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30th and 31st July, 2014


Bangalore International Exhibition Centre, Bengaluru
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----------------------------------------------------------------------------------------------------------------------Organized By
ELCINA Electronic Industries Association of India
ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi 110020, India
Tel: +91 11 26924597| Fax: +91 11 26923440 | E-mail: info@elcina.com | URL: www.elcina.com

STRATEGIC ELECTRONICS SUMMIT 2014


Post Show Report

30th & 31st July, 2014, Bangalore International Exhibition Centre (BIEC), Bengaluru
The 5th Strategic Electronics Summit 2014 (SES 2014) Defence & Aerospace, was organised
by ELCINA on 30th & 31st July, 2014 at Bangalore International Exhibition Centre (BIEC),
Bengaluru. The idea of SES was mooted by the ELCINA Executive Committee in 2009. It
recognized the potential of this sector and the Indian industrys special skills in the high
technology low volume production.
ELCINA identified the following key factors, which inspired us to focus on strategic electronics
Rapid and supportive changes in Government thinking regarding Defence Production
as well as Procurement Policies. Encouraging indigenous production and value addition,
as well as participation by SMEs
Large and growing budgets for the Defence & Homeland Security

Greater importance of defence avionics, as well as, an expanding aviation industry


Increasing threat in dependence on imports, for national security equipment
High potential for employment and revenue generation
Capability and keenness of the Indian industry to participate in manufacturing

SES 2010, 2011, 2012 & 2013 Successfully Brought Industry, Defence
Establishment & Government Together !
Earlier editions of Strategic Electronic Summits demonstrated great interest and opportunity
that the industry saw in the Strategic Electronics sector and participated wholeheartedly.
Deliberations and discussions were intense and passionate between all stakeholders. There
were over 150 organisations participated as Exhibitors and / or Delegates. All the activities
like Conference, Exhibition, Technical Sessions & Buyer-Seller meetings witnessed keen
participation with over 300 delegates in the Conference and good footfalls of business visitors.
With Honble Shri MM Pallam Raju, Minister of State for Defence as the Chief Guest in 2010,
Air Marshal Jagdish Chandra, DG System, Air Hq. in 2011 & Honble Shri Pallam Raju the
Chief Guest once again in 2012, Shri MN Vidyashankar, Addl. Chief Secretary, Commerce &
Industries, Govt. of Karnataka in 2013 and top officials from Defence and Department of
Electronics & IT as Guests of Honour, the earlier four editions of the Summit proved to be an
excellent forum for sharing of views with top policy makers. Dr. Ajay Kumar, Jt. Secretary,
Dept. of Electronics & IT graced SES as the Guest of Honour in 2011 and again in 2013.
Subsequent to SES 2010 and 2011, ELCINA presented the Defence Ministry with its
recommendations and we believe that some of the key issues have been addressed in the
new Defence Production Policy 2011, which was released in January 2011, specially in favour
of SMEs.

Snapshot of Previous SES Events


1st Strategic Electronics Summit 2010
- Date 2nd July, 2010
- Venue Indian Institute of Science,
Bengaluru
- Number of Participating companies - 62
- Number of Exhibitors - 32
- Number of buyers - 9

2nd Strategic Electronics Summit 2011


- Date 29th June, 2011
- Venue HAL convention Center, Bengaluru
- Number of Participating companies - 85
- Number of Exhibitors - 21
- Number of buyers 11

3rd Strategic Electronics Summit 2012


- Date 26th 27th July, 2012
- Venue HAL Convention Center,
Bengaluru
- Number of Participating companies - 135
- Number of Exhibitors - 33
- Number of buyers - 11

4rd Strategic Electronics Summit 2013


- Date 2nd August, 2013
- Venue HAL Convention Center, Bengaluru
- Number of Participating companies Over 120
- Number of Exhibitors 33
- Number of buyers 04

A Summary of SES 2014


OBJECTIVES OF THE EVENT

Bring all stakeholders on one platform to enable better


understanding of requirements of the defence establishment.

communication

Facilitate in creating indigenous capability to manufacture defence equipment and meet


these requirements.

Create awareness about opportunities in the Strategic Electronics sector.

Involve the Small and Medium Enterprises to meet the requirements of Defence Forces.

Bridging the gap between R&D, Government organizations and businesses.

Explain and highlight the new Defence Production and Offset Policies.

Encouraging and enabling investments for developing strategic strengths.

