Light Combat Aircraft Makes Successful Maiden Flight

The first aircraft in the Limited Series Production of Tejas, indigenous Light Combat Aircraft, (LSP-1), has made its successful maiden flight at HAL airport in Bangalore. LSP-1 would be the first aircraft to roll out of HAL production hangar, marking the beginning of series production of Tejas for induction into the Air Force. 

The flight in Bangalore on Wednesday lasted for 47 minutes, during which all the systems of the aircraft functioned "perfectly well", Defence Research and Development Organisation said.

Flown by Group Captain A P Singh, the aircraft has covered an altitude up to 11 km at a supersonic speed of 1.1 Mach, DRDO said in its release. 

This is the first time in the country that any aircraft has gone supersonic in the very first flight, it said.

As is customary for the first flight of a prototype, the flight was chased by another Tejas (TD-2).

India Buying Arms without any Long-Term Vision

India's long-term defence and strategic planning continues to flounder, with no concrete measures yet in place to build military capabilities in a systematic manner in tune with the country's growing geo-political aspirations.

Instead, in the absence of integrated planning, what we have is the continuing squabble among Army, Navy and IAF for bigger slices of the budgetary pie, without much "inter-service prioritisation" to achieve the required military posture.

India, of course, is certainly procuring a lot of military hardware and software, inking as it has defence deals worth over $15 billion in the last three years to emerge as the biggest arms buyer in the developing world.

But is it getting the biggest bang for its buck? The lack of systematic plans to build "capabilities" in the most cost-effective manner, instead of merely procuring weapon systems, would certainly indicate otherwise.

Take, for instance, the much-touted Long-Term Integrated Perspective Plan (LTIPP) for the armed forces. First, the draft LTIPP for 2002–2017 was junked since it could not be finalised in time. Now, the date for approval of the new "upgraded" LTIPP for 2007–2022 has been set for October 31, 2009. The latest report of the parliamentary standing committee on defence has, in fact, pulled up the defence ministry (MoD) for its "lackadaisical approach and commitment" in preparing long-term plans for armed forces.

The new LTIPP is supposed to cover the 11th, 12th and 13th Five-Year Plan periods. But having failed to get the finance ministry's formal approval for even the 10th Defence Plan (2002–2007), there are fears that the story may well be repeated.

Incidentally, MoD had asked for Rs 4,18,101 crore during the five annual budgets during the 10th Plan period but got only Rs 3,79,300 crore, of which it was unable to spend Rs 21,167 crore.

Even in the 2007–2008 budget, the finance ministry reduced the defence outlay to Rs 96,000 crore from the MoD projection of Rs 1,03,940 crore. That is not all. The 11th Plan (2007–2012) has already kicked off but the finance ministry is yet to approve the MoD projections made for it.

"MoD should take up this matter at the highest level to get its 11th Plan cleared by the finance ministry and finalise the LTIPP at the earliest," said the parliamentary report.

India acquires 12 Contracted Weapon Locating Radars

The Indian Army has taken delivery of all the 12 sophisticated Weapon Locating Radars (WLRs) it had contracted to buy from leading US arms manufacturer Raytheon.

Ten of the 12 Firefinder radars had been supplied till last year, and the remaining two recently, according to a report in the coming issue of India Strategic Defence magazine, an advance copy of which was made available to IANS.

Designated AN-TPQ/37 Firefinder, the radars are used to locate and destroy hostile artillery fire. The army had actually projected their requirement in the early 1980s but their urgent necessity was felt when in the 1999 Kargil war it suffered more than 80 percent of its casualties to Pakistani artillery fire.

Pakistan then also had the advantage of WLRs, although of an earlier version -- AN-TPQ/36, which it had acquired in the early 1980s virtually for free in military doles from the US.

The deal for WLRs, signed in 2002, was the first one India signed with the US in the post-Cold War era, thanks to the improving diplomatic ties between New Delhi and Washington.

Initially, India looked for only eight WLRs under the US Foreign Military Sales (FMS) programme for $140 million but later, another four were added, taking the value to nearly $200 million.

Although the Indian Army needs a number of WLRs, there is no transfer of technology (ToT) involved in the deal with Raytheon. The remaining requirement is being met by a newly developed phased array system indigenously built by the public sector Bharat Electronics Limited (BEL).

Carrier vehicles for the Firefinder radars and support systems are being supplied by another public sector company, the fast growing Bharat Earth Movers Limited (BEML).

