I/2019 Aerospace & Defence Review SPECIAL ISSUE I/2019 I/2019 Aerospace & Defence Review “Speeding up LCA square one. Ajai Shukla worries about an Meanwhile, India’s first private sector 38 inability within the military and the MoD UAV manufacturing facility is being set deliveries” to anticipate equipment requirements up in Hyderabad, even as five UAV and identify, evaluate, budget for and types are operated by the Indian Armed procure equipment to fill the gaps. Ravi Forces, including those indigenously Rikhye instead plumbs for a 50-combat developed. squadron IAF to really get the odds right! There are currently three UAV SPECIAL Squadrons operational with the Indian ISSUE ‘God of the Seas’ Navy, which are majorly contributing to 59 Maritime Domain Awareness (MDA) in Cover : IAF C-17 flanked by Su-30MKIs at the IN’s area of responsibility. Republic Day 2019 fly past In an interview with the Vayu Aerospace Photo courtesy : Major VK Singh, Photo Review, R Madhavan, CMD HAL Triumph ! The Division, DPR Ministry of Defence has stated that the PSU has made 83 preparations for production of LCAs Game-changing S-400 (FOC-standard) after receiving the SOP. Air Chief Marshal BS Dhanoa, CAS Meanwhile, HAL has produced 12 LCA of the IAF has described the S-400 as DITORIAL ANEL Mk.I IOC standard fighters so far with “booster shot in the Indian Air Force’s E P The Indian Navy’s long range maritime the balance to be delivered within the arm. No country is facing the kind of MANAGING EDITOR reconnaissance antisubmarine warfare current FY. The CMD also comments grave threat that India is confronted (LRMRASW) force operates arguably Vikramjit Singh Chopra on other HAL programmes including with. Intentions of our adversaries the world’s most advanced aircraft, the LCH, LUH, Ka-226T, IMRH and the could change overnight. We need to EDITORIAL ADVISOR the Boeing P-8I, the Indian variant of futuristic IRTA. match force levels of our adversaries.” Admiral Arun Prakash the US Navy’s Poseidon, named after The S-400 is also described as a ‘Game the Greek God of the Seas. Featuring Changer’ by India’s adversary as well. EDITORIAL PANEL In Defence of HAL various Indian-origin systems, the P-8Is Pushpindar Singh 46 of INAS 312 have truly given the Indian Air Marshal Brijesh Jayal Navy’s air arm an international stature. 87 Aero India 2019 Dr. Manoj Joshi Section Lt. Gen. Kamal Davar 65 The ShinMaywa With its logo inspired by the Lt. Gen. BS Pawar US-2i and Indian Tejas Light Combat Aircraft, Air Marshal M. Matheswaran Aero India 2019’s tagline Gp Capt JC Malik Ocean Strategy is The Runway to a Billion Opportunities with Cdr M Nirmal “HAL being removed from the IAF’s several events Rafale acquisition programme at the last Nitin Konde planned during the Show. This 12th minute – and for reasons best known Sayan Majumdar Edition of the Aero India Show is, to the authorities – is astonishing to say Sameer Joshi as before, being held at Air Force the least” opines GS Jamadagni, former Station Yelahanka, 20-24 February Richard Gardner (UK) GM (Quality Assurance) Hindustan 2019. As has been from the very first Reuben Johnson (USA) Aeronautics Ltd, who retired from Bharat Karnad’s new book Staggering such event held at this venue north of Bertrand de Boisset (France) HAL after 40 years of service. He Forward, an analysis of India’s evolving Bangalore, the Vayu Aerospace Review urges that HAL should be considered social political and economic milieu, Dr Nick Evesenkin (Russia) is participating at the event and also for licence manufacture of the balance under Prime Minister Narendra Tamir Eshel (Israel) is official media partner, publishing Rafales required by the IAF, should this Modi, is a critical perspective, both show dailies for the first three days ADVERTISING & MARKETING MANAGER decision be taken. argumentative and thought provoking. of the event. Husnal Kaur The chapter on the manner in which bureaucratic turpitude has blocked the BUSINESS DEVELOPMENT MANAGER 50 The Fighter for strategically important ShinMaywa US-2i Also: “Gripen E is on Track”; India- Premjit Singh India’s Future amphibian aircraft for the Indian Navy is Israel Defence Cooperation; the reproduced for readers of this Journal. Tupolev Tu-160M.2; the MICA and METEOR for Rafale; Thales UAVs in India connected sensors for Rafale F4; PUBLISHED BY 71 Airbus in 2018; Boeing in 2018; CRUZEX 2018; USAF European Vayu Aerospace Pvt. Ltd. Special Operations; Turkish CH- E-52, Sujan Singh Park, 47F Chinooks; Hawgsmoke 2018; New Delhi 110 003 India Three well known commentators have Readers Respond. Tel: +91 11 24617234 given their views – and recommendations Fax: +91 11 24628615 – on how to manage the “fighter gap” Regular features : e-mail: [email protected] which the Indian Air