Buy and Make” Indian cases can get an approval
based on a preliminary SQR with a validity of AON for two
years, enabling “services” to freeze SQRs after a detailed
interaction with the industry even post AON. This is
indeed very encouraging both for the services and
domestic industries.
5. 5Eye on Defence |
Synergy at various levels has been an underlying theme
of DPP 2013. While the thrust has been rightly placed on
indigenous acquisitions, the definition of indigenous content
has been stipulated, without allowing it to be a subject of
interpretation. The basic cost of equipment, spares and test
equipment has been specifically included in the calculation
of indigenous content as early as the Field evaluation stage.
While “Buy Indian” demands a uniform 30%, the “Buy and
Make Indian” category makes a significant distinction,
demanding 30% Indian content in the first basic equipment
made in India, while allowing the “Buy” portion to be
devoid of any restrictions in the interest of expeditious
procurement. The Armed Forces and the industry alike
welcome such a move, determined to be in the best interest
of our procurement philosophy.
The concept of Raksha Udyog Ratnas (RURs) has been
dropped. The MoD has made efforts to formulate
guidelines for the empanelment of the Indian private
industry in “Make” cases. The Indian industry at large
has been welcomed into the defense sector with broad-
based empanelment guidelines. This encourages the
“consortium” approach, wherein a group of companies is
engaged in manufacturing and is treated as a single entity
to determine turnover and capex. This will not only enhance
an indigenous approach to arms production, but also
encourage partnerships in key areas, as demanded by sheer
business volume.
A few provisions of the revised offset guidelines may make
discharge of offset obligation easier for foreign OEMs. This
includes a wider scope for discharge, extended times for
offset deliveries, multipliers for various options of choice of
Indian Offset partner (IOP), Transfer of Technology (ToT),
Technology Acquisition, etc. Best practices in offsets have
become integral to the Indian MoD’s offsets provisions,
duly integrated into Defence Procurement procedures.
Questions of dual-use technologies and products are still at
large, with the recent announcement regarding the list of
defense products adding to the list. Nevertheless, the MoD
has come up with a list of defense products by very faithfully
adopting the munitions list, as indicated in the Wassenar
Arrangement. It is believed that ML 21 and ML 22 are not
promulgated as part of the DIPP’s recent announcement
and are indicative of the fact that the products contined
within these sections of the Wassenaar Arrangement will
not require an IL, implying that the extant regulations of the
GoI will apply. Furthermore, the Revised Offset Guidelines
explicitly state that offset guidleines will be applied in
synergy with the remainder of the regulatory mechanisms of
the GoI. Read in conjunction with the FDI policy and industry
policy, the DPP provides a very coherent picture.
This DPP has focussed on Request for Proposals (RFI) and
Services Qualitative Requirements (SQRs) rather well.
The need for firming in SQRs prior to placing the same for
accord of AON is a significant step. Any ambiguity that was
inadvertently present through allowing amendments to the
SQRs post the accord of AON and prior to the issue of RFP
has been removed. Such flexibility is available only in the
case of “Buy and Make Indian”, adding to the popularity of
the category. The RFI process has been strengthened by
seeking cost estimations and other detailed information,
including suggested alternatives in meeting the objective.
The “Buy and Make Indian category” has been simplified.
The process appears to be in an implementable form now.
The involvement of DRDO in identifying and spelling out
technologies that are required to be absorbed with at least
50% in cat I and II is very welcome. It goes on to exhibit the
DPP’s intent to clearly scout for technologies and plug in
gaps, as have been identified. Some emphasis has been
placed on identifying vendors in successive stages. Demand
for indigenization at various stages of delivery schedule and
technology absorption is welcome, thus placing an element
of accountability. The cumbersome process of making a
capability definition document, Detailed Project Report
(DPR), et al, has been done away with. With such enabling
features, the “Buy and Make Indian” category of acquisition
may become more popular and find patronage from within
the Armed Forces and industry. The domestic industry
has reason to cheer, as the government has ensured the
creation of an enabling and conducive environment for their
participation through the DPP 2013. If the conditions are
not duly leveraged, “Buy Global” will once again dominate
the space, and the domestic manufacturing industry would
have to remain content with contract-manufacturing
through offsets.
Transfer of technology is addressed in detail with enabling
provisions for maintenance ToT; it is worthwhile to note that
the cost of equipment and MToT will be borne by the private
Indian bidder. Although it is a welcome move, no process has
been laid out to enable this choice. In the absence of clarity,
It may be assumed that the selection of an MToT partner
will be governed by free market forces. This is a window of
opportunity for private players to engage with armed forces
on maintenance project throughout the life cycle of the
equipment. DPP has, for the first time, included a Performa
for the inclusion of information that needs to be placed on
6. 6 | Eye on Defence
the MoD website or the central procurement portal. This is a
significant step toward transparency. The provision has been
in place for more than six years, and the DPP has finally
enabled it through an inclusion in the Statement of
Case (SoC).
Increased power at the service headquarters level will
reduce the burden at the MoD (DG Acq) level, enabling
stronger focus on large procurement cases. A large
number of cases will fall under the services’ Vice Chiefs
level. Therefore, the Armed Forces need to strengthen the
mechanism to cater to the potential increase in volume.
Areas where the MoD does need to step in
and speed up
The Mod needs to urgently and immediately decide a
timeframe for the acquisition process. Given the increased
accountability and speedier decision making, acquisition
timelines should have ideally shrunk. In all cases involving
technology, it is imperative that Defence Research
Development Organization (DRDO) plays a prominent role
and addresses the issue holistically. The DPP may include
the recommendations of other boards such as the Defence
R&D board, the Defence Production Board and others,
as a reporting mechanism to the Defence Acquisition
Council (DAC) in its regular meetings. This will create more
accountability at the other boards as well.
