eye on defense - october 2012
DESCRIPTION
EY India\'s Quarterly Defense newsletter.TRANSCRIPT
• Introduction
• Unmannedaerialvehicles:Indianmarketassessment
01
02
• OffsetPolicy2012:acomprehensivereview
09
• Nightvisiondevices:amarketassessment
14
• RequestforInformation(RFIs) 23
• Requestforproposal(RFPs) 24
• ListofIndustrialLicenses(ILs)filedforthemonthofJuly2012-August2012
26
• Newprojects/investments/contracts 27
• Jointventuresandalliances 29
• Country-leveldealsandinitiatives 30
• Industrybuzz 31
• Sources 34
October2012 Eye on defense
Dearreaders,
Thelastfewmonthshavebeenparticularlyexcitingforthedefensesectorwiththeannouncementofthelong-awaitedRevisedDefenseOffsetGuidelinesandtheclearanceofsomekeyprocurementprograms.
Amidthisrapidlyevolvinglandscape,wearepleasedtopresenttheEyeonDefense,Ernst&Young’squarterlynewsletterondefensefortheperiodJuly–September2012.ThecurrentissueofEye
onDefensecoverskeytopics,whichincludeacomprehensiveanalysisoftherecentlyannouncedrevisedDefenseOffsetGuidelinesandmarketopportunitiesforrelativelynewtechnologyproductssuchasUnmannedAerialVehiclesandNightVisionDevicesbothofwhichhavemajorprocurementprogramsontheanvil.
WiththerecentrevisionsinDefenseOffsetGuidelinesallowinginvestmentin“kind,”technologytransferasavalidmethodofoffsetdischargeandmultiplierstoincludemicro,smallandmediumenterprisesaspartofoffsetprograms,wefeelthatthedomesticdefenseindustrywilldefinitelygetashotinthearmandIndiawillbeabletoclaimitsrightfulplaceinglobalhigh-technologypeckingorder.Thenewpolicywillalsoaffectbroad-baseddevelopmentofthesynergisticsectorsofinland/maritimesecurityandcivilaviation.
Amongtheregularsections,wehaveindustriallicenseapplicants,newprojectsandinvestments,jointventuresandalliances,country-leveldealsandthelatestbuzzintheindustry.
Wehopeyouenjoyreadingthisissue.Ithasbeenourconstantendeavortomakethispublicationincreasinglyrelevanttoyouandwillappreciateyourcommentsandsuggestionsinthisregard.
K. Ganesh RajPartnerandLeaderAerospaceandDefensePractice
Unmanned aerial vehicles: Indian market assessmentUnmannedaerialvehicles(UAVs)orunmannedaircraftsystems(UAS)canberemotelycontrolledorcanflyindependentlybasedonpre-programmedflightplansorbemorecomplexdynamicautomationsystems.Theseplatformsareusedforavarietyofpotentialmilitarymissionssuchasreconnaissanceandsurveillance,targetacquisition,targetdesignation,communicationsrelay,battledamageassessment,signalintelligenceandforattackroles.AlthoughUAVsrepresentarelativelysmallsegmentoftheaerospacemarket,theyconstitutethedynamicandthemostpromisingsub-marketoftheindustry.Theattentiontowardthemisduetotheirpotentialforamajorexpansionandnewrolesinthedefenseandhomeland/civilapplications.TheclassificationsofUAVsarefairlyfluidandtheycanbedoneonthebasisofperformanceaspectsoronthebasisofmissions.OneclassificationthatiswidelyusedworldwideisdonebytheUSmilitary,whichprofilesUAVsintotiersbasedonaltitude;butotherfactorsincludeendurance,speed,rangeandsize.
T I E R
III
T I E R
II+
T I E R
I
T I E R
II
MQ-1 Predator, IAI Heron IAI
Searcher, RQ-2
Pioneer Netra
High Altitude, Long Endurance
UAV (HALE/HAE)
Medium Altitude, Long Endurance
UAV (MALE)
Low Altitude, Long Endurance
UAV
Small/ Micro UAV
A
L
T
I
T
U
D
E
High Altitude, Long Endurance
but low observable
Source:Q-TechSynergy
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India UAV market overviewTheIndianArmywasthefirsttoacquireUAVs,inlate1990sfromIsrael,followedbytheIndianAirForce(IAF)andNavy.Intheinitialyears,mostoftheUAVsoftheIndianArmedForceswereprocuredfromIsrael’sIAIMalat.TheArmyinitiallyobtainedtheSearcherMarkI,followedbytheSearcherMarkIIandfinallytheHeron.TheIAFacquiredtheSearcherMarkIfollowedbySearcherMarkIIbutacquiredtheHeronUAVspriortotheIndianArmy.TheAirForcehas,oflate,acquiredtheHarop,againfromIsrael,whichismorelikeanUnarmedCombatAirVehicle(UCAV).TheIndianNavyalsoacquiredtheHeronUAVs,whichsuiteditslongrangeoffshorerequirements.AllUAVscurrentlyheldbytheArmyarebeingcontrolledattheoperationallevelandservetheneedsatanincreasedlevel.ThereisadirerequirementofUAVsatthetacticallevel,whichneedstobeprovidedtoforcemultiplyresultsatthegroundlevelforundertakingmissionswithaccurateintelligence.Apartfromtheseforeignprocurements,allthedefenseservicesalsohaveindigenouslydevelopedUAVs—NishantandLakshya—intheirinventory.Morearebeingdeveloped.Theholdingpatternisshowninthefigurebelow.
UAVsorDronesareontheriseintheIndianArmedforces.Identifiedasanessentialtoolformodernization.InrecentyearsUAVshavebecomeastapleforIndianbordersurveillance.AlthoughlittlehasbeendoneinthefieldofresearchonUAVssofar,governmentagenciessuchasDefenseResearchandDevelopmentOrganization(DRDO)andBharatElectronicsLimited(BEL)hadbeenworkingonprojectstodevelopUAVsindigenouslyforthethreedefenseservices.DRDOistheprimaryagencyinvolvedinthedevelopmentofUAVsfortheArmedForces.ConstrainedbythelimitationsofdefenseindustryexpertiseandchronicdelaysofDRDOprojects,Indiainitiallyresortedtoimportingoff-the-shelfmodels.LackofUAVsintheinventoryofdefenseforcesandtechnologicalcapabilitiesarethecauseofaconcertedframeworkforcurrentandfutureUAVdevelopmentprograms.
2000 2005 2010 Future
NRUAV
AURA
UAV’s in India
GAGAN UAV
HAROP
NETRA
Source: Compile by Mr. Amit Kumar Singh
IA27%
IAF68%
IN5%
1004
50
23
150
Searcher I, MK II
Source: Compiled by Q-Tech Synergy
Nishant
Heron I, II
120
90
13
Figure 1: Present Holding
8 4
Lakshya Harpy
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Besidesthegovernmentinitiatives,theprivatesectorhasalsoshownkeeninterestinthedesignanddevelopmentandproductionofUAVs.ThedrivetowardsformationofJVswithsomemajorglobalUAVmanufacturersalsosubstantiatesthisfact.SmallfirmssuchasSpeck,Alpha,DesignDynamaticTechnologiesandCoralDigitalTechnologiesPvt.Ltd.arebuildingthesedronesbypartneringwithIsraelifirmsandIndia’sNationalAeronauticsLaboratories,orNAL.However,somecompaniessuchasAnjaniTechnoplast,IdeaForge,MukeshKumarUdyog(MKU),TanejaAerospace&Aviation(TAAL)andJubilantAeronauticshavetakenstepstodevelopUAVsontheirownorwithtechnologycollaborationwithOEM’s.Someoftheprivatecompaniesthathaveevengotdefenselicenseinthisandrelatedsegmentcomprises:
MahindraDefenceLandSystems MelSystems&Services ECIL,BHEL
ZenTechnologies BFUtilitiesLimited TataPowerCo.Ltd
AlphaDesignTechnologiesPvt.Ltd MaxAerospace&Aviation TataAdvancedSystemsLtd
JisnuCommunicationsLtd Mahindra&MahindraLtd SpeckSystems
DataPatterns(India)PvtLtd HalbitAvionicsPvt.Ltd AuroraIntegratedSystems
NovaIntegratedSystemsLtd VarisisPvt.Ltd Larsen&Toubro
Global market size for UAV platformsTheglobalUAVmarketisforecastedtobeworthUS$6.6billionthisyearandisexpectedtogrowataCAGRof6.4%overthenexttenyears,reachingUS$11.4billionby2021.WhiletheglobalmarketwillbedominatedbyAmericanmanufacturers,Europe’smarketshareispredictedtoincrease;however,significantgrowthwillcomefromtheAsia-PacificregionespeciallyfromChinaandIndia,primarilyduetothestressedsecurityenvironmentthere.
Figure 2: World UAV market forecast (2012–2021)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Am
ount
in U
SD b
illio
n
US -Procurement and R&D
Source: Compiled by Q-Tech Synergy
Rest of the World - Procurement and R&D
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Market potential in IndiaItisanticipatedthatIndiahasboughtUAVplatformsworthapproximatelyUS$1.3billionsinceitsfirstpurchaseinthelate1990stilldate.BytheendoftheTwelfthDefencePlan(2017),thearmywantstoequipUAVsdowntothebattalionlevel,whiletheIAFplanstohavefullyoperationalsquadronsbothofUAVandUCAVby2017.KeepinginmindthecurrentsmallholdingofUAVsystemswiththeIndianArmedForcesandalsotherecentlyissuedtendersforacquisitionofvarioustypesofUAVplatformsbytheIndianMoD;
TheUAVsegmentthuspromisesanoverallopportunitymorethantheUS$2–3billionincapitalprocurementoverthenext5–10years(2012–2020).Thegovernment,acknowledgingtheforcemultiplierroleUAVsaretoplayinthecurrentandemergingnetwork-centricwarfarescenarioandthenaxalsituationinhand,hasstartedinvestingheavilyinUAVs/UCAVstomeettheArmedForcesoperationalrequirements.Italsowantstoinducta“largenumber”ofman-portable“mini”and“micro”UAVsforshort-rangesurveillanceandNBC(nuclear,biological,chemical)detectioninthebattlefield.Rather,IndiaiscurrentlyeyeingtoacquirealmostalltypesofUAVs—tacticalUAV(TUAV),highaltitudelongendurance(HALE)UAV,verticaltake-offandlanding(VTOL)UAVandmediumaltitudelongendurance(MALE)UAVswithintheforecastperiodof2012–2020.However,amongthese,thedemandforMALEUAVsandTUAVsisexpectedtoincreaseduringtheperiod.
Figure 3: Indian imports : 1999-2012 (in US$ million and %)
Source: Compiled by Q-Tech Synergy
8,634 ; 58%1,858 ; 12%
1,300 ; 9%
1,383 ; 9%
363 ; 2%
1,489 ; 10%
Aircraft
Armouredvehicles
UAVs
Missiles
Ships
Others
Figure 4: Anticipated share of UAVs in the Indian defence expenditure (in %)
Source: Compiled by Q-Tech Synergy
25%
30%
15%
15%
10%
4%
1%
Others
Air
Naval
Land
R&D
C4ISR
UAVs
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Program pipelineTheUAVmarketispoisedtogrowatasteadypaceinthecomingyearsofferinglucrativeopportunitiestoforeignandindigenouscompanies.Eyeingthemulti-milliondollaropportunitiesthattheemergingUAVmarketofIndiaislikelytoofferinthecomingyears,severalinternationalcompanieshavealreadystartedvyingfortheIndianUAVmarket.ItisalsotobenotedthatlackoftechnologydevelopmentcapabilitieshavedoggedIndia’sindigenousUAVprogramsandistheprimedriverforpushingIndianarmedforcestoprocurefromforeigncountries.Consequently,evenasblueprintsfortheindigenousdevelopmentofUCAVsarenowbeingfinalized,theIndianArmedForceshaveissuedvariousglobalRFIs/RFPs(asshowninthetablebelow)tomajorarmamentmanufacturersworldwideforprocurementofUAVsandcombatdrones.
RFIs/RFPs issued Quantity CostMiniandMacroUAVforArmy 500 US$85million
HighAltitudeLongEndurance(HALE)UAVforArmy --- US$175million
UAVMissionSimulatorforArmy 1 US$30million
UnmannedCombatAerialVehicleforIAF --- ---
MicroUnmannedAerialSystemsforIAFandIN 95 US$10million
SmallVTOLMINIUASforIAF --- ---
HighAltitudeLongEndurance(HALE)UAVforNavy --- US$150-$200million
Source- Compiled By Q-Tech Synergy
Indigenous developmentApartfromoutrightpurchase,indigenousdesignanddevelopmenteffortsarealsotakingplaceduetotheGovernmentofIndia’spushforanincreasedindigenouscapability,thoughthesehavemetlimitedsuccess.Onewaytoupgradethecountry’sowntechnologyisthroughjointdevelopmentprogramswithothers.Apartfromtheprogramslistedbelow,theDRDOalsohasanIndependentUnmannedSurveillanceAirVehicle(IUSAV)onthedrawingboard,whichissimilartotheX-45andX-47developedintheU.S.andisalsoscoutingforapartnersimultaneouslytodevelopahigh-altitude,longendurance(HALE)solar-poweredUAV.
