General Indian Defence News
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kurup
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Design development board meets at HAL corporate office
The first meeting of newly-constituted Design & Development Management Board (DDMB) by the government to strengthen design and development in aerospace and promote self-reliance in the critical areas of India’s defence preparedness was held here today at HAL Corporate Office.
The Board comprises key members of India’s premier defence organizations involved in research, production and manufacturing activities.
“We need to have clear road map to take on the challenges in defence sector as issues concerned range from basic and applied research, involvement of academia, production, spotting and retaining talent,” Chairman of HAL and DDMB, R K Tyagi said.
The meeting brain-stormed on how to build a strong foundation for R&D by synergizing the core competency of all the organizations involved, creating conducive environment for research and support business academia collaboration.
The meeting also felt that all the concerned organizations must share the lessons learnt from the past programs and make combined efforts to ensure success of future programs with thrust on indigenization.
Acquiring of modern technology and measures to be taken to retain quality manpower were also discussed.
The forum would act as a platform for stimulating initiatives and suggest policy interventions for bringing inclusive growth. The DDMB members will deliberate at length most of these issues in their future meetings and the recommendations will be communicated to the stakeholders.
Design development board meets at HAL corporate office | idrw.org
The first meeting of newly-constituted Design & Development Management Board (DDMB) by the government to strengthen design and development in aerospace and promote self-reliance in the critical areas of India’s defence preparedness was held here today at HAL Corporate Office.
The Board comprises key members of India’s premier defence organizations involved in research, production and manufacturing activities.
“We need to have clear road map to take on the challenges in defence sector as issues concerned range from basic and applied research, involvement of academia, production, spotting and retaining talent,” Chairman of HAL and DDMB, R K Tyagi said.
The meeting brain-stormed on how to build a strong foundation for R&D by synergizing the core competency of all the organizations involved, creating conducive environment for research and support business academia collaboration.
The meeting also felt that all the concerned organizations must share the lessons learnt from the past programs and make combined efforts to ensure success of future programs with thrust on indigenization.
Acquiring of modern technology and measures to be taken to retain quality manpower were also discussed.
The forum would act as a platform for stimulating initiatives and suggest policy interventions for bringing inclusive growth. The DDMB members will deliberate at length most of these issues in their future meetings and the recommendations will be communicated to the stakeholders.
Design development board meets at HAL corporate office | idrw.org
HRK
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Senior Chinese officer calls for closer military cooperation with India
A visiting senior Chinese army officer on Tuesday called on the Chinese and Indian militaries to forge closer ties by expanding exchanges and cooperation in various fields.
Qi Jianguo, deputy chief of the General Staff of the People's Liberation Army, made the remarks when meeting here with Bikram Singh, chief of the Army Staff of the Indian Army.
China and India are the two largest developing countries, and bilateral cooperation not only benefits both nations but contributes to global peace and stability, Qi said.
He called for earnest implementation of the border defense cooperation agreement the two countries signed during Indian Prime Minister Manmohan Singh's official visit to China in October 2013.
Meanwhile, the two militaries should boost exchanges and cooperation in various fields so as to push their relations to higher levels, added the Chinese officer.
China, he said, is ready to work with India to strengthen management and control, handle bilateral differences in a proper manner, and thus safeguard border peace and stability and create a favorable environment for the common development of both countries.
For his part, Singh said this year marks the Year of India-China Friendly Exchanges, which provides new opportunities to promote the relations between the two militaries.
The Indian side is willing to enhance exchanges and communication with China in order to maintain a peaceful border and help safeguard regional stability, he added.
HRK
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this times Chiness look serious, my reason to believe this because they want stable neighbourhood through multilateral mechanism, which they can 'influence' to their interest, stable Indo-China relations suits to Russians and to some extent Pakistan as well, same is the case with Pak-Russia relations which will bore certain dividend to India and China.
But do not expect some silver screen blockbuster hits in these regards.
read this....
sancho
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The problem is, they don't show it. The border issues with India in the last year, the constant issues in the South Chinese Sea, issues with Japan and Russia...
In fact, the border issues between Pakistan and India has made more progress in the last years, which even let to removing of troops and arms from the borders, while China is basically forcing us and other neighbours to increase defence capabilities. So unless we see some real efforts from them to ease the tensions in Asia, talk is not enough.
