Indicia Knowledge Brief A Daily Assessment on Indian Defence and Internal/Homeland Security May 03, 2015. Primary aims of Indicia Daily Brief are two-fold. First, it distills infinite information into a capsule form, thus saving precious time of its clients. Second, it tries to link micro-events to larger strategic canvas through its analyses, thus providing support knowledge for better understanding and decision-making. Indicia Analysis of the Day The defence ministry is planning major changes in the way it procures military equipment, seeking to link the offsets policy with Prime Minister Narendra Modi's 'Make in India' campaign after foreign suppliers repeatedly failed to meet the stringent conditions and ended up blocking investments of several hundred million dollars in the sector. A cumbersome process for military procurements could well be the reason for India’s missing out on "the mother of all deals" for purchasing 126 combat jets. This is among the primary reasons why the defence ministry is seeking a revision in its procurement policy. I. National Defence and Security: Defence Ministry planning major changes in defence procurement; seeks to link offsets policy with 'Make in India': The defence ministry is planning major changes in the way it procures military equipment,seeking to link the offsets policy with Prime Minister Narendra Modi's 'Make in India' campaign after foreign suppliers repeatedly failed to meet the stringent conditions and ended up blocking investments of several hundred million dollars in the sector. The ministry is finalising a "directed offsets" policy that will require foreign companies to set up manufacturing bases in India, officials said. They added that the move stems from an acknowledgement that the stringent offsets policy that requires foreign firms to invest at least 30 per cent of the contract value in India has not spurred domestic manufacturing to the extent desired while the overseas suppliers have accumulated over $35 million in fines over the past few years. Foreign firms were able to invest just $676 million in India between 2008 and 2014 against the mandated $1.3 billion. Outlining the new offsets policy, Defence Secretary RK Mathur said that the government is considering a directed offsets policy,as per which the foreign vendor will be mandated to manufacture a part of the system being procured under the Make in India programme.This will be initially applicable to large contracts that involve the procurement of major platforms. "For example, if I am buying Sukhoi, I would link it up with'Make in India' procedure and say that the Sukhoi manufacturing company must invest in India, with Indian companies, to manufacture the spare parts or components of Sukhoi itself, "Mathur explained to a Parliament panel. The 36-Rafale fighters deal with France will be the first major programme that is likely to follow the new policy. The ministry is likely to insist that at least 30 per cent of the value of the contract be used to set up manufacturing units in India. As reported, one option is to order a larger number of Rafale fighters with an Indian joint venture partner. Under the original offsets policy,the winning vendor had the liberty to choose its partners to discharge the offset obligations and very often ended up investing in unrelated projects - such as a wind tunnel facility as an offset for the purchase of a military transport aircraft. By taking the power of directing the incoming investments to a particular area, the ministry will have the authority to get the particular technology that it requires. Experts believe that the existing policy has not enabled Indian companies to unleash their potential in the global market. "A limited number of Indian companies have indeed become apart of the global supply chain of OEMs(original equipment manufacturers) and can now boast of world-class infrastructure and credentials. However the impact of the offset policy has not been to the desired depth and width," said Ankur Gupta of E&YIndia. Source: http://timesofindia.indiatimes.com/india/Defence-Ministry-planning-major-changes-in-defenceprocurement-seeks-to-link-offsets-policy-with-Make-in-India/articleshow/47128754.cms * Saved! The Indian Military is here!: India and its impressive airlift, sealift and trained human resource are contributing their mite to a large number of disaster relief missions. In quick succession we have had the Uttarakhand cloudburst, the Srinagar floods, the war in Yemen, and now the earthquake in Nepal. And the way mother nature is wreaking havoc, and humankind is contributing to that with violence and environmental degradation, India’s formidable Humanitarian Assistance and Disaster Relief (HADR) capability is sure to be frequently tested to its limits. It is only right that we respond to the unofficial mantle that we have acquired of being the regional provider of such assistance and relief with alacrity every time we are called upon to do so. ‘War is a continuation of policy by other means’, was 19th century Prussian General Carl Von Clausewitz’s oft-cited dictum. But in the 21st century, great nations are seeking influence not just through arms but increasingly through the exercise of ‘soft power’. And increasingly, even the hardest element of traditional ‘hard power’ – the military – is also a big instrument in the pursuit of ‘soft power’. India’s HADR record is already pretty