As for the AN-TPQ/37, the highly advanced radar can track 'first-round' hostile fire within seconds from a range of three to 50 km, and then launch precise counter attacks. Significantly, this radar can also be configured to detect missiles by adding a 60-degree sector mode antenna to extend its range.

A radar's computerised signal processors detects, verifies and tracks up to 10 artillery, mortar or rocket projectiles, and then estimates their firing position as well as the impact point. The system helps in correcting friendly fire in neutralising enemy positions. Manned by a crew of 12, the radar is capable of separating any clutter generated by birds, helicopters and aircraft.

Raytheon does not make platforms like aircraft or ships but, according to Admiral Walter F. Doran (retd), the recently appointed president of Raytheon Asia 'lends substance' to them. For instance, INS Jalashva, or the former USS Trenton, which the Indian Navy has purchased this year for $45 million under the FMS programme, has its main onboard equipment supplied by Raytheon.

'We do not manufacture platforms, but we lend substance to them... We are the technology virtually behind every mission,' Doran told India Strategic in a recent interview in New Delhi.

Notably, Raytheon also has the most advanced Active Electronically Scanned Array (AESA) radar technology at the moment, which is going to be a key determinant in buying the Indian Air Force's (IAF) 126 Multi Role Combat Aircraft (MRCA). Raytheon has offered to install it on either of the two US jets, the Boeing F-18 Super Hornet or the Lockheed Martin F-16, depending upon India's choice.

Other contenders in the race are also developing their AESA radars, promising mature technology by the time India buys them.

Raytheon officials say that as its AESA radar has no moving parts, it can be used for 10,000 to 15,000 hours, that is, 10 to 30 times more than older radars. The AESA units also function as messaging tools for communication between a number of aircraft, satellites, ships or ground control.

The Firefinder deal includes generators, trailers, communications equipment, logistic services, quality assurance, spare parts, publications and other programme support elements.

Indian Army Unsure About Arjun Tank's Role

The Indian Army seems unimpressed with the indigenously developed Arjun main battle tank (MBT) that has been 34 years in the making –– and is unsure about the role in which it can be deployed.

These are the conclusions that can be drawn by the remarks of the army chief, Gen. J.J. Singh, during a war game conducted in Rajasthan's Thar Desert at which limited numbers of the Arjun were seen in action.

'We have to make sure the troops are not exposed to any disadvantage,' Singh replied cryptically when asked about Arjun's performance during the five-day Exercise Ashwamedh April 29-May 3. A squadron of 14 Arjuns was deployed during the drill.

Singh was speaking to reporters here on the penultimate day of the exercise Wednesday. Pallu is located some 400 km from Rajasthan capital Jaipur.

'If improvements are required in the system, it will be pointed out (to the developers Defence Research and Development Organisation-DRDO),' the army chief maintained.

'We will draw lessons from the exercise on which area they (the Arjuns) can be best exploited,' he added.

While not officially going on record, the army is known to be extremely unhappy with the Arjun, having listed 14 defects that need to be rectified.

These include a deficient fire control system, inaccuracy of its guns, low speeds in tactical areas - principally deserts - and its inability to operate in temperatures over 50 degrees Celsius.

At a review meeting with the DRDO last month, Defence Minister A.K. Antony is known to have asked the organisation to get its act together to rectify these defects or the government might have to take another look at the entire programme.

Parliament's Standing Committee on Defence has, in two reports earlier this year, remarked adversely on the slow pace of Arjun's development and asked the DRDO to quicken the process.

The Indian Army laid down its qualitative requirement (QR) for the Arjun in 1972. In 1982, the DRDO had announced that the prototype was ready for field trials. However, the tank was publicly unveiled for the first time only in 1995.

Arjun was originally meant to be a 40-tonne tank with a 105 mm gun. It has now grown to a 50-tonne vehicle with a 120 mm gun.

The tank was meant to supplement and eventually replace the Soviet-era T-72 MBT that was first inducted in the early 1980s. However, delays in the Arjun project, and Pakistan's decision to purchase the T-80 from Ukraine, prompted India to order 310 T-90s, an upgraded version of the T-72, in 2001.

Of these, 186 were built at the Heavy Vehicles Factory at Avadi in Tamil Nadu. An agreement was also signed for the licensed production of another 1,000 T-90s.

