Abingdonboy
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1. India needs 800 to 1,000 helicopters in the next five years for varied military uses, including in utility and attack roles. While attack helicopters will be bought through the 'Buy Global' route for which talks are at an advanced stage with United States, most other helicopters would be procured from the Indian market. Subsequently, attack helicopters too can be manufactured in India.
2. Hindustan Aeronautics Limited (HAL) is developing two types of helicopters, which would be ready before 2017, when full production of these helicopters would begin. In five years, India should be able to meet its military helicopters need from indigenous sources. These helicopters manufacturing are apart from the offer from Russia to build Ka-226T helicopters in India, made during President Vladimir Putin's visit to the national capital in December 2014.
3. Proposals to buy 56 planes to replace Avro transport fleet and 106 more Swiss-origin Pilatus PC-7 MkII Basic Trainer Aircraft are being fast-tracked.
4. On the defense purchases side, orders have already been placed for 50,000 light weight bullet proof jackets and 400,000 pairs of shoes and uniform for troopers.
5. An extensive review of the Defense Procurement Procedure (DPP) is being carried out. Attempt is being made to shorten the time taken for military procurement. At present, it takes about five to six years. In some cases, proposals get derailed and in some others, technical parameters get changed frequently. Actually, some of the defense items can be bought within a year's time.
6. There is a review going on about the policy of debarring and blacklisting of defense firms. Based on merits of the case against the blacklisted firms, the urgency to meet armed forces needs and the availability of these items in the market, the Defense Ministry can consider lifting of bans and relaxing of restrictions imposed on such firms to a reasonable extent to do business in India. An example is the defense public sector firm BEML's Tatra trucks, which are now being allowed to be procured from the Original Equipment Manufacturer directly without the intermediaries, who are facing a Central Bureau of Investigation (CBI) case.
7. The government will allow agents in the defense sector, with caveats. Engagement of agents by a foreign firm and the fees being paid to these agents are to be made known to the Defense Ministry in advance. There should be no "bonus" or "success fee" or "commissions" on bagging orders. The engagement of the agent should be de-linked from the winning of the contract.
8. For increased participation of the private sector, who look at return on investment, in the defense sector, proposals are under consideration for simplifying procedures to allow smooth military exports. Also, in the last eight months, about Rs.75,000 crore (Rs.750Bn/$13Bn) worth of military purchase proposals have been approved, of which Rs.65,000 crore (Rs.650Bn/$10Bn) is either 'buy Indian' or 'buy and make Indian'. This is almost 86 per cent of the total proposals cleared.
9. Private sector is welcome to join the second line of submarines, mounted artillery guns and helicopters manufacturing projects. The target is, in the next one year, private sector should be doing defense manufacturing in a big way.
10. Involvement of MSMEs in 'Make in India' too will be taken care of. Discussion is at an advanced stage in this regard and in a couple of weeks, in January 2015 to be precise, the MSME participation will be ensured through policy proposals. Products should be identified for the MSMEs and the projects should be financed, in some deserving cases, even up to 100 per cent.
11. Several Defense Public Sector Undertakings and Ordnance Factories can outsource their work to the private sector by identifying the industries, creating clusters, giving them work and increasing productivity. Indigenisation can be increased up to 70 per cent from the existing 30 per cent through this method.
12. A review of the warship orders placed with the Defense Public Sector shipyards is underway to assess the actual, timely and within cost shipbuilding capability of each of the four yards. The public sector shipyards would be asked to outsource work to the private sector shipyards to ensure timely building of warships to meet Navy and Coast Guard needs. For example, Mazagon Docks Limited (MDL) has Rs.54,000 crore (Rs.540Bn/$9Bn) worth of warships on order. These warship orders would be completed in 18 years. The delivery from MDL at present is just about Rs.3,300 crore (Rs.330Bn/$500Mn) annually. "We have to ensure all shipyards in the public and private sectors can deliver what we want."
13. Border Roads Organisation (BRO) will be de-linked from the Ministry of Surface Transport soon and it will be brought entirely under the Defense Ministry. About 7,000 km of roads that are not in sensitive areas, but at present handled by the BRO, will be transferred to the National Highways Authority of India (NHAI). All BRO work will be funded from Defense Finance and the organisation will focus on strategic roads.
14. Defense Ministry will seek more funds from the 2015-16 budget that will be presented in February 2015. Procurement will be prioritized to meet immediate needs. Some of the financial powers of the Defense Research and Development Organisation (DRDO) Director General have now been delegated to Cluster Heads of the organisation.
15. The report on the Oct. 14, 2014 crash of a Russian-origin Su-30MKI air superiority fighter aircraft of the IAF would be made public, barring the operationally sensitive issues, soon after the inquiry is completed. The aircraft had remained grounded for a month after the crash, reportedly caused by involuntary ejection of the pilot seats.
Arming India
A mixed bag of news really, mostly positives and a good start but there is a lot, LOT more to do and whilst the DM is talking a good talk he hasn't cleared any big ticket deals to date. Let's see if the new budget is increased and the next FY sees more deals cleared.
