• Needforoffsetmonitoringandasuitablesolution 2

• Electronicfuze:opportunitiesandmarketpotential 8

• Tier-1vendorsnowpermittedtoexecuteoffsetobligations 14

• RequestforInformation(RFIs) 16

• RequestforProposal(RFPs) 17

• ListofIndustrialLicenses(ILs)filedfrom01/09/2011TO31/10/2011 19

• ListofIndustrialLicenses(ILs)filedfrom01/11/2011TO31/12/2011 20

• Newprojects/investments/contracts 21

• Country-leveldealsandinitiatives 23

• Industrybuzz 24

• Sources 29

January2012 Eye on defence

DearReaders,

TheIndiandefenceindustryisenteringanexcitingphasewiththeGovernmentofIndiaembarkingonrapidindigenization.ThegrowingimportancecanbegaugedbytheproposedinclusionofdefenceintheTwelfthFiveYearPlan(2012–17).

Amidstthisrapidlychanginglandscape,wearepleasedtopresenttheEyeonDefence,Ernst&Young’squarterlynewsletterondefencefortheperiodOctober-December2011.ThisissueofEye

onDefencecoverskeytopics,whichincludetheurgentneedtomonitoroffsetsandthemarketopportunitiesforrelativelynewtechnologyprod-uctssuchaselectronicfuze.WiththerecentamendmentinDPP-2011allowingthetier-1supplierstodischargeoff-setobligations,welookforwardtohelptheIndianindustryidentifysuchsuppliersonaparticularprogram.Amongtheregularsectionsthereareindustriallicenseapplicants,newprojectsandinvestments,jointventuresandal-liances,country-leveldealsandthelatestbuzzintheindustry.

Wehopeyouenjoyreadingthisissue.Ithasbeenourconstantendeavortomakethispublicationmorerelevanttoyouandwouldappreciateyourcommentsandsuggestionsinthisregard.

K. Ganesh RajPartnerandLeaderAerospaceandDefencePractice

Need for offset monitoring and a suitable solutionBackgroundWithMMRCAbecomingarealityinthenearfuture,aUS$6–7billionofbusinessfortheIndianindustryisexpectedfromthisonesingleprogram.SincetheinclusionofoffsetsinDPP2006,contractsworthINR140billionhavealreadybeensignedbytheIndianindustrywithforeignOEMsunderoffsetsaloneandareundervariousstagesofimplementation.However,therearemanymoreexcitingopportunitiesintermsofbusinesspotentialinoffsets,intheverynearfuture.IndustryinIndia,hastakenthisopportunityseriouslytilldatebothrelatingtocurrentopportunitiesandtheonesalreadyaccorded.Industrybuzzis,“Isittruethatsomanyhundredsofcroresofoffsetsarebeingdischarged,ifsowherearetheyandwhoarethebeneficiaries?”

TheoffsetsopportunitycreatedbytheGovernmentofIndia(GoI)wasintendedtoactasanenablertoallowaconsiderablesegmentoftheIndianindustrytobeapartofthedefenceindustry,therebycreatinganenvironmentforseriousdefencemanufacturing.Therestrictiveregimesprevalentinthepastcreatedthemonopolyofthedefencepublicsectorenterprises,sincethedefencesectorenjoyedspecialtreatment.Openingofthedefencesectortoprivateparticipationin2001,witharestrictionof26%FDI,bothsubjecttolicensingwasindeedavisionarystep(consideringthehighlyrestrictiveregimesprevalentaswellasthereluctancetohaveanopenmindtowardthissector)tounleashthepotentialintheprivateindustries,whichhithertohavedoneexceedinglywellinothersectors.Thisimpliesthattoday,theMinistryofDefence(MoD)willhavetodealwithafigureofapproximately30,000companieswhenanyreferenceismadetothedefencesector.

InclusionofadedicatedAppendixonoffsetsintheDefenceProcurementProcedure(DPP)2005wasreallythefirststeptowardsettingouttorepatriateaportionoftheforeignexchangeoutgo,towardgeneratingdefencebusiness.DetailedoffsetguidelinesincorporatedinDPP2006,speltoutthescopeandmethodsofoffsetdischarge,besidesamodusoperandiforevaluationandacceptance,signingofcontractandabriefmentiononoffsetmonitoring.Thisiswellintendedandmadeonpurpose,sincethatwasindeedthebeginningandthefocuswasrightlyonthescopeandmethodsofdischargeofoffsets.

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AimWeareintothesixthyearsincetheprocedurewasformulatedfordischargeofoffsetsandtimeisripetoseriouslyconsideramonitoringmechanismforoffsetscontractsthattheGoIhasentered.

Theaimofthisarticleistoanalyzethepresentorganizationforoffsetmonitoringandtosuggestasuitablestructure.

NeedTheneedforoffsetmonitoringisparamountforcomplianceandadherencetothestatedcontractthatincludesanoffsetschedule.Anumberofdeductionscanbedrawnfromacarefulanalysisofthemonitoringmechanism,whichcouldpotentiallybehelpfultotheadministeringauthoritiestobeabletorefineorevenredefinethepoliciesforfutureaswellasformulatedetailedguidelinesforevaluationandacceptance.Thus,theoffsetschedule,whichformsanintegralpartofthecontract,canbemorepragmaticandpractical,ensuringeffectiveimplementation.AnalysisofsomeofthemethodsadoptedbyOEMsinactualdischargeofoffsetswillsuggestwhethertheimplementationofoffsetswasinconformationwiththespiritofthepolicyoronlynamesakeadherence.

Thus,thereisaneedforaneffectiveorganizationtomonitoroffsets,bothtoensurecomplianceandforananalysistotriggerforrefinementintheprocedures.Thesheervolumeoftheoffsetsbusinesstriggerstheneedforaneffectivemonitoringorganization.ItisbelievedthatmorethanINR140billionoffsets,havebeensignedandmorethanINR500billionareintheoffinginthenextfiveyears.

Divided responsibilityTheorganizationwehavenowcanbetermedaseitherdividedresponsibilityortobemoreprecisedistributedresponsibility.Currently,theMoDhasconstitutedanOffsetMonitoringCellundertheDDPforthisratherenormoustask.ItwillbeinterestingtoseehowtheMoDorganizeditselftocarryoutthisgigantictaskthatsetsaspirationsintheindustry,bothdomesticandinternational.

Amongthe130oddcountriesthathavebeenpracticingoffsetsevenbeforeIndiaimplementedthem,nonehave,eveninconcept,anorganizationsuchasDOFA(DefenseOffsetFacilitationAgency).TheIndianMoDisthefirstintheworld,tohaveconstitutedaDOFApurelyforfacilitationandalsoputtheentireDPPopenlyonagovernmentwebsite.ItisnoteasytohaveaccesstotheOffsetPoliciesofothercountriesandonehastogettheinformationfromthirdpartysourcesinconferencesandseminars.Thisisbyfar,awonderfulconcept,excellentideabutunfortunatelynotimplementedinthebestpossiblemanner.

WehavetheDG(Acquisition)andtheentireacquisitionwingunderhim,whichisfocusedontheacquisitionofweaponsystemsfortheArmedForcesandtheDOFAundertheDDP(DepartmentofDefenceProduction)forfacilitationofoffsetproposalsandexecution.Itisaverygoodconcept,sincetheDDPisasupportorganization,whichsupportsthepoliciesoftheMoDbyenergizingtheIndianindustry(readDPSUs).AlthoughthecharteroftheDDPwasDPSUs,itisbelievedthatithasbeenexpandedtoincludetheIndianindustryinitsentirety(notyetvisibleinmanyechelonsoftheIndianindustry).

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Suchasoundconceptwhenimplemented,tookshapeongroundtotranslateintothefollowing:

a. DG(Acquisition)processestheRFP,getstheresponses,constitutestheTOEC(TechnicalOffsetEvaluationCommittee),makesevaluations,accordsacceptanceofprojectsandfinallysignsthecontract.

b. DOFA(DefenceOffsetFacilitationAgency)undertheSecretaryDP(DefenseProduction)expectedtofacilitateimplementation,assistpotentialvendors,assistinvetting,assistinmonitoring,etc.ThelistoffunctionsoftheDOFAisalongone,whichishithertotooambitiousandseldomaddressedbytheorganizationduetoitsratherlimitedbandwidth.

c. AnOffsetMonitoringCellwasthereaftercreatedinadditiontotheabovethroughadepartmentalorder,in2008,underSecretaryDP.WhiletheDOFAwasunderJointSecretary(ElectronicSystems),theOffsetMonitoringCellwasfunctioningfromunderDirectorS1/S2,inthesupplieswingoftheDDP,underadifferentJointSecretary.EvenwithintheDDP,theresponsibilitywasfurtherdistributed.

d. ThencametheprovisionofBankingofOffsetCreditsinDPP2008,whichwascreatedundertheAdditionalSecretaryDP,withmembersfromallstakeholders,ofwhichtheChairmanDOFA,providedsecretarialsupport,withhelpfromtheOffsetMonitoringcell.

Ascanbeseenfromabove,theresponsibilityforoffsetswasdividedandtheOffsetMonitoringCell,whichprobablycomprisessomeofficialsofthesupplieswingofDDP,wereonmulti-taskingmode(asisthecasewithotherstoo,includingChairmanDOFA),andforalsomonitoringoffsetsinadditiontotheiroriginaltasks.EvenwithintheDDP,theinherentstrengthinthecreationofDOFAwasnotsustainedandaneworganizationwascreatedformonitoring,althoughitwasalsotoreporttoChairpersonDOFA.Lackofinformationandcoordination,arealsoinherentinsuchorganizationswithdistributedresponsibility,besidesvariousotherdrawbacks.While,duringtheplanningprocess,DDPisinvolvedinvariousServicesCapitalAcquisitionPlans(SCAP)committeesandtheCapitalAcquisitionPlan(CAP)sectionofDirectorateofPlanningandCoordinationhasthebaseknowledge,theDOFAandoffsetmonitoringcellaremostlywithdrawnfromthisentireprocessanddonotpossesstheknowledge,hithertoavailableattheplanningstages.TheDOFAandoffsetmonitoringcellcomeinatalaterstagewithoutthekeyknowledgeofacquisitionsprograms.ThisshouldnothavebeenaproblemiftheyDOFAwereonlyafacilitationagency.However,suchaprocessdoesnotfacilitatetheirintegrationintothewholegameofoffsets.