PROGRAM DETAILS
International Conference
Conference Theme : Make Indian Dream to Reality - Transforming the Indian
Strategic Electronics Eco-System
Day -1

Defence & Aerospace Market Potential

Day -2

The Road to Indigenization

Exhibition to showcase opportunities for buyers and sellers


Buyer Seller Meet - Pre-arranged One to One Business Meetings
Special Technology/Business Promotion Sessions

and

Conference on
Make Indian Dream to Reality
Transforming the Indian Strategic Electronics Eco-System

CONFERENCE PROGRAMME
DAY 1:

30TH JULY, 2014 (WEDNESDAY)


Arrival & Registration
Welcome Address
- Mr. Subhash Goyal, President
ELCINA
Address - Dr. Maheshwara Reddy K, Group Director &
Outstanding Scientist, DARE
Special Address - Mr. Ian Felton, Deputy High
Commissioner, UK
Guest of Honour - Mr. M Maheshwar Rao IAS,
Commissioner for Indl. Development & Director of
Industries & Commerce, Govt of Karnataka
Guest of Honour Mr. S K Sharma, Chairman & Managing
Director, BEL
Chief Guest Dr. R K Tyagi, Chairman, HAL
Tea Break; Inauguration & Visit of VIP Guests to Mini Exhibition
Session II - Defence Electronics Market Potential and
Opportunities for ESDM Companies
Lt. Gen (Retd.) A K S Chandele, PVSM, AVSM Session
Chairman - Policies and procedures to promote Self
Reliance and Indigenisation in Defence Electronics
Cdr K Arun, Sr Systems Manager, WESSEE
Dr. P Sivakumar, Director, CVRDE Combat Vehicles &
Unmanned Ground Vehicles
Mr. N Ramachandran, CMD, MEL Systems & Services &
Past President ELCINA
Mr. Sanjay Handu, Director, TE Connectivity

9:00 9:30 am
9:30 11:00 am

11:0011:30 am
11:30 1:00 pm

Networking Lunch
Session III - Enabling Policies DPP & Defence Offsets for Make &
Buy Indian

1300 1400 HRS


14:00 15:00 HRS

Col (Retd) K V Kuber, Advisor, NSIC -Defence Offsets


and their Business Potential
Brig (Retd.) S C Sharma, Axis Aerospace &
Technologies -Capabilities of Indian Industry in Defence
Electronics
Mr. Vipin Tyagi, Director, Center for Development
of Telematics (C-DOT)- Secure Telecommunications
for Defence Sector

Technology Sessions: :
SESSION I

1530 1630 Hrs Hindustan Aeronautics Ltd. (HAL)

SESSION II

1630 1730 Hrs Directorate of Indigenization,


Ministry of Defence

DAY 2:

31ST JULY, 2014 (THURSDAY)


Session I The Road to Indigenization

9:30 11:00 HRS

11:0011:30 HRS
11:30 13:00 HRS

Brig Sanjay Prasad, DDG Indigenisation, Dte Gen of


EME
Mr. P Sudhakar, CMD, ECIL Industry Address
Mr. S P Bhattacharya, General Manager (MCSRDC),
HAL
Mr. Ashok Atluri, CMD, Zen Technologies -Industry
Perspective on Indigenization
Tea Break; Inauguration & Visit of VIP Guests to Mini Exhibition
Session II - Requirements of Homeland Security and Paramilitary
forces
Session Chairman Mr. T Vasu, Past President
ELCINA and Director Tandon Group
Shri Ashok Dohare, IPS, Addl. Director General Of
Police, State Cyber Police, M.P.
Dr. A P Maheshwari, IPS, IG (CRPF), Northern Sector
Mr. N. S. Mahesh, Agilent Technologies India Pvt. Ltd.

1300 1400 HRS

Networking Lunch

Technology Sessions:
SESSION I

1400 1445 Hrs Electronics Corporation of India Ltd.

