Defence News

The maiden launch of Nirbhay, India‟s sub-sonic cruise missile, has been further delayed. The launch, which was to take place in November this year, will now be done in January 2013, Dr. Saraswat said. A DRDO official said the Nirbhay launch was delayed because modifications had to be made in the launcher. While India already had had a successful supersonic cruise missile in BrahMos, it felt the need to develop a sub-sonic cruise missile. Hence the development of Nirbhay, which would fly at 0.65 Mach. The Aeronautical Development Establishment, a DRDO unit in Bangalore, designed Nirbhay, which had been derived from Lakshya, a pilotless target aircraft. Nirbhay is a two-stage, surface-to-surface, terrain-hugging missile. “It takes the oxidiser from the air. So it can travel for a longer duration and a longer distance. Its range is around 1,000 km.”

BMD programme ( Ballistic Missile Defence)
The Defence Research and Development Organisation (DRDO) is set to conduct its eighth ballistic interceptor missile test any day between November 19 and 22. V.K. Saraswat, Scientific Adviser to the Defence Minister, said that while the attacker, a modified Prithvi missile, would take off from the Integrated Test Range at Chandipur, Odisha, the interceptor would blast off from the Wheeler Island and pounce on the attacker in endoatmosphere at an altitude of 15 km to 16 km. The interceptor missile is called Advanced Air Defence (AAD) system. While the attacker would mimic the path of a ballistic missile launched from a hostile country, the AAD would race at a supersonic speed to intercept the attacker and destroy it. As the crow flies, the Wheeler Island, off Dhamra village on the Odisha coast, is 70 km away from Chandipur. Asked what improvements were made in this interceptor mission, Dr. Saraswat said the modified Prithvi missile would have a higher velocity. “We have improved the accuracy of the interception in the endo-atmosphere… The interceptor will be launched in a hit-to-kill mode,” he added. The Ballistic Missile Defence (BMD) programme aims at protecting India‟s vital assets from being targeted by the ballistic missiles launched by hostile neighbours. Of the seven interceptor missiles tests conducted by the DRDO so far, six have been successful. The first interceptor mission took place in November 2006 in exo-atmosphere at an altitude of 48 km and it was successful. The second test, again successful, took place in December 2007 in endo-atmosphere at an altitude of 15 km. Out of the seven tests, five took place in endoatmosphere at a height less than 20 km. After the seventh interceptor missile test on February 10, 2012, Dr. Saraswat asserted that the success confirmed that India‟s BMD programme in the endo-atmosphere “is now ready for deployment and the country is now in a position to take it to the next phase of production and induction.”

including the ship‟s sonar and its entire communications set-up. India‟s Ambassador to Russia Ajai Malhotra described INS Tarkash as a fine example of the evolution of Indo-Russian defence cooperation from buyer-seller relationship to joint research. was delivered in April and the third one. Speaking at the induction ceremony. INS Teg. air and sea . France and China . INS Trikand. India's elusive nuclear weapon triad .” Mr. Given India‟s emphasis on indigenising defence production. it has on board many Indian systems.the capability to fire nukes from the land. president of Russia‟s United Shipbuilding Corporation. Tarkash belongs to the second batch of three modified Krivak-III (Talwar) class frigates India ordered from Russia in 2006 under a $1. Each of the new frigates is armed with eight BrahMos supersonic anti-ship missiles instead of the less potent Club-N missiles installed on the first three frigates. setting up the necessary infrastructure in India and building the first ship in a series in Russia.INS TARKASH India took delivery on Friday of the fifth Russia-built multirole stealth frigate. the country's first underwater ballistic missile "successfully" completed its developmental trials on Sunday. “It is very satisfying that whilst the ship is made in Russia. was tested for its full range over 700-km. "Now. This was its last developmental test. the 10-metre tall missile. which is the result of a joint IndoRussian cooperative effort and is probably the best supersonic missile in the world. INS Tarkash was commissioned . Even as the indigenous nuclear submarine INS Arihant gets ready for sea trials.” Even though the construction of the first and second batches of frigates was dogged by long delays. Dyachkov told The Hindu . With this twelfth test of the K-15 missile conducted from a submerged platform or pontoon in the Bay of Bengal. The first frigate of the batch." said an official. Malhotra said.” said Andrei Dyachkov.” Mr. development and production of advanced weapon systems. “Of particular note is the BrahMos missile with which it is armed. "The two-stage missile. which proved its mettle during war games and the Indian Navy‟s anti-piracy patrols in the Gulf of Aden. which were delivered to the Indian Navy in 2003-2004. is undergoing dock trials and is expected to be handed over next summer after completing sea trials in the Baltic Sea. Russian shipbuilders are ready to discuss shifting construction of warships to India. will undergo a usertrial within a month before it's integrated into the submarine. in which all mission objectives were met. which can carry a one-tonne nuclear warhead.has taken another leap closer to becoming an operational reality. which rapidly climbed to a 20-km altitude after being launched from the pontoon. DRDO officials said the 750-km range submarine-launched ballistic missile (SLBM) was now ready for induction. “We‟ve been discussing this option with our Indian colleagues and are ready to undertake a stepby-step transfer of production to India after training Indian shipbuilders. “We hope there‟ll be another contract for three frigates because they turned out to be very good and remain state-of-the-art. Russia hopes that India will place more orders for the advanced warship. Only the US. Russia.6-billion contract.

