Post Show Report - ses-india.inses-india.in/Post Show Report - SES 2014.pdf · Post Show Report 30th & 31st July, 2014 ... Greater importance of defence avionics, as well as, an expanding

Post Show Report

30th and 31st July, 2014 Bangalore International Exhibition Centre, Bengaluru

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ELCINA Electronic Industries Association of India ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi – 110020, India

Tel: +91 11 26924597| Fax: +91 11 26923440 | E-mail: [email protected] | URL: www.elcina.com

STRATEGIC ELECTRONICS SUMMIT 2014 Post Show Report

30th & 31st July, 2014, Bangalore International Exhibition Centre (BIEC), Bengaluru

The 5th Strategic Electronics Summit 2014 (SES 2014) – Defence & Aerospace, was organised

by ELCINA on 30th & 31st July, 2014 at Bangalore International Exhibition Centre (BIEC),

Bengaluru. The idea of SES was mooted by the ELCINA Executive Committee in 2009. It

recognized the potential of this sector and the Indian industry’s special skills in the high

technology low volume production.

ELCINA identified the following key factors, which inspired us to focus on strategic electronics

-

Rapid and supportive changes in Government thinking regarding Defence Production

as well as Procurement Policies. Encouraging indigenous production and value addition,

as well as participation by SME’s

Large and growing budgets for the Defence & Homeland Security

Greater importance of defence avionics, as well as, an expanding aviation industry

Increasing threat in dependence on imports, for national security equipment

High potential for employment and revenue generation

Capability and keenness of the Indian industry to participate in manufacturing

SES 2010, 2011, 2012 & 2013 – Successfully Brought Industry, Defence Establishment & Government Together !

Earlier editions of Strategic Electronic Summits demonstrated great interest and opportunity

that the industry saw in the Strategic Electronics sector and participated wholeheartedly.

Deliberations and discussions were intense and passionate between all stakeholders. There

were over 150 organisations participated as Exhibitors and / or Delegates. All the activities

like Conference, Exhibition, Technical Sessions & Buyer-Seller meetings witnessed keen

participation with over 300 delegates in the Conference and good footfalls of business visitors.

With Hon’ble Shri MM Pallam Raju, Minister of State for Defence as the Chief Guest in 2010,

Air Marshal Jagdish Chandra, DG System, Air Hq. in 2011 & Hon’ble Shri Pallam Raju the

Chief Guest once again in 2012, Shri MN Vidyashankar, Addl. Chief Secretary, Commerce &

Industries, Govt. of Karnataka in 2013 and top officials from Defence and Department of

Electronics & IT as Guests of Honour, the earlier four editions of the Summit proved to be an

excellent forum for sharing of views with top policy makers. Dr. Ajay Kumar, Jt. Secretary,

Dept. of Electronics & IT graced SES as the Guest of Honour in 2011 and again in 2013.

Subsequent to SES 2010 and 2011, ELCINA presented the Defence Ministry with its

recommendations and we believe that some of the key issues have been addressed in the

new Defence Production Policy 2011, which was released in January 2011, specially in favour

of SME’s.

Snapshot of Previous SES Events

1st Strategic Electronics Summit – 2010

- Date – 2nd July, 2010

- Venue – Indian Institute of Science,

Bengaluru

- Number of Participating companies - 62

- Number of Exhibitors - 32

- Number of buyers - 9

2nd Strategic Electronics Summit – 2011

- Date – 29th June, 2011

- Venue – HAL convention Center, Bengaluru

- Number of Participating companies - 85

- Number of Exhibitors - 21

- Number of buyers – 11

3rd Strategic Electronics Summit – 2012

- Date – 26th – 27th July, 2012

- Venue – HAL Convention Center,

Bengaluru

- Number of Participating companies - 135

- Number of Exhibitors - 33

- Number of buyers - 11

4rd Strategic Electronics Summit – 2013

- Date – 2nd August, 2013

- Venue – HAL Convention Center, Bengaluru

- Number of Participating companies – Over 120

- Number of Exhibitors – 33

- Number of buyers – 04

A Summary of SES 2014

OBJECTIVES OF THE EVENT

Bring all stakeholders on one platform to enable better communication and

understanding of requirements of the defence establishment.

Facilitate in creating indigenous capability to manufacture defence equipment and meet

these requirements.

Create awareness about opportunities in the Strategic Electronics sector.

Involve the Small and Medium Enterprises to meet the requirements of Defence Forces.

