Is “Make in India” Making a Headway ?

Vol: VII Issue: 6 Nov-Dec 2019 Bi Monthly (INR 200) Is “Make in India” making a headway ?

Make-I R U R

DRDO DPSU OFB Private Sector r oBu t re G ec au ov S cra t. cy

Def Design Large MSMEs Large MSMEs SMEs Production SMEs ADVERTISE WITH US Defence ProAc Biz News EDITORIAL Advisory Board A Magazine by Dhanendra Kumar, IAS (Retd.) Defence ProAc Q-Tech Synergy Amit Cowshish, IDAS (Retd.) Defence Production and Acquisition BC Naik, IPS (Retd.)

Biz News By Maj. Gen. (Dr.) Bhupinder Yadav (Retd.) Editor & Publisher Maj. Gen. (Dr.) Bhupinder Yadav (Retd.) e start with good news and that is the export of defence The Only Magazine Deputy Editor equipment is steadily growing. The “Make in India” Ritika Behal Wprogramme for defence equipment is likely to be viable only, if there is a significant export component to it and to this end it Focused on needs boost in terms of incentives. To meet the projected requirements Sr. Designer of the Armed Forces in some segments, it has become imperative for the Rajendra Kumar Indian Defence Production Government to involve the private sector, which with its flexibility take the initiative and form the required JV with the foreign OEMs to tap the m

o Designed & Produced by growing market. The emergence of private companies in defence c . and Acquisition y Q-Tech Synergy, production and exports will see a new beginning. g r

e New Delhi n

y A high degree of Self Reliance on defence products is of vital s

h Defence ProAc Magazine Circulation Owned Published and Printed by importance for both strategic and economic reasons for any country. c e t Maj. Gen. (Dr.) Bhupinder Yadav (Retd.) However, India has not been able to achieve the same despite often q . 15/7, (GF), w Think Tank / Institutions repeated statements from power to be, with no tangible effect. Most of

w Sarav Priya Vihar, the reasons are known. The Govt sector in defence production remains w

New Delhi-110016 :

o MoD, DRDO, MHA, Allied Est. immune to any accountability and indifferent to the urgency and project t

n Published from specific requirements. o Indian Defence Industries (Pvt & Pub)

g U-8, LGF, Green Park Main, o

L Defence Services

New Delhi-110016 Innovation and technology is the mainstay of an effervescent defence -

d ecosystem of any country. The policy reforms and schemes by the a Foreign e Printed at Government to promote start-up and innovation for self reliance by R Companies/ Star Print O Bind, F-31, o Embassy enhancing private sector participation through Government funding are T Okhla Industrial Area, facing slow developments. This leaves one wondering why the 10% 10% 40% 32% 8% Phase-I, New Delhi-110020 Government has come out with so many categories under 'Make in India' flagship mission or for start-ups funding programmes? Website http://www.defproac.com About us— Review of DPP and DPM is an opportunity for far-reaching reforms for Defence ProAc - A Defence Production and Acquisition Biz News is a bi-monthly defence magazine covers development/news, improvement in the policy, procedure and processes on defence procurement. There have been so many committees in the past which issues, trends and policies pertaining to Indian defence production and acquisition. The publications provide a unique opportunity to All information in “DefenceProAc” is derived from sources we consider reliable. It is passed on to our readers rendered very good suggestions. However the decision-making OEM and Indian companies to project their capabilities through Ad/Advertorial at the best rates. we assure value for money for your without any responsibility on our part. machinery has been the bane of defence procurement all along and sent company through our continued support based on mutual relationship. Opinions / views expressed by third parties in our abstract and interviews are not necessarily shared by us. all good suggestions for a toss. Improvement in the policy, procedure Contents appearing in “DefenceProAc” cannot be and processes will help, but the ultimate test of their efficacy will be the Clients— reproduced in whole or in part(s) without prior impact it has on decision-making. For more information permission. & queries, please contact: The publisher assumes no responsibility for material lost or damaged in transit. The Defence Technology and Trade Initiative (DTTI) between US and Q-Tech Synergy All advertisement must comply with the Indian India was to expedite the scope of cooperation on defence technology, Advertisements Code. The publisher will not be liable for but the pace and scope of cooperation has been obstructed by differing U-8 (LGF) Green Park, any loss caused by any delay in publication, error or bureaucratic processes and legal requirements. India and US need to New Delhi - 110016 failure of advertisement to appear. All disputes are subject to the exclusive jurisdiction of work to expedite the process in order to make it meaningful. Tel:+91 11 26511792, competent courts and forums in Delhi / New Delhi only. Fax: +91 11 40584289 Readers are welcome to send their feedback at [email protected], Defence ProAc Biz News (64) [email protected], [email protected], May-June 2015 [email protected] [email protected] (3) Defence ProAc Biz News Nov-Dec 2019 ADVERTISE WITH US Defence ProAc Biz News EDITORIAL Advisory Board A Magazine by Dhanendra Kumar, IAS (Retd.) Defence ProAc Q-Tech Synergy Amit Cowshish, IDAS (Retd.) Defence Production and Acquisition BC Naik, IPS (Retd.)

e New Delhi n y A high degree of Self Reliance on defence products is of vital s h Defence ProAc Magazine Circulation Owned Published and Printed by importance for both strategic and economic reasons for any country. c e t Maj. Gen. (Dr.) Bhupinder Yadav (Retd.) However, India has not been able to achieve the same despite often q . 15/7, (GF), w Think Tank / Institutions repeated statements from power to be, with no tangible effect. Most of

w Sarav Priya Vihar, the reasons are known. The Govt sector in defence production remains w

New Delhi-110016 : o MoD, DRDO, MHA, Allied Est. immune to any accountability and indifferent to the urgency and project t

n Published from specific requirements. o Indian Defence Industries (Pvt & Pub)

g U-8, LGF, Green Park Main, o

L Defence Services

New Delhi-110016 Innovation and technology is the mainstay of an effervescent defence - d ecosystem of any country. The policy reforms and schemes by the a Foreign e Printed at Government to promote start-up and innovation for self reliance by R Companies/ Star Print O Bind, F-31, o Embassy enhancing private sector participation through Government funding are T Okhla Industrial Area, facing slow developments. This leaves one wondering why the 10% 10% 40% 32% 8% Phase-I, New Delhi-110020 Government has come out with so many categories under 'Make in India' flagship mission or for start-ups funding programmes? Website http://www.defproac.com About us— Review of DPP and DPM is an opportunity for far-reaching reforms for Defence ProAc - A Defence Production and Acquisition Biz News is a bi-monthly defence magazine covers development/news, improvement in the policy, procedure and processes on defence procurement. There have been so many committees in the past which issues, trends and policies pertaining to Indian defence production and acquisition. The publications provide a unique opportunity to All information in “DefenceProAc” is derived from sources we consider reliable. It is passed on to our readers rendered very good suggestions. However the decision-making OEM and Indian companies to project their capabilities through Ad/Advertorial at the best rates. we assure value for money for your without any responsibility on our part. machinery has been the bane of defence procurement all along and sent company through our continued support based on mutual relationship. Opinions / views expressed by third parties in our abstract and interviews are not necessarily shared by us. all good suggestions for a toss. Improvement in the policy, procedure Contents appearing in “DefenceProAc” cannot be and processes will help, but the ultimate test of their efficacy will be the Clients— reproduced in whole or in part(s) without prior impact it has on decision-making. For more information permission. & queries, please contact: The publisher assumes no responsibility for material lost or damaged in transit. The Defence Technology and Trade Initiative (DTTI) between US and Q-Tech Synergy All advertisement must comply with the Indian India was to expedite the scope of cooperation on defence technology, Advertisements Code. The publisher will not be liable for but the pace and scope of cooperation has been obstructed by differing U-8 (LGF) Green Park, any loss caused by any delay in publication, error or bureaucratic processes and legal requirements. India and US need to New Delhi - 110016 failure of advertisement to appear. All disputes are subject to the exclusive jurisdiction of work to expedite the process in order to make it meaningful. Tel:+91 11 26511792, competent courts and forums in Delhi / New Delhi only. Fax: +91 11 40584289 Readers are welcome to send their feedback at [email protected], Defence ProAc Biz News (64) [email protected], [email protected], May-June 2015 [email protected] [email protected] (3) Defence ProAc Biz News Nov-Dec 2019 SUBSCRIBE OUR WEEKLY E-NEWSLETTER INDIAN DEFENCE PRODUCTION & ACQUISITION NEWSLETTER Contents LATEST DEFENCE INDUSTRY NEWS AND TENDERS REVIEW OF DPP AND DPM: AN PAGE ADOPTION OF NICHE PAGE OPPORTUNITY FOR FAR- TECHNOLOGY: NEED OF THE HOUR REACHING REFORMS 25 43 NEWS TENDER Improvement in the policy, procedure and New technologies will determine how future processes on defence procurement will help, but warfare are fought and won. Need of the hour is the the tardy decision-making is real bottleneck, identification and development of niche which is beyond purview of the review committee. technologies which should not only be need -based Latest News Latest Tenders but affordable as well. START-UPS AND INNOVATION PAGE PAGE on Indian Defence on Armed Force's IN INDIAN DEFENCE SECTOR: MILITARY HELICOPTER Industry Covering Requirements 30 PROGRAMMES NEEDS A PUSH 45 BEGINNING OF A NEW ERA? ARMED FORCE'S REQUIREMENTS INDIAN ARMY The future of defence ecosystem is technological The existing fleet of the helicopters with the Indian innovation and there is surely a huge demand for Armed Forces is facing issues of deficiency in the POLICY INDIAN NAVY such start-ups.The Author analyses the inventory coupled with poor age profile of Government's initiatives in this regard. helicopters which impacts on effective operations. PRODUCTION INDIAN AIR FORCE PAGE Though procurement programmes have been DEFENCE EXPORT: GAINING undertaken but these need to be fast tracked. INDUSTRY PARAMILITARY FORCES MOMENTUM 34 TECHNOLOGY OFB SELF RELIANCE: PAGE A vibrant domestic defence manufacturing will DRDO build strategic domestic depth while also enhance AN ILLUSIVE GOAL? 48 the export potential for economic advantage, DEFENCE PSUs further accentuating the job creation. A high degree of Self Reliance on defence products PAGE is of vital importance for both strategic and OGEL FOR DEFENCE PRODUCTS: economic reasons for any country. However, India “INDIAN DEFENCE PRODUCTION & ACQUISITION NEWSLETTER”, the soft copy of which is widely circulated SOME ISSUES 37 has not been able to achieve the same despite often repeated statements from power to be, with no to MoD and defence related orgasnisations. This weekly publication will add value and keep you updated The notifications issued likely to have positive tangibleR E effect.G U L A R F E AT U R E S about latest defence happenings and recently published RFIs/RFPs/ tenders during that week. The cost for impact, however certain features of the scheme could create hurdles and needs to be addressed by PAGE one year subscription is INR 10,000/- + (GST 18%). MoD. The impact will depend though on how the ARMY MAKE-II PROJECTS 2019 provisions are implemented. PAGE 50 TANGIBLE RESULTS UNDER DTTI MSMEs across the globe have in many ways been 38 the drivers of change and innovative solutions. The role of DTTI in developing new areas of Make-II projects are ideal for engaging the Industry, technology cooperation in the defence sector MSMEs and start-ups into the defence through co-development and co-production manufacturing ecosystem. assumes significance. R E G U L A R F E AT U R E S PAGE To Subscribe - Contact NOMINATION PREVAILS DESPITE REGULAR FEATURES Q-Tech Syner y RHETORIC 40 Q-Tech Synergy @ Nomination of DRDO by DAC for designing and RFI/RFP P-06 U-8 (LGF) Green Park Main developing an indigenous Light Weight Electronic Warfare System for Mountains, despite evidence News P-10 New Delhi-110016 Q of development of such system by Private sector is Appointments P-24 Tel: 011-26511792 not in tune with Government declared policy. The Defence ProAc Author analyses this issue. Email: [email protected] [email protected] Defence Production & Acquisition Defence ProAc Biz News (4) Biz News Nov-Dec 2019 ARMED FORCE'S REQUIREMENTS POLICY PRODUCTION INDUSTRY TECHNOLOGY

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17-Sep-2019 Indigenization of 9.01.02.118 restrictor flow for MI-17 series helicopters for Indian Air Force 14-Nov-2019 Visakhapatnam, India by Sea Lift Vesse for Indian Navy 17-Sep-2019 Indigenization of 7271-0194 bearing sleeve for MI-17 helicopter for Indian Air Force 14-Nov-2019 25-Sep-2019 Setting up of big data analytics and artificial intelligence infrastructure at INS Valsura for 15-Oct-2019 17-Sep-2019 Indigenization OF 1X12.2 GOST 397-79 I/L 0800397603 PIN COTTER FOR MI-17 helicopter for 14-Nov-2019 Indian Navy Indian Air Force 25-Sep-2019 Integrated Surveillance Access Control Systems for Indian Army 09-Oct-2019 20-Sep-2019 Channel right for 5.56mm. INSAS rifle as per RFI drawing and QAP; Issued by DDP 16-Oct-2019 25-Sep-2019 Modification Kit for Rifle AK 47 Out of ACSFP for Indian Army 25-Oct-2019 20-Sep-2019 IC of Housing Lever Sear for 0.32 Pistol; Issued by Rifle Factory, Ishapore 18-Oct-2019 25-Sep-2019 Raw Material for Development of Rocket Motor Casing (MDN-250); issued by DRDO 02-Oct-2019 24-Sep-2019 Expression of Interest - Overhauling/Revalidation of ARV WZT 3 Aggregates; Issued by DDP 09-Oct-2019 25-Sep-2019 Guard Trigger for Rifle 7.62mm SSG M-69 for BSF 16-Oct-2019 24-Sep-2019 Manufacture of Mine Anti Personnel NMM-14 with Fuze Integral and Detonator for Indian Army 22-Oct-2019 25-Sep-2019 Grip Machine Gun and Handle Carrying for LMG 5.56mm INSAS for BSF 16-Oct-2019 by Indian Private Vendors for Indian Army 25-Sep-2019 Accessories for SMG 9mm Beretta for BSF 16-Oct-2019 26-Sep-2019 Investment Casting for Slide Retracting for Rifle 5.56 mm INSAS; Issued by Rifle Factory Ishapore 21-Oct-2019 27-Sep-2019 FUZE ISD VOG-17(F) for AGS-17 AMMN; Issued by Ordnance Factory Chanda 28-Oct-2019 26-Sep-2019 Spares of BMP-II/IIK/CMT/AAT for Indian Army 16-Oct-2019 30-Sep-2019 Outline Trade Proc Plan (OTPP) OS DTE (OS-ARMT)- 2020-2021 for Indian Army 31-Dec-2019 26-Sep-2019 Spares of ARV VT-72B, FRT WZT-2, T-90, T-72, ARV-WZT-3, BMP-I/II/IIK/CMT/AAT for Indian Army 16-Oct-2019 01-Oct-2019 Procurement of item Man Carrying Parachute and Supply Dropping Parachute for Indian Army 15-Oct-2019 26-Sep-2019 Fire Hole Drilling machines for manufacture of Inter-stage component of 9 mm Cartridge cases 08-Nov-2019 04-Oct-2019 04 Types of Items of T-72/T-90 Project; Issued by DPP 31-Dec-2019 for Ammunition Factory Khadki 07-Oct-2019 Supply of Monocular Helmet Mounted Night Sight for Indian Army 18-Oct-2019 26-Sep-2019 SFDR Rocket Motor Test Bed; Issued by DRDO 14-Oct-2019 14-Oct-2019 Forging of Slide to Drg. No. RFI SK-9073 or GSF Drg. No. F-2326FPR 0.32" Pistol; Issued by 04-Nov-2019 27-Sep-2019 Aircraft Engine Spares 15 Lines; Issued by DRDO 22-Oct-2019 Gun & Shell Factory, Cossipore 27-Sep-2019 Shell Body 126 mm for BSF 08-Oct-2019 16-Oct-2019 Outline Trade Proc Plan (OTPP) - 2020-21 for Indian Army 25-Nov-2019 27-Sep-2019 Focusing and Resonator Optics; Issued by DRDO 14-Oct-2019 16-Oct-2019 Indigenisation of 20-1054-018, Device Locking for AN-32 Aircraft for Indian Air Force 16-Dec-2019 27-Sep-2019 Aircraft Engine Spares 15 Lines; issued by DRDO 22-Oct-2019 18-Oct-2019 Outline Trade Procurement Plan (OTPP) 2019-20 (COD, Kanpur) for Indian Army 04-Nov-2019 27-Sep-2019 Development Testing and Supply of 1500 HP Automatic Transmission; Issued by DRDO 26-Nov-2019 29-Oct-2019 EOI- Indigenous Development of Aircraft Spare for Indian Air Force 19-Nov-2019 28-Sep-2019 Gauges For Exploder CE OF 1000 LBS Bomb; Issued by Ordnance Factory Badmal Estate 21-Oct-2019 29-Oct-2019 EOI- Indigenous Development of Metallic Components for Indian Air Force 19-Nov-2019 28-Sep-2019 Fuze ISD (FILLED) for 30mm Grenade VOG-17 AGS-17; Issued by Ordnance Factory Chandrapur 28-Oct-2019 31-Oct-2019 EOI - Robotics Surveillance Platform for Indian Army 31-Dec-2019 30-Sep-2019 Supply of Bullet Resistant Jackets; issued by MIDHANI 17-Oct-2019 01-Oct-2019 Supply of Surveillence System for Indian Army 12-Oct-2019 01-Oct-2019 Spares For MI-17 Aircraft for Indian Air Force 25-Nov-2019 REQUEST FOR PROPOSAL (RFP) 01-Oct-2019 GPU AN 32 Spare for Indian Air Force 14-Oct-2019 01-Oct-2019 F/Comp. of Lever Change of 5.56mm INSAS Rifle; Issued by Rifle Factory, Ishapore 05-Oct-2019 Issue Date Details Response Date 03-Oct-2019 Extractor S/A Cartridge for 5.56mm INSAS Rifle; issued by Rifle Factory, Ishapore 17-Oct-2019 03-Oct-2019 Rear Sight Cursor MAG 7.62; Issued by Small Arms Factory, Kanpur 25-Oct-2019 19-Sep-2019 Items Required To MFR of Belt Amn 7.62 mm Non-Disintegrating Metallic for Indian Army 10-Oct-2019 03-Oct-2019 Fore Sight Housing MAG 7.62mm; Issued by Small Arms Factory, Kanpur 25-Oct-2019 19-Sep-2019 Oiler Hand No1 MK1 Mag Gun 7.62; issued by Small Arms Factory 18-Oct-2019 03-Oct-2019 Procurement of 09 By Type BDS Spares for SKG Aircraft for Indian Air Force 31-Oct-2019 19-Sep-2019 Supply of dual cartridges respirator 3m- 6000 and cartridges for Indian Air Force 01-Oct-2019 04-Oct-2019 Installation and Test OBOGS Set Up For Rafale Aircraft for Indian Air Force 04-Nov-2019 20-Sep-2019 Indigenous development of PIN cotter of nose landing shock strut of Pilatus aircraft for Indian 19-Oct-2019 04-Oct-2019 Procurement of Fanless Embedded Industrial Grade System for Indian Navy 30-Oct-2019 Air Force 04-Oct-2019 Head Turning and Mouth Reamering machines for manufacture of Interstage component 15-Nov-2019 21-Sep-2019 Vehicle Mounted I com A-120VHF Air Brand for Indian Air Force 30-Sep-2019 of 9 mm Cartridge cases; Issued by Ammunition Factory Khadki 21-Sep-2019 Supply of Radar Simulation Software for Marine Environment; issued by DRDO 07-Oct-2019 04-Oct-2019 Hand Spike Assy To Drg No M2 BOF 4023835; Issued by Gun Carriage Factory Jabalpur 12-Nov-2019 23-Sep-2019 Procurement and Installation of Special Power Supply EACDC for Rafale Aircraft for Indian Air Force 25-Oct-2019 04-Oct-2019 Supply of Tatra 8x8 vehicle spares for Indian Army 25-Oct-2019 23-Sep-2019 Development of Aviation Items of AN-32 Aircraft for Indian Air Force 04-Oct-2019 05-Oct-2019 Supply of EPD Fuze PCBS (PCB-1&PCB-II) Assembled With All Electronic Components Issued by OFB 25-Oct-2019 23-Sep-2019 Design and Development of Radar Interface Card with GPS Chip; issued by DRDO 14-Oct-2019 05-Oct-2019 Punch Ammunition 3p 4p 5p No. 1; Issued by Ammunition Factory Khadki 22-Oct-2019 24-Sep-2019 Impact Delay Fuze; issued by DRDO 09-Oct-2019 07-Oct-2019 Development of Modulator Unit (U-47) OF P-18 Radar System for Indian Air Force 31-Oct-2019 24-Sep-2019 Spare Parts for Microlight Aircraft for Indian Air Force 30-Sep-2019 09-Oct-2019 Purchase of Spares of BMP-I/II/IIK/CMT/AAT/NBCRV for Indian Army 29-Oct-2019 24-Sep-2019 Binoculars, Body Protectors; Issued by Cochin Shipyard Limited 05-Oct-2019 09-Oct-2019 Bullet Resistant Jacket Level 4 and 5 for CRPF 04-Dec-2019 25-Sep-2019 Transportation of EKM Submarine from Severodvinsk, Russia / Alternate Port at Russia to 11-Oct-2019 10-Oct-2019 Supply Ground Control Station for Rustom- II UAV; Issued by DRDO 24-Oct-2019

Defence ProAc Biz News (6) (7) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 RFI/RFP

REQUEST FOR INFORMATION (RFI) REQUEST FOR PROPOSAL (RFP)

Issue Date Details Response Date Issue Date Details Response Date

Defence ProAc Biz News (6) (7) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 RFI/RFP