SESSION II

1500 - 1600 Hrs Centre for Materials for Electronics


Technology (CMET)

Buyer Seller Meetings (Jacaranda Hall)


1430 1630 Hrs
Bharat Electronics Ltd (BEL)
C-DOT
Hindustan Aeronautics Ltd. (HAL)
Dte of Indigenisation, Army

List of Participating Companies


EXHIBITORS/SPONSORS

Agilent Technologies
Amphenol Interconnect
Anritsu India
Anvin Technologies
Autocal Solutions
Bharat Electronics Ltd.
C-DOT
Centum Electronics
Dexcel Design
Digital Circuits
ECIL
EFY
Electrosolve
ESSCI
Geosensors
GMR
Growcontrols

HAL
Hical
Hindustan Aeronautics Ltd.
Intron
Kaynes Technology
MEL Systems
Miracle Electronics
Navika Electronics
Nihon Communications
Pentair
Rohde & Schwarz
Saankhya Lab
SLN Technologies
Structural Solution
TUV Rheinland
UKTI
Weiss Technik

DELEGATES/SPONSORS

3G Wireless
515 Army Base Workshop
Aarjay International Pvt Ltd
ADS Group Limited
Aeronautical Development
Agency (ADA)
Aeronics eMaRoh Pvt Ltd
Aerospace Engineers
Amara Raja Electronics
Limited
Applied RealTech Systems
Pvt Ltd
Ashok Leyland
Astra Microwave
Astute Sattva Electronics Pvt
Ltd
Atotech India
Avurva Infotech
Axis Aerospace
BAeHAL
BE Analytic
Bharat Dynamics Ltd.
Border Security Force - BSF
Brahmos Aerospace

Bureau of Police (R&D) Min. of Home Affairs


C&S Electric Ltd
CAIR
Captronic Systems Pvt Ltd
Champion Electronics
CII Guardian International
Limited
C-MET
Communication Trg. Inst. IAF
Cosel Asia Ltd, India Liaison
Office
Crompton Trading Company
CRPF
CVRDE
Deepti Electronics
Defence Avionics Research
Establishment (DARE)
Diagnosys Electronics (I) Pvt
Ltd
Directorate of Indeginisation
DRDO
Dynalog India
EADS DS India Pvt Ltd

Ealone
Electrical & Instrument Trg.
Inst.-IAF
Elico Ltd.
Elin Electronics Ltd
Elkay Electromech India Pvt.
Ltd
Ellsworth Adhesives India
Pvt Ltd
EMI Solutions Pvt Ltd
Entec Engineering
ENTEST Technologies Private
Limited
Entuple Technologies Pvt Ltd
EXPANDYS Ltd
Federation of Indo Israeli
Chamber of Commerce
Flextronics
GAD Aerospace Private
Limited
Gati-KWE
Global SMT Packaging
Gyanjes Electrotek
Hitech Magnetics &
Electronics Pvt Ltd
IETE, Bangalore
Indo American Chamber of
Commerce
Indus Teqsite Private
Limited
Infineon Technologies
Invineon Technologies
Private Limited
JAGRUTI ELECTRONIC
TECHNOLOGIES
Latitude Edutech
Leo Circuit Board
MACOM Technology
Solutions (Bangalore) Pvt
Ltd
MAK Controls & Systems
MAP Electronics
Mark TechPro & Consultants
Market Research Reports
Mathwork
Millennium Power & Security
Solutions
MP State Cyber Police
Multek

Multisphere Power Solutions


Naabhya Interconnect LLP.
Naval Science &
Technological Laboratory
(NSTL)
Nicomatic India Electronics
NSIC
NSTL
OSR Consultants
Perfect Controls
R Tips Technologies
Rajdeep Automation Pvt Ltd
Rangsons Electronics
RBP Technology (India)
RIICO
Ritz Shipping & Logistics Co.
RMC Electronics
Sahasra Electronics
SGS Tekniks Mfg.
Sika Interplant Systems
Limited
Smartlink Network
SN Industrial Consultants
(SNIC INDIA)
Sri City
Stanesh Semiconductor
STMicroelectronics Asia
Pacific Pte Ltd
Syratron Technologies
Systems Aids
Tandon Group
Tata Power SED
TE Connectivity
Tech Mahindra Ltd
Teknic Electromeconics
Test and Verification
Solutions India Pvt Ltd
Titanium Industries
Toshikcon
TRIBI Systems Pvt. Ltd
Trigya Exim Pvt. Ltd
Vantage Technologies
Vectron
Veer-O-Metals Pvt Ltd
WESEE
Xtraaedge
Yeshshree Press Comps
Zen Technologies