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SomeoftheongoingindigenousUnmannedAerialVehicles(UAVs)programsareasunder:
Program Manufacturer Quantity CostIndian Air Force (IAF)
Rustom DRDO Total Quantity: 15 US$60 million for 3 aircraft and 1 ground station
AURA Stealth UCAV ADA, DARE --- US$75 million for 2 aircraft and 1 ground station
Nirbhay UAV DRDO 30 ---
Lakshya-II DRDO --- US$531,687.5 each
Indian Navy (IN)
Rustom DRDO TotalQuantity:15 US$60millionfor3aircraftand1groundstation
MALE(MediumAltitudeLongEndurance)UAV-Rustom
DRDO
10 US$225Million
PAWAN-MiniUAV DRDO 4 US$33.2Million
NIRBHAYUAV DRDO 50-80 ---
NavalRotaryUAV DRDO 3 US$232.6Million
Netra,MicroUAV DRDO,IDEAFORGETech
--- US$50000each
GAGANTacticalUAV DRDO,HAL&Israel --- US$55.5Million
Indian Army (IA)
Rustom DRDO TotalQuantity:15 US$60millionfor3aircraftand1groundstation
Rustom-2 DRDO,ADEandoneselectedproductionagencycumdevelop-mentpartner
10 US$342.25million
Nishant ADE Total12;
4inducted
US$4.47millioneach
SlybirdMini-UAV DRDO-ADE,CSIR-NAL,IITs,IISc&NDRF
--- US$350,000for3aircraftand1groundstation
Netra DRDO,IDEAFORGETech
24inductedbyBSFandCRPF
US$50000each
Source:CompiledbyQ-TechSynergy
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The road aheadIndia’scurrentholdingofUAVsisverylittleandthereisaneedforincreasedquantitiestomeetbattlefieldrequirementsforthefuture.Thereexistsaconsiderabledemandforunmannedaerialvehiclesnotjustindefensebutalsoinhomelandsecurityandcivilapplications.Further,inanIndiancontext,thereisanimmediateneedtoweaponizetheseunmannedaerialplatformstodestroyhostiletargetswithprecision.Indiaforeseesthatby2030,thepercentageofmannedfleetwillbereducedsignificantly.This,however,iscontingenttohowsmartandintelligenttheunmannedsystemscanbemade.
ThetendersissuedbytheMoDintherecentpastforVTOL,MediumAltitudeLongEnduranceUAV,TacticalUAVandUCAVconfirmthevalueoftheseaircraftasapriorityforthecountry.AmongtherequirementsfortheIndianforcesarea“bomberUAV”anda“fighterUAV.”Rather,keepinginviewthethreatperceptionsalongtheborders,Indiaismostlikelytopossessafleetofaround30“fighter/attack”UAVsinthenextcoupleofyears.
References
“Home,”TheUAVwebsite,http://www.theuav.com/index.html,accessed5September2012.
“UnmannedAerialVehiclesUAVsIndianperspective,” India Strategic website,”http://www.indiastrategic.in/topstories1369_Unmanned_Aerial_Vehicle.htm,accessed30August2012.
“JubilantGrouptoEnterintoUAVMarket,”Hexxcomwebsite,http://www.hexxcom.com/jubilant-group-to-enter-into-uav-market/,accessed3September2012.
“Top10FutureMilitaryProjectofIndia,”Indian Defence website,www.indiandefence.com/forums/indian-defence-industry/9137-top-10-future-military-project-india.html,accessed8September2012.
DanThisdell,“UAVmarketsettodouble,”Flight International,29March2011,viaFactiva,©2011ReedBusinessInformationLimited.
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Offset Policy 2012: a comprehensive reviewBackgroundInthepastissuesofEyeonDefense,wehavepublishedaseriesofarticlesontheoffsetsdischargemechanismintheIndianMoD,anditistimeforustoreviewtherecentlyannouncedpolicybytheMoD.Inourpreviousarticles,wehavehighlightedthevariousdrawbacksinthepolicyandalsoindicatedthemoodoftheindustry,bothdomesticandforeign.Fromthevariousconferencesandseminars,wegatheredasubstantialamountofinformationandhadafairideaoftheproposedchanges.Wearehappytointimateourreaders,thatquiteafewofourinferences-turned-predictionshaveseenthelightofthedayandhavebeenincludedintherecentlyannouncedDefenseOffsetGuidelines.
Major takeaways: a snapshotTheDefenseOffsetGuidelinesannouncedbytheIndianMoD,isaforward-lookingdocumentincorporatingtheworlds’bestpractices.ThegoodpartoftheinclusionisthatithasbeentailormadeforaperfectfittoIndianconditions.
Recognition of technology transferred to enable manufac-turing or for a complete acquisition of technologies
sought after by the Indian MoD. This is associated with attractive multiplier effects for realization
of offset credits.
The MoD has allowed foreign OEMs to make investment in kind in the private Indian companies, public sector companies as well as to government institutions. Each type of transfer has certain conditions attached to it and had come well packaged.
Tier 1 vendors are allowed to discharge offsets on behalf of the OEMs. There was a grey area here, and
the MoD has clarified the position with industry benefits in mind.
This policy has a definite focus on small industries, providing a multiplier of 150%
for choice of an Indian offset partner from the MSME segment.
The fuzzy nature of responsibility that existed with a distributed responsibility pattern, has now been
clearly defined. While the acquisition wing will be responsible for all RFP-related work on offsets, till
the signing of the offset contract, the newly formed Defense Offsets Management Wing (DOMW) will
take care of post-contract monitoring, banking and policy formulation.
While the penalties hitherto were open ended, with cumulative and recurring recoveries, a cap of 20% of the total obligation has been
imposed during the period of the main procurement contract. In addition, the period of discharge of offsets
obligations has been extended by two years.
Takeaways
TechnologyRisk mitigation
Eligibility of Tier 1 vendors
Focus on small industries
Offset banking
Investment in kind
Responsibility defined
Forward thinking here by the Government will allow the validity to be extended for a period of seven years and has also invited projects for all the good work already executed so far, to be submitted by March 2013.
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Technology
Technologytransfers,whichhavehithertobeendelinkedfromthescopeofoffsetsdischarge,havenowbeenincluded.TheGovernmenthasincludedtwotypesoftechnologytransfers,oneforthetransferofmanufacturingtechnologyandtheotherforhigh-endtechnologiesofamorestrategicnature.
Toenablemanufacturingtotakeplaceorforprovisionofservices,theGovernmenthasproposedanon-equityrouteofinvestmentinIndianenterprisesforco-production,co-developmentandproduction.AnOEMcantransfersuchtechnologytoanIOP,formanufactureorforprovisionofservicesofeligibleproducts.TheOEMwillbeincentivizedbyamultiplierof110%forthebuy-backoftheproductsasanoutcomeofsuchtechnologytransfer.Thus,whileallowingtechnologytransfers,amultipliereffecthasalsobeenprovided.Thisisaverywelcomestep,sincemostIndiancompanieshavenowreachedathresholdwhereintheyarelikelytorequireonlyanincrementalhelptodeliverworld-classproducts.ThereisanincentivefortheOEMtotransfersuchtechnologyandfortheIndianindustrytobenefitfromsuchatransferandalsomovetoglobalmarkets.
Theothertypeoftechnologytransferintroducedinthenewguidelines,isintheformofanacquisition.Thisisaveryinnovativemethodofoffsetdischarge;assuchamodeldoesnotexistinanyothercountryglobally.Theconceptisoneoftechnologyacquisitionwiththeresponsibilityandaccountabilityfortechnologyabsorptionandfurtherexploitation,dulyplacedontheDRDO,thecustodianofDefensetechnologies.Thismakesitfurtherinteresting,sinceontheonehandtheOEMshavebeenconstantlycomplainingthattheIndianindustrydoesnothavethecapabilitytoabsorbtechnologyoroffsetsandontheotherhandtheIndianindustryhasbeencomplainingthatoffsetsinrealtermsarenotvisible.TheTechnologyAcquisitionwilladequatelybridgethisgapandthemodusoperandifortechnologyacquisition,isprettysimpleandstraightforward.Forthefirsttime,theMoDhasalsocomeoutwiththetypeoftechnologiestheyareonthelookoutfor,althoughthismaynotbethecompleteandexhaustivelistthatanOEMislikelytoencounter.ItisbelievedthattheMoD/DRDOwillbemoreaggressiveinseekingtechnologiesthatarecontemporaryandatthecuttingedgelevelsforamoremeaningfulutilizationofthese.DRDOwillnominateacenterofexcellenceforabsorbingthetechnologysoofferedandwillalsoundertakeanexhaustiveevaluationofthetechnologiesintermsofitsrelevanceandusageaswellascreateamodelforafinancialevaluation.Thusthebestbrainswillbebehindtechnologyacquisitionandthedomesticindustryislikelytobenefitinmanywaysthanone.Thisalsoattractsthemaximummultipliereffectintermsofupto300%forfullandunfetteredrightsoverthetechnologysooffered.
ForthelastfiveyearstheOEMshavebeenconstantlycomplainingthattheMoDisnotfocusedoninductingstateofthearttechnologieswithsuitablemultipliers,andnowthatitisinplace,itistobeseeniftheOEMsnowwillbewillingtocomeforwardandoffersuchtechnologiesintheoffsetmodelpresented.Thisisanattractivepropositionandisgoingtobeaverylucrativeone.
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Investment in kind
TheconsolidatedpolicyonFDI,releasedbytheGovernmentofIndia,alreadyallowsinvestmentinkindtoberecognizedasvaluedFDIandthusformsacomponentoftheFDI.TheerstwhileDPP2006tillDPP2011,didmentionofaDFIandnotFDI,sinceevenaccordingtotheFDIpolicy,theDFIisseentobeamoreencompassingterm.WhenthetermDFIwasintroducedinDPP2006,itwasintendedtodrawinvestmentsinkind,sinceitwasstillbelievedthatIndiawasaFEsurpluscountryandtheneedofthehourwastobuildcapability,withadefinitefocusontheDefenseindustrialbase.
Therecentlyreleasedguidelinesdomakeacleardifferentiationinequity(cash)andinvestmentinkind,althoughtheybotharecomponentsofDFI.Bydoingso,theMoDhasprovidedthemuchneededclarityfortheindustry,withoutreferencetoextantregulationsintheconsolidatedFDIpolicy.Investmentinkindisconditionaltoderiveanybenefitintermsofoffsetcredits.Iftheinvestmentinkindisintermsoftechnology,thenwehavediscussedthisintheaboveparagraphsanditcomeswithamultiplierof110%.Iftheinvestmentinkindisintermsofequipment,throughthenon-equityrouteformanufacturerorprovisionofservicesofeligibleproducts,thenabuy-backof40%oftheproductismandated,inorderthatfullrealizationoftheoffsetcreditsaccrues.Therehavebeensomeinstanceswhereinthebeneficiarieshavebeengovernment-ownedworkshops,whicharenon-commercialorganizations.Insuchcasesthebuy-backisnotmandated.Thesehavebeensomeofthethoughtfulchecksandbalancesintegratedintothisdocument.
MSME segment: good initiative
TheMoDhasdonewelltobringtheMSMEsegmentintothelimelightofthegrandprocurementsoftheDefenseservices.ShouldtheforeignOEMchooseamicro,smallormediumenterpriseasanIOP,theyarelikelytogetamultiplierof150%ofthebusinesstransacted,subjecttovalueadditioninIndia.Thisisagreatinitiativeandthiswouldtrulygoalongwaytoenlargethedefenseindustrialbase.IfIndialivesinvillages,theIndianindustrylivesinMSMEs.
TheOEMsarelikelytotakethisveryseriouslytomaximizeontheiroffsetcreditsrealization.TheMinistryofMSMElaysdownthenormsoftheMSMEs,andtheNationalSmallIndustriesCorporation(NSIC),isaminiratnaPSU,undertheMinistryofMSME,forthedevelopmentofthesmallindustrysegment.IndianDefenseindustryhasbeendependentontheMSMEsegmentfornichecapabilities,andtheDefensePSUs,ordnancefactoriesandothersdosourceaconsiderableamountoftheirrequirementsfromtheMSMEs.ThisisboundtobebeneficialtoboththeMSMEsinIndiaandtheforeignOEMs.
