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A Long To-Do List for Manohar Parrikar, Defence Minister

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A Long To-Do List for Manohar Parrikar, Defence Minister

: India's new Defence Minister Manohar Gopalkrishna Prabhu Parrikar, today walks into an office with a long to-do list waiting on the table.

The 58-year-old metallurgy graduate from IIT, Bombay, has to fix a woefully outdated weapons system and will have to weed out corruption that regularly plagues defence contracts in the country.

India's servicemen face shortages of everything from ammunition to fighter jets and submarines as the country seeks to close the gap with assertive neighbour China, which is arming itself quickly.

The Indian Air Force needs at least 39 squadrons of fighter planes but has only 32, and its chief said recently that the country can't afford any more hold ups of a $22 billion fighter jet deal with French company Dassault Aviation for the supply of 126 Rafale fighters.

The Indian Army needs artillery guns. Desperately. India has not bought artillery guns since 1987. Also, two newly raised Mountain Strike Corps - designed to thwart Chinese advances into India through the Himalayas -


need light artillery guns that can be easily moved around in the mountains. Just modernising the artillery will cost an estimated Rs. 30,000 crore.



The Navy requires submarines immediately. It also needs at least a 100 Naval Multi-Role Helicopters and additional Naval Utility Helicopters. Total cost, Rs. 70,000 to 80,000 crore.

Last year, India could afford to spend only about Rs. 86000 crore as capital expenditure. Mr Parrikar, therefore, has to not just prioritise demands, but also convince the Union Cabinet to loosen its purse strings.

The biggest challenge that he faces is fulfilling Prime Minister Narendra Modi's "make in India" dream.

In the last few months, the Defence Ministry has turned down almost all proposals to buy equipment from foreign manufacturers.

New Delhi wants the Indian private sector to acquire technology from foreign companies and set up joint ventures or JVs in India. Foreign manufacturers have also been allowed to own as much as 49 per cent in such JVs.

Former Chairman of Integrated Defence Staff, Admiral Shekhar Sinha says to make it economically viable for foreign weapons manufacturers to invest in India, the country will have to allow them to export from India.

Also, he says, a limit on how much they can invest in the JVs may not be conducive for transfer of critical technology to Indian companies.

Both will require changes in the law.
Story First Published: November 10, 2014 10:56 IST


A Long To-Do List for Manohar Parrikar, Defence Minister

A look inside the shopping list of Defence Minister Manohar Parrikar
Dailybhaskar.com | Nov 10, 2014, 20:15PM IST

NEW DELHI








New Delhi: On Sunday, Manohar Parrikar was appointed as the Defence Minister of India after taking oath during the cabinet expansion of Prime Minister Narendra Modi's cabinet.

Apart from addressing the issue of frequent ceasefire violations, threat imposed by various extremists groups, threats from In-house anti-national groups, Parrikar has the responsibility of modernising the third largest army in the world.

Of late, Indian Armed Force have been ailing from various deficiencies- obsolete weapons, lack of spare parts and delay in acquisition deals have been some of the crucial factors that have become a stumbling block in the road to becoming a complete military power.

In the last couple of years, several defence acquisition programmes had to be stalled for one reason or another. A case in example, INS Vikramaditya could only join the Indian Navy after a long period of 10 long years.

The deal to buy 126 multi-role Rafale fighter jets has been pending for quite some time. A decision on the same is not expected any earlier than March next year. The contract hit a roadblock after French firm, Dassault Aviations, hiked the cost by as much as 100%. A shortage of fund, forced the then Indian government to postpone the purchase till the allotment of next budget.

Last month, the Defence Acquisition Council (DAC) cleared proposals worth Rs. 80,000 crore to bolster the ailing defence sector.

Clearing the procurement, Defence Minister Arun Jaitley told reporters, "National security is of paramount concern for the government and all hurdles and bottlenecks in the procurement process should be addressed expeditiously."