Only a nuclear-powered submarine. it is the successor missile to the Agni-V. the Akula-II class nuclear-propelled submarine leased from Russia for 10 years. which is now all set to undergo "sea-acceptance trials" after its miniature 83 MW pressurized lightwater reactor goes "critical" at Visakhapatnam soon. armed with nuclear-tipped missiles can provide a country with effective and difficult-to-detect "second or retaliatory strike capabilities". to be developed by the Defence Research and Development Organisation (DRDO).000-tonne INS Arihant. with all its pipelines being "cleared and tested" on shore-based steam for several months now. Built with four silos to carry 12 K-15s.1 There was a certain strategic rationale for developing the Agni-V: its aegis brings Beijing. and will be India’s largest ballistic missile yet at 20 metres long and weighing 65-70 tonnes. INS Arihant has been undergoing extensive "harbor-acceptance trials". or four of the 3. The utility of SSBNs (nuclear submarines with long range missiles) can be gauged from the fact that even the US and Russia are ensuring that two-thirds of the strategic warheads they eventually retain under arms reduction agreements will be in the shape of SLBMs. Consequently. The Agni-VI is reported to have a range of 6. holding that the nation would get "good news" on this front "very soon". a 5. however. has for long left a "big credibility gap" in the country's nuclear deterrence posture. but it did not come armed with "strategic" missiles due to international treaties. INS Arihant and its three follow-on submarines in the process of being built. which can stay underwater for extended periods. are the Agni series of missiles and fighters like Sukhoi-30MKIs and Mirage-2000s configured to deliver nuclear warheads.000 km range missile first tested only last April. Navy chief Admiral D K Joshi last month had alluded to this. before its reactor is "fired" for the sea-trials. invite questions as to the validity of India’s “credible minimum deterrence” doctrine for its emerging nuclear force. With China in its entirety already in range. The first two legs of the triad. however. the country's first indigenous nuclear-powered submarine. India may now have the INS Chakra. along with the K-15 and K-4 missiles. this same rationale made further-reaching and more destructive Indian missiles a weak proposition. However. joins the Prahaar missile as the new symbols of India’s po werful strategic complex. already in place with the armed forces. The Agni-VI. Both missiles.000 km. INS Arihant will of course have to test-fire the 10-tonne missile during the sea trials before it can be said that India's long-awaited nuclear triad has finally become operational." he added. what further strategic targets exist that merit an Agni-VI? What are the geopolitical advantages to be gained by an Agni-VI that outweigh the tensions and uncertainty about the intentions of India’s nuclear force that the missile generates? Minister of State for Home Mullappally Ramachandran said the issue of repealing/amending AFSPA has been under consideration of the government and Justice Jeevan Reddy Committee and the . It will hold four to six warheads. The absence of an operational SLBM.have successfully developed SLBMs till now. and is being designed as the first Indian ballistic missile to host multiple independently targetable re-entry vehicle (MIRV) warheads. bringing a symmetry and perhaps stability to their bilateral nuclear deterrence. To give a sense of the haste of DRDO missile projects.500-km range K-4 missiles under-development at present. But the development of both INS Arihant and K-15 has meandered for well over a decade now. are considered critical for India's "strategic deterrence and autonomy". There is reason to cheer but the bubbly can only be popped once the K-15 missiles are successfully tested from the 6. Shanghai and other Chinese east coast metropolises into Indian range for the first time.