STATUS OF INDUSTRY AND OPPORTUNITIES


The Strategic Electronics sector presents an unprecedented opportunity as well as
challenge for our country. This is equally so for the domestic industry which needs to
play a much greater role in this sector. The strategic electronics segment encompasses
Communication systems, Radars & Sonars, Network Centric systems, Electronic Warfare
systems, Weapon systems, Satellite based Communication, Navigation and Surveillance
systems, Navigational aids, underwater electronic systems, infra-red based detection
and ranging system, disaster management system, internal security systems .. the list
is long. All modern weapon systems, military, aerospace, naval or for internal security
depend heavily on electronics.
The production of strategic electronics in India has been growing steadily from Rs. 5700
crores in 2007-08 to Rs.9000 crores during 2010-11. As per projected growth rates,
electronics production in Defence Sector in India is likely to reach Rs.12,000 crores
during 2012-13 and exceed Rs 13,800 Crores during 2013-14 recording a growth of over
15%. This growth is fuelled by the expanding budgetary allocation for Defence Sector
which jumped from Rs. 164,415 crores in 2011-2012 to Rs. 193,407 crores in 2012-13
and further allocation has been increased by 5% to Rs 2,03,672 crore for 2013-14 with
provision for further funding depending on actual requirements.
Of this, Capital expenditure, which mostly caters for modernisation requirements,
accounted for Rs 79,579 crores in 2012-13 and was increased by 9% to Rs 86,741
Crores in 2013-14.
The Defence Procurement Procedure 2011 for capital equipment has come into effect
from January 2011 and incorporates simplifying the purchase mechanism. The scope of
the offset policy guidelines have been expanded to include civil aerospace, internal
security and training within the ambit of eligible products and services for discharging
offset obligations offering an immense growth opportunity for domestic electronics
manufacturers serving Defence segment.
For the first time in India, a Defence Production Policy was announced and became
effective from 1 January, 2011. The objectives of the Policy are to achieve substantive
self-reliance in the design, development and production of entire range of Defence
equipments and encourage SMEs to play an active role in this endeavor.
SES brings this opportunity to domestic players and endeavors to bring about
partnerships with global players who are vital for meeting the strategic needs of the
country.
Offset Policy - a new beginning for domestic players
India's defence offset policy is being seen as a key driver for growth and modernization
of the defence industry base. Modified in 2009 & 2013, it is expected to provide
manufacturing and business opportunities of Rs.40,000 crores over the next five years
and has opened doors for private players, mainly domestic players.
Following are the highlights of the amendments to the DPP-2011 which have been
brought into effect from 1st June 2013:
1. Prioritisation of Various Categories for Capital Acquisitions under Defence
Procurement Procedure
Preference for indigenous procurement in the Defence Production Policy 2011 has now
been made a part of DPP through an amendment that provides for a preferred order of
categorization, with global cases being a choice of last resort.

2. Release of Public Version of Long Term Integrated Perspective Plan (LTIPP)


The DAC has approved the release of a public version of its 15-year perspective
document (LTIPP), outlining the Technology Perspective and Capability Roadmap
(TPCR) against LTIPP 2012-2027. s and directing its R&D and technology investments.
3. Maintenance ToT (MToT) no longer through Nomination
MToT has been hitherto reserved largely for OFB and DPSUs through the nomination
process. The DPP does away with nomination by Department of Defence Production and
facilitates selection of MToT partners by Indian bidders.
4. Advance Consultations for Make Procedure
The DAC has approved an amendment mandating consultations to begin sufficiently in
advance of actual procurement by Service Head Quarters (SHQs), so that capital
acquisition plans can be translated into national defence R&D and production plans.
5. Simplification of Buy & Make (Indian) Procedure
The DAC has approved an amendment further simplifying this complex category.
6. Clear Definition of Indigenous Content
To enhance indigenization, indigenous content has now been defined in an unambiguous
manner, providing requisite clarity and a common understanding.
7. Ensuring faster progress in Make and Buy & Make (Indian) cases
The Ministry has a limited number of acquisition cases under Make and Buy & Make
(Indian) categories, with an estimated value of Rs. 1,20,000 crore. Instructions have
been issued for speedier conclusion of these cases.
8. Defence Items List
The Defence Items List has been finalised by the Ministry and sent to DIPP for
notification, which will bring required clarity in the licensing process.
9. Licensing for Dual Use Items
The Ministry has categorically clarified to DIPP that dual-use items will not require
licensing, thereby bringing added clarity to the licensing process.
10. Consultations on Security Guidelines for Indian Defence Industry
It is expected that a complete security framework with guidelines for Indian private
industries participating in defence cases will be in place in the near future.
11. Resolution of Tax-related Issues
Resolution of deemed exports status for certain defence projects and rationalisation of
tax and duty structures impinging on the Indian defence industry has been taken up by
the MoD with the Ministry of Finance.
12. Funds for MSMEs in the Defence Sector
The Defence Production Policy 2011 requires the setting-up of a fund to provide
necessary resources for development of defence equipment. In order to ensure regular
supply of funds to MSMEs involved in manufacturing of defence products, SIDBI has
decided to earmark an amount of Rs. 500 crore for providing loans, and further, a fund
of Rs. 50 crore for equity support out of India Opportunities Fund managed by its
subsidiary, namely, SIDBI Venture Capital Ltd.
13. Efficiency and Transparency in Defence Procurement
A stipulation to freeze the SQRs before the Acceptance of Necessity (AoN) stage has
been accorded, and the validity of AoN has also been reduced from two years to one
year.
14. Enhanced Delegation of Financial Powers
The financial powers of Service Chiefs/ DG Coast Guard have been enhanced from Rs.
50 crore to Rs. 150 crore for capital acquisition cases.
15. Powers to DAC
Approval for all deviations from the Defence Procurement Procedure will henceforth be
sought from the Defence Acquisition Council instead of the Defence Minister.