Amongst the proposal was the plan to make six submarines in India for the Indian Navy. The decision was taken in-line with Prime Minister Narendra Modi's 'Make in India' initiative.

Indian Navy has been entrusted with the task of identifying six shipyards which can identify the technology from foreign manufacturers. The six submarines expected to cost Rs. 53,000 crore.

A total of 440 helicopters will be inducted in all three branches of Indian defence forces. A bulk of the helicopters will be manufactured in India; the rest will be procured from US-based Boeing Company.

Speaking to news reporters, former Defence Minister Arun Jaitely said, "Almost 440 helicopters between three services have to be acquired some will be acquired from abroad and most of them have to be domestically manufactured... we have also announced Indian entities can apply and even public sector (firms can apply) so as to have capacity building in India."

The 440 helicopters are expected to cost Rs. 40,000 crore.

Apart from 440 helicopters, 54 transport aircraft will also be purchased. Tata Sons and Europe's Airbus have placed a joint multi-billion dollar bid to replace Indian Air Force's ageing fleet of Avro cargo planes.

The deal is estimated to be worth USD 2 billion and would replace the 56 Avro jets with Airbus C295 transport planes.

Apart from the above purchases, a total of Rs, 7,000 crore will also be spent upon to procure anti-tank missiles, infantry fighting vehicles, armored personnel carriers and other crucial military hardware.

On the anvil is the plan to buy 8,000 Israeli anti-tank missiles at the cost of Rs, 32,000 crore. The Israeli missile outbid the much talked about US-based Javelin missiles.

During the DAC meeting a proposal to buy 12 upgraded Dornier Surveillance aircraft was also cleared. The aircraft will be brought from Hindustan Aeronautical Limited (HAL) at the cost of Rs. 1,850 crore.

A proposal to buy 362 infantry fighting vehicles will be brought from the Ordinance Factory Board, Medak in West Bengal, for Rs. 662 crore.

Apart from the above decisions, the DAC also cleared purchase of 1,761 radio relay containers at a cost of Rs.662 crore, building of 363 Armoured Personnel Carriers at Rs. 1,800 crore and buying of critical rolling stock, including arms, guns, artillery, at Rs. 740 crore.

Earlier, soon after coming to power, NDa government cleared procurement proposal worth Rs. 21,000 crore open only to Indian manufacturers. The plan included, Rs. 9,000 crore tender to provide five fleet support ships for the Indian Navy.

A proposal to supply 32 HAL-built Advanced Light Helicopters (ALH), Dhruv, to be supplied to Coast Guard and Indian Navy at the cost of Rs. 7,000 crore.

A look inside the shopping list of India's Defence Minister Manohar Parrikar - daily.bhaskar.com
 
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I think more than the shopping list DM needs to critically examine why we keep pushing the defence forces to the brink for want of equipment. Bofors scam in late 80s led India on a path where any Defence deal irrespective of its importance has been with delays leading to some of the sorry state of preparedness. Indigenous development is dismal for the sector still doesn't allow full participation from private players. IMHO 6 points that Parrikar must put full focus on are:
1. No more delays in signing the deals which have now become MUST (Rafale, Howitzers, newer Submarines)
2. Proper follows up and completion of projects underway (Scorpene, Tejas)
3. Time bound and measurable targets to be set up for R&D agencies. Implement Reward and Penalty system of some kind to improve upon deliveries. Rope in academia, they are far more desperate for results compared to the agencies themselve responsible for projects.
4. Cut down bureaucracy in Defence production management. Where ever possible appoint a deserving ex-defence personnel to manage projects (if not the agency itself).
5. Cut down the corruption. this will automatically bring in efficiency and help Make in India campaign as far as Indian Defence sector is concerned.
6. Finally allow the final users (the armed forces) to have a say in what they want. They are tasked with protecting country, now let them choose their own tools to get the job done. Instances like IJT and basic trainer development even though IAF doesn't really like them is a case point.