impressive. Think back to the 2004 tsunami relief and the 2001 Bhuj earthquake response -- aid was delivered to millions in both instances. With Operation Raahat following the Uttarakhand cloudburst in 2013 and Megh Raahat following the Srinagar floods last year, and especially with the Yemen evacuation (Raahat, again) and now Nepal, India has come of age as the region’s Big Brother, one with a big heart and capability! The first responder to a crisis has always been air power, due to its inherent attributes of speed, reach, mobility and flexibility. Thus, while the Il-78 aerial flight refueling tankers were modified to cargo carriers to augment airlift capacity during the tsunami, in the Uttarakhand relief operation, Mi-26 helicopters flew in fuel trucks and C-130 transport planes emptied their fuel into these trucks so that they could tank up rescue choppers for their missions – such is the flexibility of air power. Since then, the Indian capability has increased further – unlike during the tsunami, for the Nepal relief operations, the IAF has spare C-17 and Il-76 transport aircraft that it can deploy if the need arises. Similarly, the helicopter fleet has been strengthened with the addition of 159 Mi-17 medium-lift helicopters. These new transport planes and helicopters have modern avionics that help them to operate in adverse weather conditions which are generally prevalent in disaster areas. When the American Chinook helicopters arrive, they will fill the heavy-lift capability gap. The civil airline fleet is a major element of the air power of a nation, and here too the Indian commercial fleet has robust capability. Just Air India, whose aircraft were deployed to airlift Indians out of Iraq in the first Gulf War in 1990, brought 176,000 Indians back home in a 45-day period! Similarly, the national carrier earned kudos in the Yemen airlift and Nepal. Imagine if the full force of private airlines in India is put to a task! The Navy has tremendous sea-lift capability, and India has a winner in the National Disaster Response Force (NDRF) which has specialist personnel and rescue equipment and has earned plaudits from all quarters for its work in the Fukushima tragedy and in Nepal. And, of course, the ever dependable Indian Army has never let the country down when called upon to help neighbours in India’s quest to assist them. However, the National Disaster Management Authority, which is the nodal agency to coordinate HADR activity, was conspicuous by its absence during the Uttarakhand relief operations for which it was roundly berated. In the event, the situation was retrieved by the armed forces, which provided immediate relief and rescue. In Srinagar, too, while the armed forces were everywhere, the civil administration was nowhere to be seen. A similar absence of civil authority has been noticed in Nepal. Why does the civil authority seem to come up short every time? The answer lies in the fact that the civil administration is itself affected by the tragedy and its personnel abdicate their larger duty of tending to the masses in favour of attending to their personal losses. This is a problem that needs to be addressed. Perhaps the solution can be found in the way the Indian Air Force handled the 2001 Bhuj earthquake and the 2004 tsunami. In Bhuj, the IAF airbase itself had 95 dead and around 100 injured, while in the tsunami, Car Nicobar island air force station had 116 dead and scores wounded. In both events, the survivors were severely traumatized but held on to their posts to direct initial efforts. Both airbases were the nodal points at which aid poured in and was to be delivered. The IAF’s solution was to bring in fresh personnel; in Car Nicobar, the full complement was replaced to generate momentum in the rescue and rebuilding effort.... Source: http://www.asianage.com/editorial/saved-indian-military-here-207 * Indo-French Naval exercises off Goa coast concludes: Goa Chief Minister Laxmikant Parsekar witnessed four-hour long naval manoeuvring between Indian Navy and its French counterpart off Goa coast on May 02- the concluding day of 'Varuna' exercises. Parsekar along with the officials of French Embassy and Navies saw the aircrafts landing and parading sitting on French Naval aircraft carrier Charles de Gaulle, which is leading the group for the western country. The exercises had began on April 23 off Goa coast with around 16 hours of practise between both the navies to understand each others' strength, and also sync the understanding during the emergency times. "This was very good week for Indo-French relations. We have a range of cooperation which are moving forward. This time French and Indian Navy are working together," said French Ambassador Francois Richier, talking to PTI after participating in the VIP day on board the aircraft carrier. "Today we went together with the Chief Minister of Goa and range of navy officers to participate in the VIP day. We were watching the activity from the aircraft carrier. We could see Indian and French navies parading together," he said. Parsekar told PTI that it was unique experience to see the might of two navies and how they are working in precision. The French side is headed by aircraft carrier Carrier Charles de Gaulle, two destroyers namely Chevalier Paul and Jean de Vienne, replenishment tanker Meuse and a maritime patrol aircraft Atlantique 2. The aircraft carrier Charles de Gaulle is carrying