the U. In the pipeline are one of the largest global defence order for 126 Rafale fighter jets from Dassault Aviation of France. bordering China. It will surpass France. Antony said that taking into account the difficult economic situation both at home and abroad.’’ he said. he has been fair to the defence sector also by increasing the budget and assuring that should there be any urgent need in future the same will be provided. but tough economic conditions prompted the Finance Ministry to cut it by Rs.904 crore.503 crore. . 1. Union Finance Minister Amidst global economic slowdown that fuelled fears of a cut in defence spending.’’ Mr. According to IHS Jane. up by Rs.78. the Finance Minister had done a good job. The Defence Ministry’s allocation was proposed to be Rs. This will include Rs 86.S. Defence Minister A. Chidambaram said while assuring the Lok Sabha that financial constraints would not come in the way of providing any additional requirement for the security of the nation. missile systems.y8qxcG3w.672 crore. 1.407 crore. just behind the U.169 crore from last year’s revised estimate of Rs.K.Administrative Reforms Commission (ARC) have also made certain recommendations on the subject. “I propose to increase the allocation for defence to Rs 2. 2. Reacting to the allocation. IHS Jane’s has predicted that India will become the world’s fourth-largest defence spender by 2020. China and Russia.indianexpress.741 crore for capital expenditure. Contract negotiations with the French firm are in an advanced stage. artillery guns. 14. multi-role fighter jets and transport planes as well as improving the infrastructure in the north-east.See more at: http://www.03. and Japan. “Factoring the current economic scenario. The country is in the process of going for big ticket purchases like warships. for which Airbus A-330 MRTT has been chosen. 25.K.4 billion in 2020. . India’s defence spending will reach $65. Difficult economic conditions notwithstanding. The budget estimate in 2012-13 was Rs. The deal is likely to be signed by the middle of this year.. which edged out Eurofighter in the race to bag the order. Chidambaram gave a 14 per cent hike in defence budget aimed at sustaining armed forces’ modernisation drive.03. estimated to be anywhere between $10 to $20 billion.93. Another key order will be for a mid-air refueller.672 crore.

22 crore was apportioned last year to assist the industry in developing prototypes under the „Make‟ category of defence procurement.03. The budget has earmarked a token Rs. “Cosmetic hike” Ms. He feels that benefits such as zero customs duty for plant and machinery extended to the industry under the National Electronics Policy should also include the defence sector. For all the talk about indigenisation of defence equipment for self-reliance in the long run.904 crore from the defence outlay.” she says. 1 crore for facilitating the Indian industry to fashion highend defence systems. Without a level-playing field. Singh is optimistic about Finance Minister P. laments Geethanjali Nataraj.672 crore. she says. The Defence Procurement Procedure (DPP) stipulates that the Ministry of Defence (MoD) bear 80 per cent of the development cost of such prototypes. projects undertaken to give a fillip to indigenisation have all been stalled for a long time. welcomes the defence outlay of Rs. 2. rue industry insiders. Gurpal Singh. Confederation of Indian Industry‟s principal adviser (Defence). Nataraj terms „cosmetic‟ the (8 per cent) hike in capital expenditure in the sector. the allocation was cancelled by the Finance Ministry when it cut back Rs. The industry does have the capability to execute projects like FICV and the TCS. Mr. like the future infantry combat vehicle (FICV) and the tactical communication system (TCS) are on a slow track thanks to the MoD‟s historic mistrust of the domestic industry. “Given the rate of inflation and the depreciation of rupee. But projects under way in this category.Among other major acquisitions in the offing are the 22 Apache attack choppers and 15 heavy-lift choppers. Chief Executive Officer of Tata Power Strategic Electronics Division Rahul Chaudhry feels „disheartened‟ at the cut in the allocation for prototype development expenditure. besides those in the pipeline like the battlefield management system (BMS). 89. the Union budget has cold-shouldered the private sector. an increase of nearly 14 per cent over the revised estimates last year in the backdrop of the “slow economic growth and the pressing needs of military modernisation”. While Rs. operational data link (ODL) and the net-centric operations system (NCOS). but the government looks the other way. Chidambaram‟s assurance that more funds would be ploughed in for enhancing security preparedness in case of need. saying the Defence Ministry has got a raw deal. there‟s hardly anything for enhancing indigenisation with the participation of private sector. 14. which has been seeking a larger role in defence production. In contrast. . Federation of Indian Chambers of Commerce and Industry (Ficci) director in-charge of defence.

which used to automatically get these orders. Nirbhay with a medium range is a different kind of missile being developed by the Aeronautical Development Establishment.). the Ministry of Defence has. The purchase of the Barak missile defence system. however. It is learnt that while approving the Army's proposal for upgunning of 300 more 130 mm M-46 field guns to a 155 mm gun system. The former Vice-Chief of the Navy. The development trial of India's first indigenously developed sub-sonic cruise missile 'Nirbhay' is likely take place tomorrow from the Integrated Test Range at Chandipur near here in Balasore district. People may not remember.” he says. "Range co-ordination work and final check-up for the test is almost complete and the test flight is to be carried out tomorrow if everything goes all right. will now be one of the contestants. “The problem lies with the procurement process which takes several years for completion. for instance. Raman P. He got the Mahavir Chakra. I sincerely hope that this is not an indication of the government‟s true priority on indigenisation and a correction will be effected before the budget is approved. The DPP is a failsafe mechanism offering little scope for departure. under development since 2007. He got Haji Pir Pass in that very difficult war.” he says. Suthan. . “You must delink corruption from capability." aDRDO scientist associated with the project said today. for the first time. Though India has the technology of supersonic missiles like BrahMos jointly developed by India and Russia. has a range of 1.000 kms. decided to allow Indian private entities to participate in a bid for making artillery guns. The missile. the DAC on April 2 also decided that the request for proposal (RFP) would also go to interested private players. While everyone gets wiser post-facto. thinks that money has never been a constraint on hardware acquisition for the forces. Vice-Admiral (retd. but its induction has made the forces more confident as it is a pretty good weapon. The budget has once again ignored the issue of extending 80-IA benefits for investments in defence manufacturing infrastructure and has not announced any schemes to give impetus to indigenous R&D. with the government getting into a scrap-all mode at a faint hint of corruption.“For decades. but likens the process to a game of snake and ladder.building. The Ordnance Factory Board. Crossing an important milestone at the last meeting of the Defence Acquisition Council (DAC). you can‟t wait for all the 100 factors to be in place to take decisions on such key issues. a Defence Research and Development Organisation laboratory based at Bangalore. He is confident that the government would make available funds for big ticket purchases. was mired in controversies. but people are scared to take decisions. he was the lion of Haji Pir Pass. but General Ranjit Singh Dayal was Gen Sundarji’s deputy. the Defence Ministry has been talking about building a defence industrial base in the country and advocating domestic research ad development.” he told The Hindu.