10-Oct-2019 Bullet proof harness Jacket with shoulder pad for BSF 05-Nov-2019 24-Oct-2019 I/C of Housing Sight Rear for Rifle 5.56mm INSAS; Issued by Rifle Factory, Ishapur 11-Nov-2019 10-Oct-2019 IL-Series Spares for Indian Air Force 03-Dec-2019 24-Oct-2019 MoD Composite Armour (RHS&LHS); Issued by Vehicle Factory, Jabalpur 14-Nov-2019 10-Oct-2019 Spares For Pilatus Aircraft for Indian Air Force 22-Oct-2019 25-Oct-2019 Hammer (MIM) for.32 Inch Pistol; issued by Rifle Factory, Ishapore 11-Nov-2019 11-Oct-2019 Bitumen Special Ammunition for Ordnance Factory Khamaria 01-Nov-2019 25-Oct-2019 Procurement of Spares for MI-17V5 Aircraft for Indian Air Force 18-Dec-2019 11-Oct-2019 Tadiran Radio Sets [VRC-1465M1-80/A-(5/50W)-Gun Tank T-72; Issued by Heavy Vehicles 23-Oct-2019 25-Oct-2019 Procurement of Spare Parts for .177 Air Pistol Morini 162EI for Indian Army 06-Nov-2019 Factory (HVF), Avadi 25-Oct-2019 Hand Guard Top for 7.62mm Assault Rifle (Ghaatak); Issued by Rifle Factory, Ishapore 15-Nov-2019 11-Oct-2019 Delay Fuze Observation Tool for DDP 29-Oct-2019 22-Oct-2019 Magazine Cover Pipe for 12 Bore PAG; Issued by Rifle Factory Ishapore 11-Nov-2019 14-Oct-2019 Supply of Cartg Trg Empty Assly for 120mm M.B etc; Issued by Ammunition Factory, Kirkee 25-Oct-2019 26-Oct-2019 Supply of Hand Held uncooled thermal imager for 5CGOPVs issued by Goa Shipyard Limited 04-Nov-2019 14-Oct-2019 Bullet Assembly machine for the manufacture of Bullets for 9 mm Ammunition; Issued by 21-Oct-2019 28-Oct-2019 Drum Magazine for Tavor Rifle for Garud Flight for Indian Air Force 14-Nov-2019 Ammunition Factory Kirkee 28-Oct-2019 Procurement of Spares for MI-17V5 Aircraft for Indian Air Force 18-Dec-2019 15-Oct-2019 Chest Rifle 5.56mm (Wooden) Capacity - 10 Rifles With accessories to DS CAT.NO.1005-560403 21-Oct-2019 28-Oct-2019 Procurement of Main Engine Spares for ICGS Ayush for Indian Coast Guard 18-Nov-2019 ( SHT.-1 & SHT.-2)(Latest DC- 26483-SA FOR SHT.-1, & DC-26197-SA For SHT.-2) For Rifle 5.56; 28-Oct-2019 Manufacturing and Supply of 600 hp Engine Modules issued by DRDO 10-Dec-2019 Issued by Rifle Factory, Ishapur 29-Oct-2019 Procurement of Explosive Detection Kit for National Security Guard 18-Nov-2019 15-Oct-2019 10 nos. Spares for Main Engine for Indian Coast Guard 21-Oct-2019 29-Oct-2019 Gauges for 30mm HE/I AK 630 Ammn issued by Factory Ordnance Factory, Bolangir 21-Nov-2019 15-Oct-2019 Spares for MI-17 Aircraft for Indian Air Force 10-Dec-2019 30-Oct-2019 Procurement of Spares for SU-30 Aircraft for Indian Air Force 27-Jan-2020 15-Oct-2019 KP and Module LRU of SAP EW for Su-30 MKI Aircraft for Indian Air Force 14-Jan-2020 30-Oct-2019 08 Lane Weapon Simulator (5.56mm INSAS-04 NOS, AK-47 02 NOS, 09 mm Carbine-01 No. 20-Nov-2019 15-Oct-2019 Flight valdation and of TAPAS UAV Aero database using System Identification Techniques; 05-Nov-2019 and Pistol Auto 09mm- 01 NO) Wireless for Indo-Tibetan Border Police Force Issued by DRDO 30-Oct-2019 Manufacture and supply of UAV Modules issued by DRDO 19-Nov-2019 15-Oct-2019 Procurement of Bullet Resistant Shield for CISF 19-Nov-2019 30-Oct-2019 Manufacturing and Supply of Airworthy MLG Mechanism Components issued by DRDO 19-Nov-2019 15-Oct-2019 01 X .177 Caliber Air Rifle Anshutz, 01 x Air Rifle Walther (Anatomic) and 01 x Air Pistol Morini 21-Oct-2019 31-Oct-2019 Tooling for UAV wing Manufacturing and 1 Item issued by DRDO 21-Nov-2019 162 E1 for Indian Army 31-Oct-2019 Rustom-1 CSA along with mating connector and 02 Items issued by DRDO 21-Nov-2019 16-Oct-2019 Supply and Fabrication of Bullet Resistant Jackets Level V; Issued by MIDHANI 24-Oct-2019 01-Nov-2019 Supply of 49 Items of Spares of Rif 7.62mm Dragunov Sniper for Indian Army 31-Dec-2019 16-Oct-2019 Partial Armouring Fabrication Into Bullet Proofing of Tata 407 For CRPF 05-Nov-2019 01-Nov-2019 Procurement of Spares for Mirage Aircraft for Indian Air Force 19-Dec-2019 16-Oct-2019 AN-32 Spares for Indian Air Force 29-Oct-2019 05-Nov-2019 Astra Rocket Motor Insulation System Motor and Nozzle issued by DRDO 25-Nov-2019 16-Oct-2019 SRG 'NOGO'TO DRG.MG-00715/A Pinaka; Issued by Ordnance Factory, Kanpur 06-Nov-2019 05-Nov-2019 Missile Simulator Unit and Missile Simulator Control Unit issued by DRDO 25-Nov-2019 17-Oct-2019 Spares for Assy Fuel Tanks of Arjun MBT MK - I; Issued by DRDO 12-Nov-2019 06-Nov-2019 Composite Armour (RHS) & (LHS) issued by Vehicle Factory, Jabalpur 27-Nov-2019 17-Oct-2019 Holder as per drg no. D-4078830 Rev B for Dhanush Ord; Issued by Ordnance Factory Kanpur 06-Nov-2019 06-Nov-2019 Purchase of Spares of Engine UTD-20, BMP-I/II/IIK/CMT/AAT AND ARV VT-72B, T-90 26-Nov-2019 17-Oct-2019 Arm to drg no. D-4081495 Revision A for Dhanush; Issued by Ordnance Factory Kanpur 06-Nov-2019 T-72, ARV-WZT-3 for Indian Army 17-Oct-2019 Matching ammunition, grenades-Round 40x46 mm HE for CRPF 03-Dec-2019 07-Nov-2019 Bullet Proof Jackets Level III and Bullet Resistant Helmets issued by DRDO 16-Dec-2019 17-Oct-2019 40 mm Under Barrel Grenade Launchers (UBGL) capable to mount on 7.62 x 39 mm A.K. 03-Dec-2019 07-Nov-2019 Proc of Cross Section Models of Missile for Indian Army 29-Nov-2019 Series Rifles with Accessories, Gauges Spare Parts for UBGL as per Manufacturer Recommended 07-Nov-2019 Fabrication/bullet proofing for CRPF 26-Nov-2019 List of Spares for CRPF 07-Nov-2019 Body (IC) of Revolver MK-III issued by Small Arms Factory, Kanpur 19-Nov-2019 17-Oct-2019 Arm as per Drg no. D-4083347 Rev A for Dhanush; Issued by Ordnance Factory Kanpur 06-Nov-2019 08-Nov-2019 Spare Parts For Kraz for Indian Army 15-Nov-2019 17-Oct-2019 Main Engine Spares for ICGS Ayush for Indian Coast Guard 30-Oct-2019 08-Nov-2019 Purchase of Spares of BMP-I/II/IIK/AAT/CMT for Indian Army 28-Nov-2019 22-Oct-2019 Magazine Cover Pipe for 12 Bore PAG; issued by Rifle Factory Ishapore 11-Nov-2019 08-Nov-2019 Purchase of Spares of ARV-VT-72B, T-90, T-72, ARV-WZT-3, ENGINE UTD-20 for Indian Army 28-Nov-2019 22-Oct-2019 Procurement of AN-32 Spares for Indian Air Force 05-Nov-2019 08-Nov-2019 Procurement of Spares for IL-78 Aircraft for Indian Air Force 31-Dec-2019 23-Oct-2019 Lug Bayonet for 5.56mm. INSAS for Rifle Factory, Isapore 30-Oct-2019 08-Nov-2019 Procurement of Spares for AN-32 Aircraft for Indian Air Force 31-Dec-2019 23-Oct-2019 F/COMP of Lever Change of 5.56mm. INSAS Rifle; Issued by Rifle Factory, Ishapore 30-Oct-2019 08-Nov-2019 Procurement of Aviation Items for Indian Air Force 22-Nov-2019 23-Oct-2019 F/COMP. of Retainer of 5.56mm. INSAS; Issued by Rifle Factory, Ishapore 30-Oct-2019 08-Nov-2019 Development of Micro Switch for Launcher of Pechora System for Indian Air Force 27-Nov-2019 23-Oct-2019 Hydro Test for Co2 Bullet for Equipment Division; Issued by BEML 08-Nov-2019 08-Nov-2019 Resin Based CCC for 120 FSAPDS MKII issued by Ordnance Factory, Chanda 12-Dec-2019 23-Oct-2019 Procurement of 10 Nos. Main Engine Spares for Indian Coast Guard 29-Oct-2019 23-Oct-2019 Procurement of KP and MOU LRU of SAP EW for SU-30 Aircraft for Indian Air Force 06-Nov-2019 24-Oct-2019 Manufacture and supply of Ashok Leyland Medium Ambulance 4x4 for Indian Army 14-Nov-2019 24-Oct-2019 Modified Composite Armour RHS and LHS for Upgraded MPV 4x4 Drg No 2687 57 31; issued by 14-Nov-2019 Vehicle Factory Jabalpur

Defence ProAc Biz News (8) (9) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 RFI/RFP

Defence ProAc Biz News (8) (9) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

POLICY NEWS IDEEA launched DAC Meet in Oct 19 The Army chief launched the Indigenous Defence Equipment The Defence Acquisition Council (DAC) accorded approval for No Custom Duty, GST on Defence Imports Incentives for Start ups Exporters Association (IDEEA) with the objective of making Capital Procurement over Rs 3300 Crores for three indigenously The Indian Government has exempted customs duty and Goods The Government said to have notified special exceptions in its India one of the top three defence equipment exporters in the designed and developed equipment manufactured by the Indian and Services Tax (GST) on imports of specified defence goods procurement policy to promote startups and will encourage them world. Conceived as a non-profit association, IDDEA will industry. Two projects under the 'Make-II' Category are:- to bid for contracts valued less than Rs 150 Crores without the not being manufactured indigenously until 2024. With such effectively be a nodal agency for receiving and processing hThird generation Anti-Tank burden of providing financial credentials if they can prove exemption applicable wef 01 Oct 2019 around Rs 25000 Crores export inquiries from all prospective customers across the world. Guided Missiles (ATGM) to technical expertise. Besides, the Government has also come up The association will include all leading defence equipment provide 'Fire and Forget' and with Defence Innovation Fund (DIF) under which a maximum manufacturers. It will also provide a platform for defence “Top Attack” capabilities to corpus of Rs 100 Crores is allocated to identify, promote and exporters, particularly MSMEs (micro, small and medium the troops in an armoured fund research and innovation in the private sector. In addition, enterprises), to raise their concerns and to reach customers. battle. there is annual Defence India Startup challenge (DISC) that throws out problem statements and awards winner who come hThe Auxiliary Power Units back with innovative solutions. (APUs) for the T-72 and T-90 Tanks to enable incorporation of various upgrades to Fire India, US hold 9th DTTI meet will be saved due to waiver of customs duty while GST Control System and Night During the 9th meeting of India-US Defence Technology and exemptions will augment the defence budget by Rs 35000 Fighting capabilities of the Trade Initiative (DTTI), a joint Statement of Intent (SoI) that Crores over the next five years. Tanks. formalized their intention to co-develop a range of cutting-edge The third project is on discrete Electronic Warfare (EW) systems war fighting technologies and systems has been signed on 24 Oct for the mountain and High Altitude terrain, to be developed by OFB Corporatization 2019. The projects include three short-term projects, two mid- DRDO and manufactured by design cum production partner The Defence Ministry has set up a high-level committee to term projects and two long-term projects for co development. MAKE IN INDIA from the Indian industry. address the concerns raised by workers federations on The short -term projects are:- safeguards to protect the interests of employees in terms of hAir-launched, small UAS. OGELs for export of Defence Parts wages, health facilities and other IDEEA is directed towards achieving the Defence Ministry's hLightweight small arms technology project building rifles, target of exporting defence products worth of USD 5 Billion (Rs The MoD has issued two Open General Export Licences service matters due to converting (OGELs) for export of certain parts and components and intra- OFB into a public sector entity. The carbines and machine guns and Ammunition from 35000 Crores) annually by 2025. The biggest recipient of Indian lightweight polymer cast material. defence exports is currently US, which has imported nearly Rs company transfer of technology to select countries including Terms of Reference (ToR) of the Belgium, France, Germany, Japan, South Africa, Spain, committee is to lay road-map for hIntelligence, surveillance, targeting and reconnaissance 5000 Crores worth of equipment followed by Israel and European Union. Sweden, UK, USA, Canada, Italy, Poland and Mexico. The increasing the annual turnover of the (ISTAR) a command and control software that enables items permitted under OGEL includes components of proposed entity to Rs 30000 Crores coherent battlefield command. and look in to concerns regarding The mid-term projects are:- DAC to Consider Additional P8I “future orders” for the proposed new hMaritime domain awareness is termed “Sea Link Advanced The Defence Acquisition Council (DAC) will be considering entity. It is also to assess the viability Analysis. purchase of additional 10 P8I maritime reconnaissance aircraft of some of the factories as public for the Indian Navy from US based manufacturer Boeing. The Virtual augmented mixed reality for aircraft maintenance sector entities and assess the requirement of budgetary support h deal worth USD 3 Billion is a follow on order. The contract is (VAMRAM). for the salaries of OFB employees. expected to be signed in 2020 at the earliest with the first aircraft The long-term projects are:- FDI Up to 74% in Defence ? hTerrain-shaping obstacles increasing the lethality of India allows up to 49% Foreign Direct Investment (FDI) in traditional obstacles such as mines and barbed wire. defence through the automatic route and it needs Government hCounter UAS rocket artillery and mortar” or CU-RAM. approval to go beyond the cap. There are indications to raise the Apart from the above there are other areas as well in which both ammunition and fuse setting device without energetic and limit for automatic clearance to 74% along with relaxation in the nations have cooperated includes “Aircraft carrier explosive material, firing control and related alerting and other conditions. Some of the other issues under consideration technology cooperation (ACTC), co-development of Raven warning equipment and related systems and body protective for the ease of doing business are: micro-UAS; mission-specific interiors for C-130J Super items. The Transfer of Technology (ToT) to the countries is subject to the condition that the export is an intra-company hThe FDI approval process can also be subsumed in the Hercules aircraft; a mobile electric-hybrid power source, and transfer from an Indian subsidiary (applicant exporter) to its licensing process. protective clothing for soldiers in a nuclear contaminated battlefield have not made any headway. The collaboration on foreign parent company to subsidiaries of the foreign parent Allowing a group company to discharge offsets obligations. h developing high-performance, aerospace jet engines has now likely to be delivered to India by 2023. The P8I is a long-range company. The application for grant of OGEL will be considered hEase the export policy for foreign defence manufacturers been scrapped. (more than 1,200 nautical miles) aircraft for surveillance and by Department of Defence Production (DPP) on a case-to-case with base in India. also anti-submarine operations. basis.

Defence ProAc Biz News (10) (11) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

DEVELOPMENT NEWS FICV Development Increasing Defence Import from US Futuristic Infantry Combat Vehicle (FICV) project was floated Russians have been the major suppliers of defence platforms to Defence Sector Growth Cyient signs MoU with QinetiQ under 'Make' Procedure (Government Funded) by the Indian India with around 70 percent of the defence imports being from The current size of the Indian economy is around USD 2.7 Cyient, an engineering and technology solutions company, has Army at estimated cost of USD 8 Billion. Indian industry players Russia almost every year. However, the equations are changing Trillion and goal is to make it to USD 5 Trillion by 2024 and signed a Memorandum of Understanding (MoU) with UK-based such as Mahindra & Mahindra, Titagarh Wagons, Tatas, DRDO now, as India-US defence trade has touched USD 8 Billion. India subsequently to USD 10 Trillion by 2030-32. India is also defence technology firm, QinetiQ Target Systems (QTS), to and Reliance Defense etc. responded to the proposal. The is in the process of importing 15 multi-mission heavy-lift CH-47 aiming to achieve a turnover of USD 26 Billion in the defence foreign Original Equipment Manufacturers (OEM) had also Chinook transport helicopters and also 22 AH 64E (I) Apache sector by 2025. Achieving the target would require an evinced interest in participating in the project including Russian investment of Approx Rs 70000 Crores and could create up to firms under the umbrella of Rosoboronexport, US-based three million jobs. Another goal is to clock exports worth USD 5 General Dynamic and Germany's Rheinmetall etc. Initial Billion Crores by 2025 from present defence exports of USD 1.5 investment to develop two prototypes is estimated to be around Billion in 2018-19, a seven-fold increase over the figure two Rs 800 Crores, which now the Government wants the industry to years ago. Indian defence industry output is approx worth Rs bear. It is understood that MoD and Army, have not been able to 80000 Crores, of which the private sector production is approx agree on common ground. Rs 16000 Crores. The public sector produced equipment worth Rs 64000 Crores, of which 40 percent work was outsourced to the private sector. Indian defence requirement is projected to be offer avionics products for its unmanned target systems. Cyient met through indigenous technology by 70 percent by 2029-30. will provide advanced manufacturing and electronics engineering solutions for QTS' range of unmanned air, land, and MBDA Signs agreement with BDL sea target systems from its facilities in India. MBDA, Europe's leading missile manufacturer, has signed an agreement with Bharat Dynamics Limited (BDL) for the final UAV 'Rustom-II' Crashes assembly, integration and test (FAIT) of Mistral and ASRAAM An unmanned aircraft 'Rustom II' Medium Altitude Long Endurance (MALE) UAV, being developed by Defence Research Development Organization (DRDO) crashed in Chitradurga District, Karnataka on 17 Sep 2019 during an helicopters from Boeing, out of which 8 Apaches have already experimental flight trial. DRDO is developing the Rustom-II as been delivered. The US has also approved the sale of Lockheed Tactical Air-Borne Platform for Surveillance-Beyond Horizon Martin's USD 2.6 Billion 24 MH60R Seahawk anti-submarine 201 (Tapas-BH 201). The MALE UAV estimated to cost USD 34 helicopters for the Indian Navy. Further, India is also looking million per unit will replace the Israeli Heron, which is currently Indian Army currently has some 49 Mechanised Infantry towards acquiring Sea Guardian drones from General Atomics in service in the armed forces. The crash has been a setback in Battalions and uses Soviet-designed BMP-1, BMP-2 and BTR- which will enhance Navy's surveillance reach substantially in 70 Armoured Personnel Carriers manufactured by the Ordnance the Indian Ocean and each of the three services are working on Factory Medak under a license from Russia. buying ten each of these UAVs through FMS route.

Star Navigation partners with ANTAZ Technologies Technology Sharing by DRDO new generation close combat missile. The Indian Air Force's Star Navigation Systems has entered into a partnership with DRDO has decided to grant the Indian industry free access to (IAF) Jaguar aircraft are the first Indian platform to receive this ANTAZ Technologies Pvt. Ltd, and have signed an industrial patents held for technologies developed by it and no licence fee cutting-edge air-combat missile. agreement to adapt, integrate and market STAR products to the or royalty will be applicable on the Indian Defence Forces in collaboration with Hindustan use of Indian patents held by the BEML, WIPRO inks MoU Aeronautics Limited (HAL). STAR is already listed as a research agency. There are BEML and Wipro Infrastructure Engineering (WIN) have registered supplier to HAL for military equipment. Star's hundreds of such patents covering signed a MoU to work together in aerospace, industrial technology provides real-time tracking and positioning of missile technology, aeronautics, automation, 3D printing, artificial intelligence and hydraulic development efforts. The prototype of the Tactical Advanced aircraft as well as engine status reports. Noteworthy, in naval systems, life sciences, system engineering projects, products, systems, services for Platform for Aerial Surveillance Beyond Horizon-201 (TAPAS- cooperation with HAL and Antaz, a customised and proprietary armaments, combat engineering, projects in Defence, DRDO Labs, DPSUs and other relevant BH-201 / TAPAS 201), crashed soon after it took off. TAPAS solution based on STAR's patented STAR-ISMS ® technology is electronics and communication Government entities in India as well as exports. The key focus 201 specifications, stipulates operating altitude of 30,000 ft and under final development in order to satisfy the specific defence material. The recipient must have areas include aerospace components and parts through SEZ, the ability to take off from runways as high as 11,000 feet. The requirements of the Indian Military. The solution will address capacity to absorb technology, metal additive manufacturing and design optimization for new two-ton MALE UAV will be able to carry a payload of 350 kg the needs of the transport fleets of both the Navy and of the Air production capability, quality critical aggregates, legacy components & spares, and process and undertake intelligence, surveillance and reconnaissance Force, with a first application targeting small transport aircraft control mechanisms and will be required to submit annual automation. missions for the Indian Army, Air Force and Navy. and helicopters. commercial reports to DRDO.

