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Lockheed Martin looks to set up electro-optical sensor partnership in India



Lockheed Martin is in talks with Indian company Vem Technologies about a partnership to produce sensors, a spokesperson from the US corporation has confirmed to IHS Jane's.

The partnership is geared towards producing and integrating electro-optical sensors that could support Indian military applications related to intelligence, surveillance, and reconnaissance missions.

The Lockheed Martin spokesperson said discussions between the two companies are taking place about the partnership but did not elaborate.

Based in Hyderabad, Vem Technologies' website indicates that the partnership would be focused on gyrocam surveillance systems, which it is already produces for military and homeland security applications.

The talks on the industrial partnership follow a recent decision by the government of Andhra Pradesh to allot 350 acres of land to Vem Technologies to establish facilities for defence production and systems integration activities.

Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options ihs.com/contact

http://www.janes.com/article/63179/...p-electro-optical-sensor-partnership-in-india
 

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Ashok Leyland joins hands with Lockheed Martin to cater defence logistics requirements

Lockheed will provide the base platform for this development

BS Reporter | Chennai March 22, 2016 Last Updated at 16:05 IST


Ashok Leyland Defence Systems (ALDS), has selected US global security and aerospace company Lockheed Martin, for pursuit of its Indian Armed Forces Light Specialist Vehicle (LSV) and Light Armored Multipurpose (LAM) vehicle programmes.

Lockheed Martin’s High Mobility Vehicle or Common Vehicle Next Generation (CVNG) will provide the base platform for this development effort, according to company's release.

Ashok Leyland, flagship of the Hinduja Group, will serve as the prime contractor, and provide a will cater to global requirements of these vehicles and variants.

“As a licensed manufacturer of the CVNG, this opens up a huge opportunity for ALDS to globally export this vehicle platform and its variants as a Made in India product,” said the company.

Vinod K Dasari, managing director, Ashok Leyland, said: "As the largest provider of logistics vehicles to the Indian Army, Ashok Leyland has a strong portfolio in the defence sector.This partnership will not just further India’s ambitions under the ‘Make in India’ program, but help us provide robust and meaningful solutions to armed forces across new domains and geographies. We are buoyant about the defense segment, and expect our play to increase manifold.”

Scott Greene, vice-president of ground vehicles for Lockheed Martin Missiles and Fire Control added company's CVNG is a proven and versatile multi-terrain vehicle currently in service around the world.

Nitin Seth, president LCV and defence at Ashok Leyland added a combination of their technical expertise and Ashok Leyland's vehicle platforms, will enable us to offer versatile solutions to armed forces across segments.

Ashok Leyland is one of the major suppliers of mobility solutions to the Indian Army. With a host of proven products currently in service with the Indian Army. The company is looking to expand its portfolio into areas of need for the Indian Armed Forces.

http://www.business-standard.com/ar...ce-logistics-requirements-116032200589_1.html
 
Aug 3, 2016
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Defence opens avenues for private firms
By Express News Service

Published: 21st August 2016 07:01 AM

Last Updated: 21st August 2016 07:01 AM


BHUBANESWAR: The Indian Army has opened up part of its procurement to Indian companies in line with the Make in India initiative of the Central Government. Now, it wants to procure defence equipment and products from Indian companies, Lt General Subrata Saha said.

Saha was in the city to interact with the industry captains and companies who have evinced interest in taking up defence contracts.

The event was organised by Chamber of Indian Industry (CII), Odisha.

Saha, who is also the Deputy Chief of Army Staff (planning and systems), said the revised Defence Procurement Procedure (DPP), 2016 is in line with the Government’s Make in India initiative which encourages indigenous design, development and production of defence-related equipment.

Of 40 billion dollar defence budget, 40 per cent goes into capital procurement. Out of the rest budget amounting to USD 16 billion, products worth USD 10 billion are imported and USD 6 billion worth defence products and equipment are procured from defence PSUs like the DRDO, HAL and ordinance factories.

With the new provisions in the DPP, Indian companies can now participate in import segment, Saha said.

“We have good capability at home to develop necessary equipment. Products designed, developed and manufactured in India will have the highest priority. This October, a defence fair will be held at Air Defence College in Gopalpur to exhibit the product and requirements of the Indian Army,” he added.