HRK
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Yes China have a tracK record same as other big countries, but one need to understand China is increasing her stakes in SA, investment in Pakistan's Economic corridor, expected investment & increase in trade and business relations with India after Modi's central government, and investment in Bangladesh and Afghanistan will eventually increase the stakes of China in the region & vis versa.
This will lead towards a 'regional mechanism' which I hope will be beneficial to all participants, this look like a long term plan of 15-20 years, I may be wrong, but I am reading some related steps in these regards and basing my assumption on this.
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India's Defense Spending Boost Won't Be As High, Sources Say
NEW DELHI — Despite calls by India’s new defense minister for a 20 percent boost in spending, sources in the Foreign Ministry say that number will more likely be 10 percent due to New Delhi’s financial conditions.
In a note to the Finance Ministry last week, the Defence Ministry sought a $7.5 billion jump over the existing allocation of $35 billion, announced by the outgoing United Progressive Alliance government in February.
The outgoing government allocated $14.93 billion in the Capital Head for fresh weapons and equipment. An MoD source said the bulk of the allocations in the Capital Head are used for paying for past contracts, leaving very little money for buying new weaponry and equipment.
Also, under Indian procurement norms, the government pays for 10 percent of a contract up front and the rest is spread over the following years. Since India needs to finalize $20 billion in contracts in the next year, it must spend $2 billion in additional money to cover its upfront costs.
“There is a need for substantial increase in the defense budget to cater for both committed liabilities and for new schemes. The pressure on the defense budget has been acute in recent times, to the extent that around 97 percent of the capital acquisition budget was [due to] committed liabilities, leaving very little for the new contracts,” said Laxman Kumar Behera, research fellow at the Institute of Defense Studies and Analyses.
The MoD needs to finalize contracts worth $20 billion in the 2014-2015 timeframe, including:
■$12 billion for the Medium Multirole Combat Aircraft (MMRCA) program, with Dassault as the preferred bidder.
■$1.5 billion for eight mine countermeasures ships from Kangnam Corp., South Korea.
■$1.2 billion for six Airbus A330 tankers.
■$1.1 billion for 22 Boeing Apache attack helicopters.
■$1 billion for 197 light utility helicopters.
■$833 million for 15 Boeing Chinook heavy lift helicopters.
■$600 million for light howitzer guns from BAE Systems.
■$350 million for 1,418 Israeli-made thermal imaging sights for T-72 tanks.
■$250 million for 262 Barak missiles from Israel Aerospace Industries.
■$200 million for 98 Black Shark torpedoes from WASS.
A Navy officer said India needs to sharply increase its budget spending to match the increased spending by China, which has an annual defense budget of $132 billion, nearly four times that of India. The officer said the optimum level of defense spending should be over 3 percent of India’s gross domestic product (GDP), compared to its current level of less than 2 percent.
“By a rough yardstick, India needs to spend approximately 2-2.5 percent of GDP consistently on defense so that it is able to stay at par with the modernization curve,” said retired Army Brig. Gen. Rahul Bhonsle, now a defense analyst. “In the last five budget years 2010-11 onwards, including the interim budget for 2014-15, [spending] has been below 2 percent of the GDP. This means for the next five years, there is a need to spend on the higher side, that is 2.5 percent of the GDP, and then a review could be carried out.”
However, Amit Cowshish, retired MoD financial adviser and defense analyst, said there is no “optimum” level of defense spending.
“Some people do advocate that [the] defense budget should be pegged at 3 percent of the GDP, but there is no empirical study to establish that this would be the ideal level of funding,” Cowshish said. “Since there is no ideal/optimum level of funding, there is no way of saying what the ‘lag’ is.”
However, MoD is unlikely to get the increased funds as demanded, given the tight fiscal health of the country, forcing the MoD to rejig the purchase and even put some projects on hold, the MoD source said.
“Some smart contract negotiations will have to be undertaken to delay a few contracts such as the heavy lift helicopters, pay lower contracting margins to large projects as the Rafale [MMRCA] and cut back on projects as the indigenous aircraft carrier,” Bhonsle said. “However, any cutback in artillery guns and submarine procurements are not recommended.” ■
Email: vraghuvanshi@defensenews.com.
India's Defense Spending Boost Won't Be As High, Sources Say | Defense News | defensenews.com
NEW DELHI — Despite calls by India’s new defense minister for a 20 percent boost in spending, sources in the Foreign Ministry say that number will more likely be 10 percent due to New Delhi’s financial conditions.