Defence ProAc Biz News (12) (13) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

AI in Defence Services Offshore Patrol Vehicle for ICG India's Floating Test Range IRIGC - M&MTC The Indian Army has plans to induct constructive and Indian Coast Guard Ship (ICGS) Varaha an Offshore Patrol India is set to test its Ballistic Missile Defence (BMD) Phase II The 19th India-Russia Inter-Governmental Commission on destructive Artificial Intelligence technologies in the next two Vehicle developed by Larsen & Toubro (L&T) was interceptor missiles and other futuristic weapons next year with Military and Military-Technical Cooperation (IRIGC- years with the first users being the mechanized formations such commissioned in Chennai. It is the fourth among a series of its first Floating Test Range (FTR) in place to allow trials at M&MTC) was held in Nov 2019 which focused on all issues as tanks and infantry combat vehicles. In February this year, the seven ships to be delivered by L&T with features like ultra- different ranges without a land mass limitation or threat to the related to military-to-military cooperation and defence Ministry of Defence (MoD) had established a high-level advanced navigation and communication sensors. The state-of- population. The new FTR is a 10,000 ton ship, 200 meters long industrial cooperation. Some of the major issues figured in the the-art ship can operate the indigenously developed Advanced and 60 meters wide, equipped with state-of-the art Electro- delegation-level talks includes:- Light Helicopter (ALH) of Hindustan Aeronautics Limited Optical Missile Tracking (EOTS), S-band radar tracking and hDelivery schedule, (originally slated from October 2020 to (HAL). telemetry devices apart from a launch pad, a launch control and April 2023)of five squadrons of S-400, Triumf surface-to-air mission control center. It will be able to launch conventional missile systems under the $5.43 Billion (Rs 40000 Crores) missiles up to a range of 1,500 kilometres from a distance of 400 deal inked in October 2018. Navy inducts INS Khanderi to 500 nautical miles in the sea without fear of the weapons The second Scorpene-class submarine, the INS Khanderi made threatening any populated area on India's east coast. hOffer of Amur class submarines for the Indian Navy under the by Mazagon Dock Shipbuilders Ltd (MDL) in collaboration P75I. with the Naval Group (formerly DCNS) has been inducted in India-Saudi Arabia Strategic Partnership hUpgrade of Su-30 MKI fighter aircraft with the latest radars, Indian Navy. The first INS Kalvari, was commissioned in avionics and weapon systems including precision-guided During the visit of Prime Minister to Saudi Arabia both countries December, 2017. The third the INS 'Karanj' was launched on missiles. inked more than a dozen agreements in several key sectors, January 31, 2018 and is currently under going sea trials, the including oil and gas, defence and civil aviation besides agreed hSpeeding of co-production process of 7.5 lakh AK-203 rifles. to set up Strategic Partnership Council to coordinate on hLease of Akula-1 nuclear-powered attack submarine under important issues. The Council will be headed by Prime Minister the over $3 Billion (Rs 21000 Crores) deal inked in March Modi and the Crown Prince and it will meet at an interval of two 2019. years. The cooperation in agriculture, oil and gas, maritime Defence AI Council (DAIC) tasked to provide strategic Indian requirement for 12 Minesweepers and the Russian security, innovative technology, renewable energy, trade and h direction towards the adoption of AI in defence. Artificial offer its Project 12701 Alexandrit-E ships under a transfer of investment between the two countries were deliberated during intelligence will help Armed Forces in gathering information, technology (ToT) pact with the Goa Shipyard. the visit. Saudi Arabia is looking at investing USD 100 billion in making decisions and becoming a more effective fighting India in areas of energy, refining, petrochemicals, infrastructure, hIGA on manufacture about 200 Kamov-226T helicopters by machine. Also to be noted that under the iDEX (Innovations for agriculture, minerals and mining. Hindustan Aeronautics (HAL) with indigenization Defence Excellence) scheme, 44 technologies were shortlisted fourth submarine, INS Vela launched in May this year is to go for conditions. out of which 7 are on AI for which the Government is ready to sea trials. The other two submarines INS Vagir and INS Reciprocal military logistics pact. give financial support up to Rs 1.5 Crores. Vagsheer are in various stages of outfitting. Govt. selects Maker Village as partner for iDEX program h The Government has selected Maker Village near Kochi as an BVRAAM Astra Ready for Induction Project 17A Nilgiri Launched innovation programme partner for its iDEX program that LPD tender to be Scrapped pursues an innovative defence ecosystem. iDEX provides the India's first indigenous Beyond Visual Range Air-To-Air Missile INS Nilgiri first ship of the project 17A frigates for Indian Navy, Indian Navy wants to scrap a more than Rs 20000 Crores tender (BVRAAM) Astra for fighters, is now finally ready for has been launched. The frigate built by Mazagon Dockyard with for building four Landing Platform Docks (LPDs) indigenously induction after 15 years of development, with the DRDO a weight of 2650 tonnes is a design derivative of the Shivalik by private shipyards due to processing delays and latest expecting the IAF to initially order at least 200 missiles for its developments in technologies in the field of amphibious Sukhoi-30MKI jets. The sleek 3.57-metre long Astra with warships. The Navy will most likely will be issuing a new tender weight of 154-kg, flies over four times the speed of sound at Mach 4.5. To be produced by Bharat Dynamics for about Rs 7-8

for acquiring these warships. Two Indian firms, namely, Reliance Defence which partnered with the Naval Group of France and Larsen and Toubro which partnered with Navantia of Crores per unit, Astra will be a much cheaper indigenous selected start-ups access to the defence markets besides grants of Spain were the competitors. The LPDs to be acquired would be alternative to some of the expensive Russian, French and Israeli class stealth frigates with much-advanced stealth features and up to Rs 1.5 Crores. Already, close to 10 start-ups at Maker roughly 30,000 ton helicopter landing platforms with the ability BVRAAMs currently imported. indigenous weapons and sensors. Village are working with the defence establishment. to carry an army battalion, including tanks and armored carriers.

Defence ProAc Biz News (14) (15) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

India-UK Defence Co-operation Dhanush Artillery Guns Update Hindustan Shipyard IAF receives its first Rafale fighter During Aero India-2019 UK pitched to collaborate in the areas The indigenously developed Dhanush artillery guns by the The value of production of Hindustan Shipyard Limited (HSL) The Indian Air Force (IAF) has received its first Rafale fighter jet of aircraft carriers and development of 6th generation fighter Ordnance Factory Board (OFB) are under induction. The OFB in 2018-19 was to the tune of Rs 595 Crores and achieved net and from a series of 36 aircraft purchased from Dassault Aviation, aircraft technologies. This was followed by the bilateral defence will be delivering around 18 of these artillery guns to the Army operating profit in fourth consecutive year. The Shipyard order France in a deal worth Rs 59000 Crores inked in September 2016 and security equipment talks in April, when the two countries before the year ends which will form the first Regiment. The book is about Rs 2689.10 Crores as on March 31, 2019. During renewed the Defence Equipment Memorandum (DEM) of 2007. Indian Army has placed an order for a total of 114 `Dhanush' FY 2018-19, HSL signed two major shipbuilding contracts with India-UK Maritime Cooperation aims at ambitious shipbuilding guns worth Rs 14.50 Crores. The Dhanush gun, which has a Navy for two Diving Support Vessels at a cost of Rs 2390 Crores, and maritime innovation programmes. calibre of 155x45mm, is the first indigenous artillery gun - towed in addition to four 50 ton BP tugs worth Rs 260 Crores. HSL and self-propelled mode - of this caliber and has undergone signed contract for building three flap gates for Rs 20 Crores at extensive trials in extreme weather conditions as well as difficult IAF launches IACCS terrains across the country. The guns will come with almost 85 The Indian Air Force (IAF) declared the Bengaluru node of percent indigenous material has a range of 38 km and is Integrated Air Command and Control System (IACCS) classified as 'medium artillery'. There has been active functional, which will exercise air defence control over the participation of both private and public sector companies like whole Indian peninsula, and is the only such node in the region. SAIL, BEL working with the OFB on this project coupled with The IACCS is an automated air-defence command-and-control active involvement by DRDO and DGQA, as well. centre enabling system assisted faster decision making, which will control and monitor IAF operations throughout the country in an integrated manner in the event of an attack by an enemy IGA on Joint Manufacturing of Spare Parts power. The node is equipped with the latest batch of equipment India and Russia in September this year had inked Inter- between India and France. The first batch of four Rafale jets are from Bharat Electronics Limited (BEL). Governmental Agreement (IGA) to allow collaboration on joint expected to come to India by May 2020 while all 36 jets are manufacturing of spare parts, and components for Russian expected to arrive in India by September 2022, for which the IAF platforms include Su-30 MKI, MIG 29, Mi-17 helicopters, MIG has been reportedly undertaking preparations, including HAL, NewSpace Research and Technologies to develop 29 K/KUB, INS Vikramaditya, T-72 and T-90. The private sector readying required infrastructure and training of pilots. The 'Swarm' drones companies from both sides will be jointly designing and Rafale is a twin-jet fighter aircraft able to operate from both an Naval Dockyard-Visakhapatnam. HSL has also been nominated Hindustan Aeronautics Limited (HAL) and a Bengaluru- producing defence platforms and to manufacture spare parts for aircraft carrier and a shore base. for construction of two Special Operation Vehicles worth Rs the various defence equipment of Russian origin. The CMDs of based startup, NewSpace Research and Technologies is 5000 Crores for the Indian Navy. Beside it is also nominated for PSUs including BDL, BEML, GSL and Hindustan Aeronautics Update on Mirage Upgrade developing first prototype attack missile, the Air-Launched construction of five Fleet Support Ships at a cost of approx. Rs Ltd and also representatives of 35 companies including L&T The Indian Air Force's 49 Mirage-2000s are being upgraded Flexible Asset (Swarm Drones) or ALFA-S for the Indian Air 9045 Crores; however, the proposed agreement with Anadolu Defence, Bharat Forge Limited, Texmaco Defence, Alpha under an overall programme worth Rs 17547 Crores. The Force's fighter jets and transports. The first drone prototypes Shipyard (ADIK) of Istanbul as its design collaborator for these Design Technologies, Ananth Technologies, Zen Technologies, programme was first finalized at Rs 10947 Crores with French are likely to be deployed from Hawk Advanced Jet Trainers ships is expected to be put on a hold. Abhyuday Techo Economic Consultants Pvt Ltd, Avinav Consulting, Delta Wallace, CHW Forge, Hyderabad Precision, Rossell Techsys and representatives from Tamil Nadu and Uttar Indigenous Light Bullet Proof Jackets Pradesh defence corridors went to Russia in November 2019 and Last year, the Defence Ministry had contracted Rs 639 Crores met Russian companies for identifying potential partnerships deal with the SMPP Pvt Ltd to provide 1.86 lakh light bulletproof that will enable manufacturing of Russian military parts and components in India.

Dassault Thales JV with Reliance becomes operational Reliance Company's manufacturing venture with Dassault Aviation of France - Dassault-Reliance Aerospace Facility - has become operational in Mihan in Maharashtra. The Mihan facility will manufacture important components for Falcon 2000 jets. The facility will manufacture several components of the offset obligation connected to the purchase of 36 Rafale Fighters from companies Dassault Aviation and Thales in July 2011. A contract being built under license, at HAL. The ALFA-S prototype Dassault Aviation, France, ordered in September 2016, which for 490 advanced fire-and-forget MICA (interception and aerial could be ready in two years. Apart from India, the United has 50% offset obligation amounting to Rs 30000 core combat missiles) systems worth Rs 6600 Crores to arm the States, China, Russia and a few European countries are in the approximately. jackets to the Army. The company has supplied 40 thousand Mirages was finalized with French armament major MBDA in process of developing the first elements of their swarm-drone bulletproof jackets as of now and likely to complete the order by early-2012. But the progress has been slow since then, with only strike package. the end of 2020. about 10 Mirages being upgraded till now.

Defence ProAc Biz News (16) (17) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

France offers to revive Kaveri Jet Engine Project Safran to Set Up MRO Facilities PROCUREMENT/PRODUCTION NEWS France has offered to revive plans to co-develop the indigenous France based engine manufacturer Safran plans to invest nearly Kaveri fighter jet engine for the Indian Light Combat Aircraft USD 150 Million in India to set up Maintenance, Repair and HTT-40 Basic Trainer poised for final clearance Armed Forces need Rs 80000 Crores more for (LCA) program as part of the offsets under the 36 Rafale Overhaul (MRO) facilities. The company already has a USD 15 The Indian Air Force (IAF) is likely to purchase 70 HTT-40 modernization this year Fighters deal from Dassault Aviation. Recently, a detailed Million investment to train 500 engineers annually and also will Basic Trainer Aircraft from Hindustan Aeronautics Limited The Armed Forces want around Rs 80000 Crores more for bring the additional investment through discharge offset (HAL). As of now, the HTT-40 aircraft has cleared all Air Staff modernization, plugging critical operational gaps and paying obligation as part of the 36 Rafale aircraft deal. The CEO made Qualitative Requirements (ASQR). Recently, the aircraft 'committed liabilities' this financial year. The overall defence an open request in presence of Indian Defence Minister and successfully completed the six-turn spin tests which mean that outlay in the 2019-2020 budget was pegged at Rs 3.18 Lakh Secretary Defence that India should rationalize its tax structure. Crores, with Rs 2.10 Lakh Crores revenue expenditure for salaries and day-to-day running costs outstripping the Rs 1.08 Air Independent Propulsion lakh Crores for capital expenditure by far. The Navy, for DRDO developed Air Independent Propulsion (AIP) system got instance, wanted around Rs 29000 Crores just for 'committed a boost with the operation of fuel cell-based land-based liabilities' this year but was allocated Rs 23154 Crores as capital prototype AIP conducted at the Naval Materials Research expenditure. The Army had projected a requirement of Rs 44500 Laboratory in Ambernath in the presence of Chief of Naval Staff. Crores for capital expenditure but got only Rs 29472 Crores. AIP has a force multiplier effect on lethality of a diesel-electric Even under the revenue outlay and the ex-servicemen submarine as it enhances the submerged endurance of the boat, contributory health scheme head, the Army needs another Rs several folds. 15500 Crores this year. With a capital allocation of Rs 39303 Crores this year, the technology and capital-intensive IAF is also Indigenous Aircraft Carrier (IAC-I) the aircraft is ready to be put in service. The project started in grappling with huge shortfalls in paying installments. The Force, presentation by France's Safran on creating an aircraft engine Cochin Shipyard Limited has signed the Phase-III contract for 2013 and within five years with Rs 350 Crores project cost, the for instance, has already paid around over Rs 34000 Crores to ecosystem in India has been given to the Indian Defence construction of the Indigenous Aircraft Carrier (IAC-I) INS HTT-40 has completed several spin tests successfully. HAL now France in 'milestone-linked installments under the Rs 59000 Minister and also a proposal has been sent to the Defence and Vikrant worth approx Rs 3000 Crores with Defence Ministry on is concentrating on completing the certification process of Crores deal inked for 36 Rafale fighters in September 2016, Development Research Organization (DRDO) about this. October 31, 2019. The Phase-III contract covers the operational HTT40 at the earliest and likely to begin production by 2021. while another major installment of Rs 13000 Crores is in the Previously, plans to revive the indigenous Kaveri project with and harbour acceptance trials of a variety of equipment and pipeline now. the help of French technology got cancelled after the India found systems installed onboard and also the sea trials of the Carrier. that only a part of the offsets around just over Euro 250 million The contract also covers some activities which are to be IAF to order 83 LCA Tejas Army has projected an additional requirement of Rs 20500 could be utilized for the projects and the remaining Euro 500 Crores for capital expenditure, while the IAF has asked for undertaken post delivery of the vessel including support during Indian Air Force (IAF) is set to place orders for 83 LCA Tejas million would have to be provided by DRDO. Safran has around Rs 40000 Crores more. The Navy needs about Rs 20000 weapon & aviation trials. CSL started with the construction of combat jets after pricing issue of the aircraft has been resolved emphasized that India is the sole country in the world to whom Crores at the revised estimate stage in December. The Indian with its manufacturer Hindustan Aeronautics Limited (HAL) such a transfer has been proposed. If things work out between Navy is likely to seek increase in its share of the Capital budget to earlier this month. Defence Minister Rajnath Singh flew a 30- France and India, then this would be the way forward for the first 18%, in light of major acquisitions, including advanced minute sortie on a Tejas jet in Bangalore and also said that the indigenous fighter aircraft engine for India. submarines and fighter aircraft. The six P75 submarines cost aircraft is ready for exports. about Rs 25000 Crores while the Project 17A comprising seven Indigenous Development of Sniper Rifle ships are worth about Rs 48000 Crores and the dry dock located SSS Defense, a firm based in Bangalore claimed to have at the naval dockyard in Mumbai is Rs 1320 Crores. developed two sniper rifle prototypes of calibre in 7.62x51 mm INS Vikrant in 2009 and was launched in 2013. The carrier will MoD likely to sign deal for 56 C-295 planes start its sea trials in 2021 and by 2023 into the service of Indian Indian Ministry of Defence (MoD) is likely to sign a $2 Billion Navy. deal for 56 C-295 tactical medium transport aircraft (MTA) soon to replace the Avro Hawker Siddeley HS748 fleet. The first 16 German Chancellor Visit will be built at an Airbus Defence & Space facility in Seville, During the visit of German Chancellor Angela Merkel, in cot Spain and balance 40 will be built in India by Airbus's joint Now the focus will be on the naval version of LCA. Defence 2019, India and Germany inked 17 agreements and five joint venture with the TATA Group. As of now, India has concluded Research Development Organization (DRDO) conducted a declarations of intent and in fields including space, civil price negotiations. Delivery of the first C-295 is expected to successful "arrested landing" of the Naval at an onshore facility aviation, maritime technology, medicine and education in the begin within 60 months of the contract being signed. The Indian in Goa. The Naval variant in the present form is just a area of new and advanced technology, as a part of the 5th Indo- Coast Guard has also shown interest in acquiring 6 C-295 technology demonstrator and yet to meet the requirements of German Inter-Governmental Consultations. The two countries transport planes. and .338 Lapua Magnum. The barrel length options range from being a deck-based fighter aircraft with some of the issues such resolved to intensify bilateral and multilateral cooperation to 20 inches to 24 inches, based on the mission criteria and use as engine thrust, limited payload and limited radius of action as deal with the threats of terrorism and extremism. environments. compared to the MiG-29K.

Defence ProAc Biz News (18) (19) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

India to buy NASAMS-II from US Fighter Aircraft Project-75I Development IAF to buy additional Sukhois, Mig-29 fighter jets India is progressing with the acquisition of the National The Indian Government may strike a deal for another 36 Rafale Daewoo Shipbuilding and Marine Engineering shipbuilder The Indian Air Force (IAF) has decided to procure 12 Su-30 MKI Advanced Surface to Air Missile System-II (NASAMS-II) from fighter jets, by early 2020. The Indian Air Force has recently South Korean is the new contestant for Project 75I while the to replace the number of aircraft lost in different accidents and 21 the US, which will be used along with indigenous, Russian and been handed over its first Rafale aircraft from France. The Swedish company SAAB has pulled out. The other contenders Mig-29 fighter jets from Russia. The procurement of 21 MiG-29 Israeli systems to erect an ambitious multi-layered missile shield purchase of another 36 Rafale fighter jets will take the fleet to 72. are Naval Group (France), TKMS (Germany), Rosoboronexport fighters from Russia is expected to cost around USD 847 Million over the National Capital Territory of Delhi against aerial threats (ROE) Rubin Design Bureau, Russia and Navantia (Spain) to (approximately $40 Million per aircraft). The 21 MiG-29 jets are ranging from drones to ballistic missiles. The 'letter of build six conventional submarines in India. Amongst these, expected to be upgraded to the MiG-29 UPG standard. As of now acceptance' under its foreign military sales programme, is expert feels that only Rubin, TKMS and Naval Group are a preliminary approval has been given to the procurement by the awaited. Raytheon's (NASAMS-II) has been designed as a considered to have a chance. Further, five Indian entities Indian Government. Plans are also underway to upgrade the Su- competition to the S-400 Triumf advanced air defence missile Mazagon Dock Ship-builders Ltd (MDL), Larsen and Toubro system of Russia and has the capability to intercept ballistic (L&T), Reliance Naval and Engineering (RNaval), Hindustan missiles at high altitude. The offered Rs 6000 Crores systems Shipyard Ltd, Visakhapatnam (HSL), and a proposed Special from the US is expected to secure India's airspace against aerial Purpose Vehicle (SPV) consisting of HSL and Adani Defence threats ranging from drones to ballistic missiles. have submitted Expressions of Interest (EoI) for being the Strategic Partners (SP) in Project 75-I. Amongst these L&T and MDL are realistic contenders, since RNaval and HSL do not meet the financial criteria and the HSL-Adani SPV remains to be formally incorporated.