The Army has been using industry associations’ interfaces to connect directly with the industry. It is now engaging the private players after the Defence Ministry revised the procurement procedure.

The Army, through a series of direct industry programmes, wants Indian firms to come up, he added.

The newly set up Army Design Bureau is handling the affairs of encouraging and scrutinising Indian players for this purpose.

Prior to this, similar interactive sessions were conducted at Ahmednagar, Coimbatore and Bangalore.
http://www.newindianexpress.com/sta...r-private-firms/2016/08/21/article3589726.ece

Punj Lloyd set to ink Rs 670-cr deal to upgrade army’s Soviet-era guns
  • Rahul Singh, Hindustan Times, NEW DELHI
    |
  • Updated: Aug 10, 2016 22:08 IST

Punj Lloyd emerged as the lowest bidder for the contract last year, beating off competition from state-run Bharat Electronics Ltd.



The government is in the final stages of awarding a Rs 670-crore contract to Punj Lloyd for upgrading the army’s ageing Zu-23-2B anti-aircraft guns, capable of engaging both aerial and ground targets.

The firm has partnered with Slovakian defence company EVPU to convert the mechanical Soviet-era gun, developed in the late 1950s, into an automatic system. The plan is to upgrade 468 guns.

Ashok Wadhawan, who heads manufacturing for Punj Lloyd, told HT that the deal was on the verge of being inked and the guns would be upgraded over a period of four years. The contract covers maintenance of the guns for 15 years.

Punj Lloyd emerged as the lowest bidder for the contract last year, beating off competition from state-run Bharat Electronics Ltd.

Larsen and Toubro (L&T), Tata Power SED and Alpha Design Technology also competed for the order, but were knocked out of competition in the early stage.

“The contract is not a big one, but it will help us build capabilities at our Malanpur plant in Madhya Pradesh,” Wadhawan said.


The existing guns will be upgraded with an electro-optical fire control system for detecting, tracking and engaging targets with precision. The modified guns would have all-weather day/night capability.

The firm is also competing for a Rs 1,500-crore contract to upgrade the army’s vintage 130mm M-46 artillery guns to 155mm standard – 155 mm denotes the diameter of the shell.

“The up-gunning will increase the gun’s range and its ability to deliver heavier explosives to cause greater destruction. The upgrade should have happened by now. We are running behind schedule,” said former army chief General Deepak Kapoor, an artillery officer.

Punj Lloyd has partnered with Serbian firm Yugo Import for the programme. Its competitors include Ordnance Factory Board and Bharat Forge.

The 130 mm gun has a range of 27 km. The upgrade will increase the gun’s range by 34%, enhance its terminal effectiveness by 260% and enlarge the lethal area by 330%. The army has completed summer trials and is gearing up to test the systems on offer in winter.

Wadhawan said Punj Lloyd was also preparing to take part in a tender to provide a replacement for L-70/Zu-23-2B guns, a Make in India project worth nearly Rs 17,000 crore.

Strategic affairs expert Brigadier Gurmeet Kanwal (retd) said the army’s air defence capabilities needed to be scaled up swiftly and the L-70/Zu-23-2B replacement programme was a crucial one.


http://www.hindustantimes.com/india...et-era-guns/story-X1CDJlULQjH8tEtPla4z8K.html
 

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India will be a major defence and aerospace hub in 10-15 years: RR Deshpande, Joint MD, Kirloskar Oil Engines

April 18, 2016 Posted by Anupama Airy
By Anupama Airy

The Indian Industry has never been this excited before. The New DOP Policy has provided s new lease of life to the industry that is ready to invest heavily in the sector in line with the government’s Make in Zindia initiative.

DefenceAviationPost.com spoke to Rajendra RDeshpande, who is the Joint Managing Director at Kirloskar Oil Engines Limited (KOEL) and has a career spanning 39 years with KOEL, where he started as a management trainee and rose to the level of Joint Managing Director.

