Eye on defence

April 2012

Dear readers,
Indian defence budget 2012-2013:
an analysis

02

DOFA: a single window mechanism

08

Alenia: C-27J SPARTAN Tier 1s

13

Request for Information (RFIs)

15

Request for Proposal (RFPs)

16

List of industrial licenses (ILs) filed

from 01/01/2012 TO 29/02/2012

17

New projects/investments/contracts

18

Joint ventures and alliances

21

Country-level deals and initiatives

23

Industry buzz

24

Sources

28

The first quarter of the New Year has witnessed some significant
developments in the Indian defence sector.
Recently the 7th Defence Expo was held in Delhi in the last week
of March. There was certainly some reduction in the fanfare and
glamor, which was expected following the MMRCA decision. The
coinciding of the Defexpo with the financial year closing also had an
impact with most senior level representatives of Indian companies
being present only for selected periods of time.
The Union Budget was also presented in the Parliament on 16 March 2012. Keeping with
the trend the defence budget was increased by double-digit percentage points (17.6%) over
the previous year. With the MMRCA now almost certain to be signed within this fiscal, the
adequacy of the defence budget is likely to be tested.
Last but not the least, there were a flurry of articles in all major news-papers and the
internet about the amendments to the Offset policy. Noticeably these amendments
permitted ToT as offsets and also intro duced the concept of multipliers. However there
has been no official statement or release or document uploaded on the MoD website to this
effect.
In our current issue, we have analyzed the latest defence budget; proposed certain
methods of imple-menting the recent changes to the offset policy (official announcement
awaited) and described the Tier-1s of Alenia Aermacchis C-27J SPARTAN platform,
which is in contention for multiple programs in In-dia.
We hope you enjoy reading this issue of the Eye on Defence. It has been our constant
endeavor to make this publication more relevant to you and would appreciate your
comments and suggestions in this re-gard.

K. Ganesh Raj
Partner and Leader
Aerospace and Defence Practice

Indian defence budget

201213: an analysis
The Government of India (GoI) in its Union Budget 2012-13 has earmarked INR1,934 billion
(US$42.97 billion) for defence, increasing it by 17.6% as compared defence allocation of
INR1,644 billion (US$36.536 billion) in 201112. The defence budget 201213 accounts
for 12.97% of the total government expenditure and 1.9% of GDP. INR795.79 billion
(US$17.68 billion) has been allocated for capital expenditure and INR1,138.28 billion
(US$25.29 billion) has been allocated for revenue expenditure. The attached diagram
shows the defence budget allocations (including capital and revenue) in the last three years:

Amount in USD billlion

Defence budget = Capital + Revenue

50
45
40
35
30
25
20
15
10
5
0

36.75

32.74

21.38

19.41

15.37

13.33
2010 - 2011
Capital

Revenue

2011 - 2012

42.97

25.29

17.68
2012 - 2013

Total defence budget

Share of services
In 201213, the Army with an approximate budget of INR969.43 billion (US$21.54
billion) accounts for the highest share of around 50%; at a distance followed by the Air
Force with INR475.59 billion (US$10.56 billion), which accounts for 25% of the defence
budget and the Navy, with an approximate budget of INR217.58 billion (US$4.83 billion),
which accounts for 19% of the total defence budget. Defence Research and Development
Organization (DRDO) with INR106.35 billion (US$2.36 billion) allocation, and ordnance
factories (OFs) with INR4 billion (US$0.088 billion) allocation together account for 6% of the
total budget. The pie diagram depicted below gives us the percentage shared by defence
services in Defence Budget 201213:

Eye on defence | 2

Share of defence services in defence budget 201213

Indian Navy
19%

Indian Air Force

24%

OF+DRDO
6%
Indian Army
50%

Miscellaneous
1%

Capital expenditure
The capital expenditure, which is meant for acquiring new weapon systems and platforms
has been scaled up to INR795.79 billion (US$17.68 billion), a 15.7% hike from last
years capital allocation of INR691.99 billion (US$15 billion). However, the actual capital
expenditure (revised estimates) was INR661.43 billion in 201112, which will mean that
actual hike is around 20%. In other words, this year the MoD surrendered INR30.56 billion
(4.41%) as unspent from its capital head. But, the overall share of capital expenditure as
a part of total defence expenditure has actually fallen to 41.11% from 42.09% from the
previous financial year.
Share of capital: Revenue 2011-12

Share of capital: Revenue 2012-13

Capital expenditure
42%

Revenue expenditure
58%

Eye on defence | 3

Capital expenditure
41%

Revenue expenditure
58%

Currently, all the three segments of the Armed Forces, the Army, the Navy and the Air
Force, are on a transformation drive to acquire platforms and weapons with cutting-edge
technology, which are expected to be finalized in 201213. The graph given below shows
the sub allocations and percentage share, out of the total capital outlay allocated to the
different services:
The capital acquisitions allocations has
to cater for committed liabilities for the
Miscellaneous
year from the orders signed previous
2%
years and are likely to be incurred on
Naval Fleet
IA
17%
account of the fresh schemes, during the
24%
financial year. The committed liabilities
OFB
as on date are around 65%70% of the
1%
total capital outlay, thus leaving around
30%35% only for new schemes. Under
DRDO
6%
the capital head, of the INR795.79 billion
(US$17.68 billion) nearly 70% or around
IN
IAF
12%
INR550 billion (US$12.22 billion) will
38%
be for committed liabilities, thus leaving
around INR250 billion (US$5.55 billion)
for fresh purchases. With the impending
defence acquisitions, the ability of
IA: Indian Army; IN: Indian Navy; IAF: Indian Air Force;
DRDO: Defence Research & Development Organization;
the GoI to complete new purchases is
OFB: Ordnance Factory Board
comparatively more limited than before.
Among the deals in the final stages for
which the capital expenditure is likely to be spent upon include 126 fighter jets for US$20
billion, six mid-air refuelling aircraft for US$2 billion, 75 trainer aircraft for US$1 billion,
US$647 for 145 Ultra Light Howitzers (ULH), 197 utility helicopters for US$750 million, 22
attack choppers valued at US$600 million and GE F414-INS6 engines for indigenous Light
Combat Aircraft (LCA) Tejas and Harpoon anti-ship missiles estimated at US$170 million.
Besides, a US$1.18 billion deal to procure 490 MICA missiles for Mirage 2000H multi role
fighters, 42 additional upgraded Sukhoi-30 MKI aircraft, around 40 warship of the Navy,
including refurbishment of an aircraft carrier and nuclear-powered submarine, are under
construction at home and abroad.
Capital expenditure 201213: Service wise

Revenue expenditure
Revenue expenditure 201213: Service wise
DRDO
5%
IN
11%

IAF
16%

IA
68%

IA: Indian Army; IN: Indian Navy; IAF: Indian Air Force;
DRDO: Defence Research & Development Organization;
OFB: Ordnance Factory Board
Eye on defence | 4

In the budget for 201213, the

revenue expenditure, which caters to
the everyday operating expenditure
of the three services has been raised
to INR1,138.28 billion (US$25.29
billion) as compared with last years
revenue allocation of INR1,035 billion
(US$23.62 billion).

Defence budget 201213: key statistics

The defence budget for 201213 has been increased by 17.6% over the previous years
allocation. The increase in the defence budget has the following impact on almost all
key components (see Table). On the positive side, however, the ratio between revenue
expenditure and capital expenditure has improved toward the former.
Comparison defence budgets, 2010-11, 2011-2012 and 2012-13
201011

201112

201213

$32.74

$36.75

$42.97

Growth of defence budget (%) over

Previous year

3.98%

11.59%

17.63%

Revenue expenditure ($ in billions)

$19.03

$23.62

$25.20

60%

58%

59%

$11.95

$13

$17.29

40%

42%

41%

25.40%

15.33%

15.70%

Defence budget ($ in billions)

Share of revenue expenditure in

defence budget (%)
Capital expenditure ($ in billions)
Share of capital expenditure in defence
Budget (%)
Growth of capital expenditure (%)

Revenue vs. capital expenditure

The percentage share of capital allocation in the defence budget as compared to revenue
allocation has seen a decline this time. This growth has, however, been driven primarily
because of the increase in pay and allowance of the armed forces, which has increased by
27% to INR631.82 billion (US$14.04 billion), accounting for around 46% growth of the total
defence budget.