Bridging the gap between R&D, Government organizations and businesses.

Explain and highlight the new Defence Production and Offset Policies.

Encouraging and enabling investments for developing strategic strengths.

PROGRAM DETAILS

International Conference Conference Theme : “Make Indian – Dream to Reality” - Transforming the Indian

Strategic Electronics Eco-System

Day -1 Defence & Aerospace Market Potential

Day -2 The Road to Indigenization

Exhibition to showcase opportunities for buyers and sellers

Buyer Seller Meet - Pre-arranged One to One Business Meetings

Special Technology/Business Promotion Sessions

Conference on Make Indian – Dream to Reality

Transforming the Indian Strategic Electronics Eco-System

CONFERENCE PROGRAMME DAY – 1: 30TH JULY, 2014 (WEDNESDAY)

9:00 – 9:30 am Arrival & Registration 9:30 – 11:00 am Welcome Address - Mr. Subhash Goyal, President

ELCINA

Address - Dr. Maheshwara Reddy K, Group Director &

Outstanding Scientist, DARE

Special Address - Mr. Ian Felton, Deputy High

Commissioner, UK Guest of Honour - Mr. M Maheshwar Rao IAS,

Commissioner for Indl. Development & Director of

Industries & Commerce, Govt of Karnataka

Guest of Honour –Mr. S K Sharma, Chairman & Managing

Director, BEL

Chief Guest – Dr. R K Tyagi, Chairman, HAL 11:00–11:30 am Tea Break; Inauguration & Visit of VIP Guests to Mini Exhibition 11:30 – 1:00 pm Session – II - Defence Electronics – Market Potential and

Opportunities for ESDM Companies

Lt. Gen (Retd.) A K S Chandele, PVSM, AVSM – Session

Chairman - “Policies and procedures to promote Self

Reliance and Indigenisation in Defence Electronics”

Cdr K Arun, Sr Systems Manager, WESSEE

Dr. P Sivakumar, Director, CVRDE – Combat Vehicles &

Unmanned Ground Vehicles

Mr. N Ramachandran, CMD, MEL Systems & Services &

Past President ELCINA

Mr. Sanjay Handu, Director, TE Connectivity

1300 – 1400 HRS Networking Lunch 14:00 – 15:00 HRS Session – III - Enabling Policies – DPP & Defence Offsets for Make &

Buy Indian

Col (Retd) K V Kuber, Advisor, NSIC -Defence Offsets

and their Business Potential

Brig (Retd.) S C Sharma, Axis Aerospace &

Technologies -Capabilities of Indian Industry in Defence

Electronics

Mr. Vipin Tyagi, Director, Center for Development

of Telematics (C-DOT)- Secure Telecommunications

for Defence Sector

Technology Sessions: :

SESSION –I 1530 – 1630 Hrs Hindustan Aeronautics Ltd. (HAL)

SESSION – II 1630 – 1730 Hrs Directorate of Indigenization, Ministry of Defence

DAY – 2: 31ST JULY, 2014 (THURSDAY)

9:30 – 11:00 HRS Session – I – The Road to Indigenization

Brig Sanjay Prasad, DDG Indigenisation, Dte Gen of

EME

Mr. P Sudhakar, CMD, ECIL – Industry Address

Mr. S P Bhattacharya, General Manager (MCSRDC),

HAL

Mr. Ashok Atluri, CMD, Zen Technologies -Industry

Perspective on Indigenization 11:00–11:30 HRS Tea Break; Inauguration & Visit of VIP Guests to Mini Exhibition 11:30 – 13:00 HRS Session – II - Requirements of Homeland Security and Paramilitary

forces Session Chairman – Mr. T Vasu, Past President

ELCINA and Director Tandon Group

Shri Ashok Dohare, IPS, Addl. Director General Of

Police, State Cyber Police, M.P.

Dr. A P Maheshwari, IPS, IG (CRPF), Northern Sector

Mr. N. S. Mahesh, Agilent Technologies India Pvt. Ltd.

1300 – 1400 HRS Networking Lunch

Technology Sessions:

SESSION – I 1400 – 1445 Hrs Electronics Corporation of India Ltd.