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Other refinements
TheMoDhastakentherightstepstoreducetheriskarisingoutofoffsetsintermsofcostpenaltyonthemainacquisitionandhavehence,cappedthetotalpenaltiestoamaximumof20%ofthetotaloffsetobligationduringtheperiodofthemainprocurementcontract,whilealsoprovidinganextendedwindowfordischarge.Bankingofoffsetcreditshasbeenfurtherliberalizedwithaseven-yearperiodofvalidity(althoughitcouldhaveverywellbeenmore),withDOMW,nominatedasthesinglewindowagencyforapprovalsandmonitoring.OEMs,whohavemadeinvestmentsinIndiatillnow,areadvisedtocreateoffsetbankingproposalsandplacethembeforetheDOMWforapprovalbeforeMarch2013.Tier1vendorshavebeenallowedtodischargeoffsetsonbehalfoftheirOEMs,whichisastandardpracticeworldover.Finally,thereismoreclarityontheagencytobeapproachedforanyqueryregardingoffsets—ifitisrelatedtotheRFPinquestion,thenitistheAcquisitionwingandifitistodowithanythingelse,thenitistheDOMW,whichisstillunderformation.
Is this enough?Anypolicyisasgoodasthesystemofimplementation;therefore,thestrengthliesinimplementation.ItwillbeinterestingtoseethepaththeMoDadoptstomakeoffsetsimplementationeffective.ItwillalsobeinterestingtoseehowtheDOMWtakesofffromwhereDOFAleft.
AlthoughtheMoDhastakenintoconsiderationvariousconcernsoftheindustry—thespiritisinthebackgroundandtheletterwillplayanimportantrole.Whiletheemphasisisonmandatorycompliance,thereisstillagapintermsofeffectivequalitychecks.
Valueadditionisstillaconcern,sincethestanceofMoDtocountallforeigncomponentsawayfromthecalculationofoffsetscredits,willbedifficulttoimplement.ItiscommonknowledgethatIndiaasacountrydoesnotproducequalityrawmaterial.Evenifthemanufacturingcapabilityexists,rawmaterialhasstilltobeimported,whatthenisvalueaddition?MoDneedstomakesuitablecorrectionsinthisregard.AnothergoodcomparisonexistswithintheDPPitself,whereintheindigenouscomponentina“BuyIndian”categoryisstipulatedat30%;therefore,acaseexistsfor30%or50%valueadditiontobecountedforfulloffsetcredits.
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PolicystatementtoprovidemultipliersforchoosingMSMEsasIndianOffsetPartnerislikelytobeastepintherightdirectionbuttorealizethefullpotentialofthissegmentitneedstobeenabledtoparticipateinMoDcontracts,withtechnology,fundingsupportandmanagementsupport.VenturecapitalfundsmustbeencouragedtoprovidefundingsupporttotheIndianindustry,withafocusontheMSMEsegmentandamechanismshouldbeevolvedforprovisionofoffsetscreditsaswell.
BankingofoffsetscreditsneedstobemoreliberalandeasyforOEMstoexecute,toenableOEMstomakeincreasednumberoflong-termcommitmentstotheIndianindustry.
ConclusionTheexpansionofscopeofdischargeofoffsetstoincludethesynergisticsectorsofcivilaviationandinlandsecurityisapositivestepandtheOEMsmustlookattheseoptionsfordischargemoreseriously.OEMsmustcomeforwardtocreatemoreprojectsinbankingandtheadvantageofthetimedifferentialprovided.TheIndianindustrymustcreatecapabilitiesinbothmanufacturingandservicessector,throughsuitableinvestmentsandacquiringmandatorycertifications.MoreInvestmentinResearchandDevelopmentmustbemadebytheprivateindustry.Publicprivatepartnershipsareimportantforamoremeaningfulparticipationinsignificantcontractsaswellasforcapabilitybuilding.Infuture,theMoDwillcontinuetoengagewiththeindustryforamoreforward-lookingpolicy.
Eye on defense | 13
Night vision devices: a market assessment
IntroductionAnightvisiondevice(NVD)isanopticalinstrumentthatallowsimagestobeproducedinlevelsoflightapproachingtotaldarkness.Byusingthesedevicesonecaneffectively“see”anobjectatadistanceofupto7,000metersunderpitchdarkconditions.
Itusesambientlight(lightfrommoonandstars)includinglowerportionoftheinfraredlightspectrum,whichispresentbutcanbeimperceptibletooureyes,andamplifyingittothepointthatwecaneasilyobservetheimage.
Working and constructionFigure 5: Working of a night vision device
Source:www.howstuffworks.com
AnNVDworksontheprincipleoffocusingambientlight(photons)intoatube,convertingthemintoelectrons,acceleratingthemandthenprojectingthemontoaphosphorscreentoconvertthemtophotonsandproduceanimage.Thefollowingtabledetailsouttheprocessandfunctionsofeachcomponent:
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Abovetableisbasedonamilitary–grade,hand-heldmonoculardeviceandonErnst&Youngresearch.1UShasrestrictivetechnologyregimeswhichdonotallowexportofcriticaltechnologieslikeImageIntensifiers
NVDsarebeingmanufacturedformorethan40yearsnow.Subsequentadvancementsintechnologyhaveresultedindramaticimprovementsinresolutionandsensitivity.Theseadvancementsintechnologywerereflectedinchangingterminologyandcategorizationby“generation.”EachsignificantadvancementinNVDtechnologyisdenotedbyanewgeneration.AfterbeginingwithGeneration0orGen0,todaycountriesareusingproductsofclassificationGen3andworkingonimprovingittoGen4.“Genx”istheterminologyusedforNightVisionEquipmentmanufacturedintheUS;forthesamekindofequipment,correspondingterminologyusedinEuropeis“XDx”(ProductcharacteristicsandperformanceofaGen3productaresimilartoanXD4Product).
Applications and usesNightVisiondevicesaremostoftenusedbythemilitaryandlawenforcementagenciesasforcemultipliersagainstenemytargetsatnight.Itisalsousedextensivelybythemilitaryfornavigation,surveillanceandtargeting.CommercialgradeNVDsarealsoavailabletociviliansforvariousapplications.Theyareavailableasmonocular,binocularorgoggles.
Component Construction Function Remarks
Manufacturing capability available internationally
Manufacturing capability available in India
SwitchandInfraRedLED
ItisamilitarygradeRotaryMicroSwitch.
AnexternalswitchisusedtoswitchontheNVDandspraytheobjecttobeviewedwithinfraredlighttomakeiteasiertodetect.
Theseswitchesareavailableofftheshelfwithmultiplevendors.
Manufacturingandintegratingcapabilityavailablelocally
Frontlenses/objectivelens
AconventionallenscoatedwithGermaniumisfittedintothehousing,whichismadeoutofaerospacealloy.
Usedtocaptureambientaswellassomeinfraredlight
Generally,majorvendorssuchasFujiandCarlZeissarepreferred;machiningofhousingislikelytobedonebyafive-axismachine
Manufacturingandintegratingcapabilityforlensesavailablelocally;machiningcapabilitylikelytobedevelopedonabuildtoprintbasis
Imageintensifier(constitutesalmost50%ofthecostofmanufacturinganNVD)
Itcontainsaphotocathodefollowedbyamicrochannelplate(tinyglassdiscthathasmillionsofmicroscopicholesinit,whichismadeusingfiber-optictechnology)coveredonbothsidesbycathodesandintheendisaphosphorscreen.Allofthisiscontainedwithinahousingconnectedtobatteries.
Incominglightparticles(Photons)areconvertedtoelectronsbythephotocathodeandacceleratedbythehighvoltagegeneratedbybatteries.OnpassingthroughtheMicrochannelPlatetheyaremultipliedmanytimesoverbeforefinallycollidingwiththePhosphorscreentoproduceincreasedintensityofimage.
Worldwide,thereisonlyalimitednumberofmanufacturersofimageintensifiertubesareavailable.OutsideoftheUS1PhotonisofFranceistheonlyavailablevendor.
Thereishardlyanylocalcapabilitytomanufactureimageintensifiertubes.
Battery TheyuseconventionalAAlithiumbatteries.
Thebatteriesareusedtogeneratehighvoltagetoaccelerateelectrons.
Itisavailableofftheshelfwithmultiplevendors.
Manufacturingandintegratingcapabilityofthesebatteriesareavailablelocally.
Eyelenses/ocularlens Itissameasfrontlenses/objectivelens.
Theseareusedtomagnifyandfocustheimage.
Itissameasfrontlenses/objectivelens.
Itissameasfrontlenses/objectivelens.
Table: Night Vision Device parts and their functions
Eye on defense | 15
Theycanbehandheld,helmetmounted,headmounted,gunmounted,handheldweaponmounted,oranyotherformastheplatformdesires.Theyarealsolikelytocomewithapicatinnyrail,IRlaserilluminator,IRLEDilluminatorandmagnificationlenses.FollowingarethevarioususesthatanNVDcanbeputto:
1. Night vision products for police, military, border patrol and security
• Nightaimingdevicesforhand-heldweapons
• Nightaimingdeviceforartilleryguns
• Nightaimingdevicesforarmoredvehicles(tanks,infantryfightingvehiclesetc.)
• Nightaimingdevicesforsnipers
• Nightvisiondevicesfordrones(UAV)
• Nightvisionsingle/duallensgogglewithheadmountfordrivers
• Gogglesforpilots
• Nightvisionbinocularsforlongrangeobservation
• Nightvisionfornightphotography(professionalgrade)
2. Night vision for commercial market
• Nightvisionforhunters
• Nightvisionforcommercialmarine
• Nightvisionfornightphotography(Commercialgrade)
• Nightvisionforastronomy
• NightvisionforTVjournalists(TV-NewsTeams)
• Nightvisionforprivateinvestigators
Eye on defense | 16
Indian market for night vision equipmentIndiahasenteredoneofthemostsustainedandintensivecyclesofdefenseequipmentprocurementandupgrade.AccordingtotheReportofWorkingGrouponDefenseEquipmentinIndia,enhancingitsnightfightingcapabilityhasemergedasoneofthemostcriticalareasoffocuswithitspotencyandderivativedemandarisingoutofapplicationacrossplatforms.
Untilashortwhileago,IndianforceshadbeenusingNightVisionproductsofsecondgeneration,whichareoperationallymuchinferiortothelatestthirdgenerationequipmentavailableintheglobalmarket.Inearly2010,theArmyreportedthatitwasshortbyaround30,000third-generationNVDs.Aspartofitsmodernizationandupgradingweaponry,theIndianArmyhasplannedtoequipallitsbattalionswithnightvisionequipment.Inadditiontothis,standaloneprojectsforequippingplatformsrangingfromarmoredvehiclestohelicopterswithnightfightingcapabilityhavemadethisopportunityoneofthemostexcitingopportunitiesavailableintheIndianDefenseprocurementplan.AconsiderablepartofdemandinNVDshasalsobeenoriginatingoutofthemodernizationofforcesthatMHAisundertakingfortheCentralandthestatepoliceforces.
Sofar,Indiaisonlyabletosatisfyitsdemandthroughimports.TherehavebeenattemptstoimportdevicesinpartstoIndiainordertoassemblethemonlocation.ApartfromthisnoIndiancompanyhasbeenabletoindigenouslymanufactureaThirdGenNightVisionDevice.Technicaltie-upsandoutrightimporthaveservedtofulfilltherisingdemand.
BharatElectronicsLimited(BEL)haswonaround80%ofcontractsfromtheMinistryofHomeAffairsfornightvisiondevicesoverthelastthreeyears.ItwaschosenasasinglevendortosupplytheParamilitaryForceswith32,766telescopicnightvisiondevices.BELstartedsupplyingtheNVDsinSeptember2010.KitsweresuppliedfromSDSinIsraelandBELperformedassemblyinIndia.In2011BELreceivedanotherordertomanufacture30,634NVDsforrifles,rocketlaunchers,lightmachinegunsandbinocularsfromtheIndianArmy.Therewereincidentsofirregularitiesinsuppliesduetowhichdeliverieshadtobestopped.Thestatusoftheseprojectsisuncertain.
Thusthenightvisionmarkethasopenedforotherprivateplayersindicatingbettercompetitiveenvironmentinthenearfuture.ItprovidesauniqueopportunityfortheIndianindustrytobecomekeypartnersinsystemintegrationforglobalOEMsandaddresstheestimatedUS$1billionnightvisionequipmentopportunityarisingoutoftheIndianmarketinthenextsevenyearhorizon.
Market potential Globally,demandfornightvisiondeviceshasgoneupdramaticallyinthelastcoupleofyearsasalargenumberofcountriesareembarkinguponsoldiermodernizationprograms(mostnoteworthyofthembeingLandWarriorofUSA,FISTofUK,FelinofFrance,COBRAofBrazilandldZofGermany).TheseareexpectedtostandardizeNVDaspartofstandardkitforsoldierstherebycreatingalargedemandinthenexttwotoeightyearstime.
MarketpotentialofnightvisiondevicesislikelytobebetterunderstoodbytryingtoanalyzeitagainstthebackdropofrecentlyawardedcontractandthenprojectingthefuturedemandarisingoutofboththeMinistryofDefenseandMinistryofHomeAffairs.