Being a very successful Chief Minister, Parrikar has the credentials to do the job and i'm sure PM will give him full authority to do so. I sincerely hope he comes as a breath of Fresh Air.
 
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Future procurements
Vehicles
  • Light Tank – 300 tanks (200 tracked 100 wheeled) to be deployed on China border.[58] Later, it was decided that 300 T-90 tanks will be deployed in 6 regiments at different places to defend China border.
  • BMP-2 based AKASH SAM carrier production started at Ordnance Factory Medak.
  • BMP-2 based 105mm Light tank to be manufactured at Ordnance Factory Medak.
  • BMP-2 based NBC protected recon vehicle to be manufactured at Ordnance Factory Medak.
  • TATA Light Specialist Vehicle – LSV with LMG, MMG to be purchased.
  • Future Infantry Combat Vehicle - 2600 FICV to be procured to replace old BMP-2s. Initially, GoI asked different private and public sector companies to delevelop FICV.But,it seems that the plan to develop new vehicle is put on hold due to budgetary cuts.Instead, upgradation of old BMP-2s with new powerful engines,transmission and new Kliver turret with 30mm gun and four Kornet-M ATGM launchers in being tried.
  • Armoured Personnel Carrier - 100 APC to be procured for United Nations peace keeping missions.
  • 1586 vehicles to be procured to mount ATGMs on these.
Artillery and missile systems
  • Anti-tank missile FGM-148 Javelin and Spike (missile) are being evaluated currently by Indian army.[59][60][61]
  • Under the Field Artillery Rationalization Plan, Indian Army plans to procure 3000 to 4000 155 mm towed, wheeled and tracked artillery systems.[citation needed] The requirement for artillery guns to be met with indigenous development and production.[62] Production of crucial bi-modular charge system will be started soon at Nalanda ordnance factory. HEMRL, a DRDO lab has developed the technology indigenously.[63]
  • State-run Ordnance Factory Board (OFB) will deliver two types of indigenously developed 155mm howitzers to the Indian Army based on the FH77B howitzer purchased way back in 1986. One version will be 155/39 calibre while the other will be 155/45 calibre. Trials are to be completed by June 2013[64]
  • Government is also evaluating 155mm/52 self-propelled howitzers wherein three Indian vendors, including two private sector companies, have been selected for trials of their equipment.
  • Shaurya
  • Prahaar- the solid-fueled missile is slated to replace the liquid fueled Prithvi-1. Liquid-fueled missiles have lengthy preparation times giving adequate warning to the enemy, while solid-fueled ones can be ready in minutes.[65]
  • Agni-IV
  • Agni-V – Intercontinental version of the Agni missile system. The missile was test fired for the first time on 19 April 2012 and is expected to be inducted by 2014–15.
Infantry equipment
  • Futuristic Infantry Soldier As a System (F-INSAS) is the Indian Army's principal modernisation program from 2012 to 2020. In the first phase, to be completed by 2012,the infantry soldiers will be equipped with modular weapon systems that will have multi-functions. The Indian Army intends to modernise its entire 465 infantry and paramilitary battalions by 2020 with this program.
  • Modern Sub Machine Carbine - to replace the Indian Sterling submachine gun.[66]
