Aero India 2015 Will Be the Biggest Show Ever India Has Hosted
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www.aeromag.in Show Daily AeromaAsia g amaskara! N The hash-tag Welcome to Asia’s biggest that’s doing the rounds online -- #PlaneCarnival -- tells you the story. Plane Carnival Asia’s biggest sky party will be inaugurated by Prime Minister Narendra Modi on February 18. The Ministry of Defence (MoD) has gone on record saying that the 10th edition of Aero India 2015 will be the biggest show ever India has hosted. The five- day show begins at Air Force Station Yelahanka from February 18. The core theme of this year’s show will be Make in India. Page 11... 1 2 3 4 5 EDITORIAL A Publication dedicated to he tenth edition of Aero India Airshow & Exhibition from February 18th – 22nd 2015 Aerospace & Defence Industry Toffers an excellent platform to showcase Editorial Advisory Board capabilities of Indian companies to the world and the potential in indigenous manufacturing capabilities. Dr. C.G.Krishnadas Nair Aero India will provide an opportunity for overseas industries to become more aware of Indian Industry Air Chief Marshal & R&D capabilities and develop sustainable supply S.Krishnaswamy (Rtd) chains and long term strategic partnerships. PVSM, AVSM, VM & Bar Since the government has increased the FDI to 49 % Air Marshal P. Rajkumar (Rtd) in defence industry more foreign companies should PVSM, AVSM, VM be interested in investing in India as JV partners. Several Indian companies are now Air Marshal Ajit Bhavanani (Rtd) PVSM, AVSM, VM suppliers to major international OEMs directly or through their Tier one suppliers. This Rear Admiral K. Mohanan (Rtd) goes to show the development and quality which our industry has achieved in recent AVSM years. In addition to the large PSUs and Private Industries, many of the Indian MSMEs are Mr. Pushpindar Singh Chopra performing extremely well in the aerospace & defense manufacturing sector. Dr . K. Ram Chand The global defence industry can take advantage of the promising Indian Aerospace Mr. J.K.Sharma & Defence market and the new policy of the government by partnering with Indian Mr. Arunakar Mishra industries. Mutually complementary and sustainable approach for this partnership will Air Cmdre. (Rtd) Joseph Varkey be a win-win situation for all stakeholders. Global aerospace industries must, leverage on the offset package and form JVC with Indian DPSUs, PSUs and large Private Industries. Delhi Global Aerospace industries must link their tier one suppliers directly with Indian SMEs Gp. Capt. (Rtd) H.C.Bhatia to form partnership of mutual advantage. Ashok Iyer SIATI and Aeromag Asia wish participating companies and delegates all success. E-mail : [email protected] Mumbai Warmly, P. A. Augustine Dr.CG Krishnadas Nair Email : [email protected] Hony. President, SIATI Germany Detlef Becker Email : [email protected] Tel : + 497 112317595 Mobile : + 491 701626053 Canada Bob Hastings Email : [email protected] Tel: 613-523-5592/ Mobile: 613-867-8777 Bahrain & UAE Roy Mathew Email: [email protected] Mobile: +973-6633-7571 London Ezhil Bharathi S.A. Email: [email protected] Contact Us : Aeromag Asia Aeronautical Society of India Building Suranjandas Road, Off Old Madras Road, Bangalore 560075. Karnataka, INDIA Tel - + 91 80 25284145 / 65952377 Email: [email protected] www.aeromag.in Printed and Published by Sunny Jerome, Managing Editor, Advantage Karnataka C/o Aeromag Asia, Aerosun Media, Aeronautical Society of India Building, Suranjandas Road, Off Old Madras Road, Bangalore 560075. Karnataka. Printed at Rash- trotthana Mudranalaya, 19/1, K.G.Nagar, Bangalore-19. 6 7 “Make in India” becomes the buzz word “Make in India” has become of months after the new of licensing. The companies desirous of the buzz word for India’s Government has come to power, proposals manufacturing such items no longer worth more than Rs.65,000 crores have defence and aerospace sector. require industrial licence and will also been categorized under ‘Buy (Indian)’ and not be subjected to FDI ceiling of 49%. A ‘Buy and Make (Indian)’. The process of efence Minister Manohar Parrikar comprehensive Security Manual indicating further orienting the Defence Procurement the security architecture to be followed says achieving self-reliance and Procedure towards procurement from reducing dependence on foreign by various class of industries has been D domestic industry will continue in future put in public domain, so that companies countries in defence is a necessity today as well. The procurement process would rather than a choice, both for strategic and could easily access the same and follow it be made more efficient, time bound and accordingly. The initial validity of industrial economic reasons. predictable so that the industry can plan The Government in the past has created licence has been increased from two to its investment and R & D well in advance to three years. production capabilities in defence in meet the requirement of our armed forces”, the form of Ordnance Factories and For the first time, a