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Defexpo Highlights Indian Procurement Needs | AVIATION WEEK
Indias rapidly growing defense programs attracted a number of major global contractors to the biennial Def- expo land and naval exposition here in February. Many were looking to establish or firm up partnerships with local manufacturers to meet the offsets mandated for procurement awards by the defense ministry.
Though eager for business, most contractors want the government to relax the cap on ownership levels that has been imposed on joint ventures. The current foreign direct investment (FDI) limit favors Indian companies on a 74-26% basis over foreign OEMs, a level that many contractors say provides no incentive for technology transfer.
Indias Defense Procurement Procedure (DPP) mandates a 30% offsets clause for projects valued at more than $65 million. At present, only $43 million worth of offsets are being realized$2 billion, though, are in negotiation. A revised DPP 2010 policy is in the works.
Rafael Advanced Defense Systems of Israel, for example, has requested that the government increase the FDI limit to 49% for a joint venture it plans with government-owned Bharat Electronics Ltd., to produce advanced infrared imaging seekers for Python 5 air-to-air missiles. The Pythons, along with Derby surface-to-air missiles (SAMs), are part of the 18 Spyder mobile air-defense systems India ordered to replace Russian-made OSA-AKM and ZRK-BD Strela-10M/SAM systems.
Rafael Chairman Ilan Biran, however, acknowledges that the lure of Indias defense jobs is enough to overcome his objections to the FDI restrictions. The ultimate solution [for business] is forming joint ventures, he told DTI.
The value of Defexpo was such that it was the only show in which Northrop Grumman showcased all five of its business units. The company highlighted capabilities in airborne early warning and control systems with its E-2D Advanced Hawkeye aircraft for maritime reconnaissance, and exhibited fire-control radars, unmanned aerial vehicles (UAVs), coastal surveillance and marine navigation systems and ships, and multirole electronically scanned array radar.
India is an important market, says John Brooks, president of Northrop Grumman International and vice president of Aerospace Systems. We are ready to meet the countrys current and evolving homeland security priorities. Our focus is to link together and network these systems to create solutions that respond to Indias requirements for a coordinated national defense structure. We believe the DPP 2010 will focus on accelerating and simplifying *procurement.
In addition to recently specifying BAE Systems M777 ultra-light howitzer (DTI March, p. 9), the Indian army has been shopping for advanced technologies in a number of areas. According to a report by the Confederation of Indian Industry, these include: weapon-locating radars, UAVs, battle tanks and antitank guided missiles; integrated communication platforms that support voice, data, image, applications and networking; rockets and missile systems; robotics for surveillance, reconnaissance, and ordnance detection and disposal; combat modeling and simulation software, and directed-energy weapons.
With large orders for protective gear in the pipeline for the army and paramilitary forcesamong them 87,000 bullet-resistant vests, shields and helmetsBAE Systems and local company Anjani Technoplast are joining forces to supply survivability products and personnel protection materials.
Anjani will manufacture protective equipment using Tensylon, a polyethylene ballistic material developed by BAE Systems for lighter and stronger body armor and vehicle armor, says Vijay Kumar Gupta, chairman and managing director. Anjani recently submitted bullet-resistant vest samples using Tensylon inserts to the Central Reserve Police for its bid of 59,000 protective jackets. If Anjani gets the contract, the jackets will be made at our facility near New Delhi, adds Gupta.
Indias rapidly growing defense programs attracted a number of major global contractors to the biennial Def- expo land and naval exposition here in February. Many were looking to establish or firm up partnerships with local manufacturers to meet the offsets mandated for procurement awards by the defense ministry.
Though eager for business, most contractors want the government to relax the cap on ownership levels that has been imposed on joint ventures. The current foreign direct investment (FDI) limit favors Indian companies on a 74-26% basis over foreign OEMs, a level that many contractors say provides no incentive for technology transfer.
Indias Defense Procurement Procedure (DPP) mandates a 30% offsets clause for projects valued at more than $65 million. At present, only $43 million worth of offsets are being realized$2 billion, though, are in negotiation. A revised DPP 2010 policy is in the works.
Rafael Advanced Defense Systems of Israel, for example, has requested that the government increase the FDI limit to 49% for a joint venture it plans with government-owned Bharat Electronics Ltd., to produce advanced infrared imaging seekers for Python 5 air-to-air missiles. The Pythons, along with Derby surface-to-air missiles (SAMs), are part of the 18 Spyder mobile air-defense systems India ordered to replace Russian-made OSA-AKM and ZRK-BD Strela-10M/SAM systems.
Rafael Chairman Ilan Biran, however, acknowledges that the lure of Indias defense jobs is enough to overcome his objections to the FDI restrictions. The ultimate solution [for business] is forming joint ventures, he told DTI.
The value of Defexpo was such that it was the only show in which Northrop Grumman showcased all five of its business units. The company highlighted capabilities in airborne early warning and control systems with its E-2D Advanced Hawkeye aircraft for maritime reconnaissance, and exhibited fire-control radars, unmanned aerial vehicles (UAVs), coastal surveillance and marine navigation systems and ships, and multirole electronically scanned array radar.
India is an important market, says John Brooks, president of Northrop Grumman International and vice president of Aerospace Systems. We are ready to meet the countrys current and evolving homeland security priorities. Our focus is to link together and network these systems to create solutions that respond to Indias requirements for a coordinated national defense structure. We believe the DPP 2010 will focus on accelerating and simplifying *procurement.
In addition to recently specifying BAE Systems M777 ultra-light howitzer (DTI March, p. 9), the Indian army has been shopping for advanced technologies in a number of areas. According to a report by the Confederation of Indian Industry, these include: weapon-locating radars, UAVs, battle tanks and antitank guided missiles; integrated communication platforms that support voice, data, image, applications and networking; rockets and missile systems; robotics for surveillance, reconnaissance, and ordnance detection and disposal; combat modeling and simulation software, and directed-energy weapons.
With large orders for protective gear in the pipeline for the army and paramilitary forcesamong them 87,000 bullet-resistant vests, shields and helmetsBAE Systems and local company Anjani Technoplast are joining forces to supply survivability products and personnel protection materials.
Anjani will manufacture protective equipment using Tensylon, a polyethylene ballistic material developed by BAE Systems for lighter and stronger body armor and vehicle armor, says Vijay Kumar Gupta, chairman and managing director. Anjani recently submitted bullet-resistant vest samples using Tensylon inserts to the Central Reserve Police for its bid of 59,000 protective jackets. If Anjani gets the contract, the jackets will be made at our facility near New Delhi, adds Gupta.
