Indicia Knowledge Brief A Daily Assessment on Indian Defence and Internal/Homeland Security May 17, 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 French team constituted to negotiate the Rafale deal has arrived in India and talks can start anytime now, Defence Minister Manohar Parrikar rightly described the agreement as "one of the bold initiatives" of the Modi government. The Rs.2,900-crore deal to procure M-777 Ultra-Light Howitzers (ULH) from the U.S. through the foreign military Sales (FMS) route will lead to investments of over $200 million under offset requirements. I. National Defence and Security: French team arrives in India to negotiate Rafale deal with defence ministry: French team constituted to negotiate the Rafale deal has arrived in India and talks can start anytime now, Defence Minister Manohar Parrikar said today as he described the agreement as "one of the bold initiatives" of the Modi government. Parrikar said India has constituted a committee headed by Air Marshal SBP Sinha to hold negotiations with the French team. "The negotiations on Rafale deal can start anytime from now. Indian government has already formed a committee headed by Air Marshal Sinha. The team from France already arrived in India on May 12 to start the negotiations," he told reporters. Defence Minister Manohar Parrikar. PTIDefence Minister Manohar Parrikar. PTI. India is to buy 36 Rafale fighter jets in flyaway condition from France after Prime Minister Narendra Modi and French President Francois Hollande last month agreed to conclude an InterGovernmental Agreement bypassing the protracted negotiations for purchase of 126 such jets. The two countries had decided to form committees to take forward the negotiations. "The signing of agreement for Rafale purchase was one of the bold decisions taken by the government. We signed the deal for better price, better than earlier," he said. A joint statement issued after Modi-Hollande talks had said the two leaders agreed to conclude an Inter-Governmental Agreement for supply of the aircraft on terms that would be "better" than that conveyed as part of a separate process underway. It was an apparent reference to the talks that kicked off in 2012 for the sale of 126 Rafale fighter jets for $12 billion. The deal had been bogged down over cost and Dassault Aviation's reluctance to stand guarantee for 108 planes to be made by state-run Hindustan Aeronautics Limited (HAL). Talking about various initiatives taken by his ministry in the last one year, Parrikar said, "One Rank-One Pension (OROP) proposal is reaching finality." Asked about CAG's report on India's battlereadiness, he said,"The report about India’s low preparedness to fight the war is old one, dating back to March 2013. After that we have improved our preparedness by almost 50 per cent." About the government auditor's contention that India's ammunition stock would not last even a few days in the event of a war, Parrikar said, ordnance production had also improved over the past year. He said the Defence Ministry has delisted 65 per cent of the items, making them free for manufacturing and export. The minister said the impact of raising FDI limit in defence to 49 per cent will also be seen in the years to come. Source: http://www.firstpost.com/india/french-team-arrives-india-negotiate-rafale-deal-defence-ministry2248122.html * Military plane, chopper deals to kick-start aero industry's ecosystem: Parrikar: Clearance of the Rs.11,930 crore Airbus-TATA consortium bid to manufacture 56 transport aircraft for the IAF and of a Russian firm's bid to build 200 advanced military helicopters will kick-start the aero industry ecosystem in India, especially for aviation parts, Defence Minister Manohar Parrikar said on Saturday. Parrikar, who was speaking to reporters at a press conference at BJP's state headquarters here, also said there was a shortage of around 500 helicopters across the Indian military wings. "From this, aero ecosystem, especially which relates to manufacture of aviation parts will get a boost... It will provide a kick-start to the private aviation industry," the minister said. He also said that 14 of the Indian Air Force (IAF) transport planes to be purchased from Airbus-Tata would be in fly-away condition while the remaining 42 would be manufactured in India. "For them, 50 percent (or) more parts will be indigenous," Parrikar said, adding that the proportion of indigenous parts would go above 50 percent in time. Parrikar also said that considering the shortfall of as many as 500 helicopters in the Indian Army and the IAF, there would be no compromise on the manufacture of Dhruv helicopters by the defence ministryoperated aviation company Hindustan Aeronautics Limited in Bengaluru. He said it even as the Defence Acquisition Council on Thursday approved the offer of a Russian defence manufacturing firm to build 200 advanced twin-engine Kamov helicopters for the Indian armed forces. "There will be no compromise on HAL's Dhruv. We need quantity from them too. Army and Air Force need many more helicopters. In fact, the shortage is almost around 500," Parrikar said, adding that around 250 Chetak and Cheetah helicopters used by the Indian military were around 30 years old. Speaking about the helicopter deal, Parrikar said the Indian government