The Offset opportunity is expected to bring in large volumes of business the size of
this opportunity is estimated at USD 10-15 Billion over the next 4-7 years.
The current global defence expenditure was over US$ 1.465 Trillion with US being the
largest with 40% share while Indias share was 2.1% (~US$30 Bn+). India is currently
among the top 10 spenders worldwide with its defence expenditure growth at about
9.3%. Indias defence Expenditure was distributed as follows - 46% on the army, 30%
on air force, 19% on navy & balance 6% others. A larger share of capital expenditure
went to the Air Force at 40%, the Army got 28%, Navy 25% and 7% to others.
Recent Developments:
Categorisation of Products Changed
Through an Office Memorandum dated August 25, 2014, Defence Product List
categorisation has been updated wherein Category C has been removed and products
are classified as A and B only. Category A products involve highly classified and
sensitive items from the security angle and the manufacturing of these items would
require the highest level of security. Category B include semi-finished products, subassemblies, sub-systems of main weapons/ equipments/ platforms and some finished
products of lesser degree of sensitivity.
Security Manual for Licensed Defence Industries issued in June 2014
Department of Defence Production issued Security Manual provides the security
architecture that needs to be put in place by the Indian defence companies in the private
sector before undertaking the manufacturing of Defence products for which they have
been issued industrial licence under IDR Act. The level of security will depend upon the
category of the product, the company intends to manufacture. Under all circumstances,
the companies with whom any classified information is shared by the Government as a
part of the procurement contract or otherwise would come under the purview of Official
Secrets Act, 1923.
Requirement of Industrial Licence for Maintenance, Repair and Overhaul (MRO)
activities
The issue of grant of Industrial License for Maintenance, Repair and Overhaul(MRO)
activities in Defence Sector was under consideration in this Department and it has now
been decided (OM dated 26, June, 2014) with the approval of Competent authority, that
MRO activities in Defence sector may be treated as services and should not be subjected
to the Industrial License under IDR Act unless it actually involves manufacturing of any
components/ sub-assemblies which are licensable and that product should remain the
property of the same customer after MRO operation.
Facilitation Cell for Defence Offset
Defence Offset Monitoring Wing (DOMW) has established a facilitation cell for foreign
vendors and Indian Offset partners to interact and clarify issues related to offset (OM
dated 14/02/2014).