Ineffect,weseethat,DOFA,whichwasincorporatedundertheDDPasafacilitationagencyalone,alsoincorporatedintoitsresponsibilityandcharterofdutiescompletemonitoringofoffsetsinitsfunctionsduetoitsindustrybias.ThisisalsoincontrasttothecharterofDOFAspeltoutclearly,“toassistinmonitoringofoffsetprovisions(3.1(d)ofAppendixDtoDPP2011);asagainstcompletelyhandlingit.”

Thechallengestherefore,aretofindaneffectiveorganizationforoffsetmonitoring,adequatelystaffedandtechnologicallyequippedtomonitoroffsetcases,whicharesettoincreaseexponentially.

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Basic components of monitoringThebasiccomponentsofamonitoringprocessarebroadlysimilartothoseof“programmanagement”.Eachoffsetcontract,inanacquisitionprogram,isa“project”andtomanageallsuchindividualprojectsweneedprogrammanagement.Thevolumestobeencounteredinthisprogrammanagementaresubstantialandneedaveryeffectiveset-uptomanagethesame.Programmanagementisaboutdoingprojectsright.Andthisisdistinctlydifferentfromprojectmanagement,since,successfulprojectsaredeliveredontimeandareexecutedwithinbudgetandspecification.Successfulprograms,ontheotherhand,deliverlong-termimprovementstoanorganization,andtheMoDshoulddefinitelybefocusingonthat.Inthiscase,theterm“project”iscomplexwithdifferentIndianoffsetpartnersexecutingdifferenteligibleproductsandservices.

Therefore,offsetmonitoringmustessentiallybringtoforethebenefitsthata“programmanagement”functionwilldeliver;elsethisentirefunctionwillfailtodeliverontheconsiderablebenefitsthatcouldpotentiallyaccruetotheIndianindustry.Inlessthanfiveyearsofoffsetsbeingimplemented,contractsworthINR120billionhavebeensignedandimplementationisinvariousstagesofprogress,withlittleinformationonhowandwheretheintendedbenefitshaveactuallyaccrued.Itisnotevenknown,iftheindividualoffsetprojectswereindeedcompletedtothetotalsatisfactionoftheMoD.ThisismainlybecausetheMoDisyettoputinplaceaneffectivemonitoringmechanism,barringtheQuarterlyOffsetMonitoringreportthatissubmittedbytherespectiveOEMs.SomeorganizationinthesupplieswingoftheDDP,hithertounrelatedtoeithertheDOFAortheacquisitionprocess,withadualtaskingcannotbenominatedforsuchacriticalfunctionoftheacquisitionprocess.Inanycase,suchanorganizationcannotdomorethanamerebookkeepingfunction,atthehighestlevelofefficiency.

Therefore,theessentialingredientsinmonitoringofoffsetsprogramsarefollowing:

a. Monitoringeachindividualprojectforwhichoffsetscontractshavebeenconcludedforadherencetotheoffsetschedule.

b. Timeandcostover-runs,ifany,needstobemonitored.

c. Book-keepingofoffsetsdischarged,toensurethatthequarterlyreturnsandhalf-yearlyreturnsarefiledonschedulebytheOEMsandtheyareinconformationtothecontract.

d. AlistofforeignOEMsistobemaintainedforcomplianceandtosimultaneouslygeneratealistofIndianoffsetpartners(IOPs)whohavepartneredwithOEMs.

e. Concurrentlythelististobeupdatedforfreshcontractsawardedandalsotogenerateaproductprofile.

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f. AnalysisonsuchIOPsfordisplayofconcurrentproductprofilingandimprovementsaretobeshown.

g. Analysisontheperformanceofservicesvs.themanufacturingsectorindischargeofoffsetob-ligations,andcomparisonsofefficienciesthereofaretobecarriedout.Thiscouldpresentaverygoodpictureoftheinter-seperformanceamongvarioussectors.

h. Theacquisitionwingwillbeintimatedregardingnon-performanceofOEMswithregardtothecommitmentindischargeofoffsetsdespitereminders,forsuitablefollow-upaction.

i. Analysis,evaluationandapprovalofoffsetsdischargeforaccordofoffsetcredits,tobecarriedoutinnear-realtime.Thisisnotaschallengingasitmayseemandtheremustbeminimaldelaysinthisrespect.Unfortunately,theMoDfacesalotofflakinnon-performanceofthiscriticalfunctionandtheOEMsreportunduedelaysincreditingtheiroffsets,despitetheclaimsofcompletingthesame.Invariably,MoDdoesnotevenconsideritfittorespondtothequeriesoreventhereportssubmittedbytheindustry.SincethereisnoresponsefromtheGoI,theOEM’sversionprevails,forpublicconsumption.

Structure for monitoringMonitoringofoffsetsforimplementationisnotmerelyasimplisticjobofbookkeepingorprovidingreceiptsforthemailreceivedintheofficebythedispatchclerk.Thereneedstobelotmorethoughtinvolvedandthestructuremustflowfromthedesiretotargetachievablegoals.Themonitoringprocessmustprovidefoodforthoughttoshapefuturepolicies,provideremedialmeasuresforongoingprojectsandmanagetheprograminaneffectivemanner.

Monitoringmustincludesystemsengineeringandindustrialengineeringasmajordisciplinesbesidesaccountingandanalysis.ItmaybeagoodideafortheMoDtooutsourcethisfunctiontotheindustryassociations,whomayconstituteanindependentbody,chargedtofunctionundertheMoD’ssupervisionandreportingtotheMoD,whilemaintainingcorporatestandardsinrecruitmentandfunctioning.Thiscouldfollowthemodelofpublicprivatepartnership,onthelinesofAadhar.AdedicatedorganizationmustbecreatedforthisandbeintegratedintothefunctioningofMoD’scapitalacquisitionprocess.Thisisessentialtomakesurethattheorganizationisloadedwithadequateknowledgeandequippedwiththewherewithaltohandleunforeseensituationsinamoreeffectivemanner.Besidesotherbenefits,itwillensurecontinuityatleastatoneend.

Thestaffingforthisorganizationcouldbebothfromprivate,publicandgovernmentbodies,withsuitableincentives.ThestructuremustadheretothebasictenetsoffunctioningoftheMoD,tomaintainconfidentialityofdocumentswhileensuring,amonitoringfunctionwithadequatetransparencytoincludeallfacetsofprogrammanagement.Thestaffmustincludesystemengineering,productionengineering,technologyunderstandingandassessment,databasemanagement,ITprofessionalsandbedrivenbyastrategicpolicy-orientedanalyst.

TheorganizationmustbeabletomaintaincloseliaisonwiththeMoDtoincludeDG(Acquisition),HQIDS,Services,MOD(Finance),DRDOandDDP.SuitableintegrationatplanningstageswithMoDisnecessaryforanunderstandingofthecompleteprocess.Whiletheaimistoderivebenefitsofprogrammanagement,itmustberememberedthatthisisonlyamonitoringorganizationandmustbemandatedtoonlypost-contractmonitoringandforapprovedprogramsinoffsetbanking.

OutsourcingofsuchfunctionscanhelptheMoDtoderivebenefitsofcorporatebestpractices,enablethebestintheindustrytobehiredforthiscrucialjobandallowtheMoDtoconcentrateonformulationandrefinementofpolicies,evaluationofproposals,their

Eye on defence | 6

interpretation,approvals,whilederivingthebenefitsofobtainingadetailedindustrialanalysis,outcomeevaluationsandanindependentoutoftheboxinput.Thisbodycouldalsobechargedwiththeresponsibilityoffacilitation,intermsofcreatingandsustainingacredibleindustrydatabasethroughwhichahighlevelprofessionaladvicecanbeofferedtotheOEMs.ThecredibilityofthisorganizationwillbehighsinceitwillenjoythebackingoftheGoIinhowsoeverasmallmanner.

Asastartingpoint,itissuggestedthattheMoDseriouslyconsideranoutsourcingmodelforthenon-serious,non-policyinvolved,non-sensitiveareasofimplementationtocredibleindustrybodies,throughsuitablepartnerships.Thisway,theindustrywillbeabletoputinplacethebestresourceforthejobandatthesametimebeabletoincorporatethebestpracticesgloballyforaneffectiveandefficientmonitoringsolution.Thiscanbedonethroughane-solutionincorporatingbestITpracticesaswellashandledthroughseriousbook-keeping.Anintegrationofbankingpractices,technologyassessmentwithactivesupportfromDRDO,industrypolicyinterpretationswithactiveliaisonwithMinistryofCommerce,internalsecurityrequirementsandtheirconsequentintegrationthroughliaisonwithMinistryofHomeAffairsandsimilarlyforcivilaviationthroughliaisonwithMinistryofCivilaviationandSTC,licensingnormsthroughinteractionwithSIA/DIPPetc.,willemerge.ThecorporatebodywillhavethebandwidthtobeabletoreachouttothevariousstakeholderswithinandoutsidetheGoI,tofindeffectiveandefficientsolutionstovarioussituations.ThebodycouldbestructuredtoactwithintheframeworkdefinedbytheMoDwithclearlylaiddowncharterforindependentactionandforactionwithconsultations.

Theneedofthehourisaneffectiveimplementationoftheoffsetprovisionsincorporatinganefficientmonitoringsolution.

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Electronic fuze: opportunities and market potentialAfuzeisadevicethatinitiatesanexplosivefunctioninammunition,causingittodetonateorreleaseitscontents,whenitsactivationconditionsaremet.Anartilleryfuzeisusedwithaprojectilefiredbyguns/howitzersandmortars.Thefuzedesignincorporatesthefollowingmechanisms:

a. Safetymechanism.Itprovidessafetywhileinstorageandtransportandinitialstageofflightbykeepingtheexplosivestrain(detonatorandmagazine)non-alignedfromthestriker.

b. Armingmechanism.Itarmsthefuzeatappropriatestageofflightbyremovingthesafeties.

c. Firingmechanism.Itfiresthefuzeonmeetingactivationconditions.

Thesafetyandarmingmechanismsusecombinationof“setback,centrifugalandrotational”forcestoarmthefuzeoncetheprojectileisfiredanditisatasafedistancefromthecrew.