was dealing with Russia directly over the issue and that while 60 choppers would be purchased directly "rest of the 140 will be manufactured here under the Make in India programme". "As a result, an eco-system for helicopters will be created," Parrikar said. Source: http://www.business-standard.com/article/news-ians/military-plane-chopper-deals-to-kick-startaero-industry-s-ecosystem-parrikar-115051600942_1.html * Defence Manufacturing and “Make in India” – What will it take? A report by Reuters dated 8th April has questioned “Make in India” in the defence sector, that it only remains on paper by saying “In a major blow to Prime Minister Narendra Modi’s ‘make in India’ drive to wean the country off imported arms, Indian firms have spurned some $15 billion worth of government tenders to make a range of weapons since 2013.” The Reuters report says, “one problem is that some military officers eye technology only available in the west, without understanding what Indian firms can produce” and goes on to quote a scholar at the Centre for Policy Research in New Delhi observing that the armed forces are reluctant to accept hardware that doesn’t have a record in operational conditions and Indian companies have no track record. The blame has been passed on to the armed forces in such a beautiful and subtle fashion that the unsuspecting public would never guess the truth. Most would believe that these military guys with all the spit and polish only want fancy foreign armaments. But let us take the case of the Bofors. These guns were procured complete with the package of Transfer of Technology (ToT) on which the DRDO and the Ordnance Factory Board (OFB) sat for over 30 years. During the Kargil Conflict, the 400 guns imported had to be cannibalised to at least make 100 guns operational. For not using the ToT, a flimsy excuse is being given that Army never asked for it. But then CAG reports say that numerous projects have been undertaken by the DRDO without MoD approval and in fact in one particular year only 10% projects had MoD approval. Now this googly that, “the armed forces are reluctant to accept hardware that doesn’t have a record in operational conditions” why would the armed forces not accept hardware that is successful in trials that are always done under operational conditions as standard procedure? The recent example is the indigenous Dhanush howitzer that has successfully completed trials. It is common knowledge that India imports 70% of its defence needs but public would be unaware that the Ministry of Commerce and Industry acknowledges 50% of weapons and equipment held by our military is “obsolete”. To cap this, CAG states that balance 30% of defence items produced indigenously are “substandard”. Would the public know that in 1995 (when too we were meeting 70% of our defence requirements through import), Dr Abdul Kalam headed a review committee that directed we must indigenously meet 70% of our defence needs by 2014. However, when stock was taken 19 years later, in 2014, we had not moved one inch forward. The irony is that this remained the state despite Joint Secretaries of the MoD on all Boards of the DRDO-DPSUs-OF. There were obviously no government directions, no checks and balances and no mid course corrections..... Source: http://www.niticentral.com/2015/05/17/arms-mafia-strikes-313630.html * Weapon deals to help boost artillery power of the Army: The Rs.2,900-crore deal to procure M-777 Ultra-Light Howitzers (ULH) from the U.S. through the foreign military Sales (FMS) route will lead to investments of over $200 million under offset requirements. This deal and other gun upgrades will boost the Army’s firepower, which is critically short of guns, and will give an impetus to the ‘Make in India’ initiative. “This envisages investments in approximately 40 Indian defence suppliers across the country as well as an offer to establish an Assembly Integration & Test facility for the weapon system in India in partnership with an Indian industrial company,” John Kelly of BAE Systems told The Hindu. Punj Lloyd, one of the companies in the race, confirmed that evaluation of proposals was being carried out. “Punj Lloyd has received an RFQ from BAE Systems and we have responded to the same. We are awaiting their response,” Ashok Wadhawan of Punj Lloyd told The Hindu. Dhanush set for induction Meanwhile, the indigenously upgraded Bofors gun ‘Dhanush’ is all set for induction with all evaluations successfully completed. The upgrade was done by the Ordinance Factory Board based on the design of the original Bofors gun acquired in the 1980’s and is 80 per cent indigenous. The Army has already placed an order for 114 guns and expressed interest for 300 more. A third process for upgrade of 300 of the Army’s 130mm guns to 155mm by the private sector is ongoing. Several companies have been given guns for testing and upgrade and user evaluation is likely to take place by year end, industry sources informed..... Source: http://www.thehindu.com/news/national/weapon-deals-to-help-boost-artillery-power-of-thearmy/article7215007.ece?homepage=true * Isro Set to Test 'Made in India' Multi-Object Tracking Radar Next Month: The Indian space agency is set to test its sophisticated, indigenously-built, multiobject tracking radar (MOTR) on a rocket flight