http://www.tribuneindia.com/2014/20140210/nation.htm#3
US, Israel ready to sell anti-tank missiles
Have made
competing offers to India for joint production, co-development
Ajay Banerjee
Tribune News
Service
New Delhi,
February 9
The American and
Israeli governments have made separate competing offers to India on joint
production and co-development of specialised anti-tank missiles. The Indian
Army is looking to have an inventory of 20,000 pieces of anti-tank guided
missiles (ATGMs) to equip its 355 infantry units besides the mechanised
infantry units. These can be shoulder-fired or be mounted on armoured platforms
such as BMPs. The contract may end up being worth $ 4 billion (Rs 24,000
crore).
The US delegation
at the ongoing Defexpo confirmed this yesterday, while sources said the Israeli
offer was near-identical.
India is set to
split the order into two, sources on the Indian side told the Tribune. US
Raytheon’s ATGM ‘Javelin’ and Israeli Rafale’s ‘Spike’ are on display at the Defexpo.
For New Delhi, it
indicates a strategic shift, away from the till-now used Russian built
‘Konkurs-M’ and the French ‘Milan’ ATGMs.
The US and Israeli
missiles are a generation ahead of the existing lot used by the Army, an Indian
official said.
In the past four
years, new inductions to Indian Air Force’s fleet of strategic planes and the
Navy reconnaissance planes have been of US origin, ending a virtual
Soviet/Russian monopoly over the market.
Several of the
radars in the Indian inventory, including the Phalcon mounted on the Russian
IL-76, are of Israeli origin.
Backing the US bid
is the fact that US Deputy Secretary Defence Ashton Carter has proposed this
under the Defence Technology Trade Initiative (DTTI). He co-chairs the DTTI
with National Security Adviser Shiv Shankar Menon.
“The US offers India joint
development of the next generation of the Javelin under the DTTI,” said Steve
Schultz of Raytheon.
On the Israeli side the
delegation is led by a Director-General rank official from their Defence
Ministry. An Israeli source said: “We are ready for a government-to-government
deal with India”. The “Spike” is used in 28 countries, including in Europe.
It is possible that the
Israeli “Spike” could be used as a vehicle-mounted weapon, while the “Javelin”
could be used in a shoulder-fired version.
Indian Army proposes to buy
321 “Spike” missile launchers, 8,356 missiles and 15 training simulators and
associated accessories, along with transfer of technology. It is also looking
at buying 6,000 pieces of the “Javelin” and with repeat orders running into
thousands.
Boosting firepower
The Indian Army is looking to have an
inventory of 20,000 anti-tank guided missiles
US Raytheon's missile 'Javelin' and Israeli
Rafale's 'Spike' are on display the Defexpo
These missiles are a generation ahead of
the existing lot used by the Army
India is set to book orders for both
missiles
http://www.tribuneindia.com/2014/20140210/nation.htm#12
India, China to discuss boundary issues today
Ashok Tuteja
Tribune News
Service
New Delhi,
February 9
New Delhi is
looking positively at “encouraging” comments made by Beijing on the complex
relationship between India and China on the eve of the 17th round of talks
between their Special Representatives (SRs) on the boundary dispute.
National Security
Adviser Shivshankar Menon will host Chinese State Councillor Yang Jiechi, a
former Foreign Minister, at the two-day meeting that will begin on Monday.
The Chinese
Foreign Ministry spokesperson said Beijing wanted to make the India-China
boundary a bridge to facilitate exchanges and increase friendship between
people of the two countries.
“It’s a positive
statement...hopefully, the meeting between the two SRs will lead to progress in
resolving the boundary question,” a source said.
This will be the last meeting
between the SRs of the two countries before the Lok Sabha elections. Menon will
be assisted by senior officials of the External Affairs and Defence Ministries.
The visiting Chinese leader is
expected to call on Prime Minister Manmohan Singh at the end of the talks.
He will also be inaugurating
the “Year of India-China Friendly Exchanges” at a function here on Tuesday.
It is learnt that the two SRs
will hold discussions on a framework for a resolution of the boundary question,
which constitutes the second step of a three-stage process.
In the last round, the two
sides had discussed the maintenance of peace and tranquillity along the border,
including ways and means to strengthen existing mechanisms for consultation and
coordination on border affairs and methodology to enhance the efficiency of
communication between the two sides.
The last round was held in
June last year, days after a tense three-week standoff between troops of the
two countries in Ladakh region, following incursion by the People’s Liberation
Army (PLA) into the Indian territory.
