1. No category

Indicia Knowledge Brief
A Daily Assessment on Indian Defence and Internal/Homeland Security
May 26, 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 $1.9 billion deal for Airbus Group NV military planes to be built
jointly in India went to Tata Advanced Systems Ltd rather than Hindustan
Aeronautics because the defence ministry is trying to refresh an aging air
force. The move signalled a deliberate skirting state-run Hindustan
Aeronautics Ltd, India’s largest defence contractor, and signalling
opportunities for the private sector.
Adani Group is exploring a foray into defence and aerospace production,
the latest among big industrial groups eyeing a piece of what many
believe to be a sunrise sector under the Modi regime with its accent on
big defence spending dovetailed with its 'Make in India' drive.
I. National Defence and Security:
Narendra Modi skirts Hindustan Aeronautics to counter China’s power:
Prime minister Narendra Modi’s efforts to refresh an aging air force are skirting
state-run Hindustan Aeronautics Ltd, India’s largest defence contractor, and
signalling opportunities for the private sector. The nation this month agreed a
$1.9 billion deal for Airbus Group NV military planes to be built jointly in India
by Tata Advanced Systems Ltd rather than Hindustan Aeronautics. Modi in April
shelved plans for the state firm to make French Rafale jets under license, putting
other local manufacturers on alert. Modi’s goals of a stronger military and
modern defence industry that makes greater use of private sector skills puts
Hindustan Aeronautics at a crossroads. It dominated India’s aerospace market
after independence from Britain, but project delays and crashes of jets the
company assembled are hurting the air force as rival China pulls ahead with
stealth fighters. “India’s private companies may not have Hindustan Aeronautic’s
aerospace experience,” said Richard Aboulafia, vice president at defence
consultancy Teal Group Corp. in Virginia. “But they’re much better managed and
can do a better job delivering products.” Talks between the government and
Dassault Aviation SA over a 2007 tender for 126 Rafales, including 108 to be
made by Hindustan Aeronautics, stalled partly because India sought quality
guarantees from Dassault for the locally made jets.
Modi’s decision
Modi then chose to buy 36 Rafales directly from the French government to get
them faster, leaving open the possibility of a separate order for more and in
effect killing the earlier $11 billion tender. The separate purchase could involve a
private company for local assembly, said Amit Cowshish, a distinguished fellow
at the Institute for Defence Studies and Analyses in New Delhi. “India is a huge
market for defence products,” he said. “There’s room for more than just
Hindustan Aeronautics. The Airbus-Tata decision is a good beginning.” Modi’s
vision is to develop a defence-industrial complex that can strengthen India’s
sometimes poorly equipped armed forces, spur manufacturing and curb
overseas acquisitions by one of the world’s biggest arms importers. He’s
approved about $45 billion of weapons purchases since taking power last May.
Hindustan Aeronautics has assembled about 200 Russian Sukhoi SU-30MKI
warplanes locally under license, six of which have crashed since 2009, most
recently on 19 May with both pilots ejecting. The fleet was temporarily grounded
after a Sukhoi ejected its pilots without warning in October.....
Source:
http://www.livemint.com/Politics/H6OxPFQet3JQSDIN2HzIjI/Narendra-Modi-skirts-HindustanAeronautics-to-counter-China.html
*
After Pranab, Defence Min Parrikar praises Bofors gun:
Defence Minister Manohar Parrikar described the quality of Swedish Bofors guns
as "good" but refused to comment on remarks attributed to President Pranab
Mukherjee that the controversy surrounding its acquisition was a "media trial".
"I can only certify that Bofors guns are good. I do not make any statement on
President's statement. If you ask me about quality of Bofors guns, then they are
good," Parrikar told reporters. Mukherjee was quoted, wrongly, by a Swedish
daily as saying, "First of all - it is yet to be to be established that there was a
scandal. No Indian court has established it. I was the defence minister of the
country long after Bofors, and all my generals certified that this is one of the best
guns we are having. Till today, Indian army is using it. "The so-called scandal
which you talk of, yes, in the media, it was there. There was a media trial. But I'm
afraid, let us not be too much carried (away) by publicity." However, the video of
the interview shows no such comments being made by the President, who is
scheduled to visit Sweden next month. The scandal of procurement of 155mm
howitzer field Bofors guns plagued the Rajiv Gandhi government in the late
1980s and became a big election issue in 1989 in which the former Prime
Minister had to face defeat.
