See Page 12 February-March 2018 Volume 13 No. 1 `100.00 (India-Based Buyer Only)
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Page 4 COver sTOry When will Indian Navy Get US-2? IllustratION: anoop Kamath
at a time when China is increasing its presence in the Indian Ocean region, India has not been able to finalise the procurement of much required amphibious aircrafts. Rohit Srivastava
Page 6 Secret out – China’s Rail Gun Ready to Fire In recent months China has been making the world aware of its breakthrough in defence technology. after making the world about eMaLs, this time it is rail gun for its Navy. Rohit Srivastava
Page 8 Strategic Base for Nuclear Submarines The growing prowess of the third leg of India’s nuclear triad may be slow to take-off Naval Budget 2018-19 and emerge as a potent force, yet it already has all essentials to employ deterrence in the region Rear Admiral Sushil Ramsay (Retd) Modernisation Stumped Page 9 Third Scorpene Submarine Karanj Launched Arun Jaitley stated that, ever since the NDA Government has assumed office in 2014, lot of emphasis has been given to modernising and enhancing the operational capability of the Defence Forces. Ensuring adequate budgetary support will be our priority.
n Lt GeneraL naresh Chand (retd) 19, presented by the Finance Minister Arun `99,563.86 crore, allocated for Capi- Jaitley in the Parliament envisaged a total tal expenditure, includes modernisation iNANcE MiNistEr AruN JAit- outlay of `24,42,213 crore. Out of this, related expenditure. the capital allocation lEy started the budget speech by `2,95,511.41 crore has been earmarked for for Ministry of Defence under Budget Esti- reiterating the Government s past Defence which accounts for 12.10 per cent mates (BE) 2018-19 is 33.1 per cent of the achievements and announcing of the total central Government expendi- total central Government Expenditure on new proposals for agriculture and ture for the year 2018-19. This allocation capital Account, which is `3,00,441 crore. Rohit Srivastava Frural economy; health, education and social represents a growth of 7.81 per cent over Page 10 protection; MsMEs and employment; infra- Budget Estimates (`2,74,114.12 crore) RM’s Advisory Committee on Ministry of structure and financial sector development; and 5.91 per cent over revised Estimates Defence Capital Projects Turkey Begins Construction of building institutions and improving public (`2,79,003.85 crore), respectively for the the raksha Mantri Nirmala sitharaman its First Helicopter Dock service delivery, etc. All this under the financial year 2017-18. However it is 1.58 has constituted a 13 member raksha Man- Following the trend of acquiring amphibious centre Heading of Governance, Economy per cent of GDP and lowest since 1962. tri s Advisory committee on Ministry of ships which can double up as helicopter and Development . this was on anticipated Revenue and Capital Allocations. Defence (MoD) capital Projects (rMcOMP). carriers, Turkey has initiated the construction lines due to the elections coming up in Out of `2,95,511.41 crore allocated for the decision has been taken to expedite of its first helicopter dock TCg anadolu. many states during this year. india s annual the financial year 2018-19, `1,95,947.55 capital acquisitions to bolster armed forces Rohit Srivastava budget becomes more of the Government s crore has been allocated for revenue (Net) preparedness. the committee is chaired by arithmetical exercise on its revenue and expenditure and `99,563.86 crore for shri Vinay sheel Oberoi, Former secretary, PLUS expenditure with political overtones. capital expenditure for the Defence ser- Government of india. the other members Appointments 7 vices and the Organisations/Departments are retired senior officers from Defence Defence Budget under Ministry of Defence. Psus, OFB, DrDO and the three services. News in Brief 11 Union Budget for the financial year 2018- Capital Allocation. the amount of there are two members from outside the
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2017 has been a good year for ducted for testing the Navy s Indian Navy as well prominent women officers on an Indian- the Navy with active participa- operational readiness and also ones being INS Kiltan the third built Sailing Vessel, INSV Tarini. tion in foreign exhibitions like exercises with friendly foreign ship of Project-28 anti-subma- This is first Indian all-women IDEX/ NAVDEX 17 at UAE and countries. rine warfare corvette; the third crew circumnavigation of the Langkawi International Mari- Another land mark event and fourth ships (Tillanchang globe under sail. Expedition was time and Aerospace Exhibition was the conduct of the maiden and Tarasa) of the four Follow flagged-off on September 10, (LIMA)-2017. There have been Goa Maritime Conclave (GMC) On Waterjet Fast Attack Craft 2017 and is expected to return overseas deployment both by at Naval War College, Goa Project; and the much awaited to Goa in April 2018. the Western and the Eastern from November 1-2, 2017. commissioning of the first sub- We all at SP Guide Publica- Fleets. The Indian Navy has Chiefs of Navy/Heads of Mari- marine of P-75, Kalvari, on tion wish the Navy to ride even been at the forefront for pro- time Agency/representatives of December 14, 2017 by Prime higher waves in 2018 and happy viding Human Assistance and about 10 countries attended the Minister Narendra Modi. reading! Disaster Relief in India and Conclave. The event was inau- Two other events must be abroad. There have been a gurated by the Defence Minister mentioned of the year gone
