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Tata to set up $200 million helicopter unit in Hyderabad SEZ jointly with Sikorsky

Screaming Skull

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Hyderabad June 02, 2009,

Tata Advanced System Limited (TAS), a unit of the Tata group, will set up a helicopter manufacturing unit at the Aerospace Special Economic Zone (SEZ) in Adhibatla village near the Hyderabad international airport.

The Rs 1,000-crore project will be commissioned by June next year and will come up at a 50-acre facility in the SEZ on land leased by the state government-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The lease deed was signed by an APIIC official and Devender Kumar, chief executive officer of TAS, here on Monday after Major Industries Minister Kanna Lakshminarayana was sworn in.

TAS will be setting up the facility in collaboration with the US-based Sikorsky Aircraft Corporation, a subsidiary of United Technologies Corp.

The project was announced at the India Aviation meet in Hyderabad last year by Chief Minister YS Rajasekhara Reddy.

Lakshminarayana said the government is convinced that the project will promote the state as an aerospace destination.

APIIC Chairman BP Acharya said this would be a high-end facility and would generate 1,000 jobs directly and another 4,000 indirectly. The APIIC is promoting the SEZ on 250 acres and has roped in several defence and precision engineering units in the private sector. “This is a major investment project in the state,'' he added

The ground-breaking ceremony for the manufacturing unit will be held in a fortnight.

TAS had a collaboration with Israel Aerospace Industries to set up a surveillance systems facility also at the SEZ, officials said, adding that TAS operations would be spread to defence products as well and would be the focal point for a large number of high-tech activities.

Tata to set up Rs 1,000 crore helicopter unit in Hyderabad SEZ
 
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According to reports in the media, Tata Motors, which had taken over marquee UK automobile brands, Jaguar and Land Rover, earlier this year, is exploring the possibility to sell the aforesaid vehicles for the defence market worldwide, which includes countries like India, China, Russia, and certain Scandinavian countries. With nearly 60 years' experience, Land Rover provides armed forces around the globe with light 4x4 vehicles designed to meet a wide range of defence and peacekeeping roles. The standard defence vehicle line-up within Land Rover's range is based on the Defender heavy-duty 4x4 platform. In addition the company manufactures Freelander 2, Discovery 3, Range Rover and Range Rover Sport.

According to well-informed sources who requested anonymity, Tata Motors is charting out plans to aggressively expand its presence in the worldwide defence sector, including India and are in the process of cracking a number of defence deals from overseas and domestic markets.

The first Land Rover vehicle rolled off the production line in 1948. From the same location in Solihull, in the West Midlands of the United Kingdom, the factory now produces over 200,000 4x4 vehicles each year.

The original Land Rover was developed after the end of the Second World War to meet a demand from farmers worldwide for a tough and robust light four-wheel-drive vehicle. It has undergone constant evolution and development ever since.

Tata Motors eyeing the global defence market for Land Rover-WheelsUnplugged Automobile Industry News
 
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Looks like private participation in the Indian defence industry is gathering pace. Giants like TATA, L&T etc. have gobbled up the opportunities provided to them by the govt.
 
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Looks like private participation in the Indian defence industry is gathering pace. Giants like TATA, L&T etc. have gobbled up the opportunities provided to them by the govt.
And TATA is building more and more ties with US companies which will put pressure on deals like MMRCA.
I also read articles about LM, EADS and Saab making deals with Indian companies, but nothing about Dassault. Do you have any infos about that?
 
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And TATA is building more and more ties with US companies which will put pressure on deals like MMRCA.
I also read articles about LM, EADS and Saab making deals with Indian companies, but nothing about Dassault. Do you have any infos about that?

That s not a problem at all. The GoI limits FDI in defence sector to just 26% with 100% equity. That way the majority stake in the joint venture will be held by the Indian firm. These JVs will compete directly for Indian and foreign tenders. To put it in simple terms it will be like a Maruti-Suzuki or Mahindra-Renault for the Defence sector. The bigger foreign companies will have to transfer tech to their Indian counterparts which with the help of local R&D and cheap manpower will bid for several contracts. Come to think of it, this way the Indian defence sector will become more competitive and professional. Companies like HAL, BEL, BHEL etc and labs like DRDO will loose their monopoly over the Indian defence market.
 
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this is very good news. The pvt. sector has shown that they can compete with the best in the world.

With their Project Management skills we shall be seeing new defence projects getting completed in time.
 
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And TATA is building more and more ties with US companies which will put pressure on deals like MMRCA.
I also read articles about LM, EADS and Saab making deals with Indian companies, but nothing about Dassault. Do you have any infos about that?

seem indian corporate secter backing Boeying's F-18SH in MMRCA deal...
 