Eye on defense | 17
Recent contractsFollowingnoteworthycontractshavebeenawardedsinceJanuary2010:
Future opportunityIncludingthetwoyetunfulfilledordersplaceduponBELbytheParamilitaryForces(32,766NVDs)andtheArmedForces(30,634NVDs),followingprogramsconstituteamajorityoffutureopportunityarisingoutofthemarketforNVDsinIndia.Whereastheprogramandnatureofprocurementopportunityislikelytobeidentified,thequantumofprocurementremainsamatterofanalysis.Thusthenumbersareonlyindicative.
Buyer Seller Product No. of Units Size of Order
Central Police Forces (Ministry of Home Affairs)
BorderSecurityForce BEL PassiveNightVisionTelescopicSightsfor5.56mmINSASRifle INR81,63,71,919/-
BorderSecurityForce BEL PassiveNightVisionTelescopicSightsfor5.56mmINSASRifle INR234,04,42,196/-
ITBP BEL NightVisionBinocular 25 INR61,49,385/-
NSG BEL PNVGoggles 100 INR1,30,87,300/-
NSG BEL PNVGoggles 103 INR1,34,79,919
NSG BEL PNVBinocular INR27,19,541/-
NSG BEL PNVGogglesfordrivers 20 INR67,19,360
NSG M/sAligatorDesignsPvt.Ltd
NightSightforSIG(SWAT)AssaultRifles 128 INR2,86,96,648/-
SehestraSevaBal - PNVMonocular 75 INR1,47,00,000/-
SehestraSevaBal - PNVBinocular 98 INR2,63,00,000
CRPF - PassiveNightVisionBinocular 3240 Approx.INR100,00,00,000
CRPF - PassiveNightVisionMonocular 3804 Approx.INR100,00,00,000
Armed Forces (Ministry of Defense)
ArmyCommanderSpecialFinancialPowerCellNorthernCommand
- PassiveNightSightforINSAS 100 INR3,20,00,000
ArmyCommanderSpecialFinancialPowerCellNorthern - PassiveNightVisionBinocular 150 INR4,50,00,000
MoD StarDefenseSystemsofIsrael NightVisionEquipment
PlacedordersforNIS153million;previousordersincludeaNIS40millionorderinFebruary,aNIS13millionorderinSeptember2010,andaNIS130millionorderinAugust2010
Eye on defense | 18
Ministry of Defense
1. Helicopter Pilot Sights: TheArmyAviatonbranchisprocuringadvancednight-visiongoggles(NVGs)foritspilotsflyinghelicopterssuchasCheetahs,ChetaksandDhruvadvancedlighthelicopterstoenablethemtooperateeffectivelyaftersunset.AnRFIforaircrewadvancednightvisiongogglesforIndianarmyaviationwasreleasedduringthefirsthalfof2010.Procurementandinductionwillbecarriedoutinphases.Theprogramisexpectedtobeextendedtoincludeinductionsofnewhelicoptersinthearmedforces,whichisslatedtobetothetuneof1,100helicoptersinthenexttenyears.
2. F-INSAS:TheFutureInfantrySoldierasaSystemhasbeentakenuptoequiptheIndianinfantrywithadvancedweaponry,communicationnetworkandinstantaccesstoinformationonthebattlefield.TheF-INSASroadmap,laidoutbyIndiandefenseofficialsattheproject'soutset,statesthatthenewsystemwillbesuppliedtoeighttoteninfantrybattalions(upto10,000soldiers)by2015,withall325battalions(eachwith800–1,000soldiers)fullyupgradedby2020.
• Aspartoftheprogram,RFPsfor44,000CloseQuarterCarbinesand66,000AssaultRifles,alongwithholographicweaponsightsandmounted“3rdGen”NightVisiondevice,havealreadybeenissuedandareinvariousstagesoffinalization.ThiswillbefollowedbyindigenousmanufactureofalargenumberofsimilarmodularcarbinesbytheOrdnanceFactoryBoard(OFB)undertransferoftechnology.
• Nightvisiondevices,aspartofthisprogram,willalsobehelmetmountedandthetotalquantumofordercouldbeintherangeof300,000units.
3. Land systems:Armoredvehiclesandtanksrequirenightvisionequipmentfordriver,gunnersandcommandersight.Proposalstoequipthearmy’slandsystemsareinvariousstagesofimplementation/procurement.
• BMPupgradeprogram—Around2,200Soviet-designed“Sarath”BMP-IIinfantrycombatvehicles(ICVs)lacknight-fightingcapability.Aconsiderableportionofthesewillbeupgradedinphases.
• Tankdriversights—Thesewillbesuppliedtoaround2,000–2,200RussianandlocallybuiltT-72andT-72M1s“Ajeya”mainbattletanks(MBTs),whichformthebackboneofits59-oddarmorregiments,
• FutureInfantryCombatVehicle“make”programwilltakeoffsoon,underwhich,vehicleswillbemanufacturedbyIndiancompaniesinIndia.Thiswillinvolvemountingofaround2,600vehicleswithnightsights.
• Overallacompositeopportunityofaround6,000sightsislikelytobeonthehorizonfromthissectionofplatforms.
4. Field Artillery Rationalization Plan
• AspartoftheFARP,IndianMoDplanstoinductaround3,800artillerygunsinthenext10-yearhorizon.Outofthese,around1,700gunswillbemanufacturedindigenously.Artillerygunswillrequirenightvisionsightstobeintegratedontotheplatform.
• Apartfromthese,thereisanupgradeprograminthepipelineforlightfieldgun(105mm)andRussianM146gun(130mm).Thequantumarisingoutofthiswillbetothetuneof1,200guns.
5. Other platforms
• Nightvisiondevicesareplannedtobemountedonrocketlaunchers,airdefensesystems(suchasVSHORAD)andanti-tankmanpads.
Eye on defense | 19
Ministry of Home Affairs
1. Strengthening of Central Police Forces:MinistryofHomeAffairshassanctioned2,671passiveNVDs(monocular),8,052passiveNVDs(binocular),8,109passiveweaponsightsand203night-visiongogglestobeprocuredforforcessuchasCentralReservePoliceForce(CRPF),BorderSecurityForce(BSF),SashastraSeemaBal(SSB),Indo-TibetanBorderPolice(ITBP)andtheelite“blackcat”commandoNationalSecurityGuard(NSG).
2. Modernization of Police Forces:ConceivedbytheBureauofPoliceResearchandDevelopment,policemodernizationplanistheflagshipprogramofMHAtomodernizeandincreaseeffectivenessofstatepoliceforces.Enhancementofnightsurveillancecapabilityisalsoafocusarea.CurrentlytendershavebeenopenedforGadchiroliPolice,MaharashtraPoliceforbothnghtvisionbinocularandmonocular,BiharPoliceforbinoculars(50Units),TamilNaduPolicefornightvisionbinoculars(90Units),andKeralaPoliceforbinoculars.RecentlyconcludedcontractshavebeenwithAndhraPolice(25Units),UttrakhandPoliceandKeralaPolice(20Units),AssamPolice(14Units),JharkhandPolice(100Units),KarnatakaPolice(12Units)andPuducherryPolice(5Units).
Other agencies
1. Criticalinfrastructureprotection:Nightvisionequipmentalsofindsapplicationinsurveillanceandprotectionofcriticalinfrastructure.AnindicativelistofinstitutionswhichhaveprocuredNightVisionDeviceslatelyconsistsofRajivGandhiThermalPowerPlant,Hisar,Haryana,ChidambaranarPortTrust,Tuticorin,TamilNadu,NorthernRailway(100Units),EasternRailways(209unitsbinoculardevices),SouthEastCentralRailway,ECIL,ChiefConservatorOfForest,Haldwani,Uttarakhand,DepartmentOfForest,Tadong,Sikkim,HimachalPradeshForestDepartment,Shimla.AlsoAirportAuthorityofIndiahasapprovedproposalsforequipping50airportswithnightvisiondevices,whichhavealreadybeendoneitonfourairports.
Company Details of operation
BELOP-BELofIndiawithDelftInstrumentsofHolland
• BE-DELFTElectronics,ajointventurebetweenBengaluru-basedBharatElectronics(BE)andDelftInstruments,HollandwasrenamedasBELOptronicDevicesin2002.
• Thecompanyprovidesresearch,developmentandmanufactureofImageIntensifierTubesandassociatedhighvoltagepowersupplyunitsforuseinmilitary,securityandcommercialsystems.
• In2011BELOPannouncedthatithasanorderfromtheIndianArmyfor30,000-pluspieces.Thethree-yearcontractislearnttobeworthINR9billion.
RoltaofIndiawithThalesofFrance
• RoltaplanstomanufacturenightvisiongogglesthroughitsJVwithThales.• ThecompanyhasplannedtosetupafacilityinMumbai,andobtainedindustriallicenseforthesame.• CoretechnologyisexpectedtobeprovidedbyThalesandRoltaislikelytoassembleinIndia.• RoltahasdisplayedfamousproductsfromthestablesofThalessuchasLUCIE,MONIEatvariousforumsandexhibitions.
TataAdvancedSystemsLtd.ofIndiawithITTExelisoftheUS
• UnderanMoU,thecompanieswillpartnertosupplymanufacturingcapabilitiesinIndia,formaintenanceandlife-cyclesupportforGen3nightvisionproducts.
• ITTplanstoprovideTASLwiththelatestGen3nightvisionimageintensifiertubesandkits.Thereafter,manufactureofhighprecisioncomponentsandsub-assembliesofthedeviceswillbeundertakenbyTASL.
• SinceintensifiertubesofGen3isarestrictedtechnologyintheUS,theoutlookofconversionofthissupportagreementintoamanufacturingsubcontractagreementremainscircumspect.
MKUofIndiawithanundisclosedForeignpartner
• ThecompanyplanstoprovidelatestandindigenouslydevelopedadvancedrangeofNVDswithatotalinvestmentofINR1billion.• TherangeofNVDswillincludethreenightvisiondevices,i.e.,monocular,binoculars(singletube),andbinoculars(twintube,for
3Dvisionatnight).Inaddition,theywillalsomanufacturenightsights,whichcanbeattachedtocarbines,assaultrifles,sniperrifles,andmachineguns.
Companies in India
Eye on defense | 20
AmongtheothercompaniesthathaveshowninterestintheIndianmarketareSDSofIsrael(whichhasalreadywoncontractsinIndia)andMeoptaSystems,CzechRepublicandOIPSensorSystems,BelgiumwhohavebidonIndiacontractsforNVDs.OtherinternationalcompaniesthatarelookingtotargettheIndianmarketarestrategicconglomeratessuchasZeissinGermany,ITTintheUS,ThalesAngenieuxinFranceandSimradinNorway.
Challenges• Technologytransferrestrictions:Internationally,sensitivetechnologiessuchasnight
visionarecharacterizedbyrestrictivetechnologyregimes.Majorityofthedefensecontractors,whopossessthesetechnologies,areeithergovernmentownedorfunded.Hence,theyhavesovereignsensitivitiesandconcernsinestablishingoperationsoutsidetheircountries.
• Exportrestrictions:Theitemcode90049010undertheDefinition-PassiveNightVisiongogglesisrestrictedundertheITC(HS)ClassificationasITC(HS).Astheitemislistedasrestrictedforexportpurposes,anexportlicensehastobeappliedfromDGFT(DirectorGeneralofForeignTrade)bytheexportingentity.
• Manufacturingrestrictions:Accordingtoexhibitno.7(contd.),pressnoteno.9(1991series)oftheNationalIndustrialPolicy1991,nightvisiondevicescomeunderthecategoryofcompulsorylicensinginaccordancewiththeDIPP.
• Singlevendorrisk:Indiahasnotbeenabletodeveloptechnicalcapabilitytomanufactureimageintensifiertubesindigenously.ThesearemanufacturedbyPhotonisofFrance(apartfromUScompanies).Thisisapotentialsinglevendorsituation,whichwillaffectscalabilityandcontinuityofthebusinessintheabsenceofindigenousmanufacturingtechnology.
OptoElectronicFactoryDehradunofIndia
• Nightvisionequipmentisassembledatthisfacility.• ThermalImagingNightSightforT-72(CTIT-72)hasbeendevelopedbyOLFinassociationwithIRDE,Dehradun.• ThecompanyhassuppliednightvisiondevicestotheCRPFin2000,toAssamRiflesin2002andtotheITBPin2007.
GeneralOpticsAsia • Thecompanyhasappliedforaindustriallicenseforguidanceandnavigationequipment,imagingequipmentandnightvisiondevices,sensors,surveillanceequipmentandpartsthereof.
• ItplanstoinvestaroundINR250millionfortheabove.
AlphaDesignTechnologyofIndiawithITLOptronicsLtd.ofIsrael
• Alpha-ITLElectro-OpticshasbeenaccordedDGS&D(QA)Certificationforbulkmanufactureofmorethan15,000NVDsperyear.
• ItdoessounderaLicenseAgreementfromM/sITLOptronicsLtd.,Israel.