Post contract monitoring has not been strengthened,
thus raising the question, “how many times has the post
contract monitoring been done and Quarterly Contracts
Implementation Reports (CIR), placed for review and what
lessons have been learnt”? In spite of the various scams that
have surfaced, the Technical Oversight Committee (TOC),
the sole mechanism available with the DPP, has not been
strengthened. The TOC is indeed a very potent source of
fixing bugs in the system. It could potentially provide early
warning for fixing any irregularities, even prior to signing of
the contract.
The DPP does not provide for inclusive growth, especially
in the case of any schemes for Micro, Small and Medium
Enterprises (MSMEs), which are the repositories of
knowledge and innovation, and make considerable room
for IPs. The DPP 2013 would have done well to introduce
benefits such as exemption of Ernest Money Deposit
(EMD) and other securities, provision of funds at lower
interest rates or as grants, price preference and purchase
preference, special waiver for exchange rate variation to
protect them, or at least a small cross reference the MSMED
Act of 2006 for sake of uniformity. It could have also gone
one step ahead to introduce a new procurement category,
such as “Buy MSME”, for all cases where procurement
cost is low for products that are not technologically cost
prohibitive. In all “Buy Indian” cases or even in “Make”
category cases, a small portion of the procurement or
parts/components thereof could have been mandated for
procurement from MSMEs. This would ensure enhanced
cooperation between large system integrators and MSMEs.
Conclusion
The DPP 2013 is in many ways transformational, having
provided focus in many crucial areas that were ignored
in the past. Focus on indigenous content with clearly laid
out definition and intent is demanding. This only needs
to be reinforced more stringently with each passing DPP
version. The priority laid down for procurement by category
is laudable, though proof is in the execution. Priority of
procurement must be linked to lead times, and the Indian
industry needs more lead time to be able to gear up to the
stringent requirements of the Armed Forces and put the
right collaborative mechanisms in place. It appears that the
“Buy and Make Global” category will carry on as before with
nominations from the public sector only. The opening up of
MToT to the private sector’s needs and market forces must
be able to determine the extent of relationships. The OEM
must be able to choose its MToT partner. Time to RFP from
AON is significant and will usher in RFPs more predictably
than before.
The integration of offset guidelines into the main
procurement procedure is a routine inclusion, and the
benefits of the guidelines would be realized only after half a
decade. To ensure that progressive offset provisions are of
any use for the domestic industry, the provisions must be
necessarily made applicable with prospective effect. Linking
the provisions of the DPP with those of the offsets and of
the procedures to the RFP is out of place. The procurement
process and offsets provisions need distinctive treatment.
Offsets do not have any relationship to the award of contract
and, hence, can be made applicable at a time of choice.
The MoD will do well to realize this and allow the domestic
industry to reap the benefits today rather than put it off for
a date.
It would have been a good idea to make provisions
for inclusive growth in the MSME sector. It must be
remembered, “If India lives in villages, then industry lives
in MSMEs”.
7. 7Eye on Defence |
India’s coastal
security
India, with a vast coastal border of 7516 kms and covering
9 coastal States and 4 Union Territories, poses a variety of
serious security issues/concerns and challenges including
the landing of arms and explosives at isolated spots on the
coast, infiltration/exfiltration of anti-national elements, use
of the sea and offshore islands for criminal activities, and
smuggling of consumer and intermediate goods through
sea routes. The 26/11 Mumbai terrorist attacks brought to
fore the vulnerability of India’s coasts and the urgent need
for ensuring coastal security. Since then, the government
has taken several initiatives to strengthen security of
coastal areas. One of the most significant achievements has
been making the Indian Navy (IN) responsible for overall
maritime security in terms of coastal security, offshore
security and the integration of all maritime stakeholders,
including several state and central agencies, into the new
coastal security mechanism. All of the stakeholders in the
maritime domain have been directed to coordinate their
activities with the Navy. The Indian Coast Guard (ICG) will
look after coastal security in territorial waters, including
areas to be patrolled by the Coastal Police, as well as
coordination between the central and state agencies.
Also, the government finally created a three-tier coastal
security ring all along the coast provided by the Marine
Police, Indian Coast Guard and Indian Navy. It described
the geographical extent of their responsibilities. At present,
extensive surveillance and patrolling has been put in place
across the Eastern and Western coastlines by security forces
in a coordinated manner. The Coast Guard is undertaking
extensive patrolling and surveillance along the eastern and
western coast, in coordination with other central and state
agencies, viz, the Indian Navy, Marine Police, Customs, CISF
and Port Authority. Furthermore, for effective surveillance,
the deployment of assets by ICG in the Exclusive Economic
Zone (EEZ) has been enhanced. On an average, about 18-
20 ICG ships are kept on patrol on a daily basis, while 8-10
aircrafts are on aerial surveillance sortie.
At least one ship is being maintained on
the maritime borders with Pakistan and Sri
Lanka. In addition, waters off Lakshadweep
and Minicoy islands are maintained under
constant surveillance. For patrolling shallow
waters, the Marine Police has been raised in
coastal states and union territories. These
have been equipped with interceptor boats
and other assets under the Coastal Security
Scheme.
Apart from strengthening the existing
multi-layered patrolling and surveillance
arrangement, the acquisition plans and
programs of the Indian Navy and the Coast
Guard have been fast-tracked to provide
both these maritime security forces with
enhanced capabilities. ICG has been in
existence for over three decades. Regardless, in this volatile
era of heightened coastal security concerns, ICG will have to
constantly upgrade and improve its functioning.
ICG is rapidly expanding and has planned the acquisitions
of a large number of ships, boats and aircraft, under
construction at various shipyards, to upgrade itself to the
requisite level. This is in the context of about 50% of the
surface platforms having already exceeded their designated
life. The ICG is now gearing up for a major expansion drive.
It has placed orders for 131 surveillance platforms that are
already under construction in Indian shipyards and is in the
process of introducing a variety of assets. The Coast Guard
is looking to procure at least 5 OPVs, 10 fast-attack craft, 20
interceptor boats, hovercrafts, radars, 12 Dornier aircraft,
30 helicopters, among other things. Some of the major
ongoing/planned orders and programs in the pipeline for the
ICG consist of:
Assessed
Requirement
Present Inventory
Ships 154 No. Ships 44 No.