In a note to the Finance Ministry last week, the Defence Ministry sought a $7.5 billion jump over the existing allocation of $35 billion, announced by the outgoing United Progressive Alliance government in February.
The outgoing government allocated $14.93 billion in the Capital Head for fresh weapons and equipment. An MoD source said the bulk of the allocations in the Capital Head are used for paying for past contracts, leaving very little money for buying new weaponry and equipment.
Also, under Indian procurement norms, the government pays for 10 percent of a contract up front and the rest is spread over the following years. Since India needs to finalize $20 billion in contracts in the next year, it must spend $2 billion in additional money to cover its upfront costs.
“There is a need for substantial increase in the defense budget to cater for both committed liabilities and for new schemes. The pressure on the defense budget has been acute in recent times, to the extent that around 97 percent of the capital acquisition budget was [due to] committed liabilities, leaving very little for the new contracts,” said Laxman Kumar Behera, research fellow at the Institute of Defense Studies and Analyses.
The MoD needs to finalize contracts worth $20 billion in the 2014-2015 timeframe, including:
■$12 billion for the Medium Multirole Combat Aircraft (MMRCA) program, with Dassault as the preferred bidder.
■$1.5 billion for eight mine countermeasures ships from Kangnam Corp., South Korea.
■$1.2 billion for six Airbus A330 tankers.
■$1.1 billion for 22 Boeing Apache attack helicopters.
■$1 billion for 197 light utility helicopters.
■$833 million for 15 Boeing Chinook heavy lift helicopters.
■$600 million for light howitzer guns from BAE Systems.
■$350 million for 1,418 Israeli-made thermal imaging sights for T-72 tanks.
■$250 million for 262 Barak missiles from Israel Aerospace Industries.
■$200 million for 98 Black Shark torpedoes from WASS.
A Navy officer said India needs to sharply increase its budget spending to match the increased spending by China, which has an annual defense budget of $132 billion, nearly four times that of India. The officer said the optimum level of defense spending should be over 3 percent of India’s gross domestic product (GDP), compared to its current level of less than 2 percent.
“By a rough yardstick, India needs to spend approximately 2-2.5 percent of GDP consistently on defense so that it is able to stay at par with the modernization curve,” said retired Army Brig. Gen. Rahul Bhonsle, now a defense analyst. “In the last five budget years 2010-11 onwards, including the interim budget for 2014-15, [spending] has been below 2 percent of the GDP. This means for the next five years, there is a need to spend on the higher side, that is 2.5 percent of the GDP, and then a review could be carried out.”
However, Amit Cowshish, retired MoD financial adviser and defense analyst, said there is no “optimum” level of defense spending.
“Some people do advocate that [the] defense budget should be pegged at 3 percent of the GDP, but there is no empirical study to establish that this would be the ideal level of funding,” Cowshish said. “Since there is no ideal/optimum level of funding, there is no way of saying what the ‘lag’ is.”
However, MoD is unlikely to get the increased funds as demanded, given the tight fiscal health of the country, forcing the MoD to rejig the purchase and even put some projects on hold, the MoD source said.
“Some smart contract negotiations will have to be undertaken to delay a few contracts such as the heavy lift helicopters, pay lower contracting margins to large projects as the Rafale [MMRCA] and cut back on projects as the indigenous aircraft carrier,” Bhonsle said. “However, any cutback in artillery guns and submarine procurements are not recommended.” ■
Email: vraghuvanshi@defensenews.com.
India's Defense Spending Boost Won't Be As High, Sources Say | Defense News | defensenews.com
Indus Falcon
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Report: India Clears Defense Procurement Worth $3.5B
Jul. 20, 2014 -By AGENCE FRANCE-PRESSE
NEW DELHI— India’s new Hindu nationalist government cleared Saturday proposals worth nearly $3.5 billion to modernize the nation’s aging Soviet-era military hardware and boost its domestic defense industry, a report said.
The move underscored the desire of the government led by Prime Minister Narendra Modi to move quickly to update the country’s military as India looks to defend itself against an increasingly assertive China and from rival Pakistan.
The government earlier this month announced a 12 percent rise in military spending in the annual budget as part of efforts to overhaul its armed forces, declaring “there can be no compromise” with defense.