next month while formal commissioning is expected to take three months time, said a senior official. "The MOTR designed and developed by Satish Dhawan Space Centre (SDSC) will be tested next month during a PSLV (Polar Satellite Launch Vehicle) rocket flight. The formal commissioning of the system is expected to happen three months down the line," SDSC director M.Y.S. Prasad told reporters in Sriharikota. The space scientists with justifiable pride were showcasing the state-of-the art radar that can track 10 objects simultaneously objects up to 30cm by 30cm at distance of 800 km. In case of objects of 50cm by 50 cm size, the radar can track at a slant range of 1,000 km. "The Rs. 245 crores MOTR can be termed as the classic example of a 'Make in India' project," Prasad said. According to him, a similar radar would cost around Rs. 800 crores in the international markets and is mainly used for defence purposes. "The software for operating the system and analysing the data was developed in-house and around Rs. 100 crores value could be put for that," said V.Seshagiri Rao, the former project director. To the best of his knowledge only select group of countries have the capacity to build such radars in the world, Prasad said. Prasad said Raythaeon, Northrop Grumman, Lockheed Martin, of the US, Thales, Canada-Europe, Elta of Israel and NEC of Japan have the capability to make such systems. With this radar, Isro acquires the capacity to handle its future missions involving atmospheric reentry of space modules, having a protective eye on its space assets and track space debris. Currently Isro uses the space debris data provided by US space agency Nasa. The commissioning of MOTR would provide real time data for Isro. "The project got the green signal in 2012 with a target to get the radar ready by February 2015 which was achieved," Prasad said..... Source: http://gadgets.ndtv.com/science/news/isro-set-to-test-made-in-india-multi-object-tracking-radarnext-month-692895 * Defence Ministry revived in one year of Modi Sarkar: The one year of NDA government has not only revived the coal and the telecom sector with their auctions, but has also brought relief to the defense sector, with clearance being given to nearly 40 new defence acquisition proposals, worth over Rs 1 lakh crore. When compared to the UPA's regime, this is in stark contradiction to the pace with which A K Antony's department cleared files. The 'Make in India' pitch by PM Modi has attracted a lot of attention and several top notch defence manufacturers have shown interest in setting up a manufacturing unit in India. There has been swift decision making at the top level, especially after the appointment of Manohar Parrikar as the Defence Minister. However, there are things which are yet to be sorted out. The defence procurement policy (DPP) is still not formulated. A committee has been appointed with Dhirendra Singh and former MoD director-general of acquisitions Satish Agnihotri as members are looking at DPP. According to media reports, the policy shall be finalised by July. Institutions like DRDO has been facing the pressure of delivery, as Narendra Modi is personally looking into the defence deals and related manufacturing. The FDI in the sector has also been increased to 49%, which although has not shown major investments from companies, is poised to be game-changer for the sector. Source: http://www.indiainfoline.com/article/news-top-story/defence-ministry-revived-in-one-year-ofmodi-sarkar-115051600610_1.html * CSL offers to build another aircraft carrier: Amidst report of the Defence Acquisition Council granting Rs.30 crore to the Indian Navy to start working on a second indigenous aircraft carrier, it has emerged that Cochin Shipyard Limited (CSL), which is constructing the first indigenous carrier INS Vikrant, has urged the Navy to place an order with it for a follow-on carrier of Vikrant-class. Vikrant is set for undocking from CSL’s building bay later this month. CSL assurance The CSL is learnt to have assured the Navy in end-2014 that in case a follow-on order for a carrier is placed, it would be able to deliver the vessel in just four years from the time of delivery of INS Vikrant, scheduled to take place in 2018. The Navy has not responded to the proposal yet. “A follow-on carrier would be advantageous for the Navy, as there would be no time lost on detailed design, development of specialised material, technology, honing of skills of the workforce and so on. Since the Navy desires to operate two carrier task forces at any given time, it would be a good option to exercise,” said a CSL official. “The carrier INS Viraat is retiring [next year] and the refurbished 45,000-tonne INS Vikramaditya [undergoing a short refit now] will be joined by the 40,000-tonne INS Vikrant a few years from now. Should there be a second Vikrant-class carrier with the same specifications and equipment, it could be operationalised in early or mid-2020s. It makes perfect sense as two carriers would always be operational even as the third remained under refit,” he added. The lead time taken for the construction of INS Vikrant was in sync with the global average of nine years, said another official. “The follow-on vessels of a class always take much shorter periods to deliver,” he contended. However, a