Weekly Defence News Report (WDNR) - March 22-28, 2010

• L&T to build 36 boats for Coast Guard

March 22, 2010

Reports noted that India’s leading technology, engineering, construction and manufacturing company, Larsen and Turbo (L&T) has bagged an order worth 970 crore from the Ministry of Defence for supply 36 high speed interceptor boats to the Coast Guard. The boats are to be designed by the company’s own design centre and constructed at its Hazira-based shipyard. The MoD’s contract is in view of its various initiatives to strengthen costal security.

• Government mulling 100 per cent FDI in defence; NSC wants extra filter in clearing FDI proposals

May 25, 2010

In what could be major policy development, the government is considering a proposal to allow 100 per cent FDI in defence production. The Ministry of Commerce has sent a ‘note’ to the Cabinet Secretariat for discussion on allowing foreign companies to bring in 100 per cent equity to set up their own manufacturing or integration centres in India. Allaying the concerns that India based fully foreign-owned companies may not be the county’s security interest, the note argues that the same concern remain in case of direct import and hence can not be cited for opposing higher FDI.

In a related developed the National Security Council (NSC), a body which reports to PM, has proposed a layer in addition to the existing Foreign Investment Promotion Board (FIPB), for filtering inflow of foreign equity into the country. The Council’s proposal is in view of concerns “over flow of funds from inimical forces into the nation masquerading as FDI in sensitive areas of defence, telecom, pharmaceutical and airports.”

• Dhanush, Prithvi-II missiles test-fired successfully

March 27, 2010

India successfully test fired on same day two of its indigenously developed, nuclear capable missiles, Dhanush and Prithiv-II. The test was conducted by the country’s Strategic Forces Command (SCF) as part of user-training exercise, in the presence of high-officials from the premier Defence Research and Development Organisation (DRDO). Both the missiles, tested in salvo-mode, hit the pre-identified targets with high degree of accuracy.

Dhanush, a naval version of Prithvi missile, has a flight range of 250 km, and can carry a payload of about 500 kg. The missile has been weaponised on INS Subhadra and Suwarna. Prithvi-II is a surface-to-surface missile, has the same flight range and payload capacity as Dhanush.

• Agni-I test-fired successfully

March 28, 2010

A day after successful test of Dhanush and Prithvi-II missiles, India test succsfully fired its nuclear capable Agni-I missile from the Wheeler Island off the Orissa coast. "It was a fantastic mission carried out by the Indian Army. The test-firing of the Agni-I missile met all parameters," S P Dash, the director of Integrated Test Range. The missile, which can carry one tonne warhead with a flight range of 750 km, was equipped with a new navigational technology to help it to home on to the target.

Weekly Defence News Review (WDNR) - November 30-December 06, 2009

• Mahindra and BAE Systems to set up joint venture in India

November 30, 2009

Post approval by the Department of Foreign Investment Promotion Board earlier this year, India’s Mahindra and Mahindra (M&M) and UK’s BAE systems have signed an agreement to set up a joint venture (JV) in India with an initial investment of $21.25 million spread over a three year period. The JV, owned 74 per cent by M&M and rest by its British partner, will focus on land-based systems, at a facility south of Faridabad, outside of Delhi. It will initially employ about 100 employees and execute projects including the Axe high mobility vehicle and up-armoured and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and Marksman light armoured vehicle, Besides, the JV will also manufacture a brand new vehicle named Mine Protected Vehicle India (MPVI), the developmental process of which has been completed based on both companies’ respective strengths. In future, the JV intends to execute a number of artillery programmes, including the M777 light weight howitzer and the FH77B howitzer. The JV’s official name is presently going through official certification process.

• Admiral Gorshkov scheduled for induction in late 2012

November 30, 2009

In a written reply to the Lok Sabha, the Union Defence Minister, AK Antony told that aircraft carrier, Admiral Gorshkov was scheduled for induction in December 2012. It is noteworthy that following an Intergovernmental Agreement in 2000, India and Russia had signed a contract worth $974 million in 2004 for induction of the carrier into Indian Navy in August 2008. However, later on the Russian side submitted a revised plan, indicating delay in delivery and increase in prices to $1202 million. India has agreed to negotiate a revised contract, following which the details of final prices would be known.

• Second SU-30MKI Crash

November 30, 2009

In a second mishap involving the most advanced fighter with the Indian Air Force, a SU-30 MKI crashed near south-west of Pokhran on November 30. The aircraft was airborne on a routine training sortie and following the crash, the IAF has grounded the entire fleet. The IAF has about 90 SU-30MKI, and is in the process to take the total to 230, of which 140 would be manufactured/assembles by the state-owned Hindustan Aeronautics Ltd (HAL). The fighter which crashed in Pokhran was reportedly supplied by the HAL.

• FIPB Rejects EADS-L&T joint venture

December 01, 2009

The Foreign Investment Promotion Board has rejected a proposal from the Franco-German aerospace and defence group, EADS and India’s Larsen and Toubro’s (L&T) to set up a joint venture in India. The JV’s proposal was to supply electronic warfare system, avionics and radars. Although FIPB has not elaborated the reasons for rejection, it was reported that the proposed JV could exceed the maximum FDI limit allowed in defence production sector. India at present allows 26 per cent FDI in defence industry, subject to prior approval and licensing.

• Import-Indigenous technology for Arjun and Tejas

December 02, 2009

In a written reply in the Rajya Sabha, the Defence Minister, AK Antony informed that MBT Arjun’s power-pack comprising of engine and transmission is imported from Germany, while the armament system is indigenously developed. In Tejas aircraft, the engine is fully imported from the US, which also contributes along with Israel, France, Italy and UK, 30 per cent of the aircraft’s avionics. To indigenise the technology currently imported for these two items, India is taking further actions. It is currently contemplating a plan to work with an international manufacture to give additional boost to the indigenous Kaveri engine developed by DRDO for Tejas. To develop the indigenous power-pack for Arjun, a Project involving the DRDO and potential players has also been proposed on a joint venture basis.

• Delay in Scorpene delivery

December 02, 2009

Giving a reply in the Rajya Sabha, Defence Minister, AK Antony told that there could be delay in delivery of Scorpene submarine to the Navy, due to “some teething problems, time taken in absorption of technology and delays in augmentation of industrial infrastructure and procurement of Mazagon Dock Ltd (MDL) purchased materials.” As per the initial schedule, a total of 6 submarines were to inducted by December 2017, starting from one in December 2012, followed by one each year thereafter. The Scorpene project was sanctioned in October 2005 with an estimated budget of Rs. 18,798 crore, under a technology transfer agreement with French company Armaris.

• Navy gets first batch of Mig 29 K fighters

December 04, 2009

The first batch comprising four Mig 29 K fighters reached India in knocked down form onboard AN 132 cargo aircraft. The fighters, two of which are single seater aircrafts and two twin-seater trainers, are to be based on Goa and operate from shore until the Gorshkov carrier is inducted in December 2012. India has already ordered 16 Mig 29 Ks and is believed to be interested to procure 29 additional fighter of the same class.