@sancho @Koovie @dllinger @levina @Water Car Engineer @sandy_3126 @Capt.Popeye
2. Hindustan Aeronautics Limited (HAL) is developing two types of helicopters, which would be ready before 2017, when full production of these helicopters would begin. In five years, India should be able to meet its military helicopters need from indigenous sources. These helicopters manufacturing are apart from the offer from Russia to build Ka-226T helicopters in India, made during President Vladimir Putin's visit to the national capital in December 2014.
3. Proposals to buy 56 planes to replace Avro transport fleet and 106 more Swiss-origin Pilatus PC-7 MkII Basic Trainer Aircraft are being fast-tracked.
4. On the defense purchases side, orders have already been placed for 50,000 light weight bullet proof jackets and 400,000 pairs of shoes and uniform for troopers.
5. An extensive review of the Defense Procurement Procedure (DPP) is being carried out. Attempt is being made to shorten the time taken for military procurement. At present, it takes about five to six years. In some cases, proposals get derailed and in some others, technical parameters get changed frequently. Actually, some of the defense items can be bought within a year's time.
6. There is a review going on about the policy of debarring and blacklisting of defense firms. Based on merits of the case against the blacklisted firms, the urgency to meet armed forces needs and the availability of these items in the market, the Defense Ministry can consider lifting of bans and relaxing of restrictions imposed on such firms to a reasonable extent to do business in India. An example is the defense public sector firm BEML's Tatra trucks, which are now being allowed to be procured from the Original Equipment Manufacturer directly without the intermediaries, who are facing a Central Bureau of Investigation (CBI) case.
7. The government will allow agents in the defense sector, with caveats. Engagement of agents by a foreign firm and the fees being paid to these agents are to be made known to the Defense Ministry in advance. There should be no "bonus" or "success fee" or "commissions" on bagging orders. The engagement of the agent should be de-linked from the winning of the contract.
8. For increased participation of the private sector, who look at return on investment, in the defense sector, proposals are under consideration for simplifying procedures to allow smooth military exports. Also, in the last eight months, about Rs.75,000 crore (Rs.750Bn/$13Bn) worth of military purchase proposals have been approved, of which Rs.65,000 crore (Rs.650Bn/$10Bn) is either 'buy Indian' or 'buy and make Indian'. This is almost 86 per cent of the total proposals cleared.
9. Private sector is welcome to join the second line of submarines, mounted artillery guns and helicopters manufacturing projects. The target is, in the next one year, private sector should be doing defense manufacturing in a big way.
10. Involvement of MSMEs in 'Make in India' too will be taken care of. Discussion is at an advanced stage in this regard and in a couple of weeks, in January 2015 to be precise, the MSME participation will be ensured through policy proposals. Products should be identified for the MSMEs and the projects should be financed, in some deserving cases, even up to 100 per cent.
11. Several Defense Public Sector Undertakings and Ordnance Factories can outsource their work to the private sector by identifying the industries, creating clusters, giving them work and increasing productivity. Indigenisation can be increased up to 70 per cent from the existing 30 per cent through this method.
12. A review of the warship orders placed with the Defense Public Sector shipyards is underway to assess the actual, timely and within cost shipbuilding capability of each of the four yards. The public sector shipyards would be asked to outsource work to the private sector shipyards to ensure timely building of warships to meet Navy and Coast Guard needs. For example, Mazagon Docks Limited (MDL) has Rs.54,000 crore (Rs.540Bn/$9Bn) worth of warships on order. These warship orders would be completed in 18 years. The delivery from MDL at present is just about Rs.3,300 crore (Rs.330Bn/$500Mn) annually. "We have to ensure all shipyards in the public and private sectors can deliver what we want."
13. Border Roads Organisation (BRO) will be de-linked from the Ministry of Surface Transport soon and it will be brought entirely under the Defense Ministry. About 7,000 km of roads that are not in sensitive areas, but at present handled by the BRO, will be transferred to the National Highways Authority of India (NHAI). All BRO work will be funded from Defense Finance and the organisation will focus on strategic roads.
14. Defense Ministry will seek more funds from the 2015-16 budget that will be presented in February 2015. Procurement will be prioritized to meet immediate needs. Some of the financial powers of the Defense Research and Development Organisation (DRDO) Director General have now been delegated to Cluster Heads of the organisation.
15. The report on the Oct. 14, 2014 crash of a Russian-origin Su-30MKI air superiority fighter aircraft of the IAF would be made public, barring the operationally sensitive issues, soon after the inquiry is completed. The aircraft had remained grounded for a month after the crash, reportedly caused by involuntary ejection of the pilot seats.
Arming India
A mixed bag of news really, mostly positives and a good start but there is a lot, LOT more to do and whilst the DM is talking a good talk he hasn't cleared any big ticket deals to date. Let's see if the new budget is increased and the next FY sees more deals cleared.
@sancho @Koovie @dllinger @levina @Water Car Engineer @sandy_3126 @Capt.Popeye