SESSION – II 1500 - 1600 Hrs Centre for Materials for Electronics

Technology (CMET)

Buyer Seller Meetings (Jacaranda Hall) 1430 – 1630 Hrs

Bharat Electronics Ltd (BEL) C-DOT

Hindustan Aeronautics Ltd. (HAL)

Dte of Indigenisation, Army

List of Participating Companies EXHIBITORS/SPONSORS

Agilent Technologies

Amphenol Interconnect Anritsu India

Anvin Technologies Autocal Solutions

Bharat Electronics Ltd.

C-DOT Centum Electronics

Dexcel Design Digital Circuits

ECIL EFY

Electrosolve ESSCI

Geosensors GMR

Growcontrols

HAL

Hical Hindustan Aeronautics Ltd.

Intron Kaynes Technology

MEL Systems

Miracle Electronics Navika Electronics

Nihon Communications Pentair

Rohde & Schwarz Saankhya Lab

SLN Technologies Structural Solution

TUV Rheinland UKTI

Weiss Technik

DELEGATES/SPONSORS

3G Wireless 515 Army Base Workshop

Aarjay International Pvt Ltd ADS Group Limited

Aeronautical Development Agency (ADA)

Aeronics eMaRoh Pvt Ltd Aerospace Engineers

Amara Raja Electronics Limited

Applied RealTech Systems Pvt Ltd

Ashok Leyland Astra Microwave

Astute Sattva Electronics Pvt

Ltd Atotech India

Avurva Infotech Axis Aerospace

BAeHAL BE Analytic

Bharat Dynamics Ltd. Border Security Force - BSF

Brahmos Aerospace

Bureau of Police (R&D) - Min. of Home Affairs

C&S Electric Ltd CAIR

Captronic Systems Pvt Ltd Champion Electronics

CII Guardian International Limited

C-MET Communication Trg. Inst. -

IAF Cosel Asia Ltd, India Liaison

Office Crompton Trading Company

CRPF

CVRDE Deepti Electronics

Defence Avionics Research Establishment (DARE)

Diagnosys Electronics (I) Pvt Ltd

Directorate of Indeginisation DRDO

Dynalog India EADS DS India Pvt Ltd

Ealone

Electrical & Instrument Trg. Inst.-IAF

Elico Ltd. Elin Electronics Ltd

Elkay Electromech India Pvt. Ltd

Ellsworth Adhesives India Pvt Ltd

EMI Solutions Pvt Ltd Entec Engineering

ENTEST Technologies Private Limited

Entuple Technologies Pvt Ltd EXPANDYS Ltd

Federation of Indo Israeli

Chamber of Commerce Flextronics

GAD Aerospace Private Limited

Gati-KWE Global SMT Packaging

Gyanjes Electrotek Hitech Magnetics &

Electronics Pvt Ltd IETE, Bangalore

Indo American Chamber of Commerce

Indus Teqsite Private Limited

Infineon Technologies

Invineon Technologies Private Limited

JAGRUTI ELECTRONIC TECHNOLOGIES

Latitude Edutech Leo Circuit Board

MACOM Technology Solutions (Bangalore) Pvt

Ltd MAK Controls & Systems

MAP Electronics Mark TechPro & Consultants

Market Research Reports Mathwork

Millennium Power & Security

Solutions MP State Cyber Police

Multek

Multisphere Power Solutions

Naabhya Interconnect LLP. Naval Science &

Technological Laboratory (NSTL)

Nicomatic India Electronics NSIC

NSTL OSR Consultants

Perfect Controls R Tips Technologies

Rajdeep Automation Pvt Ltd Rangsons Electronics

RBP Technology (India) RIICO

Ritz Shipping & Logistics Co.

RMC Electronics Sahasra Electronics

SGS Tekniks Mfg. Sika Interplant Systems

Limited Smartlink Network

SN Industrial Consultants (SNIC INDIA)

Sri City Stanesh Semiconductor

STMicroelectronics Asia Pacific Pte Ltd

Syratron Technologies Systems Aids

Tandon Group

Tata Power SED TE Connectivity

Tech Mahindra Ltd Teknic Electromeconics

Test and Verification Solutions India Pvt Ltd

Titanium Industries Toshikcon

TRIBI Systems Pvt. Ltd Trigya Exim Pvt. Ltd

Vantage Technologies Vectron

Veer-O-Metals Pvt Ltd WESEE

Xtraaedge

Yeshshree Press Comps Zen Technologies

STATUS OF INDUSTRY AND OPPORTUNITIES

The Strategic Electronics sector presents an unprecedented opportunity as well as

challenge for our country. This is equally so for the domestic industry which needs to play a much greater role in this sector. The strategic electronics segment encompasses Communication systems, Radars & Sonars, Network Centric systems, Electronic Warfare

systems, Weapon systems, Satellite based Communication, Navigation and Surveillance systems, Navigational aids, underwater electronic systems, infra-red based detection

and ranging system, disaster management system, internal security systems ..… the list is long. All modern weapon systems, military, aerospace, naval or for internal security depend heavily on electronics.

