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news.outlookindia.com | Govt to Stop Nominating PSUs in Naval Contracts



Govt to Stop Nominating PSUs in Naval Contracts


Cautioning the PSUs to prepare for "more competition" from the private Indian entities, Defence Minister A K Antony today said under its new policies, the Ministry will stop nominating government-owned companies in the Naval contracts.

Observing that the indigenisation process in the defence sector was very slow, he said India was aspiring to be a member of UN Security Council and its "heavy dependence" on foreign countries for defence needs was not a good situation.

"Government has taken a decision that from January 2011 onwards, the Defence Acquisition Council (DAC) will not give any nominations to the defence shipyards for Naval projects and they will have to compete with the private shipyards for the tenders," Antony said here.

The Government will procure equipment for the Navy under 'Buy Indian Make Indian' category where both PSU and private sector shipyards will have to compete for tenders, he said.

At present, the DAC nominates the PSUs as the production agency for defence contracts.

"'Buy Indian and Make Indian' is going to be the major component of our procurement policy. That will help us to have a strong defence industrial base in India," he said.

Asserting that it was high-time for the DPSUs and the OFBs to act, the Defence Minister said, "I caution you (PSUs and OFB) and seriously tell you to get ready for more competition from the Indian private sector."

Antony said that in the age of globalisation, no country can move towards zero imports but 65-70 per cent dependence on imports for defence equipment was not a good situation.

"For India, which is aspiring for the UN Security council membership, still depending heavily on foreign countries for majority of its defence needs is not good for us," he said.

"We have to reverse this trend. We will support the PSUs but at the same time PSUs alone would not be able to meet the requirements of the armed forces," Antony said at a function to present Raksha Mantri's Awards for Excellence for the Year 2008-09 to Ordinance Factories (OFs) and Defence Public Sector Undertakings (DPSUs).

He said initially the policy would be applicable for Navy only, gradually it would be extended to other two forces.
 
‘No more imported warships’

BY: The Indian Express Limited.

In a significant announcement, Defence Minister A K Antony has indicated that the Indian Navy will no longer rely on imports when it comes to warships as all future procurements will be made in India. The minister also announced that private shipbuilders in the country will be given a level playing field and will have to compete with public sector shipyards for defence contracts.

Antony said that in January, the Defence Ministry will come up with a new procurement policy that will contain ‘drastic steps’ to speed up the goal of decreasing dependence of imports for defence platforms. Antony said that at the moment, almost 70 per cent of defence equipment is imported.

Conceding that the public sector undertakings alone will not be able to meet the requirements of the Armed Forces, Antony said that the ministry is formulating a new policy to give the private sector more opportunities. Antony hinted that the Navy would be the first force to get rid of dependence on foreign suppliers for major platforms.

“Both public sector shipyards will have to compete with the Indian private shipyards to get projects for the Indian Navy. So all the Indian Navy’s procurements in future will be from ‘Buy Indian, Make Indian’, so they will have to compete,” Antony said on Wednesday.

He added that even beyond the Navy, the ‘Buy Indian and Make Indian’ category where equipment to be procured has to be made in India, is going to be the “major component of our procurement policy”. “That will help us to have a strong defence industrial base in India.” It may be noted that the Navy has already taken a giant leap over the other services when it comes to indegenisation of defence equipment. Most of the next-generation warships on order are to be made in India while two aircraft carriers are being constructed and a nuclear submarine line is already operational.
 
does this breakup reflect our production
DCNS, Navantia End Scorpene Cooperation - Defense News
DCNS and Navantia of Spain have agreed to drop cooperation on the Scorpene conventional diesel-electric attack submarine and go their own ways in undersea warfare, the French naval company company said in a terse statement Nov. 12.

"DCNS and Navantia have put an end to their disagreement concerning their submarine collaboration," DCNS said in a statement. "As a result, the arbitration procedure between them will be terminated."

DCNS will take over sole rights to build and sell the Scorpene, while Navantia will work on its S80 submarine.

"Scorpene submarines will from now on be built and marketed by DCNS. Similarly, S80 submarines will be built and marketed by Navantia," DCNS said. "Neither party will make any further comments."