The project under SP model for 114 fighter aircraft is also The Project 75-I will be through Strategic Partnership (SP) progressing. Boeing F/A-18 Block III Super Hornet, Rafale, model, under which the Indian Navy is to acquire six next have emerged as the strong contenders. Dassault Rafale and US generation diesel-electric submarines (SSK) worth Rs 45000 Boeing, have both extended their offers to help build India's 5th Crores. The SP policy gives the lead responsibility of the 30MKI, with modern “Radar and Weapons capabilities and also generation AMCA fighter jet, in case they are selected. SAAB's contract to the Indian vendor that has to hold at least 51% stake in tackling obsolescence management and electronic warfare Gripen-E, Russian Mig-35 and Sukhoi-Su-35 are not expected to the project, thus taking away control of the special purpose aspects. The IAF has so far inducted over 250 of the 272 Sukhois give a tough fight. US is keen that India buys its Lockheed vehicle (SPV) that is to be formed from the foreign technology originally contracted in batches from Russia for well over $12 Martin F-21 jets, but it seems India will not go ahead as Pakistan partner. Some of the OEM contenders have reservations on Billion, with the bulk of them being licensed-produced by HAL. already has its variant. selection of Indian partners by Government, customer's requirements, the time schedule and the requirements related to It has new 3D mobile surveillance radars and 12 missile Spares for Pilatus the SP policy with its unbalance between our possibilities to launchers which can be used for quick reaction. Its battery has up Naval Shipbuilding India, in 2012, signed a deal with Pilatus for 75 PC-7 MK-II have control and our obligations and liabilities. This, some to 12 multi-missile launchers. And each of them carries six AIM- Recently MoD issued four shipbuilding Requests for Proposal Basic Trainer Aircraft worth Rs 4000 Crores for Indian Air Force industry executives say, has implications as the quality and 120-series advanced medium-range air-to-air missiles (RFP) worth Rs 15000 Crores to Indian shipyards, namely, 06 (IAF) with deliveries being completed by 2015-end. However, timelines required cannot be guaranteed by the foreign partner. (AMRAAMs) or other surface-to-air missiles (SAMs). There Next Generation Missile Vessels (NGMVs), 08 Fast Patrol later on the Ministry of Defence (MoD) suspended all business are eight AN/MPQ-64 Sentinel X-band 3D radars. Other sub Vessels (FPVs), 12 Air Cushion Vehicles (ACVs) and 08 dealings with Pilatus over allegations of corruption. In view of systems include Fire Distribution Centers (FDCs) and MPS 500 Missile-cum-Ammunition Barges for the Indian Navy and Coast Procurement of T-90 Tanks the fact that the IAF needs spares and maintenance support for 75 electro-optical/infrared (EO/IR) sensor system vehicles. Guard. Also, in pipeline is a mega Rs 60000 Crores 'Make in PC-7 BTA that are already in use, the MoD has partially revoked The Ministry of Defence has placed an order for procurement of India' project named P75I for the construction of six 464 T-90 Main-Battle Tanks (MBTs), worth 20000 Crores with The US administration has also offered Patriot Advanced conventional submarines. Private sector shipyards like L&T are the Heavy Vehicles Factory Avadi. With the production Capability (PAC-3) missile defence systems to India. keen to participate in the project and have opposed the idea that capability of about 120 tanks a year, it could take over four years submarine projects should be given to public sector shipbuilders Anti-Personnel Mine (APNM-14) on a nomination basis. However, the defence sector continues to The Indian Army has issued a RFI to procure one million Anti- Personnel Mine (APNM-14) from the private sector at the rate of 2 lakh units every year. These mines have been produced by the Ordnance Factory Board (OFB) with supplies of hardware less explosives from some domestic companies. The respondent suspension against business dealings with Pilatus following need to have capability to deliver one million mines over a five- representation from the IAF. There are stipulations in the order year period. The competition could be limited to two major for it to deliver all 464. The 46.5-tonne tank is powered by a that the vendor discharges offsets without further loss of time as players that have the capacity for the delicate procedure of filling 1,000HP engine and has a 125mm smooth bore gun capable of the prescribed time period has already elapsed and contractual in explosives. For the approximate value for the contract the be plagued with policy inaction on allowing the private sector to firing all types of ammunition, including laser-guided missiles obligations by the vendor is immediately undertaken and OFB price for the product could be a benchmark. participate in defence manufacturing and fabrication. to a range of up to 5 km. completed.

Defence ProAc Biz News (20) (21) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

Procurement of Spike Missiles MH-60R Seahawks Multi-Role Helicopters Apache Helicopters IAF to procure Bird-Detection Radars The Army has begun to induct a limited number of Israeli Spike The Indian Navy has placed an order for 24 Sikorsky MH-60R With 22 Apache helicopters set to join the Indian Air Force (IAF) The Indian Air Force (IAF) is to issue RFI for procuring bird- anti-tank guided missiles (ATGMs) to meet immediate maritime helicopters worth USD 2.6 Billion from US under by March 2020, there is need for integrating the multi-role detection radars or avian radars fourth time in 10 years. The operational requirements till the indigenous man-portable Direct Government Sale. As of now, the LOR (letter of request) combat choppers with ground forces for better operational earlier tenders for bird-detection radars had drawn the interest of ATGM being developed by DRDO are ready for induction. It is and LOA (letter of acceptance) procedures are on, with the deal capabilities, logistics and training. The eight units of the Boeing M/s Robin Radar Systems, M/s Data Patterns (India) Pvt. Ltd. said the “first lot” of the 210 Spike missiles, with a dozen expected to be signed by the 2019-end with the induction of and M/s Axiscades Aerospace and Technologies Pvt. Ltd. The launchers, worth around Rs 280 Crores have been received as these heavy-duty choppers is expected to be around 2021-2025. plan is likely to procure 45 avian radar systems for Rs 250 Crores ordered under the “Army vice chief's emergency procurement The deal will have an offset requirement. The deal includes 30 - 39 for the IAF and 6 for the Indian Navy. powers”. APS-153(V) Multi-Mode radars, 60 T700-GE-401C engines, 24 Airborne Low Frequency System (ALFS), 1,000 AN/SSQ- In late 2017, India had scrapped a proposed Rs 3200 Crores deal 36/53/62 sonobuoys; 30 MK 54 torpedoes; 10 AGM-114 IAF to equip Su-30 MKI fighters with Spice 2000 bombs for 8,356 Spike missiles, 321 launchers and 15 simulators that Hellfire missiles; 38 Advanced Precision Kill Weapons System The Indian Air Force (IAF) is planning to integrate the Israeli had been first approved by the Defence Acquisitions Council in (APKWS) rockets; and 70 AN/AVS-9 Night Vision Devices, in Spice 2000 guidance kit-enabled bombs on Russian-origin June 2009 mainly due to DRDO claims of early induction. Army addition to other equipment and parts. A range of combat aircraft Su-30 MKI that will give a boost to its offensive need to equip its over 380 infantry battalions and 44 Mechanized communications equipment is also being transferred, enabled by manufactured combat helicopter Apache AH64E (I) known as infantry units with third and fourth-generation ATGMs in the the Communications Compatibility and Security Agreement 'Tank Killers', provide close air support to armoured formations long run. The order is likely to be repeated if the man-portable (COMCASA) that India and the US signed in September 2018. and ground forces by flying at 'tree-top heights'. Furthermore, ATGM being developed by DRDO is not ready by next year. there is another contract worth Rs 4168 Crores in pipeline for acquiring six Apache choppers for the Indian Army.

Army Aviation Modernization Plans The Army Aviation 10-year modernization plans aims to induct at least 350 helicopters including two kinds of utility choppers and three types of combat helicopters. The present position of capabilities. This would be the second non-Russian and non- helicopter procurement is as under:- indigenous weapon to be integrated with the Su-30 MKI; the first h70 Rudra (Advanced Light Helicopter 'Dhruv' armed with 20 being the MBDA manufactured advanced Short Range Air to Air mm Gun), have already been inducted and 10 more will join Missile (ASRAAM). The IAF earlier this year signed deal for the the Force by 2020. new set of Spice bombs worth Rs 300 Crores with Israel. Each Spice 2000 bomb weighs about 1,000 kg and has a range of close The Light Combat Helicopter (LCH) to be inducted within h to about 100 km. seven to ten years.

The Navy's total requirement is of at least 123 of the Naval Multi h200 Kamov Ka-226s, which are for reconnaissance and 155 mm Excalibur Artillery Ammunition observation, are expected to be procured within 10 years. Role Helicopters (NMRH) and had released a global request for Indian Army has recently procured 155 mm precision-guided information for the same in August 2017. However, the proposal Excalibur ammunition from United Stated based Raytheon and for 123 new choppers has not progressed as fast is expected to BAE Systems Bofors. Excalibur is capable of hitting targets take at least three to five years, thus leading to the procurement of the Romeo Maritime Helicopters from US. The Army's existing second-generation Milan-2T (2-km range) and Konkurs (4-km) ATGMs, produced by defence PSU Bharat Indian Navy to buy SRSAM Dynamics under licence from French and Russian companies, The OEMs such as MBDA, SAAB, Rafael Advanced Defence do not have night-fighting capabilities. Systems, Samsung and Rosboronexport have responded to the Indian Navy's bid for Short-Range Surface-To-Air Missile (SRSAM) systems under Buy (Global) Category. These are Army Requires Drones required urgently to replace 150 odd existing Barak-1 air The Army's list of equipment that are required on urgent basis defence systems which is onboard the Kamorta class corvettes of include Drones that can be used to carry loads of up to 50 kg the Indian Navy. Each SRSAM system will have a command and even in densely populated areas 50 kilometers away with an error above 10,000 feet and Unmanned Aerial Vehicles (UAVs) which control system, a fire control system, command link radar and a margin of less than 2 metres. The ammunition will be used in all double up as missiles to shoot down other drones. The Loitering launcher for a particular number of missiles. In case of 155-mm artillery guns with the Army. The proposal and munitions drones have the capability to be used as missiles while procurement through foreign vendors, the Government-to- By 2021, the Army also expects to procure six Apache choppers acquisition was fast-tracked under financial powers to the they move as UAVs carrying out surveillance and anti-drone Government route may be adopted for equipment meeting Further, the induction of the Remotely Piloted Aircraft System Service HQ and delegation of emergency powers to the Vice capabilities. strategic or long-term requirements. (RPAS) is also on card. Chiefs up to Rs 300 Crores.

Defence ProAc Biz News (22) (23) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 NEWS

Indian Military Aviation Transformation Advanced Medium Combat Aircraft The Indian Armed Forces would be requiring more than 500 The Advanced Medium Combat Aircraft (AMCA) is likely to aviation assets to sustain and bolster their capabilities. These get approval by the Cabinet Committee on Security (CCS) early include combat, surveillance and transport aircraft, light utility next year. It is being developed by Aeronautical Development helicopters, attack helicopters, heavy-lift helicopters and Agency (ADA) as the design firm with manufacturing carried unmanned aerial vehicles including combat aerial vehicles. An estimate of the cost of the above with requisite support systems is about USD 60-70 Billion. In the last two decades, India has spent over USD 48 Billion on importing major air warfare assets. Indian military aviation industry with indigenous content stuck at around the 15% mark mainly due to DRDO and Hindustan Aeronautics Ltd.

The need fo the hour is to have policy decisions to infuse funds and revitalize and redefine the role and accountability of DRDO, Defence Public Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) need to be taken now so that results start showing by 2022-2024. Expansion of scale with greater visibility can assist the industry to cut production costs and lead to economies of scale. Alongside, providing a level-playing field to the private sector and hand-holding for initial orders will assist in creating an ecosystem that will pay long-term dividend. out by Hindustan Aeronautics Limited (HAL) as the primary Practically, it is a make or break period for 'Make in India' in the contractor and main assembly firm. The aircraft is expected to military aviation sector. undertake its first flight only by around 2032.

APPOINTMENTS

Air Marshal RKS Bhadauria is new CAS Vice Chief of the Air Staff Air Marshal RKS Bhadauria, Air Marshal Harjit Singh Arora, PVSM, AVSM, VM, currently AVSM, succeeds Air Chief the Air Force's Vice Chief has Marshal R K S Bhadauria as Vice taken up as Chief of the Air Staff Chief of the Air Staff. He was (CAS) of the Indian Air Force commissioned into the fighter after superannuation of Air Chief stream of the Indian Air Force in Marshal BS Dhanoa. A recipient December 1981 and has a vast of 'Sword of Honour' in the experience of operational flying National Defence Academy, he on modern and legacy fighters in was commissioned in the fighter the IAF. Earlier, he was Air pilot stream of the IAF in June Officer Commanding-in-Chief 1980 and has held various (AOC-in-C) of the South Western command, staff and instructional Air Command at Gandhinagar. appointments at various levels. He has over 4,250 hours of experience in flying 26 types of fighters and transport aircraft. He also has the unique distinction of being an Experimental Test Pilot, a Cat 'A' Qualified Flying Instructor and a Pilot Attack Instructor. He is the recipient of the Ati Vishisht Seva Medal, the Vayu Sena Medal and the Param Vishisht Seva Medal. He was appointed honorary Aide De Campe to the President of India in January.

Defence ProAc Biz News (24) Nov-Dec 2019 POLICY Review of DPP and DPM: An opportunity for far-reaching reforms

By Amit Cowshish Improvement in the policy, procedure and processes on defence procurement will help, but the tardy decision-making is real bottleneck, which is beyond purview of the review committee.

committee, set up by the Ministry of Defence (MoD) in The DDP, on the other hand, administers 41 Ordnance Factories August this year, is currently reviewing the Defence and 9 Defence Public Sector Undertakings (DPSUs) which AProcurement Procedure (DPP) 2016 and Defence collectively account for the bulk of the defence production Procurement Manual (DPM) 2009 which govern the revenue and infrastructure in the country. The objectives of Make in India and capital procurements respectively. While the ultimate objective indigenisation whichever way one chooses to describe them - of the exercise is to ensure seamless flow from acquisition of cannot be achieved without the involvement of their involvement. assets to their life cycle support, the terms of reference of the committee are very wide. Review of the existing policies The review committee will need to look beyond the DPP and The terms of reference include removal of procedural bottlenecks DPM if a much-needed comprehensive policy framework is to be to hasten defence acquisitions; simplification of the policies and evolved for defence procurement and production in India. To be procedures to facilitate greater participation by the Indian sure, a Defence Production Policy is already in place, but it is a industry and promotion of start-ups and research and parochial policy that looks at the larger issue only from the point development; introduction of new concepts like life-cycle of view of defence production. What is needed is a costing, performance-based logistics, lease contracting, comprehensive policy which recognises that the primary function codification and standardisation; and, indeed any other aspect of the MoD is to equip the armed forces with the capabilities that which may contribute to refinement of the acquisition process and they need to meet the security challenges. The focus of any promotion of the 'Make in India' initiative. comprehensive policy would, therefore, must be on defence acquisition/procurement as the primary objective, with research There are three distinct aspects of the task assigned to the and development and defence production playing supplementary committee: the policies that have a bearing on defence role in this endeavour. procurement and production, the procedures that have been evolved over the years, and the processes followed at each stage As the things stand, the review committee neither has the mandate in the procurement cycle. A comprehensive review covering all nor the time to consider how such a comprehensive policy could these aspects would require involvement of not just the armed be formulated. The next best option it has is to cull out the policies forces and the industry, but also the Department of Defence that are unrecognisably intertwined with the procedure in the DPP Research and Development Organisation (DRDO) and the and the DPM and review their impact on defence procurement Department of Defence Production (DDP). and production. There are several such policies: offsets, dealing with instances of transgressions in defence contracts, Presently, DRDO has an almost exclusive monopoly over incentivisation of indigenous design and development through research and development and manages various programmes, the 'Make' procedure (and indeed DTF), price preference to local including the Defence Technology Fund (DTF), that have a vendors, strategic partnership model, just to name a few. bearing on strengthening of the defence industrial base in India.

(25) Defence ProAc Biz News Nov-Dec 2019 The review committee (including its several sub-committees) is formations and establishments of the armed forces and the Indian contract, variety of banking instruments, procedure for opening Review of the existing processes probably looking at these policies, but primarily from the point of Coast Guard. On the balance, there seems to be little justification of letters of contract, registration of vendors, etc., can go into the This is the third and the most crucial aspect of the ongoing review. view of the procedures associated with implementation of these for combining these two into one single document, which will Defence Procurement Primer as it would be of interest to all There is a process associated with every stage in the procurement policies. This should help, though it would have been ideal to inevitably become voluminous. officials who are involved in procurement, whether under the cycle. Absence of Standard Operating Procedures (SOP) or carry out a zero-based review of the policies at the conceptual revenue of capital stream. Standing Instructions (SI) or any ambiguity in them can delay or level. For example, the offset policy serving the purpose for There is, in any case, a need to edit the text of these documents derail the proposal at any stage. Let us take the example of the which it was introduced more than a decade back. A study of the more so if these are to be combined to remove redundancy, bring The illustration given above is only to give an idea of the very first stage at which a Request for Information is to be issued. ongoing offset contracts carried out by the Institute of Defence about textual clarity and ensure proper sequencing of the possibility that exists to make the procurement manuals not only The process laid down in Chapter II of DPP 2016 does not Studies and Analyses some time back would come in handy if any contents. A lot of material in the procurement manual, especially lean and thin, but more precise and user-friendly. Similar envisage involvement of all the Services Headquarters at the such zero-based review is to be carried out. in the DPM, is not of immediate relevance, though it may have possibilities can be explored in relation to the DPP also, with the initial drafting stage. Nor does it envisage collegiate approach to good educative value. Such material can be culled out from both focus on issues that are common to both the manuals, of which the its preparation. The implication is that on-paper consultation Apart from subjecting all procurement and production policies to the documents and included in a Defence Procurement Primer for existing system of registration of vendors and agents is a burning between the initiating Service Headquarters and other agencies, zero-based review, it is also important to synchronise various education and training and of the procurement of officials. example. There is considerable ambiguity on these issues. The such as the DRDO, DDP and Headquarters Integrated Defence policies and schemes, such as the DTF, that are being Possibility of laying down standard formats - and combining committee would do well to evolve a simple procedure for Staff could take a long time, and consideration of the question administered by departments other than the Department of them wherever they already exit also needs to be explored with registration, if considered necessary (which too is an issue that whether other services also need the same/similar Defence (DoD) in the MoD. If, for all instructions being incorporated in merits consideration). equipment/capability gets deferred to a later stage. This can be example, development and production those formats. The use of standard streamlined simply by providing for participation of all the of raw material that goes into formats does not take away the One more point needs to be made in the context of review of the services (including the Indian Coast Guard) right from the initial manufacturing of aircrafts and ships is The tardy decision-making flexibility to customise its contents, existing procedures, which concerns the stages in the stage and collegiate vetting of the Request for Information. to be encouraged with a view to has been the bane of defence except for the standard clauses. procurement cycle. It is not uncommon to hear the criticism that minimising dependence on foreign procurement all along. there are far too many stages that all procurement proposals, Another example of this would be contract negotiations. The sources, the Capital Acquisition Wing Just to illustrate, there are 15 chapters especially those related to capital acquisition, have to go through Improvement in the policy, existing instructions regarding initial costing and benchmarking (under the DoD) has to function in in DPM 2009 which could be reduced in what at times is sardonically described as a game of snakes and are arguably very tenuous. So is the case with the instructions on procedure and processes will tandem with the DRDO which must to six as follows: ladder. The procurement stages given in DPP 2016 are as follows: contract negotiations, assuming the officials involved in play a key role in development of help, but the ultimate test of (A) Request for Information negotiations are well trained for the job. These factors could specialised defence material through their efficacy will be the Chapters (B) Services Qualitative Requirements potentially slow down the progress of a procurement case at the its Defence Metallurgical Research impact it has on decision- (A) Introduction (C) Acceptance of Necessity negotiations stage. The answer lies in laying down a detailed Laboratory (DMRL) and by making. (B) Procurement Procedure (stages) (d) Solicitation of offers costing methodology, specific to defence acquisitions, a detailed encouraging private entrepreneurs (C) Repair and Maintenance (E) Evaluation of Technical Offers by the Technical Evaluation procedure for determination of a reasonable price before opening through the DTF scheme. Such an Contract Committee of the commercial bids, and a drill for conducting contract effort will also require coordination (D) ICT Contracts (F) Field Evaluation negotiations. with the DDP, which administers Mishra Dhatu Nigam (E) Consultancy Contracts (G) Staff Evaluation (MIDHANI) the premier DPSU involved in production of (F) Non-consultancy (outsourcing) Contracts (H) Oversight by Technical Oversight Committee, if required These are just two examples of what needs to be done as regards specialized metals and metal alloys manufacturing facility in (I) Commercial Negotiations by the Contract Negotiation refinement of the processes. This applies to practically each stage India. [The chapter on Design, Development and Fabrication Contracts Committee in the procurement cycle, especially those that are most can be combined with the chapter on Make Procedure in the DPP.] (J) Approval of the Competent Financial Authority vulnerable, such as formulation of the Services Qualitative Review of the existing procedures (K) Award of Contract/Supply Order Requirements, evaluation of technical offers and field evaluation. A joint review of the DPP and DPM has many advantages. Formats with all related instructions (L) Contract Administration and Post-contract management The MoD and Services Headquarters can identify the problem Several procedures, such as solicitation of information through (A) Statement of Case areas based on their past experience and formulate instructions on Request for Information (RFI), tendering, contract negotiation, (B) Request for Information These stages have been identified based on experience and have the process to be followed at every stage as a part of the etc. are common to both these documents. A joint review will (C) Request for Proposal remained unchanged for some time. It is difficult to imagine committee's deliberations. ensure procedural uniformity as well as uniformity of various (D) Contract/Supply Order which one (or more) of these stages can be dispensed with. The formats and standard conditions of contract, all of which are committee could quickly ask for suggestions from various A final word stakeholders as regards dispensability of any of these steps and common to all types of revenue and capital contracts. [The Request for Proposal and Contract/Supply Order formats The best of rules, regulations and procedures can be brought to a take a considered view on this as well as on the possibility of could also be combined in a single Tender Document] naught by tardy decision-making which has been the bane of bringing about some sort of commonality with the stages in A question before the review committee is whether the DPP and defence procurement all along. Improvement in the policy, revenue procurement. DPM should be combined into one document. Though there are Annexures procedure and processes will help, but the ultimate test of their string reasons for doing so, it would be impractical to combined efficacy will be the impact it has on decision-making, which pre- hInstructions on Rate Contracts It is tempting to reiterate that it would have been ideal to carry out them. Only the MoD and the Services Headquarters are involved supposes the existence of a strong mechanism for real-time a comprehensive review of not just the DPP and the DPM but also in capital procurement. They are the only ones who will need to hGuidelines for selection of the mode of tendering redressal of grievances of the vendors something that is non- the procurement procedures promulgated by the DRDO and the refer to the DPP. The DPM, on the other hand, contains the hOrders on product reservation and price/purchase preference existent at present and which does not seem to be on the agenda of Ordnance Factory Board (OFB). procedure for revenue procurement which is meant to be adopted the review committee. by all procuring agencies from MoD down to the farthest units, The content in DPM 2009 that describes the legal aspects of a