Boats/
Crafts
93 No. Boats/Crafts
Non-Commissioned
Boats
20 No.
23 No.
Aircraft 105 No. Aircraft 45 No.
8. 8 | Eye on Defence
Offshore Patrol Vessels (OPVs)
OPV is the most critical platform for coastal security. The
Indian Navy and the Coast Guard have 17 OPVs of varying
sizes on order worth US$2 Billion (INR110 billion). The
authorities plan to order another 13 large OPVs worth US$6
billion (INR330 billion) for Indian Coast Guard. The Coast
Guard is reportedly looking to induct 160 OPVs in next 10
years. Following are the orders placed in the past few years
in this regard:
• Goa Shipyard (GSL) received an order of 9 OPVs for
IN and ICG. The latest one was the US$328-million
(INR18-billion) order placed in mid 2012 for six OPVs
for Coast Guard.
• In 2010, Pipavav was awarded a contract to build five
OPVs for the Navy.
• The Cabinet Committee for Security had cleared
proposals worth US$390 million (INR21.5 billion).
Accordingly, five offshore patrol vessels would be
bought for the Coast Guard for US$273 million (INR15
billlion). The proposal will be processed during 2013.
Fast patrol vessels
The Cochin shipyard is building 20 FPVs for Cost Guard. For
this, the authorities had placed an order worth US$273
million (INR15 billion) at end 2010, with the delivery of the
last vessel slated for 2017.
Interceptor boats
There are plans of inducting 145 small interceptor boats. Of
these, 36 are being constructed at the L&T shipyard and the
remaining at various other shipyards.
Fast Interceptor Crafts (FIB)
The MoD is in the process of procuring FICs worth $56
million (INR3 billion). By December 2011, 15 FICs were
delivered to the Navy to quip Sagar Prahari Bal, a specialized
force for securing India’s coastal assets. The contract for
the boats was signed with Sri Lankan shipyard Solas Marine.
Delivery of boats is slated for end 2014, and all of these will
be supplied to Sagar Prahari Bal, a special naval infantry
force comprising 98 officers and 902 sailors, brought into
being especially for coastal security. Also, the MoD signed a
deal for the procurement of 15 fast-interception boats (FIBs)
with French shipyard Chantier Naval Couach to supplement
the Navy and Coast Guard.
Aircrafts/Helicopters
The Coast Guard has a fleet of 45 aircraft (24 Dornier
planes, 17 Chetak helicopters and 4 Dhruv Advanced Light
Helicopters). The modernization plan for ICG Aviation is
an integral part of the major revamp of coastal security
apparatus incited by the events of 26/11 Mumbai attacks.
Keeping this in view, a case for the procurement of 6
multi-mission maritime aircraft and 14 shore-based
helicopters for surveillance and reconnaissance is being
initiated by Coast Guard in the near future. While the
RFI of the first programme is awaited, the tender for the
second programme has been issued. The Coast Guard is
also planning to issue a fresh tender worth US$200 Million
(INR11 billion) for 16 Ship Borne Light Helicopters this year.
Coastal Surveillance Network
For improving surveillance of the entire coastline and
counter sea-based piracy, the Coastal Surveillance Network
project is being implemented. The coastal surveillance
scheme will operate through a chain of electro-optic sensors
(radars and day, and night cameras), which are being
installed on lighthouses and towers that look out at the
Arabian Sea and the Bay of Bengal. Data picked up from
multiple sensors all along the coast will be transmitted to
surveillance centers located in the interior. With a range
of about 80 miles, this chain will boost the electronic
surveillance capability of the force to identify any rogue ship
approaching the Indian coast.
Name Of Coastal States/Union
Territories
No. Of Radar
Stations
Phase-I
Gujarat 06
Daman & Diu 02
Maharashtra 05
Goa 01
Karnataka 02
Kerala 04
Lakshadweep & Minicoy Islands 06
Tamil Nadu 06
Pondicherry 01
Andhra Pradesh 06
Odisha 02
West Bengal 01
Andaman & Nicobar Islands 04
Total 46
9. 9Eye on Defence |
The entire project for coastal surveillance through radars
and sensors is being carried out in two phases. As part
of Phase I, the ICG is setting up 46 electro-optic sensor
stations in high-threat areas and 12 remote operating
stations. This will be expanded in Phase II to cover the entire
coastline within three years. The 12 remote operating
stations feed into one of four regional operating centers
in Mumbai, Kochi, Chennai and Visakhapatanam. Finally,
all this information is fed in real time to the apex control
center in New Delhi and is integrated to be presented with
a nationwide perspective. Along with this, as part of the
second layer of electronic maritime surveillance, automated
identification stations with a range of 150 miles will also
be set up. For proper functionality, transponders will be
put on all boats of fishermen. The third and outermost
layer consists of satellite-based Long Range Identification
and Tracking (LRIT) to spot vessels transcending through
waters about 1,000 miles from the Indian coastline. The
program, inclusive of sub-components for Phases I and
Phase II, is reported to be worth $3 billion (INR165 billion).
Phase I is nearing completion; the installation of radars
in the mainland was completed by the end of November
2012, while those in the island territories are expected to
be installed by mid 2013. The prime contractor is Sweden’s
SAABTech. Indian company BEL has been assigned for the
assembling of all imported systems and sub-systems that
are being received in semi knocked-down condition from
SAABTech. Other companies involved are:
• TERMA of Denmark: supplying SCANTER 2001 S-/X-
band radars
• Controp of Israel: supplying thermal imager
• Canada’s Obzerv of Canada: supplying ARGC CCD
camera with LLLTV
• Frequentis of Austria: providing communications
package
Phase II involves setting up 110 multi-modal coastal
surveillance radars and 37 towers. TERMA has already
been engaged as a sub-contractor. The Low Light Level TV
(LLLTV) with Charge Coupled Device (CCD) Camera from
OBZERVE, Canada and Thermal Imager from Cantrop,
Israel was cleared during field evaluation trials, and contract
negotiations are underway. Other anticipated beneficiaries
include Cobham, Thales and Elta.