Under a partnership agreement, DCNS and Navantia shared development and construction of the Scorpene submarine. The two former partners built large subsections in their respective yards in Cherbourg, northern France, and Cartegna, Spain, which were then assembled and delivered to export customers.

But relations between DCNS and Navantia deteriorated after the Spanish company launched its program to build the S80 submarine, which is equipped with a combat management system from Lockheed Martin. The larger S80 is based on an all-new design, which includes air independent propulsion and a land-attack cruise missile.

France has sold Scorpene boats to Brazil, Chile, India and Malaysia.
 
DCNS, Navantia End Scorpene Cooperation
By PIERRE TRAN
Published: 12 Nov 2010 09:39 Paris - DCNS and Navantia of Spain have agreed to drop cooperation on the Scorpene conventional diesel-electric attack submarine and go their own ways in undersea warfare, the French naval company company said in a terse statement Nov. 12.

"DCNS and Navantia have put an end to their disagreement concerning their submarine collaboration," DCNS said in a statement. "As a result, the arbitration procedure between them will be terminated."

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DCNS will take over sole rights to build and sell the Scorpene, while Navantia will work on its S80 submarine.

"Scorpene submarines will from now on be built and marketed by DCNS. Similarly, S80 submarines will be built and marketed by Navantia," DCNS said. "Neither party will make any further comments."

Under a partnership agreement, DCNS and Navantia shared development and construction of the Scorpene submarine. The two former partners built large subsections in their respective yards in Cherbourg, northern France, and Cartegna, Spain, which were then assembled and delivered to export customers.

But relations between DCNS and Navantia deteriorated after the Spanish company launched its program to build the S80 submarine, which is equipped with a combat management system from Lockheed Martin. The larger S80 is based on an all-new design, which includes air independent propulsion and a land-attack cruise missile.

France has sold Scorpene boats to Brazil, Chile, India and Malaysia.





next indian submarine tender, will it be S80 ? :cheesy:
 
IAI to adapt G550 for maritime surveillance role
By Arie Egozi

Israel Aerospace Industries is offering a modified version of its Gulfstream G550-based conformal airborne early warning (CAEW) aircraft that has the capability to detect targets at sea and near shores.

The new version will retain the CAEW system's original airborne early warning capabilities, the company says.

"The need of many countries is to get a full picture of their sea border zone and integrate it into one big potential threat picture," says an IAI source.



© Israel Aerospace Industries


Currently used by the air forces of Israel and Singapore, the AEW-adapted G550 business jet carries a conformal dual-band active electronically scanned array radar. It also features an identification friend or foe system, electronic support measures and an integrated self-protection system, plus communications equipment designed to support network-centric operations.



india s coast gaurd is it intersted in similar systems ?
 
Indian Navy plans to procure diver propulsion vehicles

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Indian Navy is planning to buy propulsion vehicles for its diving teams that would enable them to carry out undersea clearing operations during combat in quicker time.

The Navy has issued a request to manufacturers of the original equipment for furnishing details of their products for a likely future global tender for the equipment, a Navy officer said here Sunday.

“The diver propulsion vehicle's essential role is to enhance performance of naval clearance diving teams during combat operations. The DPV will increase the reach of the naval combat diver thereby directly affecting the combat role outcome,” the officer said.

The DPV's length will be not more than three metres and it will weigh less than 80 kg. Driven by an electric battery, the vehicle will be able to carry two divers at a time in operating depths of 30 metres.

It will have a submerged speed of two knots and range of four nautical miles, while the surface speed would be 1.5 knots and range 2.5 nautical miles.

One of the conditions for the DPV that the Navy will consider before buying is minimum noise, both on surface and underwater, so that a stealthy diving operation can be carried out without the enemy detecting them, the officer said.

The shelf life of its battery will be three years and charging time less than 12 hours.

“We are looking for a light weight, portable DPV with compact and robust design to withstand extreme environmental conditions including pressure and temperatures from minus 15 to 40 degree Celsius,” the officer said.

The DPV will be deployable from air or boat and easy to operate with user-friendly controls, inbuilt navigation systems with depth gauges.

“The battery-operated propulsion system will be capable of functioning while submerged without requirement to recharge for at least 3 hours,” he said.

