Def Expo 2012: MOD Reaffirms Its Resolve to Grow Indian Defence Industry

DG (Acquisitions) indication of the MoD’s inclination towards private sector participation by strongly supporting the “Make” procedure. According to the Defence Procurement Procedure, this allows private industry to bid for building complex military platforms, with the MoD funding 80% of the cost of development. There are currently only two “Make” projects being pursued: the Future Infantry Combat Vehicle (FICV); and the Tactical Communications System (TCS).

“To build up the defence base, we need to generate a lot of “Make” procedure (procurements). We will make a list of 150-180 “Make” procedure projects…. to energise the industrial base of the country.

RRM, however, cautioned the private industry not to expect a fully-funded stroll into defence production. “The industry also needs to commit itself to the field in terms of establishing the required infrastructure and develop the capacities. Commitment to R&D effort is also required by the defence industry both in the public and private sector if the long-term goals are to be met,” said Shri Raju.

Read Ajai Shukla's Report: Defence Min signals growing acceptance of private sector

Def Expo 2012 : Curtain Raiser

There are going to be 232 foreign firms, mainly from the US, Russia, France, Israel, the UK and Germany, and 60 official delegations in town this week for the four-day "Def Expo 2012' that begins on 29 Mar.

Over 335 Indian exhibitors, including major ones like Tatas, Punj Lloyd, L&T and Mahindra, will also be there to explore tie-ups and joint ventures with foreign companies as well as DRDO, defence PSUs and domestic shipyards.

"We understand fully well that indigenization cannot happen through only defence PSUs. We have taken several steps to encourage the private sector," said Mr Shekhar Agarwal, Secretary (Defence Production).

The Defence Ministry has been pushing for JVs and Technology Transfers to strengthen the Defence Industrial Base in India. FDI is 26% in the Defence Production Sector.

Full Report: Def Expo 2012 : Curtain Raiser

'Man-Machine-Logistics' Optimization

“Indian Air Force (IAF) is highly professional, and its fighter pilots super. A 'flying machine' would always have certain limitations for certain reasons, may be non-compliant in some ways. It is the pilot-machine team that would deliver the results unimaginatively”. Discuss. 

This discussion started by Me on Linked-in about a month ago in ‘Aerospace and Defence Group’ is inviting insightful comments and views many ways.

A Very Useful condensed knowledge on fighter ac!

Pse visit Man-Machine-Logistics Optimization

Sukhwindar 

Defence Offset Implementation Debate

John Williams has started a very interesting discussion on offset Implementation on Linked-in at

John’s Discussion on Offsets

My rejoinder on Comments till date is as under:

I did not suggest the Offset Implementation structure in the MOD by design. Wanted it to evolve naturally in Indian conditions.

I think the answer lies in creating an indep 'Offset Implementation Agency' under an Addl secretary/secretary level officer with minimal staff to support it, and expertise drawn, as it is, from the working desks of Acquisition Wing, DDP, DRDO, DGQA, Ministries of Home Affairs and Aviation, Defence Services, etc without burdening the existing MOD set-up for obvious reasons.

Offset Project Approvals should continue to remain with the DOD as of now. Will ensure transparency and probity. DOFA organized to clear the Offset Credits. Offset Implementation Agency just implements offset projects in concert with the offset recipients. In this concept, offset projects approvals, ground implementation of offsets, and approving offset credits are the responsibility of different offices. This would ensure transparency, and the fact that offsets are not diluted/'leaked'.

I am sure the Indian MOD has requisite expertise and experience in evolving organizations meeting Indian ethos. A Single Point Agency, all inclusive, is likely to run into lots of difficulties, and representations/complaints as a result affecting the acquisition process.

The Organization will not be what each stakeholder desires, but an optimized set-up per our system of governance for the strategic sector.

www.svipja.com

Mirage 2000 Upgrade for the IAF by Dassault and Thales

French firms Dassault and Thales will upgrade is to upgrade IAF Mirage 2000 fleet under a deal worth $2.4 billion. The Indian government has started making payments for the deal to upgrade the Mirage ac as per a media report.

Under the deal, the French firms will help in upgrading the avionics, navigation systems, mission computers, electronic warfare systems and radars bringing the aircraft to the Mirage-2000-5 standards. The French companies will have to invest over $900 million into the Indian defence sector as defence offsets.

As per the agreement, India has sent two of its aircraft to France for upgrades and thereafter the rest would be upgraded at Hindustan Aeronautics Limited facilities.

Mirage 2000 Upgrade for the IAF by Dassault and Thales

MOD India Blacklists Six Defence Firms

India has blacklisted six armament firms for 10 years on bribing charges.

The sanctions targets four foreign companies, namely Israel Military Industries (IMI), Singapore Technologies Kinetics Ltd, Switzerland's Rheinmetall Air Defence, and Russia's Corporation Defence (CDR).

The other two companies targeted, RK Machine Tools Ltd and TS Kisan and Co Private Ltd, are both Indian.

Report: MOD India Blacklists Six Defence Firms

DCNS Partners SEC Industries, Hyderabad

DCNS has signed a partnership sub-contract with SEC Industries, Hyderabad, for the manufacture of Scorpene submarine components. The deal is worth €50 million (approx Rs 310 crore).

This is a significant win for private sector manufacturer of key defence components. In addition to executing the contract, SEC Industries will benefit from the transfer of technology from the French company.

Read the Report: DCNS Partners SEC Industries, Hyderabad