Source: http://www.deccanherald.com/content/479819/after-pranab-defence-min-parrikar.html
*
'Bofors scam was a media trial, not established by Indian court:
While talking to the Editor-in-Chief of Dagens Nyhetter, Peter Wolodarski,
President Mukherjee said that the Bofors case was only a media trial as it was
extensively covered by media. He added that Bofors is one of the best guns which
Indian army is using even today. The Bofors scam had occurred during the
period between 1980- 1990, involving India and Sweden. The case involves
alleged payment of kickbacks for sealing an arms deal signed between India and
Sweden. Congress politicians, former Indian prime minister Rajiv Gandhi and
several other Swedish and Indian officials are alleged to be involved in it.
Source: http://www.deccanherald.com/content/479794/bofors-scam-media-trial-not.html
*
Make in India: Adani Group may foray into defence
manufacturing at Mundra:
Gujarat-based edible oils-to-ports conglomerate Adani Group is quietly
evaluating a foray into defence and aerospace production, the latest among big
industrial groups eyeing a piece of what many believe to be a sunrise sector
under the Modi regime with its accent on big defence spending dovetailed with
its 'Make in India' drive. A clutch of Adani executives has been meeting
representatives of large overseas defence companies to explore tieups for
manufacturing a range of defence equipment, pitching the group's mainstay
asset — the country's largest private port and SEZ at Mundra in Gujarat — with
its sea and land linkages as a possible manufacturing location, at least five people
familiar with the matter told ET. The discussions in some cases were led by
Karan Adani, the elder son of billionaire group chairman Gautam Adani, these
people said, requesting anonymity because of the sensitive nature of the
discussions. The Adani Group, whose businesses span logistics, power
generation, coal mining and gas distribution, declined comment, saying it "would
not like to comment on the story" in response to a detailed questionnaire by ET....
Source: http://economictimes.indiatimes.com/news/defence/make-in-india-adani-group-may-foray-intodefence-manufacturing-at-mundra/articleshow/47422928.cms?cfmid=11001089
*
Modi Skirts India’s Top Warplane Maker to Check China:
Prime Minister Narendra Modi’s efforts to refresh an aging air force are skirting
state-run Hindustan Aeronautics Ltd., India’s largest defense contractor, and
signaling opportunities for the private sector. The nation this month agreed a
$1.9 billion deal for Airbus Group NV military planes to be built jointly in India
by Tata Advanced Systems Ltd. rather than Hindustan Aeronautics. Modi in April
shelved plans for the state firm to make French Rafale jets under license, putting
other local manufacturers on alert. Modi’s goals of a stronger military and
modern defense industry that makes greater use of private sector skills puts
Hindustan Aeronautics at a crossroads. It dominated India’s aerospace market
after independence from Britain, but project delays and crashes of jets the
company assembled are hurting the air force as rival China pulls ahead with
stealth fighters. “India’s private companies may not have Hindustan Aeronautic’s
aerospace experience,” said Richard Aboulafia, vice president at defense
consultancy Teal Group Corp. in Virginia. “But they’re much better managed and
can do a better job delivering products.” Talks between the government and
Dassault Aviation SA over a 2007 tender for 126 Rafales, including 108 to be
made by Hindustan Aeronautics, stalled partly because India sought quality
guarantees from Dassault for the locally made jets....
Source: http://www.bloomberg.com/news/articles/2015-05-25/modi-skirts-india-s-top-warplane-makerto-check-china
*
'I am the Defence Minister, and my concern is India's defence':
India’s current defence arrangement is inadequate and needs an individual or
body like the Chief of Defence Staff (CDS) to look at the integration of forces,
Defence Minister Manohar Parrikar said. “I will take a call on it maybe in July or
so. But to be frank, it is not my decision. The decision has to be of the Cabinet
Committee on Security… ” he told The Hindu when asked about the Modi
government’s view. “So I will put up my proposal… Let it be discussed by various
people concerned and then we will come to a conclusion. I believe that there
should be a body, which will see the integration of forces,” he said at his South
Block office. Pointing out that the situation on the Line of Actual Control with
China was better than earlier, Mr. Parrikar said he viewed China as a “healthy
competitor” in the economic field, whose success in manufacturing he would like
to replicate in India. On the boundary question, the Defence Minister felt that
slowly, over a period of time, issues with China would cool down and get
resolved but if someone “expects overnight resolution, that might not be
possible”.