Indian Navy plans to procure diver propulsion vehicles :: Brahmand.com
 
^^^^
I guess we already have some.I think MARCOS use them.
I have seen the video on YouTube.
 
Indian MoD Announces More Competition in Naval Shipbuilding


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Three Indian Navy frigates during a multi-national naval exercise.
Antony: “Depending heavily on foreign countries is not good for us”






09:53 GMT, November 16, 2010 defpro.com | India’s Defence Minister Shri A.K. Antony plans to give fresh impetus to the Indian shipbuilding sector by allowing privately held Indian shipyards to participate in naval procurement tenders and, thereby, create greater competition in a market which was previously reserved to so-called Public Sector Undertakings (PSU) or foreign manufacturers. According to Antony, 65 to 70 per cent of the Indian defence equipment is currently being imported. His plan is to “reverse this trend”.

However, to bring a change to the defence segment, which is still dominated by state-run defence manufacturers, a new government policy for procurement of new equipment is required. In a speech on Thursday, in which Antony announced this major shift, he said: “January 2011 onwards we hope to introduce the new Defence Production Policy as well as the Defence Procurement Policy. [...] We are going to take some more drastic steps to achieve our goal of speedy indigenisation.” According to Anthony, this policy change towards an equal public-private competition in government procurement programmes will initially be limited to the Navy and would then gradually be extended to procurement procedures of the Army and Air Force.

Antony stated that the government’s aim is to support a strong indigenous defence industrial base and emphasised: “a country like India cannot indefinitely depend on foreign suppliers for majority of our equipments.” The process of indigenisation as yet was focussed on strengthening PSUs in their efforts to develop and manufacture defence equipment. However, many national procurement programmes have been troubled by delays, increasing costs and technical problems.

As defpro.com reported earlier this year, the Ministry of Defence and India’s Defence Research and Development Organisation (DRDO) exchanged blows in a general dispute on the delays in procurement programmes (see defence.professionals | defpro.com). After the DRDO was criticised for various delays in defence projects, the organisation’s chief, V K Saraswat, defended the DRDO’s performance and accused, in particular, the Armed Forces of preferring the procurement of existing, foreign solutions over indigenously developed and manufactured defence systems. “The services also must understand that while the temptation may be overwhelming to field proven, state-of-the-art imported systems, they (domestic industry) too have a role to play in the economic and industrial growth of the country. No foreign system can be customised to completely address our long term requirement,” he said in May.

In a written statement to members of the Parliament of India in early May, the Defence Minister laid out the delays and increases of costs of prominent defence programmes. These include the Tejas light combat aircraft (4 years delay), the development of a naval light combat aircraft (more than 4 years delay), the Integrated Guided Missile Development Programme (more than 15 years delay) as well as the engine for the light combat aircraft (14 years delay) (More details at defence.professionals | defpro.com, “Delayed Projects of DRDO”). Minister of State for Defence Shri MM Pallam Raju also put his finger on this weak spot by pointing out the need of competitive and reliable PSU’s and Ordinance Factories (OFs), adding: “We should strive hard in ensuring adherence to delivery schedules so that our Defence PSUs and OFs will also emerge as reliable global players in the field of Defence Production.”

Ongoing huff between the Defence Ministry and the DRDO, OFs and PSUs may be a unique chance for privately held Indian defence companies to get their foot in the door and take advantage of a more competitive national market. It will furthermore open up opportunities for foreign investment in Indian companies, in particular in shipyards, and far-reaching industrial co-operation with international partners. This may also increase technological capabilities and knowhow of Indian companies and create additional jobs.

Antony clearly outlined the path for both PSUs and the private sector to begin as of next year: “There is no option, but to remain globally competitive and efficient and not rest on past laurels, or achievements. Both the Defence PSUs and the private sector must carve out respective niches for themselves, by developing their own fields of specialisation. These specialisations must complement each other’s efforts and thus generate an even more healthier and competitive environment.