The production of strategic electronics in India has been growing steadily from Rs. 5700 crores in 2007-08 to Rs.9000 crores during 2010-11. As per projected growth rates,

electronics production in Defence Sector in India is likely to reach Rs.12,000 crores during 2012-13 and exceed Rs 13,800 Crores during 2013-14 recording a growth of over 15%. This growth is fuelled by the expanding budgetary allocation for Defence Sector

which jumped from Rs. 164,415 crores in 2011-2012 to Rs. 193,407 crores in 2012-13 and further allocation has been increased by 5% to Rs 2,03,672 crore for 2013-14 with

provision for further funding depending on actual requirements.

Of this, Capital expenditure, which mostly caters for modernisation requirements, accounted for Rs 79,579 crores in 2012-13 and was increased by 9% to Rs 86,741

Crores in 2013-14.

The Defence Procurement Procedure 2011 for capital equipment has come into effect

from January 2011 and incorporates simplifying the purchase mechanism. The scope of the offset policy guidelines have been expanded to include civil aerospace, internal security and training within the ambit of eligible products and services for discharging

offset obligations offering an immense growth opportunity for domestic electronics manufacturers serving Defence segment.

For the first time in India, a Defence Production Policy was announced and became effective from 1” January, 2011. The objectives of the Policy are to achieve substantive

self-reliance in the design, development and production of entire range of Defence equipments and encourage SMEs to play an active role in this endeavor.

SES brings this opportunity to domestic players and endeavors to bring about

partnerships with global players who are vital for meeting the strategic needs of the country.

Offset Policy - a new beginning for domestic players India's defence offset policy is being seen as a key driver for growth and modernization of the defence industry base. Modified in 2009 & 2013, it is expected to provide

manufacturing and business opportunities of Rs.40,000 crores over the next five years and has opened doors for private players, mainly domestic players.

Following are the highlights of the amendments to the DPP-2011 which have been brought into effect from 1st June 2013:

1. Prioritisation of Various Categories for Capital Acquisitions under Defence Procurement Procedure

Preference for indigenous procurement in the Defence Production Policy 2011 has now been made a part of DPP through an amendment that provides for a preferred order of categorization, with global cases being a choice of last resort.

2. Release of Public Version of Long Term Integrated Perspective Plan (LTIPP) The DAC has approved the release of a public version of its 15-year perspective document (LTIPP), outlining the “Technology Perspective and Capability Roadmap”

(TPCR) against LTIPP 2012-2027. s and directing its R&D and technology investments. 3. Maintenance ToT (MToT) no longer through Nomination

MToT has been hitherto reserved largely for OFB and DPSUs through the nomination process. The DPP does away with nomination by Department of Defence Production and facilitates selection of MToT partners by Indian bidders.

4. Advance Consultations for “Make” Procedure The DAC has approved an amendment mandating consultations to begin sufficiently in

advance of actual procurement by Service Head Quarters (SHQs), so that capital acquisition plans can be translated into national defence R&D and production plans. 5. Simplification of “Buy & Make (Indian)” Procedure

The DAC has approved an amendment further simplifying this complex category. 6. Clear Definition of Indigenous Content

To enhance indigenization, indigenous content has now been defined in an unambiguous manner, providing requisite clarity and a common understanding. 7. Ensuring faster progress in “Make” and “Buy & Make (Indian)” cases

The Ministry has a limited number of acquisition cases under “Make” and “Buy & Make (Indian)” categories, with an estimated value of Rs. 1,20,000 crore. Instructions have

been issued for speedier conclusion of these cases. 8. Defence Items List The Defence Items List has been finalised by the Ministry and sent to DIPP for

notification, which will bring required clarity in the licensing process. 9. Licensing for Dual Use Items

The Ministry has categorically clarified to DIPP that dual-use items will not require licensing, thereby bringing added clarity to the licensing process. 10. Consultations on Security Guidelines for Indian Defence Industry

It is expected that a complete security framework with guidelines for Indian private industries participating in defence cases will be in place in the near future.