BELofIndiawithPhotonisofFrance
• BELisexpectedtosetuptheirfirstImageintensifierTubeXD4(equivalentto“Gen3“oftheUS)productionfacilityoutsideEuropeinIndia(atBEL’sfacilityinPune).
BECILwithaRussianFirm
• In2010AssamRiflesprocured2,000nightvisiondevicesfromBECIL• BECILdevelopedtheNVDincollaborationwithaRussianfirm.
DefsysofIndia • Defsysappliedforanindustriallicenseforsimulators,riflesights,nightvisionsights(5000unitsataninvestmentofINR120million).
• ThecompanyislookingatapossiblecollaborationwithNewNogalightunderSDSGroupofIsrael.
ITIofIndia • India’soldestPSU,ITI,issearchingforapartnertoprovideToTtomanufacturenightvisionequipment.TheyreleasedanRFPtothiseffectinJuly2011.
• TheyintendtoparticipateinthecontractsfloatedbyCRPFfor3241binocularsand3804monoculars.
Eye on defense | 21
ConclusionThereisasignificantopportunityforNVDsintheIndianmarket.ItisexpectedtocrossUS$1billioninthenextfiveyears.Thedemandfornightvisionequipmentisdirect(hand-heldsystems)aswellasderivative(mountingonplatforms).Thedramaticincreaseininterestinthismarketisbeinggeneratedasallthearmedforces(theArmy,theAirForce,andtheNavy),CentralPoliceForces,ParamilitaryForcesandstatepoliceforceshaveannouncedbigticketprojects,whichemphasizesonenhancementofnightfightingcapability.Notonlythis,criticalinfrastructureprotectionanditscommercialapplicationsalsomakeitaninterestingopportunity.
IndiahasnotbeenabletodevelopmanufacturingcapabilityforthirdgenerationNVDs,mostlyduetotechnicaldifficultiesinnotbeingabletomanufactureandassembleimageintensifiertubes.FurthercriticaltechnologyexportrestrictionsofvariousnationshavepreventedIndiatoachievecompleteindigenizationinnightvisiontechnologyandconsequentlyIndiahasreliedmostlyonimportfromothernations.
Despitethis,allmajormanufacturersofNVDsintheworldarenoweyeingtheattractiveopportunitythatIndianprocurementscenariopresents.ThisisevidentfromthelatestjointventuresformedbyITTExelisoftheUSwithTataAdvancedSystemstomanufacturethirdgenerationNVDsinIndiaandBELandPhotonisofFrancetyinguptomanufactureXD4imageintensifiertubesatPune.Moresucharrangementsareexpectedtobefinalized,resultinginvariousjointventures(JVs),coproductionarrangements,andmarketingarrangementwithIndiancompaniesbecomingprimeson“GlobalBuy”programsandtransferoftechnologywithproductioninIndia.
References
AjaiShukla,“Deepdeficienciesaboundindefenceprocurement,”Business Standard,31March2012,viaFactiva,©2012BusinessStandardLtd.
“TrackYourILApplication,”Department of Industrial Policy and Promotion website,http://dipp.nic.in/English/policy/Appli_Status.aspx,accessed15September2012.
“OpenTenders,”Indian Tenders website,http://tenders.gov.in/,accessed30September2012.
“InsidestoryofIndia’sbiggestnightvisiondevicescam,”Syed Nazakat world press.comwebsite,http://syednazakat.wordpress.com/2011/06/04/inside-story-of-indias-biggest-night-vision-device-scam/,accessed15September2012.
“Fighttonight!nightvisionprogrammesinAsia,”Defense Review Asia website,http://www.defencereviewasia.com/articles/172/FIGHT-TONIGHT-NIGHT-VISION-PROGRAMMES-IN-ASIA,accessed20September2012.
“Portfolio:Nightvisiondevices,”Rolta Thales website,http://www.rolta.com/rolta-thales/portfolio/night-vision.html,accessed20September2012.
MinistryofDefense2010-112annualreport.
RajatPandit,“IndianArmy’smodernizationdrivegatherssteam,”The Times of India,24December2011,viaFactiva,©2011TheTimesofIndiaGroup.
“ITTExelisandTataAdvancedSystemsLimitedPartnertoManufactureGeneration3NightVisionDevicesinIndia,”BusinessWire,29March2012,viaFactiva.
MinistryofHomeAffairs2010-11annualreport.
Eye on defense | 22
Date of Issue RFI Details Response Date Issued By Service
26Jun2012 TerrestrialTrunkedRadio(TETRA)HandheldRadio
31July2012 DirectorateGeneralOfWeaponsAndEquipment(WE-9) IndianArmy
2July2012 DrivingSimulatorwithMotionPlatform
30July2012 DirectorateGeneralofSuppliesandTransport(ST-11) IndianArmy
10July2012 AntiMaterialRifle 5Aug2012 DirectorateGeneralofInfantry/Infantry–5 IndianArmy
12July2012 TrackedExcavator8Ton 16Aug2012 CombatEngineersDirectorate,CombEngrs-6
IndianArmy
13July2012 BreachingMunition 5Aug2012 DirectorateGeneralofInfantry/Infantry–5GeneralStaffBranch
IndianArmy
16July2012 CBRNMobileDecontaminationSystem(PersonnelandEquipment)
23Aug2012 CombatEngineersDirectorate,CombEngrs-6 IndianArmy
16July2012 CBRNMobileDecontaminationSystem(VehicleandInfrastructure)
23Aug2012 CombatEngineersDirectorate,CombEngrs-6,
IndianArmy
26July2012 BorePumpActionShotGun(PASG)
15Aug2012 DirectorateGeneralofInfantry/Infantry–5 IndianArmy
16Aug2012 ELINTInterceptReceiverforMountainousTerrain
25Nov2012 DirectorateGeneralofMilitaryIntelligence
IndianArmy
16Aug2012 InternetProtocol(IP)Radio 1Oct2012 DGWE-9,WorkingGroupCDNS IndianArmy
23Aug2012 155mmWheeled(SelfPropelled)Gun
20Sep2012 DirectorateGeneralofArtillery,Artillery-14 IndianArmy
31Aug2012 PrecisionApproachRadar(PAR) 27Sep2012 DirectorateofNavalAirStaffIntegratedHeadquarters IndianNavy
4Sep2012 ModularIndividualLoadCarryingEquipment(MILE)
5Oct2012 DirectorategeneralofInfantry/PMOFINSAS IndianArmy
5Sep2012 Igla1MMissile 30Sep2012 DteGeneralofArmyAD,RoomNo-606 IndianArmy
6Sep2012 MobileElectromagneticInterference(EMI)/ElectromagneticSusceptibility(EMS)Lab
30Sep2012 ArmyCentreforElectromagnetics IndianArmy
7Sep2012 Strela10MMissile 20Sep2012 DIR(PROC)ArmyAirDefenceGeneralStaffBranch IndianArmy
25July2012 AirportSurveillanceRadar 23Aug2012 DirectorateofNavalAirStaffIntegratedHeadquarters IndianNavy
25July2012 FibreOpticsTestandMeasurementFacilities
28Aug2012 PrincipleDirectorWeaponEquipment IndianNavy
4Sep2012 SubmarineRescueBellSystem 20Sep2012 DirectorateofSpecialOperationsandDiving IndianNavy
18Sep2012 1KWHFTransmitter/TransreceiverSet
19Oct2012 DirectorateofNavalSignalsRoomNo6,SenaBhawan‘C’Wing
IndianNavy
20Sep2012 HighSpeedExpendableAerialTarget
30Nov2012 DirectorateofStaffRequirementsIntegratedHeadquartersofMoD(Navy)
IndianNavy
24July2012 HFRTSetsforcommunication 24Aug2012 PDC4ISR IndianAirForce
24July2012 Spatialdisorientationtrainingsimulator
24Aug2012 PDASR IndianAirForce
7Sep2012 ExpressionofInterest:QR/SpecificationofMiniUAV
22Sep2012 CommnBranch,Dte.Gen.,CRPF CRPF
18Sep2012 ExpressionofInterest:HandHeldSatellitePhone
30Sep2012 CommnBranch,Dte.Gen.,CRPF CRPF
18Sep2012 ExpressionofInterest:SatellitePersonalTrackerSystem
30Sep2012 CommnBranch,Dte.Gen.,CRPF CRPF
Request for Information (RFIs) (June 2012–September 2012)
Eye on defense | 23
Date of Issue RFI Details/Equipments Response Date Issued By Remarks
18July2012 IPBasedCCTVSurveillance 13Aug2012 OCIT,ITCell,OfficersTrainingAcademy,Gaya
ForIA
6Aug2012 CartsSA7.62mmSniperammunition 8Oct2012 DDGPPO ForArmy
7Aug2012 MiniUAVs 5Sep2012 DirectorACSFPCell ForArmyCommander;Qty:20
9Aug2012 VibrationInsulator 30Aug2012 CentralOrdnanceDepot-Kandivli(E),Mumbai
ForIndianArmy
23Aug2012 CounterTerrorismOperationsPlanningToolandWargamingSystem
27Nov2012 CounterTerrorismOperationsPlanningToolandWargamingSystem
ForIA
27Aug2012 EngineerReceeEquipmentforBMP-II 19Sep2012 OICACSFP,HQWesternCommand,GS(JtOps)Branch
ForIA;Qty:08Units
4Sep2012 HolographicWeaponSightForRifleAK47
15Oct2012 GOC-in-C,HQNorthernCommand
ForIA(Commander)Qty520Nos.
7Sep2012 VehiclesModificationofNetworkOperationalCentres(NOC)TacticalDataNetwork(TDN)
20Sep2012 HeadquartersWesternCommand
ForIA
18Sep2012 InteractiveFireArmTrainingModelandSimulationofSmallArmsFire
16Oct2012 GSO-1(Trg)HQInfantrySchool,Mhow(MP)
ForIA
28Jun2012 CCTVSurveillanceSystem 6Aug2012 UnitLogisticsSection,JCNagarPost,Hebbal.Bangalore
ForIAF;Qty:25
28Jun2012 Reconditioningof9klrefuellers 10July2012 DteofMT,AirHQ,WestBlock–VI
ForIAF
28Jun2012 Reconditioningof11klrefuellers 10July2012 DteofMT,AirHQ,WestBlock–VI
ForIAF
29Jun2012 UnderVehicleScanningSystem 30July2012 HeadquarterCentralAirCommand
ForIAF
29Jun2012 SpikesBarrier 30July2012 HeadquarterCentralAirCommand
ForIAF
29Jun2012 CCTV 30July2012 HeadquarterCentralAirCommand
ForIAF
28Jun2012 JackalArmourPlates6mmThick 30July2012 GeneralManagerVehicleFactory,Jabalpur
ForOFB
28Jun2012 JackalArmourPlates4mmThick 30July2012 GeneralManagerVehicleFactory,Jabalpur
ForOFB
10July2012 MineSweepingPloughtoDrgKMT-6 26Sep2012 Sr.GeneralManager,HeavyVehiclesFactory,Avadi
ForOFBQty:27
13July2012 RDXTNT8020HexoliteTypeB 16Aug2012 Dy.GeneralManagerForGeneralManagerOrdnanceFactoryKhamaria
ForOFBQty:400MT
29July2012 Supply,erectionandcommissioningofClosedvesselFiringUnit
30Aug2012 OrdnanceFactory,Itarsi ForOFB
2Aug2012 SafetyFuzeNo.11MK2/LA 30Aug2012 TheGeneralManager,OrdnanceFactoryChanda
ForOFB
3Aug2012 IntegratedLineofPlantandMachineryforManufactureof5.56x45mmSmallArmAmmunitionCargt.Cases
30Sep2012 JointGeneralManagerAmmunitionfactoryKirkee,
ForOFB
6Aug2012 Plantandmachineryformanufactureof9x19mmSmallArmAmmunitionCargt.cases
30Sep2012 JointGeneralManagerAmmunitionfactoryKirkee,
ForOFB
Request for Proposal (RFPs) (June 2012 - September 2012)
Eye on defense | 24
6Aug2012 PlantformanufactureofclosedtypeDetonator356mg
30Sep2012 AmmunitionfactoryKirkee, ForOFB
6Aug2012 PlantandMachineryforFillingPlantforManufactureofClosedTypeDetonator356Mg
30Sep2012 IndianOrdnanceFactoriesAmmunitionFactory,Khadki,Pune
ForOFB
17Aug2012 ElectricFuzeUncharged 7Sep2012 OrdnanceFactory,Badamal,Bolangir
ForOFBQty:91500Units
25Aug2012 FuzePercussionDA5A(Empty) 28Sep2012 AmmunitionFactory,Khadki–Pune
ForOFBQty:214117Nos.
25Aug2012 MineAPM
11Sep2012 Dy.GeneralManagerForGeneralManager/AFK
ForOFBQty:5870Sets.