which is expected to be finalised at the next DAC meeting on April 20. Some transfer of technology did take place but it has all remained mothballed with the gun carriage factory in Jabalpur. The new policy is likely to make it clear that once the DAC approves a set of QRs. It was no longer possible to proceed with the original plan of upgunning all 480 guns of 130 mm. private entities such as the Tatas and L&T have been involved in making important ancillary equipment such as launchers for the Pinaka missile. While companies have been keen. this move is also being seen as a test case for opening the doors to the Indian private sector to manufacture lethal weapon systems given the problems India faces as a major global arms importer. All this will be part of the new Defence Procurement Policy. to allow the Indian private sector to participate in the bidding .This is the first time that South Block has decided to let the Indian private sector make an offensive weapon platform. In 2010. the DAC meeting. is another step aimed at giving priority to the Indian private sector so that they can set up defence manufacturing units in India. sources said. The view is that there exists a provision to approve such investment in special cases depending on the nature of technology to be transferred and that is as far as the Ministry would like to go for the moment. The defence ministry's decision. A new gradation has now been set under which the first priority would be to 'buy Indian'. the next would be 'buy and make Indian' that would allow private entities room for collaboration. Significant changes are also expected in the preparation of Qualitative Requirements (QRs) for the purchase of military equipment. it would have to be approved afresh by the DAC. sources said. For an Army facing shortage of artillery guns. either on their own or through collaboration. also gave its stamp of approval to a new process of acquisition by which buying globally would be the last option. the opportunity has never come. Insiders said that Ministry of Defence still remains opposed to increasing the FDI limit in the sector from 26 to 49 per cent. after which would come options of 'buy and make global' and then 'buy global'. The upgunning of 130 mm guns was originally awarded to Israeli firm Soltam which completed the first lot of 180 guns but it was then blacklisted. Besides. taken at the meeting of the Defence Acquisition Council (DAC) earlier this month. then no deviation would be permitted. However. This. the Army did float a request for information for the remaining 300 guns but the process ran into delays. headed by Defence Minister A K Antony. But if necessary for any technical reason.

But this is just a first step and must be seen as the beginning of a longer. this is a tall order for the domestic ordnance industry to meet any time soon. In the aftermath of the UN's approval of the Arms Trade Treaty. taken at the meeting of the Defence Acquisition Council (DAC) earlier this month. while continuing to exclude domestic private firms. the imperative of an overhaul of domestic arms production is clear. the MoD has to ensure that successful private bidders are not circumscribed by a restrictive environment. Clearly. The artillery regiments. India's ordnance factories and PSUs. The UPA's instinct to ban and blacklist foreign manufacturers after each procurement scandal has stalled India's military modernisation and eroded the military's conventional edge in the subcontinent. There was no convincing rationale for the MoD's practice of trusting foreign private arms manufacturers with its armament details. India's immediate military needs include new guns. That's set to change with the army's plans for upgunning 300 of its 130 mm M-46 field guns. But it should have come years ago. have been grounded. The new acquisition process.for artillery guns is a welcome step. There was no convincing rationale for the MoD's practice of trusting foreign private arms manufacturers with its armament details. till date have managed little beyond joint production. Buying arms in the global market as a last resort would hold only if domestic ordnance production were up to the task of meeting the military's quantitative and qualitative equipment needs. air-defence missiles to protect naval assets. They must be free to discover their partners abroad and acquire the best technology possible. in particular. approved at the DAC meeting. But it should have come years ago. The new acquisition process. places global procurement at the bottom of the pile. fighter aircraft and new-age submarines. so far. places global procurement at the bottom of the pile. private players have been restricted to the manufacture of ancillary equipment. For the long term. Buying arms in the global market as a last resort would hold only if domestic ordnance production were up to the task of meeting the . arduous process. approved at the DAC meeting. But this is just a first step and must be seen as the beginning of a longer. to allow the Indian private sector to participate in the bidding for artillery guns is a welcome step. perceived to be biased against net importers like India. That's set to change with the army's plans for upgunning 300 of its 130 mm M-46 field guns. The defence ministry's decision. Only that will give shape to the military-industrial complex that a country with the world's fourth-largest armed forces should have created long ago. arduous process. while continuing to exclude domestic private firms. such as HAL. since most of the major foreign suppliers are blacklisted.