11. Resolution of Tax-related Issues Resolution of deemed exports status for certain defence projects and rationalisation of tax and duty structures impinging on the Indian defence industry has been taken up by

the MoD with the Ministry of Finance. 12. Funds for MSMEs in the Defence Sector

The Defence Production Policy 2011 requires the setting-up of a fund to provide necessary resources for development of defence equipment. In order to ensure regular

supply of funds to MSMEs involved in manufacturing of defence products, SIDBI has decided to earmark an amount of Rs. 500 crore for providing loans, and further, a fund of Rs. 50 crore for equity support out of “India Opportunities Fund” managed by its

subsidiary, namely, SIDBI Venture Capital Ltd. 13. Efficiency and Transparency in Defence Procurement

A stipulation to freeze the SQRs before the “Acceptance of Necessity” (AoN) stage has been accorded, and the validity of AoN has also been reduced from two years to one year.

14. Enhanced Delegation of Financial Powers The financial powers of Service Chiefs/ DG Coast Guard have been enhanced from Rs.

50 crore to Rs. 150 crore for capital acquisition cases. 15. Powers to DAC Approval for all deviations from the Defence Procurement Procedure will henceforth be

sought from the Defence Acquisition Council instead of the Defence Minister.

The Offset opportunity is expected to bring in large volumes of business – the size of this opportunity is estimated at USD 10-15 Billion over the next 4-7 years. The current global defence expenditure was over US$ 1.465 Trillion with US being the

largest with 40% share while India’s share was 2.1% (~US$30 Bn+). India is currently among the top 10 spenders worldwide with its defence expenditure growth at about

9.3%. India’s defence Expenditure was distributed as follows - 46% on the army, 30% on air force, 19% on navy & balance 6% others. A larger share of capital expenditure went to the Air Force at 40%, the Army got 28%, Navy 25% and 7% to others.

Recent Developments:

Categorisation of Products Changed

Through an Office Memorandum dated August 25, 2014, Defence Product List categorisation has been updated wherein Category C has been removed and products

are classified as ‘A’ and ‘B’ only. Category A products involve highly classified and sensitive items from the security angle and the manufacturing of these items would

require the highest level of security. Category B include semi-finished products, sub-assemblies, sub-systems of main weapons/ equipments/ platforms and some finished products of lesser degree of sensitivity.

Security Manual for Licensed Defence Industries issued in June 2014

Department of Defence Production issued Security Manual provides the security

architecture that needs to be put in place by the Indian defence companies in the private sector before undertaking the manufacturing of Defence products for which they have been issued industrial licence under IDR Act. The level of security will depend upon the

category of the product, the company intends to manufacture. Under all circumstances, the companies with whom any classified information is shared by the Government as a

part of the procurement contract or otherwise would come under the purview of Official Secrets Act, 1923.

Requirement of Industrial Licence for Maintenance, Repair and Overhaul (MRO)

activities

The issue of grant of Industrial License for Maintenance, Repair and Overhaul(MRO)

activities in Defence Sector was under consideration in this Department and it has now been decided (OM dated 26, June, 2014) with the approval of Competent authority, that MRO activities in Defence sector may be treated as services and should not be subjected

to the Industrial License under IDR Act unless it actually involves manufacturing of any components/ sub-assemblies which are licensable and that product should remain the

property of the same customer after MRO operation.

Facilitation Cell for Defence Offset

Defence Offset Monitoring Wing (DOMW) has established a facilitation cell for foreign vendors and Indian Offset partners to interact and clarify issues related to offset (OM dated 14/02/2014).

Homeland Security in India

Presently, the cumulative annual budget allocation for all States and Union Territories under the specific expenditure head of ‘Police’ is approximately INR 44,354 crores,

which, despite a 21.7 per cent increase over the 2008-09 amount of INR 36,434 crores, still amounts to a meager 4.3 per cent of the total budgeted expenditure of all States

and Union Territories in 2009-10 . Of this amount, more than 80 percent is spent on salary and maintenance of the forces and only about 20 percent is available for training and other capability building activities. In addition to this amount, the Ministry of Home

Affairs released INR 1,230 crores as central funds for the modernization of India’s police forces in 2009-10 . Also, in order to enhance the Homeland Security of the country

through a specific focus on certain identified cities, the Ministry of Home Affairs allocated over INR 450 crores for city surveillance projects. The Indian homeland security budget reached US$10.1 bn in 2012and will surpass US$ 15 bn by 2015 providing a huge

opportunity to domestic as well as foreign vendors.