Excerpts of the Interview With R R Deshpande, Kirloskar Oil Engines Ltd

Q: The new DPP gives a fresh impetus to indigenous defence production and requirements. Give us an industry perspective of the journey ahead for large players like yours. How does this help the industry’s growth in general and your company’s growth in particular?
A: The introduction of IDDP (or the India Designed, Developed and Manufactured) is indeed a welcome move. Indigenous defence production will definitely give boost to Indian industry that in turn will help in catering not only to the domestic market but also in emerging as a global player in defence products. This will also boost up our exports. Some features like Strategic Partners ( SPs) will enable company like ours to put focused efforts in developing technology in-house and to make investments in assets and manpower.
The priority that the new DPP accords to locally made equipment manufacturers besides funding private sector research and development (R&D) in defence is noteworth. It also provided Level Playing field’ to all the industries. Companies who are ready to develop / invest for import substitute products are expected to get some business preference / assurance.

Q: More than 50MoUs have been signed by the government, close to 400 new licenses have been issued to the industry. Corporates like yours and others already have manufacturing facilities matching global standards. How do you view India’s Defence manufacturing scenario shaping up in the coming times?
A: Looking at the momentum this initiative has taken, and the response, India could well become a major defence and aerospace manufacturing hub in next 10 to 15 years.

Q: What as per you would be the role of small players essentially MSMEs vis-a-vis established players like yours. How can your company help these small players by involving them in your logistics chain?
A: Though MSMEs have talent and potential to manufacture the components / products, they lack in having design strength or sometimes limitation in financing the development projects. Such companies can play a role of our supplier partner for development of end equipment.

Q: The Role of DPSUs and DRDO is often under debate. How do you see public and private players together delivering what the country needs and on the PPP model.
A: The DPSU’s have huge infrastructures but under-utilized. Private players have their own processes in place and so also the speed of execution. I think, Public and Private organisations, by way of complimenting each other’s strengths, can gallop on the path of self-reliance for ‘Make in India’

Q: Your comments on the User-Industry meets that have been initiated by the Army Procurement team for the first time to understand the capabilities of the industry and give an understanding of their requirements.
A: This is an excellent initiative. This will help Army Procurement Team to understand and witness inherent strengths and capabilities of Indian Private Sector. This will also enable to have clear and transparent communication and will shorten the development time.

Q: What are you showcasing at the DefExpo? Tell us a bit on your product line and how equipped is your company to meet the country’s Defence requirements. Especially in line with govt’s perspective of reversing 70% of our imports to 70% of localisation going ahead.
A: KOEL is serving country’s Defence sector since last three decades. More than 1,50,000 engines / gensets are operational across our LoC. Understanding the changing needs of Defence, KOEL team is working on many innovative products, Compact DG sets, Propulsion engines , Marine DG sets, which we will be showcasing in this DefExpo. Our main theme is ’Innovation for the Nation’

Q: How about new investments by Kirloskar Engines in terms of new manufacturing facilities for defence. Any new tie ups planned for specific category of equipments?
A: KOEL takes pride in partnering with defence in development of many Indigenous products. Now many new initiatives are been taken to meet forthcoming defence requirements. Focus is to provide Indigenous solutions to defence especially in the area of powering various defence equipments like radar systems, communication systems, repowering of vehicles and Main battle tanks ( BMP), high horse power propulsion engines and Marine gensets.


http://defenceaviationpost.com/watc...r-r-deshpande-joint-md-kirloskar-oil-engines/
 
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M&M"s arm bags a contract from Airbus Helicopters

Mahindra Aerostructures, a subsidiary of Mahindra & Mahindra, has received a contract from Airbus Helicopters to make airframe parts for the AS565 MBe Panther. These parts will be produced at the Mahindra facility in Bengaluru. They will be shipped directly to the Airbus Helicopter production line in Marignane, France where they will be integrated with the rest of the airframe assembly and will form a critical part of the Panthers sold worldwide.

The contract positions Mahindra Aerostructures as the first Indian company to receive a direct manufacturing contract from Airbus Helicopters as a Tier 1 supplier. Mahindra Aerostructures will gradually emerge as the global single source supplier to Airbus Helicopters for these parts. This work package is the first amongst a series of work packages which would embed Mahindra Group firmly in the Airbus Helicopters’ global supply chain and bind the two companies in a long-term 'Make in India' partnership.