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good stuff, given some time I think India can build a potent military industrial complex, 10-15 years and things should be looking good.

on a side note, do you guys have any idea why the IAF has such a high crash rate? Every time something of that sort happens in the US, they have a detailed inquiry, changes are made and precautions put in place. There is always a degree of accountability. How come this doesn't happen in the motherland? or maybe it does and I didn't read about it?
 
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good stuff, given some time I think India can build a potent military industrial complex, 10-15 years and things should be looking good.

on a side note, do you guys have any idea why the IAF has such a high crash rate? Every time something of that sort happens in the US, they have a detailed inquiry, changes are made and precautions put in place. There is always a degree of accountability. How come this doesn't happen in the motherland? or maybe it does and I didn't read about it?

Hi Spitfighter! First of all welcome aboard. Hope you have a great time at pak.defence. I see that you have already started off with some meaningful posts.

Coming to the crash rate of IAF. Yes it is on the higher side. That is mainly because of our outdated inventory which is mostly of Russian origin. Hope I needn't explain to you the difference between Russian and Western hardware in terms of reliability. Also, till the late 90s India was operating under severe economic constraints and our defence budget wasn't on par with requirements. Thus we had to drag on with old inventory.

However, when you talk about comparisons for crash rate, you must also take into account the number of sorties undertaken in a specific year between different air forces. I won't elaborate much but I suggest you take a look at the following link. It is a pretty old article, but a good read nonetheless. I hope things have changed for good on both sides since then.

BHARAT RAKSHAK MONITOR  Volume 2(4)
 
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Hi Spitfighter! First of all welcome aboard. Hope you have a great time at pak.defence. I see that you have already started off with some meaningful posts.

Coming to the crash rate of IAF. Yes it is on the higher side. That is mainly because of our outdated inventory which is mostly of Russian origin. Hope I needn't explain to you the difference between Russian and Western hardware in terms of reliability. Also, till the late 90s India was operating under severe economic constraints and our defence budget wasn't on par with requirements. Thus we had to drag on with old inventory.

However, when you talk about comparisons for crash rate, you must also take into account the number of sorties undertaken in a specific year between different air forces. I won't elaborate much but I suggest you take a look at the following link. It is a pretty old article, but a good read nonetheless. I hope things have changed for good on both sides since then.

BHARAT RAKSHAK MONITOR* Volume 2(4)

Thanks Screaming skull, I'll have a look at the link. And thank you for welcoming me, there are some good people on here, educated and intelligent, I hope I can learn a thing or two...

cheers:tup:
 
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Here is one more article on Private sector participation in Indian defence market! Just what I said before, TATA & L&T have gobbled up the opportunity provided to them.


Tue, Jun 2 2009

  • In 2002, India opened up defence equipment production to private sector companies and even allowed up to 26% foreign direct investment in such ventures

  • India’s market for MALE drones is expected to touch $800 mn by 2016

Bangalore: In a first for an Indian military aircraft programme, private sector firms Larsen and Toubro Ltd (L&T), Godrej and Boyce Manufacturing Co. Ltd and Tata Advanced Systems Ltd have bid to develop and build an unmanned aerial vehicle (UAV), or drone, used in surveillance operations.
The three companies, and a fourth bidder—a combine of state-owned defence equipment makers Hindustan Aeronautics Ltd and Bharat Electronics Ltd—submitted their bids on 15 May to the Defence Research and Development Organisation (DRDO) for the medium-altitude, long-endurance (MALE) aircraft, named Rustom, which will be designed to fly at least 250km at a stretch.

