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.

Weekly Defence News Review (WDNR) - November 23-29, 2009

NATIONAL

• Agni-II missile fails in night trial

Reports noted that first ever night trial of the 2000 km plus, nuclear capable Agni-II missile failed to achieve desired results. The missile, fired at around 7.50 PM on November 23, from the Wheeler Island, off the Orissa coast, tumbled into the sea after a snag was developed just before the second stage separation. The lift off and the first stage separation was reportedly smooth. The test was a part of user’s trial and conducted by the Army officials with the DRDO scientists present to provide necessary logistical help. This is the fist time in the history of DRDO’s missile programme that trial was conducted in the night.

• Mahindra Defence Systems to bid for $3.5 bn defence projects

Reports noted that Mahindra Defence System (MDS), a unit of Mahindra and Mahindra (M&M) would bid for defence projects about $3.5 billion over the next seven years. These projects would come mostly from artillery systems and armoured vehicles, said Kutab A Hai, CEO, MDS. He also said that his company, which has formed a joint venture company with UK’s BAE System, will try to generate up to $430 million by 2016. In January 2009 the two companies announced that they have got a clearance from Department of Industrial Policy and Promotion (DIPP) to set up a JV in India, in which the British company would hold 26 per cent equity shares and rest by its Indian partner.

• DRDO to develop unmanned combat aerial vehicle

Reports noted that India’s premier Defence Research and Development Organisation (DRDO) would design and develop an indigenous unmanned combat vehicle (UCAV). Quoting the head of the organisation, Dr V K Saraswat, the report said, the UCAV “will not only do surveillance, but will also help detect the target and destroy the identified object”. The project will be led by its Bengaluru-based Aeronautical Development Establishment (ADE), with private sector participation. In the mean time, ADE is also developing a medium altitude long endurance unmanned aerial vehicle (MALE), codenamed Rustom. Its prototype, developed by Taneja Aerospace and Aviation Ltd, was however crashed in its first ever trial in November 16, 2009.

• Tejas trainer makes successful maiden flight

Reports noted that the first flight of the two-seater trainer version of Light Combat Aircraft, Tejas was successful. The flight test, conducted on November 26th, “covered an altitude of 9 km and a speed of 0.85 Mach,” according to a Defence Research and Development Organisation (DRDO) official. The trainer is likely to replace Indian Air Force’s (IAF’s) HPT-32.

• UK offers India to upgrade Jaguar; discusses HAWK AJT problems

A three-member British delegation led by the Minister for Defence Equipment and Support (DE&S), Mr. Quentin Davies met India’s Minister of State for Defence Shri MM Pallam Raju in New Delhi on November 27th. Mr. Davies told his country was eager to help India in the upgradation of the Jaguar fighter jets and overcome problems related to licensed production of Hawk Advanced Jet Trainer at the Hindustan Aeronautics Ltd (HAL). Both the leaders expressed satisfaction over the ongoing Defence Cooperation between the two countries. Shri Pallam Raju said that all the three Services have been holding Joint Exercises every year alternately on each other’s soil and territorial waters. Mr. Davies said that the UK Forces have participated in Joint Exercises with India despite being overstretched due to commitments in Afghanistan and Iraq while a number of such exercises with other countries were not held. Shri Pallam Raju informed the visiting dignitary that India was ready to sign a General Security Arrangement (GSA) with the UK while an MoU on Host Nation Support (HNS) was under examination of an inter-ministerial committee.

INTERNATIONAL

• Japan considers F-35 Purchase

Reports noted that Japan is considering to buy about 40 F-35 fighter jets as the future mainstay of its air force (see image of F-35; source: Lockheed Martin). Earlier it had proposed to buy F-22 Raptor, considered to be the most advanced with radar-evading capability, to replace its aging F-4EJ fighter fleet, but failed to acquire as America announced a plan to halt its production. Each of the F-35 is likely to cost Japan an estimated $101 million.