Classification of fuzesFuzesarebroadlyclassifiedbasedonoperatingmechanismasmechanicalandelectronicfuzes,thoughsomechemicalandopticalfuzesarealsoinexistence.

a. Mechanicalfuzes

Mechanicalfuzes,asthenamesuggests,havetheirsafety,armingandfiringmechanismsconsistingmostlyofmechanicalcomponentsandlinkages.MechanicalfuzesarebroadlyclassifiedundercategoriessuchasPercussionFuzes,Directaction,GrazeDelayandTimefuzes,dependingontheirmodeoffunctioning.ForexampleinPercussionandDirectActionfuzes,thecontactsensing(impact)orpresetting(Timemode)isconverteddirectlyintomechanicalmovementofafiringpin,whichinturnisdriveneitherintooragainstthedetonator.Thedetonatorignitesatrainofexplosives,eventuallyfiringthemainchargeoftheprojectile.

IndianArmyhas105mm,130mmand155mmArtyGuns,totalingaround2,000.Thefuzes,whichareinservicearemostlyoldvintagesuchas:

• MechPointImpactFZ117,FZ119,PDM572

• TankFuzeB429andB-429E

• TimePyroDelay-FUZE213andTimeVT-8A

• MortarFuze162,DA-4A,TimeFuzeV-19P

Someofthehardwaremanufacturersofmechanicalfuzes(lessexplosivescontents)are:

• OFB,OrdanceFactoryAmbajhari

• VXLFaridabad

• MicronChandigarh

• SandeepMetalCraftNagpur

AsondatethemainsourceofsupplyofexplosivefilledfuzesareOrdnanceFactories.Thisvalueadditionofaround70%isdonebyordnancefactoriesonly.

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b. Electronicfuze

InandEuropeanandotherwesterncountries,electronicsaregraduallyreplacingmechanicalsub-systemsduetoitsenhancedreliability,besidesmakingitpossibletoincorporatevariousoperatingmodesintoasinglemulti-purposedesign.Electronicfuzeshavemanycharacteristicsofmechanicalfuzes,thoughtheydifferinthemethodoffuzeinitiation.Inparticular,safetyandarmingfunctionsareachievedbycombiningelectronicandmechanicalmechanismswhereasthetargetsensingandfiringfunctionsareachievedbyelectroniccircuits.Maincomponentsofanelectronicfuzeareasshowninthefigurebelow.

Mechanicalfuze ElectronicfuzeNotarget-sensingcapability;hence,cannotfunctionasproximityfuze

Proximityactionpossible

Canbedesignedastimefuzebutnumberoftimeintervalsarelimited

Precisetimesettingwithawidediscreterange

Hastobemanuallyset;morepronetosettingerrors

Canbeprogrammedandsetremotely;minimalsettingerrors

Heavyandbulkyduetomechanicalcomponents;limitedminiaturizationpossible

Lightweightandcompactdesignprovidesextraspaceforexplosive

Comparativelylesssafe Electronicsafetycircuitsarevalueadditionstooverallsafety

Increaseslogisticsandtrainingrequirements ReducedlogisticsandtrainingrequirementsLessExpensive Expensive

Dependinguponthetargetsensingmechanismandelectroniccircuitryinvolved,theelectronicfuzesareclassifiedas:

• RadioProximity(PRX)Fuze

• ElectronicTime(ET)Fuze

• ElectronicPointDetonation(EPD)Fuze

• UniversalFuze(MultiOptionFuze)

Advantagesofelectronicfuzesovermechanicalfuzesaregiveninthefollowingtable.However,whereelectro-magneticenvironmentexists,mechanicalfuzeshaveanedgeoverelectronicfuzes.

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c. MultiOptionFuzeforArtillery(MOFA)

Inearly1980selectronicfuzeswithseveralfunctionsandoptionsstartedappearing.Themostmodernmulti-optionartilleryfuzesintegratesandoffersacomprehensivechoiceoffunctionsservedbydelay,superquick,timeandproximityfuzes.Theycanbeoperatedwithallexistinganddevelopmentalartillerysystems(105mm–203mm)usingbulk-filledprojectiles,suchashigh-explosiveroundsorilluminatingroundsandofferincreasedaccuracy,reliabilityandperformance.Multioptionfuzescanbeinductivelyormanuallyset.Theuserhastheoptiontoselectany/combinationofmodesaccordingtorequirement.

SomeofthemajorOEMsproducingtheMOFAare

• ATK,theUS(M782)

• JunghansMicrotec,Germany(DM74)

• FucshElectronics,SouthAfrica(M9801)

• RESHEFTechnologies,Israel(M175)

• SignalUsfaandTNOPhysics&Electronicslaboratory,theNetherlands(MEDEA)

d. PrecisionGuidedMunitions(PGM)

Thefiremissionstobeaccomplishedbyartilleryrequireconsiderableamountofartillerypieces,ammunitionandtime,andareevenfittedwithelectronicfuzes.Reductionofammunitionexpenditureandtimeofmissionaccomplishmentcanbeobtainedonlyincaseofhigh-accuracyfiring.ThishasledtodevelopmentofPGMstocatertooperationalneedsandgivetheseweaponsaprecision-strikecapability.Theprojectilesareguidedonthetargetusinglaser/IR/GPSguidancetherebyleadingtoreducedCircularErrorProbability(CEP).OtherbattlefieldadvantagesaccruingtoaforcecommanderemployingPGMsarethefollowing:

• First-roundeffect

• Effectiveengagementofsmaller/fleetingtargets

• Reducedlogistics

• Minimizecollateraldamage(counter-insurgencyoperations)

MajorOEMsproducingPGKarethefollowing:

• ATKUSA

• SaabBoforsdynamics

• LockheedMartinwithDiehl

• KBPInstrumentDesignbureau

• BAESystemswithRaytheonMissileSystems

• IsraelMilitaryIndustries

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Electronic fuzes: market sizeCurrently,theIndianArmyhasartillerygunsofvariouscalibersandofdifferentvintageinitsinventory.TheIndian105mmfieldgunanditslightervariantforthemountainsarethebasicfieldguns.TheRussian130mmgunsarethebackboneofmediumartillery,withtheSwedishBofors155mmHowitzers,complimentingthem.Wealsohavethe120mmmortarsthatneedanupgrade.Thebroadgun/mortarequipmentinventoryisasfollows:

Equipment Holding

105mmIFG/LFG 1000+

130mm 500+

155mm 400+

81mmMortar 4000+

120mmMortar 480+

Currently,bulkofthefuzesusedbytheIndiandefenceservicesismechanicalfuzes.Toassessthemarketsizewewillonlyconsidertherequirementoffuzesfortheartillerygunsatthisstage(155mm,130mmand105mm).Accordingtoexistingscales,theannualrequirementofallvariantsofmechanicalfuzesfortrainingandwastagesisestimatedtobeapproximately0.5million.ConsideringanaveragepriceofINR5,000perfuzethistranslatesintoannualrequirementofINR250million.Inaddition,thereisalsoarequirementoffuzestocoverthevoid,whichexistsbetweencurrentholdingsandauthorizedscalesoffuzesforoperationalrequirements.Takingaconservativeestimateofdeficiencyat15%,anadditionalmarketformechanicalfuzesstandsat0.75millionamountingtoINR375million.

Thefocusisnowshiftingtowardelectronicfuzes,inviewofenhancedperformanceandlogisticsre-quirements.Overaperiodoftimetheelectronicfuzeswillreplacethemechanicalfuzebeingusednow.Asondatethesearebeingusedonlyfor155mmgunsandthattooislimitedtolessthan10%oftheauthorizedscale.Theusageisnowbeingextendedto130mmand105mmguns.Thereisanexistingdeficiencyofelectronicfuzesworthmorethan1million.ElectronictimeandproximityfuzescostmorethanPointDetonationfuzes.TakinganaveragepriceofINR15,000perelectronicfuze,theexistingmarketiscappedataroundINR1,500million.Therequirementisboundtoincreaseinthefuturewhentheconversionformortarsalsotakesplace.Duetolimitedsourceofsupplycurrently,thetimelinetomeettheimmediaterequirementof1millionfuzesisanticipatedtobefivetosixyears.Atthisstageitwillbedifficulttopredictthetimelineforswitchovertotheelectronicmode.Theswitchoverwillalsoentailreductionininventory.However,itisexpectedthattherateofacquisitionwillgraduallyincreasebyapproximately15%–20%eachyear.

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Theindicativemarketsizeforelectronicfuzemarket(artillerygunsonly)isasshowninchartbelow.

210

300

490

320

450

730

2015 2017 2019

Market growth projections: electronic fuze for artillery

Quantity (in '000) Cost (in INR million)

Multi-functionalfuzesforpointdetonation,proximityandelectronictimefuzeswillhaveapplicationsinAirDefence,NavalandAirplatformsaswell.IndianInfantryusershavealsostartedrealizingthecosteffectivenessofusingelectronicfuzeswithmortarammunition.Takingintoconsiderationexpansionofusageofelectronicfuzeintheseareas(10%initiallyandtobeincrementedonanyearlybasis)theannualmarketsizeforelectronicfuzes(mortar,AirDefence,NavalandAirplatforms)asofdatestandsatapproximatelyINR2billion.

Competition analysisElectronicsCorporationofIndiaLtd.(ECIL),apublicsectorundertaking(PSU)underatie-upwithFuchsElectronicsofSouthAfricaiscurrentlymeetingapproximately80%ofthetotalrequirementofelectronicfuzesoftheArmy.ThePSUenjoyedvirtualmonopolyoveralongperiod,butfailedtoindigenizethecontents.Itisunfortunatethatdespitemorethan15yearsoftieup,criticalsubsystemssuchassafetyandarmingdevice(S&A),thebatteryandanelectronictimerkitareimportedfromSouthAfricaandassembledinIndia.

Arequestforproposal(RFP)for1millionfuzes,issuedbyMoDinearly2009,iscurrentlyheldupduetoobjectionsfromtheenvironmentandfromgovernmentvigilanceorganizations.TheRFPhascombinedthreedifferentkindsoffuzefor105mm,130mmand155mmguns.Stipulationssuchasvendoreithersuppliesallthreetypes,orsuppliesnone,shutsdoorsonmostcompanies.ItwasallegedthattheRFPhasbeendraftedinawaythatiteliminatescompetition.Companies,whichrespondedtotheRFP,indifferentcategoriesaftercollaborationsfordevelopmentandmanufactureofelectronicfuzewerethefollowing:

Electronic fuze:105 mm

• BEL,withIsraelfirmReshefTechnologiesLtd.