Budget utilization
The defence budget for 201112 has been revised upward by INR65.21 billion (US$1.44
billion) to INR1,709.36 billion. However, unlike the revised estimate for 201011, in which
both the revenue expenditure and capital expenditure were higher than their respective
budget estimates, the revised esti-mate for 201112 shows an increase in revenue
expenditure (by INR9,576.32 million or 10.06%) and decline in capital expenditure by
INR3,056 million (or 4.41%). Thus, this year the MoD has returned about INR30.56 billion
(US$0.67 billion) but fresh major purchases in 2012 are expected to be executed in 2013,
which gives an impression that the next revised capital budget may even exceed the
earmarked INR800 billion (US$17.77 billion) in 201213. Returning of unspent capital
funds shows a lack of planning, as is evident from the past.
Utilization of allotted capital budget (amount in USD billion)
2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

$=45 INR

BE

RE

BE

RE

BE

RE

BE

RE

BE

RE

CE

9.32

8.38

10.67

9.11

12.18

10.63

13.33

13.52

15.38

14.7

BE-RE

0.94

1.56

1.56

-0.19

0.67

CE-Capital Expenditure BE-Budget Estimate RE-Revised Estimate

Eye on defence | 5

Capital budget: Spending

18
Amount in USD billion

16

1%

14

12
10

-10%

- 4.5%

13%

- 15 %

8
6
4
2

9.316

10.67

12.18

13.33

2008 - 2009

2009 - 2010

2010 - 2011

15.38

0
2007 - 2008

Budget estimate

Budget unspent

2011 - 2012

Budget over-spent

It is to be noted that the procurement process has thus picked up and the allocations have
been fully committed as against surrender earlier as shown in the table and figure above.
The revised estimate for 201112 also shows only marginal surrender of around 4%.

Impact analysis
India has an annual capital expenditure of around US$15 billion, and is the worlds biggest
importer of defence equipment, accounting for 10% of global arms imports between 2007
and 2011. While Indias defence imports are officially put at 70%, the actual figure is
considerably high and is likely to be around 85%, if imports made quietly by defence public
sector corporations (DPSUs) are included.
Although Indias defence spending has more than doubled in the last five years from
INR960 billion to INR1,934.07 billion but the military establishment still feels that the
financial outlay should be further increased to beef up capabilities. In real terms, this
increase amounts to INR289.92 billion (US$6.44 bil-lion) in the total outlay for defence
for 201213 compared to the defence budget for the previous year (201112). However,
if we take the revised estimates of the budget 201112 then this budgeted estimate has
seen an increase of 13.1 % from the previous years revised estimate of INR1,709.36 billion
(US$37.98 billion) in 201112. The GoIs fine balancing of resources, rising inflation and
the exchange rate variations (ERV) leading to sharp devaluation of the Indian rupee against
the US dollar, have caused the defence services modernization budget to be effectively
reduced for the first time in decades.
The share of this years defence budget, which accounts for only 12.97% (approx.) of
the total Central Governments expenditure for the year 201213 has seen a decline
as compared to last year. Also, the money allocated for defence is below 2% of the
GDP where as a healthy defence budget is expected to be between 2.5% and 3% of the
countrys GDP. This year, the defence budget constitutes 1.90% of the GDP (estimated to
be INR101598.84 billion (US$2257.75 billion). It was 1.83% of the GDP in 201112 and
was 2.2% in 201011. What is significant is that it is the second successive year when the
defence budget was less than 2% of the GDP. The figure given below shows the decline in
GDP in defence budget.

Eye on defence | 6

Share of defence budget in GDP

2.5

In percentage

2
1.5
1
0.5
0
2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

The armed forces, and even the Parliament, have been asking for an allocation of 3% of the
nations GDP to defence for a long time but the projected GDP of this year falls short. It is
to be seen that if our economy grows at around 8% per annum, it will not be difficult for the
GoI to allocate around 3% of GDP for National defence.
A closer look at the growth of the capital budget for 201213 would reveal that the
focus is entirely driven by the Navy, which has got a 72% hike (to INR241.51 billion) in its
modernization budget. The Air Forces modernization budget has increased marginally
(by 0.5%) to INR285.03 billion, while the Armys has declined by 3% to INR138.04 billion.
Trends in service-wise allocations, especially in capital budgets, suggest that Indias current
military modernization is weighted heavily in favor of the Air Force and the Navy, which
together account for INR540 billion approximately (US$12 billion). This conforms to a
larger defence landscape where the aerospace as well as maritime domains are likely
to play a critical role in future. However, what is of concern is the increasing revenue
allocation for the Army at the cost of capital acquisitions. The Armys modernization has
already been hit by cancellation of major purchases, especially in artillery, armored and
soldier modernization and combat helicopter equipment. The obsolete air defence systems,
shortage of tank ammunition and deficiencies in night-fighting capabilities has adversely
affected the Armys capabilities. Unless the MoD catches up with at least replenishment
requirements, the Army is likely to lag behind in overall modernization, which in turn will
cause more problems.
Notwithstanding above, the strategic shift in the threat perception from conventional war
to asymmetrical challenges have to be kept in mind during resource allocation besides
maintaining a fine balance be-tween defence and development. The eventual objective of
war is to break down the adversarys economic prowess by neutralizing strategic assets.
Our endeavor should be to focus on those areas as well. The defence forces will do well in
case they rationalize the tooth-to-tail ratio. Time has come to discard the baggage, which
are not required in the present operational environment.
Note: The conversation rate for $: INR has been kept at 1:45 for sake of uniformity and standardization with
the previous figures.

Eye on defence | 7

DOFA: a single window

mechanism
Background
India is probably the only country in the world that has an institutionalized mechanism for
facilitation of Offsets. The MoD clearly lists out the nuances of the policy, its procedures;
etc. Yes there is scope for improvement, but the transparency shown by the MoD cannot
be overlooked.
The first DPP that included Offsets implementation was promulgated in 2005 but the first
effective DPP in this regard is always regarded as DPP 2006, wherein detailed guidelines
for implementation of offsets discharge was incorporated as part of DPP 2006. At that
time it was envisioned, most appropriately, that there is a need for a government agency
that is likely to act as a facilitator for foreign OEMs and Indian industry alike. Here was a
government that included c onsultancy per se as one of the functions to take this great
initiative forwards. The thinking within the government then was to create a vibrant
structure, yet provide the OEMs with all possible assistance to ensure the success of
implementation in Offsets. If one observed the functions and scope of work assigned
to the DOFA then, it is evident that this single organization was intended to work hard,
collect and disseminate information, provide Advisory services to the industry as well
as to the government arms in this business, provide for an e-solution by creating and
sustaining a dynamic web site, be the front end for facilitation and yet remain in the
background to aid in the decision-making process of the acquisition under consideration.

Eye on defence | 8

How it all started

Soon after the promulgation of the DPP 2006, DOFA was founded and was established
as part of the DDP. A small organization was put in place headed by the Joint Secretary
(Exports). Soon after, a web-site was also launched, which included the extract of the DPP,
the procedure for implementation of offset guidelines, list of companies that required an
industrial licence and a few interactive features for queries. DOFA was a single window
advisory for the Indian defence industry and the various associations such as CII, FICCI,
ASSOCHAM and foreign OEMs.
DOFA, in its envisioned form (of having members from the industry associations, and other
stake holders as a multi-disciplinary organization), existed for not more than three months
or so when all the members as indicated in the policy were invited for DOFA meetings. Most
probably two such meetings were held after which it felt that such an extended body was
not was really required. DOFA really meant the Chairperson, who headed the organization
and the PO (CAP) under the Director P&C, who was assigned the additional responsibility of
Offsets as well. This lean organization was effective in the formative years and provided the
single point advice to the Services (TOEC), the MoD(CNC) and the industry.
The effectiveness came about from the singular focus that DOFA maintained till then, T
o
be a credible Advisory and Facilitate in implementation, unmindful of authority. The name
DOFA is self-explanatory, it is a facilitation agency, and strives to provide service, provide
information and advice to all the stakeholders.

