Day Visit us at DEFEXPO ’08 1 February 16 to 19 Hall 18, Stand 40 Saturday, February 16, 2008 SP’sShowNews AN SP GUIDE PUBLICATION BY PUBLISHERS OF SP’S MILITARY YEARBOOK, SP’S AVIATION, SP’S LAND FORCES & SP’S NAVAL FORCES WELCOME TO DEFEXPO INDIA 2008 efexpo India’s primary objective is to promote defence exports from India from October 12 to 16, 1999. The aim was to forge new partnerships with major glob- and exhibit the capabilities of Indian Defence R&D and production. This al players and domestic private sector in co-production of weapon systems in India. year, the interest has peeked given the remarkable developments in the de- About 197 companies (Indian and foreign) from 17 countries displayed their arms Dfence scenario with the Indian government promoting a major drive to modernise and equipment while the Indian defence industry was represented by 39 ordnance the three wings of the military, foremost of these being the Indian Air Force’s (IAF) factories, eight defence public sector undertakings and 68 private sector companies. proposed acquisition of 126 Medium Multi-Role Combat Aircraft (MMRCA). With major defence programmes under ex- ecution and in the pipeline, and considering the factors of offsets neutralisation and India’s grow- ing defence commitments and budgets, the gen- Antony inaugurates show today eral opinion is that there is a large potential for a partnership between Indian and foreign industry A.K. Antony is known now and in the future. Hence, we enthusiastically look forward to Defexpo 2008 for his integrity and to define the contours of defence—industry partnership, both foreign and Indian, professional for future joint ventures. More than 192 foreign companies and over 92 Indian approach. A former companies are participating in Defexpo India 2008. (See list of exhibitors on pages Union Minister for Civil 22 and 23.) Supplies and Chief Minister of Background Kerala, he took over International defence exhibition Defexpo India was conceptualised in 1998 by the as Defence Minister Department of Defence Production, Ministry of Defence, Government of India on October 24, 2006. in partnership with the Confederation of Indian Industry. Thus, to modernise its Antony will armed forces, the Indian government in 1999 decided to embark on a strategy inaugurate the of collaboration with international defence manufacturers through joint ventures. event today. The strategy was aimed at encouraging the participation of domestic private sector to boost the export of arms and equipment besides meeting the needs of the Indian defence forces. The first edition of Defexpo India, on land and naval systems, was held in Delhi A landmark event in highlighting the capabilities and achievements of various de- fence industries in the country and abroad, Defexpo India provides an excellent platform for national and international manufacturers of land and naval systems “However, the LTIPP to showcase their weapons and equipment. Further, it also focuses on other areas of generally remains an defence technology in which significant advances have been made. academic document since the India’s Defence Market recommendations India is now in the market for acquiring and building ships, maritime surveillance aircraft, do not receive Central submarine rescue vessels and other assets for surveillance, like UAVs, in pursuance of the government approval. Indian Navy’s modernisation plans. As regards the land systems, for the Indian Army, 347 On the rare occasion additional T- 90 tanks are on order with Russia while the older fleet of approximately 2,000 approval has been T-72 tanks is being upgraded. Artillery requires 300 155 mm self-propelled guns (both accorded, it was only ‘in wheeled and tracked) apart from upgrading the existing medium artillery units to 155 mm principle’ and a fresh calibre. Army Aviation requires 197 light-utility helicopters, apart from medium-utility battle had to be fought and battlefield support helicopters. Military communications have to cater for a digitised for financial sanctions.” configuration of the battle space for obtaining network centricity to ensure inter and intra- service synergy. • EXPERTSPEAK Former Indian Navy Chief PROCUREMENT POLICY → National maritime interests that need to be safe Procurement programmes in the Indian Navy (IN) guarded Admiral Arun Prakash clarifies should rightly be based on the 15-year Long Term In- → Approaching equipment obsolescence on a variety of current issues tegrated Perspective Plan (LTIPP) which is formulated, → Force modernisation and expansion plans keeping in view the following: → Fast track procurement to meet urgent operational → Evaluation of likely threats needs Continued on page 5 DEFENCE–INDUSTRY TIES by Brigadier (Retd) Rahul K. Bhonsle DAWN OF A NEW ERA MANAGING EDITOR AND PUBLISHER Jayant Baranwal “We live in an uncertain international security environ- of indigenous capacity in defence production, increased ment. We are, therefore, obliged to create adequate de- cost of acquisitions and a slew of big ticket purchases ASSISTANT EDITOR fence preparedness to manage any potential challenge to to meet the cutting edge of our defence forces. Depen- Arundhati Das our security and vital national interests”. dence on ordnance factories and PSUs on one hand and —India’s Prime Minister Manmohan Singh foreign acquisitions on the other would not be able to SENIOR SPECIAL CORRESPONDENT meet the challenge of building a networked, technology Sanjay Kumar ndia’s defence industry is on the threshold of a new dominant armed forces of the 21st century. A defence era. After years of debate between guns and butter, industry partnership may provide an answer. For it will SENIOR SUB EDITOR Priya Tyagi a surging economy provides the company enough ideally meet the needs of the armed forces, reliability and Iresources to ensure security through balanced allot- timeliness of supply with life time support guarantees SUB EDITOR ment for defence without necessarily affecting develop- and periodic upgrades. In turn, this would provide the Bipasha Roy ment. The defence industrial sector is no longer seen as industry an assured production line to sustain heavy in- a pariah or an outlet for generating employment but an vestments made in the defence sector. DRDO Chief M. CONTRIBUTORS important component of comprehensive national secu- Natarajan recently indicated, “We feel the government Lt General (Retd) Naresh Chand rity. A change of mind set from revenue oriented de- has a clear responsibility to ensure that certain percent- Lt General (Retd) V.K. Kapoor fence budgeting to capital intensive outlays is one part age of acquisitions, particularly of products developed Lt General (Retd) R.S. Nagra of this transformation. Thus, India’s yearly capital bud- indigenously with enormous efforts, are compulsorily Maj General (Retd) Mrinal Suman Brigadier (Retd) R. Bhosle get is likely to vary from $10 billion (Rs 39,650 crore) sourced by the services from within the country.” Admiral (Retd) Arun Prakash to $15 billion (Rs 59,475 crore) over the 11th Five Year Rear Admiral (Retd) S.K. Ramsey Plan or Rs 40,000 to Rs 60,000 crore and above. Private Sector & Foreign Participation Air Marshal (Retd) V.K. Bhatia The Kelkar Committee formed in May 2006 for selec- Air Marshal (Retd) B.K. Pandey Defence Production & Acquisition tion of Raksha Udyog Ratna (RUR) has submitted its Air Marshal (Retd) P.K. Mehra A new found approach to restructure defence produc- report. Considering past records and future projections, tion based on defence industry partnership is another it is evident that Indian engineering majors Godrej and PHOTOGRAPHER factor indicating change. India’s military industry is Boyce, L&T, Tata Motors, Ashok Leyland, Mahindras Sharad Saxena based almost exclusively in the eight defence public and Bharat Forge are likely to be in this list. These are CHAIRMAN & MANAGING DIRECTOR sector undertakings (PSUs) and 39 ordnance factories well-established business houses with a high degree of Jayant Baranwal with two more in the planning stage. This seemingly credibility and proven track record. Godrej had been Owned, published and printed by Jayant Baranwal on behalf of large defence infrastructure has been able to produce a partner in the BrahMos while Tata and L&T are in- SP Guide Publications Pvt Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or military stores worth Rs 17,855 crore for PSUs and Rs volved in the manufacture of Pinaka and in artillery up- transmitted in any form or by any means, photocopying, recording, 6,445 crore for ordnance factories for the year 2006- grade programmes. Company sources reveal that as and electronic, or otherwise without prior written permission of the Publishers. 07, including items on capital as well as revenue ac- when the government gives the go ahead, they are ready count. A of the sizeable gap of around Rs 25,000 crore to establish production lines for defence equipment. DESIGN to Rs 30,000 crore is plugged through acquisitions ex- At another level, large multinational defence corpo- Ravijot Singh import, worth Rs 7,710 crore in 2006-07, while 10 to rations, such as Lockheed Martin and Raytheon, are Pradeep Kumar 12 per cent is invariably surrendered. establishing partnership with the DRDO and Indian Dependence on acquisition exclusively from abroad firms, thereby leveraging technology competencies and Printed in India by Rave India or the public sector is beset with many problems. project management