For the long term. providing them with the time needed for developing the equipment that the military needs in the future. has the twin objectives of “infusing greater efficiency in the procurement process and strengthening the defence manufacturing base in the country”. provides a level playing field between the defence public sector undertakings (DPSUs) and the private defence companies. MoD has also granted a longstanding request by private defence companies for access to the military‟s 15-year Long-Term Integrated Perspective Plan (LTIPP). with global cases being a choice of last resort. shall be: (1) „buy (Indian)‟. (3) „make‟. or bought over the counter from a foreign vendor („buy global‟). air-defence missiles to protect naval assets. the apex decision-making body of the Ministry of Defence (MoD). fighter aircraft and new-age submarines. As Business Standard has reported (Apr 13: „Ministry‟s initiative to push indigenous development‟). so that they have the lead time needed to meet future . such as HAL. Any proposal to select a particular category must now state reasons for excluding the higher preferred category/categories”. till date have managed little beyond joint production. simplifies the „buy & make (Indian)‟ procedure to benefit Indian industry. the imperative of an overhaul of domestic arms production is clear. The Defence Acquisition Council (DAC). It stipulates that Indian defence companies will get access to the military‟s long-term equipment road map. They must be free to discover their partners abroad and acquire the best technology possible. perceived to be biased against net importers like India. private players have been restricted to the manufacture of ancillary equipment. India's immediate military needs include new guns. DPP-2013 stipulates the „categorisation‟ of each procurement case should favour indigenisation. The artillery regiments. the MoD has to ensure that successful private bidders are not circumscribed by a restrictive environment. In the aftermath of the UN's approval of the Arms Trade Treaty. since most of the major foreign suppliers are blacklisted. 2008 and 2011 in explicitly backing indigenous defence industry. this is a tall order for the domestic ordnance industry to meet any time soon. DPP-2013 goes beyond the earlier DPPs of 2002. (4) „buy & make with ToT‟. (2) „buy & make (Indian)‟. 2006. „Categorisation‟ is a key decision in each acquisition project. has revised the Defence Procurement Procedure (DPP) that details the process for buying defence equipment for the military. in which MoD decides whether the equipment should be developed and built in India („buy Indian‟ and „make‟ categories). India's ordnance factories and PSUs. and defines ambiguous terms in the DPP like „indigenous content‟. Only that will give shape to the military-industrial complex that a country with the world's fourth-largest armed forces should have created long ago. and (5) „buy (global)‟. in particular. The UPA's instinct to ban and blacklist foreign manufacturers after each procurement scandal has stalled India's military modernisation and eroded the military's conventional edge in the subcontinent. DPP-2013. The MoD announcement says DPP-2013 “provides for a preferred order of categorisation. or built in India by an indigenous consortium („buy & make Indian‟). Clearly. 2005. have been grounded. The order of preference. or built in India with transfer of technology („buy & make with ToT‟). in decreasing order.military's quantitative and qualitative equipment needs. with equipment being bought internationally only if developing and building in India proves impossible. so far. MoD today announced that the new policy.