Coastal Security Scheme
A Coastal Security Scheme (CCS) has been formulated
for strengthening infrastructure for the patrolling and
surveillance of the country’s coastal areas, particularly
the shallow areas close to he coast to check and counter
illegal cross-border activities and criminal activities using
Cost Details of Infrastructure Remarks
PHASE – I $117 Million (Rs 646
Crores)
Coastal Police Stations: 73
Vessels: 204
Jeeps: 153
Motorcycles: 312
Check posts: 97
Outpost: 58
Barracks: 30
Rubber Inflated Boats: 10
Completed
PHASE - II $287 Million
(Rs 1580 Crores)
Coastal Police States: 131
Jetties: 60
Marine Police Operational Centres equipped: 10
Vessels: 150 (12 ton) boats, 20 (19 meter) boats, 10
large vessels and 10 (5 ton)
Four Wheelers: 131
Two Wheelers: 242
Rigid Inflatable Boats: 35
Procurement of approved 180 (12 Ton) boats and 10
large vessels for A&N Islands
Over 2011-2016
Data Compiled by Q-Tech Synergy
10. 10 | Eye on Defence
coast or sea. The scheme is being implemented from 2005-06 onward. Under the scheme, coastal states/Union Territories
are encouraged to set up coastal police stations with boats, jeeps and motor cycles for mobility on coast and in close coastal
waters. The stations will have personnel trained in maritime activities. The government is implementing CSS in two phases.
The implementation of Phase I was completed on 31 March 2011. Phase II will be implemented over five years from 01
April 2011 onward. Phase II is being implemented centrally by MHA and specifications of boats have been finalized. All of
the boats are fit/provided with navigational and communication equipment to facilitate vessel identification and tracking.
Lumpsum assistance of INR15 lakhs per costal police station has been given for surveillance equipment, computer systems
and furniture. Details of Phase II are as below.
Name of State Costal
Police
Stations
Boats/Vessels Number of
jetties
Four
wheelers
Motor
Cycles
Remarks
12 Ton Others
Gujarat 12 31 5 12 24
Maharashtra 7 14 3 7 14
Goa 4 4 2 4 8
Karnataka 4 12 2 4 8
Kerala 10 20 4 10 20
Tamil Nadu 30 20 12 30 60
Andhra
Pradesh
15 30 7 15 30
Orissa 13 26 5 13 26
West Bengal 8 7 4 8 16
Daman & Diu 2 4 2 2 4
Lakshadweep 3 6 12 * 2 3 6 RIBs
Pondicherry 3 6 2 3 6
A&N Islands 20 10*
23**
10 20 20 *LV
** RIBs
***10
MOCs
Total 131 180 60 131 242
* LV- large vessels ** RIB- Rigid Inflatable Boats *** Marine Operational Centres
11. 11Eye on Defence |
National Maritime Domain Awareness
(MDA) Grid
The government is setting up a National Maritime Domain
Awareness (MDA) Grid, which is expected to link up all
intelligence agencies, Indian navy units, coastal police
units, Ministry of Agriculture, Ministry of Shipping, Ports
and Departments of Customs and Revenue. This ambitious
project has been earmarked with funds worth US$300
million (INR1500 billion). Furthermore, DRDO and Center
for Artificial Intelligence and Robotics (CAIR) in Bangalore
are independently developing a coastal security networking
software. Presently, BEL is building the National Radar Chain
and, in conjunction, Director General Lighthouses (DGLL)
is developing the National Automatic Identification System
(AIS) chain.
Tracking of ships
The government is undertaking a program for tracking
ships, as a major challenge lies in the identification of
small vessels that do not comply with AIS regulations.
Consideration for fitting an AIS are:
• Ships operating within 2 miles of coast: RFID
• Those operating within 12 – 24 miles of coast: Modified
AIS
• Those operating within 100 miles of coast: Satellite
Transponder
The number of ships to be fitted with an AIS is estimated
at 5 lakh. This project will be decentralized to states, as
funding at a national level is not feasible. This opens a
substantial opportunity.
Surveillance equipment
The ICG does not have adequate vital equipment such as
hand-held Global Positioning System (GPS3), Night Vision
binoculars, Search and Rescue Transponder (SART4) and
Emergency Position Indicating Radio Beacons (EPIRB5). This
is creating an ever-growing demand for CCTV; night vision
devices; access control; thermal imaging systems; intercom;
intrusion detection; biometrics, detectors, x‐ray scanners,
baggage scanners, screening technologies and cameras.
The Indian Cost Guard is also contemplating a case for a
complete video conferencing solution between Coast Guard
ships at sea and shore units by using Marine VSAT. The
technical and operational features of the equipment include
stabilized Marine VSAT, availability of bandwidth and video
conferencing equipment both at ships and shore units.
In conclusion, it may be stated that during the last
four years, the MoD has made significant progress in
modernizing Coast Guard, with the Indian Government
making concerted efforts to build a robust coastal security
mechanism. To begin with, the existing multi-layered
patrolling and surveillance arrangement has been furthered
strengthened. Many programs and procurements have
been initiated, while several others are in the pipeline.
Nevertheless, the authorities need to maintain focus on
sustaining the initiatives, ensuring greater coordination
among Indian Navy, Indian Coast Guard and other
stakeholders, as well as providing adequate funding to
accomplish the task of strengthening India’s maritime and
coastal security.
Sources:
• “Coastal Maritime Security Initiatives,” Indian Navy
website, http://indiannavy.nic.in/sites/default/files/
Content_DNO_MaritimeOps_05-06-12.pdf, accessed
18 May 2013.
• “Rajya Sabha unstarred question no. 2568,” Ministry
of Home Affairs website, http://mha.nic.in/par2013/
par2013-pdfs/rs-200313/2568.pdf, accessed
15 May 2013.
• “Coastal Security Scheme Phase-II: state wise physical
component,” South Asia Terrorism Portal website,
http://www.satp.org/satporgtp/countries/india/
document/papers/2010/Statewpc.htm, accessed 20
May 2013.