Mahindra Aerospace has led the Mahindra Group's foray into utility aircraft and aerostructure manufacturing since 2008. Its utility aircraft business, based in Australia, currently produces the Airvan 8, the most capable, rugged and versatile utility aircraft in its class. Certified in more than 30 countries, over 220 are in service. Mahindra Aerospace is also developing a next-gen 10-seat turboprop, the Airvan 10.

http://money.livemint.com/news/comp...-contract-from-airbus-helicopters-470477.aspx

M&M, Airbus in chopper pact

http://www.telegraphindia.com/1150704/jsp/business/story_29472.jsp#.V8WNM_l961s



 

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Bell teams with Tata Advanced Systems Limited for helicopters

Bell Helicopters aims to develop, produce helicopters in India.
By Richard Tomkins | July 19, 2016 at 1:18 PM

HYDERABAD, India, July 19 (UPI) -- Bell Helicopter and Tata Advanced Systems Limited have teamed to develop light utility and reconnaissance helicopters in India.

The aircraft will be for civilian and government/military sectors.

Potential production and assembly capabilities, certain training and maintenance, and repair and overhaul requirements are covered under the agreement as well as research and development programs and technology sharing.

"TASL's alliance with Bell Helicopter is significant because of our shared synergies; our defense manufacturing capabilities and focus on innovation are well aligned with Bell Helicopter's core competence," said S. Ramadorai, chairman of Tata Advanced Systems Ltd. "This will build on the partnerships that TASL already has in the rotorcraft market allowing it to offer a full range of products to potential customers."

"TASL has been a leader in driving industrial growth in India, and its organization ideally complements Bell Helicopter both in terms of innovative thinking, manufacturing capability and a commitment to business ethics, integrity and customer satisfaction," said Mitch Snyder, president and chief executive officer Bell Helicopter.

"We are honored to build on our relationship with TASL to leverage its experience and knowledge to customize, integrate and manufacture specific local Bell Helicopter solutions for India."

http://www.upi.com/Business_News/Se...Indian-company-for-helicopters/2331468944636/
 
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Aug 3, 2016
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India's defence industry needs private players
India currently imports 70 per cent of its armament needs. Indigenised aircraft are the need of the hour

The HJT-16 'Sitara' Intermediate Jet Trainer (IJT) was to herald a truly Made in India aircraft in the IAF's stable.

It had been showcased in the Paris Airshow in 2005, and some analysts wrote in December 2013 that it was 'weeks away from certification.'

Alas, this was too good to be true, as the Defence Minister's recent statement in Parliament confirmed.

"Hindustan Aeronautics Limited, which has been developing the Intermediate Jet Trainer as a replacement for the Kiran aircraft, has not so far been able to resolve critical wing and airframe design and development issues...In order to meet the emergent situation… IAF has already initiated the process for extending the technical life of the Kiran aircraft….(and) also initiated action to look for alternate options for the IJT."

This statement has virtually put a lid on the Rs 600 crore plus project, paid for out of the national budget.

Indigenisation

This year's Budget generated a flurry of articles about the miniscule 2 per cent increase in allocation towards defence.

Added to this, the first meeting of the Defence Acquisition Council under the new Government, on July 19, was looked forward to with interest as analysts sought to find out "What new path would the decisions of the DAC point towards?"

In the event, the clearing of proposals worth Rs 21,000 crore by the DAC was a routine affair, but what was of significance was the decision to permit the Avro replacement project to proceed as per a modified process that signifies a departure from steps laid down in the Defence Procurement Procedure (DPP).

Why is this significant? What will be achieved by this decision, which some believe is necessary to get the private sector into the Indian defence market.

There are those questioning the decision too, calling it a waste of money for an acquisition they feel the IAF does not need. But first, let us remind ourselves about the shameful tag India sports of being the largest importer of arms in the world.

Despite boasting of 52 Research and Development (R&D) labs, eight ordnance factories and nine Defence Public Sector Undertakings (DPSU) we import 70 per cent of our armament needs.

Men like Dr Kelkar, and Rama Rao have lent their names to committees tasked with suggesting remedial measures to indigenise our defence requirements, but their reports are gathering dust in some cupboard in the Ministry of Defence.