Lost focus
The years 2006, 2007 and early part of 2008 witnessed fructification of some major deals
such as the Naval Fleet Tanker, the Maritime Reconnaissance and Surveillance aircrafts,
upgrades to the Mig 29 and procurement of Helicopters among others. These were about
eight or nine in number and accounted for more than a couple of billion dollars in offsets
alone. Despite such major programs having been finalized and many more under process,
DOFA was never strengthened to effectively take on the increased work-load. Revisions to
DPP 2006 were at the behest of some very sound feedback from the environment, which
included a procedure for Banking of Offsets credits and removal of the compulsory licensing
condition to establish the eligibility of the Indian Offset partner. At this juncture, instead of
strengthening the DOFA, it was felt more prudent to introduce yet another organization in
the DDP (someone called Director S1, hitherto looking after supplies wing under the Joint
Secretary (Supplies), in the DDP) to be made responsible for banking of offsets.
Due to this new structure, several banking proposals that are in the queue, only two have
been approved even after four years of introduction. The crux of this matter can possible
be traced to the diluted responsibilities in the new structure and as a result, one of the
most important tools to be introduced in the offset policy is yet to truly play its role in offset
discharge.

Eye on defence | 9

What is needed?
A sharp focus is expected of DOFA to enable the organization to discharge its functions.
Any policy, however well it is intentioned, and however well it is drafted, can fail, if the
original goals are lost down the road.

A single-window approach, for the industry to seek guidance and the necessary
support in their endeavors to be able to efficiently exploit this opportunity provided by
the offset policy
Integrate the strengths of the government and incorporate a holistic approach
Strategize the concepts in implementation before promulgating yet another policy and
structures

Implementation strategy
One of the questions that emerge is, s hould DOFA remain a facilitation agency or does it
have some merit in upgrading itself onto an authority of sorts?

Considering the enormous amount of money involved in the procurement process and
subsequently in offsets, many analysts have put the figure of offsets at US$5 billion in
the next three years, the numbers involved are of the highest magnitude, wresting all the
control of Offsets in a single hand could be potentially fraught with danger. All this money
is through industrial participation guided by the avenues for discharge as enunciated by the
DPP, in the chapter, P
rocedure for implementing off-sets provisions.
Considering the avenues for discharge and the subsequent process for approvals, it can be
seen that there is no single agency that is completely responsible for approvals. This has
advantages as well as disadvantages. The pros are that, distributed responsibility does not
concentrate power in one hand and divergent views are expected to be freely aired without
being afraid of consequences. The greatest disadvantage this has is that there is no timebound solution. The process can be indefinitely delayed and the blame can be passed from
one to another.

Eye on defence | 10

A single-window mechanism is expected to resolve most of the issues and will expedite the
decision-making process. The industry, both domestic and foreign, will not have to keep
running from one office to another, in an effort to resolve their queries and problems.
DOFA needs to be focused on facilitation and be dedicated to this cause. This is an
important cause, though without any powers assigned to it. The entire industry, research
analysts and world forums seek to attribute many reasons to why implementation of
offsets in India will not succeed, both from an angle of poor implementation by the MoD
as well as the lack of capability within the Indian industry. While the capability has indeed
come a long way and will only enhance in the coming years, both through organic and
inorganic methods, focus on effective
implementation is an immediate need. The
MoD must decidedly uphold the original
cause for facilitation and encourage the
industry to exploit this important forum.
The clarifications provided by DOFA
must, in most cases, be binding on the
government while processing the cases at
a later date. This will encourage OEMs to
seek necessary advance clarification prior
to structuring their proposals.
This means, the new single window
organization, which the government
is in the process of establishing, must
incorporate a sound facilitation arm
and retain a sound Advisory inside the
government, both for internal purposes
to educate various stake holders. This
facilitation arm can create and sustain
an institutional memory and refresh
the annals of MoD and the industry in a
periodic manner. This facilitation arm can
also act as the knowledge partner to the
single window offset authority. The MoD
can do well to outsource this task to the
industry on a PPP model.
In order to be an apostle of knowledge,
the facilitation arm must have intimate interaction with the industry, both domestic and
foreign. There is also a requirement of an in-depth understanding of technology as it relates
to defence preparedness of the country. Toward this end, the facilitation arm must also
incorporate experts in the field of education, technologists and have access to knowledge
that resides in the various research institutions in the country.

Eye on defence | 11

The new and vibrant Offset Authority that is in the process of being formed needs to be a
single-window agency that incorporates a facilitation arm, which is also a knowledge arm,
and a separate execution arm. The Execution Arm must necessarily synergize the strengths
available in the government to form a formidable authority.

So what are the strengths available within the MoD?

DRDO is the Technology Arm of the MoD and has inherent strengths to provide for backbone resilience. Intimate association with the DRDO is an inescapable requirement. A
detailed knowledge of the technologies being harnessed across various laboratories, the
requirements of the Armed Forces, technologies in vogue across the Armed Forces of the
world, need to be studied and gaps identified. The new Offset Authority may not do the
entire processing, yet it needs to have a good hold on the subject for effective exploitation.
The Armed Forces do incorporate and use new technologies and have a fair idea of what
they need in combat, they must be integrated in a sound manner in this process. Thus,
Services, The Integrated Defence Staff, DRDO should be integrated into the decision-making
process.
The new Offset Authority must integrate all activities of facilitation, banking, processing and
evaluations, approvals, monitoring (for banking and post-contract monitoring), and cover
all the activities associated with offsets. This will ensure accountability and effectiveness in
implementation. The integration with the acquisition process must be full and total, leaving
no room for any delays in the acquisitions due to the lethargy of the Offset Authority.
It is time for MoD to strategize the concepts for implementation prior to promulgating
yet another policy or organization. The drawbacks of the previous organization must be
studied and analyzed threadbare and then effective counter measures must be taken and
implemented in the new structures. This will augur well both for the MoD and the industry.

Conclusion
The new offset authority being conceived by the MoD must be robust, well
staffed both in terms of quality and quantity and incorporate the best practices in
governance. From the highest to the lowest level, the staff must be dedicated. May be
at levels higher than this, multi-tasking could be permitted. DRDO must necessarily
play a dominant role in acquiring technology and be able to fill in gaps so identified as
also aggressively find the route to production.

Eye on defence | 12

Alenia: C-27J SPARTAN

Tier 1s
The C-27J is a medium category transport aircraft and shares many of its systems (Rolls
Royce engines) with the C-130J which India currently posses. The C-27J is currently
looking at participating in multiple tenders that have been floated by the Central
paramilitary and armed forces. The aircraft is capable of taking off from unprepared strips
less than 500 meters long with a maximum takeoff weight of 30,500 kg. The aircraft is
designed to operate in remote areas like those in Jammu and Kashmir and the North-East
from gravel or sand as besides the twin-engines, it has an auxiliary power unit (APU) that
provides electricity and maintains pressure without the need to keep the engines running
when the aircraft is on ground.
At present, besides the US, the C-27 J has been ordered by the air forces of Italy, Greece,
Bulgaria, Lithuania, Romania, Morocco. Slovakia has also selected the aircraft.

Eye on defence | 13

Eye on defence | 14

Wires

Forward Fuselage

25

31

Wing to Fuse Fairing

24

Pipes

Outer Wing Airfoil Underside Door

23

Aft/Rear Fuselage

Centre Wing Airfoil Underside Door

22

30

Main Landing Gear Fairings (L&R)

18

28

Radome

16

Fwd/Rear Fuselage

Nose Landing Gear Doors (L&R)

14

27

Inboard Flaps (L&R)

Centre Fuselage

Outboard Flaps (L&R)

26

Spoilers (L&R)

32

29

21

20

19

17

15

13

12

11

10

Ailerons (L&R)

Subcontracted

Alenia (In House fabrication and

assemble)

Propellers

Nacelle (L&R)

Upr ctr emergency hatch

Loading door

Loading ramp

Fwd crew door

Side mergency door

Upr Fwd emergency hatch

Paratroop foors (L&R)

Upr Rear emergency Hatch

Rudder

Vertical Stabilizer

Elevators (L&R)

Horizontal Stabilizer (L&R)

Outer Wing (L&R)

Centre Wing

No. Description

No. Description

Request for Information (RFIs)

January 2012 15 April 2012
Date of issue

RFI details

Response date

Issued by

Service

6 Jan 2012

RFI and Interaction with

Manufacturers of Operating
Theatre Shelter Inflatable

11 Jan 2012

MGO/EM/GS&C
Room No 206

Army

6 Jan 2012

General Purpose Machine Gun

for PARA (SF)