Force is increasingly The new dimension of unmanned Commentary, Viewpoint, Opinion, e-mail: [email protected] faced with. Mohan Guruswamy goes aerial vehicles (UAVs) have been in the Aviation & Defence in India, World back to the beginning, to the original news for some time, especially with Aviation & Defence News, Ancient MMRCA tender for 126 aircraft which the US reportedly offering India an Aviator Anecdotes, Vayu 25 Years Back, Printed at Aegean Offset Printers was scrapped, taking the IAF back to armed version of the Guardian drone. Tale Spin. The opinions expressed in the articles published in the Vayu Aerospace & Defence Review do not necessarily reflect the views or policies of the Publishers. Follow us on @ReviewVayu Visit us at: www.vayuaerospace.in C O M M E N T A R Y Reform Defence Budgeting Think Beyond PSUs ecent reports that Hindustan Aeronautics Ltd was forced to take s the war of words continues over the Rafale jet fighter Ra bank loan of Rs 781 crore to pay its employees’ December Adeal, Congress president Rahul Gandhi has now accused salaries reflect the government’s strange approach to defence government of weakening defence PSU Hindustan Aeronautics budgeting and spending. The government currently owes HAL Rs Limited (HAL) to benefit Reliance Defence. To bolster this line 15,700 crore for products and services already delivered, of which of argument, Congress has pointed to recent reports that HAL Rs 7,000 crore is outstanding from the preceding year. With more for the first time had to borrow close to Rs 1,000 crore to pay bills likely to arise over the coming three months and no money to salaries to its employees. pay them, outstanding dues will swell to Rs 20,000 crore by the end To be sure there are several valid questions that Congress has of the financial year. HAL has asked the defence ministry to make raised regarding the Rafale deal. These include why the original some payments so that ongoing development projects, manufacture contract of 126 aircraft was changed to just 36 aircraft and why and the maintenance of the Indian Air Force’s aircraft fleet are not Reliance Defence – a recently incorporated company with no severely impacted. But, given the government’s financial pressure prior successes in defence manufacturing – was reported to have with an election looming, HAL does not expect relief in the revised been made a major offsets beneficiary. But for opposition to budget estimates. bat for HAL and defence PSUs in general is a stretch. The track Nor is HAL the only defence public sector undertaking (DPSU) record of these government utilities is poor. Take for example the that finds itself in these straits. It is understood the military also development trajectory of the indigenous Light Combat Aircraft owes Bharat Electronics Ltd thousands of crores in unpaid bills. It Tejas. The Aeronautical Development Agency and HAL took was one thing to and defer payments when HAL and BEL were more than three decades to produce an aircraft that met standards wholly owned defence ministry enterprises. But, after their part- and has only now reached the induction phase. In contrast, disinvestment, there are also interests of private shareholders, which China’s defence PSUs have proved to be far more efficient will be adversely affected by non-payment of bills. and in recent years have been churning out advanced weapons Things have come to this pass for a simple reason: the platforms. A case in point is China’s indigenous fifth-generation government has not allocated the capital budget needed for fighter J-20 developed by Chengdu Aerospace Corporation. payments that were falling due this year. The navy projected to the Indian defence PSUs are nowhere near such capability, which is defence ministry a capital requirement of Rs 30,358 crore, but was why India continues to be one of the largest defence importers in allocated only 19,083 crore, a shortfall of 37 per cent. The army the world. This in turn puts further strain on the defence budget asked for Rs 37,122 crore, but was given Rs 21,338 crore, short by and comes in the way of India’s defence preparedness. 43 per cent. The IAF, with instalments due for the Rafale fighter The remedy lies in bringing more private companies into and Apache and Chinook helicopters, asked for a whopping Rs defence. Unlike defence PSUs, private players will be nimbler 72,482 crore but was allocated Rs 33,100 crore, short by 54 per as they have a better work culture and won’t be bogged down cent. Further, of the amount allocated for capital expenditure, by India’s notorious bureaucratic style of functioning. In fact, about 90 per cent was pre-committed towards instalments on the government’s aim ought to be to create an American-style previous years’ purchases.