• Micron-Jughans

• ECIL-Fucsh

• HBLNoida-SouthKorean

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Electronic fuze:-130 mm

• BEL-ReschefIsrael

• ECIL-Fucsh

Electronic fuze:-155 mm

• BEL-Reschef

• ECIL-Fucsh

• Micron-Jughans

Thesecompanieshaveofferedtheproductfortrials.However,thetrialshavebeenheldbackbytheMoD.Theabovecaseislikelytobeshelvedasafreshproposalforprocurementof1millionfuzeshasbeensubmittedtotheMoD.AccordinglyafreshRFIwasissuedinJune2011,asa“buyglobal”case.TheMODisbelievedtohavereceivedresponsefromthefollowingvendors:

• ECIL-Fucsh

• BharatForge

• IndianTelephoneIndustries

• Micron-Junghans

• HBL

• BEL-ReshefTechnologies

• ATKUS

• Rheinmetall

TheIndianArmedForcesareonamajormodernizationdrive.Ascomparedtodevelopedcountries,theIndianArmedForcespossessaconsiderablylowernumberofelectronicfuzes/MOFA,PGMdevices.ChangesinDefencepolicywillallowprivateorpubliclylistedIndiancompaniesinthissector.Thus,theMODdesirestoenhancetheindigenouscapabilityinthissegment.

Theabsenceofindigenouscapabilityintheelectronicfuzestechnologyanditsvariants,offersmarketopportunitiestoestablishaJVtofillthevoid.

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Tier-1 vendors now permitted to execute offset obligationsInDecember2011,theMoDreleasedanamendmenttoDPP2011.Itaddedaparagraph(1.7)toappendixD,Chapter1oftheDPP,permittingTier-1sub-vendorstodischargeoffsetobligationstotheextentoftheirworkshare(byvalue)onbehalfofthemain/primevendor.However,theoverallresponsibilityandliabilityfordischargeofoffsetobligationswillcontinuetoremainwiththemain/primevendor.Thisamendmentisapplicablewithimmediateeffect.

TheMMRCARFPwasreleasedunderDPP2006andthus,DassaultandEurofighter(NETMA)willnothavebeenabletoleveragethisamendment.However,aspecialdispensationisintheoffingthatwillenablethetwocontendersoftheMMRCAprogramtotakeadvantageofthisamendmentandofferanenhancedoffsetdischargeprogram.

ForthenascentIndianDefenseindustrytogrowthroughtherouteofoffsets,itisveryimportanttorealizethefactthataprimevendorgenerallydoesnothavemorethan20%workshareonboardacompleteplatformandconsequentlytheywilldischargeonly20%ofthetotaloffsetobligation.Thus,thereisanincreasedpotentialtoreceiveoffsetworkpackagesfromTier-1sub-vendorsoftheprogramsunderconsiderationvis-a-vistheprimevendor.TheIndianindustryprofessionalsshouldthereforeforgerelationshipswithbothmediumandlargeTier-1sub-vendorsinordertogainnotonlyoffset-relatedordersbutalsotogetaccesstocuttingedgetechnologyandbestpractices.

Asafirstattempt,Ernst&YoungwilltrytohighlighttheTier-1subvendorsofcertainlargeticketcapitalacquisitionprogramsthathavealreadybeensignedorareexpectedtobesignedinthenearfuture.

Inthefigureonthefollowingpage,thedesignoftheC-130JHerculestransportaircraft,manufacturedbyLockheedMartin(Primevendor)isdepicted.Indiahasalreadypurchasedsixsuchaircraftandtalksareinadvancedstagestoprocuresixmore.WewouldliketoextendoursinceregratitudetoLockheedMartinIndiaforsharingthisinformationwithus.

Eye on defence | 14

Eye on defence | 15

Request for Information (RFIs)

October 2011–January 2012

Date of issue RFI details Response date Issued by Service

14Oct2011 SubsonicAmmunition7.62x51mmFor7.62mmGALILSniperRifle

15Nov2011 WE-8/9) Army

19Oct2011 PowerPackWithMinimum380HorsePowerEngine

30Nov2011 DirectorateGeneralofMechanisedForces Army

27Oct2011 PassiveNightSightforAssaultRifle 15Nov2011 AdditionalDirectorateGeneralofWeaponsandEquipment(WE-8/9)

Army

5Dec2011 ElectronicBirdDeterrentSystemforArmyAviation

20Jan2011 AdditionalDirectorateGeneral Army

9Dec2011 ThermalImagingSightfor7.62mmLightMachineGun

31July2012 AdditionalDirectorateGeneralofWeaponsandEquipment(WE-8/9)

Army

20Dec2011 DrivingSimulatorsforT-90/T-72tanks 15Jan2012 DirectorateGeneralofMechanisedForces Army

21Dec2011 WeaponSystemforShootingAroundtheCorner

31Jan2012 DirectorGeneralofRashtriyaRifles(RR-2) Army

26Dec2011 PrimeMoverfor70TonTrailertobeusedforTransportationofTanks

25Jan2012 DirectorateGeneralOfSupplyAndTransport(ST-11) Army

6Jan2012 RFIandInteractionwithManufacturersofOperatingTheatreShelterInflatable

11Jan2012 MGO/EM/GS&CRoomNo206

Army

6Jan2012 GeneralPurposeMachineGunforPARA(SF)

20Jan2012 DirectorGeneralofInfantry Army

6Jan2012 Spares,RepairandOverhaulofMissileTestStation

23Jan2012 DirectorateGeneralOfEME(Electronics)MasterGeneralofOrdnanceBranch

Army

21Oct2011 LaserbasedSpeedGunswithAccessories 22Nov2011 DTEOFPM(AIR)/ AirForce

3Nov2011 3DCDBandAirSurveillanceRadar 1Dec2011 DirectorateOfStaffRequirements Navy

3Nov2011 IntegratedCombatSystem 15Nov2011 DirectorateOfSplOPS&Diving Navy

12Oct2011 AirCushionVessel(ACV) 25Oct2011 IHQMoD(Navy)/DSR Navy

4Nov2011 AirFieldSecuritySolution(CASS) 4Dec2011 AirHQ(VayuBhawan) AirForce

25Nov2011 AirborneHelmets 12Dec2011 DirectorGeneralofInfantry AirForce

5Dec2011 GeneralPurposeMachineGun(GPMG) 31Dec2011 DirectorateGeneralofWeaponsandEquipment(WE-8/9)

AirForce

23Dec2011 SearchandRescueEquipment 23Jan2012 AirHQ(VayuBhawan) AirForce

Eye on defence | 16

Request for Proposal (RFPs)

October 2011–January 2012

Date of issue RFP details/equipment Response date Issued by Remarks

Oct2011 8/34MBPSRadioRelay — — Army

8Dec2011 TenInertWarheadsforP-SeriesMissiles

26Dec2011 TheCommandingOf-ficerINSTunir,NavalSta-tionKaranja

Navy

20Dec2011 COTSS-BandSurveillanceRadarSystemAlongWithAccessories

10Jan2012 TheNavalOfficer-in-Charge,Karnataka Navy

11Jan2012 Portableairsupply&communi-cationsystem

30Jan2012 CommanderOperationsOfficer

Navy

4Oct2011 IRISbasedAccessControlSystem 31Oct2011 WgCdrEPSyam,SeniorLogisticsOfficer AirForce

13Oct2011 SupplyInstallationTestingInte-grationandCommissioning(SITIC)ofAFLS(NewGeneration)withassociatedfittings-fixtures

1Dec2011 DirectorateofPro-curement AirForce

25Oct2011 GearwheelAssemblyforFDR-MIG29 14Nov2011 AFStationOjhar,Na-sik,Maharastra AirForce

28Oct2011 FlexiVideoScope 25Nov2011 LogisticsMgmtBranch AirForce

7Nov2011 DifferentialGPSSystemforASTE 29Nov2011 (BaranSen)WingCommanderOCTestEnggSqn

AirForce

5Dec2011 OverhaulofViper22-8AeroEn-gines 19Jan2012 JS(G/A),RoomNo.108(E) AirForce

7Dec2011 Repair/OverhaulofaggregatesofMi26Helicopters

16Jan2012 JointSecretary(G/AIR),MoD AirForce

9Dec2011 SpikeBarrierandBoomBarrier 30Dec2011 UnitsLogisticsSectionTrainingCommand(U),AF AirForce

10Dec2011 UnifiedThreatManagement(UTM) 6Jan2012 CentralAirCommandHQCACIAF

AirForce

29Dec2011 TwoBasicPoweredHangGliderswithAccessories

30Jan2012 StationCommander AirForce

30Dec2011 JaguarFlyingClothing 22Feb2012 ACAS(PROC) AirForce

23Nov2011 PassiveNightVisionMonocular 10Dec2011 DirectorGeneral,CRPF CentralRe-servePoliceForce

23Nov2011 PassiveNightVisionBinocular 10Dec2011 DirectorGeneral,CRPF CentralRe-servePoliceForce

26Nov2011 ClothHarnessB.P.Jackets 25Jan2012 DIGP,GC,CRPF CentralRe-servePoliceForce

25Dec2011 LifeJackets 27Jan2012 DIGP,GC,CRPF CentralRe-servePoliceForce

23Dec2011 MechanizedBoatandMediumCraft 21Feb2012 DirectorateGeneral,BorderSecurityForce BorderSe-curityForce

Eye on defence | 17

Date of issue RFP details/equipment Response date Issued by Remarks

23Oct2011 Revamping/ReconditioningOfExistingOne(1)No.20TonLF-VDPlant

16Dec2011 AdditionalGeneralManagerMetal&SteelFactory,Ishapore

—

1Nov2011 FiringMountRequiredFor30MMCANNON 29Nov2011 TheGeneralManagerOrdnanceFactory,Tiruchirapalli

—

21Nov2011 XBandDopplerRadarSystem 22Dec2011 DirectorARDE —

22Nov2011 SupplyandIntegrationofCom-municationandNetworkTestBed

14Dec2011 DirectorCAIR —

30Nov2011 ArmourPlate4mm 29Dec2011 SrGeneralManager,VehicleFactory,Ja-balpur —

30Nov2011 ArmourPlate6mm 29Dec2011 SrGeneralManager,VehicleFactory,Ja-balpur —

9Dec2011 ExpressionofInterestofBCLplant 2Mar2012 TheGeneralManager,Corditefactory,Aruvankadu

—

16Dec2011 10TonHollowESRPlant 4Apr2012 TheGeneralManager,Metal&SteelFactory,Ishapore

—

Eye on defence | 18

List of Industrial Licenses (ILs) filed from 01/09/2011 TO 31/10/2011Application no. and date Name of the applicant Item of manufacture

6701/09/2011

CromptonGreavesLtd. Design,development,manufacturingassemblyupgrade,systemintegrationofelectricalandelectronicsystemssubsystemsandassembliesfordefenceapplication

6806/09/2011

SFOTechnologiesPvt.Ltd. Electronicsitemsforthesupplytothedefencesectorundertheoffsetprogram

6907/09/2011

AviotechPvt.Ltd. Defenceandcivilaircraftinteriors,aeroairbornestructurescompositetestinggroundhandlingequipmentgroundsupportequipment

7013/09/2011

KLIMAviationTechnicsPvt.Ltd. Minorcomponentsavionic,radarsetc.andrepairoftheirparts

7123/09/2011

PipavavDefence&OffshoreEngineeringCompanyLtd.