20 Jan 2012

Director General of Infantry

Infantry - 7

Army

6 Jan 2012

Spares, Repair and Over-haul of

Missile Test Station

23 Jan 2012

Directorate General Of EME

(Electronics)
Master General of Ordnance
Branch

Army

22 Feb 2012

Unmanned Aerial vehicle (UAV)

mission simulator for UAV crew

22 Mar 2012

Directorate General Of Artillery 5

Army

21 Feb 2012

Full Body Truck Scanners

13 Mar 2012

MI Dte

Army

22 Feb 2012

Night Sight for Carbine

10 Mar 2012

Inf Dte

Army

23 Feb 2012

Optical Theodolite Instrument

15 Mar 2012

Directorate General of Artillery 5

Army

23 Feb 2012

Electro Optical Instrument

30 Mar 2012

Directorate General of Artillery 5

Army

15 Mar 2012

Specialist Vehicle

15 April 2012

Inf Dte

Army

19 Mar 2012

New power pack with minimum

360 horse power engine
including running gear and
suspension for Infantry Combat
Vehicle (ICV) BMP-2/2K

30 April 2012

DGMF

Army

13 Jan 2012

Technical And Commercial

Information For A WIMAX
System

6 Feb 2012

Joint Director of Naval Signals

(Networking)
Directorate of Naval Signals

Indian Navy

3 April 2012

Diver Navigation System

20 April 2012

Directorate of Spe-cial Ops &

Diving

Indian Navy

1 April 2012

Surveillance Radar

23 April 2012

HQ CAC
Bamrauli
Allahabad

Indian Air Force

20 Mar 2012

Deep Search Metal Mine

Detector(DSMD)

2 April 2012

CRPF

CRPF

1 April 2012

Surveillance Radar

23 April 2012

HQ CAC
Bamrauli
Allahabad

Indian Air Force

9 April 2012

Comjam And Sigint Aircraft

24 May 2012

PD ASR (Room No 460)

Air HQ (Vayu Bhawan),
Rafi Marg

Indian Air Force

11 Apr

30 mm or more AD Gun

30 Apr 2012

DGWE(WE-9)
General staff branch
Room no 208g, south block
Integrated hq mod (army)
Dhq po, New Delhi-110011

Indian Air Force

Eye on defence | 15

Request for Proposal (RFPs)

January 2012 15 April 2012
Date of issue

RFP details/equipment

Response date

Issued by

Remarks

19 Jan 2012

GPS for Aviation Navigation

19 March 2012

Army Commander Special

Financial Power Cell Northern
Command

For Army

7 Feb 2012

Counter Terrorism Operations

Planning Tool and Wargaming
System

14 April 2012

WARDEC

For Army

7 Mar 2012

Light Weight BP Jacket

12 Mar 2012

INS Abhimanyu

For Navy, Qty: 48

11 Jan 2012

Portable air supply &

communication system

30 Jan 2012

Commander
Operations Officer

For Navy

24 Feb 2012

Expression of Interest for

Technical Consultancy Services
for Phase IIA of Project Seabird,
New Delhi

21 Mar 2012

Director General
Project Seabird

For Navy

23 Jan 2012

Hand Held LED Torches with

Accessories

13 Feb 2012

SO PROVOST
HQ WAC IAF

For Indian Air Force

21 Feb 2012

Repair overhaul of Russian origin

aggregates of Illushin aircraft
of IAF

3 Apr 2012

D Eng TI
Air HQ (VB)

For Indian Air force

27 Jan 2012

Supply And Installation Of CCTV

Surveillance System

27 Feb 2012

Wing Commander
Units Logistics Section
Training Command

For Indian Air Force

Qty: 12 Nos.

30 Jan 2012

FUZE T AND P DA NO 213 P-MK5(M-2)

28 Feb 2012

Ordnance Factory Dehuroad,

Pune

For OFB
Qty: 10190

15 Feb 2012

Smokeless Pyroxylene
Propellant Powder for 14.5 MM
Ammn.

20 Mar 2012

Ordnance Factory Khamaria

JabalPur

For OFB

15 Feb 2012

Smokeless Pyroxylene
Propellant Powder for 14.5 MM
Ammn.

20 Mar 2012

Ordnance Factory
Khamaria JabalPur

For OFB

3 Mar 2012

Power Unit Part No.1155261,

complete as per BOM and Drg.
Attached as Annexure-I for 155
mm FH Gun

10 April 2012

Joint General Man-ager

Gun Carraige Fac-tory

For OFB
Qty: 06

14 Feb 2012

Image Intensifier Tube 18mm

AVG Glass I/P

20 Mar 2012

Ordnance factory
Dehradun

For OFB
Qty: 352 units

Jan 2012

Explosive Detection Kit

15 Feb 2012

Deputy Inspector
General of Police,
Central Reserve
Police Force

For CRPF
Qty: 10 Nos.

30 Jan 2012

Hand Held Thermal Imagers and

Accessories

14 Mar 2012

Directorate-General, CRPF

For CRFP
Qty: 100

23 Feb 2012

Global Positioning System

17 Mar 2012

CRPF

CRPF, Qty: 77

4 April 2012

Ammunition for Shooting

competition

18 May 2012

Directorate General, Border

Security Force

For BSF , Qty: 882400 Rounds

4 April 2012

Doppler radar system for

velocity measurement of subsonic and super-sonic projectiles

29 May 2012

Indian Ordnance Factories

AMMUNITION FACTORY,
KHADKI

For OFB

2 April 2012

Rubberized inflatable Boats with

25 HP OBM

15 May 2012

Directorate General, Border

Security Force

For BSF, Qty 75 Nos.

Eye on defence | 16

List of industrial licenses (ILs) filed from

01/01/2012 TO 29/02/2012
Application no. and date Name of the applicant

Item of manufacture

1: 5/1/2012

Mistral Solution Pvt. Ltd.

Defence electronics hardware boards

2: 6/1/2012

Tata Advanced Materials Ltd.

Manufacture of parts and accessories N.E.C. for aircraft or space

craft

3: 31/01/2012

Vinyas Innovative Technologies Pvt. Ltd. Electronic printed card board, assemblies/electronic
subassemblies/military wire harnesses for defence and
aerospace application

4: 31/01/2012

Elcome marine services Pvt. Ltd.

System integration for electronics including design and

production of customized hardware and software (GUI / API
based, as well as embedded) (NIA 620)

5: 7/2/2012

Tara Aerospace Systems Ltd.

Components kits / accessories for aircraft ( rotor crafts and fixed

wing aircraft )

6: 13/02/2012

Navanidhi Electronics (P) Ltd.

Antennas, HF/VHF/UHF/RF power amplifiers, electro Mechanical

masts, security jammers, mo-bile Jammers & cell phone
jammers, microwave systems and components for EW equipment,
V/UHF, l-band Digitally tuneable filters, active night vision and fog
vision equipment

7: 22/02/2012

Pipavav Defence and Offshore

Engineering Co. Ltd.

Manufacture of tanks (armored fighting vehicles) gun Turrets (land

and sea), artillery systems (including upgrades and overhaul)

8: 22/02/2012

Unique Instruments & Mfrs-Pvt. Ltd.

Manufacture of aircraft and engine parts, ac-cessories and subassemblies

9: 23/02/2012

Sri Lakshmi Explo Chemicals

Soldering of fuse head unto insulated twin wires of precut lengths,

sleeving and tagging

10: 29/02/2012

Ashok Leyland Defence Systems Ltd.

Design development, manufacture assembly, overhaul, repair

and upgrade of defence equipment to include armored fghting
vehicles, other armored combat vehicles, unmanned ground/
aerial vehicles, armor protected vehicles, specialist vehicles etc.

Eye on defence | 17

New projects/investments/contracts
Name of entity
Bharat Dynamics
Ltd. (BDL)

Project details

Indian Air Force

Pawan Hans

Defence public
sector units

Government of
India

Government of
India

Poland

Value

BDL plans to set up a surface-to-air missile unit in Hyderabad with a capacity to

produce an estimated 6,000 sophisticated medium-range missiles.

INR300 billion

The plant spread over 630 acres is expected to be operational by 2016 and create
employment for 700 people directly and 2,000 indirectly.
GOI has signed contracts with M/s Thales, France and M/s Dassault Aviation, France,
as well as M/s Hindustan Aero-nautics Limited (HAL), India to upgrade the Mirage
2000 aircraft of the Indian Air Force (IAF), scheduled to be completed by 2021.
Another contract has been signed with M/s MBDA, France, for procurement of airto-air missiles for the Mirage 2000 aircraft. The delivery of missiles is scheduled
between 2015 and 2019.

