$30 billion: Arms bill for five years

[KashifAsrar]

$30 billion: Arms bill for five years


Shopping List: 155-mm Howitzers, Multi-Role Fighter Jets, Advanced UAVs And More...

Rajat Pandit | TNN


New Delhi: From 155-mm artillery howitzers and multirole fighter jets to advanced UAVs (unmanned aerial vehicles) and third-generation night-fighting capabilities, the armed forces are looking to sign several mega defence deals over the next few years.
In keeping with this desperately needed thrust for modernisation, India plans to spend well over $30 billion (around Rs 140,000 crore) for acquisition of military hardware and software during the 11th Plan period (2007-2012).
India is already one of the largest defence importers in the world, spending as it did a staggering $6 billion on armament purchases just in 2004-2005. This when two other big buyers, Saudi Arabia and China, notched up defence deals valued between just $2-3 billion each during that year.
As per the projections in the 11th Defence Plan being finetuned by defence ministry, India’s defence expenditure will cross the notional ‘Laxman Rekha’ of 2.5% of GDP for the first time since the early 1990s. Pakistan and China, incidentally, spend over 4.5% of their GDPs on defence.
‘‘Though less than the 3% was demanded by armed forces, we expect the defence expenditure to reach 2.57% of GDP in the 11th Plan from the present 2.33%. We are looking at an overall 9% growth in defence expenditure,’’ said an official.
Estimates for the still-under way 10th Plan (2002-2007) show India would have spent almost Rs 120,000 crore for modernisation of its armed forces by the end of the 2006-2007 fiscal. ‘‘In the annual defence budget, around 60% is revenue expenditure (day-today costs), while 40% is the capital component (new procurements). We aim to make it 50-50 in the next few years to ensure more funds for modernisation,’’ he said.
It’s no wonder that defence minister Pranab Mukherjee has already declared that $10 billion (Rs 46,000-crore) would flow back into India for investment through ‘‘direct offsets’’ in defence deals during the 11th Plan period.
The new ‘‘offset’’ clause, introduced by the Defence Procurement Procedure-2005 for all defence deals over Rs 300 crore, ensures that any armament company which bags a large order will be obligated to invest 30% of the total value within India.
The 11th Plan will, of course, see the signing of the mother of all defence deals, the acquisition of 126 multirole combat aircraft, valued well over $6.5 billion, for IAF.
The Army, on its part, is desperate for its Rs 8,000-10,000-crore long-term artillery modernisation project to kick off, with the progressive induction of a large number of towed and self-propelled 155mm 52-calibre guns.
There is, of course, many a slip between the cup and the lip. The defence arena has been plagued by lack of proper long-term planning and inter-service prioritisation, coupled with absence of coordination with finance ministry. The armed forces are keeping their fingers crossed.

 

[himeed]

$30 billion: Arms bill for five years


Shopping List: 155-mm Howitzers, Multi-Role Fighter Jets, Advanced UAVs And More...

Rajat Pandit | TNN


New Delhi: From 155-mm artillery howitzers and multirole fighter jets to advanced UAVs (unmanned aerial vehicles) and third-generation night-fighting capabilities, the armed forces are looking to sign several mega defence deals over the next few years.
In keeping with this desperately needed thrust for modernisation, India plans to spend well over $30 billion (around Rs 140,000 crore) for acquisition of military hardware and software during the 11th Plan period (2007-2012).
India is already one of the largest defence importers in the world, spending as it did a staggering $6 billion on armament purchases just in 2004-2005. This when two other big buyers, Saudi Arabia and China, notched up defence deals valued between just $2-3 billion each during that year.
As per the projections in the 11th Defence Plan being finetuned by defence ministry, India’s defence expenditure will cross the notional ‘Laxman Rekha’ of 2.5% of GDP for the first time since the early 1990s. Pakistan and China, incidentally, spend over 4.5% of their GDPs on defence.
‘‘Though less than the 3% was demanded by armed forces, we expect the defence expenditure to reach 2.57% of GDP in the 11th Plan from the present 2.33%. We are looking at an overall 9% growth in defence expenditure,’’ said an official.
Estimates for the still-under way 10th Plan (2002-2007) show India would have spent almost Rs 120,000 crore for modernisation of its armed forces by the end of the 2006-2007 fiscal. ‘‘In the annual defence budget, around 60% is revenue expenditure (day-today costs), while 40% is the capital component (new procurements). We aim to make it 50-50 in the next few years to ensure more funds for modernisation,’’ he said.
It’s no wonder that defence minister Pranab Mukherjee has already declared that $10 billion (Rs 46,000-crore) would flow back into India for investment through ‘‘direct offsets’’ in defence deals during the 11th Plan period.
The new ‘‘offset’’ clause, introduced by the Defence Procurement Procedure-2005 for all defence deals over Rs 300 crore, ensures that any armament company which bags a large order will be obligated to invest 30% of the total value within India.
The 11th Plan will, of course, see the signing of the mother of all defence deals, the acquisition of 126 multirole combat aircraft, valued well over $6.5 billion, for IAF.
The Army, on its part, is desperate for its Rs 8,000-10,000-crore long-term artillery modernisation project to kick off, with the progressive induction of a large number of towed and self-propelled 155mm 52-calibre guns.
There is, of course, many a slip between the cup and the lip. The defence arena has been plagued by lack of proper long-term planning and inter-service prioritisation, coupled with absence of coordination with finance ministry. The armed forces are keeping their fingers crossed.