ManufacturingofpartsandaccessoriesN.E.C.foraircraftorspacecraft

7211/10/2011

KaynesTechnologyIndiaPvt.Ltd. Electronicprintedcardboardassemblies/electron-ICsubassemblies/militarywireharnessesfordefenceandaerospaceapplication

7317/10/2011

DataPatterns(India)Pvt.Ltd. Design,developmentandmanufacturingofradar,sonarandelectronicwarfaresystems

Eye on defence | 19

List of Industrial Licenses (ILs) filed from 01/11/2011 TO 31/12/2011Application no. and date Name of the applicant Item of manufacture

7401/11/2011

MahindraAerostructuresPvt.Ltd. Aerospacecomponents,aerostructuresandparts,accessories,assemblies/subassembliesthereof

7503/11/2011

Ray-HansTechnologies(P)Ltd. Design,engineering,softwaredevelopmentandmanufacturingofelectronicandcommunicationproducts,HLAS,FibreopticPROD.powersupplies,cableandwireharnessandsheetmetalfabricationspeciallydesignedforuseindefence,aerospace,healthcareetc.

7609/11/2011

OKPlayIndiaLtd. Manufacturingofpackingproductofplasticsfordefencepurpose

7716/11/2011

SattvaeTECHIndiaPvt.Ltd. Design,development,fabricate,manufacture,upgrades,recondition,assemble/systemintegrationofelectroniccomponentsincluding;software,firmware,multi-layerPCBs,highvoltagepowersupplies,digitalsignalprocessmodules,weapononboardetc.

7805/12/2011

MainiMaterialsMovementPvt.Ltd. Allterraincombatvehicles

7908/12/2011

AANEngineeringIndustryLtd. Defencevehicleparts

8019/12/2011

MAKControlsandSystemsPvt.Ltd. Design,development,manufacture,assemblyandrepair&maintenanceofgroundsupportequipment/vehicles,cargoloaders,groundairconditioningsystems,startingrectifiers,frequencyconverters,airstartersforaircraftetc.

8120/12/2011

VedaDefenseSystemPvt.Ltd. Parts,componentsandaccessoriesforaerospaceanddefensesector

8220/12/2011

Jeet&JeetGlassandChemicals(P)Ltd. Mineresistant/ambushresistant(armored)vehicles

8426/12/2011

SundramFastenersLtd. Kingpin/sleeve/bushes/adapter/thrustboring/components/bolts/nuts/screwsforaerospace

8730/12/2011

VinalTechPvt.Ltd. Cableharness/electronicsystemsintegration

Eye on defence | 20

New projects/investments/contracts

Name of entity Project details Value

MinistryofDefence,GovernmentofIndia

• TheIndianDefenceMinistryacceleratedtheselectionprocesstoacquiretwotypesofmicro-andmini-unmannedairsystems(UAS)forusebyitsarmy’snortherncommandalongthenation’sborderwithPakistan.

• Twentysystemsofeachtypeareexpectedtobepurchasedunderanurgentoperationalrequirementdeal.

NA

GovernmentofIndia • TheDefenseSecurityCooperationAgencyhasnotifiedtheUSCongressofapossibleforeignmilitarysaletotheGov-ernmentofIndiaforsixLockheedMartinC-130Jsandas-sociatedequipment,parts,trainingandlogisticalsupport.

INR60.6billion

BrahMosAerospaceThi-ruvananthapuramLtd.(BATL)

• BrahMosAerospaceThiruvananthapuramLtd.(BATL),awhollyownedsubsidiaryofBrahMosAerospacecateringtoproductrequirementsofthecountry’sdefence,aerospaceandnuclearsectors,issettolandordersforproductionoftheBrahMossupersoniccruisemissile’sliquidramjetenginefromtheDefenceResearchDevelopmentOrganization(DRDO).

• BATLwillbeinvolvedinthemakingoftheentireBrahMosmissile,includingthenosecap,thewholeofF3(themissilesectioncomprisingairframeandfueltank)andtheramjetengine.Ineffect,itwillbethecompletemissileexceptthecompositepartandwarhead.

NA

BharatDynamicsLimited(BDL)

• BDLbaggedanorderforthesupplyofAkashWeaponsystemtotheIndianArmy.• TheUnionMinisterofStateforDefence,MMPallamRaju,laidthefoundationstoneforBDl’sAkash

projectbuildinginMedakdistrict(AndhraPradesh).

INR140billion

BharatDynamicsLimited(BDL)

• BDLissettingupanewunitatNandgaonPetinAmaravatidistrictofMaharashtratomanufactureshort-rangemissilesforthearmedforces.

• BDLplanstoproduceveryshort-rangeairdefencemissilesatthenewunit.

INR2.5billion

HindustanAeronauticsLtd.(HAL)

• TheStrategicElectronicsManufacturingFactoryofthepublicsectorHindustanAeronauticsLtd.,setupattheKINFRAIndustrialParkinKasargodisreadyforinauguration.

• ThemanufacturingfactorywillinitiallyworkastheextensionoftheAvionicsDivisionofHAL,Hyderabad.Itisengagedinmanufactureofawidevarietyofelectronicequipmentcoveringcommunication,radar,navigation,computersandelectronicwarfare.

• Thenewfacilitymaybeexpandedtoincludenewprojectsarisingoutofnewaircraftprogramsandconvertedintoafull-fledgeddivisioninfuture.

INR2billion

Boeing • Boeingbaggedadealforthesupplyof22heavy-dutyattackhelicoptersandgunshipstotheIAF.• Besidesthe22Apaches,thepackageincludes812AGM-114L-3HellfireLongbowmissiles,542AGM-

114R-3Hellfire-IImissiles,245StingerBlockI-92Hmissiles,12AN/APG-78fire-controlradarsetc.• BoeingwaspreferredoverRussianMilCorporation’sMi-28N“NightHunter”asApacheprovidedincreased

capabilitiesanddisplayedsuperiorall-weatherapplications.

INR70.67billion

MBDA,France • Indiaclearedtheacquisitionof490FrenchadvancedmissilesystemstoequiptheMirage-2000fighterjets.

INR62billion

TataPower,Stra-tegicElectronicsDivision

• TataPowerSED,thestrategicelectronicsdivisionofTataPowerLtd.,wasawardedthecontracttomodernizetheIndianAirForce’sairbaseinPunjab,whichincludesnewrunways,newlightingsystemandAirTrafficControl(ATC)systems.

• TataPower,afterbeingawardedthecontract,signedanagreementwithRaytheon,underwhichthelatterwillsupplyairtrafficcontrolsystems.

INR9.39billion

BAESystems • BAESystemssecuredacontractforsparesandgroundsupportequipmenttoaidtheIndianAirForce(IAF)Hawktrainingaircraftoperations.

INR4.64billion

TataSteel • TataSteelannouncedinvestmentinitsStocksbridgesteelworksinSouthYorkshire,UK,toboostaerospacesteelproductionby30%.

• Ithasalreadymadeinvestmentsintwovacuumarcremeltingfurnacesandspecialisttestingequipmenttoproducemoresteelfortheaerospaceindustry.

• Engineersarecurrentlycarryingoutfinalinstallationworkonthenewequipmenttoenabletrialstobeginbytheendof2011.Bothfurnacesareexpectedtobeinfullproductioninearly2012.

INR510.9million

*ThevaluesofthedealshavebeenconvertedtoIndianRupeesusingOandacurrencyconversiontool

1US$=INR50.48;1Euro=INR65.26;1£=INR78.6(Valuesason22January2012)

Eye on defence | 21

Joint ventures and alliances

Name of entity Nature of transaction Value

Mahindra&MahindraandGriffonCorpora-tion(Telephonicsunit)

• ►TelephonicsCorporation,asubsidiaryofGriffonCorporation,andMahindra&MahindraLtd.announcedthesigningofamemorandumofunderstanding(MoU)toformajointventure(JV).Mahindra&MahindraGroupwillholda74%stakeintheventure,whiletheremaining26%willbeheldbyGriffonCorporation.

• ►ThejointventurewillprovidetheIndianMinistryofDefence(MOD)andtheIndiancivilsectorwithradarandsurveillancesystems,identificationfriendorfoe(IFF)devicesandcommunicationsystems.Inaddition,theJVintendstoprovidesystemsforairtrafficmanagementservices,homelandsecurityandotheremergingsurveillancerequirements.

• ►TheIndianfacilitywillmanufactureandserviceairborneradarsystemsthatarealreadybeingsuppliedtoHALbyTelephonicsandsupportairbornemaritimesurveillancesystemsfortheIndianNavyandCoastGuard.Asofnowitissearchingforlandtosetupamanufacturingplantandhasshortlistedthreelocations.

NA

AshokLeylandDe-fenceSystemsandKrauss-MaffeiWeg-mannGmbH&CoKG

• ►AshokLeylandDefenceServicesrecentlysignedaMemo-randumofUnderstanding(MoU)withMunich-based,Krauss-MaffeiWegmannGmbH&CoKG,inGermany,tomanufacturearmoredwheeledvehicles,recoveryvehicles,artilleryandcombatsystemsandbridgelayingsystems,amongotherthings.

• ►TheGermancompanywillprovidethetechnologyandthetechnicalassistancerequiredforthedevelopmentofthesedefencesystemsbyAshokLeyland.