Defence ProAc Biz News (26) (27) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 The review committee (including its several sub-committees) is formations and establishments of the armed forces and the Indian contract, variety of banking instruments, procedure for opening Review of the existing processes probably looking at these policies, but primarily from the point of Coast Guard. On the balance, there seems to be little justification of letters of contract, registration of vendors, etc., can go into the This is the third and the most crucial aspect of the ongoing review. view of the procedures associated with implementation of these for combining these two into one single document, which will Defence Procurement Primer as it would be of interest to all There is a process associated with every stage in the procurement policies. This should help, though it would have been ideal to inevitably become voluminous. officials who are involved in procurement, whether under the cycle. Absence of Standard Operating Procedures (SOP) or carry out a zero-based review of the policies at the conceptual revenue of capital stream. Standing Instructions (SI) or any ambiguity in them can delay or level. For example, the offset policy serving the purpose for There is, in any case, a need to edit the text of these documents derail the proposal at any stage. Let us take the example of the which it was introduced more than a decade back. A study of the more so if these are to be combined to remove redundancy, bring The illustration given above is only to give an idea of the very first stage at which a Request for Information is to be issued. ongoing offset contracts carried out by the Institute of Defence about textual clarity and ensure proper sequencing of the possibility that exists to make the procurement manuals not only The process laid down in Chapter II of DPP 2016 does not Studies and Analyses some time back would come in handy if any contents. A lot of material in the procurement manual, especially lean and thin, but more precise and user-friendly. Similar envisage involvement of all the Services Headquarters at the such zero-based review is to be carried out. in the DPM, is not of immediate relevance, though it may have possibilities can be explored in relation to the DPP also, with the initial drafting stage. Nor does it envisage collegiate approach to good educative value. Such material can be culled out from both focus on issues that are common to both the manuals, of which the its preparation. The implication is that on-paper consultation Apart from subjecting all procurement and production policies to the documents and included in a Defence Procurement Primer for existing system of registration of vendors and agents is a burning between the initiating Service Headquarters and other agencies, zero-based review, it is also important to synchronise various education and training and of the procurement of officials. example. There is considerable ambiguity on these issues. The such as the DRDO, DDP and Headquarters Integrated Defence policies and schemes, such as the DTF, that are being Possibility of laying down standard formats - and combining committee would do well to evolve a simple procedure for Staff could take a long time, and consideration of the question administered by departments other than the Department of them wherever they already exit also needs to be explored with registration, if considered necessary (which too is an issue that whether other services also need the same/similar Defence (DoD) in the MoD. If, for all instructions being incorporated in merits consideration). equipment/capability gets deferred to a later stage. This can be example, development and production those formats. The use of standard streamlined simply by providing for participation of all the of raw material that goes into formats does not take away the One more point needs to be made in the context of review of the services (including the Indian Coast Guard) right from the initial manufacturing of aircrafts and ships is The tardy decision-making flexibility to customise its contents, existing procedures, which concerns the stages in the stage and collegiate vetting of the Request for Information. to be encouraged with a view to has been the bane of defence except for the standard clauses. procurement cycle. It is not uncommon to hear the criticism that minimising dependence on foreign procurement all along. there are far too many stages that all procurement proposals, Another example of this would be contract negotiations. The sources, the Capital Acquisition Wing Just to illustrate, there are 15 chapters especially those related to capital acquisition, have to go through Improvement in the policy, existing instructions regarding initial costing and benchmarking (under the DoD) has to function in in DPM 2009 which could be reduced in what at times is sardonically described as a game of snakes and are arguably very tenuous. So is the case with the instructions on procedure and processes will tandem with the DRDO which must to six as follows: ladder. The procurement stages given in DPP 2016 are as follows: contract negotiations, assuming the officials involved in play a key role in development of help, but the ultimate test of (A) Request for Information negotiations are well trained for the job. These factors could specialised defence material through their efficacy will be the Chapters (B) Services Qualitative Requirements potentially slow down the progress of a procurement case at the its Defence Metallurgical Research impact it has on decision- (A) Introduction (C) Acceptance of Necessity negotiations stage. The answer lies in laying down a detailed Laboratory (DMRL) and by making. (B) Procurement Procedure (stages) (d) Solicitation of offers costing methodology, specific to defence acquisitions, a detailed encouraging private entrepreneurs (C) Repair and Maintenance (E) Evaluation of Technical Offers by the Technical Evaluation procedure for determination of a reasonable price before opening through the DTF scheme. Such an Contract Committee of the commercial bids, and a drill for conducting contract effort will also require coordination (D) ICT Contracts (F) Field Evaluation negotiations. with the DDP, which administers Mishra Dhatu Nigam (E) Consultancy Contracts (G) Staff Evaluation (MIDHANI) the premier DPSU involved in production of (F) Non-consultancy (outsourcing) Contracts (H) Oversight by Technical Oversight Committee, if required These are just two examples of what needs to be done as regards specialized metals and metal alloys manufacturing facility in (I) Commercial Negotiations by the Contract Negotiation refinement of the processes. This applies to practically each stage India. [The chapter on Design, Development and Fabrication Contracts Committee in the procurement cycle, especially those that are most can be combined with the chapter on Make Procedure in the DPP.] (J) Approval of the Competent Financial Authority vulnerable, such as formulation of the Services Qualitative Review of the existing procedures (K) Award of Contract/Supply Order Requirements, evaluation of technical offers and field evaluation. A joint review of the DPP and DPM has many advantages. Formats with all related instructions (L) Contract Administration and Post-contract management The MoD and Services Headquarters can identify the problem Several procedures, such as solicitation of information through (A) Statement of Case areas based on their past experience and formulate instructions on Request for Information (RFI), tendering, contract negotiation, (B) Request for Information These stages have been identified based on experience and have the process to be followed at every stage as a part of the etc. are common to both these documents. A joint review will (C) Request for Proposal remained unchanged for some time. It is difficult to imagine committee's deliberations. ensure procedural uniformity as well as uniformity of various (D) Contract/Supply Order which one (or more) of these stages can be dispensed with. The formats and standard conditions of contract, all of which are committee could quickly ask for suggestions from various A final word stakeholders as regards dispensability of any of these steps and common to all types of revenue and capital contracts. [The Request for Proposal and Contract/Supply Order formats The best of rules, regulations and procedures can be brought to a take a considered view on this as well as on the possibility of could also be combined in a single Tender Document] naught by tardy decision-making which has been the bane of bringing about some sort of commonality with the stages in A question before the review committee is whether the DPP and defence procurement all along. Improvement in the policy, revenue procurement. DPM should be combined into one document. Though there are Annexures procedure and processes will help, but the ultimate test of their string reasons for doing so, it would be impractical to combined efficacy will be the impact it has on decision-making, which pre- hInstructions on Rate Contracts It is tempting to reiterate that it would have been ideal to carry out them. Only the MoD and the Services Headquarters are involved supposes the existence of a strong mechanism for real-time a comprehensive review of not just the DPP and the DPM but also in capital procurement. They are the only ones who will need to hGuidelines for selection of the mode of tendering redressal of grievances of the vendors something that is non- the procurement procedures promulgated by the DRDO and the refer to the DPP. The DPM, on the other hand, contains the hOrders on product reservation and price/purchase preference existent at present and which does not seem to be on the agenda of Ordnance Factory Board (OFB). procedure for revenue procurement which is meant to be adopted the review committee. by all procuring agencies from MoD down to the farthest units, The content in DPM 2009 that describes the legal aspects of a

Defence ProAc Biz News (26) (27) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 14th Battalion The Mahar Regt. The first batch of stalwarts Golden Jubilee Celebrations

Some of heroes from battalion The best bn in combat competence in division

Defence ProAc Biz News (28) (29) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 14th Battalion The Mahar Regt. The first batch of stalwarts Golden Jubilee Celebrations

Some of heroes from battalion The best bn in combat competence in division

Defence ProAc Biz News (28) (29) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 COVER STORY

spending in R&D is around 1 percent Government's spending is 2 vibrant domestic defence manufacturing which will not only Start-Ups and Innovation in Indian Defence Sector: to 3 times more than that of Industry's. The situation may be build strategic domestic depth but also enhance economic ascribed to the Government investing into the DRDO where a advantage, further accentuating the job creation. The kind of lethargy has always existed with no result-oriented Government primarily aims at creation of an ecosystem to foster Beginning of a New Era ? approach. Instead, the private sector should be encouraged to take innovation and technology development in Defence and over. Aerospace (D&A) by engaging Industries including MSMEs, There is also disproportionate amount of money being spent on start-ups, individual innovators, R&D institutes & academia, and The future of defence ecosystem is technological innovation and there is surely a huge demand for Government R&D. The country spends about 60% of the total provide them grants/funding and other support to carry out R&D such start-ups. The Author analyses the Government's initiatives in this regard. spent on R&D in the Government sector itself whose track record which has good potential for future adoption for Indian defence Ritika Behal of innovation is poor as compared to private sector. In all other and aerospace needs. The emerging elements of Innovation in countries, private investment into R&D exceeds those by the Defence is depicted below- nnovation and technology is the mainstay of an effervescent Thus, at the macro level, the country is still at the 'catch-up' mode. defence ecosystem of any country, and often lie down in The major limitation of the present system is that the country Principal Elements of Indian Defence Innovation Istart-ups which are the hubs for fostering them. The imports technology, tries to indigenize and by the time advantage of engaging startups stem from identifying and filling indigenization takes place, the new one has already come. in the technological gap with innovative cost effective ideas and Consequently, India's focus on indigenization cannot be ability to absorb cutting edge technology in product design and completed unless startups and adoption of innovation/innovative manufacturing coupled with having the ability to adapt quickly to technologies are included in the supply chain. changing needs of customer. The start-ups basically spur fast- moving innovation in the defence sector. Innovation in defence Why Lack of Innovation? can be understood as the creation of application of new/advanced India's position in global innovation index has been sliding year products, services, processes or technologies and also adding on year basis. The key reason is that India's Research & value for application of an existing technology to a different Development (R&D) investments in knowledge and innovation problem or domain, aimed at enhancing military capabilities. At ecosystem are not proportionate with India's economic present, world over, especially in Israel and US, start-ups have development. The Defence Research and Development emerged as focal point in driving innovation in military Organization (DRDO) and certain private sector defence technology. companies involved in defence R&D in military technology lack in innovation and are further constrained by the lack of an Indian Defence Sector & Start-ups effective ecosystem and inadequate investment on R&D. India's India, as on date, is lacking in the start-ups for defence spending on defence R&D is about 0.8 per cent of GDP which is technologies. At present, the start-ups in defence sector are few well below that in major nations such as Israel, Korea, Japan, US and those who have ventured are seen to be struggling to survive China and Germany. Refer Graph. the adverse business atmosphere of the defence sector. This has Source: Q-Tech Synergy resulted in absence of having a strong a vibrant Defence Industrial Base (DIB) and achieving technology self-reliance. Resultantly, Government. For ex. global OEMs like SAAB, Lockheed Martin, Technology Development Fund (TDF) India imports around 60-70 percent of defence and Boeing spend around 10-15% of their profits into their R&D Established by Ministry of Defence (MoD) and executed by weaponries/technologies with the country spending close to USD segment. If Indian private manufacturers are to thrive, then the DRDO with the aim to promote self-reliance in Defence 6-7 billion every year making India one of the largest arms Government must encourage private Technology as a part of the 'Make in importer of defence systems. Furthermore, these defence systems investment and provide funding for India' initiative. The scheme purchased are vulnerable to denial of transfer of technology (ToT) R&D purpose to spur innovation. encourages participation of and at times sanctions making India dependent. The Government Government now has public/private industries especially sector in defence design and production worked in closed Building Momentum in Defence stepped up its support for MSMEs so as to create an eco- compartment and DPSUs / OFB mainly relied on “Built to Print” Innovation start-ups aiming not only in system for enhancing cutting edge production. They were engaged on taking all the limelight for In a radical change from past making the nation self reliant technology capability for defence producing even some less critical defence items and thus, relied practices, the Government now has in military technology but application. TDF is limited to the on imports for most of their parts and didn't look to break that stepped up its support for start-ups also to innovate for the development of technologies or cycle as they would have to go through the mammoth process of aiming not only in making the nation future coupled with exporting prototype that will form the kernel of getting it re-certified. The production agencies have been self reliant in military technology but of the developed innovative components/assemblies, which will spending lot of amount to fix their own manufacturing processes Source: Q-Tech Synergy also to innovate for the future coupled defence technologies in in turn be used to develop defence and not for the product upgradation and innovation or R&D with exporting of the developed coming years. e q u i p m e n t / s y s t e m s / s u b - programmes. The private industry was tacitly blocked till 2001 Furthermore, in all these countries (except China), industry innovative defence technologies in systems/platforms of product having from defence production citing security concern but now is spends more than Government in R&D - in some countries, even coming years, thereby creating a potential use for the Services. getting involved actively in defence programmes. three times more than Government spending. In India, while total

Defence ProAc Biz News (30) (31) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 COVER STORY

Defence ProAc Biz News (30) (31) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 Typically, projects under TDF will not exceed a development and Security. The Ministry also runs an annual 'Defence India The Government has also introduced 'Make-II (Industry Way Ahead period of two years. The funding is provided through the Startup challenge' (DISC-I & DISC-II have been conducted till Funded)' program, under which the start-ups are allowed to use Technology start-ups are the new face of India and can provision of grants to public and private sector industry including date) envisaged to enable calling for proposals to address specific their own financial resources to participate in prototype successfully enhance India’s its technological competence. On MSMEs (up to 90% of project cost) that may work in technological needs of the Indian Defence Establishment. development of equipment and parts and components, largely for the backdrop of this, the Defence Ministry has reserved defence collaboration with academic or research institutions to carry out Applicants showing capability, intent, and promise to be able to import substitution. Successful prototyping will lead to modernization projects worth Rs 500 billion ($7 billion) for innovation, research and development with a limit of INR 10 produce functional prototypes or to productize existing guaranteed and time-bound order. There is also a provision for the startups. It would also be setting up five more defence innovation Crores per project. Such chosen entities will be referred to as technologies will be awarded up to Rs. 1.5 Crores, strictly on a industry, including start-ups, to submit suo moto proposals for the hubs across the country by 2024, in addition to the existing ones at Development Agencies (DAs). In cases where academia or milestone basis in the form of grant/equity/debt/other relevant consideration of the government. A list of Make-II projects is Tamil Nadu and Maharashtra. The MoD would also conduct more research institutions are involved, their work involvement cannot structures. Till date, a total of 44 Winners have been shortlisted in available at http://makeinindiadefence.gov.in/projects/ defence startup challenges for startups, in line with the two that exceed 40% of the total efforts required. the DISC-I and DISC-II challenge to be considered for grant of projectlist /2 /1 were held. However, with so many start-up initiatives/policies funds for prototype development and possible commercialization from Government's end, it has become a bit chaotic and complex Certain projects have been identified for the Technology thereafter under Support for Prototype and Research Kickstart (in Success Story for the novices as to whom to approach and where to go. It would Development Fund (TDF) plan, in which the Government will Defence) programme. Following are the technologies that will be The future of defence ecosystem is technological innovation and have been more appropriate if the Government would have fund the development of technologies or a prototype by selected funded by the iDEX and developed by various there is surely a huge demand for such start-ups. There is synchronized the policies and schemes like maybe coming out companies that has to be completed within two years. Some of the individuals/companies: definitely a momentum seen in the last two-three years with the with a comprehensive policy rather than so numerous schemes upcoming projects under the scheme consist of: hIndividual Protection System emergence of some defence specific start-ups providing and policies. Also there is no tangible progress seen with regards innovative solutions for our Armed Forces. certain success story to these initiatives. hDevelopment of secure, customized 3G/LTE end-points hSee Through Armour (Handsets/Dongles) for a captive mobile network in the domain are: hCarbon Fibre Winding The Government needs to follow/implement 'Make in India' into hDevelopment of Pulse TWT for ELTA ASPJ hIdeaforge, a Mumbai based startup by a team of IIT graduates, hActive Protection System developed UAV Netra that has equipped the border patrolling practice in future as well coupled with acting as a catalyst to help hUse Of Composite Technology for Bottles Storing HP/LP Air start-ups cross the inherent entry level barriers specific to this hSecure Hardware Encryption Device forces. And Other Gases (CO2, Oxygen, Nitrogen etc) sector. An example should be taken from Israel which perfectly Tonbo imaging, a Bangalore based startup provides digital hDevelopment of Robotic Solution for disposal of misfire h4G/LTE Tactical LAN h blended military technology and innovation, emerging imaging systems for military uses. It provides strategic ammunition hDesalination/Bilge-Oily water separation principally from start-ups, resultantly, making the county an electronics and immersive surveillance for military advanced, and high-technology defence global centre. There is hDevelopment of Indigenous Waterjet Propulsion System hAI SCM & Logistics applications. also a need from the Government side to cater towards the many (WJPS) hUnmanned Surface/Underwater Vehicles GPS Anti Jam hA medical technology firm, Axio Biosolutions supplies internal and external challenges faced by the Startups and hDevelopment of CW TWT for ELTA ASPJ system Device emergency bleeding control solution to the Indian Army. MSMEs in order to spur fast-moving innovation in the Indian hDevelopment of Amplidyne hData Analytics for Air Trajectory hAdayah Aerospace, an aerospace and defence technology defence sector. Refer Fig. Also, there is lack of interaction between the start-ups and defence forces to understand their hGun Raising, Lowering & Leveling Mechanism for L-70 Gun hIllegal usage of Drones startup, is engaged in manufacturing electro-optics systems, control actuation systems and electromagnetic actuators for challenges and build the solutions which needs to be addressed at hRADAR - IQ Signal Generator the earliest. Defence Innovation Fund Indian Air Force and border patrolling forces. hRemotely Piloted Airborne Vehicles To encourage startups is Defence Innovation Fund (DIF) a hSankhyalabs, a Bangalore based startup has developed an maximum corpus of Rs 100 Crores is allocated to identify, hIndividual Protection System electronic system which enables Indian Navy and Coast Guard promote and fund research and innovation in the private sector. to monitor traffic in the sea to avoid any casualties. The Scheme is proposed to be implemented through Defence The Defence Ministry had also identified six partner incubators Innovation Organization (DIO) which is funded by two DPSUs, across the country including Forge, Kalyani to support these namely Hindustan Aeronautics Limited (HAL) and Bharat startups. AIM will provide a grant in aid of Rs 10 Cores to each Electronics Limited (BEL). incubator center for 5 years to cover the capital and operational expenditure in running the center. Innovations for Defence Excellence (iDEX) Further, in Oct 2019, the Government has notified special Launched by the Government in April 2018, iDEX is funded and exceptions in its defence procurement policy to promote startups managed by a 'Defence Innovation Organization (DIO)'. It and will encourage them to bid for contracts valued less than Rs basically functions as the executive arm of DIO, carrying out all 150 Crores without the burden of providing financial credentials the required activities while DIO will provide high level policy if they can prove technical expertise. It has also made a clear guidance to iDEX. distinction between startups and new entrants in the field, ruling that mid to large sized groups venturing into defence Defence India Startup Challenge (DISC) manufacturing will still need to meet financial criteria that Initiative of iDEX initiative launched by MoD in partnership with include credit ratings, revenue and net worth. While startups will 'Atal Innovation Mission (AIM)', aimed at supporting be encouraged for the smaller contracts, larger procurement plans Startups/MSMEs/Innovators to create prototypes and/or will require companies to qualify in several parameters. commercialize products/solutions in the area of National Defence Source: Q-Tech Synergy