Quagmire

To get out of the quagmire the IAF thought up a novel strategy to get modern aviation technology in to the country by getting out of the clutches of the DPSUs, in this case Hindustan Aeronautics Ltd (HAL).

As per the Request for Proposal (RFP) floated for the Avro replacement, the foreign manufacturer would be free to choose its partner from the Indian private industry to whom it would have to transfer specified technology.

The RFP spelt out in detail the financial and engineering attributes required in the Indian partner to avoid fly by night operators stepping in.

The fail-safe strategy of nominating HAL as the Indian Production Agency was dispensed with. This was the norm over decades, resulting in production backlogs, some reaching almost two decades.

The aim of keeping out HAL was the belief that Indian entrepreneurs would rise to the occasion and ensure foreign vendors would transfer the promised technology.

But why is this special dispensation for the Avro replacement when HAL is supposed to make a Medium Transport Aircraft (MTA) along with the Russians by 2022?

Well, the fact is for the next two decades or so there will be no big aircraft procurement by the Services. The IAF is acquiring more Su 30s and the Rafale, the C-17s and C-130 transport aircraft deals are on track and in the helicopter field the Mi 17 V5s have arrived and the Apache and Chinooks selected.

Support

So, there is no way that the private industry can enter into the defence aviation sector other than through the Avro replacement project. The Qualitative Requirements for the proposed project are simple as the capability requires calls for carriage of passengers and cargo, a rear ramp for bigger loads and vehicles and paradrop capability.

Other than these, all QRs are run-of-the-mill things which all modern transport aircraft easily sport.

The truth is, no Indian private player has the capability to manufacture this transport aircraft and the only way out is to permit it to absorb technology from a foreign vendor and get a domestic industry, other than HAL, started.

A question some 'analysts' are asking is why the Avro replacement aircraft when HAL and the Council for Scientific and Industrial Research have embarked on a project to make the 70-90 seater Regional Transport Aircraft (RTA).

Here, one needs to speak the blunt truth, which is that many in the Indian aviation industry make tall claims and get projects sanctioned, sinking public money in the bargain, but nothing comes out from the stables.

HAL, NAL and CSIR should first make a simple aircraft like their long-delayed (started in 1991) 14-seater Light Transport Aircraft, Saras, operational and then aim for something big like the RTA - otherwise it too will land up like other Government projects (including Saras) which gobble up monies without anyone held accountable. HAL's Intermediate Jet Trainer is the latest example.

It is in India's interests that the Avro replacement project succeeds. The private sector must now rise to the occasion. The Government too has its task cut out, as no foreign or domestic manufacturer will set up shop for just 40 aircraft to be made in the country.

Sale of the aircraft in the civil sector and its export, without any strings attached, would have to be permitted and tax exemptions with incentives granted to make the project viable. This has to be taken up as a national endeavour with bipartisan support otherwise we will be condemned to do what we have been best at till now – import.



Read more: http://www.dailymail.co.uk/indiahom...stry-needs-private-players.html#ixzz4Ip7ZARzO
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Boeing, Tata to make fuselage of Apache copter near Hyderabad

THE HANS INDIA | Jun 19,2016 , 02:22 AM IST


Parrikar lays foundation stone unit at Adibatla

Hyderabad: Boeing and Tata Advanced Systems Limited (TASL) have joined hands to set up a facility in Hyderabad to co-produce Boeing AH-64 Apache helicopter fuselages and other aero structures. Defence Minister Manohar Parrikar on Saturday laid the foundation stone of Tata Boeing Aerospace Limited (TBAL) at the aerospace SEZ at Adibatla on the outskirts of Hyderabad.

The facility will also deal in integrated systems in aerospace and will eventually be the sole producer of AH-64 fuselage globally. The AH-64 Apache is the world's most advanced multi-role combat helicopter and used by the US forces as well as many other countries. The Indian Air Force is to purchase 22 machines.

Speaking on the occasion, Parrikar said that Narendra Modi-led NDA government has allowed foreign direct investment (FD) in defence equipment manufacturing. "Tata-Boeing Aerospace unit is part of reforms NDA government has taken for strengthening defence sector. This unit will be a big push for 'Make in India' programme,” he said.