NA

UnitedTechnologiesandAgniceFirePro-tection

• ►UnitedTechnologiesCorp(UTC),adiversifiedcompanyen-gagedintheproductionofHamiltonSundstrandaerospacesystems,aircraftengines,SikorskyhelicoptersandUTCFireandSecuritysystemsacquiredChennai-basedAgniceFireProtection.

INR3.5billion

UniversalDetectionTechnologyandHo-neywell

• ►UniversalDetectionTechnology,aUS-basedcompanythatdevelopsearly-warningmonitoringtechnologiesprotectingagainstbiological,chemical,andradiologicalthreats,hassignedacontractwithHoneywellIndia.

• ►Theagreementhasbeensignedtodeveloparadiationde-tector,whichwilldisplayradiationdatacollected,viaBlu-etooth,toasmartphone.

NA

PipavavDefenceandOffshoreEngineeringCo.LimitedandMazagonDockLimited(MDL)

• ►Pipavavsigneda50:50jointventureagreementwithMDLinSeptembertobuildsubmarinesandwarshipsfortheIndianNavy.Thejointventure(JV)companywasnamed“MazagonDockPipavavLtd.”However,theJVwasputonholdfollowingacomplaintfromLarsen&ToubroandABGShipyard.

• ►IndianshipbuilderPipavavDefenceandOffshoreEngineeringCo.Ltd.isintalkswiththeMinistryofDefencetoope-rationalizetheMoU,whichwillallowittoformajointventurewithMDL.

NA

BharatElectronicsLi-mitedandRaytheon

• ►Thestate-ownedelectronicequipmentmakerBharatElec-tronicsLtd.(BEL)planstoformaJVfirmwithUS-baseddefencecontractorRaytheonCompanyforthedevelopmentofdefenceproductssuchasPatriotmissiles.

NA

MahindraSatyamandSaabAB

• ►MahindraSatyamopenedadedicatedtechnologycenter,SaabIndiaTechnologyCentre(SITC)forresearchanddevelopmentinpartnershipwiththeSwedishfirm,SAAB.Thecenterwillcommenceoperationswith100engineers.

• ►TheprimaryareasofdevelopmentofSITCwillincludesoftwareengineering,electronicengineeringandmechanicalengineering.Itwilllaterfocusondevelopmentintheareasofsignalprocessingandsystemsengineering.

NA

Eye on defence | 22

Country-level deals and initiatives

Country Nature of transaction Additional details

Russia IndiaandRussiareviewedtheirdefencetiesduringthevisitofIndia’sDefenceMinistertoMoscowfrom3to5October2011.Bothgov-ernmentsexpressedreadinesstotakenecessarymeasurestofurtherexpandthecooperationonamutuallybeneficialbasis.

Thetwosidesexpressedsatisfactionovertheirinteractioninthedevelopmentofdefencetechnologies,modernizationofmilitaryequipmentandjointmanufactureofmilitary-purposeproducts.However,theIndianDefenceMinisterex-pressedconcernattheprogressmadeinthedesignanddevelopmentoftheMulti-RoleTransportAircraft.

UK(JointNavalExer-cise)

IndiaandtheUKconductedtheirannualjointweeklongnavalexercise“Konkan”offthecoastofGoafrom8October2011keepingthefocusonsubmarineoperationsincludingnuclearunderwatervessels.IndiawillfielditsShishumarClassINSShankushHDWsubmarineandtheBritishwillhaveoneoftheirTrafalgarClassnuclearsubmarines.

TheexercisewillhelptheIndianNavytohoneitsskillsinoperatingnuclearsubma-rines.IndiaisexpectedtogettheNerpaK152nuclearsubmarineonleasefromRussiaandisalsoplanningtoinducttheindigenousINSArihantsubmarineinthenearfuture.

France(JointMili-taryTrain-ing)

AnIndo-FrenchJointMilitaryTrainingExerciseSHAKTI–2011washeldatChaubattia,Uttarakhandfrom9to21October2011undertheaegisofGarudDivision.

Theexercisewasaimedattrainingtroopsincounter-terroristoperationsandenhancingdefencecooperationandmilitaryrelationsbetweenthetwonations.

Japan(Defencetalks)

ThetalksbetweentheDefenceministersofIndiaandJapanwereheldinTokyoon2No-vember2011.

Maritimesecurity,anti-piracymeasures,freedomofnavigationandmaintainingthesecurityofsealanesofcommunicationtofacilitateunhinderedtradearesomeoftheissuesdiscussedinthebilateraltalks.

Oman(AirExercise) Afour-dayjointexercisebetweentheIndianAirForce(IAF)andtheRoyalAirForceofOman(RAFO)washeldattheAirForceStationJamnagarfrom17to21October2011.Theexercisenamed“EasternBridge-2011”wasthesecondintheserieswiththefirstoneheldinOctober2009atOman.

TheRAFOcontingentcomprisedsixJaguaraircraftand115personnel.TheIAF’sJaguarsandMiG29sbasedatJamnagar,participatedintheexercise.TheOmanicontingentwantedtounderstandthechallengesofflyingoverthevaryinglandscapeoftheIndianterrain,whichisunliketheOmaniflatbeddesert.

Eye on defence | 23

Industry buzz

Defence to be included in the five-year planThedefenceindustryhasfoundplaceinthePlanningCommission’sfive-yearplanforthefirsttimeever.ThereportsoftheWorkingGrouponDefenceEquipmentandAerospacewillbeincorporatedintheframeworkoftheindustryoutlookduringtheTwelfthFiveYearPlanfortheperiod2012–17.Themoveisexpectedtofacilitatetheindigenizationofthedefenceequipment.

(Source:“DefencePartofFiveYearPlan’sIndustryOutlookforFirstTimeEver,”Press Information Bureau website,http://pib.nic.in/newsite/AdvSearch.aspx,accessed15January2012.)

GoI freezes all defense shipyard joint venturesTheIndianMinistryofDefencehasputonholdtheformationofalljointventuresindefenceshipyardsuntiltheGoIformulatessuitableguidelines.ThisdecisionwasputonholdafterajointventurebetweenMazagonDockLtd.andPipavavDefense&OffshoreEngineeringCompanywaschallengedbyothercommercialshipyards.TheIndianDefenceministryisnowforminganewpolicyforpublic-privatebusinesspartnershipsforincreasedtransparency.

(Source:JayMenon,“IndianFreezesAllDefenseShipyardJointVentures,”Aerospace Daily & Defense Report,21December2011,viaFactiva,©2011McGraw-Hill,Inc.)

GoI advises not to import encryption equipment from ChinaMinistryofDefence,citingnationalsecurity,advisedthestate-ownedelectronicsequipmentmanufacturerandsuppliertotheArmedForces,BharatElectronicsLimited(BEL)tonotsourcecriticalencryptioncomponentsfromChina.ThewarningwasbasedontheapprehensionthatChinamaymodifytheequipmentanduseittomonitorIndia’sdefenceactivities.

(Source:“GovtadvisesnottoimportencryptionequipmentfromChina,”ElectronicsBazaar,1November2011,viaFactiva,©2011EFYEnterprisesPvt.Ltd.)

Indian Army to procure armored recovery and repair vehiclesIndiawillsoonprocuremorethan600armoredrecoveryandrepairvehiclesforT-72battletanksatacostofINR10billion.AproposalinthisregardwasclearedbytheCabinetCommitteeonSecurity.TheorderisarepeatorderandthevehicleswillbebuiltunderatransferoftechnologyfromthePolishdefencefirm.Thesevehiclesareusedtorepairdamagedorbrokendowntanksandinfantrycombatvehiclesbothduringpeacetimeandcombatoperations.

(Source:“Indiaclears$275mnorderforT-72tankrecoveryvehicles,”13October2011,Indo-AsianNewsService,viaFactiva.)

Eye on defence | 24

Field evaluation trials of anti-tank missile soonThefieldevaluationtrials(FET)ofMBDAMissileSystem’sPars3LRfire-and-forgetanti-tankguidedmissile(ATGM),shortlistedalongRafaelAdvancedDefenceSystem’sSpike-ERfortheIndianArmy’sweaponizedAdvancedLightHelicopter(ALH)”Rudra,“areslatedtogetunderwaysoon.

(Source:S.Anandan,“Fieldevaluationtrialsofanti-tankmissilesoon,”The Hindu,24October2011,viaFactiva,©2011Kasturi&SonsLtd.)

Main Battle Tank Arjun debuts in military exerciseTheindigenouslybuiltMainBattletank(MBT)ArjunmadeitsdebutinSudarshanShakti,oneofthelargestmilitaryexercise,heldinrecenttimes.Arjunhasafavorableguntoweightratioandhasgotmorehorsepowerandgunpower.Itcameoutwithsuperiorperformanceonallparameters.Arjuntook37yearsofresearchanddevelopmentandwasbuiltatacostofINR3.5billion.

(Source:RituSharma,“MainBattleTankArjunDebutsinWarGames,”New Indian Express,10December2011,viaFactiva,©2011TheNewIndianExpressGroup.)

Indian army may revive Bofors howitzer plansTheIndianArmyseekstoreinstatelong-dormantABBoforsFH-77B155mm/39-caltowedHowitzerprogramthatwassuspendedin1980soverallegationsofcorruption.

(Source:RahulBedi,“IndianArmymayreviveboforshowitzerplans,”Jane’s Defence Weekly,26October2011,viaFactiva,©2011TheNewYorkTimesCompany)

Indian Navy plans to acquire Russian submarine Nerpa RussiawillhandovertheAkula-IIclass,nuclear-poweredsubmarine”K-152Nerpa”toIndiaona10-yearleaseafterthesubmarinerecentlyfinishedseatrials.ThesubmarinewillberechristenedINSChakraandisexpectedtoreachIndiabytheendofJanuary2012.

(Source:“IndiatakesdeliveryofRussianN-submarine,”The Times of India,31December2011,viaFactiva,©2011TheTimesofIndiaGroup.)

Indian Navy intends to upgrade Sea King and Kamov ChopperTheIndianNavywantstoupgradeitspresentfleetofSeaKingandKamovhelicoptersandpurchasenewhelicopterstoreplacethem.SeaKingisanti-submarinewarfarehelicopterwhileKamovisusedforairborneearlywarnings.

(Source:“IndianNavyHuntsforSea-KingandKamovChopperUpgradesandSuccessors,”IndiaDefence,1October2011,viaFactiva.)