EDITORIAL few anti-piracy operations con- Nirmala Sitharaman. by, first one being the Award of ducted successfully. India supplied two Water President s Colours to the Sub- The CNS, Admiral Sunil Jet Fast Patrol Vessels to Mau- marine Arm on the Occasion of Lanba led a delegation to Sin- ritius Coast Guard and the first Golden Jubilee of the Subma- gapore on May 15 to participate Advanced Offshore Patrol Ves- rine Arm by President Ram Nath in the International Maritime sel was handed over to Sri Kovind on December 8, 2017, Review to commemorate Sin- Lanka. Both were built by Goa at Visakhapatnam. The second gapore Navy s 50 years. There Shipyard Limited. There were one is Navika Sagar Parikarma Jayant BaranwaL were major exercises con- few ships commissioned for the being carried out by six naval Publisher & Editor-in-Chief
Government that is one from Ernst & young Defence Production Policy 2018 to pro- crore of 2017-18. Details are: engines, heavy and medium vehicles, other and the other Aerospace & Defence-KPMG. mote domestic production by public Army. A total allocation of `1,30,785.84 equipment, Rashtriya Rifles, NCC, land there are also serving members from HQiDs sector, private sector and MsMEs. crore is shown as BE which includes other works, etc. this is marginally up from and representative of DDP (Js rank or thanking the Finance Minister on these revenue expenditure like pay and allow- `25,205.71 crore allotted last year in the rE. Above). the committee is required to sub- path-breaking announcements, Defence ances and miscellaneous expenses of Air Force. A total of `35,755.62 crore mit their report by August this year. it is not Minister Nirmala sitharaman, said, these auxiliary forces, civilians, transportation, have been allocated which includes land, clear as what this committee will accom- are the first ever Defence Production Cor- stores, works, etc. this is up `1,25,127.14 construction works, aircraft and aero plish which was not possible from the serv- ridors being formed in the country. these crore from the rE of last year. engines, heavy and medium vehicles, other ing officers of the Government. Defence industry corridors will give a big Navy. A total of `20,208.40 crore is equipment and special projects. this is Defence Pensions. For Defence Pen- boost to defence production in the coun- shown which includes other revenue expen- marginally up from `33,555.62 crore allot- sion, which is over and above the out- try. she added that the announcement by diture and is up from the rE of `19,515.44 ted last year in the rE. lay mentioned above, an amount of shri Jaitley has paved the way for setting crore of last year. Navy. the overall allocation for the cap- `1,08,853.30 crore has been provided in BE up the first Defence Production Corridor Air Force. A total of `30116.87 crore ital budget is `20,848.62 crore which is mar- 2018-19. This is 26.60 per cent above the in tamil Nadu. this shall provide impetus has been allocated which includes other ginally up from last year s rE of `19,348.16 BE 2017-18 of `85,740 crore and 14.26 per to the defence production industry in the revenue expenditure and is up from the rE crore (which actually was pruned down cent over RE 2017-18 of `95,000 crore. country and in the region, in particular. of `28505.40 in 2017-18. to `18,327.64 last year) and the Navy has the Department of Defence Production Indian Coast Guard (ICG). `2091.42 been able to spend `13,970.44 till Decem- Border Infrastructure had recently conducted a major Defence crore for revenue and `2700 crore for capi- ber 31, 2017. thus the amount of about Arun Jaitley declared the government was industries Development Meet in chennai tal expenses have been allocated as com- `4,400 crore will possibly be surrendered. focusing on developing connectivity infra- in January 2018 with huge participation pared to `2148.97 crore for revenue and this current allocation includes sub alloca- structure in border areas to secure the from defence industries, including MsME `2200 crore for capital expenditure was tion for land (`70.71 crore), for construc- country s defences. rohtang tunnel has from chennai, Mysore, coimbatore, salem, shown in the revised estimates of 2017-18. tion works (`850 crore), for aircrafts and been completed to provide all weather con- tiruchirappalli and from other states as aero engines (`1900 crore which is much nectivity to the ladakh region. contract for well. the meet highlighted the prevailing Capital Budget less when compared to revised estimates construction of Zozila Pass tunnel of more ecosystem, albeit scattered, conducive for capital allocation under this head is of `3,046.56 crores for 2016-17), Heavy than 14 kilometer is progressing well. i now Defence Production in tamil Nadu. meant for all modernisation schemes and and Medium Vehicles (`30.95 crore), other propose to take up construction of tunnel `93,982.13 crore (about $14.7 billion) has equipment (`2,298.80 crore), for Naval Fleet under sela Pass (in Arunachal Pradesh), he Number Crunching been allocated as compared to `86,488.01 (`10,300.00 crore which is up from revised said. the approval for the construction of MoD. total