they havent written how much of that money will go to the babus...my guess is 29 Billion.

 

[Cheetah786]

Any idea when the indian air force going to sign that deal to buy 126 fighters.

 

[vnomad]

they havent written how much of that money will go to the babus...my guess is 29 Billion.

None. They might be responsible for delay but the details of expenditure are open to the public domain and every bit of it will be accounted for.

 

[Bull]

Any idea when the indian air force going to sign that deal to buy 126 fighters.

Tomorrow i guess

 

[Cheetah786]

Tomorrow i guess

I suppose you are right.so the above deal should be signed right after this one.cool way cool.

The WOLF IS COMING THE WOLF IS COMING.

 

[Neo]

Any idea when the indian air force going to sign that deal to buy 126 fighters.

The deal is expected in next 6 months as stated by some analysts.

 

[Janbaz]

The deal is expected in next 6 months as stated by some analysts.

I hope they go for the MIG 29 OVT.

 

[Adux]

F/A-18 Hornet

 

[Neo]

Any idea when the indian air force going to sign that deal to buy 126 fighters.

INDIA TO ISSUE TENDER FOR 126 FIGHTER JETS BY MID-2007

Tuesday, 6 February 2007
BANGALORE, India, Feb 6, 2007 (AFP) - India expects to float a tender by mid-2007 for 126 combat planes for its air force, a defence ministry official said Tuesday, a contract coveted by the giants of military aerospace worldwide.

The defence ministry and the air force are putting the finishing touches to the so-called request for proposals which will specify India's requirements and seek bids from potential suppliers, K.P. Singh, the secretary for defence production, told reporters in Bangalore Tuesday.

"It's a large procurement so the people who are involved in the matter have to do a lot of work tying up various loose ends," Singh said before the start of the five-day Bangalore air show Wednesday.
"I'm sure that in the next six months something will happen."

The deal, which may be worth as much as nine billion dollars, has been in the pipeline since mid-2006 as India sought to replace the air force's ageing fleet of MiG-21s.

Warplanes in the running for the contract include the F-18 and F-16 aircraft made by Boeing and Lockheed Martin respectively, Russia's MiG-29 and the Gripen, made by Sweden's Saab.

The European defence and aircraft group EADS has also pitched its Eurofighter, and Dassault of France its fourth-generation Rafale.

India, which has an annual defence budget of about 20 billion dollars, is trying to boost the quality of its armed forces to a level commensurate with its status as an emerging economic powerhouse.

The country is the largest arms purchaser among emerging nations.
Indian defence planners wanted the tender to be floated, after sufficient preparation, so that it would be "a job well done," said Singh, the senior civil servant who oversees military production.

"You don't want to find that something has been missed out or something isn't there" when the tender is finally floated, he said.

India has insisted that overseas companies share contracts that are bigger than 60 million dollars with local partners, a requirement Singh doesn't see as a hurdle to the deal.

The government required foreign defence suppliers to plough 30 percent of the value of defence deals to Indian companies, a condition that took effect last year with a contract given to an Israeli manufacturer, Singh said.