its complement of fighter aircraft Rafale M, strike aircraft Super Etendard, E2C Hawkeye AWACS and helicopters Dauphin and Alouette 3. While Indian side has aircraft carrier INS Viraat, destroyer Mumbai, stealth frigate Tarkash, guided missile frigate Gomati, replenishment tanker Deepak, submarine Shankul and a few Fast Attack Craft.... Source: http://zeenews.india.com/news/india/indo-french-naval-exercises-off-goa-coastconcludes_1588902.html * Parrikar Cancels Tawang Visit Due to Bad Weather: Defence Minister Manohar Parrikar on May 02 cancelled his visit to Tawang on the India-China border in Arunachal Pradesh due to inclement weather, defence sources said. Parrikar was scheduled to fly to Tawang from Rangya, in Assam, to grace the second day of the three-day Tawang festival and meet the troops deployed there but had to cancel the visit. “Twice he attempted to fly but cancelled the visit due to the unfavourable climate,” defence spokesman Sombit Ghosh told Express. Later, he flew to Arunachal capital Itanagar and met the state Governor and Chief Minister. Earlier, he reviewed the security situation in Western Assam. Senior Army officials briefed him of the ongoing operations against the NDFB(Songbijit) faction, which was responsible for the killings of Adivasis last year. The minister expressed his satisfaction on the progress of the operations and also appreciated the efforts made by the formation to dynamically review and alter its tactics to counter the rapidly changing situation in the state, a defence sources said. Army chief Gen Dalbir Singh, General Officer Commanding of Eastern Command Lt Gen M M S Rai, General Officer Commanding of 4 Corps Lt Gen Sarath Chand and General Officer Commanding of Red Horns Division Maj Gen C P Mohanty attended the meeting. Source: http://www.newindianexpress.com/nation/Parrikar-Cancels-Tawang-Visit-Due-to-BadWeather/2015/05/03/article2794760.ece * India's military procurement process blamed for Rafale bungle: A cumbersome process for military procurements has been blamed by a parliamentary panel for India missing out on "the mother of all deals" for purchasing 126 combat jets, instead of which only 36 will be bought from the same French manufacturer. "It is observed that the deal for 126 aircraft with the France-based Rafale company could not be finalized. The committee feels this is attributable to the long gestation period of the Defence Procurement Procedure (DPP)," Parliament's Standing Committee on Defence said in its report tabled earlier this week. The committee, headed by Maj. Gen. B.C. Khanduri (retd) of the BJP, hoped that the changes in the DPP that are due this year will remove such shortcomings. The deal for purchasing 36 Rafale combat jets in fly-away condition was inked during Prime Minister Narendra Modi's visit to France last month. The Rafale had, in 2012, received the Indian Air Force (IAF) nod for 126 jets in a $12 billion deal in the face of stiff competition from five other manufacturers. Sixteen were to be bought off the shelf and the remaining manufactured in India by Hindustan Aeronautics Limited (HAL) under a transfer of technology agreement. However, differences over the price and the "ownership" of the HAL-manufactured planes had prevented the closure of the deal. The IAF had expressed an urgent need for the 126 medium multi-role combat jets to primarily replace its agening fleet of Soviet-era MiG-21 planes and to plug the gap caused by the delay in the development of the indigenous Tejas light combat aircraft (LCA). The IAF currently has 33 combat squadrons against a sanctioned strength of 39.5, which is sought to be raised to 42. (The committee, in a separate report, had said that by 2022, the IAF will have just 25 squadrons, losing "even the slight edge over a rival neighbouring nation" - read Pakistan.) "The committee hopes that the new Defence Procurement Procedure shall plug the loopholes in the existing policy and make it more productive without time and cost overrun," the panel said. According to defence ministry officials, changes are due in the DPP, which was last revised in 2013. Defence Minister Manohar Parrikar has also stated that "major changes" are expected in the DPP. Ministry officials said the changes will focus on four broad areas, one of them being the way to address complaints, as even anonymous and unsigned complaints often delay the procurement procedure. "We keep on getting a large number of complaints signed, unsigned, pseudonymous, anonymous and so on. Frequently, the practice has been that the minute you get a complaint, you freeze and stop moving on that procurement," a ministry official said, adding this will be addressed in the revised document. The other issues include redefining the procedure for blacklisting a company and making it more nuanced and changes in the offsets' policy. "We are working on the offsets' policy, which we have found is not effective, and in most cases we are being forced to make dispensations or give concessions to the foreign vendor because of flaws in the policy," a ministry official said. Another major change would be to modify the "Make procedure" in the DPP which is "not yielding results", an official said. Under this, 80% of the research funding for a project would be provided by the Indian government to a foreign government or private vendor to develop a particular product in return for an assured order over a certain