Defence ProAc Biz News (32) (33) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 Typically, projects under TDF will not exceed a development and Security. The Ministry also runs an annual 'Defence India The Government has also introduced 'Make-II (Industry Way Ahead period of two years. The funding is provided through the Startup challenge' (DISC-I & DISC-II have been conducted till Funded)' program, under which the start-ups are allowed to use Technology start-ups are the new face of India and can provision of grants to public and private sector industry including date) envisaged to enable calling for proposals to address specific their own financial resources to participate in prototype successfully enhance India’s its technological competence. On MSMEs (up to 90% of project cost) that may work in technological needs of the Indian Defence Establishment. development of equipment and parts and components, largely for the backdrop of this, the Defence Ministry has reserved defence collaboration with academic or research institutions to carry out Applicants showing capability, intent, and promise to be able to import substitution. Successful prototyping will lead to modernization projects worth Rs 500 billion ($7 billion) for innovation, research and development with a limit of INR 10 produce functional prototypes or to productize existing guaranteed and time-bound order. There is also a provision for the startups. It would also be setting up five more defence innovation Crores per project. Such chosen entities will be referred to as technologies will be awarded up to Rs. 1.5 Crores, strictly on a industry, including start-ups, to submit suo moto proposals for the hubs across the country by 2024, in addition to the existing ones at Development Agencies (DAs). In cases where academia or milestone basis in the form of grant/equity/debt/other relevant consideration of the government. A list of Make-II projects is Tamil Nadu and Maharashtra. The MoD would also conduct more research institutions are involved, their work involvement cannot structures. Till date, a total of 44 Winners have been shortlisted in available at http://makeinindiadefence.gov.in/projects/ defence startup challenges for startups, in line with the two that exceed 40% of the total efforts required. the DISC-I and DISC-II challenge to be considered for grant of projectlist /2 /1 were held. However, with so many start-up initiatives/policies funds for prototype development and possible commercialization from Government's end, it has become a bit chaotic and complex Certain projects have been identified for the Technology thereafter under Support for Prototype and Research Kickstart (in Success Story for the novices as to whom to approach and where to go. It would Development Fund (TDF) plan, in which the Government will Defence) programme. Following are the technologies that will be The future of defence ecosystem is technological innovation and have been more appropriate if the Government would have fund the development of technologies or a prototype by selected funded by the iDEX and developed by various there is surely a huge demand for such start-ups. There is synchronized the policies and schemes like maybe coming out companies that has to be completed within two years. Some of the individuals/companies: definitely a momentum seen in the last two-three years with the with a comprehensive policy rather than so numerous schemes upcoming projects under the scheme consist of: hIndividual Protection System emergence of some defence specific start-ups providing and policies. Also there is no tangible progress seen with regards innovative solutions for our Armed Forces. certain success story to these initiatives. hDevelopment of secure, customized 3G/LTE end-points hSee Through Armour (Handsets/Dongles) for a captive mobile network in the domain are: hCarbon Fibre Winding The Government needs to follow/implement 'Make in India' into hDevelopment of Pulse TWT for ELTA ASPJ hIdeaforge, a Mumbai based startup by a team of IIT graduates, hActive Protection System developed UAV Netra that has equipped the border patrolling practice in future as well coupled with acting as a catalyst to help hUse Of Composite Technology for Bottles Storing HP/LP Air start-ups cross the inherent entry level barriers specific to this hSecure Hardware Encryption Device forces. And Other Gases (CO2, Oxygen, Nitrogen etc) sector. An example should be taken from Israel which perfectly Tonbo imaging, a Bangalore based startup provides digital hDevelopment of Robotic Solution for disposal of misfire h4G/LTE Tactical LAN h blended military technology and innovation, emerging imaging systems for military uses. It provides strategic ammunition hDesalination/Bilge-Oily water separation principally from start-ups, resultantly, making the county an electronics and immersive surveillance for military advanced, and high-technology defence global centre. There is hDevelopment of Indigenous Waterjet Propulsion System hAI SCM & Logistics applications. also a need from the Government side to cater towards the many (WJPS) hUnmanned Surface/Underwater Vehicles GPS Anti Jam hA medical technology firm, Axio Biosolutions supplies internal and external challenges faced by the Startups and hDevelopment of CW TWT for ELTA ASPJ system Device emergency bleeding control solution to the Indian Army. MSMEs in order to spur fast-moving innovation in the Indian hDevelopment of Amplidyne hData Analytics for Air Trajectory hAdayah Aerospace, an aerospace and defence technology defence sector. Refer Fig. Also, there is lack of interaction between the start-ups and defence forces to understand their hGun Raising, Lowering & Leveling Mechanism for L-70 Gun hIllegal usage of Drones startup, is engaged in manufacturing electro-optics systems, control actuation systems and electromagnetic actuators for challenges and build the solutions which needs to be addressed at hRADAR - IQ Signal Generator the earliest. Defence Innovation Fund Indian Air Force and border patrolling forces. hRemotely Piloted Airborne Vehicles To encourage startups is Defence Innovation Fund (DIF) a hSankhyalabs, a Bangalore based startup has developed an maximum corpus of Rs 100 Crores is allocated to identify, hIndividual Protection System electronic system which enables Indian Navy and Coast Guard promote and fund research and innovation in the private sector. to monitor traffic in the sea to avoid any casualties. The Scheme is proposed to be implemented through Defence The Defence Ministry had also identified six partner incubators Innovation Organization (DIO) which is funded by two DPSUs, across the country including Forge, Kalyani to support these namely Hindustan Aeronautics Limited (HAL) and Bharat startups. AIM will provide a grant in aid of Rs 10 Cores to each Electronics Limited (BEL). incubator center for 5 years to cover the capital and operational expenditure in running the center. Innovations for Defence Excellence (iDEX) Further, in Oct 2019, the Government has notified special Launched by the Government in April 2018, iDEX is funded and exceptions in its defence procurement policy to promote startups managed by a 'Defence Innovation Organization (DIO)'. It and will encourage them to bid for contracts valued less than Rs basically functions as the executive arm of DIO, carrying out all 150 Crores without the burden of providing financial credentials the required activities while DIO will provide high level policy if they can prove technical expertise. It has also made a clear guidance to iDEX. distinction between startups and new entrants in the field, ruling that mid to large sized groups venturing into defence Defence India Startup Challenge (DISC) manufacturing will still need to meet financial criteria that Initiative of iDEX initiative launched by MoD in partnership with include credit ratings, revenue and net worth. While startups will 'Atal Innovation Mission (AIM)', aimed at supporting be encouraged for the smaller contracts, larger procurement plans Startups/MSMEs/Innovators to create prototypes and/or will require companies to qualify in several parameters. commercialize products/solutions in the area of National Defence Source: Q-Tech Synergy

Defence ProAc Biz News (32) (33) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 POLICY

While India exported forging equipment, electronic assemblies, entire process of taking permission from the government will flight control panels to the US, it sold transmitting tubes to the UK thereby be further reduced. and MIG and Sukhoi 30 aircraft spares and services to Russia. Defence Exports: However, it is worth mentioning that most of the exports from For acquiring the export licence, it would be mandatory for an India till date are for components (around 85-90%) with parts for applicant to have an Import-Export Certificate. The quarterly and small arms topping the chart. All types of components made by end of the year reports on all the transactions done under OGELs Indian defence production units are being bought by companies should be submitted to DPP for examination and post-export Gaining Momentum worldwide. This clearly indicates that the Indian Defence verification. Both the state-run and private industries have been Industrial base (DIB) has the capability to fulfill the requirements seeking liberalization of the rules, and hence the Defence of global Original Equipment Manufacturers (OEMs) and not just Ministry's approval, another effort to ameliorate the country's the own requirements. defence export figures. There is however some grey areas in the OGEL notices issued. The notices have made it mandatory that Taking the growth momentum in defence exports further, the the exporting company have an appropriate/certified Internal Government has come up with a recent licencing procedure- Compliance Programme (ICP) or an Export compliance 'Open General Export License' (OGELs). Implementation of this programme of its own. This terminology is vague and the Col Ajit Singh (Retd.) is expected to give India added access to the global market as requirements of the programme need to be clarified. Another grey A vibrant domestic defence manufacturing will build strategic domestic depth while also enhance the export potential for blanket permissions will be given on select items; thereby further area is the requirement that the exporting company has to certify economic advantage, further accentuating the job creation. increasing the defence exports exponentially. The Ministry of that they have internal controls in place to prevent transfer of Defence (MoD) has issued two goods to countries/ entities facing here has been a seven-fold increase in defence exports of for the Indian private defence manufacturers, at present bout 50 notices on issue of Open General UNSC sanctions or arms embargo. India over the last two years and this can be attributed to Indian companies in the private sector have contributed to Export Licences for export of certain The notice already specifies a very Tthe liberalization of procedures, including online defence exports with their share gradually increasing in the total parts and components and intra- One of the most important limited number of countries for clearance of proposals by the Government. The momentum seen defence exports year on year. Refer Fig. company transfer of technology to pre-requisite for any which an OGEL would be issued. in defence exports from India in the year 2018-19 stands at Rs select countries including Belgium, enterprise aiming for an The importing entity would be Defence Export During Last 3 Years 10745 Crores doubled as compared to Rs 4682 Crores in 2017-18 France, Germany, Japan, South Export market is to become providing an End User Certificate in (Public Vs Private Sector) Africa, Spain, Sweden, UK, USA, globally competitive, have which the end user country of the with 90 percent of the products as components. Refer Fig. 1200 Basically, the recent trend of growth in exports can be attributed Canada, Italy, Poland and Mexico. technical capability & final product would be specified. It The items permitted under OGEL is not possible for the exporting to the low cost of production in India and discharge of offset 1000 932.86 capacity to produce. obligations; however there is a need for a lasting commitment. includes components of ammunition Indian Company to verify that the 9812.91 and fuse setting devices without importing entity has not deviated s 8000 e Defence Exports (2016-2019 Sep) r energetic and explosive material, from the End User Certificate. Also o r

In Rs Crores) C firing control and related alerting and warning equipment and the list of countries/entities which are under UNSC sanctions is 6000 s

R 306.46 12000 related systems and body protective items. The Transfer of not available in the public domain. It would also be modified n I 4000 1519.2 Technology (ToT) to the countries is subject to the condition that periodically. It would not be practical for an Indian company to 10000 10745 10596 4094.88 the export is an intra-company transfer from an Indian subsidiary keep up with these details. 2000 1327.51 3163.16 (applicant exporter) to its foreign parent company to subsidiaries 8000 of the foreign parent company. Further, OGELs will be one-time, Globally, in 2018, amongst the top ten world exporters of defence 6000 0 194.35 for two years, and granted by the Department of Defence items, India ranked 21st with cumulative exports of USD 118 2016-17 2017-18 2018-19 2019-20 Production (DPP) but on a case to case basis. Million and a share of 0.8% in total exports of arms and 4000 4682 4404 (Sep 2019) ammunition; parts and accessories thereof during the same Export Authorization to Private Companies 2000 This new licencing regime is aimed at supporting access of local period. The biggest contributor to Indian has been the US, 1521 Export by DPSU/OFB defence companies to international markets and further accounting for nearly Rs 5000 Crores worth of exports with a 0 promoting industrial competitiveness by looking for newer share of around 38%, followed by Israel with 26%, Myanmar Achieved In Progress Source: https://ddpdashboard.gov.in/ & platforms and avenues. Earlier the exporting Indian company had with 4.2%, France with 4.2%, Czech Republic with 4.2%. 2019-20 Compiled by Q-Tech Synergy 2016-17 2017-18 2018-19 to give an End User Certificate duly signed by the importing Further, in the past, India's defence exports have ranged between Source: https://ddpdashboard.gov.in/ & India has ambitious defence export targets. According to a Draft company. The certificate contained the details of the items being 1.5-2.4 percent of the total production, with an import: export Compiled by Q-Tech Synergy Defence Production Policy in 2018, the Government's aim is to exported, their quantity and cost, the purpose for which they ratio of 194:1, as compared to 1.3:1 in the case of Israel, 8.8:1 in achieve yearly exports worth Rs 35000 Crores (USD 5 billion) by would be used and the final end user which had to be a the case of South Korea and 19.7:1 in the case of Singapore. Noteworthy, earlier, the exports from Defence Public Sector 2024. Presently, the major defence items being exported consist government entity. If the item being exported was a complete Thus, there is a long way to go. Units (DPSUs) were not permitted unless the domestic demand of of Personal Protective items, Offshore Patrol Vessels, ALH system, the End user Certificate had to be signed by the the Armed Forces had been fully met. However, now they have Helicopter, SU Avionics, Bharati Radio, Coastal Surveillance Government of the importing company. Now only certain critical Export Potential been given a 10% dispensation for exports. Government is aiming Systems, Kavach MoD II Launcher and FCS, Spares for Radar, items, which use sensitive Indian technology, need the foreign A vibrant domestic defence manufacturing sector will build to achieve one-fourth of the turnover by DPSU from exports. As Electronic System and Light Engineering Mechanical Parts etc. government's countersignature in the end-user certificate. The strategic domestic depth in key sectors and also allow the

Defence ProAc Biz News (34) (35) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 POLICY

In Rs Crores) C firing control and related alerting and warning equipment and the list of countries/entities which are under UNSC sanctions is 6000 s

Defence ProAc Biz News (34) (35) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 economy to tap into export potential in the defence sector. This become part of global supply chain. would be further beneficial not only in terms of improving export- hThe Government needs to address the impediments for import balance, but also further accentuating the job creation defence exports and incentivize the private industries. potential of the sector. The Ministry of Defence is looking to go beyond exporting components mainly and is keen that the public hPublic sector needs to be competitive rather than being and private sector should now focus on exporting include nominated. bridging equipment, missiles, warships, Off-Shore Patrol Vessels hEncourage and give incentive for the collaboration between (OPVs), Self Propelled Artillery Guns (SP Guns). Thus, in efforts the Public & Private sector companies for defence exports to boost international sales, the MoD has identified 85 target based on a PPP model. countries. These countries have been classified as per the hMost of the infrastructure & facilities are under Government possibility of exports. Refer below given Figure. The scheme will domain which needs to be shared/made available to private play a catalytic role in addressing interventions required for players as export can take place only for tested and proven exploring new markets and promoting export-oriented activities equipment. by defence attaches in the countries to which they are attached.

hThose countries that are deemed to have “significant export potential and where substantial exports have already taken place”. CATEGORY ‘A’ hCovers 23 countries including Egpt, Malaysia, Nigeria, Saudi Arabia, Thailand, Turkey, U.K, U.S and Uzberkistan. hFor this category, defence attaches will get $50000 annually.

hThose countries where “the possibility of exports exists”. CATEGORY ‘B’ hCovers 17 countries, including Australia, France, Indonesia, Japan, Kenya, the Philippines, Qatar, South Korea and Sweden.

hThose countries that have “limited possibilities for exports”. CATEGORY ‘C’ hCovers the remaining 45 countries including Belgium, Brazil, Greece, Hungary, Israel, the Netherlands, Poland, Portugal and Russia.

Source: Ministry of Defence and compiled by Q-Tech Synergy

Thrust on defence exports bring in economical advantage, it will Conclusion also help India build its might in the region. DRDO is looking at India's defence export performance is making a steady progress opportunities to export previous versions of defence products, as and need boost in terms of incentives. The “Make in India” it makes better or advanced versions for indigenous consumption. programme for defence equipment is likely to be viable only, if DRDO even keen to design and develop exclusively for there is a significant export component to it; the requirements of somebody at lower costs. As indigenous production move the Indian Armed Forces alone are unlikely to provide the towards upgrades of their products, the early versions could be economy of scale. Until now arms exports were moot given the customized and offered along with technologies to friendly and ineffective public sector units, which can barely provide the neighboring countries. requirements of the armed forces but as private companies are stepping in, defence exports is seeing a new beginning. Further, Way Forward there is need to invest in Research and Development (R&D), One of the most important pre-requisite for any enterprise aiming production facilities and maintaining quality standards to contend for an Export market is to become globally competitive, have on platforms globally, coupled with strong export policies technical capability & capacity to produce. It requires following beneficial for defence production units to ensure defence exports steps: continue to grow exponentially. hThe Indian defence industry needs to invest in industrial and technological capabilities with increased capacity to be able to

Defence ProAc Biz News (36) Nov-Dec 2019 POLICY OGEL for Defence Products: Some Issues

By Team Q-Tech

The notifications issued likely to have a positive impact, however certain features of the scheme could create hurdles and needs to be addressed by MoD. The impact will depend though on how the provisions are implemented.

inistry of Defence (MoD) notified two Open General OGEL and failure on the part of the exporter to use it correctly Export License (OGEL) schemes the one OGEL is may lead to suspension or withdrawal of the authorisation by Mintended to promote the export of some parts and the DDP. No audit drill is prescribed in the notifications and components of defence equipment such as components of there is no clarity what would constitute 'correct' usage of the ammunition and fuse setting devices without energetic and OGEL and how will the DDP ensure it. explosive material, firing control and related altering and warning hThe exporter will be required to submit an end-of-the-year equipment and related systems, and body protective items. While report, in addition to the quarterly reports, on all transactions the other would facilitate export or transfer of software and done under the OGEL for examination and post-export technology by an Indian subsidiary to its parent company abroad verification by the DDP. This goes against the grain of or another subsidiary of the parent company. The notifications simplification of processes and digitisation, which are critical specify the kind of software, technology and components that can for promoting ease of doing business. be exported, as also the conditions to be complied with, the The authorisations under the OGEL scheme are to be valid for records to be kept, and the reports to be submitted by the exporter. h two years from the time these are issued. It is difficult to understand the rationale underlying this limitation. If the The countries to which export would be allowed include applicant exporter has or is likely to secure, an export contract Belgium, France, Germany, Japan, South Africa, Spain, Sweden, which goes beyond two years, he/she will be forced to re-apply UK, USA, Canada, Italy, Poland and Mexico. Two of India's despite regular reporting of transactions every quarter. major defence partners, Russia and Israel, do not figure in this list. Export or a transfer would also not be permitted under the hThe export authorisations under the OGELs are liable for OGEL to any Special Economic Zone. These notifications have recall/termination by the DDP on account of an adverse report been issued in response to a demand from the exporters and in respect of any of the export consignments, non-submission various stakeholders, however, certain features of the scheme of mandatory annual reports, non-compliance with the could create hurdles due to the provisions such as;- conditions for grant of the OGEL, or proliferation concerns. While the government is within its rights to recall or terminate hThose desirous of exporting software, technology, parts and the authorisation for breach of the prescribed terms and components will have to apply to the DDP for authorisation in conditions, it would be unfair to take such a drastic action terms of the OGEL. The notifications do not contain the without giving an opportunity to the exporter. No mechanism format in which the application is to be submitted and there is has been laid down for the aggrieved exporter to challenge no precise checklist of declarations to be made and documents even the rejection of the request, much less the recall or to be submitted by the applicant. termination of the authorisation. hSome provisions lend themselves to subjective interpretations. For example, there is a common provision in Hopefully the issues will be addressed by MoD and much will both the notifications which say that the competent authority depend though on how the scheme is implemented by the DDP. reserves the right to audit and ensure the correct usage of the

(37) Defence ProAc Biz News Nov-Dec 2019 DEVELOPMENT

on 24 October 2019. The projects include three short-term scrapped. projects, two mid-term projects and two long-term projects for co In some of the projects selected in the past India could only Tangible Results Under DTTI development. contribute a little on the name of “co-development, as in the case of aero engine technologies where US are way much ahead, while The near-term projects will move forward to a project agreement Indian entities are at an early stage of the learning curve, or to Foreign Military Sales (FMS) within “six months or so” and struggling to develop the Kaveri jet engine. The new approach for The role of DTTI in developing new areas of technology cooperation in the defence sector through co-development and co- the projects are:- the choice of products and technologies now being co-developed production assumes significance. However, it is yet yield any significant tangible results for the Defence Forces. hAir-launched small UAS, lightweight small arms technology recognizes that the Indian partner must bring credible project building rifles, carbines and machine guns and technological capability to the table. The OEM would never part with Intellectual Property (IP) that had cost billions to develop efence cooperation between the United States (US) and sophisticated science and technology cooperation and, thus, ammunition from lightweight polymer cast material. To this over decades at bargain price. The OEMs are guided by India is a strategic priority for both nations, but the pace assumes significance. The US said to have offered India some hi- regard, a deal has been signed in Feb 2019 by the Indian MoD commercial, not strategic, considerations as well US will not and scope of cooperation on defence technology and tech items of military hardware for co-production and co- with Sig Sauer, for 72,400 number of 7.62mm rifles worth Rs D easily grant export control licences for critical engine technology. trade has been obstructed by differing bureaucratic processes and development under DTTI. It would help United States to tap the 700 Crores. These assault rifles will suit the Army's In view of Indian requirements and on-going procurements of legal requirements. To end this, Defence Technology and Trade Indian market potential and at the same time, technology operational tactic of 'shoot to kill' instead of incapacitation. Fighter Aircraft, US at best may agree to transfer manufacturing Initiative (DTTI) was launched in 2012, by the US and Indian knowhow would make India less dependent on manufacturer at Governments to expedite the scope of cooperation on defence the time of repairing, upgrading and support. However, so far no technology. It is an unprecedented joint endeavor that brings project has been done under this mechanism.