Homeland Security in India


Presently, the cumulative annual budget allocation for all States and Union Territories
under the specific expenditure head of Police is approximately INR 44,354 crores,
which, despite a 21.7 per cent increase over the 2008-09 amount of INR 36,434 crores,
still amounts to a meager 4.3 per cent of the total budgeted expenditure of all States
and Union Territories in 2009-10 . Of this amount, more than 80 percent is spent on
salary and maintenance of the forces and only about 20 percent is available for training
and other capability building activities. In addition to this amount, the Ministry of Home
Affairs released INR 1,230 crores as central funds for the modernization of Indias police
forces in 2009-10 . Also, in order to enhance the Homeland Security of the country
through a specific focus on certain identified cities, the Ministry of Home Affairs allocated
over INR 450 crores for city surveillance projects. The Indian homeland security budget
reached US$10.1 bn in 2012and will surpass US$ 15 bn by 2015 providing a huge
opportunity to domestic as well as foreign vendors.
Key equipment with supply potential for industry players:. Explosive detection
and containment, EO-IR sensors including Night vision devices, Intelligent Airfield &
Runway Surveillance & Fallen Object & Debris Detection System, Automatic Vessel
Detection, Identification & Classification system, Perimetric control including Boom
Barrier, Bollards, Turnstiles, Door, Frame Metal Detectors, Scanners : Hand-held, Body
Scanners, Baggage Scanners, Access Control System including Biometrics & RFID Cards,
Surveillance including Intelligent Surveillance System, Mobile Video, Surveillance, CCTV
& PTZ Cameras, DVR's, UAVs, UUVs, UGVs.
Establishment of Centre of excellence on internal security (CEIS) at IITBombay by Indian Government in association with private industry. CEIS with its state
of the art facilities is expected to function as a resource centre that will pursue research
and development (R&D) into cost effective electronic equipment that can then be mass
produced by Indian industry for India's security agencies.

SUMMARY OF PROCEEDINGS

The 5th edition of Strategic Electronic Summit was inaugurated by Shri R. K. Tyagi,
Chairman, Hindustan Aeronautical Ltd. on 30th & 31st July, 2014 at Bangalore
International Exhibition Center HAL Convention Centre (BIEC), Bengaluru.

Day 1 30th July, 2014 - Inaugural Session

Shri R. K. Tyagi, Chairman, Hindustan Aeronautical Ltd.:


Dr. Tyagi, the Chief Guest, he drew attention to the fact that imports of electronic items
is going to surpass petroleum import bills and in near future it will become a heavy
burden on foreign exchequer. He reminded about the governments commitment to
overcome this problem with the help of new Electronics Policy. He apprised the audience
about the Skill Council initiative of HAL to overcome the demand-supply gap of skilled
manpower in the segment of aerospace.
Dr. Maheshwara Reddy K, Group Director & Outstanding Scientist, Defence
Avionics Research Establishment (DARE) :
According to Dr. Reddy India needs to expedite its efforts for technology up-gradation
through rigorous research and development initiatives. He also mentioned various
government policies for technology transfer to private manufacturers.
Mr. Ian Felton, Deputy High Commissioner, UK :
Mr. Felton the Special VIP Guest, informed participants about the distinct status that UK
is enjoying in the electronics and semiconductors market. He drew attention towards the
potential of an alliance of Indian firms with their UK counterparts. Mr. Felton emphasized
the importance of quality that UK firms adapt in their designing and production
processes. He also invited domestic players to come and have alliances with UK firms in
India.

Mr. Maheshwara Rao, IAS, Commissioner for Industrial Development & Director
of Industries & Commerce, Govt. of Karnataka :
Mr. Rao was the Guest of Honor for the event. He apprised the audience about
Karnataka Governments intensions to support and promote domestic manufactures
involved in Aerospace and defense productions. Mr. Rao informed about governments
initiative of establishment of dedicated Aerospace Park near Bengaluru airport. He also
invited industry players for any support that his office can offer.
Mr. S K Sharma, Chairman & Managing Director, Bharat Electronics Ltd. (BEL) :
Mr. Sharma was the Guest of Honor for the event. He mentioned that buying from
small domestic manufacturers is a win-win situation for both the parties, and it is not
obligatory in nature. He wished domestic industry to achieve greater heights in the
times to come and invited them to work for and with BEL. Mr. Sharma explained the key
role that BEL was playing in strengthening the domestic value chain and special efforts
they were making in engaging with SMEs to promote domestic manufacturing in
Strategic Electronics.
Mr. Subhash Goyal, President ELCINA & Managing Director, Digital Circuits Pvt.
Ltd.:
In his opening remarks, Mr. Goyal welcomed all the guests and speakers in SES, 2014.
He highlighted the growing importance of Defense and homeland securities to counter
external and internal threats. He also mentioned the fact that India is among the top ten
in terms of defense expenditures and growing importance of electronics in this sector.