• “Annual Report 2011-12 Ministry of Home Affairs,”
Ministry of Home Affairs website, http://mha.nic.in/
pdfs/AR%28E%291112.pdf, accessed 16 May 2013.
12. 12 | Eye on Defence
Request for Information (RFIs)
(March 2013—June 2013)
Date of Issue RFP Details/Equipment Response Date Issue By Remarks
29 May 2013 Vehicle Based Mine Scattering System
(VBMSS) on High Mobility Vehicle
15 June 2013 Engineer-in-Chief’s
Branch Integrated HQ of
MoD(Army)
Indian Army
24 May 2013 Heavy Recovery Vehicle 15 July 2013 Directorate General of EME
(EQPT)
Indian Army
29 April 2013 General Purpose Anti Personal Grenades 15 May 2013 Dte Gen of Infantry Indian Army
22 April 2013 Multi Spectral Camouflage Nets for Desert
and Semi Desert
21 May 2013 E-in-C Br Indian Army
22 April 2013 Mobile Decontamination System Vehicle
and Infrastructure mounted on High
Mobility Vehicle
21 May 2013 Combat Engineers
Directorate
Indian Army
2 April 2013 Electronic Fuzes for 105mm, 130mm and
155mm Calibre Guns
25 April 2013 Arty Dte Indian Army
28 March 2013 Ten items of Chemical, Biological,
Radiological and Nuclear (CBRN)
16 April 2013 MGO Branch Indian Army
21 March 2013 Short Range Unmanned Aerial Vehicle (SR
UAV)
3 May 2013 Directorate General of
Artillery
Artillery-11 (UAV)
Indian Army
31 May 2013 Interactive Fire Arms Training Simulator
System
30 June 2013 Provost Marshal (Air) Indian Air Force
23 May 2013 Multi-Functional Display in AVRO HS 748
Aircraft
5 Sep 2013 D Eng T (W) Indian Air Force
6 May 2013 Close Quater Battle Weapon 6 June 2013 AIR HQ (VB) Indian Air Force
26 April 2013 Weather Radar in AVRO HS748 Aircraft 7 Aug 2013 ACAS Eng (T&H) Indian Air Force
26 April 2013 Auto Pilot System in AVRO (HS-748)
Aircraft
7 Aug 2013 ACAS Eng (T&H) Indian Air Force
26 April 2013 Flight Data Recorder in AVRO HS 748
Aircraft
7 Aug 2013 ACAS Eng (T&H) Indian Air Force
8 Mar 2013 Assault Rifles 8 Apr 2013 DPM (B), Dte of PM (Air) Indian Air Force
12 June 2013 Integrated ASW Defence Suite 30 June 2013 Integrated Headquarters of
Ministry of Defence (Navy)
Indian Navy
31 May 2013 Explosive Ordinance Disposal Remotely
Operated Vehicle (EOD ROV)
4 July 2013 Directorate of Special Ops
& Diving
Indian Navy
24 May 2013 Heavy Weight Torpedo 7 June 2013 Directorate of Staff
Requirements
Indian Navy
8 April 2013 Laser Guided Bombs and Associate
Designators
6 May 2013 Directorate of Naval Air
Staff
Indian Navy
18 March 2013 Five Fleet Support Ships (FSS) 31 March 2013
Date Extended to
15 Jun 2013
The Principal Director of
Ship Production
Directorate of Ship
Production
Indian Navy
1 Mar 2013 Operational Level War gaming Simulator 25 Mar 2013 Directorate of Staff
Requirements
Integrated Headquarters of
Mod (Navy)
Indian Navy
13. 13Eye on Defence |
Request for Proposals (RFP)
(March 2013—June2013)
Date of Issue RFP Details/Equipment Response Date Issue By Remarks
24 May 2013 Main Filter Cartridge – for MBT Arjun Tank 12 June 2013 Comdt COD Agra Indian Army
Qty – 32 Sgl
24 May 2013 Harness for Bullet Proof Jacket 28 June 2013 GOC-in-C, Northern
Command,
Indian Army
Qty - 7810
12 April 2013 Fuze Safety No. 11 MK-2 22 May 2013 Integrated HQM oD (Army)/
MGOBranch
Indian Army
Qty 5,55,277
Nos.
5 April 2013 Deep Search Metal Detectors 13 May 2013 GOC-in-C, Northern
Command, C/o 56 APO
Indian Army
Qty 188 Nos.
25 March 2013 Tactical Vest 20 April 2013 OC-in-C, HQ Northern
Command
Indian Army
Qty 4000 Nos.
25 Mar 2013 Hiring of civil aircraft for Army chartered
flights
16 April 2013 Under Secretary D(Mov)/MoD Indian Army
104 Charter
Flights
21 March 2013 Gamma Sensor 15 April 2013 Comdt COD Agra COD AGRA,
PIN 908 820, C/O 56 AP
Indian Army
Qty 18 No’s
13 March 2013 Advance Surveillance Receiver 23 April 2013 GOC-in-C, Northern
Command, C/
Indian Army
Qty 48 Nos.
11 March 2013 Mine Prodder 22 April 2013 GOC-in-C,
HQ Northern Command
Indian Army
Qty 239 Nos.
5 June Vehicle mounted Bird Distress Call unit with
Battery
19 June 2013 Air Force Station Tambaram Indian Air Force
Qty:02 units
23 May 2013 Vehicle Mounted Air Band Transceiver 11 June 2013 Air Force Station Tambaram Indian Air Force
23 May 2013 Bird Scaring Laser Beam Gun 11 June 2013 Air Force Station Tambaram Indian Air Force
23 May 2013 Vehicle mounted Search light with remote 11 June 2013 Air Force Station Tambaram Indian Air Force
22 May 2013 Automatic Electronic Warning System 5 June 2013 Air Force Station Tambaram Indian Air Force
10 May 2013 Heliborne Surveillence Equipment 3 June 2013 Air Force Station, Hindan Indian Air Force
23 April 2013 TARANG Mk-1B Radiation Warning Receiver
System Mechanical Mod Kits for IL-76/IL-78
fleet of IAF
21 May 2013 Dte of Eng T Indian Air Force
Qty - 06
18 April 2013 Overhaul of CFTs 7 May 2013 Air HQ , RK Puram Indian Air Force
Qty 37 Nos.