Sig Sauer SIGM400 Assault Rifle

hIntelligence, Surveillance, Targeting and Reconnaissance line blueprints for building engines in India. This would provide (ISTAR) a command and control software that enables an edge to US in the procurement. Both countries have finalised coherent battlefield command. the Industry Security Annex (ISA) that will allow the US to safely transfer classified military technology to Indian private sector The mid-term projects are:- companies. ISA will be an adjunct to the Communications, Compatibility and Security Arrangement (COMCASA) which hMaritime domain awareness is termed “Sea Link Advanced both countries designed in September 2018. Analysis. hVirtual Augmented Mixed Reality for Aircraft Maintenance The forum needs to allow more space for industry-to-industry (VAMRAM). collaboration. This time seven American and twenty Indian defence firms attended the new “DTTI Industry Collaboration The long-term projects are:- Forum”. The services should drive projects on platform for hTerrain-shaping obstacles increasing the lethality of projects involving operational cooperation such as “Aircraft traditional obstacles such as mines and barbed wire. Carrier Technology Cooperation” (ACTC), which involves US- India partnership in developing the next indigenous aircraft hCounter UAS rocket artillery and mortar” or CU-RAM. carrier. So far the groups have not come to an understanding on what exportable technologies could be useful to the India and Apart from the above SoI projects there are other areas as well in challenge of US export controls. The standard operating which both the nations have cooperated. These include Aircraft procedure for DTTI is also likely to be finalised in the next 'Two (Under Secretary of Defense for Acquisition and Sustainment of the United States Ms Ellen M Lord and Secretary Carrier Technology Cooperation (ACTC), co-development of Plus Two' dialogue which is likely to be held in December 2019. (Defence Production) Shri Subhash Chandra.) Raven micro-UAS; mission-specific interiors for C-130J Super At the end it can be said, that the DTTI which was aimed at Hercules aircraft; a mobile electric-hybrid power source, and identifying and promoting major joint development and sustained leadership focus to the bilateral defence trade Recently, during the 9th meeting of India US Defence protective clothing for soldiers in a nuclear contaminated manufacturing projects for the defence forces has not yielded any relationship, creates opportunities for US-India in developing Technology and Trade Initiative (DTTI), a joint Statement of battlefield which have not made any headway. Also, the significant tangible results. new areas of technical cooperation in the defence sector including Intent (SoI) that formalized their intention to co-develop a range collaboration on developing high-performance, aerospace jet co-production and co-development, and fosters more of cutting-edge warfighting technologies and systems was signed engines which is an imperative arena for India, has now been

Defence ProAc Biz News (38) (39) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 DEVELOPMENT

Sig Sauer SIGM400 Assault Rifle

Defence ProAc Biz News (38) (39) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 DEVELOPMENT

Surprisingly the DAC has “nominated” the DRDO for designing Nominations create non-level playing fields and are Nomination Prevails Despite Rhetoric and developing an indigenous Light Weight Electronic Warfare discriminatory resulting in restricted capability building & System for Mountains. Despite evidence of development of such underutilization of private sector capacity. To create level playing system by Private sector Tata Power (TPSED) building two far field in competitive bids, all procurements by MoD must be only more complex “Integrated Mountain EW systems”, a global on a competitive basis in the interests of real price discovery. tender the company won in 2013 for Rs 926 Crores. Further, an Indian Industry Chambers have been strongly protesting this amended order was placed in July, which is on track to be sidelining of private firms with a request for all capital acquisition delivered in 24 months. The highest decision making body of programmes, be issued on competitive tendering basis. All cases Ministry of Defence (MoD) nominating the public sector where Acceptance of Necessity (AoNs) were granted on partnership between DRDO and Bharat Electronics Ltd (BEL) is nomination basis but RFPs have not been issued either due to Cdr. Vikram Moorjani (Retd.) floundering in developing two similar systems, for which they AoN requiring revalidation or due to gross delays should be made Nomination of DRDO by DAC for designing and developing an indigenous Light Weight Electronic Warfare System for were “nominated” by the Defence Ministry at twice the price bid open for participation by private sector companies. Citing Mountains, despite evidence of development of such system by Private sector is not in tune with Government declared policy. by Tata Power (TPSED). TPSED has two-decade-old track record “security concerns” to place orders for EW systems with the in developing EW systems, involved in developing the critical DRDO/DPSUs is not a valid reason as all “A category” licensed The Author analyses this issue. command & control software and platform engineering for the private Indian vendors are covered under the same security integrated EW system Samyukta (in the 1990s). guidelines issued by the MoD, as are DPSUs. t has been a known fact now that around 90 percent of the provide 'Fire and Forget' and “Top Attack” capabilities to the indigenous supplies come from the Defence Public Sector troops in an armoured battle. IUnits (DPSUs) and Ordnance Factories. The Government- hThe Auxiliary Power Units (APUs) for the T-72 and T-90 owned sector not only gets benefitted from nominated orders for Tanks to enable incorporation of various upgrades to Fire all major programs without competition besides they also enjoy Control System and Night Fighting capabilities of the Tanks. advantages of assured capital, a established manufacturing chain, experienced and skilled manpower and management. Large The third project is on discrete - Electronic Warfare (EW) systems nominated contracts provide for years of capacity booking of the for the mountain and high altitudeterrain - to be developed by DPSUs. There is no requirement of bank guarantees for DRDO and manufactured by design cum production partner from nominated contracts that allow public companies to provide the Indian industry. The “Mountain EW System” that received the corporate guarantees at nil cost. Besides, major nominated DAC clearance is a lightweight system that can be physically contracts grant the DPSUs stage payments while the same is carried to remote locations, or heli-lifted onto high mountains. It denied to private sector companies. Such an ecosystem has is particularly useful in counter-militancy operations. EW resulted in complacency and dubious distinction of being the systems are a crucial military force multiplier. They are built world's largest importer of military hardware, importing more around a powerful receiver that picks up, records and analyses than 60-65 percent of its defence requirements. The largest and enemy (or militant/terrorist) transmissions to obtain valuable most powerful economies of the world are testimonial to the fact intelligence. Its integrated direction finder establishes the precise that the defence industry can only thrive and prosper in an location of the enemy transmitter. That location can then be environment that devoid of a bias towards DPSUs. attacked, using aircraft or ground forces. Alternatively, at a Notwithstanding, our transformation towards privatization of the crucial stage of battle, the enemy's transmissions can be disrupted defence sector continues to be plagued with big ticket contracts with high-power jammers, throwing his plan into disarray. Good nominated to the DPSUs. EW systems allow an Army to dominate the electromagnetic spectrum. The Government is keen to cut dependence on imports through greater private sector participation in aerospace and defence. However, the policy blues the promise of level playing field, a condition of basic fairness and equality of opportunity amongst the public and private sectors has till date remained a pipe dream. The companies had already invested specifically for the segment in resources, technologies, facilities creation, and have built capabilities during the decades of “Reserved for the State” era. Recent example being the Defence Acquisition Council (DAC) accorded approval for Capital Procurement over Rs 3300 Crores for three indigenously designed and developed equipment manufactured by the Indian industry. Two projects under the 'Make-II' Category are:- hThird generation Anti-Tank Guided Missiles (ATGM) to

Defence ProAc Biz News (40) (41) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 DEVELOPMENT

Defence ProAc Biz News (40) (41) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 The unfortunate part is that, there are no restrictions on DPSUs which have been developed by the Laboratory. However, not even from participation in open or limited tender contracts. Thus, the a quarter of these are currently being supplied to the Navy. In fact, gains received from nominated contracts can easily be leveraged many of these are failed projects which did not even reach the towards winning multi-vendor contracts putting the private stage of User trials. A typical example is the Low Frequency players at a further disadvantage. Towed Array project which started This is without considering the fact as NAGAN and moved onto that the PSUs enjoy the advantage of ALTAS. The project has been under an established infrastructure with The disturbing part is that development for over twenty years. almost nil recurring costs. In such an despite repeated failures, After a series of failures, the IN environment it is more than obvious DRDO remains immune to finally got approval to import the that private players would continue to any accountability and system which was proving to be a be at a disadvantage till such time the indifferent to the urgency major capability gap in the Indian PSUs are shielded from competition. and requirement of the Navy's Anti-Submarine Warfare project. Capability. The disturbing part is In today's era of budget cuts, a that despite repeated failures, country like ours has to extract the DRDO remains immune to any maximum out of every penny and it is accountability and indifferent to the not only critical but crucial to financially justify the immunity to urgency and requirement of the project. A new project called the competition which the DPSUs and DRDO enjoy. Let us take a few IADS is now being progressed through the 'Buy and Make Indian' simple examples. A majority of the projects with DRDO entail route and given the progress of similar 'Buy and Indian Make' design and development of products which are already in the cases, it is likely to see the light of the day within a short period. market and available for import. While self-reliance and However, despite being procured through the 'Buy and Make indigenization are important it is critical to analyze at what cost Indian' route, DRDO continues to progress its project without are we achieving this and also the time frame for it. A cursory being accountable for the costs incurred or a definite timeline. glance at the DRDO/NPOL site will show a number of systems Notwithstanding the time delays and cost overruns, the indigenous products need to be economical when compared to the imports. This too is not being achieved, indigenously developed products by DRDO and manufactured by DPSUs are significantly more expensive than further advanced and capable imports. DPSU developed products by policy, are procured without any analysis of the cost of import substitutes. Another worrying aspect is the collusion between DRDO and DPSUs. DRDO labs are free to nominate their production agencies without going through the rigmarole of a multi-vendor system and the services are then forced to procure from the DPSUs, inevitably there are negotiations for price cuts since prices are significantly marked up. The question remains as to why cannot a private player participate and become the production agency through a multi-vendor system, why do DPSUs enjoy such immunity. Why can't the technology developed by DRDO be available to the private sector for supply to Armed Forces and also to explore opportunities for export.

Unfortunately, we may not get answers to these questions anytime soon. Cost overruns, consequent budget cuts and time overruns will continue to put our soldiers at a disadvantage and in harm's way till such time we don't overcome this protectionism provided by our policies on Nomination.

Defence ProAc Biz News (42) Nov-Dec 2019 DEVELOPMENT Adoption of Niche Technology: Need of the Hour

New technologies will determine how future warfare are fought and won. Need of the hour is the identification and development of niche technologies which should not only be need -based but affordable as well.

he strategic nature of threats has highlighted the Further, India should access core/niche technologies available importance of technology in intensifying offensive and with all centre of excellence available in India like DRSO, CSIR, Tdefensive capabilities. The Armed Forces world over BARC, ISRO and private sector and see how these can be need to modernize expeditiously if they have to be prepared to collectively used to develop core technologies for national take on the security challenges of the future. Armed Forces that security. For development of niche technologies, the country may are better equipped with higher technologies have always and adopt the US based Defence Advanced Research Projects Agency will continue to have an upper hand. (DARPA) model for development of state-of-the-art emerging technologies for use by the Indian Defence Services. Basically, The technology sector, at present, is undergoing a significant DARPA operates under the Department of Defense and is a transformation with substantial disruptive innovation which in pioneer in deploying emerging technologies in defence turn is driving rapid obsoletion providing momentous architecture of United States. This implies that India will require a opportunity for further growth. This has significant implications flexible research apparatus in order to focus on enhancing its for a developing nation like India which is still on the path of capabilities for technology absorption not only in the laboratories developing a robust Defence Industrial base (DIB). The Armed but also in production of systems. Furthermore, the Government Forces are showing strong eagerness and wants to participate in should support development of high technologies and should knowledge sharing which in turn will help organizations to provide the necessary policy framework and incentives, develop on-demand critical technologies. The need of the hour, including direct funding to select companies, start-ups and now, is to revisit basics and realign the structures in line with research institutions. Certain initiatives like IDeX, Technology emerging realities. In order to implement this, we must Development Fund (TDF), and Defence India Start-Up understand the needs of defence forces and what technologies Challenges are good measures from the Government's end which they want. Fundamental to understanding those needs is an need to keep this momentum. understanding of the strategic environment, existing now as also in the future, in which Armed Forces operate/will operate in Push For New High Technology Aspects future. Thus, niche technologies need to be identified and also Warfare has already undergone rapid changes and it needs no should be need-based and affordable coupled with done in emphasis, that technology is accelerating disruption, redefining consultation with stakeholders. Accordingly, it is also important the market and stimulating innovation. Future wars will be a non- to effectively manage new technologies by identifying their contact war; hence focus should be now on development of high strategic/tactical efficacy and function in existing defence technology areas - Cyberspace, Laser, Robotics and Artificial spectrum and the possible contributions they could make towards Intelligence, Biotechnology, Nanotechnology - which in turn will improvising overall defence competence. make India gain the technological edge. These are discussed briefly in the subsequent paragraphs. Capability & Needs

Cyberspace Designing to match Artificial - Technology Intelligence Robotics Foresighting the purpose & - Identification of challenges posed by Niche Technologies current/future HIGH operation realities TECHNOLOGY AREAS

Collaborative Approach by Nano- Directed Public & Private Sector in Technology Energy Bio- Weapons developing advance Technology technologies Source: Q-Tech Synergy Source: Q-Tech Synergy

(43) Defence ProAc Biz News Nov-Dec 2019 Cyberspace growing dependence on information technology (IT), with its The cyberspace is the most famous changing technology. The tremendous advances and growth in recent years, has compelled cyber technology has blurred previously well understood nations to look into the subject of information warfare with boundaries, exposed vulnerabilities and created new threats and greater urgency and scrutiny. industry. The political objectives can be attained without the loss of lives, at minimal capital costs and with the battle-space The Way Forward anywhere inside cyberspace. Anti-satellite (ASAT) weapons, Technology has no doubt reduced the traditional reliance on unmanned e-spacecraft and weapons of “outer space, hypersonic numbers, mass and endurance while increasing the capacity for missiles or aircraft” etc are few other technologies that will be rapid and precise application of very large amounts of force, for a developed in coming years. comparatively short time. Rather, technological superiority is increasingly going to be the decisive factor in future battles as it Robotics always offers militaries an advantage. Keeping this in mind, Robotics is the branch of technology that deals with the design, while there are plans to build future technologies under the 'Make construction, operation, and application of robots and is finding in India' initiative, it is unclear if an outright indigenization its way in defence sector. Coming years could see use of robotic approach to technology will be effective. The problem is DRDO platforms to high explosive chemical, radiological, biological domination in design and development, DPSU and OFB in devices for attacking defended targets. production and non involvement of Users. Besides even though foreign defence companies are willing to collaborate with Indian Biotechnology manufacturers, they are reluctant to transfer cutting-edge Major applications of biotechnology extending for their utility in technologies which act a major obstruction. Another problematic defence mainly fall into categories like sensors, electronics and area is the negligible capacity of Indian firms to acquire and computing, materials, logistics and therapeutics. absorb foreign technology. Following recommended approach for technology identification and development can be adopted to Artificial Intelligence (AI) overcome hurdles which comprise of: Artificial Intelligence (AI) has become a field of intense interest 0A detailed scrutiny of present and emerging technologies and and high expectations within the defence technology. AI basically related threats in discussion with the Users/Stakeholders refers to carrying out tasks that can be performed by humans should be carried out. Further, it is necessary to dwell into through a computer or digitally-controlled robots facilitating technologies that are needed with timelines for their military decisions, minimising human causalities and enhancing development to support the analysis. Some of these the combat potential of force. technologies, however, would have to be developed with higher precedence to meet the immediate security Nanotechnology requirements of the three Defence Forces. Nanotechnology broadly refers to techniques that produce or 0Create/award dedicated 'projects' for the development of each measure features less than 100 nanometres in size. Several technology, its transformation from engineering into technologies converge with nanotechnology, the most important production, integration and upgradation. Like previously, being miniaturization of semiconductor and the science and these projects need not be awarded to Government owned technology of building devices such as electronic circuits from sector/DRDO via 'nomination basis” but to a consortium of single atoms and molecules. companies/institutions in a Public Private Participation (PPP) model. Directed Energy Weapons 0Timelines for implementation of each phase must be clearly Envisioned as revolutionary, Directed energy weapons, consist of specified with provision for penalty in case of not meeting the weapon systems based on millimetre waves, high power deadline coupled with providing incentives if it is achieved microwaves, lasers, and electromagnetic pulses. The main before the deadline within the budget and innovations. advantage of lasers is that there is no flight time between the shot 0Attractive provisions and incentives for start-ups and and the target since the beam basically travels at the speed of light. involvement of Medium and Small Scale Enterprise (MSME). It could be a powerful defensive tool against missiles. Lastly, it is important to underline here that there is not only the Dual Use Technologies need to correctly identify the future orientation and equipment Dual-use civilian technologies, especially information needs of the Armed Forces, but it is also important to find a way technology, high resolution imagery and global positioning forward to build capacity and speed up the procurement process, systems as pieces of technology will empower state and non-state while addressing the problems which invariably come in the way. actors with new disruptive and destructive capability. The

Defence ProAc Biz News (44) Nov-Dec 2019 PROCUREMENT Military Helicopter Programmes- Needs A Push Ritika Behal

The existing fleet of the helicopters with the Indian Armed Forces is facing issues of deficiency in the inventory coupled with poor age profile of helicopters which impacts on effective operations. Though procurement programmes have been undertaken but these need to be fast tracked.

elicopters have been an imperative part of all the three Historically, India's military helicopter market has been wings of the Indian Armed Forces as they are not only dominated by Russian and French origin platforms such as the Hused for attack purposes in time of war but are equally Cheetah and Chetak, which have been licensed produced by used for transportation, search, rescue, medical transport, law HAL. At present, the inventory of helicopters with the three enforcement and aerial observation, amongst others. The defence services consists of over 750 helicopters with the Indian helicopters for defence purpose are typically categorized into Air Force (IAF) having approximately 440 helicopters, 210 with three types depending upon the operational requirement of a Indian Army (IA) and around 110 with Indian Navy (IN) and country's Armed Forces as shown in Fig. Coast Guard (ICG). These helicopters account for 36 percent of

Source: Compiled by Q-Tech Synergy

(45) Defence ProAc Biz News Nov-Dec 2019 the total military aircrafts assets of the country. Armed Forces are likely to spend around Rs 100000- 130000 Cheetah and Chetak light helicopters. After previous RFIs getting hKamov scrapped, a fresh RFI was issued on 31 October 2014 in a 'Buy- and-Make-India' approach with a certain number of helicopters to Keeping in mind that the procurement of Naval Multirole be supplied by the selected OEM in flyaway condition, with the Helicopters will take at least three to five years, the Navy has remaining numbers to be built by Indian partner at a production placed an order for 24 Sikorsky MH-60 Romeo maritime facility in India through licensed transfer of technology. Indian helicopters under direct government sale which is expected to be private companies - Tata, Reliance, Mahindra are in fray with worth about Rs 13500 Crores and will fill a critical gap in the Mahindra forming a JV with Airbus and Tata's with Bell. At Indian Navy. The induction of these heavy-duty choppers is present, the RSH programme continues to be covered in expected to be around 2020-2024. uncertainty, with no clarity from the Government on its future, leaving the private industry in limbo. Indigenous Multi Role Helicopter (IMRH) - India plans to design and develop an indigenous Multi Role Helicopter (IMRH) Procurement of 200 Kamov Ka-226T - In Dec 2015 with the worth Rs 10000 Crores to replace the large fleet of Mi-8/17 Government gave nod to procurement of 200 Kamov Ka-226T transport chopper fleet. The requirement of the Armed Forces for 'Hoodlum' light multirole helicopters for an estimated Rs 6500 Multi Role Helicopter (IMRH) is being pegged at over 550 units, Crores via a government-to-government deal. Out of these, 60 with potential exports as well. The twin-engine medium lift Kamov-226T helicopters will be supplied to India in fly-away chopper is to have a dedicated naval variant as well. HAL has condition, while 140 will be manufactured in India. This was already done preliminary work on design of the new 10-12 ton Source: Compiled by Q-Tech Synergy followed by HAL and Russian Helicopters agreeing in October class helicopter which will be based on enlarged Dhruv design. 2016, to form a JV - Indo Russian Helicopter Pvt. Ltd. (IRHL) - There will certainly be a requirement to collaborate with a foreign Noteworthy, about 78 percent fleet is of light or medium lift Crores on the above mentioned military helicopter acquisitions with HAL holding 51 percent share. Russia had agreed to ensure OEM as HAL does not have the requisite know-how and expertise helicopters including Cheetah, Chetak and M series helicopters between 2017-2027 with the Indian Military Helicopter market to transfer of technologies to India as part of the pact. in this class of helicopters. and 57 percent fleet is more than 20 years old as shown in the grow at a rate of 6-7 percent year on year. Consequently, there lies below given vintage spread diagram and is scheduled for a big business opportunity for Indian public as well as for private Naval Utility Helicopters-The Indian Navy is looking to procure Way Forward replacement. sector in the helicopter manufacturing, as most of the helicopters 111 Light Naval Utility Helicopters (NUH) worth Rs 21738 To meet the projected military helicopter requirements of the are to be manufactured in India with foreign collaboration in tune Crores under the Strategic Partnership (SP) model to replace Vintage Spread Indian Military Helicopters Armed Forces, it has become imperative for the Government to with 'Make in India' initiative of the Indian Government wherein Chetak Helicopters and issued an Expression of Interest (EoI) in involve the private sector as HAL which is primarily involved in in all likelihood Indian companies will have to partner with global Feb 2019. 95 helicopters out of 111 will be manufactured in India indigenous designing, development and production of 100 Original Equipment Manufacturers (OEMs). by the selected Indian Strategic Partner with 60 percent helicopters for the Armed Forces is already overburdened. It is - indigenization. Three original equipment manufacturers (OEMs) unlikely that HAL will be able to fulfil the military helicopter - 30% Some of the major on-going and future procurements of the three said to have submitted the responses to the EoI floated by the - requirements of the Indian Armed Forces on its own. Thus, Defence Forces are discussed below. However, it is to be seen that Defence Ministry which include: - 57% private sector participation has become imperative in s most of these programmes are still in initial stages and needs to be - ar hAirbus has offered two platforms the H 145M and the Panther aerospace/helicopter manufacturing segment which so far has Ye - + 30% expedited given the gap seen in the existing helicopter inventory. AS565 on offer for manufacturing in partnership with been only as suppliers, fabricators to HAL and OEMs. They have - 20 Mahindra Defence. proved their mettle over the years and are looking to expand their - ears - 20 Y Indigenous ALH Dhruv - More than 200 Dhruvs of different - 16% 10 hUS based Lockheed Martin & Sikorsky has offered the S 76D. presence in defence manufacturing including helicopters where - variants are operating with Indian Defence Forces. HAL is the country is lacking considerably. Further, some of the major - 0 - 10 Years 40% executing an order for 159 Dhruv helicopters from Indian Army hUS helicopter manufacturer Bell. 27% private players TATA, Mahindra Defence, and L&T today have - & IAF which is under supply. Further, HAL bagged orders for 73 An RFP is expected to be issued soon to selected Indian 0 the technological capabilities to undertake complex ALH in 2017 from Army, Coast Guard and Navy for ALH Mk-III companies. The likely Indian SPs are - Tata Advanced Systems manufacturing required for this sector. To encourage private Existing Desired & Mk-IV variants worth over Rs 7000 Crores. Ltd, Mahindra Defence, Adani Defence, Larsen & Toubro, sector participation, the Indian Government is promoting the Kalyani Group, and Reliance. A joint venture set up by HAL, Source: Q-Tech Synergy manufacturing of helicopters under 'Buy-Make (Indian)' and 'SP Light Combat Helicopter (LCH) - Light Combat Helicopter Russian Helicopters and Rosoboronexport to manufacture the category'. Further, the silver line for private sector being that there (LCH) has been indigenously designed and manufactured by Kamov 226T light helicopter in India under an Indo-Russian Market Opportunity would be continuous requirement of helicopters (besides exports) HAL. Indian Air Force and Indian Army are looking to acquire 65 inter-governmental agreement (IGA) have also applied to be SP. for next 20 years for such a venture. Thus, the private sector The ageing fleet with the three Armed Forces needs to be replaced LCH 114 LCH respectively. The Government has already given should not hesitate to invest rather on the contrary it should take and additional modern helicopters needs to be added for newer the initial approval for acquisition of 10 and 5 LCHs worth Rs Naval Multi-Role Helicopters (NMRH)- The Navy requires at the initiative and form the required JV with the foreign OEMs to roles - combat, surveillance and rescue, thus paving way for huge 2911 Crores. It is under trials as of now. least 123 NMRH for anti submarine role to replace its ageing Sea tap such a lucrative and growing market. requirement of helicopters envisaging induction of over 1,000 King helicopters and had issued a global Request for Information helicopters of different types by the end of 2027, to fulfil the Reconnaissance and Surveillance Helicopter Program (RSH) (RFI) for the same in August 2017. The procurement will be under emerging gap. As of now, on the anvil are 500 helicopters for the - The Indian Army and Air Force have requirement of having 197 SP model. Likely foreign contenders to include: IA, 350 helicopters for the IAF, 200 helicopters for the IN & Reconnaissance and Surveillance helicopters (RSH) - 133 and 64 hAirbus's NH90 or the naval Super Puma ICG.The Paramilitary Forces have their own requirements which RSH, respectively, worth Rs 9700 Crores to replace their ageing are nearly 100+ copters. Estimations depicts that the Indian hSikorsky's MH-60 Romeo