The defense Acquisition Council on Saturday approved defense procurement proposals worth 210 billion rupees ($3.48 billion), many of which were longstanding, at a meeting chaired by defense Minister Arun Jaitley, the Press Trust of India said.
“There are many proposals in the pipeline for the defense forces,” Jaitley said at the first council’s first meeting since the Bharatiya Janata Party government took office in May after scoring a landslide election victory.
“Today, we have tried to expedite quite a few of them,” Jaitley, who is also the finance minister, was quoted by the PTI as saying.
Defense ministry officials were not immediately available for comment.
India is one of the world’s biggest arms importers, traditionally relying on Russia and in more recent years the United States for equipment and technology due to weaknesses with its own industry.
But slow procurement over decades and the collapse of a string of defense deals during the previous center-left Congress party government’s rule has left the military short of key equipment.
The BJP has been pushing for greater indigenisation of the military industry as India imports around 70 percent of its defense hardware.
Among the major proposals to receive approval was a 90-billion-rupee tender to provide five fleet support ships for the navy that would be open to all public and private sector shipyards, PTI said citing defense ministry officials.
In his first budget, Jaitley hiked defense spending for the current financial year to 2.29 trillion rupees ($38.3 billion). He also said he would further open up the military industry to foreign investment, lifting the cap to 49 percent from 26 percent, with Indian companies retaining overall control.
But defense analysts said the new limit would fail to lure foreign firms because it was less than 50 percent and they feared losing rights to sensitive technology.
Western nations are wooing India’s government in hopes of clinching multi-billion arms deals while New Delhi is keen to leverage their eagerness to do business to win technology transfers.
Report: India Clears Defense Procurement Worth $3.5B | Defense News | defensenews.com
Jul. 20, 2014 -By AGENCE FRANCE-PRESSE
NEW DELHI— India’s new Hindu nationalist government cleared Saturday proposals worth nearly $3.5 billion to modernize the nation’s aging Soviet-era military hardware and boost its domestic defense industry, a report said.
The move underscored the desire of the government led by Prime Minister Narendra Modi to move quickly to update the country’s military as India looks to defend itself against an increasingly assertive China and from rival Pakistan.
The government earlier this month announced a 12 percent rise in military spending in the annual budget as part of efforts to overhaul its armed forces, declaring “there can be no compromise” with defense.
The defense Acquisition Council on Saturday approved defense procurement proposals worth 210 billion rupees ($3.48 billion), many of which were longstanding, at a meeting chaired by defense Minister Arun Jaitley, the Press Trust of India said.
“There are many proposals in the pipeline for the defense forces,” Jaitley said at the first council’s first meeting since the Bharatiya Janata Party government took office in May after scoring a landslide election victory.
“Today, we have tried to expedite quite a few of them,” Jaitley, who is also the finance minister, was quoted by the PTI as saying.
Defense ministry officials were not immediately available for comment.
India is one of the world’s biggest arms importers, traditionally relying on Russia and in more recent years the United States for equipment and technology due to weaknesses with its own industry.
But slow procurement over decades and the collapse of a string of defense deals during the previous center-left Congress party government’s rule has left the military short of key equipment.
The BJP has been pushing for greater indigenisation of the military industry as India imports around 70 percent of its defense hardware.
Among the major proposals to receive approval was a 90-billion-rupee tender to provide five fleet support ships for the navy that would be open to all public and private sector shipyards, PTI said citing defense ministry officials.
In his first budget, Jaitley hiked defense spending for the current financial year to 2.29 trillion rupees ($38.3 billion). He also said he would further open up the military industry to foreign investment, lifting the cap to 49 percent from 26 percent, with Indian companies retaining overall control.
But defense analysts said the new limit would fail to lure foreign firms because it was less than 50 percent and they feared losing rights to sensitive technology.
Western nations are wooing India’s government in hopes of clinching multi-billion arms deals while New Delhi is keen to leverage their eagerness to do business to win technology transfers.
Report: India Clears Defense Procurement Worth $3.5B | Defense News | defensenews.com
ejaz007
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India Lifts Ban on Denel
NEW DELHI — India has removed South Africa’s Denel from a blacklist, allowing the company to again do business here after nine years of investigations failed to prove corruption charges related to a rifle purchase.
The Indian Ministry of Defence sent a letter Aug. 12 to Denel lifting the ban, said a source in the MoD.