TASL, a wholly-owned subsidiary of Tata Sons, is already on contract to manufacture aero-structures for Boeing's CH-47 heavy-lift Chinook and AH-6 light attack helicopters. Parrikar noted that Boeing had kept its word to him at the concluding of the Apache and Chinook deals last year.

“They had promised that this particular facility will be located in India and they will be shifting it from the place where they have the facility," he said.

Boeing and Tata had last year announced a joint venture for manufacturing aero-structures and collaboration on integrated systems development opportunities in India. This joint venture will create a manufacturing centre of excellence to produce aero-structures for the AH-64 Apache and provide affordable manufacturing capabilities to the global aerospace industry.

Dave Koopersmith, Boeing's Vice-President, Vertical Lift, said Indian industry was providing critical support to Boeing commercial and defence programmes.

The company recently partnered with universities and scientific institutions across India which would not only enhance aerospace and defence development capabilities but to create engineering talent, he said. Boeing India President Pratyush Kumar said the company had doubled its procurement from India since last year to almost Rs 10 crore per day and planned to continue doing this.

http://www.thehansindia.com/posts/i...selage-of-Apache-copter-near-Hyderabad/236136
 
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Tata Advanced Systems tying up with Bell Helicopter to compete for $2-billion naval chopper contract

NEW DELHI: Looking to consolidate its position as a leader in the Indian defence aviation industry, Tata Advanced Systems is tying up with Bell Helicopter of the US to compete against the Mahindra-Airbus combination for a $2-billion naval chopper manufacturing contract.

The mega contract for 100 utility helicopters to be operated from warships will be awarded as a 'Make in India' project. Tata will form a joint venture with Bell to bid for the contract under existing foreign direct ..

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Tata Group aerospace and defence revenues estimated at Rs 2,650 crore in FY2016

March 16, 2016 17:00 IST
By Kalyani Pandey

Tata Group earns revenue worth Rs 2,650 crore from defence & aerospace. In Picture: High Mobility truck [Representational Image]en.wikipedia.org

The Tata Group's aerospace and defence (A&D) revenues are expected to reach about Rs 2,650 crore in the current financial year. This would mean an increase of 7.5 percent from last year.

In five years, the group's A&D sector has grown at a compound rate of 18 percent, Mukund Rajan, member group executive council and custodian of Tata Sons, was quoted as saying by the Economic Times.
Some of the Tata Group companies such as Tata Motors, Tata Consultancy Services, Tata Power, Tata Technologies and Tata Steel, and Tata Advanced Systems Limited and its subsidiary Tata Advanced Materials provide support to India's A&D sector.

In January, Tata Motors received an order from the Indian Army for the purchase of 619 new high mobility trucks valued at approximately Rs 350 crore. The trucks are to be designed for extreme missions, including carrying heavy weaponry load from the deserts of Rajasthan to icy terrains in Ladakh.

Tata Motors, Bharat Forge and General Dynamics formed an alliance to bid for building infantry vehicles, which will be supplied to the Indian Army under the Future Infantry Combat Vehicle (FICV) programme. The project was worth Rs 78,000 crore. With Tata Motors and Bharat Forge joining hands, the number of bidders for the army contract reduced to nine last month, Business Standard reported.

Tata Motors Ltd stock closed at Rs 359.85 Wednesday, down 0.22 percent from its previous close.

http://www.ibtimes.co.in/tata-group...rs-2650-crore-aerospace-defence-sector-670943
 
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India’s security needs call for serious private participants
Given India’s geo-strategic realities, its burgeoning defence needs are only likely to grow

Sundeep Khanna
reported in April this year, since October 2015, when the Department of Industrial Policy and Promotion (DIPP) granted permission to 19 private companies to manufacture defence products such as simulators, there seems to be a rush to announce plans for manufacturing defence equipment. Companies ranging from Himachal Futuristic Communications Ltd (HFCL) and Ananth Technologies Ltd, to more familiar names like Titagarh Wagons Ltd, Taneja Aerospace and Aviation Ltd, Punj Lloyd Aviation Ltd, Bharati Shipyard Ltd, Ashok Leyland Defence Systems Ltd and big, established ones like Bharat Forge Ltd (BFL), Reliance Industries Ltd (RIL), Tata Group, Larsen and Toubro Ltd (L&T) and the Mahindra Group, have all thrown their hat into the ring. The Anil Ambani Group and the Adani Group are the latest to enter the race.