Yantar Shipyard tests INS Teg built for IndiaFrigateINSTeg(standsfor“saber”)builtbyYantarShipyardinKaliningradcontinuedseatrialsafteritsdamagedcruisingturbinewasreplaced.Thetrialprogramwassuspendedafteranaccidenttothefrigate’sportsidecruisingturbine.INSTegisthefirstProject11356frigateinthesecond3-shipseriesorderedbytheIndianNavy.MooringtrialsstartedinMarch2011,andinAugusttheshipwastransferredtoBaltiyskforthefirstphaseofshipyard’sseatrials.

(Source:“YantarShipyardTestsINSTegBuiltforIndia,”RIAOreanda-News,16November2011,viaFactiva,©2011RIAOREANDA.)

GE Shipping arm cancels Mazagon Dock offshore vessel order on delayGreatEasternShippingCompany(GEShipping)cancelledanorderforamulti-purposesupportvessel(MSV),placedwithstate-ownedMazagonDockLtd.,duetonearlyatwo-yeardelayindelivery.Earlier,anarmofGEShipping,GreatshipGlobalOffshoreServices(GGOS)hadsignedcontractstobuildtwonewmultipurposesupportvessels(Builder’sYardNo.26775and26784)withMazagonDock,MumbaiinSeptember2007.

(Source:“NW18:GEShippingarmcancelsMazagonDockoffshorevesselorderondelay,”NewsWire18–EquityWire,9November2011,viaFactiva,©2011NewsWire18Ltd.)

Naval exercise organized at Paradip to spread awarenessTheIndianNavyorganizedanavalexerciseintheseaoffParadiptospreadawarenessaboutthecapabilitiesofitswarships.Thisnavalexercisehelpedthepublictoknowmoreabouttheoperationofwarships.TheNavy’smostmodernmulti-purposestealthfrigate,INSShivalik,twoguidedmissiledestroyersINSRanvirandINSRanjit,twoguidedmissilecorvettes,INSKarmukandINSKuthar,andonelandingshiptank,INSAiravat,displayedtheiroperationalskills.Thewarshipsperformedoperationalmaneuversanddemonstratedtheirfiringpower.

(Source:“NavalexerciseleavesParadipawestruck,”The Times of India,9November2011,viaFactiva,©2011TheTimesofIndiaGroup.)

Eye on defence | 25

India falters in getting its new submarine plan off the blockThelong-delayed“Project-75India”toacquiresixnew-generationstealthsubmarineshasbeendelayedandtheactualcontractisnowlikelytobeinkedonlyby2014–15.TheP-75Iboatsareexpectedtobereceivedonlyafter2020sinceittakessixtosevenyearstobuildanadvancedsubmarine.Thishappenedbecauseoftheinabilitytodecideontheshipyards,whichwillbeexecutingtheproject.OriginallythreeofthesubmarinesweretobeconstructedatMazagonDocks(MDL)inMumbai,andanothercameupattheHindustanShipyardinVisakhapatnam.Theothertwoweretobeeitherimportedfromtheforeigncollaboratororbuiltbyadomesticprivateshipyard.

(Source:RajatPanditTNN,“Indiafaltersingettingitsnewsubplanofftheblock,”The Times of India-PuneEdition,2November2011,viaFactiva,©2011Bennett,Coleman&Co.,Ltd.)

Indian Navy to double orders for P-8I maritime reconnaissance aircraftTheIndianNavywillinduct24BoeingP-8Ilong-rangemaritimereconnaissanceaircraft,whichwillboostitssurveillanceandattackcapabilitiesoverIndia’sterritorialwaters.TheIndianNavyplacedordersfor12additionalaircraftoverandabovethe12alreadyonorderbringingthetotalto24.TheP8-Iiscapableofbroad-areasurveillanceandanti-ship,submarineandlandattackoperationsandisequippedwithHarpoonmissiles,depthchargesandtorpedoes.TheaircraftwillbeequippedwithsomeIndiancomponentsbecauseoftheindustrialoffsetrequirements.BharatElectronicsLtd.isalreadysupplyingtheDataLinkIIsystemtofacilitateP-8I’scommunicationswiththeIndianspace,naval,andland-basedassets.

(Source:“IndianNavytodoubleordersforP-8Imaritimereconnaissanceaircraft,”Domain-B,6December2011,viaFactiva,©2011TheInformationCompanyPvt.Ltd.)

Tejas LSP-7 all set for launchTejas,ahomegrownlightcombataircraftdevelopedbyHindustanAeronauticsLimited(HAL),completeditscrucialgroundrun(EGR)andisnowbeingputonlow-speedtaxitrials(LSTT).TejasLSP-7isthetwelfthaircraftfromtheprojectflight-lineandtheseventhfromthelimitedseriesproduction(LSP-7).TheaircraftisexpectedtodotheLSTTat150kmphandtheHSTTat250kmph.

(Source:AnanthaKrishnanM,“TejasLSP-7allsetforitslaunch,”New Indian Express,21October2011,viaFactiva,©2011TheNewIndianExpressGroup)

21 more Hawks for IAF’s Surya Kiran aerobatics display teamTheIAFinitiatedtheprocurementof21additionalHawkaircraftbuiltbyHindustanAeronauticsLimited(HAL).HawkadvancedjettrainerswillallowtheSuryaKiranAerobaticsTeam(SKAT)toflyfaster,turntighterandmanoeuvremorespectacularly,thanwaspossiblewiththevintageKiranMarkIItraineraircraftthattheyhaveflownsince1996.

(Source:AjaiShukla,“21moreHawksforIAF’sSuryaKiranaerobaticsdisplayteam,”Business Standard,25October2011,viaFactiva,©2011BusinessStandardLtd.)

Third generation Nag test-firing in Pokhran ThethirdgenerationNagmissile’sfinaltestwasdoneinJaisalmer’sPokhranfieldfiring.The“fire-and-forget”missilehasbeendevelopedbytheDefenceResearchandDevelopmentOrganisation(DRDO).ThereweresometechnicalchangesandcorrectionsinthelaunchpadaccordingtoArmyrequirements.TheNag,oncefired,isguidedtohitevenafast-movingtank.

(Source:VimalBhatia,“ThirdgenerationNagtest-firinginPokhransoon,”The Times of India,7October2011,viaFactiva,©2011TheTimesofIndiaGroup)

India to order 59 Mi-17s Indiaissettoorder59Mi-17sunderthefollow-onclauseinthefirstcontract.TheywillbeweaponizedforcombatoperationsandwillallowIAFtodeployadditionalchoppersforlogisticalsupportinanti-Naxaloperations.80Mi-17VswereorderedundertheUS$1.34-billioncontractsignedbyRosobronexport,JSCinDecember2008.ThefirstbatchofthecontracthasbeendeliveredtoIndiainNovember2011.ThehelicoptersaremanufacturedbyKazanHelicopters,asubsidiaryoftheRussianHelicoptersholdingcompany.TheR.E.T.Kronshtadt,amemberofTranzasGroup,basedinSt.Petersburg,alsoplanstobuildtwohelicoptersimulatorswithintheframeworkofthiscontract.

(Source:“Indiasettoorder59moreRussiancopters,”FrontierStar,14November2011,viaFactiva,©2011Asianet-Pakistan.)

IAF sends Mirages to France for retrofittingTheIndianairforce(IAF)dispatchedtwoofitsMirage2000fighteraircrafttoFranceaspartofthedealbetweentheGoIandThalesandDassaultAviation.Thedealistoupgradearound50supersonicfighters.Accordingtotheagreement,theFrenchfirmswillmodernizethenavigationsystems,missioncomputers,electronicwarfaresystemsandradars,bringingtheaircraftuptothestandardsofmoreadvancedMirage-2000-5s.ThemodernizationwillcostanestimatedUS$2.4billionundertheagreementsignedbetweenIndia,ThalesandDassaultAviation.TheFrenchcompanieswillinvest30%ofthedeal’svaluebackintotheIndiandefencesectoraspartoftheoffsetpolicy.

(Source:JayMenon,“IndiaSendsMiragesToFranceForRetrofit,”AerospaceDaily&DefenseReport,7December2011,viaFactiva,©2011McGraw-Hill,Inc.)

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214 Russian-Indian fifth-generation fighter jets to be inducted into the Indian Air Force by 2017214fifth-generationfighterjets,beingdevelopedjointlywithRussia,areexpectedtoentertheIndianAirForceby2017.Outofthese166areexpectedtobesingle-seaterand48two-seateraircraft.

(Source:“214Russian-Indianfifth-generationfighterjetstoenterserviceinIndiaby2017,”Interfax:Russia&CISMilitaryNewswire,4October2011,viaFactiva,©2011InterfaxInformationServices,B.V)

MHA helps OCTOPUS commandos acquire gunsTheMinistryofHomeAffairs(MHA)sanctionedINR30milliontopurchase206sub-machinegunsMP5A3sandtheiraccessoriestoarmtheOrganisationforCounterTerroristOperations(OCTOPUS),theanti-terrorcommandoforceofAndhraPradesh.TheGermanweaponsmakerHeckler&Kochearlierrefusedtosellthestatepolicetheirsub-machinegunscitinghumanrightsviolations.MHAdecidedtoimporttheweaponsasthesameweaponsareusedbyTheUSNavySealsandtheBritishSpecialAirService.

(Source:“MHAhelpsstategetguns,”Deccan Chronicle,3November2011,viaFactiva,©2011DeccanChronicleHoldingsLtd.)

Security forces get 19,000 night vision gadgetsTheGoIsanctionedmorethan19,000night-visiondevicesforthesecurityforcessuchasNSG,CRPFandITBP.Thehigh-enddevices,procuredfrompublicsectormanufacturerBharatElectronicsLimited(BEL),includeweapon-mountednight-visiontelescopes,nightsightsforrocketlaunchers,monocularsandbinocularsandhelmet-

mountednightvisiondevices,whichcanbewornbytroops.Thenight-visiondevicesareessentialforthesecurityforcestooperateatnightandprovideaclearvisionoftheenemyandotherstatictargets.

(Source:“Forcesget19,000nightvisiongadgets,”The Statesman,7October2011,viaFactiva,2011TheStatesmanLtd.)