With the Arjun development delayed still further, India last year signed a fresh contract with Russia to buy another 330 T-90s.

No Delay In Delivery Of Russian Aircraft Carrier –– Navy Chief

Dismissing reports that the delivery of Soviet-era aircraft carrier Admiral Gorshkov would be delayed, Indian Navy chief Admiral Sureesh Mehta Tuesday said the carrier would arrive in the Indian waters by 2008-end or early 2009.

'It is as per schedule. It may slip a few months here and there because of the climatic conditions at that time,' Admiral Mehta told reporters after a naval investiture ceremony at INS Kunjali-II, the naval helibase of the Western Naval Command, the sword arm of the Indian Navy, here.

The Russian aircraft carrier, which is to be renamed INS Vikramaditya, is undergoing refits at shipyards and some reports have indicated that the delivery may be delayed.

The delivery in time assumes importance since the existing carrier INS Viraat is ageing, while the carrier being built at Cochin Shipyard Ltd would take another four to five years to be rolled out.

Talking about fleet augmentation, the chief of naval staff said that as many as 34 ships are in different phases of construction at various shipyards.

Besides this, the navy has also asked for funds from the central government for placing orders and acquiring 40 more ships of different capabilities. It will take another 10 to 15 years for all these vessels to be commissioned.

'This is an ongoing process and we need to scrap certain ageing ships in the fleet to make way for the new ones. The objective is not to get bigger in terms of numbers but smarter in terms of our capabilities,' he said. Once Admiral Gorshkov arrives, it is expected to be stationed at the Karwar base on the Western seaboard because of the huge draft of the new ship.

This floating airfield, according to sources, will have a ski-jump, so that the Sea-Harriers as well as the MiG-29K can operate on board.

Indian Army To Receive 124 Arjun Tanks By 2009

The Indian Army will by 2009 receive the full complement of 124 Arjun main battle tanks it contracted for and designed and developed by country's defence scientists, parliament was informed Wednesday.

'Five tanks have already been handed over to the army in 2005 and nine more tanks are ready for delivery. The remaining quantity is expected to be delivered by 2009,' Defence Minister A.K. Antony said in a written reply in the Rajya Sabha.

The army had placed its Rs.17.60 billion order for the tanks in March 2000. The tank is being manufactured at the Heavy Vehicle Factory at Avadi near Tamil Nadu capital Chennai.

'All issues related to the production of Arjun have been resolved and the production is getting stabilized,' Antony said, adding: 'At present there is no proposal to take the cooperation of private sector as a joint venture.'

At the same time, the private sector is involved in the project as a supplier of various components and assemblies, the minister pointed out.

The Indian Army, however, seems to be unhappy with the tank, as was evident from remarks made last week by the army chief, Gen. J.J. Singh, during a war game at which Arjun was fielded for the first time.

'We have to make sure the troops are not exposed to any disadvantage,' Singh replied cryptically when asked about Arjun's performance during the five-day exercise codenamed Ashwamedh from April 29 to May 3. A squadron of 14 Arjuns was deployed during the drill.

'If improvements are required in the system, it will be pointed out (to the developers Defence Research and Development Organisation-DRDO),' the army chief maintained.

'We will draw lessons from the exercise on which area they (the Arjuns) can be best exploited,' he added.

While not officially going on record, the army is known to have listed 14 defects that need to be rectified.

These include a deficient fire control system, inaccuracy of its guns, low speeds in tactical areas - principally deserts - and its inability to operate in temperatures over 50 degrees Celsius.

At a review meeting with the DRDO last month, Defence Minister A.K. Antony is known to have asked the organisation to get its act together to rectify these defects or the government might have to take another look at the entire programme.

Parliament's Standing Committee on Defence has, in two reports earlier this year, remarked adversely on the slow pace of Arjun's development and asked the DRDO to quicken the process.

The Indian Army laid down its qualitative requirement (QR) for the Arjun in 1972. In 1982, the DRDO had announced that the prototype was ready for field trials. However, the tank was publicly unveiled for the first time only in 1995.

Arjun was originally meant to be a 40-tonne tank with a 105 mm gun. It has now grown to a 50-tonne vehicle with a 120 mm gun.

The tank was meant to supplement and eventually replace the Soviet-era T-72 MBT that was first inducted in the early 1980s. However, delays in the Arjun project, and Pakistan's decision to purchase the T-80 from Ukraine, prompted India to order 310 T-90s, an upgraded version of the T-72, in 2001.