For these Indian companies, queuing up for a lucrative new business, there is the promise of the vast domestic market as well as a global market in which defence equipment is a recession-proof play. The world defence market climbed to $65 billion in 2015, up $6.6 billion from 2014, consulting company IHS Inc. said in its Global Defence Trade Report. That’s the largest yearly increase in the past decade. In Asia, countries bordering the South China Sea have raised their defence spending by 71% since 2009 on purchases such as that of aircraft and anti-ship missiles, in an effort to counter China’s aggressive intent in the region.

What’s more, over time, expertise in defence leads to the building of capabilities in frontier areas of technology like AI and robotics which in turn fuel advances in medicine. For any company that builds domain expertise in a business like defence, the spin-off benefits are also enormous. Over the years, as Israel developed capabilities in defence electronics, it has also built a reputation in areas such as medical equipment, digital communication and advanced agricultural technologies.

And yet there will be worries at the rash of entrants signing up for a piece of this action. A quick entry with the intention of an equally quick cash-out and exit can, in the long run, actually hurt India’s security. There’s a strong chance most of the Indian companies that have rushed to get into the fray will not be around 10 years from now. Either the demands for capital that a business like this makes or the inability to manage its vicissitudes will ensure that.

Only companies that have the patience and the resilience to build capabilities and stay the course will be successful, besides answering India’s needs for indigenously manufactured equipment. That calls for the kind of rapid absorption of technology and upscaling of expertise that Bharti Airtel, which started the business in collaboration with Singapore Telecom, has shown. Coupled with that is the need to own the entire value chain much like Reliance Industries did with its ownership of the upstream and downstream petroleum business. Building a lasting business from scratch isn’t about being opportunistic but about being visionary and having the commitment to stay invested for the long haul.

It isn’t going to be easy for Indian firms. Data from think tank Stockholm International Peace Research Institute (SIPRI) shows that the defence industry continues to be dominated by companies based in the US and Western Europe, with firms from these areas taking up the top 10 positions on the list of the biggest arms makers. The largest weapons manufacturer in the world, Lockheed Martin, which makes fighter aircraft such as the C-130 Hercules and the fifth generation F-35 Lightening II, receives nearly 10% of the Pentagon’s funds as the largest US government contractor.

Creating such a powerhouse in India is crucial to its long-term security needs. But it isn’t going to be easy and is made doubly difficult if too many fly-by-night operators get into the business.


http://www.livemint.com/Opinion/te6...ds-call-for-serious-private-participants.html

India Gets its Guns
Posted on August 15, 2016By Neeta LalEconomics/Business, Headline, India




Red carpet for global small arms manufacturers


Driven partly by its developing rivalry with China, India is welcoming global gun manufacturers to set up shop to produce small arms including handguns, rifles, carbines, sub-machine guns, light machine guns and grenade launchers.

New investment rules allow private players to establish manufacturing units, sell to Indian defense forces and even cater to export orders. Forty-nine per cent foreign ownership will be permitted automatically but up to 100 percent FDI can be allowed if “modern technology”’ is used to manufacture indigenously. Top global manufacturers including Colt’s Manufacturing Co., Heckler & Koch and Israeli Weapon Industry and others have already huddled with Indian companies to establish synergies and gain a foothold in the sector.


Punj Lloyd Ltd has already established a 51-49 joint venture with IWI, a longtime supplier to the Indian security forces. This October, the company will set up a small arms factory in Malanpur in the central Indian state of Madhya Pradesh for assault rifles and submachine guns in collaboration with IWI, a first for the country.

Although internal security threats are a worry along with the fact that local manufacturers are handicapped by red tape, China’s increasing bellicosity is major reason for India to become the world’s largest weapons importers according to latest report of the Stockholm International Peace Research Institute. The report adds that China – the world’s third largest arms exporter – sold most of its weapons to India’s neighbors, further fuelling the latter’s insecurity.

The China-Pakistan nexus is another headache for India. It has led to Beijing’s heightened involvement in the disputed Kashmir region, making New Delhi view the situation as a conjoined threat to its security.