Here is the full interview:
Mr. Parrikar, your comments on using terrorists to kill terrorists have created a
controversy…
I think you have a website video — I think courtesy Aaj Tak — that shows the
full five-minute clip. I don’t have to say anything on the issue. The Pakistani
Defence Minister has reacted to your comments, and his claim is that these show
India is fomenting terror in Pakistan. How do you react to that?
You listen to what I have said and in what context. If you see the context, the
question was on 39 terror camps in Pakistan. So I don’t have to answer any
further on the issue. I am the Defence Minister of India, and my concern is about
the defence of India. So beyond that, I don’t think it deserves any further
clarification or information. We see all other countries engaging with the
Pakistani Army Chief directly. The previous regime had invited him. Do you think
that India needs to engage directly with the Pakistani Army? Exactly what I am
trying to point out. You are getting me into the field of [External Affairs Minister]
Sushmaji [Swaraj]. You should go to Sushmaji with this question. My job is to
create an environment where my security forces are prepared all the time, and
you will find them prepared. When an emergency requirement was there, we
managed to help our neighbours, we got water to Male, we got our ships in
Yemen from where not only Indian nationals but also other nationals, including
Pakistanis, were rescued by us. We didn’t say that they are Pakistanis because it
was a humanitarian issue. But we were the only country which could do that. We
went to Nepal quickly [after the earthquake]. So wherever we are on call, we
have reacted immediately. Today, the Defence Ministry’s role is not used for
diplomatic or soft targets. Soft methodology is normally used in political or
diplomatic channels. The Defence Ministry is the hard way. So we have to
strengthen our forces. Strengthen it to a level that anyone should think twice
before considering any misadventure.
So you are quite confident in your preparation…
My preparation I am confident of what we are doing. We are building up our
strength. Again I am very clear. My strength is based on my national interests
and it is [a] defensive posture. But even in [a] defensive posture, if your strength
is adequate and that adequate strength is expressed, I don’t see any reason there
should be any talk about threat....
Source:
http://www.thehindu.com/opinion/interview/union-defence-minister-manohar-parrikarexclusive-interview/article7244933.ece?homepage=true
*
Chinese Takeaway: Parrikar Missing:
As top defence leaders from across the Indo-Pacific meet this week at the annual
Shangri La Dialogue in Singapore, the Indian defence minister will once again be
conspicuous by his absence. Rising China’s growing assertiveness and the
uncertainties surrounding the American pivot to Asia have triggered an intensive
interest in the region to expand defence engagement with New Delhi. But the
ministry of defence (MoD) seems as reluctant as ever to raise its regional
security profile. Governments might come and go, but some things obviously
don’t change at the MoD. The tone of disinterest in Asian defence diplomacy, set
by A.K. Antony during the UPA years, appears to continue under the Narendra
Modi government. South Block’s reluctance to participate effectively in the
Shangri La Dialogue stands in contrast to the growing importance of the forum.
The deterioration of China’s relations with the US and Japan and the mounting
military tensions between China and its Southeast Asian neighbours, especially
Vietnam and the Philippines, have resulted in an intensification of regional
defence diplomacy. With few formal mechanisms for addressing security
challenges in Asia, the Shangri La Dialogue has become a valuable forum for the
exchange of ideas and informal interaction between senior defence
policymakers. During his eight long years at the MoD, Antony chose to speak at
the Shangri La conference just once. Nor was there much certainty about who
represents India. One year, it is the MoS for defence; it is the NSA or the chief of
naval staff in others. In any case, the MoD does not decide until the very last
minute on who might speak....