Indian government-owned Pawan Hans has submitted a proposal to four central

ministries seeking the purchase of 249 helicopters and 10 sea planes and the
construction of 180 helipads across India.

Contract with M/s

Thales and M/s Dassault
Aviation: INR101.66
billion
Contract with M/s HAL:
INR20.2 billion
Contract for procurement of the missiles:
INR66.25 billion
INR100.30 billion

The aircraft and helipads will improve aerial surveillance, law-and-order monitoring
and Indias response to medical emergencies and natural disasters. This is also likely
to make at least 30% of Indias districts and many remote areas more accessible.
Four defence public sector units are setting up nine manufacturing units in Andhra
Pradesh that is expected to create 10,000 jobs in the state.

INR70 billion

This includes Bharat Dynamics Ltd. (three units), Bharat Electronics Ltd. (3 units),
Electronics Corporation of India Ltd. (2 units) and Mishra Dhatu Nigam Ltd.
(MIDHANI) (one unit).
The Russian Akula-II class submarine K-152 Nerpa was commissioned into
the Indian Navy as INS Chakra on a 10-year lease agreement. INS Chakra,
commissioned at the Primorye region in far southeastern Russia will soon be sent to
India.

INR46.67 billion

With this, India has become the worlds sixth country after the US, Russia, France,
the UK and China to operate nuclear powered submarines.
The GoI is purchasing 75 Pilatus trainer aircraft from Switzerland. Deliveries of the
aircraft are expected to begin in 2013.

INR18.50 billion

The Pilatus aircraft is likely to replace the earlier HPT-32 trainers that were
grounded after a fatal accident in 2009.
Bumar, Polish-based supplier of armaments and defence signed an export contract
for armored units to the Indian army.
It also signed an agreement with BEML stipulating co-operation on projects,
including sales to third-party markets.

Eye on defence | 18

INR15.56 billion

Name of entity

Project details

Pratt & Whitney

Bharat Earth
Movers Limited
(BEML)

Tata Motors

Hind High
Vacuum

Indian Central
Board of Excise
and Customs

Kalyani Group

Ministry of
Defence

Hindustan
Aeronautics Ltd.
(HAL)

Value

Pratt & Whitney, unit of United Technologies, is exploring to set up an MRO

(maintenance, repair and overhaul) unit, an aircraft engine components facility and
a training center in India.

INR7.78 billion

The company is holding talks to set-up a JV with Tatas and L&T and the proposed
unit is expected at Bangalore or Hyderabad.
BEML initiated the process of setting up an Aerospace manufacturing division near
Bangalore airport. The facility will be spread over 3,00,000 sq ft and is expected to
be ready by September 2012.

INR4.45 billion

This Aerospace Facility will be capable of manufacturing aerospace components and

parts, assembling of aircraft and helicopter up to 21 meters height.
Tata Motors Ltd. will invest to build a factory subject to supply order of 2,000
infantry combat vehicles to the Indian Army.

INR3 billion

The company submitted a bid two years ago to supply the infantry vehicles.
Hind High Vacuum (HHV), a vacuum technology major that supplies equipment for
satellite and aircraft projects to ISRO, Hindustan Aeronautics, DRDO etc. has stated
plans to set-up a third plant near Bangalore focusing on the defence and aerospace
business.

INR2-3 billion

HHV is open to a foreign equity stake or an investor in its existing plant.

The company wants to increase its presence globally and aims to more than double
its turnover to INR5 billion by 2014 (from nearly INR2 billion this fiscal year).
Smiths Detection, part of the UK-based global technology business Smiths Group,
has won a contract to supply the Indian customs authorities with high-energy, X-ray
screening systems.

INR1.04 billion

Smiths Detection will work in partnership with Bharat Electronics Limited and will
deliver the systems to the ports of Chennai, Tuticorin, Kandla and Mumbai over the
next two to three years.
Kalyani Group, a diversified Indian conglomerate will invest INR1 billion to develop a
towed artillery gun to meet the future needs of the countrys armed forces.

INR1 billion

It is developing the gun on its own with a technology partner and has hired 60
experts for its development.
The defence ministry is purchasing six Mi-17 V-5 helicop-ters from Russia to be used
by the Union Home Ministry to assist the forces in internal security duties.

NA

These helicopters are being built by Russian Helicopters Kazan Helicopter Factory
(KVZ) subsidiary.
A new unit of HAL at Seethangoli, Kerala was inaugurated in February. The unit
will prepare indigenous designs and assemble components purchased from abroad
for the armed forces aircraft and choppers and state-of-the-art communication
equipment, radio altimeter used in radar devices and navigation radar computers.

Eye on defence | 19

NA

Name of entity
Bharat
Electronics (BEL)

Project details

Russian
airplane-building
corporation
(RAC)-MiG

Indian Rotorcraft

Tata Power
Strategic
Electronics
Division (SED)

Value

The Coast Guard has selected Bharat Electronics (BEL) to provide turnkey
surveillance solution.

NA

BEL has also given a contract to Obzerv Technologies to supply it with 46 ARGC2400 cameras.
This program is the first phase of the Indian coastal surveillance project designed to
cover the entire coast.
Russian airplane-building corporation (RAC)-MiG completed supply of ship borne
fighters MiG-29K/KUB in-tended for aircraft-carrier Vikramaditya to the navy of
India in late 2011.

NA

The contract on supply of 16 combat airplanes in the single-seat version K (ship

borne) and double-seat version KUB (ship borne combat training) was signed in
2004.
The company has already started production of the next batch of 29 such fighters in
accordance with the additional contract signed with India in March 2010.
Indian Rotorcraft, a JV company of Tata Sons and Agusta Westland, has proposed
to set up an assembly line for helicopters in Hyderbad on a 10-acre site. The JV will
commence production from June 2013 and will initially produce the eight-seater
AW119Ke light helicopter.

NA

The facility will be capable of producing up to 30 helicopters per annum.

New Zealand-based Radiola Aerospace Limited has won a four-year contract
to undertake flight inspections of new navigation aids at 30 military airfields
throughout India.
The contract is awarded by TATA Power SED. Tata Power SED holds a prime contract
with the Indian MoD to modernize the facilities at airfields operated by the Indian Air
Force.

*The values of the deals have been converted to Indian Rupees using Oanda currency conversion tool
1US$ = INR51.8521 (Values as on 31 March 2012)
Eye on defence | 20

NA

Joint ventures and alliances

Name of entities
DCNS and SEC
Indus-tries

Nature of transaction

Larsen & Toubro

and Thalest Ltd.

Industria
de Turbo
Propulsores
and Reginson
Engineering Ltd.
and Raghu Vamsi

Reliance
Industries Ltd.
and Dassault
TTI, Inc. and
Radiant Corp

Mahindra and
Mahindra and
Rafael

Larsen & Tubro

and Nexter

Value

DCNS, a French naval defence company signed a contract (through DCNS India) with INR3.1 bil-lion
Hyderabad-based SEC Industries for the local manufacturing of equipment for the
P75 Scorpene submarines.
SEC will manufacture equipment under a TOT provided by DCNS India and they will
be delivered to its customer, Mazagon Dock Limited (MDL).
The electrical and automation business division of L&T acquired Thalest, UK-based
provider of ship control and automation systems.

INR240 million

The acquisition is aimed at expanding the automation offerings for ships.

Spanish manufacturer of turbines for aircraft engines, Industria de Turbo
Propulsores (ITP), in alliance with British firm Reginson Engineering Ltd. and Indian
firm Raghu Vamsi have set up a plant in India with an objective of ex-pansion and
diversification.

INR165.98 million

The agreement was signed by ITPs subsidiary Tuberias Aeronauticas with the local
firms.
The production output is planned to double in 2014 whereas the number of
employees will be more than 100 people.
Reliance Industries Ltd. (RIL) and French Dassault Aviation SA have signed a
preliminary agreement to explore defence projects in alliance.

NA

The two companies are yet to identify areas where they can collectively work.
TTI entered an agreement with Radiant Corporation to supply interconnects,
electromechanical, and passive (IP&E) components.

NA

Radiant manufactures its own requirements of composite cables and recently

entered the field of aviation grade cable looms and wiring harnesses to participate in
the growing offset business generated as a result of aircraft supply contracts to the
Indian Armed Forces.
Mahindra & Mahindra announced its JV with Rafael that will focus on development
and manufacturing of products such as Torpedo Defence Systems, Electronic
Warfare Systems, Advanced Armour Solutions and Remotely Operated Weapon
Stations for Futuristic Infantry Combat Vehicles (FICV).