Of these, 186 were built at the Heavy Vehicles Factory at Avadi. An agreement was also signed for the licensed production of another 1,000 T-90s.

With the Arjun development delayed still further, India last year signed a fresh contract with Russia to buy another 330 T-90s.

The Tatas and Larsen & Toubro are in the race for a $400 million (Rs 1,640 crore) contract from the defence ministry to modernise the 155 mm Bofors Howitzers, according to sources familiar with the matter. This is the first major contract being offered to private players after defence production was opened to them in 2002.

The defence ministry was expected to issue a request for proposal for the modernisation of 300 Bofors guns soon, the sources said. "The blue print for the modernisation will be presented before the defence ministry by September 2007. Prototype equipment will be ready for field trials by the end of this year," said an L&T executive on the condition of anonymity .

Tata Power's strategic electronic division will tie up with the Ordinance Factory Board (OFB) and bid for the contract, while L&T may join hands with foreign players for a technological tie-up.

The project includes replacing the barrel with an enlarged one, strengthening the undercarriage and integrating the entire weapons system to provide enhanced range and accuracy .

"We are working with the OFB. Once the ministry issues the request for proposal, we will present our proposals and be ready for field trials," a Tata Power executive said.

The electronics division of Tata Power has recently bagged a Rs 200 crore contract from the defence ministry for producing the multi-barrel rocket launcher, Pinaka, for the army. The divi sion is engaged in design, production and supply of indigenous weapons and supporting systems.

"There will be ‘no-cost, nocommitment’ trials. This may be in September or October. Then there will be a bidding process," the L&T executive said.

L&T supplies weapons platforms, naval systems and equipment, composites and electronic warfare gear to the armed forces. The company also supplies sub-assemblies to Canadian aero-engine maker Pratt & Whitney It has tied up with Elec . tronic and Radar Development Establishment of the DRDO to build radars for the army and air force.

Israel's Elbit and UK's BAe Systems are the two foreign players in the race to upgrade the guns.

After defence production was opened to private players in 2002, companies that have licences for defence production are entitled to bid for contracts along with public-sector defence undertakings. The ministry has also made it mandatory for foreign military contractors supplying weapons systems to source parts and components worth 30 per cent of the deal size from Indian companies.

In 1987, India had planned to purchase 1,500 Bofors guns but due to the infamous scandal involving middlemen in the purchase, the order was restricted to 420, of which about 325 are operational. The army is now planning to buy 1,500 155 mm Howitzers for $2 billion. A fresh round of howitzer trials is expected later this year.

Tata Power’s strategic electronic division will tie up with the Ordinance Factory Board (OFB) and bid for the contract, while L&T may join hands with foreign players for a technological tie-up The project includes replacing the barrel with an enlarged one, strengthening the undercarriage and integrating the entire weapons system to provide enhanced range and accuracy

India's Defence Imports To Reach $30bn By 2012

India's import of military hardware and software is all set to reach $30 billion within the next five years as its armed forces lap up major defence deals, said a leading industry body.

India's defence imports would also be propelled as it signs up big deals to acquire multi-role fighter jets, a variety of copters and long-range maritime spy aircraft, according to study - Avenues for Private Sector Participation in Defence - done by the Associated Chambers of Commerce and Industry (Assocham).

"Indian military budget was about $20 billion in the last fiscal (2006-07) and is expected to grow seven per cent annually over the next five years," Assocham President Venugopal N Dhoot, said in a statement.

"The country's military spending amounts to roughly two percent of GDP (gross domestic product), which is without accounting for expenditure on defence pensions, paramilitary forces and defence ministry itself as part of budgeted defence expenditure," Dhoot added.

The industry body has also recommended for private sector participation in all defence related deals and imports.

"Defence ministry's targets of achieving 70 percent self reliance in defence production 10 years ago has fallen short of the target by 40 percent, as only 30 percent defence production has become self reliant till now," Assocham said.

"The year 2001 witnessed the first step in this regard as the entry of foreign private players was permitted with 26 percent FDI being allowed in the sector," it added.

The study has also recommended outsourcing for many defence activities to the domestic private sector, pointing out that the defence ministry in recent years had made some attempts towards outsourcing and private procurement to bring in greater efficiency and optimal utilisation of available budgets.