etc) Hindustan Aeronautics Ltd has been nominated by MoD as the MToT partner. Sukhoi-30. DAC today also clarified important issues relating to defence licensing. MoD says: “MToT has been hitherto reserved largely for OFB and DPSUs through the nomination process. The TPCR will provide useful guidance to the Indian defence industry for boosting its infrastructural capabilities and directing its R&D and technology investments. Sidbi Venture Capital Ltd. after a succession of arms procurement scandals. For example. outlining the “Technology Perspective and Capability Road map” (TPCR) against LTIPP 2012 2027. only DAC will have this power. This measure is expected to have a positive impact on private-sector participation in maintenance. service. and further. CEO (Strategic Electronics Division) of Tata Power and co-chair of Ficci‟s defence committee. Now. According to MoD. a fund of Rs 50 crore for equity support out of „India Opportunities Fund‟ managed by its subsidiary.” MoD also cleared a keenly anticipated mechanism for providing micro. including licensed defence industries. most recently around the procurement of AgustaWestland VVIP helicopters. Henceforth. Hawk. air force and coast guard chiefs from the current Rs 50 crore to Rs 150 crore. We welcome this and eagerly await the details in the fine print of DPP-2013. says: “The steps enumerated today will take India and Indian industry towards substitutive self-reliance. “Sidbi has decided to earmark an amount of Rs 500 crore for providing loans (to defence MSMEs). entitling it to receive the technology and infrastructure needed to maintain. MoD has also informed DIPP that dual-use items (with civil as well as military applications) will not require licences. Besides finalising DPP-2013. Rahul Chaudhry. namely. An explicit list of defence items will clarify which items actually need a defence needs. MoD said: “DAC has approved the release of a public version of its 15-year perspective document (LTIPP). MoD says: “A complete security framework for Indian private industries participating in defence cases will be in place in the near future. DAC has tripled the financial powers of the army. in aircraft purchases (Jaguar. DAC today finalised „draft security guidelines‟ that will be circulated for consultations with stakeholders. levelling the playing field between DPSUs and private industry. documents and technology transferred to the Indian defence industry may not be secure. under the commerce ministry). DAC has also allayed apprehensions among foreign vendors and governments that information.” Separately. navy. Today. A „defence items list‟ has been finalised and sent to the Department of Industrial Policy and Promotion (DIPP. overhaul and upgrade the aircraft through its service life. The Ladakh intrusion by China points to India's imperative to review its strategic priorities . small and medium scale enterprises (MSMEs) with funds for developing defence equipment.” DPP-2013 goes a long way towards addressing longstanding demands of the Indian defence industry. MoD has addressed several key industry recommendations.” An advantage DPSUs and Ordnance Factory Board (OFB) have enjoyed over private firms has been MoD‟s nomination of selected DPSUs as the recipients of Maintenance Transfer of Technology (MToT) from foreign vendors in major acquisitions. Finally. repair & overhaul work. A DPP amendment has been approved that does away with nomination by the Department of Defence Production and facilitates selection of MToT partners by Indian bidders. in a bid to speed up financial sanctions for capital procurement. particularly the private sector. Defence Minister A K Antony has divested himself of discretionary powers to approve deviations from DPP.

despite being nuclear-armed. with a deterrent that boasts of an ICBM capability? A candid assessment will reveal we are operationally disadvantaged across the LAC. our troops remain bogged down by decrepit border infrastructure and lack of mobility. This stand-off may be defused diplomatically. With improved border infrastructure and massive airlift resources. Baffled by this defiant Chinese intrusion into Ladakh. but we need to remember that the PLA has come a long way since then. Our strategic calculations would need to keep in mind the PLA's aggressive war-fighting doctrine of "Forward Defence". matched by its robust build-up along the entire McMahon Line. That is the ground reality. But why are we in such a paradox — nuclear-armed. a coercive manoeuvre would be a different ballgame. but what it really shows is the PLA's contempt for our military capability. may have worked with Pakistan. nuclear deterrence is hardly of consequence. taken in by this flawed proposition. Removing the intrusion during the Kargil war. China belongs to a different league and we would only be deluding ourselves if we believe that our nuclear deterrent has a sobering influence on China. the Indian establishment has chosen to downplay the incident. the PLA has rapidly modernised its armed forces in comparison to ours. which have been degraded through years of neglect. As the chairman of the chiefs of staffs committee. when I visited our forward outposts on the Chinese border. What is worrisome is that we seem to have no answers to such repeated Chinese provocations across the Line of Actual Control (LAC). it would be absurd to compare our war-fighting capability with that of the PLA. In this respect. In contrast. I was heartened by the brave faces of our field commanders. yet militarily fragile? It is because we have deluded ourselves that nuclear deterrence reduces the need for conventional force levels and. the PLA can deploy up to four full-fledged mountain divisions to any point along the LAC within 24 hours. Handling the Sumdorong Chu situation in 1986 was commendable.It is almost with disdain that a bunch of Chinese soldiers have set up camp inside Indian territory. but against the PLA. In handling border situations. scarce national resources have been diverted to build a nuclear war-fighting machine that will never be used. This raises a serious question: why do we continue to remain militarily fragile vis-a-vis China. or launching Operation Parakram. Influenced by . though they knew they would be outclassed. We consequently lack the refinements needed for manoeuvre warfare in our mountainous borders with China. as the military equation is determined solely by "conventional" war-fighting capability. With a vastly upgraded conventional war-fighting capability.