NA

A manufacturing facility is expected to be set up in Pune. Mahindra will own a 74%

stake in the JV with Rafael and is expecting a turnover of US$500 million in the next
10 years.
Larsen & Tubro signed an agreement with French defence products company Nexter
to jointly bid for the Indian armys artillery gun programs.
Nexter is expected to transfer technology for its towed and mounted gun systems to
L&T. The Indian company plans to assemble Nexters Caesar and Trajan guns in India.

Eye on defence | 21

NA

Name of entities
Larsen & Toubro
and Samsung
Techwin Co.

Nature of transaction

Selex Galileo and

Data Patterns
Pvt. Ltd.

ITT Exelis and

Tata Advanced
Systems (TASL)

DHS Systems
and Bharat
Electronics

DCNS and IIT

Bombay

Value

Larsen & Toubro Ltd. entered an agreement with South Korean defence products
company Samsung Techwin Co. to make howitzer guns in India.

NA

The companies have already submitted a bid to supply up to 100 guns to the Indian
army.
Selex Galileo and Data Patterns (India) Pvt. Ltd. will seek approval from the GoI to
form a JV to make defence electronics products. The two companies will establish a
new facility at Chennai.

NA

Selex Galileo will hold a 26% stake in the planned joint ven-ture (JV) and plans to
employ 100 people initially.
ITT Exelis and Tata Advanced Systems Limited have formed a strategic alliance to
support Generation (Gen) 3 night vision requirements in India.

NA

ITT Exelis will provide TASL with the technology to build night vision devices in
India, which will be followed by manufacture of high precision components and subassemblies of the devices by TASL.
DHS Systems International, manufacturer of shelters entered Indian market,
through a long term deal with Bharat Electronics Limiteds Navi Mumbai unit.

NA

DHS Systems International aims to generate revenue of INR1billion in the next

three years from the defence and health care sectors in India and also set up a
manufactur-ing facility by 2015.
Naval Defence Company, DCNS entered an agreement with IIT Bombay for
education and research programs in naval defence and energy.
According to the MoU, R&D programs will be carried out jointly by IIT Bombay and
DCNS Research teams while training of DCNS personnel will be conducted by IIT
Bombay.

Eye on defence | 22

NA

Country-level deals and initiatives

Country

Nature of transaction

Additional details

US

For the first time in Indo-US war games, the Americans

will deploy their tanks in the company-level Exercise
Yudhabhyas scheduled to be held in the Mahajan field
firing ranges in the Rajasthan desert in March.

Apart from fielding three tanks, the US will also deploy

around 200 men accompanied by armored personnel
carriers for the war games.

The MoD plans to purchase six Mi-17 V-5 heli-copters

from Russia to be used by the Union Home Ministry.

Through the purchase, the Ministry will assist its forces

engaged in internal security duties. These helicopters
are being built by Russian Helicopters Kazan Helicopter
Factory (KVZ) subsidiary.

Russia

India will file its Russian-origin BMPs along with tanks for
the war game.

Currently, the defence ministry is negotiating purchase of

59 Mi-17 s after its first order of 80 such helicopters to
the Russian company.
Brazil
(Defence talks)

The talks between the Defence ministers of India and

Brazil were held in India in February 2012.
Topics of discussion revolved around cooperation in the
naval sector to build aircraft carriers and submarines of
the Scorpene class, expansion of the existing vacancies
for exchange of military officers, and courses of higher
education offered by the military schools of both
countries.

Other key areas on the agenda included talks on

partnerships between Brazilian and Indian armies to
establish research centers for development of defence
equipment that meet the future needs such as the
Border Monitoring System (Sisfron), talks related to their
respective air forces, exchanges between schools of
pilots, aerospace medicine, search and rescue operations
and parachuting.

Australia

The Society of Indian Aerospace and Technol-ogies

(SIATI) and Aviation Aerospace Australia (AAA) have
forayed into a long-term pact to jointly develop the
aerospace industry in both the countries.

The agreement has signaled a new level of cooperation

and the collaboration is likely to help both the
organizations to share knowledge, develop domain
expertise and transfer skills.

Singapore

Air Chief Marshal NAK Browne, Chief of the Air Staff,

went on a four day Defence Cooperation visit to
Singapore.

The discussion issues revolved around the ongoing

defence cooperation between the two countries toward
expanding the already robust bilateral military-to-military
ties and also a visit the Singapore Air Show.

Sri Lanka

Inaugural defence dialog has taken place be-tween the

Defence Secretaries of India and Sri Lanka.

Regional security situation including issues of maritime

security in the Indian Ocean region were the key themes
at the inaugural annual defence dialog.

Japan

Japanese delegation led by Admiral Hisayasu Suzuki,

the Commandant, Japan Coast Guard (JCG), for the XI
High Level Meeting and Combined Exercises met with the
Indian Coast Guard (ICG).

The five-day visit, was in pursuance of the Memorandum

of Cooperation (MoC), signed between the two Coast
Guards on 24 November 2006, which stipulates that the
heads of the two organizations meet alternately in India
and Japan, to discuss maritime issues of mutual concerns
and formulate a cooperative approach to address these.

Saudi Arabia

The Indian and Saudi armed forces are likely to conduct

joint exercises involving Saudi and Indian ship visits from
both sides and to work closely to combat sea piracy.

The joint committee will also prepare a draft agreement

that will be endorsed by both sides in the field of
hydography. The two sides intend to discuss the details of
their future defence cooperation, including the details of
an agreement in the defence sector.

Eye on defence | 23

Industry buzz
Stronger role of private sector
in Defence

Government extends support on

Defence PSU JVs

The private sectors role in the Defence

sector is likely to get strengthened, under
the Armed Forces Long-term Integrated
Perspective Plan soon to be made public by
the Union Government. Under the 15-year
plan, the private sector will have a greater
role in meeting the requirements of the
armed forces, in terms of investment and
in research and development of technology
such as electronic warfare.

The official guidelines on formation of a JV

by Defence PSUs are an attempt toward a
fair and transparent framework to enable
such tie-ups. A case in point is the recent
controversy around the JV by Mazagon
Dock Ltd., a shipbuilder under the Ministry
of Defence, with the privately promoted
Pipavav Shipyard for constructing warships
for the Navy. The GoI is responding to these
concerns, with the guidelines containing
provisions on selection of JV partners by the
Defence PSUs.

(Source: Greater role for private parties in

Defence sector, The Hindu, 23 February
2012, via Factiva, 2012 Kasturi & Sons
Ltd.)

Electronic warfare proposition

attractive for India
India could soon get access to electronic
warfare (EW), the science of electronically
dodging and attacking the enemy, with an
INR250 billion business proposition awaiting
the countrys public and private sectors.
The countrys military labs were equipping
the three forces with futuristic EW or
intelligent devices, including radar warners,
missile warners, electronic and leak-proof
communication intelligence, jammers and
detectors. These will be fitted on ground
vehicles, ships and also on unmanned
combat air vehicles, fighter planes and even
future satellites to enhance the militarys
seeing and hearing ranges. Currently,
Bharat Electronics Ltd, (BEL) is a major
provider of EW hardware and solutions to
the military.
(Source: Electronic warfare offers Rs
25,000-cr biz for India Inc., Business Line
(The Hindu), 22 February 2012, via Factiva,
2012 The Hindu Business Line.)

Eye on defence | 24

(Source: In defence of joint ventures,

Business Line (The Hindu), 13 February
2012, via Factiva, 2012 The Hindu Business
Line.)

Indian records success in missile

test fire
India has achieved another defence
milestone by successfully flight-testing one
of its sophisticated in-terceptor missiles
from Wheeler Island in Orissas Bhadrak
district. The interceptor named Advanced
Air Defence (AAD), destroyed a target
missile. The test was part of a coordinated
air defence exercise, which featured two
missiles an interceptor and a target
missile.
(Source: Advanced interceptor missile testfired successfully, The Times of India, 12
February 2012, via Factiva, 2012 The Times
of India Group.)