Defence Export the Minister said. Strategy has been formulated and has been Public Sector Undertakings to cater to Till now, there were many entry barriers the requirements of our Armed Forces. put in public domain. The strategy outlines for the domestic industry to enter into specific initiatives to be taken by the However, there is a need to enlarge the role defence sector in terms of licensing, of Indian private sector as well to develop Government for encouraging the export FDI policy restrictions etc. In the last six of defence items. It is aimed at making capabilities and capacities for production months, the Government has taken several of various defence equipment. the domestic industry more sustainable policy initiatives to ease the process of in the long run as the industry cannot The Prime Minister Mr Narendra Modi has entry into defence manufacturing. The taken a very important initiative in the form sustain purely on domestic demand. A most important is the liberalisation of Standard Operating Procedure (SOP) for of ‘Make in India’ to promote and encourage the FDI policy regime for Defence sector domestic manufacturing of various items. issue of NOC for export of military stores to encourage foreign investment in the has been finalised and has also been put The requirement for domestic production sector. FDI up to 49% is allowed through of defence equipment is more than for any in public domain. Requirement of End User Government route (with FIPB approval). Certificate (EUC) to be signed and stamped other sector because it will not only save FDI above 49% is also allowed on a case- precious foreign exchange but will also by Government authorities has been to-case basis with the approval of Cabinet dispensed with for most of the defence address the national security concerns. Committee on Security wherever the “Government being the only consumer, items, particularly parts, components, proposal is likely to result in access to sub-systems and sub-assemblies. This will ‘Make in India’ in defence sector will be modern and state-of-the-art technology driven by our procurement policy”, he said. largely ease out the export by the domestic in the country. Restrictions in earlier policy industry. A web-based online system to The Government policy of promoting related to Foreign Institutional Investment domestic defence industry is adequately receive applications for NOC for export of (FII) and majority shareholding to be held military stores has been developed and reflected in the Defence Procurement by single Indian shareholder have been Policy, wherein preferential treatment is has been put in place. removed. There is a big opportunity in the defence given to ‘Buy (Indian)’ and ‘Buy and Make Even though private sector industry was (Indian)’ categories of acquisition over ‘Buy sector for both domestic and foreign allowed to enter in defence manufacturing investors. (Global)’. since 2001, after obtaining industrial “In the days to come, import is going to “We have the third largest armed force in licence under IDR Act, the process of the world with an annual budget of about be the rarest of the rare option and first obtaining industrial licence was very opportunity would be given to the Indian US$ 38 billion and 40% of this is used for cumbersome and used to act as a major capital acquisition. In the next 7-8 years, Industry to develop and manufacture the road block for the industry, particularly required systems. As Indian companies we would be investing more than US$ small and medium industry, who were in 130 billion in modernization of our armed presently may not have adequate the business of making part, components, capabilities in terms of technology, they forces and with the present policy of MAKE sub systems and sub-assemblies. IN INDIA, the onus is now on the industry are encouraged to partner with foreign The Government liberalized the licensing companies for joint ventures, technology to make best use of this opportunity for policy and now most of the components, the benefit of both the business as well transfer arrangements and tie-ups. parts, raw materials, testing equipments, If we look at the profile of Acceptance as the nation. Besides, under offset more production machinery, castings, forgings than Rs. 25000 crore obligations are to be of Necessity (AONs) granted by Defence etc. have been taken out from the purview Acquisition Council (DAC) in the last couple discharged in next 7-8 years”, Parrikar said. 8 Preliminary design of LCA Mk 2 to be ready by next month he preliminary design of Mark-2 Naval variant of the Light Combat Aircraft is going to be ready by March, says TShri. P S Subramanyam, Director, Aeronautical Development Agency, in this interview to Aeromag Asia. Defence Minister Shri Manohar Parrikar in discussion with Shri PS Subramanyam , DS & Programme Director(CA) & Director- one is it has to have the marinisation; it has been demonstrated in December ADA and Shri R Swaminathan , Out Standing Scientist & TD (GS), ADA during his visit to Aeronautical Development Agency.