The current policy changes in the sensitive defence sector are being projected as a win-win for the country’s underserviced defence sector as well private players. However, the latter remain cautiously optimistic of the government’s move. Underpinning their scepticism is Modi’s Make in India drive, which seeks to transform India into a global manufacturing hub, but which they say has yet to show any tangible or meaningful technology buildup in the country. However, they have their fingers crossed that a similar disenchantment isn’t awaiting them.

Under the new directives, for the first time foreign and private sector companies will be able to manufacture small arms and ammunition in India. Facilitating their task further will be a recent revision in the Arms Rules 2016, modified by the government last month, which gives clear instructions to private companies on how they can set up businesses, sell small arms and bring in foreign investment.

According to a defence ministry source, Indian companies will be granted a seven-year license after vetting to set up units in special economic zones. “The arms manufactured will also be allowed for export subject to the approval of the Ministry of Home Affairs in consultation with the Ministry of External Affairs, Ministry of Defense and Ministry of Commerce, on a case-by-case basis,” he added.

This liberalization, defense analysts say, marks a refreshing change from an earlier era when small arms manufacturing was a state monopoly and private players were barred from entering the fray. This resulted in resource-crunched and undercapitalized private companies struggling to keep pace with exponential demand from the country’s three armed forces, paramilitary forces and the state police.

“The earlier restrictive policies and the structure of the industry constrained domestic defense production with only 30 percent of the demand being met internally. The participation of private sector is even lower at about 10 percent,” said Jayant Rathi, a defense consultant with the Reliance Group.

These deficiencies, Rathi said, result in small arms being imported routinely at a staggering cost to the state exchequer. As part of the Indian Army’s “Future Infantry Soldier as a System” 2020 program India will pay an estimated US$10 billion to acquire small and medium arms from countries like Israel, Germany, Switzerland and the US over the next four years.

However, rising discontent among the armed forces about the limited availability of weapons and their inferior quality, and pressure from private companies to allow them entry into the sector over the years, resulted in the government allowing private participation in 2001. Companies like Punj Lloyd, L&T and Bharat Forge were granted licenses by the Department of Industrial Policy and Production to set up bases. However, delays and bureaucratic non-clearances scuppered progress.

According to a senior bureaucrat in the defense ministry, the biggest bottleneck confronting the private players is the multiplicity of government agencies involved in the procurement process. “Each government department has its own set of convoluted rules and procurement processes which seem designed to exasperate entrepreneurs. The harassment multiplies manifold if foreign companies are involved in deals due to the lure of kickbacks. This is really frustrating for companies who just want to get on with the task of earning legitimate profits.”

Experts say that though historically India has always preferred the public sector over private in defense production, changing geopolitical and military dynamics have forced a rethink. The Modi government is now looking for synergies and collaboration with defense production giants, especially from the west. For the latter, buffeted by a volatile economic climate, India remains an alluring prospect.

Given the current nationalist government’s thrust on indigenization and job generation, private companies are hoping that the new initiatives will help them cater to not just domestic demand but also enter the regional export market in a significant manner.

“The government is very clear and focused in its vision for the defense sector. Indigenization of the industry and acquiring advanced technologies will help in minimizing the country’s dependence on imports,” a senior defense ministry official told Asia Sentinel. “It will create the desired ripple effect that we’re hoping to initiate in the sector.”

http://www.asiasentinel.com/econ-business/india-gets-guns/
 

proud_indian

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@Feroz Alam Khan

You have started a great thread contains a lot of information regarding Private sector's involvement in Defence sector and Military industrial complex.
So the onus is on you to keep it updated regularly with relevant news and information.
 
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@Feroz Alam Khan

You have started a great thread contains a lot of information regarding Private sector's involvement in Defence sector and Military industrial complex.
So the onus is on you to keep it updated regularly with relevant news and information.
@proud_indian Thanks a lot for your appreciation and endorsement ..... it was your post that gave me an idea to have it. Kindly can you tag all other Indians as well for an invitation to this thread..... as I am new to the forum and don't know how to do it.....

Thanks for your wonderful contribution. Regards. @PARIKRAMA , if you can help , as always.
 

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