Key equipment with supply potential for industry players:. Explosive detection

and containment, EO-IR sensors including Night vision devices, Intelligent Airfield & Runway Surveillance & Fallen Object & Debris Detection System, Automatic Vessel Detection, Identification & Classification system, Perimetric control including Boom

Barrier, Bollards, Turnstiles, Door, Frame Metal Detectors, Scanners : Hand-held, Body Scanners, Baggage Scanners, Access Control System including Biometrics & RFID Cards,

Surveillance including Intelligent Surveillance System, Mobile Video, Surveillance, CCTV & PTZ Cameras, DVR's, UAVs, UUVs, UGVs.

Establishment of “Centre of excellence on internal security” (CEIS) at IIT-

Bombay by Indian Government in association with private industry. CEIS with its state of the art facilities is expected to function as a resource centre that will pursue research

and development (R&D) into cost effective electronic equipment that can then be mass produced by Indian industry for India's security agencies.

SUMMARY OF PROCEEDINGS

The 5th edition of Strategic Electronic Summit was inaugurated by Shri R. K. Tyagi, Chairman, Hindustan Aeronautical Ltd. on 30th & 31st July, 2014 at Bangalore International Exhibition Center HAL Convention Centre (BIEC), Bengaluru.

Day 1 – 30th July, 2014 - Inaugural Session

Shri R. K. Tyagi, Chairman, Hindustan Aeronautical Ltd.:

Dr. Tyagi, the Chief Guest, he drew attention to the fact that imports of electronic items is going to surpass petroleum import bills and in near future it will become a heavy

burden on foreign exchequer. He reminded about the government’s commitment to overcome this problem with the help of new Electronics Policy. He apprised the audience about the Skill Council initiative of HAL to overcome the demand-supply gap of skilled

manpower in the segment of aerospace.

Dr. Maheshwara Reddy K, Group Director & Outstanding Scientist, Defence

Avionics Research Establishment (DARE) : According to Dr. Reddy India needs to expedite its efforts for technology up-gradation through rigorous research and development initiatives. He also mentioned various

government policies for technology transfer to private manufacturers.

Mr. Ian Felton, Deputy High Commissioner, UK :

Mr. Felton the Special VIP Guest, informed participants about the distinct status that UK is enjoying in the electronics and semiconductors market. He drew attention towards the potential of an alliance of Indian firms with their UK counterparts. Mr. Felton emphasized

the importance of quality that UK firms adapt in their designing and production processes. He also invited domestic players to come and have alliances with UK firms in

India.

Mr. Maheshwara Rao, IAS, Commissioner for Industrial Development & Director of Industries & Commerce, Govt. of Karnataka :

Mr. Rao was the ‘Guest of Honor’ for the event. He apprised the audience about Karnataka Government’s intensions to support and promote domestic manufactures

involved in Aerospace and defense productions. Mr. Rao informed about government’s initiative of establishment of dedicated Aerospace Park near Bengaluru airport. He also invited industry players for any support that his office can offer.

Mr. S K Sharma, Chairman & Managing Director, Bharat Electronics Ltd. (BEL) :

Mr. Sharma was the ‘Guest of Honor’ for the event. He mentioned that buying from small domestic manufacturers is a win-win situation for both the parties, and it is not obligatory in nature. He wished domestic industry to achieve greater heights in the

times to come and invited them to work for and with BEL. Mr. Sharma explained the key role that BEL was playing in strengthening the domestic value chain and special efforts

they were making in engaging with SME’s to promote domestic manufacturing in Strategic Electronics.

Mr. Subhash Goyal, President ELCINA & Managing Director, Digital Circuits Pvt. Ltd.:

In his opening remarks, Mr. Goyal welcomed all the guests and speakers in SES, 2014. He highlighted the growing importance of Defense and homeland securities to counter external and internal threats. He also mentioned the fact that India is among the top ten

in terms of defense expenditures and growing importance of electronics in this sector.