Subsequently, the two
countries had signed a Border Defence Cooperation Agreement (BDCA) during the Indian
PM’s visit to Beijing in October last year.
http://www.business-standard.com/article/companies/reducing-defence-imports-will-boost-manufacturing-baba-n-kalyani-114021000006_1.html
Reducing defence
imports will boost manufacturing: Baba N Kalyani
The Kalyani group
showcased a prototype howitzer at the Defence Expo last week. Chairman Baba N
Kalyani says in an interview with Jyoti Mukul that the Pune-based manufacturing
and engineering giant wants to place itself as a major player in the artillery
business as India opens defence procurement to private players. Edited
excerpts:
How do you view
your growth in the defence business?
Our group has been
in the segment for decades. We have been a regular supplier of many important
items like the T-72 road wheels, ready-to-fill ammunition shells and wheel rims
& axles.
A large amount of
this equipment is supplied through other OEMs (original equipment
manufacturers). Currently, it is less than a per cent of our group's turnover
but in 10 years, we should be a major artillery house globally. For this, we
first need to get a base in India.
And, the
government needs to come out with RFPs (request for proposals) that are
make-and-buy-Indian. Under our gun programme, we have come out with the
howitzer in less than two years. Now, we need to get the product tested and
approved. We are also working on an ultra-light howitzer.
Besides, there
will be products like truck-mounted guns and other systems, the L72 gun,
ammunition and mine-protected vehicles.
After your venture
with Israel's Elbit, are you looking at more tie-ups?
We are looking at
organic (increasing the business) and inorganic (through mergers &
acquisitions) growth. For this, we are increasing our capability and also
creating joint ventures that will allow modern technology to come into our
business.
We have
established a joint venture with Elbit Systems and are attempting a number of
large programmes. We are hopeful this will add significantly to the growth.
There is also a
collaboration with SAAB, the Swedish defence conglomerate, for some systems
required by the Indian Army.
How will the
business be structured between Kalyani Strategic Systems and joint ventures?
Kalyani Systems
will be the holding company for the defence sector. Artillery will be under BF
Elbit Systems. In future, there could be joint ventures in fields such as
electronics and controls. These are areas where we do not have knowledge, so we
have to find someone who has the capability. We are good at hardware. As more
procurement decisions by the defence ministry happen, all these partnerships
will come up.
In which areas in
the defence segment do you see new opportunities?
We are focusing on
land systems that includes major areas of artillery systems — armoured vehicle
upgrades, air defence segments, protected vehicles and precision ammunition.
Currently, we have come out with a prototype of a gun. We are not manufacturing
right now but it has created huge capability in the company. Our philosophy is
to innovate and also get technology.
Does India's
defence procurement policy encourage better technology and private investment?
India imports
three-fourths of its defence requirement but the new defence procurement policy
lays stress on indigenisation. Major opportunities in engineering manufacturing
in India lie in power, capital goods, automobiles, oil & gas, railways and
defence.
We have a good
policy framework but it needs to be operationalised. We also need to cut the
length of the acquisition cycle. There are small operational issues with
respect to licensing, foreign exchange rate variation and taxes & duties,
which need resolution. Opening the defence sector for domestic industry and
reducing imports will give a boost to the manufacturing sector in India. The
technology that will come with this will have a multiplier effect and will add
value to other sectors as well. It should be a strategic mission for this
country.
http://www.business-standard.com/article/companies/ashok-leyland-looks-to-grab-defence-sector-market-114020900531_1.html
Ashok Leyland
looks to grab defence sector market
Looking for a bigger play in the defence
sector, Hinduja flagship firm Ashok Leyland is in talks for partnerships with
global companies to participate in tenders for Indian military supplies as it
expects the segment to grab a 10% share of total business within 4 years.
The company, which
is expanding product lines and integrating global weapon systems with its
mobility platforms as part of a two-pronged strategy, is also looking at global
markets similar to India to export its defence products.
"Our aim for
the defence segment is to contribute about 10% of the total business in the
next three to four years, up from the current 6-7% ," Ashok Leyland Chairman
Dheeraj Hinduja told PTI in an interview. In FY2012-13, the company had posted
net sales of Rs 12,203.07 crore. In the April-December period this fiscal, its
net sales stood at at Rs 6,714.78 crore. It has already participated in a
tender to supply 6x6 trucks to the Army and is preparing itself for more.
"We understand the requirements of the Army well," Hinduja said. Leyland has supplied over 70,000 units of its
Stallion trucks to the Indian Army, serving in key logistic operations.