  • Indian Army has requirement for 300,000 modular body armour and ballistic helmets primarily for their Infantry regiments. RFI's have been issued.
  • 1000 Anti materiel rifles are to acquired for which global RFI's have been issued by the MOD.
  • Indian army is looking for a heavy machine gun, RFIs for a new HMG have been sent to agencies that include Rosoboronexport for the Degtyarev Kord 12.7mm HMG, General Dynamics for the still in-development M806 HMG and also the Browning M2E50.[67]
  • Indian Army is looking for new multi caliber assault rifle for its 356 infantry battelions and some special operation units.It will replace old INSAS rifles. Four foreign firms — Colt with its Colt CM901, Beretta with its ARX-160, Ceska with its CZ-805 BREN and Israel Weapon Industries (IWI)with its Galil ACE are in competition. Initially 65,000 rifles will be bought directly from the selected foreign vendor, for an estimated Rs 4,850 crore, OFB will subsequently produce over 113,000 rifles after getting transfer of technology (ToT) from the vendor.Trial of the rifles is underway. * Indian Army is also in the process to procurement of 44,000 CQB carbines for around Rs 3,200 crore, with subsequent production of another 1,20,000 by OFB under ToT. Beretta, Colt, Sig Sauer and IWI carbines are in the competition.
  • Multi Caliber Individual Weapon System - A multi caliber assault rifle developed by ARDE for Indian Armed Forces. It can be fitted with either 5.56mm or 7.62mm or 6.8mm gun barrel. It is developed to replace INSAS rifles.It will be handed over to army after extensive user trials.
  • Sniper Rifles - 3500 new sniper rifles to be procured to replace old Dragunov SVDs. The new sniper rifles should have 1000m range and should be fitted with bipods.
Aviation
  • Light Utility Helicopter: The Indian army has projected a requirement for up to 197 light helicopters to replace its ageing fleet of Chetaks and Cheetahs. The Indian Army chose the Eurocopter AS 550 under a US$550 million contract in summer of 2007. Under this contract 60 helicopters were to be supplied from Eurocopter in fly-away condition and the rest were to be assembled by HAL in India. This order was later scrapped due to allegations of unfair field trials from competing company Bell Helicopters.[68][69] A fresh tender process was initiated later. Eurocopter Fennec and Kamov Ka-226 is in the competition now. Trial is completed but the final decision is pending.
  • Light Combat Helicopter: The HAL Light Combat Helicopter is a derivative of the HAL Dhruv, which was inducted into the Indian armed forces. Using a successful and proven helicopter as the base platform is expected to conserve the project costs for the LCH, which is pegged at 3.76 billion (US$60.9 million). The Dhruv's weaponised version, HAL Rudra is also being inducted in the Indian Army. The LCH was expected to be ready for the Initial Operational Clearance (IOC) by December 2010 with the Final Operational Clearance (FOC) in 2011. However, the revised timeframes hold that the 5.5-tonne LCH should be ready for induction into IAF by 2012–2013.[70] The first prototype of LCH completed its first ground run on 4 February 2010.[71] HAL has a firm order to deliver 65 LCH to the IAF and 114 to the Army.[72]