Session II – Defence Electronics – Market Potential and Opportunities

Enabling Policies – DPP & Defence Offsets for Make & Buy Indian

Lt. Gen. (Retd.) A K S Chandele, PVSM, AVSM chaired the 2nd session on “Defense

Electronics- Market Potential and Opportunities for ESDM”. His topic of discussion for the session was “Policies and procedures to promote Self Reliance and Indigenization in Defense Electronics”. He began by giving an overview of the modernisation plan of the

armed forces listing the major equipment requirements, analyzed the strategic electronic component of these requirements and discussed the strengths and weaknesses of the

indigenous industry in meeting these requirements. Apart from procurement of new equipment, he discussed the issue of life time sustenance of existing imported

equipment through indigenization of spare parts and establishing MRO facilities. He emphasized the importance of creation of a conducive policy environment for the private sector, particularly the MSMEs.

Cdr. K Arun, Sr. Systems Manager, WESSEE: Cdr. Arun suggested a proactive interface of industry with Indian Navy regarding supply of indigenous goods. He advised industry to visit the portal of Directorate of

Indigenization of Navy on which Navy has posted its 15 years requirements. Cdr. Arun also emphasized the need to reduce time between inception and delivery to make the

deals feasible. Mr. N Ramachandran, Past President ELCINA & CMD, Mel Systems & Services :

Mr. Ramachandran spoke about the overall dynamics and problems faced by domestic entrepreneurs in the production of Strategic Electronics. His emphasis was on the

mismatch between fast changing technology and the speed of its adoption, particularly through manufacturing in the country leading to slow growth rate towards self-reliance. He also stressed on the need for establishing hi-tech testing facilities for electronic

equipment’s in the country. Mr. Ramachandran also presented an action plan for speedy technology transfer from government research bodies like DRDO to domestic

manufacturing establishments. Dr. P Sivakumar, Director, Combat Vehicles Research & Development

Establishment (CVRDE):

Dr. Sivakumar appreciated the concerns of Mr. N Ramachandran and assured that most of the concerns may be addressed within a year’s time. He also emphasized that

domestic players should struggle hard to acquire and develop indigenous technology so that defense industry may consider them empanelling in their list of vendors. Dr. Sivakumar mentioned certain strategic requirements of the defense industry on which

private domestic players can work upon since most of these requirements are fulfilled by imports only.

Mr. Sanjay Handu, Director, TE Connectivity: Mr. Handu appreciated the intention of government to strengthen the domestic

electronic industry which is evident through catalytic policies like National Policy on Electronics and National manufacturing policy. He highlighted that the Indian defense

electronics industry is currently poised on a similar inflexion point as was observed in past history for industry segments like automotive and telecom that went through similar challenges and then sudden explosive growth. Mr. Handu also drew attention to

the demand supply between indigenous production and imports in the defense sector, which should be perceived as an opportunity for growth & domestic players. He

emphasized the need for a calibrated approach to indigenization and synergy between government and related private industry for timely opportunity realization.

Session III – Enabling Policies – DPP & Defence Offsets for Make & Buy Indian

Col. (Retd.) K. V. Kuber, Advisor, NSIC coordinated the 3rd Session on ‘Enabling Policies – DPP & Defence Offsets for Make & Buy Indian’. Col. Kuber spoke

extensively about challenges that MSME’s face in the Defence Electronics sector and not provided a fair and equal opportunity. He made various recommendations such as

Government must pay for withdrawal of RPF’s under the NCNC Policy. He also recommended that there should be special preference for purchasing from MSMEs under BUY Indian policy. He advised MSMEs to keep focusing on exports also since the

previous year’s export figures are quiet encouraging.

Brig. (Retd.) S C Sharma, Axis Aerospace & Technologies :

Brig. Sharma suggested various ways to bridge the gaps between MoD and MSMEs in India. He presented his vision of India being a Global force in the production of strategic electronics through policy modifications.

Mr. Vipin Tyagi, Director, Center for Development of Telematics (C-DOT): According to Mr. Tyagi, R & D should be the focal point of government as well as private players to achieve sustainable self-reliance. He suggested that Government of India

should increase its budget on R&D to compete with China and other tech savvy countries. One of his most valuable suggestions was to focus on “Communication

Infrastructure” in the country and its sustainable benefits in defense and commerce. He discussed the importance of faster communication and mentioned that if a message leads by nano second, it may earn billions of Dollars and can save several lives.

Technology Sessions: Day – 1

Session – I – Hindustan Aeronautical

Limited (HAL)

Mr. S P Bhattacharya, General Manager

(MCSRDC-HAL), HAL

Session – II - Directorate of

Indigenization, Ministry of Defence

Col. Ashutosh Verma

Day 2 – 31st July, 2014 - ‘The Road to Indigenization’

Brig. Sanjay Prasad, DDG Indigenisation, Dte Gen of EME

Brig. Prasad drew attention to the fact that process of phase-wise indigenization is on

full swing within the defense forces and invited private players to be a party to it. He informed that defense forces are ready for technology sharing on selective basis and

providing testing facilities to domestic manufacturers.