With the addition
of a 10x10 variant of its Super Stallion, Ashok Leyland now has a range of
defence vehicles starting from 4x4 configuration with wide ranging applications
from troop carriers to weapons systems such as the multi barrel rocket launcher
to electronic warfare systems and bridge launcher, among others.
Besides, the firm
is working on tactical vehicles and has already developed a land mine protected
vehicle. It is confident that its long experience in the sector will make it a
preferred choice for foreign firms that are looking for local partners to
participate in tenders for Indian defence forces.
"We are
looking at partnerships with global firms and we are constantly in talks with
various firms. These will be for tenders that we would participate,"
Hinduja said, adding the focus of the partnerships would be to meet tender
requirements and not for new defence product development.
Last week, Ashok
Leyland signed a partnership agreement with Swedish group SAAB to deliver high
mobility vehicles for SAAB's BAMSE Short Range Surface to Air Missile (SRSAM)
system to compete for the Indian Army SRSAM air defence programme. Commenting
on the company's global ambition for the defence sector, Hinduja said: "We
are looking not only at the Indian market for this sector. We are looking to
market our products to other countries, where conditions are similar to India.
http://www.newindianexpress.com/thesundaystandard/Pony-Tales-From-the-Chinese-Border/2014/02/09/article2045946.ece
Pony Tales From
the Chinese Border
Quit horsing
around, seems to be the message when it comes to the Army’s pony express. The
DRDO’s Defence Institute of High Altitude Research (DIHAR) laboratory in Leh
has crossbreed Zanskar ponies which are native to the Zanskar valley in Ladakh
region with the Austrian Halflinger male, a draught purpose breed.
The Indian Army is
in the process of breeding some 10,000 crossbred Zanskar ponies to be supplied
over a period of five years. These horses are said to be a more sturdy and
disciplined lot than the mules presently used for ferrying ration, arms and
ammunition for soldiers in high altitude zones not accessible by vehicle.
It was not an easy
task as it took eight years for scientists at the Defence Research and
Development Organisation (DRDO) to succeed in meeting the Indian Army’s
requirement of ponies, which are lifeline for soldiers in the mountain region
of Kashmir valley.
Following the
successful trials of Zanskar ponies in Kargil region, DIHAR has now transferred
the germplasm, which includes semen and other tissues that can be used for
breeding, to the Army’s Remount Veterinary Corps (RVC) for further breeding of
ponies to meet the demand of Indian Army.
“The difficult mountainous
terrain of the Himalayan region poses a formidable challenge for military
operations. The strategic importance of guarding them to prevent hostile
infiltration requires huge deployment of troops along with logistic supply
chain and ponies play a very important role in it,” said DIHAR Director Dr R B
Srivastava.
The Indian Army has been using
mules which are being bred and trained at sea levels and subsequently deployed
in high altitude. But most of these mules, close to 10,000 are in use at
present, suffered from lack of high altitude adaptability and succumbed to
various maladies thus, affecting the operational efficiency and preparedness of
units.
“It was also found that the
mules lose their tracks and their weight carrying capacity was not much. So
some seven-eight years back we were told to identify and propagate pack-animal
for army transport which is more disciplined, resistant to high altitude
related maladies and has more load carrying capacity,” he said.
DIHAR got an Austrian
Halflinger male as the breed is known for its hardiness and crossbred with the
Ladakhi Zanskar ponies. The progeny produced using artificial insemination was
put to field trials with Ladakh Scouts and are found to be the best transport
animals for military transport in this region.
“These crossbred ponies are
sure-footed to negotiate narrow tracks and their weight carrying capacity is
about 50-60 kilograms. They can also carry heavy artillery guns and
ammunitions. They can survive on local feed and fodder and require less feed.
In case of emergencies, they can be deployed without any acclimatisation,” said
another scientist, who is part of the project. However, he refused to disclose
the costs involved in the pony breeding project, which is part of their other
animal breeding programmes.
Equines have been playing
significant role in defence forces since time immemorial. Even in today's era
of modernisation, the equine draught power cannot be done away with in many
strategic areas of the Kashmir valley.