Ministry of Defence debars firms Hatsoff simulator receives Level Delivery of six Scorpene
submarines delayed
D certification
The Ministry of Defence has debarred six
firms M/s Singapore Technologies Kinetics
Ltd. (STK), M/s Israel Military Industries Ltd.,
M/s Rheinmetall Air Defence, Zurich, M/s
Corporation Defence, Russia, M/s TS Kisan &
Co. Pvt. Ltd., New Delhi and M/s RK Machine
Tools Ltd., Ludhiana from further business
dealings with the Ordnance Factory Board,
Department of Defence Production, MoD,
for a period of ten years. The firms have
been blacklisted by the CBI on the evidence
collected against them.
(Source: MoD Debars Six Firms from
Business Dealings for Ten Years, Press
Information Bureau website, http://pib.nic.
in/newsite/AdvSearch.aspx, accessed 15
March 2012.)

Indian IT majors work hard to

lure MNC defence players
Indian IT companies are working hard
to forge partnerships with aerospace
majors, as the countrys defence budget is
expected to reach US$50 billion in the next
three years. Software firms are exploring
opportunities arising from offset obligations
of multinational defence companies as IT
adoption related to communication, human
and machine management in Armed Forces
is on the rise. According to the offset policy,
foreign defence manufacturers have to
buy from local players or form JVs to pass
back 30% of the cost of the contract. A case
in example is the Wipros tie-up with an
European organization for manufacturing
and global supply of actuators for landing
gears.
(Source: Software cos aggressive on
defence offset policy, Financial Express, 14
February 2012, via Factiva, 2012 Indian
Express Online Media Pvt. Ltd.)

A JV of HAL and CAE, Helicopter Academy

to Train by Simulation of Flying (Hatsoff)
recently announced that one of its simulator
cockpits has received a certification of
Level D. Level D is the highest qualification
for flight simulators and Hatsoff has got
the certification for Eurocopter AS365
N3 Dauphin helicopter. Indias Directorate
General of Civil Aviation and the European
Aviation Safety Agency (EASA) have given
the certification. Further, its three simulator
cockpits-a Bell 412, a HAL civil/conventional
Dhruv, and the Eurocopter AS365 N3
Dauphin-have been certified as Level 2
(JAR)/Level 6 (FAA) flight-training devices
when used as fixed-base, non-motion
simulators in the docking station installed at
the facility.
(Source: Simulator gets regulators nod,
DNA - Daily News & Analysis, 13 January
2012, via Factiva, 2012 Diligent Media
Corporation Ltd.)

First batch of Mi-17V-5

helicopters made operational in
India
The first batch of Mi-17V-5s, delivered as
per the contract signed in 2008, has been
made operational by the Indian Air Forces.
A contract on 80 Mi-17V-5s had been
signed in 2008. Around 20 helicopters
have already been delivered to India. These
vehicles are being produced by Kazan
helicopter plant. All 80 helicopters are
expected to be operational by 2014.
(Source: India puts first Mi-17V-5
helicopters into operation, SKRIN
Newswire, 20 February 2012, via Factiva,
2012 SKRIN.)

Eye on defence | 25

The delivery of six Scorpene submarines,

being constructed at the Mazagon Dock
Limited (MDL), Mumbai, under Project-75
has been delayed. The delivery schedule
of the first submarine has been revised to
June 2015 and that of the last submarine
to September 2018. The original delivery
schedule for the first submarine was
December 2012 and the remaining were to
be delivered with a gap of one year each.
The delay in schedule is because of problems
in absorption of new technology, delay in
augmentation of industrial infrastructure
at MDL and delay in procurement of items
due to high cost as compared to the earlier
indicated cost.
(Source: Delivery of Scorpene submarines
delayed: Govt, 19 March 2012, Press Trust
of India Limited, via Factiva, (c) 2012 Asia
Pulse Pty Limited.)

Cochin Shipyard provides

platform supply vessels to SCI
Indian shipbuilder, Cochin Shipyard Ltd.,
has launched two platform supply vessels
for water transport company Shipping
Corporation of India (SCI). The ships, BY-85,
SCI Nalanda, and BY-86, SCI Yamuna, are
platform supply vessels of the UT 755 CD
type, designed by Rolls-Royce Marine AS,
Norway, a subsidiary of UK engineering
group Rolls-Royce Group plc.
(Source: Cochin Shipyard launches platform
supply ships for SCI, SeeNews Shipping,
9 January 2012, via Factiva, 2012
SeeNews.)

Police department will get

access to Electronic warfare
technologies
India is set to develop electronic warfare
technologies to help paramilitary and police
fight the Maoists and terrorists. Defence
Research and Development Organisations
(DRDO) Chief Controller Research and
Development (Avionics) G. Elangovan said
that the agency has created a separate chief
controller (R&D) for low intensity conflict
to identify electronic warfare technologies
that can be customized to help paramilitary
and police meet internal security needs. The
DRDO intends to involve the private sector
in co-developing niche products required
for low-intensity conflict with anti-national
elements within the country.
(Source: Electronic warfare technologies
to be developed for police, Indo-Asian News
Service, 22 February 2012, via Factiva,
2012 Indo-Asian News Service.)

IBMs security intelligence

platform to fight cyber attacks
IBMs QRadar Security Intelligence Platform
allows analysis of real-time data feeds
from more than 400 different sources. The
company mentioned that this platform helps
in identifying threats and hackers with realtime analysis of the traffic on the corporate
IT infrastructure.
(Source: IBMs QRadar Security to fight
against cyber attacks!, EFYtimes.com, 23
February 2012, via Factiva, 2012 EFY
Enterprises Pvt. Ltd.)

Mahindra Aerospace likely to

set up plant abroad

Indian firms to provide food and

clothing for space mission

Mahindra Aerospace, the aerospace

division of Mahindra & Mahindra Group is
considering setting up plants for 8- to18seater aircraft in the US, Canada, Latin
America and China. This is being done to
establish its presence among these markets.
Mahindra has plans to increase its business
five-fold by selling approximately 100
aircraft annually by 2015. The company
is also looking for a potential technology
partner as well as a hanger to build its own
aircraft in India by 201314. It also aims
to become a Tier I component supplier to
aircraft makers Airbus and Boeing as part
of the governments US$10-billion offset
program.

Two life science laboratories of the Defence

Research Development Organisation (DRDO)
will provide food and clothing for the
Indian astronauts ( Vyomanauts), during
the countrys first human space mission.
The Mysore-based Defence Food Research
Laboratory (DFRL) will provide ready-to-eat
food in space, the Defence Bioengineering
and Electromedical Laboratory (Debel) (both
under DRDO) will design and produce the
space suits for the first vyomanauts of India.
Bengaluru-based Debel, which has already
developed Nuclear Biological and Chemical
(NBC) protection suits, flight clothing and
protective equipment for air crew, has been
assigned to develop the highly complex
space suits. It is the first time that space
suits will be developed in India.

(Source: Ketan Thakkar, Mahindra Aero

Plans Aircraft Assembly Abroad, 23 March
2012, via Factiva, The Economic Times
Bangalore Edition, 2012. Bennett,
Coleman & Co., Ltd.)

Tatas may make choppers if

Sikorsky bags defence deal
Sikorsky Aircraft Co, a US-based aircraft
manufacturer is among the two companies
shortlisted by the Ministry of Defence (MoD)
to supply 16 multi-role helicopters to the
Indian Navy in a US$1 billion deal. It is
currently awaiting a license from the GoI
to manufacture components and assemble
helicopters for the Indian defence services.
Tata Sikorsky Aerostructures, joint-venture
with Tata Advanced Systems Ltd, is likely to
benefit if Sikorsky bags the defence deal.
(Source: K V Ramana,Tatas may make
choppers if Sikorsky bags defence deal,4
April 2012, DNA Money, via Factiva, 2012.
Diligent Media Corporation Ltd.)

Eye on defence | 26

(Source: Debel to develop suits for

astronauts, DNA - Daily News & Analysis,
13 February 2012, via Factiva, 2012
Diligent Media Corporation Ltd.)

DRDO launches explosive

detection kits
DRDO launched the Explosive Detection
Kit (EDK) at the Defence Expo 2012.
It was chosen among more than 70
products and technologies developed for
defence applications with potential civilian
applications that have been identified for
commercialization under the DRDO-FICCI
ATAC (Accelerated Technology Assessment
Commercialization) programme. The
Explosive Detection Kit (EDK), developed by
Pune based High Energy Materials Research
Laboratory, can quickly detect and identify
even traces of explosives.
(Source: DRDO to Launch Explosive
Detection and Swine Flu Diagnostic
Kits at DEFEXPO, Press In-formation
Bureau website, http://pib.nic.in/newsite/
AdvSearch.aspx, accessed 17 April 2012.)