Israeli Company Lowest Bidder For IAF Radars

An Israeli company is the lowest bidder for procurement of some radars for the Indian Air Force, Defence Minister A.K. Antony told parliament Wednesday.

'M/s ELTA, Israel is the lowest bidder in response to a Request for Proposal (RFP) issued for procurement of some radars for the IAF,' Antony told Rajya Sabha.

'However, no contract has been signed with the firm,' the minister said in a written reply to a question by Rajya Sabha MP Shobhana Bhartia.

Antony also stressed that defence procurements were done 'as per laid down procedures'.

Defence purchases from Israel during 2002-07 have been over $5 billion, the minister said.

The minister's statement comes a day after India and Israel held the 10th round of foreign office consultations in Tel Aviv. The two sides discussed a wide range of bilateral, multilateral and regional issues and ways to expand trade and economic relations between them.

'Ideas for further enhancing bilateral relations in fields such as economy and commerce, agriculture, culture, science, with particular emphasis on intensifying people to people contacts were discussed,' the external affairs ministry said here in a statement.

N. Ravi, secretary (east) in the external affairs ministry, led the Indian delegation during the talks.

The Israeli delegation was headed by Amos Nadai, deputy director general, Ministry of Foreign Affairs.

The 10th round of talks coincided with the 15th anniversary of full diplomatic relations between India and Israel.

India To Buy 350 Main Battle Tanks From Russia

India is to buy around 350 T-90S main battle tanks from Russia under a deal to be inked in autumn this year, according to a top military official in Moscow.

"The contract for their delivery will be signed in autumn this year, although it was initially to be signed this month," Chief of the Russian Defence Ministry's mechanised armoured department, Colonel-General Vladislav Polonsky, was quoted as saying by ITAR-TASS.

According to General Polonsky, like in the case of previously executed contract for the sale of 300 T-90S, the new deal would also be completed within 3-4 years.

"As a result of the tank deals, India will have two divisions fully equipped with latest Russian T-90 tanks," Gen Polonsky said

India, Russia To Sign Mig-29 Revamp Deal Next Month

MOSCOW: A multi-million dollar Indo-Russian deal for the modernisation of MiG-29 fighters of the Indian Air Force is expected to be inked next month.

"The contract stipulates the modernisation of 64 MiG-29 fighters, including eight fighter-trainers," Interfax Military News Agency reported quoting defence industry sources.

"Due to change of leadership at the Indian Defence Ministry the deal could not be signed earlier, but now it would be signed by the end of next month," the report said.

In the course of modernisation, the Indian fighters would be equipped with new "Zhuk-ME" radars capable of engaging several targets simultaneously.

The modernisation contract will run into "several hundred million dollars" and the lifecycle of the upgraded MiG-29 fighters would be extended from current 25 to 40 years.

Upgradation of first two prototypes of MiG-29 fighters would be carried out in Russia, while rest would be modernised at Hindustan Aeronautics Limited (HAL) facilities at Ojhar near Nasik by 2010. 

Problems In Russian Aircraft Carrier Deal –– Antony

(Only the other day the CNS had stated that there would be no delay in commissioning the Vikramaditya? -- Ed.)

Admitting to 'problems' in the acquisition of Russian-built aircraft carrier Admiral Gorshkov for the Indian Navy, Defence Minister A.K. Antony said Saturday that efforts were being made to sort them out.

'There are problems. We are trying to sort them out,' Antony cryptically told reporters on the sidelines of a function in this suburban town where he inaugurated a defence research laboratory set up by Bharat Electronics.

He was responding to queries on the delay in inducting the aircraft carrier, renamed INS Vikramaditya, caused by Russia's reported insistence on raising the $1.5 billion price tag for the vessel, and also that the money be paid in euros and not dollars as had previously been agreed to.

Indian Navy chief Admiral Sureesh Mehta has repeatedly been stating that the vessel would be inducted by the end of this year or early next year as had originally been planned. However, Antony's statement Saturday makes it clear that the deadline would not be met.

The defence minister refused to specify what the 'problems' were and when the issue would be resolved.

Defence Secretary Shekhar Dutt had made a hurried visit to Russia last month to discuss the issue but no common ground could be found either on the Gorshkov deal or on that for the purchase of additional Sukhoi SU-30MKI combat jets for the Indian Air Force (IAF), the price of which the Russians have also hiked.