    Equipment of the Indian Army - Wikipedia, the free encyclopedia
 
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Defence Minister Arun Jaitleys work record

Key procurements that was cleared earlier but not signed: (cleared by the former MoD and pushed after elections):


■ $12 billion for the Medium Multi-Role Combat Aircraft (MMRCA) program, with French company Dassault as the preferred bidder. => Status - work in progress, decision expected only by the end of this or early next year

■ $1.5 billion for eight mine countermeasures ships from Kangnam of South Korea. => Status - cancelled for corruption issues

■ $1.2 billion for six Airbus A330 tankers. => Status - no news or progress at all

■ $1.1 billion for 22 Boeing Apache attack helicopters. => Status - work in progress, no change after secretary Hagels visit to India or the PM's visit to the US

■ $1 billion for 197 light utility helicopters. => Status - cancelled and re-issued for political agenda

■ $833 million for 15 Boeing Chinook heavy-lift helicopters. => Status - work in progress, no change after secretary Hagels visit to India or the PM's visit to the US

■ $600 million for light howitzer guns from BAE Systems. => Status - stalled because of offest issues, no change after secretary Hagels visit to India or the PM's visit to the US

■ $350 million for 1,418 Israeli-made thermal imaging sights for T-72 tanks. => Status?

■ $250 million for 262 Barak missiles from Israel Aerospace Industries. => Status - procurement cleared

■ $200 million for 98 Black Shark torpedoes from Italy’s WASS. => Status - work in progress, partial ban on Finmeccanica products, but no contract signed yet

■ $2 billion for 56 Transport Aircrafts to replace Avro's. => Status - cleared after inquiry started by the former minister for heavy industries and public enterprise - stalled because of the lack of interest of Indian and foreign industrial vendors


Key procurements that wasn't cleared earlier:

■ $525 million for 8000 ATGM's from Israel. => Status - procurement cleared

■ 56 naval light utility helicopters. => Status - cancelled and re-issued for political agenda

■ 6 x SSKs with AIP and land attack capability . => Status - cancelled and re-issued for political agenda

■ 16 x ASW helicopters. => Status - work in progress, no change after secretary Hagels visit to India or the PM's visit to the US

■ 9 x MRMR aircrafts. => Status - no news or progress at all

■ self propelled howitzer. => Status - partial progress by adding Arjun Catapult, but no progress for any of the 155mm howitzer procurements


More than enough chances for the new DM to do better!
 
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Defence minister Arun Jaitleys work record

Key procurements that wasn't cleared earlier: (cleared by the former MoD and pushed after elections):


■ $12 billion for the Medium Multi-Role Combat Aircraft (MMRCA) program, with French company Dassault as the preferred bidder. => Status - work in progress, decision expected only by the end of this or early next year

■ $1.5 billion for eight mine countermeasures ships from Kangnam of South Korea. => Status - cancelled for corruption issues

■ $1.2 billion for six Airbus A330 tankers. => Status - no news or progress at all

■ $1.1 billion for 22 Boeing Apache attack helicopters. => Status - work in progress, no change after secretary Hagels visit to India or the PM's visit to the US

■ $1 billion for 197 light utility helicopters. => Status - cancelled and re-issued for political agenda

■ $833 million for 15 Boeing Chinook heavy-lift helicopters. => Status - work in progress, no change after secretary Hagels visit to India or the PM's visit to the US

■ $600 million for light howitzer guns from BAE Systems. => Status - stalled because of offest issues, no change after secretary Hagels visit to India or the PM's visit to the US

■ $350 million for 1,418 Israeli-made thermal imaging sights for T-72 tanks. => Status?

■ $250 million for 262 Barak missiles from Israel Aerospace Industries. => Status - procurement cleared

■ $200 million for 98 Black Shark torpedoes from Italy’s WASS. => Status - work in progress, partial ban on Finmeccanica products, but no contract signed yet

■ $2 billion for 56 Transport Aircrafts to replace Avro's. => Status - cleared after inquiry started by the former minister for heavy industries and public enterprise - stalled because of the lack of interest of Indian and foreign industrial vendors


Key procurements that wasn't cleared earlier:

■ $525 million for 8000 ATGM's from Israel. => Status - procurement cleared

■ 56 naval light utility helicopters. => Status - cancelled and re-issued for political agenda

■ 6 x SSKs with AIP and land attack capability . => Status - cancelled and re-issued for political agenda

■ 16 x ASW helicopters. => Status - work in progress, no change after secretary Hagels visit to India or the PM's visit to the US

■ 9 x MRMR aircrafts. => Status - no news or progress at all

■ self propelled howitzer. => Status - partial progress by adding Arjun Catapult, but no progress for any of the 155mm howitzer procurements


More than enough chances for the new DM to do better!
Unfortunately there are too many reds for the liking of Armed forces. I hope the pic improves now that we have a full time DM.
 
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Unfortunately there are too many reds for the liking of Armed forces. I hope the pic improves now that we have a full time DM.

If the reds have defence related reasons, they can be justified, like corruption issues, but delaying our forces key modernisations for other reasons is not acceptable!
I still hope for the one or the other green marking till the end of the year, lets see what the new DM can do, but I fear that we might see some more delays because of scrapping and re-issuing or single vendor situations.
 