Agni-4 test-fired successfullyThelong-rangemissileAgni-4wassuccessfullytest-firedfromWheelers’Island,offthecoastofOrissanearBalasore.Agni-4,earlierknownasAgniIIprime,hasthecapabilitytodeliverstrategicwarheadsintherangeof2,500–3,500km.Itis20meterslongandweighsnearly17tons.Itislightinweightandhastwostagesofsolidpropulsionandapayloadwithare-entryheatshield.Ithasacompositerocketmotor,whichhasbeenusedforthefirsttime.Themissilesystemisequippedwithmodernandcompactavionicswithredundancytoprovidehighlevelreliability.

(Source:RajaramSatapathy,“Agni-4firedsuccessfully,”The Times of India,17November2011,viaFactiva,©2011TheTimesofIndiaGroup)

SAAB–HAL JV to commence airborne electronic warfare systems productionThejointventureofSaabABandHindustanAeronauticsLimited(HAL)willstartproductionofairborneelectronicwarfaresystemsbyMarch2012inBengaluru.ThejointventurewasannouncedinFebruary2011inwhichSaabwillholdaminoritystakeof26%.ElectronicwarfaresystemssuppliedbySAABarebeingusedinDhruv-HAL’sadvancedlighthelicopter.ItalsoplanstoexporttheairborneelectronicwarfaresystemsfromitsBengalurufacility.

(Source:“Saab-HALJVtocommenceairborneelectronicwarfaresystemsproductioninsixmonths,”IndiaPublicSectorNews,25October2011,viaFactiva,©2011Contify.com)

BDL procures DRDO technology for anti-tank missileBharatDynamicsLtd.(BDL)procuredanindigenouslydevelopedSeekertechnologybytheDRDOforthethird-generationNAGanti-tankguidedmissile.ImagingInfraRed(IIR)Seekersisasophisticatedsystemusedformissileguidanceandgivesthemissilethe“fireandforget”capability.BDListhefirstinthecountrytoownthetechnology.Thetechnologywillbeusedfortheforthcomingdevelopmentaltrialsofhelicopter-launchedNAG(HELlNA),whichistheothervariantoftheNAGmissilebeingdevelopedbyDRDO.

(Source:“BDLprocuresDRDOtechnologyforanti-tankmissile,”ThePressTrustofIndiaLimited,2No-vember2011,viaFactiva,©2011AsiaPulsePtyLimited.)

Rolls-Royce and HAL to set up aero engines unitInternationalAerospaceManufacturingPrivateLtd.(IAMPL),ajointventurebetweenHindustanAeronauticsLtd.(HAL)andRolls-Royce,commencedconstructionofanewmanufacturingunitatBengaluru.TheplantwillmanufacturecomponentsfortheTrentcivilaeroengines,aswellasmarineandenergygasturbines.IAMPLhasaround200employeesinIndia,andanother650engineersworkonasub-contractbasisintheengineeringcenteratBengaluru.Theplantisexpectedtocommenceproductionfrom2012.

(Source:“Rolls-Royce,HALtosetupaeroenginesunit,”ProjectMonitor,9December2011,viaFactiva,©2011EconomicResearchIndiaPvt.Ltd.)

HAL shortlists Goldman, 3 others for IPOHindustanAeronauticsLtd.(HAL)hasshortlistedfourbanksincludingGoldmanSachsandBarclaysforaninitialpublicoffering(IPO)thatislikelytoraiseUS$200million.Accordingtoreports,SBICapitaland

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EnamSecuritieshavealsobeenshortlistedbythecompany.Thesharesaleisexpectedtobelaunchedinthenextfiscalyearthatbeginson1April.

(Source:“HALshortlistsGoldman,3othersforIPO:report,”IndiainfolineNewsService,15November2011,viaFactiva,©2011IndiainfolineLtd.)

BEL bags Raksha Mantri’s Award in five categories for FY10India’sstate-ownedelectronicequipmentmanufacturerBharatElectronicsLtd.(BEL)wontheprestigiousRakshaMantri’sAwardsfortheyear2009–10infivecategories.BEL’sPanchkulaunitreceivedtheawardfortheBestPerformingDivisionofDefencePublicSectorUndertakings.TheawardwasreceivedbyBELChairmanandManagingDirectorAnilKumaralongwithGeneralManagerofBEL’sPanchkulaunitSureshNfromDefenceMinisterAKAntony.

(Source:“BELbagsRakshaMantri’sAwardin5categoriesforFY2010,”IndiaEnergyNews,19November2011,©2011.Contify.com)

Avantel to deliver first MSS system to BoeingHyderabad-basedAvantelLimiteddevelopedtheindigenousMobileSatelliteSystem(MSS)afterthreeyearsofintensiveR&Dindesign,engineeringandintegrationoftechnologiesrelatedtoradiofrequencydesign,satellitecommunication(satcom),signalprocessingandnetwork.IthassecuredordersworthUS$2.2billionforMSSfromBoeing,UStoinstallthesysteminP-81maritimeReconnaissanceAircraftfortheIndianNavy.AvantelLimitedisengagedinthemanufacture,sale,andexportofRF/microwave,telecom,andsatcomproductsinIndia.

(Source:“AvanteltodeliverfirstMSSsystemtoBoeing,”UNI(UnitedNewsofIndia),24December2011,viaFactiva.)

Embraer completes first flight of EMB 145 EmbraercompleteditsmaidenflightofEMB145AirborneEarlyWarningandControl(AEW&C)aircraftdevelopedfortheGoI.Theplatformisequippedwithanin-flightrefuelingsystem,satcomcapabilityandincreasedelectricalandcoolingcapabilities,alongwithaerodynamicandstructuralchanges.Theseimprovementswillallowtheinstallationofadvancedelectronicsystems

currentlybeingdevelopedbyIndia’sDRDOwithCABS(CentreforAirborneSystems)asthenodalagency.Thedeliveryofthefirstaircraftisexpectedinthefirsthalfof2012.

(Source:“EmbraercompletesFirstFlightofEMB145AEW&CforIndia,”The Weekly of Business Aviation,12December2011,viaFactiva,©2011McGraw-Hill,Inc.)

Research facilities boost prospect for the Futuristic Main Battle Tank (FMBT)ThreenewresearchfacilitieswereopenedatCombatVehiclesResearchandDevelopmentEstablishment(CVR&DE)inAvadionSunday(Chennai),whichhasboostedtheprospectofthefuturisticmainbattletank(FMBT).CVR&DEisalaboratoryundertheDRDO.TwodedicatedtestfacilitieshavebeenopenedtotesthydrogassuspensionunitsusedinFMBTandfuturisticsemi-activesuspensionunits.Anotherfacility,theCombatVetronicsTechnologyCenter,willfocusontechnologiesthatincludein-vehiclenetworkingandembeddedsystemcontrol.

(Source:“Newresearchcentrestofocusonfuturisticbattletank,”The Times of India-ChennaiEdition,12December2011,viaFactiva,©2011Bennett,Coleman&Co.,Ltd.)

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Sources

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3. “TataSteelinvestingUS$9.2mntoboostaerospacesteelinU.K.,”AsiaPulse,31October2011,viaFactiva,©2011AsiaPulsePtyLimited.

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13. SamidhaSharma&BobyKurianTNN,“UnitedTechmayacquireChennaifiresolutionsco,”The Times of India - Pune Edition,24October2011,viaFactiva,©2011Bennett,Coleman&Co.,Ltd.

14. “MahindraSatyamsetsupresearchunitforSwedishfirmSAAB,”BusinessLine(The Hindu),22October2011,viaFactiva,©2011TheHinduBusinessLine.

15. “GovtclearsPipavavasMDL’sjointventurepartner,”IndiaPublicSectorNews,11October2011,viaFactiva,©2011.Contify.com.

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18. “HAL’selectronicsfactoryreadytogoonstream,”Business Line (The Hindu),13October2011,viaFactiva,©2011TheHinduBusinessLine.

19. VivekRaghuvanshi,“FundingFlapStallsIndo-RussianMTA,”DefenseNews,viaFactiva,©2011,ArmyTimesPublishing.

20. “IndiaeyesRaytheon’sairbornesurveillanceradars,”Domain-B,12November2011,viaFactiva,©2011.TheInformationCompanyPvt.Ltd.

21. NarayanLakshman,“U.S.interestedinIndianhelicoptertender,”The Hindu,11November2011,viaFactiva,2011Kasturi&SonsLtd.

22. “USAhopefulofbaggingIndianattackhelicoptersorder,”The Statesman,11November2011,viaFactiva,©2011TheStatesmanLtd.

23. “India-UKjointnavalexercisefrom8Oct,”BBCMonitoringSouthAsia,8October2011,viaFactiva,©2011TheBritishBroadcastingCorporation.

24. “Indo-FrenchJointMilitaryTraining:ExShakti–11,”Press Information Bureau website,http://pib.nic.in/newsite/AdvSearch.aspx,accessed15January2012.

25. “IndoOmanAirExercise–EasternBridge–IIConcludesatJamnagar,”Press Information Bureau website,http://pib.nic.in/newsite/AdvSearch.aspx,accessed15January2012.

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28. InayatJehangir,“Indiaeyeingairbornesurveillanceandreconnaissanceradars,”ThePressTrustofIndiaLimited,11November2011,viaFactiva,©2011AsiaPulsePtyLimited.

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Ahmedabad2ndfloor,ShivalikIshaanNear.C.NVidhyalayaAmbawadi,Ahmedabad–380015Tel: +917966083800Fax: +917966083900

Bengaluru12th&13thfloor“UBCity”CanberraBlockNo.24,VittalMallyaRoadBengaluru–560001Tel: +918040275000 +918067275000Fax: +918022106000(12thfloor)Fax:+918022240695(13thfloor)

Chandigarh1stFloorSCO:166-167Sector9-C,MadhyaMargChandigarh–160009Tel: +911726717800Fax: +911726717888

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5thFloorBlockB-2,NirlonKnowledgeParkOff.WesternExpressHighwayGoregaon(E)Mumbai–400063Tel: +912261920000Fax: +912261923000

NCRGolfViewCorporateTower–BNearDLFGolfCourse,Sector42Gurgaon–122002Tel: +911244644000Fax: +911244644050

6thfloor,HTHouse18-20KasturbaGandhiMargNewDelhi–110001Tel: +911143633000Fax: +911143633200

4th&5thFloor,PlotNo2B,Tower2,Sector126,Noida–201304GautamBudhNagar,U.P.IndiaTel: +911206717000Fax: +911206717171

PuneC—401,4thfloorPanchshilTechParkYerwada(NearDonBoscoSchool)Pune–411006Tel: +912066036000Fax: +912066015900

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