A high-level Russian delegation is expected here later this month for discussing the price issue but defence analysts pointed out that given the firm stance of both sides, a way out could perhaps be found only when Antony makes a planned visit to Russia in October.

The Gorshkov, in fact, has been mired in controversy almost from the time she was commissioned into the then Soviet Navy in 1987.

Gorshkov is one of four carriers the Soviet Union built at the height of the Cold War. The first three, the Kiev, Minsk and Novorossyisk saw operational service in the Soviet Navy during the late 1970s and the 1980s. With the end of the Cold War, the Russians could no longer sustain a fleet with so many carriers and all three were sold for scrap in the early 1990s.

Gorshkov, earlier called the Baku, was the last to he completed and did not become operational until 1986. However, her operational career was cut short when a devastating fire crippled the vessel in 1994. Although repaired, Gorshkov never saw operational service in the Russian Navy and was finally mothballed in 1996.

By that time, the Indian Navy had been reduced to just one carrier, with INS Vikrant having been retired and INS Viraat undergoing repeated refits to enhance her operational life.

After protracted negotiations, India and Russia on Jan 20, 2004, signed a deal to buy the Gorshkov, along with 12 single-seat MiG-29 fighters and four twin-seat MiG-29 trainers for $1.5 billion.

Of this, approximately $800 was to be spent on upgrading and refitting the ship and $700 million on the 16 MiG-29 jets and six Kamov Ka-31 attack and reconnaissance anti-submarine helicopters.

The upgrade plans involve stripping the ship's foredeck of all its weaponry to make way for short take-off and assisted recovery configuration with a 14.3 degree ski-jump on the bow and three arrestor wires on the angled deck.

India To Float Its Biggest Ever Defence Tender By Month-End

India is poised to float its biggest ever international defence tender for the purchase of 126 multi-role combat aircraft by early next month in a bid to shore up its dwindling fighter strength.

Indicating this, Defence Minister A K Antony said the Defence Acquisition Committee (DAC) would meet in the Capital in another 15 days to clear the floating of the Request For Proposals (RFP).

India is going in for purchase of these aircraft to shore up its fighter squadron strength, which in recent years has fallen to the lowest-ever level of 32 squadrons from the sanctioned 45 squadrons.

"The DAC will be meeting within a fortnight and decide on the RFP. All negotiations are over and now it is a question of formalities," the minister told reporters, emerging after addressing the Combined Commanders conference, where the issue figured prominently.

Six aviation majors are bidding for the Indian deal, which according to defence experts could run up to anything between $six to eight billion.

Among the bidders are US aircraft manufacturers Lockheed Martin and Boeing, European consortium with its Eurofighter, Sweden's SAAB with its Grippen fighter, Dassault Aviation's with its Rafale and the Russian Mig 35.

DRDO Signs MOU On Information Technology With NASSCOM
Defence Research and Development Organisation (DRDO) of the Ministry of Defence has signed a Memorandum of Understanding (MoU) with National Association of Software and Service Companies (NASSCOM), the premier chamber of commerce for software and services in India to strengthen cooperation and increase collaboration between the Indian IT industry and DRDO.
This MoU is an initiative to further innovation and the development of Intellectual Property in the domestic market in India. The MoU will help establish a successful working relationship between DRDO and the Indian IT industry and will advance issues of mutual interest. This initiative will also strengthen cooperation for enabling a long-term involvement of IT software companies in DRDO’s development projects.
Speaking on the occasion Shri M Natrajan, Director General Defence R&D said DRDO has taken a lot of initiatives for promoting increased partnership of private sector industry in the development of major systems. He said ‘as the modern military systems are becoming increasingly software intensive, we are keen to workout a long-term strategic arrangement with NASSCOM to enable Indian IT industry to partner DRDO labs in various software development activities mainly related to systems like Radars, Electronic Warfare Systems, Sonars, Flight Control, Avionics, Missile Systems, Command and Control Systems, Communication System etc’. Shri Natrajan said the MoU seeks to facilitate defining long term strategic partnership with IT industry and to take further actions for finalizing methodologies for its effective implementation.
Shri Kiran Karnik, President NASSCOM said creating upstream linkages with the Indian R&D institutions is a key part of NASSCOM’s focus on developing India’s innovation eco-system. He said DRDO has been responsible for developing a number of leading technologies in multi-focus areas spanning across aero-space, control systems, communication etc. which makes it the obvious choice for such a partnership. Shri Karnik said through this MoU the DRDO-IT industry partnership could liverage the experience and best practices gained through these engagements.