An executive of Denel, who requested not to be named, said they received a communication from MoD saying the ban had been lifted, but gave no details of the contents of the MoD letter.
“The decision to de-blacklist Denel and allow it to do business in India will send a positive signal to overseas defense companies to do business in India,” said an executive of an overseas defense major based in New Delhi.
Denel was banned by the outgoing United Progressive Alliance (UPA) government after allegations that it paid kickbacks to secure a deal with the Indian Army in 2002 to sell 1,000 NTW-20 anti-material rifles along with 398,000 rounds of ammunition.
Under the deal, 700 rifles were to have been purchased directly and the remaining 300 licensed-produced in one of the factories of India’s state-owned Ordnance Factory Board. Only 400 rifles had been inducted into the Indian Army and the remainder put on hold after the 2005 blacklisting and investigation by the anti-fraud agency, the Central Bureau of Investigation (CBI).
Charges were filed by the CBI against Denel and the UK-based consulting firm Varas Associates, which allegedly rerouted part of the commission to unnamed officials of Denel and the MoD in India. Varas was not banned along with Denel. None of the charges have been proved by CBI, the MoD said.
The purchase of the anti-material rifles was made during the tenure of the National Democratic Alliance (NDA) government, which was in power from 1999-2004, and returned to power in May. The blacklisting was done under the outgoing UPA government within a year of it coming into power in 2004.
The blacklisting of Denel stalled several Indian Army projects, including the purchase of 155mm/52 caliber artillery guns as Denel was the front runner in that program, which was then canceled.
The blacklisting also delayed the homegrown effort, “Bhim Artillery Project,” under which Denel had proposed to install its 155mm artillery gun on an Indian-made Arjun tank chassis.
“Denel will now emerge as a keen competitor in India’s $4 billion variety of 155mm/52 caliber artillery gun projects,” said defense analyst Nitin Mehta, adding that the South African company may forge tie ups with domestic defense companies to compete in these programs. ■
Email: vraghuvanshi@defensenews.com.
India Lifts Ban on Denel | Defense News | defensenews.com
NEW DELHI — India has removed South Africa’s Denel from a blacklist, allowing the company to again do business here after nine years of investigations failed to prove corruption charges related to a rifle purchase.
The Indian Ministry of Defence sent a letter Aug. 12 to Denel lifting the ban, said a source in the MoD.
An executive of Denel, who requested not to be named, said they received a communication from MoD saying the ban had been lifted, but gave no details of the contents of the MoD letter.
“The decision to de-blacklist Denel and allow it to do business in India will send a positive signal to overseas defense companies to do business in India,” said an executive of an overseas defense major based in New Delhi.
Denel was banned by the outgoing United Progressive Alliance (UPA) government after allegations that it paid kickbacks to secure a deal with the Indian Army in 2002 to sell 1,000 NTW-20 anti-material rifles along with 398,000 rounds of ammunition.
Under the deal, 700 rifles were to have been purchased directly and the remaining 300 licensed-produced in one of the factories of India’s state-owned Ordnance Factory Board. Only 400 rifles had been inducted into the Indian Army and the remainder put on hold after the 2005 blacklisting and investigation by the anti-fraud agency, the Central Bureau of Investigation (CBI).
Charges were filed by the CBI against Denel and the UK-based consulting firm Varas Associates, which allegedly rerouted part of the commission to unnamed officials of Denel and the MoD in India. Varas was not banned along with Denel. None of the charges have been proved by CBI, the MoD said.
The purchase of the anti-material rifles was made during the tenure of the National Democratic Alliance (NDA) government, which was in power from 1999-2004, and returned to power in May. The blacklisting was done under the outgoing UPA government within a year of it coming into power in 2004.
The blacklisting of Denel stalled several Indian Army projects, including the purchase of 155mm/52 caliber artillery guns as Denel was the front runner in that program, which was then canceled.
The blacklisting also delayed the homegrown effort, “Bhim Artillery Project,” under which Denel had proposed to install its 155mm artillery gun on an Indian-made Arjun tank chassis.
“Denel will now emerge as a keen competitor in India’s $4 billion variety of 155mm/52 caliber artillery gun projects,” said defense analyst Nitin Mehta, adding that the South African company may forge tie ups with domestic defense companies to compete in these programs. ■
Email: vraghuvanshi@defensenews.com.
India Lifts Ban on Denel | Defense News | defensenews.com
arp2041
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