31Aug2012 BombBody51mm 5Oct2012 Dy.GeneralManager/AmmunitionfactoryKirkee
ForOFB
3Sep2012 105mmLongRangeChaffRocket(LRCR)(AssembledEmpty)
30Oct2012 AmmunitionFactory,Khadki–Pune
ForOFBQty:1000set
17Sep2012 TurnkeyexecutionofDENSACPlant 6Nov2012 HighExplosivesFactory,Khadki,Pune
ForOFB
28Jun2012 LifeJacketsandLifeBuoys 23July2012 OfficerCommandingHQWaterwing,Pathankot
ForBSF
3July2012 Arms 14Aug2012 TheDIG/Commandant,CSWTBSFIndore
ForBSF
30Aug2012 HandHeldThermalImager(Biocular) 4Oct2012 DirectorateGeneral,BorderSecurityForce
ForBSFQty:355Nos.
4Sep2012 BicatStripandGrenadeNo90(MK-III) 9Oct2012 ProvisioningDirectorate(ProcurementCell)HQ,DG,BSF
ForBSFQty:8,497Nos.
8Aug2012 InteractiveFireArmsTrainingSimulator 4Sep2012 DeputyComdt(QuarterMaster)
ForCRPF
13Aug2012 CCTVCameras 7Sep2012 OfficeOfTheInspectorGeneralOfPolice,NorthWestSector,CRPF,Chandigarh(UT)
ForCRPF
16Aug2012 SelfIlluminatingMicroscopeComplete(Binocular)
11Sep2012 DC(Proc),LSC,CoBRASector ForCRPFQty:08Units
22Aug2012 AutomaticGrenadeLaunchers(AGLs)(alongwithitsmatchingGrenades)
19Oct2012 DirectorateGeneral,CRPFProvisioningDte.(ProcurementCell)
ForCRPFQty:AGL:110&Grenades:31900No
23Aug2012 IntegratedCommunicationSystem 10Sep2012 DirectorateGeneralCRPF,CGOComplex,NewDelhi
ForCRPFQty:12Nos.
Eye on defense | 25
Appl no. and date Name of the applicant Item of
4603/07/2012
HindustanAerosystemsPvt.Ltd. ManufacturingofOrecusuibNecgabucakCinoibebtsYSEforAerospace,Defence,Railwaysandotherhighandmediumindustryapplications
4703/07/2012
DewsoftFabricationPvt.Ltd. Siliconcarbideceramicplates
4803/07/2012
VipulEnterprises Bulletproofjacketsbulletproofvehiclefirefightingvehicle
4903/07/2012
RelianceAerospaceTechnologiesPvt.Ltd.
Manufactureofpartsandaccessoryforaircraft
5009/07/2012
SGSTekniksManufacturingPvt.Ltd. Manufactureofelectronicprintedcircuitboardassemblies,sub-assemblies,modules,boxbuild,powersupplies,DCtoDCconverters,controlsystemsfordefenseandaerospaceapplications.
5112/07/2012
RiverEngineeringPvt.Ltd. Manufactureofmagneticparts,mechanicalandelectro-mechanicalassemblies(suchasvalves,junctionboxes,connectors,pumpsetc.)andmachinedcomponentsfordefenseandaerospaceapplication
5218/07/2012
AsiaMotorworksHoldingsLtd. Lightarmoredhighmobilityvehicle,infantrymobilityvehicles,lightspecialistvehicles,lightbulletproofvehicles,armoredengineervehicles,armoredlogisticscarriers,armoredrecoveryvehicles
5318/07/2012
PrakashArmsCorporation Armsandammunition
5431/07/2012
PiramalSystem&TechnologiesPvt.Ltd.
Non-explosivecomponents,assemblies,sub-assembliessuchascanisters,containers;standssensors;seekers;firingsystemsforground-basedairdefensesystem
5507/08/2012
PiramalSystems&TechnologiesPvt.Ltd.
Manufactureandassemblyofunmannedaerialvehiclesanditsparts
5614/08/2012
ShoftShipyardPvt.Ltd. Warship
5714/08/2012
PiramalSystems&TechnologiesPvt.Ltd.
Manufactureandsupplyofmachinedmetalandcompositecomponents,sub-assembliesandassembliesfordefenseandaerospaceapplication
5816/08/2012
DeftechServices Airborneavionicsystemmechanicalcomponentsofaircrafts,groundsupportandtestequipmentforrepairofaircraftcomponents
5916/08/2012
KeltechEnergiesLtd. Detonatingfuse
6021/08/2012
SterlingandWilsonLtd. S&Wplanstodesigntheairconditioningsystemsrequiredforradarcooling,suchradarsareusedinsectorssuchascivilaviation,homelandsecurityanddefense
6121/08/2012
LakshmiTechnologyandEngineeringIndustriesLtd.
Aircraftparts
6228/08/2012
SasmosHetTechnologiesPvt.Ltd. Electronicwarfaresub-systems,partsandaccessoriesforairborne,groundnavalapplications,theirupgradeandcomponent
6328/08/2012
SwallowSystemsPvt.Ltd. ManufacturingminiandmicroUAVandpartsthereofwithgroundsupportsystems,compositeaerospacecomponents,auto-pilot,UAVtrainingsimulatorsandavionics
6429/08/2012
EinfochipsLtd., Softwaredevelopmentandelectronicdesignservicesforaerospaceanddefensesystems
List of Industrial Licenses (ILs) filed for the month of July 2012-August 2012
Eye on defense | 26
Name of entity Project details Value
IndianAirForce IndiaandRussiaareexpectedtosignthedesignorR&Dphasecontractforthefifthgenerationfightersbythisyear-endorearly2013.Indiaplanstoinduct200stealthfightersfrom2022onwards.TheIndianfighterwillprimarilybebasedontheT-50tweakedtoIAFrequirements.BeforethesigningoftheR&Dcontract,aseniorteamofHindustanAeronautics(HAL)engineersandIAFexpertsisgoingtoRussiatoensurethatthe"fulldocumentationandotherwork"oftheearlierpreliminarydesigncontract(PDC)hasbeencompleted.
INR1,926billion
IndianAirForce TheMinistryofDefence(MoD)clearedtheprojecttoacquire56transportaircraftfortheIAFtoreplaceitsageingfleetofAvroplanes.ItalsodecidedtooptforaforeignvendortopartnerwithHALtomanufacturetransportaircraft.Thefirst16aircraftwillbeprocuredoff-the-shelfinaflyawayconditionfromtheselectedforeignvendorwhilethenext16planeswillhavetohaveatleast30%indigenouscomponents.Thefigurewillgoupto60%forthelast24.AirbusMilitaryC295andAleniaAermacchiC-27Jarethepossiblecontendersforthedeal.
INR120billion
IndianAirForce TheIndianAirForcecompletedtestsoftheUSAH-64DApacheLongbowassaulthelicoptersandispreparedtoorder/buy22helicoptersfromBoeing.ThetestsconfirmedthecomplianceofAH-64DhelicopterswiththerequirementssetbytheIndianAirForce.TheAH-64DhelicoptershadwonthecontractagainstRussianMilMi-28.
INR77billion
RelianceIndustries
RelianceIndustriesplanstoinvestUS$1billioninthenewaerospacedivisionbesideshiringaround1,500people.InJuly2012,RelianceIndustriesappliedforalicensewiththeDepartmentofIndustrialPolicyandPromotionto”design,developandmanufacture,equipmentandcomponents,includingairframe,engine,radars,avionicsandaccessoriesformilitaryandcivilianaircraft,helicopters,unmannedairbornevehiclesandaerostats.”Thenewbusinessislikelytobehousedunderthecompany'stwonewentitiesestablishedlastyear—RelianceAerospaceTechnologiesandRelianceSecuritySolutions,createdlastyear.
INR55billion
IndianNavy IndiaissuedanRFPfor56navalhelicopterstoglobalaviationmajorssuchasBoeing,Bell,Sikorsky,Kamov,EurocopterandAgustaWestland.Thesehelicoptersareintendedforsurveillance,anti-submarinewarfare,anti-terror,electronicintelligencegatheringandsearchandrescueoperations.Thehelicoptersareplannedforinductionfrom2016onward.
INR55billion
IndianNavy Indiafloatedaglobaltendertoprocurearound60utilitychoppers.Theutilitychopperswillreplacethe60-oddChetaksthatthenavyhasinserviceandareoperatedbothfromshoreandonboarditswarships'flightdeck.Thenavyislookingtoprocuretwin-enginehelicoptersaspartofthistender.
INR50billion
PipavavDefenceandOffshoreEngineeringCo.Ltd.
PipavavDefenceandOffshoreEngineeringCo.Ltd.receivedanorderfromaWestAfricanclienttobuildtwooffshorepatrolvessels,markingitsfirstinternationalnavalcontract.ThecontractvalueislikelytogouptoINR25billioniftheclientexercisesanoptionfortwomoresimilarships.
INR12billion
CXPartners CXPartners,aprivateequityfirm,signedanagreementtoacquireuptoa26%stakeinSecurityandIntelligentServices(SIS),engagedinsecurityproductsandservices.TheinvestmentwillbemadebyacquiringtheminoritystakeofaUShedgefundDEShawaswellasbuyingnewsharesofthesecuritycompany.ThedealislikelytohelpSISraisefreshcapitalofINR2billiontofuelitsfuturegrowthplan.
INR5billion
New projects/investments/contracts
Eye on defense | 27
SAAB SAABwillinvestinPipavavDefenseandOffshoreEngineeringundera“technologypartnershipagreement.”TheinvestmentwillenablePipavavtoenhanceitsinfrastructurecapabilitytobuildandmaintainmilitaryhardwarefortheIndianArmyandexportmarkets.
INR2.1billion
RollsRoyce Rolls-RoycewonadealtodesignandpoweraUT755SbuoytendervesselbuiltforIndia.Underthecontract,thecompanywillsupplythevessel'smainengines,propulsionsystem,automationandcontrolsystem,deckmachineryandshaftgenerators.TheunitwillbebuiltatIndia'sCochinShipyardLtd.Upondeliveryin2015,thevesselwilloperatearoundtheAndamanandNicobarislands,performingmaintenanceandreplacementofnavigationalaidsandbuoys.
INR695million
Samtel SamtelAvionics&DefenceSystemsreceivedanordertomanufactureavionicsequipmentforHoneywell.TheequipmentisorisusedfortheaircraftintheUS.TheorderisincontinuationofthepreviouspurchaseorderthatSamtelhadreceivedfromHoneywellin2010.TheproductionofthisequipmentistobeginshortlyatSamtelAvionics'newproductionfacilityatGreaterNoida.
INR281million
Kerala ProfilesoftwoprojectsunderthecategoryAirport/InfrastructureandAerospace/HelicopterserviceswerefinalizedforEmergingKerala—AeronauticalMaterialTestingLaboratory(AMTL)atAthaniinThrissurdistrictandAerospaceParkatKadinamkulammeetcommencinginKochifromSeptember2012.BesidesattractingcompaniessuchasJaguar,Boeing/Airbus,theATMLwillalsobeabletotrainaeronauticalengineeringstudentsfrominstitutesinsideandoutsidethecountry.
NA
IndianAirForce BritishcompanyBAESystems,whichmanufacturesHawkAJTs,receivedarequestforproposal(RFP)fromHindustanAeronauticsLtd.(HAL)fora“potentialorder”tosupplyproductsfor20HawkAJTs.TheseaircraftwillbemanufacturedbyHALandsomeofthesewillbedeployedforthenewaerobaticsteamoftheIAF,expectedtobereconstitutedinaboutthreeyears.
NA
*ThevaluesofthedealshavebeenconvertedtoIndianRupeesusingOandacurrencyconversiontool
1US$=INR55.03and1GBP=INR86.92(AverageofthevaluefromJuly2012toSeptember2012)
Eye on defense | 28
Name of the entities Nature of transaction Value
BharatElectronicsLimited(BEL)andThales
• BELplanstoestablishajointventurecompanywithThalesAirSystems,FranceandThalesIndiaPvt.Ltd.inthefieldofmilitaryradars.Thecompanyexpectstogainmarket-shareinthecivil-sectorradarcapabilitywiththisventure.ItapprovedtheproposalduringitsboardmeetingandwillnowseekapprovaloftheMoDinthisregard.
• BELwillhold74%intheJVandwillinvestINR400–450million.
INR600million
PiramalEnterprisesandBlueBirdAeroSystems
• PiramalEnterprises(formerlyPiramalHealthcare)acquireda27.83%stakeinBluebirdAeroSystems,anIsrael-basedunmannedairsystemsmanufacturertoforayintothedefensesector.
• BluebirdhasanagreementwithBengaluru’sDynamaticTechnologiestomanufactureandmarketminiandmicrotactical,unmannedaerialvehiclesinIndiaandissettobidforcontractsinIndia.
INR385million
OrdnanceFactoryBoardandRosoboronexport,Russia,Sp
• OrdnanceFactoryBoardsignedaMemorandumofUnderstanding(MoU)foraJVwithM/sRosoboronexport,RussiaandM/sSplav“SPA”,RussiatomanufacturefiveversionsofSmerchRockets,basedonthetechnologyreceivedfromRussia.