11 March 2013 Shoulder Fired Weapon Indigenous Simulator
(SWIS)
25 April 2013 Commanding Officer TETTRA
School
Air Force Station
Indian Air Force
17 May 2013 Provision of Multifunction calibrator with
standard accessories for augmentation of
repair facility
21 Aug 2013 ND, Visakhapatnam Indian Navy
15 May 2013 Hand Held Pressure Calibrator along with
standard accessories for augmentation of
repair facilities
21 Aug 2013 ND, Visakhapatnam Indian Navy
6 May 2013 Setting up of repair facilities for PERISCOPE
SERO 400 and OPTRONIC MAST OMS 100 at
naval dockyard (Mumbai)
5 June 2013 DGNP (MBI) Indian Navy
14. 14 | Eye on Defence
Date of Issue RFP Details/Equipment Response Date Issue By Remarks
20 March 2013 Flood Sensor and Sensor Probe , 13 , 17 26 March 2013 Controller of Procurement
Material Organisation
Indian Navy, Flood
Sensor – Quantity
31 Nos. and
Sensor Probe –
quantity 17 Nos.
07 Mar 13 SOLAS Life Boats with Integrated Launching
and Recovery Mechanism and OBS
23 May 2013 DP Integrated Headquarters
of MoD (Navy) `C’ Wing
Indian Navy, Qty
06 Nos.
31 May 2013 Design Supply Erection and Commissioning
of TETRYL Manufacturing Plant
30 June 2013 High Explosives Factory,
Khadki, Pune
Ordnance Factory
Board
6 April 2013 Turret Pnumatic Equipment for BMP II 17 April 2013 Ordnance Factory, Medak Ordnance Factory
Board
28 March 2013 Antenna for FUZE FB 40 7 May 2013 Machine Tool Prototype
Factory, Ambarnath -
Ordnance Factory
Board Qty 14014
Nos.
21 March 2013 Nose FUZE Type A 670 M , Composition to
34 Number 1
26 March 2013 Ordnance Factory Khamaria
JabalPur
Ordnance Factory
Board
1 May 2013 Bullet Proof Helmet Level-III A 28 May 2013 Directorate General, Border
Security
Border Security
Force
9 April 2013 Explosive scent kit 30 April 2013 NT CD BSF Tekanpur Border Security
Force
2 April 2013 Passive Night Telescopic Sight 14 May 2013 Provisioning Directorate
(Procurement Cell)
Border Security
Force Qty - 5485
15 March 2013 Wet leasing of Twin Engine Helicopters 16 April 2013 Directorate General, CRPF Central Reserve
Police Force Qty
2 Nos.
16 April 2013 Diving Set With Accessories For CG Ships
(BASCCA Twin Cylinder Diving Set)
14 June 2013 HQ Coast Guard Region
(West)
Indian Coast
Guard Qty 09 Nos.
28 March 2013 High powered speed Boat 18 April 2013 Directorate General, ITBP Tibetan Border
Police Qty 02 Nos.
Request for Proposals (RFP)
(March 2013—June2013) (cont’d.)
15. 15Eye on Defence |
List of Industrial Licenses (ILs) filed for
March 2013—April 2013
Application no. and date Name of the applicant Item of manufacture
12
06/03/2013
Sure Safety Solutions Pvt. Ltd. Aerial targets and its spares, airframes, catapult
equipment launchers, ground command, control and
support equipment
13
20/03/2013
Continental Engines Limited Engines/engine components, aerospace engine,
manufacturing of miscellaneous products,
manufacturing of electronic components
14
26/03/2013
KPIT Cummins Infosystems Limited IL for rendering engineering services with end use in
defense, homeland security and civil aviation sector
15
01/04/2013
Narendra & Co. Pvt. Ltd. Aerosol based fire suppression systems, fire fighting
equipment
16
10/04/2013
Shanthi Gears Limited Design and develop, manufacturing of supply gear box
accessories and servicing of gears, gear boxes-both
standard and custom built, gear motors, gear couplings
and gear assemblies
17
15/04/2013
Pipavav Defence and Offshore
Engineering Company
Manufacturing/Assembly/Integration of electronic
fuses and associate subsystems and components
for ammunition-guided munitions, rockets, missiles,
torpedoes for Indian Armed force
18
26/04/2013
Narendra Explosives Limited Non-lethal tear smoke shells, tear smoke containers
(delay), tear smoke grenades, fog ejectors, projectile
rounds, cellulose sheets and containers
19
30/04/2013
Karnataka CNC Tech Pvt. Ltd. Structural components for Sukhoi Su 30 Mki,
indigenization of 155 Mm Howitzer parts, indigenization
of Naval Gun Ak 630m parts and T72 Battle tank parts,
major components of small arms for Ordnance factories
16. 16 | Eye on Defence
New projects/investments/
contracts
Name of entity Project details Value*
Textron • Textron is looking to expand its Indian footprint by entering the defense sector.
It is positioning its product portfolio to suit India’s military requirements.
• The company is looking to invest US$100 billion over the next decade on
military hardware.
• The new Bell 407 armed version and Bell 429 twin-engine Textron rotorcraft fit
the need of Indian military, state governments and paramilitary forces. Bell-525,
currently under development, is a potential product for the armed forces.
INR5,500 billion
(over the next 10
years)
Indian Air Force • The IAF plans to procure 56 light-transport aircraft that would replace its
existing Avro aircraft fleet in service.