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If the reds have defence related reasons, they can be justified, like corruption issues, but delaying our forces key modernisations for other reasons is not acceptable!
I still hope for the one or the other green marking till the end of the year, lets see what the new DM can do, but I fear that we might see some more delays because of scrapping and re-issuing or single vendor situations.

True.
& i think one of the first job at hand for DM would be to get the procurement procedure right. We've had a policy to avoid middlemen in all deals and this has been one of the biggest reason for a lot of deals falling through even though those were technically justified and firms getting black-listed. Unfortunately large multi-national defence contractors don't work in that manner and they have agents to strike out deals. IMHO India needs to revisit this policy and stop treating agents as Taboo. Talk to authorized dealers, work out a defined commission for them and this could perhaps actually root out corruption, if everything (including the dealer's/agent's commission) are worked out in transparent manner. Perhaps significantly reducing time of reaching agreements as well.
Second, Government to Government deals are nothing but a manifestation of single tender situation (Nomination basis, as defined in public procurement manuals). large no. of G2G deals stuck during UPA 1&2 regimes therefore need to be examined as why india had to go for them. the answer would probably be Armed forces desperation rather than corrupt practices. had someone paid more attention on scheduling and planning, the situation would not have arisen and tenders could've been floated on Competitive basis giving us some kind of strategic/economic advantage.
Third, defence ministry must lay down some reasonable guidelines for time limits on closure of negotiation and deals. Excessive delays benefit none other than vendors. Classic case is Rafale negotiations. I'm not sure why talks have taken so long, but if the rumors that Dassault is sceptical over sharing workload with HAL tells us that Tender specifications had ambiguity. The economic downturn from 2007 onwards was a great opportunity for India to strike out a favorable deal (it still might). Complex negotiations do take time, but it cannot be an endless tale.
If you take decisions quickly, that raises your respect in eyes of the world and also gives signals of your sincerity and efficiency.
I'm all for honesty in any department of government including Defence, but about time we see efficiency as well.
 
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Defence Minister Parrikar work record updates

■ $2 billion for 56 Transport Aircrafts to replace Avro's. => Status - decision delayed because of single vendor situation

■ 16 x ASW helicopters. => Status - Sikorsky S70 selected, awaiting final procurement clearance similar to Apache and Chinook deals
 
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Some of these are very exaggerated demands. Forces have to come up with numbers based on capability. Like 39 sqadron figure was estimated around 25 year back.

Our beloved ex PM had said "Money does not grow on trees"
 
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December 17, 2014
Defence minister Manohar Parrikar on Wednesday cleared proposals to buy military equipment worth Rs. 4,444 crore...

...The DAC, however, deferred decision on the joint bid by Tata Sons and Airbus to replace the air force’s Avro transport fleet, a project worth Rs. 12,000 crore. It has sought more details from the IAF.


November 22, 2014
Defence Minister Manohar Parrikar on Saturday cleared a proposal to acquire 814 artillery guns for Rs 15,750 crore.
But he deferred decisions on a joint bid by Tata Sons and Europe’s Airbus Industrie to replace the Indian Air Force’s ageing Avro transport aircraft, and on the procurement of 106 Swiss Pilatus basic trainer aircraft.


September 15, 2014
The Indian Air Forces (IAF) plan to replace the ageing British transport aircraft, Avro, has hit another airpocket with no global vendor showing interest in bidding for the $3.5-bn project. This has forced the defence ministry to extend the deadline for seeking price bids to October, the fourth extension in the last 18 months.


July 17, 2014
The Defence Acquisitions Council, to be chaired by defence minister Arun Jaitley on July 19, will "ratify" the decision taken to extend the date for submission of bids by foreign aviation majors to August 28. "The in principle decision has already been taken after the law ministry's clearance," said a source.


Seems like nothing will happen this year in this regard. :frown:
 
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