Ashok Leyland launches COLT

range of defence vehicles
Ashok Leyland Defence Systems engaged in
the manufacture of specialized tactical and
armored vehicles unveiled the first of the
range of COLT tactical vehicles - the Light
Tactical Vehicle (4x4) at the Defence Expo
2012. The Light Tactical Vehicle is being
developed its strategic partnership with
French-based, Panhard General Defense,
France.
(Source: Ashok Leyland Defence Systems
unveils the COLT range of tactical vehicle,
30 March 2012, ENP NewsWire, 2012,
Electronic News Publishing.)

Tata Motors showcases antiterrorist combat vehicle

and launches Prahar missile
launcher and armored vehicles
at Defence Expo India 2012
Tata Motors showcased a new Micro BulletProof Vehicle (MBPV) at DEFEXPO India
2012, a mobile combat vehicle for indoor
combat inside airports, railway stations
and other such infrastructure. Tata Motors
launched four other defence vehicles the
Tata 12x12 Prahaar Missile Carrier, the Tata
Light Armoured Vehicle, the Tata Mobile
Bunker and the Tata 6x6 7kl Refueler during
the event.
(Source: Tata Motors showcases AntiTerrorist Indoor Combat Vehicle concept
at DEFEXPO India 2012; Launches Prahar
missile launcher and armoured vehicles, 30
March 2012, ENP Newswire, via Factiva, (c)
2012, Electronic News Publishing.)

Eye on defence | 27

Sources
1. Aircraft component manufacturing unit in Bangalore; International Aerospace
Manufacturing is implementing an aircraft component manufacturing project in dist.
Bangalore, Karnataka, Domex New Engineering & Metallurgical Projects, 25 January 2012,
via Dow Jones Factiva, 2012 Domex Business Information Pvt Ltd.
2. Indian Navy inducts INS Chakra, Domain-B, 24 January 2012, via Factiva, 2012 The
Information Company Pvt. Ltd.
3. Indian govt planning two Ipos to raise funds, Asia Pulse, 24 January 2012, via Factiva,
2012 Asia Pulse Pty Limited.
4. Expansion: ITP opens first parts plant in Asia, Expansin, 24 January 2012, via Factiva,
2012 AII Data Processing Ltd.
5. HHV to expand with a third plant around Bangalore, Industry 2.0, 23 January 2012, via
Factiva, 2012 Nine Dot Nine Mediaworx Pvt. Ltd.
6. Obzerv Technologies gets Bharat Electronics contract, Entertainment Close-Up, 23
January 2012, via Factiva, 2012 Close-Up Media, Inc.
7. Rs 10,030 crore plan to link India with choppers, The Economic Times, 23 January 2012,
via Factiva, 2012 The Times of India Group.
8. Plan panel to allocate Rs 5k crore to develop civilian plane, The Press Trust of India
Limited, 22 January 2012, via Dow Jones Factiva, 2012 Asia Pulse Pty Limited.
9. CCS to discuss Rs1850 crore proposal for 75 trainer aircraft, The Press Trust of India
Limited, 15 January 2012, via Factiva, 2012 Asia Pulse Pty Limited.
10. MHA to buy 6 Mi-17 copters from Russia, The Times of India, 4 February 2012, via
Factiva, 2012 Bennett, Coleman & Co., Ltd.
11. Brazilian def min arrives here on Feb 4 on 5-day visit, United News of India, 2 February
2012, via Factiva, 2012 United News Of India.
12. BrahMos missile to be integrated at BATL in two years, The Hindu, 2 February 2012, via
Factiva, 2012 Kasturi & Sons Ltd.
13. Bumar sells $300m vehicles to India, Polish News Bulletin, 21 January 2012, via Factiva,
PNB Company Ltd. 2012.
14. RIL, Dassault in talks for defence venture, Indian Express, 14 February 2012, via Factiva,
2012 Indian Express Online Media Pvt. Ltd.
15. HAL prepares to manufacture Rafale combat jet in India, Indo-Asian News Service, 13
February 2012, via Factiva, 2012 Indo-Asian News Service.
16. IAF Chief Leads Delegation to Singapore, Press Information Bureau website, http://pib.
nic.in/newsite/AdvSearch.aspx, accessed 15 March 2012.
17. India, Sri Lanka hold Inaugural Defence Dialogue, Press Information Bureau website,
http://pib.nic.in/newsite/AdvSearch.aspx, accessed 15 March 2012.
18. India, Japan Coast Guard Meeting and Combined Exercises Conclude, Press Information
Bureau website, http://pib.nic.in/newsite/AdvSearch.aspx, accessed 15 March 2012.
19. Opto to partner German firm to supply AEDs to aircraft makers, The Press Trust of India
Limited, 2 February 2012, 2012 Asia Pulse Pty Limited.
20. Antony to inaugurate HAL unit in February, The Hindu, 19 January 2012, via Factiva,
2012 Kasturi & Sons Ltd.

Eye on defence | 28

21. Russia will start supplying mig-29 to India under the contract of 2010 in 2012, WPS:
Defense & Security, 13 January 2012, via Factiva, 2012 WPS Russian Media Monitoring
Agency.
22. Joint team to prepare road map for Saudi-India defense cooperation, Arab News, 15
February 2012, via Factiva, 2012 Arab News.
23. M&M inks two defence JVs, Hindustan Times, 31 March 2012, , via Factiva, HT Media
Limited.
24. Hyderabad to host missile production unit, Bureaucracy Today, 20 March 2012, via
Factiva.
25. Rs 7,000 cr to be invested to set up 9 defence units, Business Line (The Hindu), 19 March
2012, via Factiva, 2012 The Hindu Business Line.
26. TTI Announces Supply Agreement with Radiant Corporation India,15 March 2012, ENP
Newswire, via Factiva, 2012 Electronic News Publishing)
27. M&M inks 2 defence JVs, 31 March 2012, Hindustan Times, via Factiva, 2012. HT
Media Limited.
28. DCNS, Bombay IIT ink MoU for programs in naval defence, energy, 31 Marc h 2012, The
Press Trust of India Limited, via Factiva, 2012 Asia Pulse Pty Limited.
29. Larsen, Nexter Sign Pact To Bid For Indian Armys Artillery Gun Programs, 30 March
2012, Dow Jones Business News, via Factiva.
30. Santanu Choudhury, Finmeccanica Unit Selex Galileo, Indias Data Patterns Plan Defense
Electronics JV, 30 March 2012, Dow Jones International News, via Factiva, (c) 2012 Dow
Jones & Company, Inc.
31. Kalyani Group Executive: To Invest INR1 Bln To Develop Towed Artillery Gun, 29 March
2012, Dow Jones International News, via Factiva.
32. Nikhil Gulati, Tata Motors May Invest $59 Million in New Factory, 29 March 2012, The Wall
Street Journal Online, 2012 Dow Jones & Company.
33. DHS Systems signs MOU with Bharat Electronics, India Infoline News Service, 29 March
2012, via Factiva.
34. BEML Puts up Aerospace Manufacturing Complex at SEZ, Bangalore, 4 April 2012, Press
Trust of India, via Factiva.
35. Indian Rotorcraft to set up copter facility at Hyderabad, Project Monitor, 28 March 2012,
via Factiva, 2012 Economic Research India Pvt. Ltd.
36. Electronics Companies; Smiths Detection Wins $20M Indian Customs Contract, Journal of
India, 27 March 2012, via Factiva, 2012 Journal of India via VerticalNews.com.
37. Upgradation of Mirage aircraft, Indian Government News, 26 March 2012, via Factiva,
2012. HT Media Limited.
38. DCNS signs with SEC Industries a contract for the local manufacture of equipment for
the Indian Scorpene submarines, ENP Newswire, 26 March 2012, via Factiva, 2012,
Electronic News Pub-lishing.
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23 March 2012, via Factiva, 2012, Bennett, Coleman & Co., Ltd.
40. Radiola Aerospace lands plumb Indian contract, Fuseworks Media, 21 March 2012, via
Factiva, 2012 Fuseworks Limited.
41. Y. Mallikarjun, Pratt & Whitney plans to invest $150 m, 20 March 2012

Eye on defence | 29

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