• Manufacturing in India will be carried out by an Indian private company through
the transfer of technology from the international vendor.
• According to RFP, 16 aircraft would be acquired outright (fly-away condition)
from an international vendor, while the remaining 40 will be manufactured in
India.
• The first 16 aircraft to be produced in India will have 30% indigenous
component, while the remaining 24 planes will have 60% locally procured and
produced items.
INR1,300 billion
Indian Air Force • The Indian Air Force is expected to close five major deals in the current fiscal.
• The deals include the procurement of 126 MMRCA (US$20 billion), three
C-130J special-operations planes (as a follow-on order), 22 Boeing Apache
Longbow strike helicopters (US$1.2 billion), 15 heavy-lift Boeing CH Chinook
helicopters (US$1.4 billion) and six European A-330 MRTT (US$2 billion) mid-air
refuelling tanker planes.
INR1,375 billion
Indian Army • The Indian Army has plans to upgrade its infantry combat vehicles (ICV)
fleet with weapons such as antitank guided missiles and automatic grenade
launchers.
• The Army selected three Indian companies, including two private ones, for
buying 100 artillery howitzers.
INR82.5 billion
Boeing Co. • India’s Ministry of Defence is in discussions with Boeing to buy 37 heavy-lift and
attack helicopters for IAF in two separate deals.
• The order includes the purchase of 15 Chinook CH-47F heavy-lift helicopters
in a deal worth around INR24.68 billion and 22 AH-64D Block-III apache attack
helicopters for a cost of around INR30.95 billion.
• Presently, only the proposal for the apache helicopters is at the contract
negotiations stage.
INR55.63 billion
Pilatus Aircraft
Limited
• Pilatus Aircraft Limited plans to set up an airframe manufacturing facility in
India for its PC-12 nine-seater passenger and cargo plane.
• The proposed facility would form a major portion of the collaboration with the
Hindustan Aeronautics Limited (HAL) under the offset provision of the contract
for supplying 75 PC-7MK-II aircraft.
• The PC-12 aircraft is used as an air ambulance for evacuation and disaster relief.
INR35 billion
17. 17Eye on Defence |
New projects/investments/
contracts (cont’d.)
Name of entity Project details Value*
Indian Army • The MoD approved thermal imaging (TI) sights for main-battle tanks and infantry
combat vehicles.
• The Defence Acquisition Council (DAC) approved the acquisition of around
2,000 TI sights for commanders of T-72 tanks, which form the backbone of the
force’s mechanized forces, for around INR10 billion.
• Around 1,200 TI-cum-day sights will be procured, at a cost of INR9.6 billion, for
T-90S main battle-tanks. Similarly, another 1,780 TI-cum-day sights are to be
bought for infantry combat vehicles, BMP-II and BMP-IIKs at a cost of around
INR8.6 billion.
INR28 billion
Indian Air Force
(IAF)
• IAF has put forward a proposal to the MoD for a follow-on order of 37 more
Pilatus trainer aircraft from Swiss manufacturer Pilatus Aircraft Company.
• IAF had previously contracted for 75 Pilatus trainers, out of which 12 aircraft
have already been delivered. IAF recently inducted a Pilatus aircraft at a
ceremony at Air Force Academy in Hyderabad.
• The proposal, once approved, will provide a boost to its basic trainers’ fleet and
will take the total number of Pilatus aircraft to 112. The cost of a Pilatus aircraft
is around INR 300 million.
INR12.5 billion
Pipavav Defence
and Offshore
Engineering
Company
• ►Pipavav Defence bagged orders for building two specialized offshore vessels
from a European client.
• Pipavav Defence intends to increase its market share in the offshore segment
over the next four quarters.
INR11.6 billion
SAAB • SAAB raised its stake to 3.3% in Pipavav Offshore and Defence Engineering Ltd.
• It also signed a Technical Partnership Agreement (TPA) with SAAB covering
details about the format for continued relationships and relevant projects.
• The company had signed a Memorandum of Understanding (MoU) in August
2012 concerning a strategic investment in Pipavav.
INR2.25 billion
Indian Space
Research
Organization
(ISRO)
• ISRO has stepped up plans to start a new facility for producing cryogenic
engines and components for its rockets. It currently produces cryogenic engines
in partnership with a consortium of Indian private companies — Godrej and
Hyderabad’s MTAR.
• The new facility, to be established at the aerospace division of the state-run
Hindustan Aeronautics Ltd. (HAL) in Bengaluru, is expected to start operations
in 2016.
INR1.38 billion
Ashok Leyland
and L&T
• ► A consortium of Ashok Leyland and L&T emerged as the lowest bidder in the
Indian Army’s procurement of 100 multi-barrel rocket launchers (meant to
upgrade BM21 rocket launchers).
• ► The contract involves refurbishing existing rocket launchers and mounting them
on new vehicles. Weapons-related work will be undertaken by L&T, and the
vehicle is a new Ashok Leyland platform.
INR1 billion
18. 18 | Eye on Defence
Name of entity Project details Value*
Hindustan
Aeronautics
Limited and
Rolls Royce
• ► The International Aerospace Manufacturing Limited (IAMPL) inaugurated its
production facility in Bangalore in June. The IAMPL is a JV company of HAL and
Rolls-Royce (UK), with both the parties sharing the cost equally.
• ► The facility will produce components for the technologically advanced Trent
family of civil aero engines, as well as for a number of marine and energy gas
turbines.
• ► The production facility is spread over 7,200 sq m and will manufacture
130 compressor parts. The newly inaugurated facility will have about 100
employees.
INR350 million
Mazagon Dock
Limited
• ► Mazagon Dock Limited awarded a contract to supply a powered wheel
transporter system to TTS Group ASA through its subsidiary TTS Handling
Systems.
• ► The transporter system is based on tyre wheel trailers and can handle more
than 700 tons. Mazagon Dock Limited will use the system in its submarine
production.
INR110 million
Elnfochips • ► Ahmedabad-based EInfochips became the first and only company from Gujarat
to become an offset partner and supply parts for aircraft and unmanned aerial
vehicles.