• TheSmerchRocketshavearangeof70–80kmsandwillbearmedonthemultiple-launchrocketsystemsacquiredfromRussia.
NA
Mahindra&MahindraLtd.andTelephonics
• Mahindra&MahindraLtd.signedadefiniteagreementtoformajointventure(JV)withTelephonicsCorporation,whichwillbecalledMahindra-TelephonicsIntegratedSystems.
• TheJVwillprovidetheIndianMoDandthecommercialsectorwithradarandsurveillancesystems,identificationfriendorfoe(IFF)devices,andcommunicationsystems.Inaddition,theJVintendstoprovidesystemsforairtrafficmanagementservices,homelandsecurity,andotheremergingsurveillancerequirements.
• Theplantwillbeset-upinBengaluruandMahindra-TelephonicswilllicensetechnologyfromTelephonics.
NA
InfotechEnterprisesandInfotechAerospaceServices
• ITservicesfirm,InfotechEnterprisesplanstoacquirea74%controllinginterestinitsJV,InfotechAerospaceServices,inabidtowinmorebusinessfromnewaerospaceclients.
• Pratt&Whitney,aunitofUnitedTechnologiesCorporation(UTC),currentlyholdsa51%stakeinPuertoRico-basedInfotechAerospaceServices.Itwillnowholda26%stakeintheJV.
• TheJVworksonaerospaceengineeringandsoftwaredevelopmentformilitarycommercialandindustrialapplicationsandindicatesitsintentiontoscaleupaerospaceengineeringservices.
• TheJVwillhelpingettingbusinessfromaerospaceclientsotherthanUnitedTechnologies,sinceamajoritystakeinUnitedTechnologieswasconsideredahurdleingivingbusinesstoInfotechAerospaceServices.
NA
RossellIndiaLtd.andCAECanada
• RossellIndiahastiedupwithCanadianfirm,CAECanadatoprovidesimulationtrainingsolutionstotheIndiandefensemarket.CAECanadaprovidesmodeling,simulationandtrainingservicesforthecivilaviationanddefenseindustry.
• RossellIndiawillholda74%stakeinthepartnership,whileCAECanadawillholdtheremaining26%.
NA
CiscoPartnersandThales
• CiscoenteredapartnershipwithThalestoprovideequipment,systemssolutionsandservicesthatmeetthesecurityrequirementsfordefenseandsecurity,aerospaceandtransportationmarkets.
• CiscowillprovideThaleswithanextensiverangeofstandardnetworkingequipmentandinfrastructure,complementedbynetworkingdesignandengineeringexpertisefromCiscoServices.
NA
MahindraSatyam • ITservicesproviderMahindraSatyamisindiscussionstoacquireanaerospaceengineeringfirminEurope.Theproposedacquisitionispartofalargerplanbythecompanytoimproveitsofferingsinengineeringservices,healthcareandfinancialservicesverticals.
• AnaerospaceacquisitionwillalsohelpMahindra&Mahindratostrengthenitsfootholdinaeronautics.
NA
Mahindra&MahindraLtd.andHawkerBeechcraft
• Mahindra&MahindraLtd.,manufacturerofdefensetransportationsystemsanddefensesystems,isconsideringbiddingforHawkerBeechcraftInc.,thebankruptaircraftmanufacturerpartlyownedbyGoldmanSachsGroupInc.
• HawkerwillfitwellwithMahindra,sinceboththecompaniesmanufactureturbopropaircraft.
NA
DCNSandPipavav • France'sDCNSandIndia'sPipavavDefencehaveforgedastrategicalliancetobuildwarshipsandsubmarinesinIndia.
• DCNSisoneofthelikelybiddersoftheIndianNavy’sUS$12billionprogramtopurchasesixconventionalsubmarinesanditwantstoforgeatie-upwithPipavavaheadofthetender.
NA
Joint ventures and alliances
Eye on defense | 29
Country Nature of transaction Additional details
SaudiArabia ThefirstmeetingoftheIndia-SaudiArabiaJointCommitteeonDefenceCooperationwasheldinSeptember.The11-memberSaudidelegationwasheadedbyMajorGeneralSuleimanSalehAl-Khalifa,ChiefoftheArmedForcesOperationsofSaudiArabia.TheIndiandelegationwasheadedbytheJointSecretary,MoD.
Duringthemeeting,bothsidesexpressedinteresttofurtherenhancedefenseexchangesandinteractionsbetweentheirarmedforces.Discussionswereheldonproposalsforhigh-levelvisits,trainingexchangesandfunctionalexchangesinvariousareas.TheestablishmentoftheJointCommitteewasdecidedduringthemeetingoftheDefenseMinisterAKAntonywiththeSaudiDefenseMinisterduringtheIndiandefenseminister’svisittoSaudiArabiainFebruary.
China IndiaandChinatodayreachedconsensusonawiderangeofissuesrelatingtodefenseandmilitaryexchangesandcooperation.TheyalsoagreedtostrengthenbordersecuritycooperationbetweenthebordertroopsofthetwosidessoastoenhanceandmaintainpeaceandtranquilityintheIndo-Chinaborderareas.
BothsidesexchangedviewsonthesecuritysituationinSouthAsia,WestAsiaandtheAsia-Pacificregionandonvariousglobalsecuritychallengessuchascybersecurity.IndiaandChinaalsoagreedtoconductthenextroundofjointmilitaryexercisesattheearliest.TheyalsodecidedtostrengthencooperationbetweenthenavalforcesofbothsidesincounterpiracyoperationsintheGulfofAdenandoffthecoastofSomalia.DefenseMinister,AKAntony,isalsoinvitedtovisitChinain2013.
Russia RussiaistryingtoarrestthelossesintheIndiandefensemarket.Atonepointoftime,itwasoneofthebiggestarmssupplierstoIndia,butitisrapidlylosingmarketsharebecauseofoverpricingandothercommercialreasons.
RussianDeputyPrimeMinister,DmitryRogozin,duringhisvisittoNewDelhion17July2012,advocatedmovingfrombasictradetothejointdevelopmentofdefenseequipment,whichcouldbesoldtoothercountries.
Vietnam SeniorLieutenant-General,NguyenChiVinh,DeputyMinisterofNationalDefenceandIndianAmbassador,RanjitRae,heldameetinginHanoion11September.
Themeetingwasinpreparationforthe7thVietnam-IndiaStrategicDefenceDialogue,whichwillfocusonpromotingstrategiccooperationindefense,army-medicine,searchandrescueandpersonneltraining.ThearmiesofVietnamandIndiaannouncedclosecooperationinthefieldofdefenseindustry,informationtechnologyandpersonneltraining.
Maldives DefenseMinister,AKAntony,heldtalkswiththePresidentofMaldives,MohamedWaheedHassanManik,andtheDefenseMinisterCol(Retd)MohamedNazimonhisthree-dayvisittoMaldivestodiscussdefensecooperationbetweenthetwocountries.
ThetwodefenseministersexchangedtheagreementtostationtheIndianCoastGuardAdvancedLightHelicopterinMaldivesforaperiodofanothertwoyears.HealsolaidthefoundationstoneofMaritimeTrainingAcademyofMaldivestobebuiltwithIndia’sassistance,whichwilltrainpersonnelfromMaldivesCoastGuardandMarinePolice.
Country-level deals and initiatives
Eye on defense | 30
Industry buzz
India verifying counterfeit spare parts in US defense equipmentIndiaisattemptingtoverifywhethercounterfeitsparepartsmadeinChinawereusedindefenseequipmentbeingsoldbyUSfirmstoIndia.InMay,theUSSenateArmedServicesCommitteereleasedareportsayingthatcounterfeitelectronicpartsfromChinahavefoundtheirwayintocriticalUSmilitarysystems,includingspecialoperationshelicoptersandsurveillanceaircraft.SuspectedcounterfeitpartswerefoundonSH-60B,AH-64andCH-46helicopters,aswellastheC-17,C-130J,C-27JandP-8Afixed-wingaircraft.
(Source:JayMenon,“IndiaHuntsForCounterfeitPartsInU.S.DefenseProducts,”AerospaceDaily&DefenseReport,10August2012,viaFactiva,©2012McGraw-Hill,Inc.)
Government not to immediately raise FDI cap in defenseTheGovernmentofIndiahasdecidednottoimmediatelypushforraisingFDIcapindefenseproduction.Inadiscussionpaperreleasedmorethanayearago,theDepartmentofIndustrialPolicyandPromotion(DIPP)hadproposedthattheFDIcapindefensebeincreasedfrom26%to74%topromotelocalmanufacturinginsteadofdependingonimports.However,theMoDhasraisedconcernsonthegroundsthatdefenseisofstrategicinterest.
(Source:SidharthaandSurojitGupta,“GovtnotkeenonhigherFDIcapindefence,”TheTimesofIndia-HyderabadEdition,17September2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.)
RK Mathur to be the new Secretary, Department of Defense ProductionMr.RadhaKrishnaMathur,anIASofficerfromManipur-Tripura(MT)cadre,hasbeenappointedasSecretary,DepartmentofDefenseProduction(DDP),MinistryofDefense,inplaceofMr.ShekharAgarwal,whosetenureendedon30September.Mr.MathuriscurrentlySecretary,MinistryofMicro,SmallandMediumEnterprises.Furthermore,Ms.RashmiVerma,currently,JointSecretary,DepartmentofDefenseProductionhasbeenappointedasAdditionalSecretary,DepartmentofRevenueintheMinistry.
(Source:“RKMathurappointedDefenceProductionSecretary,”BureacracyToday,28September2012,viaFactiva)
RFP expected for Indian wargaming center ARFPforawargamingcenterfortheIndianAirForce(IAF)isexpectedinthelastquarterofthisyear.AccordingtotheRFIissuedlastyear,thecentershouldbecapableofsimulationsatstrategicandoperationallevelsincollaborationwithothersecurityagencies.ApartfromtakingintoaccounttheIAF’scurrentfleet,thecenterwillalsoallowfortheincorporationofsystems,whichareyettobeinducted.
(Source:JayMenon,“RFPExpectedForIndianWargamingCenter,”AerospaceDaily&DefenseReport,30July2012,viaFactiva,©2012McGraw-Hill,Inc.)
Eye on defense | 31
India successfully test-fires BrahMos cruise missileIndiatestfiredasupersoniccruisemissile,BrahMos,aspartofausertrialbythearmyfromatestrangeatChandipuroffthecoastofOrissa.Themissilehasaflightrangeofupto290kmandiscapableofcarryingaconventionalwarheadof300kg.
IndiahopestodevelopthenextversionofitsjointhypersoniccruisemissileprojectwithRussia,theBrahMosIIinthenextfiveyearsby2017.
(Source:“Indiatest-fires'BrahMos'cruisemissile,”TheFinancialDaily,30July2012,viaFactiva;JayMenon,“BrahMosIIMissileToBeReadyBy2017,”AerospaceDaily&DefenseReport,3August2012,viaFactiva,©2012McGraw-Hill,Inc.)
Nuclear capable Agni-II and Agni-III test-fired successfully and SFC gains capability to fire Agni-IThe2,000-kmrangesurface-to-surfaceAgni-IIballisticmissilewassuccessfullyflighttestedfromWheeler'sIslandintheBayofBengal,offthecoastofOdisha.Themissilehasbeengivenmaneuverablere-entry,whichmeansthatafterthemissileisfiredandre-enterstheatmosphere,itscanbenavigatedtohitthetarget.
Agni-IIIwasalsotest-firedforarangeof3,000kmoffthesameisland.Itiscapableofcarryingapayloadweighing1.5tonnesandisequippedwithanadvancedguidanceandnavigationsystemtoensureaccuracy.
Also,theStrategicForcesCommand(SFC)cannowindependentlyfirethe700-kmrangenuclearcapableAgni-1missilewithoutthehelpofDRDOscientists.
(Source:“NuclearcapableAgni-IItest-firedsuccessfully,”TheTimesofIndia,10August2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.;“Army'sStrategicForcesCommandcanfireAgni-Ionitsown,”TheTimesofIndia,16July2012,viaFactiva,©2012TheTimesofIndiaGroup)
Karnataka to formulate aerospace policy to woo investorsTheKarnatakaGovernmentisformulatinganaerospacepolicytoattractglobalinvestmentsandmakeBengaluruasamajoraerospacehubinSouth-Asia.Theaerospacepolicywillhelpfacilitateglobalaerospacemajorstosetuptheirfacilities.TheproposedaerospaceparkwillbesetupneartheinternationalairportatDevanahalli.BangalorehasemergedasamajorcenterforaerospaceindustrieswiththepresenceofHindustanAeronauticsLtd(HAL),NationalAerospaceLaboratories(NAL)andmanyaeronauticalresearchanddevelopment(R&D)organizations.