Defence ProAc Biz News (46) (47) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 the total military aircrafts assets of the country. Armed Forces are likely to spend around Rs 100000- 130000 Cheetah and Chetak light helicopters. After previous RFIs getting hKamov scrapped, a fresh RFI was issued on 31 October 2014 in a 'Buy- and-Make-India' approach with a certain number of helicopters to Keeping in mind that the procurement of Naval Multirole be supplied by the selected OEM in flyaway condition, with the Helicopters will take at least three to five years, the Navy has remaining numbers to be built by Indian partner at a production placed an order for 24 Sikorsky MH-60 Romeo maritime facility in India through licensed transfer of technology. Indian helicopters under direct government sale which is expected to be private companies - Tata, Reliance, Mahindra are in fray with worth about Rs 13500 Crores and will fill a critical gap in the Mahindra forming a JV with Airbus and Tata's with Bell. At Indian Navy. The induction of these heavy-duty choppers is present, the RSH programme continues to be covered in expected to be around 2020-2024. uncertainty, with no clarity from the Government on its future, leaving the private industry in limbo. Indigenous Multi Role Helicopter (IMRH) - India plans to design and develop an indigenous Multi Role Helicopter (IMRH) Procurement of 200 Kamov Ka-226T - In Dec 2015 with the worth Rs 10000 Crores to replace the large fleet of Mi-8/17 Government gave nod to procurement of 200 Kamov Ka-226T transport chopper fleet. The requirement of the Armed Forces for 'Hoodlum' light multirole helicopters for an estimated Rs 6500 Multi Role Helicopter (IMRH) is being pegged at over 550 units, Crores via a government-to-government deal. Out of these, 60 with potential exports as well. The twin-engine medium lift Kamov-226T helicopters will be supplied to India in fly-away chopper is to have a dedicated naval variant as well. HAL has condition, while 140 will be manufactured in India. This was already done preliminary work on design of the new 10-12 ton Source: Compiled by Q-Tech Synergy followed by HAL and Russian Helicopters agreeing in October class helicopter which will be based on enlarged Dhruv design. 2016, to form a JV - Indo Russian Helicopter Pvt. Ltd. (IRHL) - There will certainly be a requirement to collaborate with a foreign Noteworthy, about 78 percent fleet is of light or medium lift Crores on the above mentioned military helicopter acquisitions with HAL holding 51 percent share. Russia had agreed to ensure OEM as HAL does not have the requisite know-how and expertise helicopters including Cheetah, Chetak and M series helicopters between 2017-2027 with the Indian Military Helicopter market to transfer of technologies to India as part of the pact. in this class of helicopters. and 57 percent fleet is more than 20 years old as shown in the grow at a rate of 6-7 percent year on year. Consequently, there lies below given vintage spread diagram and is scheduled for a big business opportunity for Indian public as well as for private Naval Utility Helicopters-The Indian Navy is looking to procure Way Forward replacement. sector in the helicopter manufacturing, as most of the helicopters 111 Light Naval Utility Helicopters (NUH) worth Rs 21738 To meet the projected military helicopter requirements of the are to be manufactured in India with foreign collaboration in tune Crores under the Strategic Partnership (SP) model to replace Vintage Spread Indian Military Helicopters Armed Forces, it has become imperative for the Government to with 'Make in India' initiative of the Indian Government wherein Chetak Helicopters and issued an Expression of Interest (EoI) in involve the private sector as HAL which is primarily involved in in all likelihood Indian companies will have to partner with global Feb 2019. 95 helicopters out of 111 will be manufactured in India indigenous designing, development and production of 100 Original Equipment Manufacturers (OEMs). by the selected Indian Strategic Partner with 60 percent helicopters for the Armed Forces is already overburdened. It is - indigenization. Three original equipment manufacturers (OEMs) unlikely that HAL will be able to fulfil the military helicopter - 30% Some of the major on-going and future procurements of the three said to have submitted the responses to the EoI floated by the - requirements of the Indian Armed Forces on its own. Thus, Defence Forces are discussed below. However, it is to be seen that Defence Ministry which include: - 57% private sector participation has become imperative in s most of these programmes are still in initial stages and needs to be - ar hAirbus has offered two platforms the H 145M and the Panther aerospace/helicopter manufacturing segment which so far has Ye - + 30% expedited given the gap seen in the existing helicopter inventory. AS565 on offer for manufacturing in partnership with been only as suppliers, fabricators to HAL and OEMs. They have - 20 Mahindra Defence. proved their mettle over the years and are looking to expand their - ears - 20 Y Indigenous ALH Dhruv - More than 200 Dhruvs of different - 16% 10 hUS based Lockheed Martin & Sikorsky has offered the S 76D. presence in defence manufacturing including helicopters where - variants are operating with Indian Defence Forces. HAL is the country is lacking considerably. Further, some of the major - 0 - 10 Years 40% executing an order for 159 Dhruv helicopters from Indian Army hUS helicopter manufacturer Bell. 27% private players TATA, Mahindra Defence, and L&T today have - & IAF which is under supply. Further, HAL bagged orders for 73 An RFP is expected to be issued soon to selected Indian 0 the technological capabilities to undertake complex ALH in 2017 from Army, Coast Guard and Navy for ALH Mk-III companies. The likely Indian SPs are - Tata Advanced Systems manufacturing required for this sector. To encourage private Existing Desired & Mk-IV variants worth over Rs 7000 Crores. Ltd, Mahindra Defence, Adani Defence, Larsen & Toubro, sector participation, the Indian Government is promoting the Kalyani Group, and Reliance. A joint venture set up by HAL, Source: Q-Tech Synergy manufacturing of helicopters under 'Buy-Make (Indian)' and 'SP Light Combat Helicopter (LCH) - Light Combat Helicopter Russian Helicopters and Rosoboronexport to manufacture the category'. Further, the silver line for private sector being that there (LCH) has been indigenously designed and manufactured by Kamov 226T light helicopter in India under an Indo-Russian Market Opportunity would be continuous requirement of helicopters (besides exports) HAL. Indian Air Force and Indian Army are looking to acquire 65 inter-governmental agreement (IGA) have also applied to be SP. for next 20 years for such a venture. Thus, the private sector The ageing fleet with the three Armed Forces needs to be replaced LCH 114 LCH respectively. The Government has already given should not hesitate to invest rather on the contrary it should take and additional modern helicopters needs to be added for newer the initial approval for acquisition of 10 and 5 LCHs worth Rs Naval Multi-Role Helicopters (NMRH)- The Navy requires at the initiative and form the required JV with the foreign OEMs to roles - combat, surveillance and rescue, thus paving way for huge 2911 Crores. It is under trials as of now. least 123 NMRH for anti submarine role to replace its ageing Sea tap such a lucrative and growing market. requirement of helicopters envisaging induction of over 1,000 King helicopters and had issued a global Request for Information helicopters of different types by the end of 2027, to fulfil the Reconnaissance and Surveillance Helicopter Program (RSH) (RFI) for the same in August 2017. The procurement will be under emerging gap. As of now, on the anvil are 500 helicopters for the - The Indian Army and Air Force have requirement of having 197 SP model. Likely foreign contenders to include: IA, 350 helicopters for the IAF, 200 helicopters for the IN & Reconnaissance and Surveillance helicopters (RSH) - 133 and 64 hAirbus's NH90 or the naval Super Puma ICG.The Paramilitary Forces have their own requirements which RSH, respectively, worth Rs 9700 Crores to replace their ageing are nearly 100+ copters. Estimations depicts that the Indian hSikorsky's MH-60 Romeo

Defence ProAc Biz News (46) (47) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 PRODUCTION

off, major reason being the inability to achieve progress in high- profile indigenous projects under 'Make' category - Futuristic Self Reliance: An Illusive Goal? Infantry Combat Vehicle (FICV), Tactical Communications Systems and Battlefield Management Systems (BMS) for the Self Reliance Army launched a decade back. 'Make' projects go a step beyond even the Government's 'Make in India'chief mission because here Make-I the MoD funds cover 80 percent of the R&D cost and creates R U R in Circles proprietary defence systems while the rest 20 percent is to be contributed by the private firms. However, bureaucratic delays are prevalent in all three high tech 'Make' projects offered to private firms. The Battlefield Management System (BMS) has By Maj. Gen. (Dr.) Bhupinder Yadav (Retd.) been shelved because of lack of funds although it was being A high degree of Self Reliance on defence products is of vital importance for both strategic and economic reasons for any pursued since last 13 years. On the other hand, Tactical Communication Systems (TCS) has been stalled and awaiting country. However, India has not been able to achieve the same despite often repeated statements from power to be, with no final decision since last two years. While the FICV is yet to get to tangible effect. even the project development phase. The first attemptfor FICV was scrapped in 2012 because of alleged 'perceived ay back in 1990 Self Reliance Review Committee in Procurement Circles without Level Playing Field inconsistencies in the evaluation of EoI responses. It was three Defence under Dr. A.P.J. Abdul Kalam, had Understanding that the DPSUs/OFs have their limitations and years before the project was restarted in 2015 and, as of now, Wformulated a 10-year self-reliance plan to achieve 70 cannot be relied for every product/technology to be developed for awaits approval from the MoD's Defence Production Board percent self reliance in defence by 2005, being of vital importance Armed Forces, the Government opened up the defence sector for (DPB) which is yet to decide Development Agencies (DAs) or DRDO DPSU OFB for both strategic and economic reasons. However, the target still private sector participation in 2001 by obtaining a license, but its Private Sector select two from the five private sector firms that have submitted r oBu t re G c au o Se cr has not been achieved despite often repeated statements from vt. ac commitment to a level-playing field falls flat in the absence of bids and are eligible to build two separate FICV prototypes in y power to be, with no tangible effect and self-reliance still remains orders to private sector till date. The DPSUs are still preferred for collaboration with the OFB. At the moment, the project seems to Def Design Large wishful thinking as most weapons and equipment continue to be MSMEs major defence programmes even though most of the programme MSMEs be going nowhere. Even if by all means, if companies are Large SMEs Production SMEs imported. India procures around 60 percent of its weapon system undertaken by them are facing time and cost overruns and a shortlisted in 2020-21, thereafter time will be required to develop and technologies via imports and rest by indigenous number of products developed had been sub standard too but still the prototypes (3 to 4 years) trial and evaluation (2 years) and manufacturing (primarily done by Government players into the are awarded defence programmes through 'nomination' basis i.e. finally concluding the contract (1 year), thereby expecting the domain Ordnance Factories (OFs)/Defence Public Sector without competitive bidding. award of the contract by 2027 and commencement of Undertakings (DPSUs) which have been limited to production manufacturing most likely to begin in 2029-30. This means a Naval Multirole Helicopters (NMRH), and Reconnaissance & while R&D is carried out by DRDO &its Laboratories. Even To give further impetus to this policy, the Defence Ministry came delay of 20 years or so. The only loss would be of the Indian Army Surveillance Helicopters (RSH), Future Ready Combat Vehicle when defence products are manufactured domestically, there is a out with new policy measure in 2006, related to the concept of who will have to operate and maintain the currently held outdated (FRCV) and P-75 (I). But no tangible progress is seen in any of large import component in them. Raksha Udyog Ratnas (RURs) or Champions of Defence BMP 2, duly upgraded at an additional cost. Also by the time the programmes mentioned, as apparently these are being stalled Industry, which was to grant the private sector companies the induction starts the technology to be developed can become by vested interests. All are facing prolonged delays. same status as DPSUs and OFs with an aim to provide level obsolete. The project is also expected to be categorized under playing field to major private sector players, who are active in the Make-II but Army does not want it under Make II category as it Other policy reforms and schemes by the Government to promote defence sector with significant investments. As per this policy, will further delay the project. The current impasse will delay the start-up and innovation for self reliance by enhancing private Defence Imports Domestic Defence around 3 private sector companies such as Tata, L&T, Mahindra, 60% project by another three years. sector participation through Government funding such as, Manufacturing etc were identified to have the same status as Navratna PSUs. 40% Defence Innovation Fund (DIF), Technology Development Fund However, this laudable initiative was abandoned apparently Furthermore, in 2018, the Government came out with another (TDF), iDEX, Defence India Start-up challenge (DISC) are because of under pressure from the DPSUs who sensed the risk of new policy called the Strategic Partnership model as an attempt to facing slow development. The development leaves one being sidelined. encourage foreign Original Equipment Manufacturers (OEMs) wondering why the Government has come out with so many developing world-class military equipment to tie up with private categories under 'Make in India' flagship mission or for start-ups Further, in 2007, the Defence Procurement Procedure (DPP) sector firms which would be declared as systems integrators funding programmes? This has made the entire procurement Indigenous introduced the 'Make in India' programme which is being used for based on their proven capability. The firms would make long term process more cumbersome, complex and confusing for the The Pvt. Production defence procurements by categorizing the capital acquisition private sector leading to prolonged delays. Sector share is investments to develop a base for R&D and production facilities. also has foreign proposals under 'Make' with two sub categories Make-I However, under the policy, the Government chooses the Indian content upto about (government funded projects up to 90%) and Make-II (private partner for a foreign firm which the private sector is not 20-25% 15% industry-funded design and development opportunity for simpler comfortable. Regardless, several big-ticket defence programmes requirements), 'Buy (Indian-IDDM)', 'Buy (Indian)', 'Buy and have been initiated under Make in India after the announcement Make (Indian)', 'and 'Strategic Partnership (SP) Model' under of the strategic partnership model. These include Light Multi DPP 2016. But these, as on date, are still mostly on paper and little Role Combat Aircraft (MRCA) Indian Navy Multirole Carrier headway has been made in this direction. Sadly, the Government's Source: Q-Tech Synergy Borne Fighter (MRCBF), Naval Utility Helicopters (NUH), ‘Make in India’ initiative for the defence industry has not taken

Defence ProAc Biz News (48) (49) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 PRODUCTION

Defence ProAc Biz News (48) (49) Defence ProAc Biz News Nov-Dec 2019 Nov-Dec 2019 POLICY Army Make-II Projects 2019 MSMEs across the globe have in many ways been the drivers of change and innovative solutions. Make-II projects are ideal for engaging the Industry, MSMEs and start-ups into the defence manufacturing ecosystem.

By Rajendra Kumar

hMobile Integrated Network Terminal (MINT) hPre-Fragmented Programmable Proximity Fuze Ammunition hTerminally Guided Ammunition h120mm ER Ammunition

The project officers of Indian Army held discussions with the industry participants on requirements including AFV protection and counter measure suit for its tank columns, robotic surveillance platform, truck mounted crane for ULH regiments, mountain fire control radars, extended range ammunition for mortars, software defined radio and portable helipad, upgrade 1,000 and more than 1,200 horse power engines for its T-72 and T- 90 main battle tanks among other things.

Defence industry leaders also highlighted that MSMEs across the ndian Army organised a seminar on its Make-II Projects globe have in many ways been the drivers of change and 2019 on 11 Oct 2019 in Association with Federation of Indian innovative solutions. Hence, there is need to engage the industry, IChambers of Commerce and Industry (FICCI) to facilitate MSMEs and start-ups into the defence manufacturing ecosystem. open dialogue between the Indian Army and private defence Further, there is also urgent requirement for indigenization of manufacturers. Indian Army has embarked on a massive defence production to reduce reliance on imports and to have an indigenization programme under the Government's flagship edge over the country's enemies. The Government must keep in scheme 'Make in India' to boost the country's manufacturing mind that in MAKE-II, the risk is with the industry and not with sector. Indian Army listed more than a dozen requirements before the services. Industry concerns have also been taken into the private defence manufacturers to come up with the unique and consideration and demystifying of work processes will come only cost effective indigenous solutions. The following projects were through interactions. unveiled: hAFV Protection and Counter Measure System Change in Procurement Procedure 'Make II' category revised Procurement Procedure, will now hRobotic Surveillance System allow the Defence Ministry to accept proposals from the Industry hTruck Mounted Crane for ULH Regiment and also allow start-ups to develop equipment for the Indian hMountain Fire Control Radar Armed Forces. Now, all vendors meeting the relaxed eligibility criteria will be allowed to participate in the prototype hHF Software Defined Radio development process. The vendor will not be required to submit a hVHF Software Defined Radio Detailed Project Report. After accord of approval of the 'Make II' hPortable Helipad project by the council, all clearances will be accorded at Service HQ (SHQ) level. hArmament Upgrade for BMP 2/2K hIntegrated Air Defence Combat Simulator (IADCS) Details of project unveiled at the seminar is given at hAir Def Unit Level Sys (AMOGH) https://www.makeinindiadefence.gov.in/projects/index/2

Defence ProAc Biz News (50) Nov-Dec 2019 RNI No.: DELENG/2013/48772 Q-TECH SYNERGY

oA ence Pr c Biz Ne Def ws

Building conduits to bridge manufacturing gaps Entry Strategy

Service Offering Team Proposition Pu bl ic y a ENTRY STRATEGY DEFENCE MANAGEMENT EXPERIENCE Customer Strategy c t i n o a Identification, profiling and selection of target The team includes former defence officers who n h h t

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products/ services have held various command & staff u Conducted Resettlement/Career

appointments and bring in a deep understanding n Enhancement Training for Defence Officers

Assistance in the identification of key resources T

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of the Indian defence ecosystems C

and capabilities JVs & Partner Search a Through DG Resettlement i

i n g Business Excellence through hOverall development of a strategy roadmap hThey bring in rich experience of having worked with various acquisition arms Six Sigma by Q-Tech Synergy. hIdentification of the right business model for A registered service provider of entry e.g. offset, JV with another OEM hThey have also been extensively involved with the indigenisation effort within the armed forces Offsets American Society for Quality CUSTOMER STRATEGY as well as the MoD (ASQ-India) hIdentification, profiling and selection of the target customer OFFSET MANAGEMENT hIdentification of critical success factors for Q-TECH SYNERGY, a defence consultancy organization with domain insight, specialist knowledge, and deep experience of customer acquisition hSubstantive experience in management of Indian Defence Industry from concept to completion. Q-Tech offers a range of integrated services to International and Indian offsets for and on behalf of global OEMs organisations to assist them to understand the Indian Defence Market and more importantly succeed within the market. The STRUCTURING JOINT VENTURES hThe team is also experience in working with Indian IOPs towards offset realisation specific services offered are: hAssist in structuring the transaction keeping tax h To identify and exploit marketing opportunities in India. Exposure on requirements, procurement policies and procedures as a and regulatory framework into account part of Entry Strategy. Review of business plans and alternative h ENGINEERING/ MANUFACTURING funding options h Identification of the right business model for entry e.g. offset, JV with OEM. EXPERIENCE Provide valuation support and due diligence h To provide professional consultancy, representation, support services and practical advice on JV, Transfer of Technology. h The SMEs have worked with Indian engineering services h Identification and selection of suitable joint venture partner and assist in negotiations. and or manufacturing entities within the defence h hAssistance in formation and operatlisation of milieu h Provide market intelligence, procurement consulting, sourcing for value and supply chain. Joint Venture entity hTeam members have been part of marquee h Developing an offset facility guidance and education. projects undertaken within space, aviation & defence sub-sectors We are TRACE certified. hThey have also garnered rich experience in POOL OF INDIAN working with governments (Central & State) INDUSTRY Q-TECH 0 towards establishment of defence manufacturing GLOBAL OEMs SYNERGY (QTS) Manufacturing parks/ nodes ACADEMIA Companies 0Service Providers 0 Trading DEVELOPMENT OF MSMEs, START-UPs & Companies INDUSTRIAL CLUSTERS 0Start-Ups hThe team also includes SMEs who have worked towards development of over 1300 clusters Contact Us: hSingle source of sourcing needs in India for: hAggregated across the country hManufacturing demand from Q-Tech Synergy & Defence ProAc Biz News Q-Tech Syner y hServices multiple OEMs hThey have been instrumental in the development hTrading hTraining of MSMEs and Start-Ups in the core U-8 (LGF) Green Park Main, hQuality assurance hAssistance in manufacturing sector Standardisation New Delhi-110016 hTimely deliveries Q hThe team brings in extensive know-how of hEffective and efficient offset management developing state of the art technology centers T: 011-26511792, F: 011-40584289 hLegal, tax and regulatory compliant supply across the country E:[email protected] Defence ProAc chain web: www.qtechsynergy.com, www.defproac.com Defence Production & Acquisition Biz News RNI No.: DELENG/2013/48772 Q-TECH SYNERGY