Indian companies were "second to none" in software, he said, and the country had "great strength" in avionics, which make up about 50 percent of the cost of a fighter plane.

http://www.ttc.org/200702061153.l16brrt13208.htm

 

[Neo]

LOCKHEED SWEETENS F-16 PITCH BY OFFERING INDIA EXTRA HARDWARE
Friday, 9 February 2007

BANGALORE, India, Feb 9, 2007 (AFP) - Lockheed Martin, the US maker of defence equipment, sweetened its pitch for the F-16 fighter plane by offering to sell India a range of additional military hardware Friday.

Lockheed Martin and other big US defence companies are at the Bangalore air show soliciting orders from a government that says boosting military firepower to ward off future threats is one of its "biggest agendas."

The P-3C maritime surveillance aircraft, C-130J tactical airlifter, MH-60R multi-role helicopter and PAC-3 air and missile defence system will help meet both present and anticipated Indian defence needs, Lockheed officials said at the Indian air show in Bangalore.

Bethesda-based Lockheed's F-16 is competing for a multi-billion-dollar Indian air force order for 126 multi-role fighter planes.

U.S. rival Boeing's F-18, the Rafale made by French Dassault, the Eurofighter and the Russian-built MiG-35 and MiG-29 are also in contention.
Orville Prins, Lockheed Martin's vice president of business development for India, estimated India's defence requirements at as much as 12 billion dollars and said local business will gain as well.

India requires foreign suppliers to plough back to local partners or invest in the country at least 30 percent of the value of military deals worth more than 60 million dollars.

"There will be significant value remaining in India," Prins told reporters, at the same time describing the clause as restrictive. "Indian industry will benefit."

Lockheed Martin has received orders from 24 nations for the F-16, 4,300 of which have been produced. The company said it will tailor the aircraft's capabilities to India's specifications.

By clubbing the order with purchases of other equipment, India will gain "superior effectiveness and affordability," Lockheed Martin said in a statement.

The P-3C Orion could address Indian surveillance demands while the C-130J Super Hercules is capable of precision operations in high-altitude, hot-temperature conditions. The airlifter is designed for both military operations and humanitarian relief missions.

India is the first country outside the United States to be offered the MH-60R helicopter, capable of anti-submarine warfare.

The US Navy is investing 700 million dollars in mission systems and pre-planned product improvements in the helicopter.

The "hit-to-kill" PAC-3 missile is built to meet threats from tactical ballistic and cruise missiles as well as aircraft.

US companies are trying to ride on the back of warming relations between India and the United States to win military orders.

The signing of a landmark deal last year will allow India access to US civil nuclear technology, barred since the country exploded a nuclear bomb in 1971.

India, a nation of 1.1 billion people that has been to war with China and Pakistan in the past, wants to strengthen its military to a level commensurate with its surging economy.

The Indian economy is expanding at an annual rate of nine percent, the fastest since the country's 1947 independence from British colonial rule.

Lockheed Martin's offer of a range of military equipment can play "an important role in the growing strategic relationship between India and the United States," said Royce Caplinger, vice president of Lockheed Martin's office in India.

http://www.ttc.org/200702091437.l19ebhk21221.htm

 

[vnomad]

Lockheed Martin will sell the additional equipment regardless of which way the MRCA swings.

 

[Cheetah786]

F/A-18 Hornet

i hope they do.this will be a smack in sold out pakistani generals.i love it.:army:

 

[Keysersoze]

Let's not kid ourselves here.....It's gonna be Russian.......

 

[blain2]

i hope they do.this will be a smack in sold out pakistani generals.i love it.:army:

How so please explain? Pakistan is ok with arms going to India as long as Pakistan gets what it wants...simple as that. As long as the double standards do not prevail, India can buy F/A-22 and Pakistan would not be bothered.

This has been expounded upon by none other than the former Chief of the Pakistan Army Gen Jehangir Karamat.

By buying so much, in the long run, India also exposes itself to massive Chinese spending on arms as the Chinese may view many of these purchases China-specific (regardless of how India may view them). For Pakistan, the smart thing to do is to invest in key capabilities and not get bogged down by each and every Indian purchase. That would be the logical thing to do for Pakistan.