senior Navy officer told The Hindu that the force had firmed up the plans to have a super carrier displacing 65,000 tonnes after Vikrant. It would most likely be nuclearpropelled, with an electromagnetic aircraft launch system, widely referred to as EMALS catapult, and would embark a whole new fleet of naval fighters, he said. CSL’s proposed larger dry-dock capable of taking on ships of any size would be ready by the time the Navy floats the tender for a second carrier. Source: http://www.thehindu.com/news/national/kerala/csl-offers-to-build-another-aircraftcarrier/article7212380.ece * Talks on Rafale deal should have started: Parrikar: Initial discussions between the Indian and French sides over the purchase of Rafale fighter jets "should have started" already, defence minister Manohar Parrikar said here on Saturday. Parrikar, who was addressing a press conference at the party's state headquarters, also said the current Defence Procurement Procedure was a "very cumbersome process" and that it required a bold initiative by Prime Minister Narendra Modi to seal the Rafale deal with the French government. "On May 13, our committee was formed, which is headed by (deputy chief of Air staff) Air Marshal (SBP) Sinha from our side and his officers. Not negotiations, from today talks should have started," Parrikar said. He lamented that because of the current Defence Procurement Procedure, India could not buy a fighter plane for over 15 years. "The exercise started in 2000 and could not be concluded even by 2015. For 15 years we did not buy a single plane. So we took a very bold initiative and Modi decided to buy it directly with a better price and on better terms. What they are will be revealed in a month or two," Parrikar said, adding that speeding up the process was necessary. "We took it on a fast track. That was necessary," Parrikar said. Prime Minister Modi during his visit to France in April signed an agreement to buy 36 Rafale fighter jets for $6 billion. Source: http://timesofindia.indiatimes.com/india/Talks-on-Rafale-deal-should-have-startedParrikar/articleshow/47310147.cms II Homeland Security * India likely to consider another security review after Afghanistan terror attack: A piece of "highly credible" intelligence input received four months ago that indicated preparations for a "spectacular attack" on Indian assets in Afghanistan had put the country's security brass on high alert and led to a comprehensive security review. Security agencies are looking at Wednesday's attack in Kabul, in which four Indians were killed, in this perspective and another review is likely. The input received earlier this year stood out because it included a specific communication intercept picked up from Rawalpindi, Pakistan, stressing the need to target Indian assets in Afghanistan, said officials familiar with the matter. Intelligence officials said the "chatter" put the needle of suspicion on the Haqqani network. Once the veracity of this input was established, alarm bells went off in New Delhi. A hijack alert was sounded for the daily Air India flight to Kabul and extra security checks were added at the Kabul airport. A high-level team was sent to Afghanistan in early February for a thorough review of the security arrangements. The team comprised representatives from Intelligence Bureau, Research & Analysis Wing — India's premier external intelligence agency, and the Indo-Tibetan Border Police (ITBP) — the paramilitary outfit deployed to secure Indian assets in Afghanistan. The team not only reviewed the security of the Indian embassy and the personal security of the ambassador, but also surveyed arrangements for the Afghan parliament building, which is being built by India. The members also visited Indian consulates and key project sites such as Salma dam, where India is the main executing agency. Following the review, the Air India office in Kabul is being shifted closer to the embassy in Wazir Akbar Khan, the city's most fortified area that houses high-profile foreign establishments. The security review, however, did not cover guesthouses frequented by Indians as the input made no specific mention. Source: http://timesofindia.indiatimes.com/india/India-likely-to-consider-another-security-review-afterAfghanistan-terror-attack/articleshow/47307420.cms * Army Chief General Dalbir Singh reviews situation in Nagaland: Army Chief General Dalbir Singh today took stock of the security situation in Nagaland. During a two-day visit, which ended today, Singh visited Rangapahar Military station in Dimapur, the headquarters of the Spear Corps, Army officers said. The Chief of Army Staff, accompanied by his wife Namita Shuag, was received by Lt Gen M M S Rai, GOC-in-C of Eastern Command and was briefed on the prevailing security situation in the Corps Zone as also on the operational preparedness of the Spear Corps, they said. The Army Chief appreciated the state of preparedness and people friendly conduct of counter insurgency operations, the officials said adding, General Singh also interacted with the troops. Source: http://economictimes.indiatimes.com/news/defence/army-chief-general-dalbir-singh-reviewssituation-in-nagaland/articleshow/47311146.cms 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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