Defence Minister Inaugurates New Facilites for R&D At BEL Ghaziabad

Following is the text of the speech delivered by the Defence Minister Shri A K Antony at the inauguration of New Facilities for R&D at Ghaziabad unit of Bharat Electronics Limited (BEL):

“It is a well-known fact that the establishment of defence industry base in India dates back to the 19th century. The expansion of defence industries has really taken place after independence. Today, we have eight Defence Public Sector Undertakings, apart from a chain of 39 Ordnance Factories. Research & Development is one of the most crucial components of our defence industry. The Armed Forces, the industry, and various Research & Development establishments must join hands and work in close coordination to enable our nation to become strong and self-reliant.

The involvement of private industry in this sector has been growing over the years. The private industry continues to be the main source of supply of raw materials and components to the DPSUs and OFs. In May 2001, subject to licensing,- the Government had allowed the private sector to participate in defence production. We have issued guidelines for grant of licenses also. I understand that about 30 licenses have been issued so far.

The Government is indeed committed to ensure that resources do not become a constraint in providing the best equipment to our Armed Forces. However, we want to meet our defence requirements from indigenous sources, as far as possible. Companies like BEL & HAL have done good work and I hope that they will continue to do better. However, companies like BEL need to step out of the protected environment and carve out a niche for themselves in the competitive market. Even for defence supplies, there will be many competitors within India coming up with production of sophisticated items, largely in collaboration with foreign partners.

I have been told that recently, in a few cases, BEL has been able to win contracts in MoD in a multi-vendor situation. This is creditable, but I believe that the price quoted was much lower than the estimate made by Ministry of Defence. This clearly indicates that the process of nomination does not necessarily lead to a correct price discovery. BEL has been gaining contracts on a nomination basis and in such cases, it is necessary that the price is reasonable. Therefore, BEL should quote the best price it can offer to the Government. The recent cases of competitive bidding do indicate that BEL can certainly cut edges and reduce prices significantly. I hope that rigorous costing exercises are taken up, so that in case there is a nomination, the price quoted by BEL can be appropriately assessed.

BEL has been investing significantly in R&D, which has enriched its overall technological base. It has been successful in developing new products on its own — as well as in collaboration with DRDO. In this age, when Research and Development is a key engine for economic growth and development, the impact of globalization demands increased responsiveness to meet threats to national security. R&D increases technological competitiveness and enhances capabilities for economic growth. Hence, it is imperative that our defence production industries modernize rapidly to match the changing needs.

The Armed Forces of any nation want to induct the most sophisticated defence equipment. At times, this cannot be achieved due to budgetary constraints and technology denial regimes. Further, increased reliance on imported weapons and systems exposes the country to the possibility of sudden cessation of supplies during critical stages.

Therefore, our efforts have been focused towards promoting indigenous R&D. We are also evolving procurement procedures to encourage indigenous industry - both in the public and private sectors to enable them to play a larger role in meeting the defence needs of the country. The Ministry has promulgated a procedure for acquisition of products categorized as “make”. This requires higher responsibilities and demand for greater investment in R&D.

The implementation of the offset policy in the Defence Procurement Procedure will provide more opportunities to our domestic defence industry to seek foreign investment and technology transfers. The entry of Raksha Udyog Ratnas into the field of Defence Production will infuse competition from the private sector into this field. I am sure that Defence PSUs like BEL will gear themselves up and enhance their competitiveness in the light of these new policies.

Most of the equipment used by the Armed Forces is technology intensive and thus, demands large investments in R&D, as well as in the creation of test facilities and immense human resources. The investment in setting up such facilities enables production of state-of-the-art high technology defence equipment.

Over the years, BEL has continuously strived to contribute towards self-reliance in the vital field of defence electronics. I am sure that it will strive to achieve a higher market share in today’s competitive world. The Near Field Antenna Development and Test Facility inaugurated today provides a development and testing platform for the Phased Array Antenna, which is the most essential and major part of modern-day radars. This facility is undoubtedly a step towards self-reliance in the field of modern radar systems.

I congratulate the management of BEL on the occasion of the inauguration of Central Research Laboratory and the Near Field Antenna Development and Test Facility. I am sure that BEL and other players in the public and private sector will work in tandem to help the nation meet its defence requirements indigenously, as well as achieve total self-reliance.”

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