“Now, a technical evaluation will be done before identifying the lead partner,” said P.S. Krishnan, director of the Aeronautical Development Establishment (ADE), the DRDO unit that has built drones such as Nishant for the military. He said a decision would be taken later this year.
The three private sector firms declined to comment.
Given the sensitive nature of defence projects, private firms had been restricted to being component suppliers or sub-contractors in military plane programmes, while state-owned agencies or firms such as DRDO and Hindustan Aeronautics have led and managed the projects.
In 2002, India opened up defence equipment production to private sector companies and even allowed up to 26% foreign direct investment in such ventures.
In the US, private sector companies such as Boeing Co. and Lockheed Martin Corp. compete for military plane projects. The F-16 is built by Lockheed, while Boeing builds the F-18. Both firms get enormous support from the US government.
Russia and China, on the other hand, allow only state-funded firms to build planes for their military.
L&T, India’s largest engineering company, Godrej and the Tata group have dedicated divisions that supply parts to the country’s space and aerospace industry.
Godrej & Boyce supplies the Vikas engines for India’s rockets, while the Tata group builds components for Hindustan Aeronautics, DRDO and the Indian Space Research Organisation.
L&T makes military vessels for the Navy, and has built a radar with Bharat Electronics for the Army, in addition to being involved in other aerospace projects.
ADE is testing a technology demonstrator, or a bare prototype, of Rustom. Once a vendor is selected, it and ADE will design an enhanced version of Rustom, which is meant to replace the Israeli Heron drones currently in use.
Typically, the cost of producing one set of five Rustom vehicles with five sets of spares, payload and ground handling equipment would be around Rs250 crore, ADE said in its tender.
The partner, once selected, will build the drone, test and certify it, and provide maintenance services. It will also work on converting Rustom into an unmanned combat aerial vehicle, in addition to developing future versions of the drone.
India’s market for MALE UAVs, the class of drones used for surveillance, border patrolling and exploration, is expected to touch $800 million (Rs3,768 crore) by 2016, according to research firm Frost and Sullivan.
Despite India being a major customer for global military aircraft makers, its own aerospace industry is nascent. The country has built a few aircraft such as Tejas, a light combat aircraft; Dhruv, an advanced light helicopter; Saras, a 14-seater passenger plane; and Nishant. Only Dhruv and Nishant have been inducted into the forces.
None of these projects involved private sector firms in design and development.

Tata, L&T, Godrej & Boyce put in bids for drone project - Home - livemint.com
 
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3 Jun 2009

NEW DELHI - The monopoly held by India's state–owned aeronautic manufacturer, Hindustan Aeronautics Ltd. (HAL), has been broken by the private firm Tata Advanced Systems Ltd. [TASL], which struck a joint venture with U.S.-based Sikorsky Aircraft to manufacture helicopters here.

An executive of TASL said the helicopters will be built for both defense and civil purposes, and include utility and strike versions for the armed forces.

Sikorsky is already in the race for India's program to procure 197 utility helos, along with AgustaWestland of the United Kingdom, Eurocopter of France , Kamov of Russia and Bell Helicopter of the United States.

The joint venture between TASL and Sikorsky is being set up near the central Indian city of Hyderabad in an Aerospace Special Economic Zone. The joint venture will be built at a cost of $200 million and the plant will be commissioned in one year, added the TASL executive.

Tata Group, which is the parent of TASL, already has an agreement with U.S. aerospace major Boeing to handle an initial $500 million of defense-related aerospace component work in India for export to Boeing.

Last year, TASL announced that it is joining hands with EADS to bid for the Indian Army's $1 billion advanced tactical communications system project. TASL also signed a memorandum of understanding last year with Israel Aerospace Industries to set up a defense technology company in India to jointly produce a wide range of defense and aerospace products.

Tata-Sikorsky Deal Ends HAL Aerospace Monopoly - Defense News
 
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Saturday, Jun 13, 2009

HYDERABAD: The Tata Group and Sikorsky Aircraft Corp., a subsidiary of United Technologies Corporation, have completed an agreement for manufacture of Sikorsky S-92 helicopter cabins in India.

Facility in Hyderabad

The first cabin is scheduled for delivery in late 2010 from a new greenfield facility that Tata Advanced Systems Ltd. (TASL) will construct in Hyderabad, said a press release issued by Sikorsky.

S-92 is the first helicopter in its class certified by the US Federal Aviation Administration (FAA) to the most rigorous standards. Nearly 100 S-92 helicopters have been produced to date and the worldwide operating fleet has accumulated more than 1.50 lakh flight hours.

The aircraft perform a variety of missions including search and rescue off the UK coast, serve as transport for leaders of several nations and the helicopter of choice for transporting oil workers to offshore platforms.

“We are excited and proud to have the highly admired Tata Group join our global supply chain”, said Sikorsky President Jeffrey P. Pino. Speaking on the occasion, Chairman of Tata Sons, Ratan N. Tata said “we are pleased to enter into a long term supply relationship with Sikorsky and believe that the manufacture of the S-92 cabin in India is a significant first step in the growth of India as a global hub for aerospace manufacturing.”

The Hindu : Business : Tata to make copter cabins
 
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Mh, the S92 failed to win the VIP helicopter competition against AW 101, but the Navy has a competition running for new ASW helicopter replacing Sikorsky SH-3 Sea King and maybe Kamov Ka 31, where it could be an option.

CH-148 Cyclone - Wikipedia, the free encyclopedia

The size could be a problem (nearly 21m length), does it fit in the hangar of our new destroyers?
 
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