• ► It will work with companies engaged in the manufacturing and maintenance of
eligible items for the defense and aerospace industry.
• ► The company will supply parts for aircraft and unmanned aerial vehicles.
• ► It engages with avionics leaders in the areas of flight controls, cockpit displays,
communication, surveillance and video systems.
NA
Central Reserve
Police Force
(CRPF)
• ► The CRPF plans to purchase more than a dozen of indigenously manufactured
UAVs and a number of mine protected troop carriers from the DRDO and the
Ordnance Factory Board (OFB).
• ► The equipment would provide aid and guidance to ground patrols of the force
engaged in anti-naxal operations.
• ► CRPF would receive 15 Nishant Unmanned Aerial Vehicles (UAVs) and more
than three dozen counter-landmine vehicles to protect troops from hidden
mines.
NA
Indian Army • ► The Indian Army has stepped up its plans to boost its mountain warfare
capabilities.
• ► It plans to procure more ultra-light artillery guns and surveillance equipment
(radar and sensors). In addition, it has put forward a proposal to establish a
mountain strike corps for added offensive capabilities.
NA
New projects/investments/
contracts (cont’d.)
*The values of the deals have been converted to Indian Rupees using Oanda currency conversion tool
1US$ = INR55; 1NOK=INR10; 1SEK=INR9
19. 19Eye on Defence |
Name of entity Nature of transactions Value*
Bharat
Electronics Ltd.
and TCOM
• ► Bharat Electronics Ltd. (BEL) plans to develop an advanced aerostat
communication system jointly with US-based aerostat and airship maker, TCOM.
• ► The partnership would augment the surveillance capabilities of defense services,
security services and law enforcement agencies.
• ► The helium-filled aerostats, which include sensors mounted on blimp-like
large balloons secured to the ground with long cables, provide radar data and
communication relay to ground force.
NA
Piramal
Systems and
Technologies
and Global
Technical
Systems
• ► Piramal Systems and Technologies is in talks to form a JV with US-based
surveillance technology developer Global Technical Systems to collaborate on
maritime and internal security.
• ► Global Technical Systems created a surveillance radar technology AN/APS-151
Radar, an-all weather, day and night indicator radar for maritime and land-based
operations.
NA
HAL and BAE
Systems
• ► British aerospace major, BAE Systems, is looking to partner HAL for new
projects across 17 countries.
• ► BAE Systems is looking to partner HAL beyond the Hawk Advanced Jet Trainer.
A new business model such as Performance Based Logistics (PBL) could be
another area of cooperation, with HAL leveraging BAE’s experience.
• ► The induction of the tandem twin-seat Hawk by the Indian Air Force (IAF)
in 2008 to train its senior pilots in flying fighter jets and use weapons at
supersonic speed made India the second-largest market for BAE for the aircraft
after Britain.
NA
JVs and alliances
20. 20 | Eye on Defence
Country-level deals
and initiatives
Country Nature of transactions Additional details
Israel Israel is all set to bag an INR150-billion
defense deal to equip all of the 356
infantry battalions of the Indian Army
with third-generation anti-tank guided
missiles (ATGMs).
• ► The deal will involve an initial direct acquisition of the
man-portable “tank killers” with a strike range of 2.5 km,
followed by the transfer of technology to defense PSU,
Bharat Dynamics, for large-scale indigenous manufacture.
• ► However, since Israel is the sole bidder, the deal is currently
put on hold and is pending a “technology scan” by the
Defense Acquisition Council (DAC), given the “single vendor
situation”.
Russia India is planning to tie up with Russia for
building self-reliance in the design and
development of all types of warships,
including submarines, for the Navy and
the Coast Guard.
• ► The Defence Ministry plans to have a tie-up between
the Kerala-based National Institute of Research and
Development in Defence Shipbuilding (NIRDESH) and
Russian Krylov Institute for working in this direction.
• ► The Ministry of Defence appointed a sub-committee to
prepare a roadmap for growth of NIRDESH, while another
would examine and select R&D projects undertaken by it.
Maldives The Minister of Defence and National
Security of the Republic of Maldives, Mr.
Mohamed Nazim, was on a four-day visit
to India.
• ► Both the ministers reviewed ongoing exchanges between
the Armed Forces in areas of training, exercises and
strengthening of infrastructure and capabilities. They
also decided to take measures to further enhance such
exchanges.
Singapore India and Singapore held wide-ranging
talks on defense cooperation. They
exchanged views on global and regional
security issues including Asia-Pacific
security.
• ► India and Singapore signed a fresh agreement to extend
the use of training and exercise facilities in India by the
Singapore Army for five years from August 2013 onward.
• ► The agreement was signed by Indian Defense Secretary
Mr Radha Krishna Mathur and Singaporean Permanent
Secretary of Defence Mr Chiang Chie Foo in the presence of
the Defence Ministers of the two countries, Mr AK Antony
and Dr Ng Eng Hen.
Thailand India and Thailand initiated talks for
cooperation and collaboration in defense
production during the meeting of defense
ministers in Thailand. Talks between
the two ministers covered a wide range
of issues including regional security
concerns.
• ► Defense Minister Shri AK Antony offered to discuss
possible areas of cooperation and collaboration in defense
production with the Thai authorities.
• ► The Defense Minister also invited Thai teams to visit various
defense production facilities.
Australia Defense Minister Mr. A K Antony and
Australian Minister for Defense Mr.
Stephen Smith met in Perth and Canberra
to discuss shared strategic and security
interests, including maritime security and
bilateral defense cooperation.
• ► India and Australia agreed to continue to contribute to the
peace, stability and prosperity of the Asia-Pacific region and
to promote cooperation in the Indian Ocean region.
• ► They took note of the progress made in defense
cooperation, in accordance with the MoU on defense
cooperation inked in 2006, the joint declaration on security
cooperation issued in 2009 and the joint statement issued
during Australian Prime Minister Julia Gillard’s visit to India
in 2012.