period so that it becomes commercially viable for the developer. Source: http://www.hindustantimes.com/india-news/india-s-military-procurement-process-blamed-forrafale-bungle/article1-1343524.aspx * Very few women in para forces: The government may talk tall about the efforts being made to increase the number of women in the police, but the numbers tell a different tale. Women form a meagre 2.15 per cent of the country's 8.87-lakh-strong paramilitary forces. Minister of State for Home Kiren Rijiju said directions have been issued to the six forces to bring the ratio to 5 per cent, as directed by a Parliamentary committee. However, at present, there is no proposal to increase the ratio of women in the paramilitary forces to 33 per cent. Of the total personnel, Rijiju said in a reply in Lok Sabha, only 19,098 are women. The CISF has the highest ratio of 4.89 per cent—6,203 out of 1.26 lakh, while the Assam Rifles has the least at 0.74 per cent—485 out of 65,609. The CRPF, the country's largest paramilitary force, has 6,120 women—2.13 per cent—in its 2.86-lakh-strong force. The numbers in the other forces are dismal, with the SSB having 1,186, the ITBP 1,570 and the BSF 3,534 women personnel. Rijiju said the government has taken steps to increase the numbers, including approving the recruitment of 2,772 women personnel in the SSB in the next four fiscals. The CRPF will also raise two women battalions. The government has also formulated a 10-point plan to encourage women to join the paramilitary forces, which include exemption of application fee, and relaxation in Physical Standard Test and Physical Efficiency Test for all women candidates. The forces have provided crèches and day-care centres to women personnel, he said. Source: http://www.deccanherald.com/content/475507/very-few-women-para-forces.html * Defence Minister Quells Mutiny with a Bounty: At a time when the Indian Army is fighting a court battle over its promotion policy, Defence Minister Manohar Parrikar has saved himself and his ministry from a major embarrassment by nipping in the bud a discontent brewing among the 50 top Indian Coast Guard officers. Upset at not getting their dues and tired of being ignored for the past six years, these officers were all set to take the legal recourse to address their grievances. The government is already fighting a case defending the Army’s “command and exit” promotion policy of 2009, which has widened the rift within the service as it is skewed in favour of officers from infantry and artillery. In March this year, the Armed Forces Tribunal quashed the 2009 policy, but the Centre has taken the matter to the Supreme Court, arguing that this policy is the only way to ensure a younger force. The government said the age profile of unit commanders in Pakistan and China was 35 and 40 years, respectively, and thus, that of Indian battalion commanders also needed to be brought down. With regard to the Indian Coast Guard promotion policy, it all started in 2008. The UPA government in its sixth pay commission recommendations approved a Modified Assured Career Progression Scheme (MACPS) for the Indian Coast Guard officers. However, due to a technical flaw in the order, it could not be implemented by the Coast Guard Headquarters. Under the new MACPS scheme, around 50 officers of the Indian Coast Guard, who joined service by 1990 and were subsequently promoted to the rank of Commandant by 2002, were to be the beneficiaries. So a group of 15 officers made several representations before their respective Zone headquarters and subsequently to the Coast Guard headquarters in New Delhi. Finally, in September 2013, the Coast Guard headquarters turned down the petition. The officers then wrote to the then defence minister A K Antony. Antony’s office sat on their representation and did not take any remedial measures. The Coast Guard officers in February this year once again approached the office of the Defence minister. Finally, losing patience they resorted to file RTI and sought response from the ministry over their petition. “We had no other option but to take legal recourse after being unheard for such a long period. But now the minister has intervened and accepted to give our dues,” said one of the petitioners, on the condition of anonymity. Parrikar anticipated the mood of the officers and sought a detailed report from the Coast Guard headquarters on the matter. After extensive briefing and taking legal opinion, on 27 April, he issued an order for implementation of the MACP scheme. Ever since he took charge, Parrikar has been making efforts to reduce the legal cases pertaining to Armed Forces. He believes “our soldiers should not spend time fighting legal battles in court. Instead they should be on the border”. A top defence ministry official said this was a major decision by the minister, especially at a time, when approximately 15,000 cases related to Armed Forces are pending in various courts and Armed Forces Tribunals across the country. Moreover, already the Army’s controversial “command and exit policy”, faces the threat of being scrapped. The Apex Court took an adverse stand on it after the defence ministry failed to produce the policy acceptance letter despite repeated requests. The Army’s 2009 promotion policy was based the recommendation of the committee headed by former defence secretary Ajay Vikram Singh. The panel looked into lowering the age profile of