Mr. P Sudhakar, CMD, ECIL – Industry Address

With wide experience of research and implementation of various projects in the defense sector, Mr. Sudhakar discussed the importance of indigenization and the difficulties involved in it. He informed about various achievements of ECIL in the area of nuclear

installations and defense sector.

Mr. S P Bhattacharya, General Manager (MCSRDC-HAL), HAL :

Mr. Bhattacharya invited domestic players to supply their products to HAL and shared details of his organization’s intensions to prioritize domestic sourcing. He discussed

various research initiatives of HAL along with the production facilities at Korwa, Hyderabad etc. Mr. Bhattacharya also invited private domestic manufacturers to visit their research establishments and see how it may serve their cause of modernization. He

discussed the issues faced by the local players especially related to fast changing technology and long production cycles in India. He also urged the Government to

streamline issues related to business environmental factors whether it is roads, power, cost of finance or other factors.

Mr. Ashok Atluri, CMD, Zen Technologies:

Mr. Atluri highlighted the present situation of Government’s buying and payment processes and suggested ways to make it more encouraging for the domestic players.

He expressed his concerns over excessive reliance on foreign vendors since supply of crucial equipment’s and parts may be disturbed during the times of war and hence

promoting domestic manufactures is not a matter of economic importance but also a strategic one. Mr. Atluri also requested and advised single tender system for domestic players especially when the defence product is designed in India. A new category with

highest priority - Buy Indian with Indigenous Design category - is a must if we intended to be self-reliant. Benchmarking based on international pricing was a must. He insisted

that FDI should be allowed only when key technologies are brought into India and indigenized.

The 2nd Session on ‘Requirements of Homeland Security and Paramilitary Forces’ was

coordinated by Mr. T Vasu, Past President ELCINA and Director Tandon Group :-

He welcomed various renowned personalities in the field of homeland securities from Karnatka, M.P. and CRPF. He discussed various problems and threats with which

paramilitary and police forces are dealing. Mr. Vasu also mentioned the efforts of government for the modernization of homeland security by allotting adequate budget

provisions and sanctions in this financial year thereby offering ample opportunities for the manufacturers also. He was specific in requesting the officials concerned that the efforts by the entrepreneurs should not go waste thru cancellation of the tenders for

whatever reason be. This factor has demotivated many companies in this sector.

Dr. A P Maheshwari, IPS, IG (CRPF), Northern Sector

Dr. Maheshwari emphasized the synergy between the requirements of security forces

and domestic manufacturing industry. He highlighted that more showcasing of domestic products is required and appreciated ELCINA for giving a platform where representatives

of defense/ homeland securities can interact with domestic manufacturers. He mentioned certain specific requirements of security forces and invited industry to respond.

Shri Ashok Dohare, IPS, Addl. Director General Of Police, State Cyber Police, M.P. Mr. Dohare informed about the governments initiative of making a “National Grid for

Police” on which Police forces of all States and Union Territories can share their information and coordinate accordingly. He recommended the concept of “Digital

Documentation” to replace paper work and the delays involved in the same.

Mr. N. S Mahesh, Agilent Technologies India Pvt. Ltd. gave presentation on the the

various instrumentation, Test & Measurement solution available today for Strategic Electronics.

Vote of Thanks The event concluded with a Vote of Thanks by Mr. T Vasu. The industry leaders made a

strong recommendation that ELCINA should take up these issues directly with the Defence establishment and officials who are involved in the purchase process. It was recommended that recommendations from the Summit would be made to the Defence

Ministry at an early date so that highlighted challenges were addressed urgently.

Technology Sessions: Day – 2

Session – I – Electronics Corporation of

India (ECIL)

Session – II – Centre for Materials for

Electronics Technology (C-MET)

SNAPSHOTS OF THE EVENT

Buyer-Seller Meetings

C-DOT Sourcing Team

BEL Sourcing Team

HAL Sourcing Team

Directorate of Indegenization - ARMY

MEDIA COVERAGE

Publication: Business Line

Edition: Bangalore

Date: 30th July, 2014

Publication: Deccan Herald

Edition: Bangalore

Date: 31st July, 2014