Session II Defence Electronics Market Potential and Opportunities


Enabling Policies DPP & Defence Offsets for Make & Buy Indian

Lt. Gen. (Retd.) A K S Chandele, PVSM, AVSM chaired the 2nd session on Defense
Electronics- Market Potential and Opportunities for ESDM. His topic of discussion
for the session was Policies and procedures to promote Self Reliance and Indigenization
in Defense Electronics. He began by giving an overview of the modernisation plan of the
armed forces listing the major equipment requirements, analyzed the strategic electronic
component of these requirements and discussed the strengths and weaknesses of the
indigenous industry in meeting these requirements. Apart from procurement of new
equipment, he discussed the issue of life time sustenance of existing imported
equipment through indigenization of spare parts and establishing MRO facilities. He
emphasized the importance of creation of a conducive policy environment for the private
sector, particularly the MSMEs.

Cdr. K Arun, Sr. Systems Manager, WESSEE:


Cdr. Arun suggested a proactive interface of industry with Indian Navy regarding supply
of indigenous goods. He advised industry to visit the portal of Directorate of
Indigenization of Navy on which Navy has posted its 15 years requirements. Cdr. Arun
also emphasized the need to reduce time between inception and delivery to make the
deals feasible.
Mr. N Ramachandran, Past President ELCINA & CMD, Mel Systems & Services :
Mr. Ramachandran spoke about the overall dynamics and problems faced by domestic
entrepreneurs in the production of Strategic Electronics. His emphasis was on the
mismatch between fast changing technology and the speed of its adoption, particularly
through manufacturing in the country leading to slow growth rate towards self-reliance.
He also stressed on the need for establishing hi-tech testing facilities for electronic
equipments in the country. Mr. Ramachandran also presented an action plan for speedy
technology transfer from government research bodies like DRDO to domestic
manufacturing establishments.
Dr. P Sivakumar, Director, Combat Vehicles Research & Development
Establishment (CVRDE):
Dr. Sivakumar appreciated the concerns of Mr. N Ramachandran and assured that most
of the concerns may be addressed within a years time. He also emphasized that
domestic players should struggle hard to acquire and develop indigenous technology so
that defense industry may consider them empanelling in their list of vendors. Dr.
Sivakumar mentioned certain strategic requirements of the defense industry on which
private domestic players can work upon since most of these requirements are fulfilled by
imports only.
Mr. Sanjay Handu, Director, TE Connectivity:
Mr. Handu appreciated the intention of government to strengthen the domestic
electronic industry which is evident through catalytic policies like National Policy on
Electronics and National manufacturing policy. He highlighted that the Indian defense
electronics industry is currently poised on a similar inflexion point as was observed in
past history for industry segments like automotive and telecom that went through
similar challenges and then sudden explosive growth. Mr. Handu also drew attention to
the demand supply between indigenous production and imports in the defense sector,
which should be perceived as an opportunity for growth & domestic players. He
emphasized the need for a calibrated approach to indigenization and synergy
between government and related private industry for timely opportunity realization.

Session III Enabling Policies DPP & Defence Offsets for Make & Buy
Indian

Col. (Retd.) K. V. Kuber, Advisor, NSIC coordinated the 3rd Session on Enabling
Policies DPP & Defence Offsets for Make & Buy Indian. Col. Kuber spoke
extensively about challenges that MSMEs face in the Defence Electronics sector and not
provided a fair and equal opportunity. He made various recommendations such as
Government must pay for withdrawal of RPFs under the NCNC Policy. He also
recommended that there should be special preference for purchasing from MSMEs under
BUY Indian policy. He advised MSMEs to keep focusing on exports also since the
previous years export figures are quiet encouraging.
Brig. (Retd.) S C Sharma, Axis Aerospace & Technologies :
Brig. Sharma suggested various ways to bridge the gaps between MoD and MSMEs in
India. He presented his vision of India being a Global force in the production of strategic
electronics through policy modifications.
Mr. Vipin Tyagi, Director, Center for Development of Telematics (C-DOT):
According to Mr. Tyagi, R & D should be the focal point of government as well as private
players to achieve sustainable self-reliance. He suggested that Government of India
should increase its budget on R&D to compete with China and other tech savvy
countries. One of his most valuable suggestions was to focus on Communication
Infrastructure in the country and its sustainable benefits in defense and commerce.
He discussed the importance of faster communication and mentioned that if a message
leads by nano second, it may earn billions of Dollars and can save several lives.
Technology Sessions: Day 1

Session I Hindustan Aeronautical


Limited (HAL)