allotment is `16,206.09 crore crore (about $13.5 billion) allocated in the estimates of last year of `9,222.70 crore) sela pass will give further impetus to the which is marginally up from `16,000.0 crore RE of 2017-18. Raksha Rajya Mantri Dr and Naval Dockyard/projects `2,000.00 Defence preparedness. under capital Out- from the rE of last year which includes rev- subhash Bhamre in a written reply to Bhu- crore which is marginally down from last lay on infrastructure: Works executed by enue/capital expenditure of various depart- baneswar Kalitain in rajya sabha on Febru- year s revised estimates of `2,002.49 crore. Border roads Development Board during ments which come directly under the MoD ary 5 stated that, an amount of `69,405.75 revised Estimates( rE) `2,708 crore was like secretariat General services, Border crore was allocated for Modernisation Analysis of Navy’s Capital Budget allocated and in the BE of the current Bud- road Development secretariat, india coast (capital Acquisition) under DsE in Budget the total capital budget for modernisa- get `2,785 crore has been allocated. Guard (icG), Defence Estates Organisation, Estimate 2017-18. Till December 31, 2017, tion (aircraft and aero-engines; heavy and Jammu and Kashmir light infantry, etc. the the expenditure under modernisation is medium vehicles; other equipment and Promotion of Defence Production Hindustan shipyard limited has also been `61,002.97 crore. this implies that the cap- naval fleet) comes to `17,083.00 crore. Arun Jaitley stated that, ever since the given interest subsidy of `4.84 crore. ital budget for 2017-18 was pruned down Naval Dockyards which repair the naval NDA Government has assumed office in by about `17,000 crore which is bound to ships have a separate budget of `2,000 2014, lot of emphasis has been given to Revenue Budget effect modernisation. He also mentioned crore. the modernisation allocation is modernising and enhancing the opera- the total BE allocation is `2,05,018.34 crore that an amount of `61,002.97 crore has required for the following projects: tional capability of the Defence Forces. which is more than the rE of `1,95,989.66 been spent till December 31, 2017, for Indigenous Aircraft Carrier Pro- A number of initiatives have been taken Modernisation (capital Acquisition) under gramme. construction of prestigious to develop and nurture intrinsic defence The RM has constituted a DSE, 2017-18. It is contradictory as in 37,500 tons indigenous Aircraft carrier production capability to make the Nation Demand Number 21 (Notes on Demands (iAc-1) is on track and is likely to be com- self-reliant for meeting our defence needs. 13 member Raksha Mantri’s for Grants, 2018-2019) the figure given for missioned by 2020. iAc-2 is also in the Ensuring adequate budgetary support will RE for 2017-2018 is `86,488.01 crore. pipeline and named iNs Vishal. be our priority. We have opened up private Advisory Committee on the current alocation is 33.1 per cent of Project 17A. this project is a follow investment in defence production includ- the total central Government Expenditure on up of Project 17 and comprises of seven ing liberalizing foreign direct investment. Ministry of Defence Capital capital Account. capital head covers com- stealth frigates with advanced features and We will take measures to develop two mitted liabilities and the remaining is for the technology upgrades. the construction defence industrial production corridors Projects (RMCOMP). The new schemes. Out of this, `83,292.62 crore is load will be shared between the Mazagon in the country. the Government will also specifically for the three services. This allo- Dock shipbuilders limited (MDl) for four bring out an industry friendly Defence Pro- decision has been taken to cation includes weapons, warlike platforms, ships and the Garden reach shipbuilders duction Policy 2018 to promote domestic expedite capital acquisitions land, construction works, Rashtriya Rifles, & Engineers (GrsE) limited for three ships. production by public sector, private sector Ncc, Naval Fleet, Naval Dock yards, Joint Project 15B. the Government has also and MsMEs. He announced the following to bolster armed forces staff, special projects and procurement of approved an additional four stealth ships steps for promotion of Defence Production: rolling s tock. it is not known as to how much of the Guided Missile Destroyer class, zz Measures to develop two Defence preparedness. will be pruned down from this allocation. designated as Project 15B and to be con- industrial corridors in the country. Army. A total of `2,66,288 crore has structed at MDl. the total cost is about
www.spsnavalforces.com zz Bringing out an industry friendly been allotted in BE for aircrafts and aero `30000 crore (about $4.7billion).
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Mine Countermeasures Vessel. the With about 80 per cent of surveillance of the long coast line of india Government had approved a `31,748 crore Defence Acquisition committee had cleared and in the indian Ocean region. “definitive five-year action programme” to nomination of Gsl for construction of 12 the capital allocation going Current status of construction in modernise the icG on August 17, 2017. McMV vessels in February 2015 in collabora- Indian Ship yards. there are about 34 sources said the newly approved action plan tion with south Korea