it will now be necessary to give justification for not considering the other higher preference categories. for it is China's belligerence and huge capability that remains our concern. for that is what credible deterrence is about. A navy that took centuries to build and proudly ruled the waves was eclipsed by the misplaced strategic priorities of its government. Hopefully. Buy (Global). The Salient features of the DPP. with the Chinese soldiers defiantly squatting inside our territory in Ladakh. when it opted for the Polaris-Trident programme to bolster its nuclear deterrence. An atrophied Royal Navy realised the consequences of this folly much later in1982. say. More. but it ought to act as a wake-up call to review our strategic priorities. Moreover. And that is the dilemma we face. ensures a credible response. nuclear deterrence remains counterproductive unless matched by an effective and credible conventional war-fighting capability. To military professionals. Buy(Global).nuclear warfare gurus with a "nuclear mindset". (a new Para 20a) 2. This is expected to give a stronger impetus to indigenization. this would seem unconvincing. Indigenous content requirements will now extend all the way to the lowest tier of the sub- . Dismissing the PLA's intrusion into Ladakh as just another border incident may have geostrategic implications viewed in the context of China's longstanding territorial claims. we have merrily stockpiled a nuclear arsenal. The first major change that has been brought in relates to the introduction of the ‘preferred categorisation’ in the following order. which not only prevents a war but. Make(Indian). Buy(Indian). when it could barely assemble a motley group of ships to sail for the Falklands. Stipulations related to the indigenous content have been clarified and made more stringent. While seeking the approval for Áccord of Necessity (AoN) in a particular category. It cost the Royal Navy dearly. Buy & Make(Indian). if the need arises. Massive resources were diverted that emasculated Britain's conventional war-fighting capability. which remains miffed at being constantly compared to India. Where our foremost need has always been to equip and modernise our conventional force levels to match our vastly superior northern neighbour. It is mistakenly believed in some quarters that China is preoccupied with its domestic agenda and problems in the South and East China Seas and would rather not stir up a border conflict with India. What ultimately matters is "conventional deterrence". China has always been a non-status quo power. we are not going to make the type of strategic blunder Great Britain made in the 1960s and 1970s.2013. we have misplaced our strategic priorities. Buy & Make. The Ladakh incident may blow over. promulgated by MoD today are as follows: 1. The overriding need has always been to build up our conventional combat capability.

Procurement cases are also expected to be speeded up on account of enhanced delegation of powers of the SCAPCHC from Rs 50 Crores to 150 Crores and the power of the DPB from 150 Crores to 300 crores (Para 18). A method for assessment of indigenous content. Besides this. 6. 30% in the Buy (Indian) category is to be achieved on the overall cost basis. In order to encourage timely submission of the bids by the vendors and to discourage last minute requests for extension of time. the requirement of the prescribed indigenous content. 4.g. This enables the Indian vendor the time to absorb ToT. 10. e. 8. if found necessary. based on self certification by vendors. set up manufacturing facility while concurrently meeting the service requirements. The exercise to simplify the Buy and Make (Indian) procedure has been completed doing away inter alia with the requirement of short-listing the vendors through the ‘Project Appraisal Committee’ while keeping the validity of the AoN to two years permitting comprehensive consultations with the Industry (Para 25a). there is no stipulation regarding the minimum indigenous content in the Buy component and the Indian vendor is given the elbow room to achieve the prescribed indigenous content in the overall delivery. (Para 4) 3. In addition. 5. the basic equipment.Chapter) and reducing the validity period of an AoN from 2 years to one year. These stipulations will ensure more meaningful efforts towards indigenization. in the Buy and Make (Indian) cases.vendor. This is expected to bring more . has been given (Appendix ‘F’ to Chapter I) while keeping provision for audit by MoD or its nominated agency. manufacturers recommended spares. Hence. special tools and test equipments taken together. 7. the basic equipment must also have minimum 30% indigenous content at all stages including the one offered at the trial stage. Likewise. import content in the products supplied by the sub-vendors will not qualify towards indigenous content’.e. It has further been stipulated that an indigenization plan will be provided by the vendor. a scope to make up the deficiency at later stages has been provided. Impetus to indigenization would also require simplification of the Buy and Make (Indian) and Make procedure. A major set of changes aimed at making the procurement process speedier includes the stipulation to finalize the SQRs before seeking the accord for ‘Acceptance of Necessity’ (Para 17 . 9. as well as in the core components i. While a penalty has been stipulated for not achieving the required indigenous content at a given stage. it has been stipulated (Para 33) that any request for extension of the bid submission date must be made at least two weeks prior to the bid submission date with adequate justification. This will bring down the processing time of individual cases significantly.