“Their importance has been
amply demonstrated during the India-Pakistan Kargil war in 1999, when mules
were used to carry all logistics and ammunition supply,” the scientist said.
http://www.eurasiareview.com/08022014-run-indias-defence-budget-2014-15-challenges-modernisation-analysis/
Run Up To India’s
Defence Budget 2014-15: Challenges To Modernisation
– Analysis
By Laxman K Behera
In mid-February,
the Finance Minister would present the Interim Budget 2014-15 to the Parliament
in which he would seek Vote-On-Account (VOA) to enable the government to meet
the essential expenditure till such time that a new government assumes power
and present a regular budget. Although the VOA is of short-term relevance, the
interim budget would nonetheless contain the estimates of both revenue receipts
and expenditure for the full financial year. It is the prerogative of the next
government to revise the estimates and present a regular budget as per its
priorities it perceives. Defence being a major charge on the Union Budget, it
is worthwhile to analyse the likely impact on it by the unfolding scenario.
Some of the likely challenges that the defence ministry would likely to face
are discussed as under.
The first and
foremost challenge that the defence ministry would face is the impending
general election and its likely impact on the union budget as a whole, and the
defence budget in particular. It is commonly viewed that in an election year,
the incumbent government is tempted to present a populist budget. In that
scenario, the Ministry of Defence (MoD) would have reasons to be unhappy,
particularly so when the modernisation requirement of the Indian armed forces
has reached a stage which is now contingent upon substantial additional
resources to remain on course. Nothing would perhaps describe the grave
situation better than the overwhelming share of committed liability (arising
out of contracts already singed) in the MoD’s total modernisation budget. By
2013-14, the committed liability has reached 96 per cent (in comparison to 92
per cent in the preceding year), meaning that only four per cent (or Rs 2,956
crore) of MoD’s total capital modernisation budget (of Rs 70,489 crore) is
available for signing new contracts. Any further tightening on the
modernisation budget in the coming financial year would definitely affect the
on-going modernisation process.
Assuming that the
government defies the common logic and provides ample resources to the defence
ministry, there is still very little one can expect on the modernisation front.
Since the number of days before a new government comes into power is limited,
the incumbent government would unlikely to take decision on major armament
programmes which have reached fairly a high stage of contract negotiation.
Rather the responsibility to take decision on major acquisition proposals would
be shifted to the new government which would also find it difficult to expedite
the process given the various oversight concerns that often surround the
defence procurement. Given this scenario, the year 2014-15 may well be a year
of inaction, as far as modernisation of the Indian armed forces is concerned.
Some of the modernisation programmes which are likely to be subjected to this
inaction are: the ultra-light howitzers and javelin programmes of the Indian
Army; and the medium multi-role combat aircraft (MMRCA), heavy lift and attack
helicopters, and tanker aircraft of the Indian air force.
The second
challenge that the defence establishment would likely to face is related to the
growth prospect of the Indian economy. It is noteworthy to mention that the GDP
growth for 2013-14 is expected to be around five per cent, which is lower than
6.1-6.7 per cent estimated by the government initially. The economic slowdown,
combined with the tight fiscal situation has already led to tightening of the
government purse. What is of more relevance is that the growth prospect in the
coming years would also remain subdued although some improvement is expected.
According to a recent UN report, the World Economic Situation and Prospects
2014, the Indian economy is likely to grow by 5.3 per cent and 5.7 per cent in
2014 and 2015, respectively. This is in stark contrast with the high annual
growth rate of 8-9 per cent registered few years ago.
While the subdued
growth prospect of the Indian economy in the coming years would limit the
spending capacity of the government of the day, it would, at the same time,
have a major consequence on the defence. It is to be noted that current phase
defence modernisation, which is an offshoot of the armed forces’ long term
integrated perspective plan (LTIPP) 2012-27 and the Five Year Capital
Acquisition Plan, is premised on a high economic growth rate (7-8 per cent
annually) and a larger share (around three per cent) of the GDP on defence.
Compared to this optimism, the economy forecast is rather gloomy and, the share
of defence in GDP is not expected to be drastically different from the current
1.76 percent. Given this, mismatch of a huge proportion is expected in the
coming years between the expectation of the armed forces and what the
government could actually provide to meet such expectations.
What is of
significance to debate here is that the MoD does not have an institutional
mechanism to address the challenges expected in the coming years and prioritise
its modernisation plan accordingly. It is to be noted that the modernisation
approach followed by the MoD so far is something like a ‘first come first serve’
(i.e., a service which succeeds in processing its procurement proposal first,
gets the government approval. It does not give due importance to the needs of
other service (s) which may be of greater significance but is struck in the
bureaucratic process). This may serve the procurement requirement of a
particular service, but may not be an ideal solution to address the
modernisation issue holistically, keeping in view the resource constrain. Since
the challenges, as discussed above, are serious, what the MoD needs now is to
have an institutional capability to prioritise its modernisation plan keeping
in view the likely shortage of funds and the vital security requirements of the
country.
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