Source: http://indianexpress.com/article/opinion/columns/chinese-takeaway-parrikar-missing/
*
Potential Trailblazer for Defence Indigenisation:
May 13 has a special significance in India’s contemporary history, as on this day
in 1998 India tested the last two nuclear devices as part of Pokhran II. They
propelled India into the select league possessing a nuclear deterrent, but deep
down Indian military power lacked the strategic depth afforded by an indigenous
defence industry. May 13 of this year added another bookmark to this date; India
took the first real step in its drive to address this void when the Defence
Acquisition Council accepted the single vendor Tata-Airbus offer of
manufacturing, in-country, the C-295 as an Avro replacement aircraft for the
Indian Air Force (IAF). It is just the catalyst required for defence indigenisation
as also an indicator of the government’s determination to get a home-grown
defence industrial base going, with the private sector being an equal partner to
the defence public sector undertakings (DPSUs). It has been repeated ad
nauseum that our defence ministry has gone through a long Arctic winter these
past ten years during which, among many things, the Army got depleted of its
artillery guns, the Navy of its submarines and the IAF of its strike squadron
strength. So, how does acquisition of a transport aircraft become a gamechanger? The answer lies in understanding the environment of fear and
trepidation that has prevailed in the ministry of defence these past years, with
decision makers looking for any straw in the wind to avoid recommending a
purchase—anonymous letters, protests from rejected vendors, from MPs and
even pressures from the DPSUs! As per South Block folklore, there was this
defence secretary, who, on retirement, proudly announced that he did not sign a
single contract in his term! The fear of the three Cs—CVC, CAG and CBI—stymied
any proclivity on part of a bureaucrat or a politician to put his signature on a
contract. The acceptance now of the $2 billion C-295 proposal shows a positive
and bold mindset and “Make in India” seems to be on its way. Fast decision
making can also be expected in future as the forthcoming amendment to the
Prevention of Corruption Act (which makes obtaining prior permission a pre-
requisite to file a case against a retired government official) would remove
persecution worries of decision-takers....
Source:
http://www.newindianexpress.com/columns/Potential-Trailblazer-for-DefenceIndigenisation/2015/05/26/article2832671.ece
*
Race for DRDO top spot in its final lap:
Radar specialist S Christopher has emerged as the frontrunner to take over as
the next chief of the Defence Research and Development Organisation (DRDO).
Christopher heads the Bengaluru-based Centre for Airborne Systems and heads
the project to develop airborne early warning and control systems. The post has
been vacant since January 31 when the government terminated then chief
Avinash Chander’s contract. G Satheesh Reddy, who heads the Hyderabad-based
Research Centre Imarat, and Anil Datar, chief of Pune-based Armament and
Combat Engineering cluster, were also in the running. The government will
appoint a scientific advisor to the defence minister after the DRDO vacancy is
taken care. Both roles were being essayed by the DRDO chief so far.
Source:
http://www.hindustantimes.com/india-news/race-for-drdo-top-spot-in-its-final-lap/article11351235.aspx
II
Homeland Security
*
Attackers will be paid back in same coin: Parrikar reiterates:
Parrikar noted that his remarks evoked a sharp reaction only from one country
and, without naming Pakistan, said the question was about his reaction on the
terrorist camps in Pakistan-occupied-Kashmir supported by Pakistan. "So the
response was based on that," he told PTI in an interview. He further added that
the word "neutralise" does not mean only killing but also making terrorists
switch the sides and surrendering. Underlining that his remark was generic and
not against anyone in particular, Parrikar maintained that only a certain part of
his remarks was picked up and highlighted. "Basically, if I have to defend my
country, I will go to any extent...Whatever is required to be done will be done.
That is the basic motto which one should have. "If someone harms my country, I
have to take pro-active action....The army's basic purpose is that if anyone
attacks the country, attack him back. Pay him back in the same coin," Parrikar
asserted, underlining that one does not keep 13 lakh strong Army to "preach
peace". However, he clarified that "I have not said I am going to do covert
operation. I did not talk about it. The person who asked me talked about covert
operation. Not me." During a media event last week, Parrikar, in reply to a
question, had said, "We have to neutralise terrorists through terrorists only. Why
can't we do it? We should do it". The remarks generated sharp reaction from
Pakistan which said it confirms apprehensions about India's involvement in
terrorism. "This statement only confirms Pakistan's apprehensions about India's
involvement in terrorism in Pakistan. It must be the first time that a Minister of
an elected government openly advocates use of terrorism in another country on
the pretext of preventing terrorism from that country or its non-state actors,"
Sartaz Aziz, Adviser to Pakistan Prime Minister on Foreign Affairs, has said. "It is
my duty to go to any extent. It is my oath that I have taken that I will protect the
constitution. Protecting constitution means protecting the country. So obviously,
for protection of my country, certain issues have to be done. Giving
interpretation to it, I will not give," Parrikar said....
Source: http://www.deccanherald.com/content/479816/attackers-paid-back-same-coin.html
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]