(Source:“Karnatakatohaveaerospacepolicytowooinvestments,”Sarkaritel,27August2012,viaFactiva.)
Embraer delivers first modified AEW&C aircraft to be fitted with DRDO systemsThefirstfullymodifiedaircraftforindigenousAirborneEarlyWarningandControlSystems(AEW&C)aircraftlandedinIndiaattheCentreforAirborneSystems(CABS),Bengaluru,aDRDOlaboratory.TheaircraftwillnowbeintegratedwithaDRDO-developedmissionsystem,whichwillbefollowedbydevelopmentflighttrialsinIndiabeginning2013.ItwillbenotedthatthisisthefirstaircraftdeliveredbyEmbraer,forwhichthecontractwassignedin2008.ThenextaircraftisexpectedtoarriveinDecember2012.
(Source:“EmbraerdeliversfirstmodifiedAEW&CaircrafttobefittedwithDRDOsystems,”Domain-B24August2012,viaFactiva,©2012TheInformationCompanyPvt.Ltd.)
Boeing completes major integration of India’s C-17 aircraftBoeingintegratedtheforward,centerandaftfuselagesandthewingassemblyofIndia'sfirstC-17GlobemasterIIIduringits"majorjoin"ceremony,inLongBeach,California.The"majorjoin"ceremonyentailsrivetingoftheaircraft'sfuselagewithotherpartssuchaswingsandthecargohull.Itisnowpreparingtotest-flythefirstoftheC-17aircraftbyJanuary2013.India'sMinistryofDefensesignedanagreementwiththeUSGovernmentonJune2011,toacquire10C-17aircraft.ThefirstaircraftisexpectedtoarrivebyJune2013.
(Source:“BoeingcompletesmajorintegrationofIndia'sfirstC-17airlifter,”SP'sAviation,1August2012,viaFactiva,©2012SPGuidePublicationsPvt.Ltd.;JayMenon,“FirstIndianC-17GetsReadyForTesting,”AerospaceDaily&DefenseReport,6August2012,viaFactiva,©2012McGraw-Hill,Inc)
HAL puts indigenous aircraft development activities on fast trackHALhasplacedthedevelopmentofitsindigenousaircraftonthefasttrack.ItstatedthecompletionofIntermediateJetTrainer(IJT),Sitara),completionoftheAirForceversionofthelightcombataircraft(LCA)toreplaceMiG-21s,completionoftheNavy’sversionofLCAtoreplaceSeaHarriers,completionofthelightutilityhelicopter(LUH)andthelightcombathelicopter(LCH)asitspriorities.Ithasclaimedtoputdedicatedteamsinplacetoworkontheprojects,componentprocurementprocessesandaugmenteditsinfrastructure.
(Source:“HALputsindigenousaircraftdevelopmentactivitiesonfasttrack,”IndiaPublicSectorNews,3September2012,viaFactiva,©2012Contify.com)
Helicopter tender for Indian Navy delayed TheIndianNavydelayeditstendertobuy16multi-rolehelicoptersbyanothersixmonthsevenasitplanstoissuearequestforproposaltoprocuremorethan75similaraircraft.Accordingtopressreports,twobiddershavebeenaskedtoextendthevalidityoftheirproposalsforsixmoremonths.NHIndustries(NHI)withitsNH-90andSikorskywithitsS-70havebidfortheprogram.Thisisthesecondtimeinthelastyearthatthedefenseministryhasaskedthecompaniestoextendthevalidityoftheirproposals.Theaircraftwillbeusedforanti-submarinewarfareandsurveillance.
(Source:JayMenon,“HelicopterTenderForIndianNavyDelayed,”AerospaceDaily&DefenseReport,7August2012,viaFactiva,©2012McGraw-Hill,Inc.)
Army to use UAVs on China borderDefenseminister,AKAntony,advocatedmorefrequentuseofUAVsneartheSino-IndianborderintheNorthEastandLadakhtoaugmentIndia’ssurveillanceandintelligencegatheringcapabilityduringhismeetingwithArmyChiefBikramSinghtodiscussthesecuritythreatsemanatingfromChina.
(Source:“AntonywantsArmytouseUAVsonChinaborder,”DeccanHerald,3July2012,viaFactiva,©2012ThePrinters(Mysore)PrivateLtd.)
Bharat Forge initiates trial creation of products for aerospace worldBharatForgeLimited(BFL),afullservicesupplierofforgedandmachined-engineandchassiscomponents,hasinitiatedatrialcreationofforgingsintitaniumandspecialtysteelsfortheaerospacesector.Thefirmhasestablishedasustainedpartnershipwithtitaniummanufacturerstocreaterawmaterialandtechnologyrequiredforforgings.Theidentification
processofproductsisbeingcarriedoutandthecompanywillinitiatetrialproductionforsomeaircraftmanufacturers
(Source:“BharatForgeinitiatestrialcreationofproductsforaerospaceworld,”IndiaAutomobileNews,3August2012,viaFactiva,©2012Contify.com)
Navy plans to buy two submarines off shelfMoDplanstoawardcontractsfortwoProject75Isubmarinestoaforeignshipyardbecauseofthedelayinconstruction.Byawardingthesecontracts,theMoDistryingtoavoidthedelayintheroll-outofthesesubmarines.Underafollow-onorderofProject75I,fourvesselswillbeconstructedinIndiabyMazagonDock(MDL)inMumbaiandHindustanShipyard(HSL)inVisakhapatnam.TheMoDissuedarequestforproposalsin2009toFrance'sArmaris,Russia'sRosoboronexportandGermany'sHDWforthenextgenerationofsubmarinestobeconstructedattheirshipyards.
(Source:“Hitbydelays,Navywantstobuy2subsoffshelf,”FinancialExpress,16August2012,viaFactiva,©2012IndianExpressOnlineMediaPvt.Ltd.)
Indian Coast Guard Hovercraft H-187 CommissionedViceAdmiral,MPMuralidharan,commissionedtheIndianCoastGuardHovercraftH-187,thefirstofaseriesoftwelveAirCushionVehicles(ACVs)designedandbuiltbyGriffonHoverworkLimited(GHL)UKatOkhainGujaraton11June.The21meterlongAirCushionVehicle(ACV)displaces31tonnesandcanachieveamaximumspeedof45knots.TheACViscapableofundertakingmultifarioustaskssuchassurveillance,interdiction,searchandrescueandrenderingassistancetosmallboats/craftindistressatsea.
(Source:“IndianCoastGuardHovercraftH-187Commissioned,”Force,31July2012,viaFactiva,©2012ArrowheadMediaPvt.Ltd.)
Scorpene submarine project takes-offTheMinisterofStateforDefence,MMPallamRaju,inauguratedthemanufacturingfacilityofSECindustriesdevelopedincollaborationwithDCNS.DNCSwilldeliversixScorpenesubmarinestotheIndianNavyandfourofthemwillbemanufacturedbytheMazagonDockLimitedundertransferoftechnology.SECwillbemanufacturing14criticalcomponentsforScorpene.ThefirstScorpeneisexpectedtobelaunchedbyend-2013andcommissionedin2015andthelastisexpectedtobecommissionedin2018.
(Source:“FacilityopenedtomakekeycomponentsforScorpenesub,”TheHindu,17July2012,viaFactiva,©2012Kasturi&SonsLtd)
Two coastal radar stations to be operational ThetworadarsinthenetworkinMumbaiandPorbanderwereinauguratedbytheDefenseMinister,AKAntony.TheyhavebeendevelopedbyBharatElectronicsandwereputonafasttrackafter26/11Mumbaiattacks.Inthefirstphase,achainof46radars(36onmainlandand10inislandterritories)willbeoperationalizedinclusters.Theradarnetworkinthemainlandisexpectedtobefullyfunctionalbymiddleofnextyearwhiletheradarsintheislandswilltakeafewmoremonths.Theseradarswillbeabletodetectbigvesselsplyingontheseaupto25nauticalmilesaswellasaircraft;however,detectingfishingboatsstillremainaproblem.
(Source:“TwocoastalradarstationstofunctionfromSaturday,”DeccanHerald,24August2012,viaFactiva,©2012ThePrinters(Mysore)PrivateLtd.)
Eye on defense | 33
1. ArunKumar,“CXPartnerstobuyupto26%inSecurityandIntelligentServicesforRs500crore,” The Economic Times,28August2012,viaFactiva,©2012TheTimesofIndiaGroup.
2. “SAABofSwedentoinvestinPipavavDefence,” Business Line (The Hindu),28August2012,viaFactiva,©2012TheHinduBusinessLine.
3. RajatPandit,“Indiasettoinkbiggestdefdeal,”The Times of India - Mumbai Edition,21August2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.
4. “Indiareadytobuy22AH-64DassaulthelicoptersfromUS”,ITAR-TASSWorldService,21August2012,viaFactiva,©2012ITAR-TASS
5. “SamtelReceives$5.1MillionOrderFromHoneywellForAvionicsEquipment,”EFYtimes.com,21August2012,viaFaciva,©2012EFYEnterprisesPvt.Ltd.
6. P.Manoj,“PipavavDefencewinsglobalnavaldeal,”HNMINT,7August2012,viaFactiva,©2012.HTMediaLimited.
7. “RelianceIndustriesearmarksaninvestmentworth$1billioninnewaerospacedivision,”Accord Fintech,3August2012,viaFactiva.
8. BobyKurian&SwatiBharadwajChand,“InfotecheyescontrolofJVwithPratt&Whitney,”The Times of India - Chennai Edition,14August2012,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.
9. “DefenceministryclearsRs12,000croreprojecttoacquire56transportaircraftforIAF,”The Times of India,25July2012,viaFactiva,©2012TheTimesofIndiaGroup
10. RituSharma,“DefenceMinistryNodforTransportAircraftJointVenture,”New Indian Express,23July2012,viaFactiva,©2012TheNewIndianExpressGroup.
11. “NewDelhigetssetforHS748successorduelIndiasetsstagefor$2.4bntransportcontest,” Flight International,31July2012,viaFactiva,©2012.ReedBusinessInformationLimited.
12. S.AnilRadhakrishnan,“Twoaerospaceprojectslisted,” The Hindu,5September2012,viaFactiva,©2012Kasturi&SonsLtd
13. “IAFsettobuy20HawkAJTsforaerobatics,” The Asian Age,15September2012,viaFactiva,©2012.DeccanChronicleHoldingsLtd.
14. “Navyfloats$900mntenderforutilitychoppers,”Indo-AsianNewsService,10August2012,viaFactiva.
15. AmritaNair-Ghaswalla,“PiramalEnterprisespicksup27%stakeinBluebirdAeroSystems,”Business Line (The Hindu),17August2012,viaFactiva,©2012TheHinduBusinessLine.
16. “MahindraandTelephonicsjointventureagreement,”SP'sMAI,16August2012,viaFactiva,©2012SPGuidePublicationsPvt.Ltd.
Sources for new projects/investments/contracts, joint ventures and alliances and country-level deals and initiatives
Eye on defense | 34
17. “MazagonDocksignsJVstocompletehugeorderbook,”ProjectMonitor,30July2012,viaFactiva,©2012EconomicResearchIndiaPvt.Ltd.
18. “RossellIndiatiesupwithCanadianfirmindefencesector,”PressTrustofIndia,10August2012,viaFactiva.
19. “CiscopartnerswithThalestoaddressglobaldefenseandsecuritymarket,”TelecomTiger,30July2012,viaFactiva,©ATDataProcessPvt.Ltd.
20. DeepikaAmirapu,“MahindraSatyamintalkstobuyaerospaceengineeringcompanyinEurope,”The Times of India,13July2012,viaFactiva,©2012TheTimesofIndiaGroup.
21. “BELplanningjointventurecompanywithFrenchmajorThales,”PressTrustofIndia,5July2012,viaFactiva.
22. MadhumathiD.S.,“BELbetsbigonradarventurewithFrenchfirmThales,”Business Line (The Hindu),13August2012,viaFactiva,©2012TheHinduBusinessLine.
23. “MahindraeyesHawkerBeechcraft,”EdmontonJournal,5July2012,viaFactiva.
24. “DCNSseeksIndianpartnersforScorpeneproject,”The Hindu,17July2012,viaFactiva,©2012Kasturi&SonsLtd.
25. ManuBalachandran&KausikDatta,“L&T,PipavavInkTwoSeparateDefenceJVswithMazagonDock,” The Economic Times - Mumbai Edition,23July2012,viaFactiva,©2012.Bennett,Coleman&Co.,Ltd.
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27. “FirstMeetingofIndia-SaudiArabiaJointCommitteeonDefenceCo-Operation,”10September2012,PressBureauofIndiawebsite,http://www.pib.nic.in/newsite/AdvSearch.aspx,accessed25September2012.
28. “India,RussiainkMoUforlong-rangeSmerchrockets,”29August2012,The Times of India-HyderabadEdition,viaFactiva,©2012Bennett,Coleman&Co.,Ltd.
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Eye on defense | 35
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