Session II - Directorate of
Indigenization, Ministry of Defence

Mr. S P Bhattacharya, General Manager


(MCSRDC-HAL), HAL

Col. Ashutosh Verma

Day 2 31st July, 2014 - The Road to Indigenization

Brig. Sanjay Prasad, DDG Indigenisation, Dte Gen of EME

Brig. Prasad drew attention to the fact that process of phase-wise indigenization is on
full swing within the defense forces and invited private players to be a party to it. He
informed that defense forces are ready for technology sharing on selective basis and
providing testing facilities to domestic manufacturers.
Mr. P Sudhakar, CMD, ECIL Industry Address

With wide experience of research and implementation of various projects in the defense
sector, Mr. Sudhakar discussed the importance of indigenization and the difficulties
involved in it. He informed about various achievements of ECIL in the area of nuclear
installations and defense sector.
Mr. S P Bhattacharya, General Manager (MCSRDC-HAL), HAL :

Mr. Bhattacharya invited domestic players to supply their products to HAL and shared
details of his organizations intensions to prioritize domestic sourcing. He discussed
various research initiatives of HAL along with the production facilities at Korwa,
Hyderabad etc. Mr. Bhattacharya also invited private domestic manufacturers to visit
their research establishments and see how it may serve their cause of modernization. He
discussed the issues faced by the local players especially related to fast changing
technology and long production cycles in India. He also urged the Government to
streamline issues related to business environmental factors whether it is roads, power,
cost of finance or other factors.
Mr. Ashok Atluri, CMD, Zen Technologies:

Mr. Atluri highlighted the present situation of Governments buying and payment
processes and suggested ways to make it more encouraging for the domestic players.
He expressed his concerns over excessive reliance on foreign vendors since supply of
crucial equipments and parts may be disturbed during the times of war and hence
promoting domestic manufactures is not a matter of economic importance but also a
strategic one. Mr. Atluri also requested and advised single tender system for domestic
players especially when the defence product is designed in India. A new category with
highest priority - Buy Indian with Indigenous Design category - is a must if we intended
to be self-reliant. Benchmarking based on international pricing was a must. He insisted
that FDI should be allowed only when key technologies are brought into India and
indigenized.

The 2nd Session on Requirements of Homeland Security and Paramilitary Forces was
coordinated by Mr. T Vasu, Past President ELCINA and Director Tandon Group :-

He welcomed various renowned personalities in the field of homeland securities from


Karnatka, M.P. and CRPF. He discussed various problems and threats with which
paramilitary and police forces are dealing. Mr. Vasu also mentioned the efforts of
government for the modernization of homeland security by allotting adequate budget
provisions and sanctions in this financial year thereby offering ample opportunities for
the manufacturers also. He was specific in requesting the officials concerned that the
efforts by the entrepreneurs should not go waste thru cancellation of the tenders for
whatever reason be. This factor has demotivated many companies in this sector.

Dr. A P Maheshwari, IPS, IG (CRPF), Northern Sector

Dr. Maheshwari emphasized the synergy between the requirements of security forces
and domestic manufacturing industry. He highlighted that more showcasing of domestic
products is required and appreciated ELCINA for giving a platform where representatives
of defense/ homeland securities can interact with domestic manufacturers. He
mentioned certain specific requirements of security forces and invited industry to
respond.
Shri Ashok Dohare, IPS, Addl. Director General Of Police, State Cyber Police, M.P.
Mr. Dohare informed about the governments initiative of making a National Grid for
Police on which Police forces of all States and Union Territories can share their
information and coordinate accordingly. He recommended the concept of Digital
Documentation to replace paper work and the delays involved in the same.
Mr. N. S Mahesh, Agilent Technologies India Pvt. Ltd. gave presentation on the the

various instrumentation, Test & Measurement solution available today for Strategic
Electronics.
Vote of Thanks
The event concluded with a Vote of Thanks by Mr. T Vasu. The industry leaders made a
strong recommendation that ELCINA should take up these issues directly with the
Defence establishment and officials who are involved in the purchase process. It was
recommended that recommendations from the Summit would be made to the Defence
Ministry at an early date so that highlighted challenges were addressed urgently.
Technology Sessions: Day 2

Session I Electronics Corporation of


India (ECIL)

Session II Centre for Materials for


Electronics Technology (C-MET)

SNAPSHOTS OF THE EVENT

Buyer-Seller Meetings

C-DOT Sourcing Team

HAL Sourcing Team

BEL Sourcing Team

Directorate of Indegenization - ARMY

MEDIA COVERAGE

Publication: Business Line


Edition: Bangalore
Date: 30th July, 2014

Publication: Deccan Herald


Edition: Bangalore
Date: 31st July, 2014