In light of comprehensive plans to restructure the DRDO, in order to make the organisation more effective and to create a greater Armed Forces-DRDO-industry interface, the new policies must achieve a structural and political environment which allows the private sector to join research and development activities with interest to national security and to receive a transparent access to government procurement programmes. In his speech, Antony stressed the need for R&D and constant coordination between the DRDO and the Industry Partners. Thus, the mammoth political task of transforming the DRDO into a sustainable organisation for future Armed Forces requirements is being increased by the effort to converge the interests of the public and the private sector.


defence.professionals | defpro.com
 
Private Shipyards Pitch for Shipbuilding Orders

India Defence Online, New Delhi –The Indian private sector has finally been given an equal footing with state-run entities as the Indian government will allow private Indian shipyards to construct naval ships. The Defence Minister A K Antony has said that starting January 2011, state owned shipyards will have to compete with private ones for ship building contracts.

Hence, the Defence Acquisition Council (DAC) will no longer give any nominations to the defence shipyards for naval projects and they will have to compete with the private shipyards for the tenders. This major policy shift has been affected for the Indian Navy and will later be extended to acquisition by the Indian Army and Indian Air Force (IAF) as well.

The Indian Defence Ministry has also indicated the need for stronger indigenisation and cited that the “Buy Indian Make Indian’ will remain the major policy when it comes to procurement as this will augment a strong defence industrial base.

The current policy shift is a major impetus for private players who are in the shipbuilding business and will now be able to contest for building naval warships. This domain of building naval ships has been exclusive only to state-run firms until now. In fact, the Defence Ministry has cautioned the public sector units (PSUs) and the Ordnance Factory Board (OFB) to be ready for more competition from the Indian private sector.

The Indian private shipyards have been pinning their hopes on the Indian defence sector for some business. Companies like ABG Shipyard, Bharati Shipyard and Pipavav Shipyard have been tying up with international engineering companies like Rolls Royce, Wartsila Diesel and Yanmer Marine, among others, to get a share of the Indian defence sector. Pipavav Shipyard has been keen on the defence sector and is presently looking at various kinds of vessels for the Navy, which will be more complex and weapons-oriented. Bharati Shipyard has also built vessels for the Indian Navy in the past and is keen to work for the Coast Guard and the Indian Navy and build up volumes by actively participating in the Indian naval warships project. ABG Shipyard also hopes to secure orders for bigger vessels and bigger defence orders as the global shipping market is in turbulent waters. The private shipbuilding industry can have a multiplier effect on India’s economic output and can significantly increase indigenisation.

Private Shipyards Pitch for Shipbuilding Orders | India Defence Online
 
Indian Navy in Favor of Logistics Support Agreement with United States

2010-11-17 A report by Vishal Thapar for television news channel NewsX reveals that the Indian Navy is favourable towards a Logistics Support Agreement between India and the United States. The report further says that the Government is also in agreement and is clearing the ground for such a pact with the United States.

However one spoiler could be that this would be a peace time agreement which would require a case-by-case approval during wars. Embedding below is the video of the NewsX report:

YouTube - India seeks deeper military pacts with US
 
INS Jalashwa (ex-USS Trenton), the Indian Navy's largest landing ship, in the Bay of Bengal


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F-35 Testing: Catching Up with Schedule

With more aircraft joining the combined test force, the F-35 flight testing program gained momentum and, compared to the delays of past years, is now exceeding schedule. Overall, the program has completed 321 flights this year, and is working toward the total of 394 test flight for 2010. The program has logged 460 flights by early November 2010. Particularly impressive is the status of the Conventional Takeoff and Landing (CTOL) variant and the carrier variant (CV). The Short Takeoff and Vertical Landing (STOVL) variant F-35B is still behind schedule.

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Parallel to this progress, F-35 is also gathering momentum in the world market. Japan is likely to consider the aircraft in favor of the development of an indigenous 5th generation fighter. The U.S. administration is moving to clear the sale of a second squadron of 20 F-35s aircraft to Israel, given an agreement from Jerusalem for foreign policy concessions demanded by the White House. Lockheed Martin is also hopeful that the U.S. administration will approve its request to offer the F-35B or F-35C carrier version to India, replacing the Indian Navy fleet of Sea Harrier. India had already floated a request for information (RFI) for a carrier based fighter plane earlier this year. India is planning to launch several new aircraft carriers through the decade. For the near term, MiG-29K was selected as the principal naval aviation fighter aircraft.

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Interesting developments
 
^^^^6

Sounds tempting..

Let the 2 forces ( IAF and IN ) compete each other and we get the best of the best.:D
 

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