The Tejas Light Combat Aircraft (LCA) is an Indian fighter. with declining defence budgets. control defence technology and its release is based on strategic considerations more than profit. Simplification of the Make procedure is underway and is expected to be completed in few months. while building only 30 per cent in the country. These are flawed notions. Another falsehood about indigenisation is the argument that allowing more foreign direct investment (FDI) in defence production would bring to India a rush of technology and manufacture from global defence giants. 12. The current FDI cap of 26 per cent. it is expected that this document will be well received by the Industry. which must be made to understand that dependence on foreign weapons systems is at least as great a long-term strategic threat as is Pakistan or China. the users and other stakeholders at large in the Indian Defence Sector. For Western governments. found myself lamenting the Indian strategic community's mistaken belief within that we would be largely self-reliant in defence if our current indigenisation ratio of 70:30 could be improved to 30:70. This notion is fallacious. Apart from the major salient features of the DPP 2013 enumerated above. it is design expertise and the key components and systems that money cannot buy. it will now be possible for the Indian vendor to give Maintenance ToT to another Indian vendor of their choice (Para 28) . These include use of the International Commercial Terms (INCOTERMS 2010). Last week I attended my zillionth seminar on defence indigenisation and. makes foreign investors reluctant to transfer high technology. 11. the Payment Terms and Commercial Offer have been recast as ‘Commercial Clauses’ and ‘Evaluation Criteria of Price Bid Format’. reverse that ratio and things would be fine.projects under the Buy and Make (Indian) category. even though 90 per cent of it comes from abroad. First there is the military. Operational readiness today is less vital than building our own weaponry tomorrow. What determines whether a fighter or tank is Indian or foreign is not how many foreign commercial off-the-shelf (COTS) sub-systems and systems there are inside. In the meantime. The MToT partner is no longer required to be nominated by the DDP. The appendix F and G to the RFP i. the Tejas fighter. India imports 70 per cent of its defence requirements. once the need to drive hard at indigenisation is internalised." Secondly. To manage success in indigenisation. and allows them only a meagre share of the profit. bringing payment terms for Indian Bidders on par with those for the foreign bidders. It is like saying that the Electronic Warfare systems on a Royal Navy battleship are not British because most of the chips inside were made in Taiwan. the Arjun tank. In other words. not companies. the services have held out the prospect of "imminent threat" to persuade the defence ministry to import foreign weaponry instead of adequate Indian systems that are available. Governments. This was seen in the case of the Akash air defence missile. Further measures to strengthen the Indian Defence Sector are under consideration and will be brought about after due consultation with all stake holders. "War is not imminent. the need to safeguard high-tech defence manufacturing jobs at home overrides any argument their companies make about labour arbitrage in India. it is argued.e. Rather. In Buy (Global) cases. specificity in stages and modes of payment and removal of excise duty in determination of L-1. a number of other changes have been made which are procedural in nature and aim at bringing clarity and efficiency and in the procurement procedures. stock must be taken of resources for . For too long. The defence ministry must muster the political courage to flatly say. for the zillionth time. the complex defence planning landscape must be reduced to four key players. and now an artillery gun.

and the private sector waiting for a perfect policy environment before making a grand entrance. says he is forging partnerships with academic institutions that would allow DRDO scientists. There is something to Mr Antony's uncharacteristic outburst. the DPSUs/OFs pushing the frontiers of cronyism.pursuing this goal. With an energised private sector waiting in the wings. With the military demanding immediate overseas procurement. . emboldened by success in developing technologies. A multidisciplinary body. who developed entire platforms (and a credible missile arsenal) while defying international technology denial regimes. the suggestion to stay confined to a corner of the playfield will seem heresy. Holding them back is the question of finance: a defence ministry that has spent lakhs of crores on nine defence public sector undertakings (DPSUs) and 40 ordnance factories (OFs) finds it politically risky to allocate government money to the private sector competition. the policy makers cannot confine themselves to risk-free decisions aimed at shielding officials from accusations of mala fide. Earlier this year. The defence ministry's fear of being seen as favouring a particular business house cannot block targeted involvement. But the DRDO's long-term good lies in being canalised into carefully chosen avenues rather than in dissipating energy needlessly. Avinash Chander. Individual projects can be funded through the American DARPA model.envision the Tata Design Centre. Fourthly. And major design centres can be set up . Defence Minister A K Antony called on private defence companies to abandon their "miserly attitude" towards R&D. led by the DRDO. which will be evaluated by a DRDO-led decision-making body. with design houses being set up by groups that would share costs with the government. academics and research students to work in community. must carry out a Technology Gap Assessment to identify a development road map for the future. the DRDO looking to spread its wings. For DRDO diehards. The defence ministry would rather the private sector paid its own way. systems and entire weapons platforms. waiting for the defence ministry to pick up the tab. The much-vilified Defence Research and Development Organisation (DRDO) is now an increasingly ambitious player. where top-drawer managerial and technological expertise waits to be allowed into the lucrative field of defence development and production. even big players like the Tata group and L&T have hesitated in investing in defence. while the public and private sectors can translate those into systems and platforms. The third crucial component is the private sector. the defence ministry must realise that the avoidance of decision making cannot be its only policy in this landscape of competing interests. the DRDO must focus on basic research and enabling technologies. developing far-reaching technologies that would be "transplanted" onto DRDO laboratories. But the DRDO cannot realistically be responsible for the whole gamut of development. Specific technology projects must be allocated to industry. Modalities must be evolved for funding design and development. or the L&T Submarine Research Bureau for which companies submit proposals. The new DRDO chief.

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