commanding officers after the 1999 Kargil war. The policy has created a disproportionate amount of new ranks for the infantry and artillery against other branches such as the armoured corps, signals, engineering and mechanised infantry. The Story So Far Indian Coast Guard: Over 50 Coast Guard officers have been fighting for implementation of a new promotion policy since 2009. They made several representations and petitions but to no avail. Due to technical reasons, the policy could not be implemented. A group of 15 senior officers then made representations against the Coast Guard’s decision. Finally on April 27, after a fight of over six years, Parrikar issued instructions to implement the promotion scheme. The new policy allows 3 financial upgradation counted from the direct entry grade on completion of 10, 20 and 30 years of service. Financial upgradation under the scheme will be admissible whenever an officer has spent 10 years of continuous service.... Source: http://www.newindianexpress.com/thesundaystandard/Defence-Minister-Quells-Mutiny-with-aBounty/2015/05/03/article2794194.ece * India and France to discuss Rafale Trainers and additional option Clause: French Defence Minister Jean-Yves Le Drian is expected to lay the groundwork for the negotiations for the formal purchase of Rafale fighter jets from French firm Dassault during his India visit next week. But the signing of a formal contract will not happen just yet, India air force has asked for trainer variants of Rafale fighter jets to be included into 36 fighter jets ordered by PM Modi so that it can be used for Pilot training for unit conversion. Prime minister Narinder Modi in France placed an order for 36 Rafale Fighter jets which will be brought in G2G deal, but there was no clarity on how many of the jets ordered will be Single and twin seater variants, which most likely will be discussed in meeting . idrw.org is hearing figure of 6 Trainer variants along with 30 Single seater variants from its sources but final figure will be disclosed after meeting . India will also tell France how much of Rafale fighter jets can be added as follow-on option in the contract which can be brought under same contract and same price within set time frame which also likely will be brought under G2G deal as clarified by Defence minister Manohar parrikar . Source: http://idrw.org/india-and-france-to-discuss-rafale-trainers-and-additional-option-clause/ * “Navy Model” to Save Indian Air force? Government of India is all set to review defence procurement procedure for the Indian armed forces. Defence Minister Manohar Parrikar already has asked Armed forces to exercise financial prudence and the services should optimise all available resources. Government and Indian air force are working on a long-term integrated perspective plan which “ought to encompass 25 years which includes more Indigenisation and also select more private players to create Competitive enviroment in Indian Aerospace Business. Dubbed as ” Navy Model ” Which allowed Indian Navy succeed in Indigenisation of many weapons systems where Indian navy worked with Defence PSU’s not only as Customer but also as a Developer allowed India Navy use its smaller budget which resulted into better utilisation of resources to expand its fleet . Emulation of Navy Model will mean Indian air force needs to become less Import friendly force and more Indigenisation friendly. IAF will also need to be more involved with Defence manufacturers.... Source: http://idrw.org/navy-model-to-save-indian-air-force/ II Homeland Security * Militant killed in encounter in Meghalaya: A top militant leader of the Achik Matgrik Elite Force (AMEF) was on May 02 killed in a heavy gun battle with the security force in a remote village of Meghalaya's North Garo Hills District, police said. Commander-in-Chief of the AMEF, Jack Marcus was gunned down by a joint operation team of North Garo Hills District and East Garo Hills District police at Mandadrop at about 6.30 AM, a senior police official said. Police acted on a tip off about the presence of some militants in the area, he said. According to the official, police recovered one AK 47 rifle with two magazines, 49 cartridges, one 9mm pistol with one magazine, one empty case and 4 live rounds of 9mm, one magazine of 7.62 pistol with two live rounds, 14 electric detonators, 4 metres fuse wire and 8 pieces of gelatin sticks besides demand notes, diaries and SIM cards from the spot. "Marak was a former Area Commander of the Garo National Liberation Army (GNLA)," he said. According to him, when he was in the GNLA, Marak was instrumental behind the kidnapping of a block development officer of Daddengre in 2011. Later he joined another outfit and was instrumental in the kidnap of SBI cashier from Gasuapara last year. "He parted ways and formed AMEF and was involved in a series of kidnap and killing in Dainadubi areas," the official said. Source: meghalaya_1588884.html http://zeenews.india.com/news/north-east/militant-killed-in-encounter-in- Indicia solicits comments and advice from readers on any aspect of the report. It believes that cross-fertilisation of knowledge invariably leads to better knowledge Indicia Research & Advisory Fusion Knowledge in Indian Defence and Strategic Affairs C – 79, Basement, Malviya Nagar, New Delhi – 110 017 T&F: + 91 11 4579 2922, email: [email protected]
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