INDIA
DEFENCE CONSULTANTS
WHAT'S HOT?
––
ANALYSIS OF
RECENT HAPPENINGS |
PRIVATE PARTICIPATION IN DEFENCE INDUSTRY An IDC Analysis
|
New
Delhi, 09 December 2001 The
Indian Navy knows it has a friend in George Fernandes and he is back in
the saddle in the MOD. He has been very vocal in his support for the
Cinderella service after he surreptitiously sacked CNS Vishnu Bhagwat on
30 December 1998, almost as if to atone for his actions, and that bodes
well for our men in white and the nation. The results are now showing
after years of neglect. Fernandes’s socialist leanings and anti US
stances of yore, have also contributed to a revised relationship with the
Russians and matters have moved ahead on Indo-Russian defence
collaborations. He had also initiated a fast track regime at high level in
the Inter Governmental Commission. It is the nimble Indian Navy that has
gained the most and it has a very ambitious yet balanced template for its
future programmes largely based on Russian support for its ships, aircraft
and submarines. The recent war on terror has also stressed the need for
maritime ability as reliance on the seas for resources and mobility has
also increased. The Navy
therefore celebrated 4 December this year as its NAVY DAY on a definite
high, with over 14% of the Defence budget in its kitty. With manpower
accounting for only 6%, the Navy can concentrate on capital spending for
acquisitions. It was this day in 1971 when the killer Missile boats
supplied by the Soviet Union were employed ingeniously to damage the oil
tanks at Kemari and sink two ships off Karachi. The Navy also throttled
the Eastern flank of Pakistan in what is now Bangladesh. Benazir
Bhutto recently on a visit to Delhi had admitted it was the atrocities of
the Pakistani military under General Ayub Khan that led to the break up of
Pakistan and the nation knows the contribution of the Indian Navy in that
war. It was the Soviet supplied equipment that carried the day for the
Navy's brilliant performance and much credit on this day must also go to
late Admiral of the Fleet Sergei Gorshkov the builder of the Russian Navy,
who was kind to the Indian Navy and supplied ships and equipment over and
above the call of the signed MOUs. He
visited India three times and offered his advice and experience and his
motto was that the Indian Navy should ask, and he would deliver, at times
from the operational inventory of his own Navy. He truly appreciated the
professionalism of the Indian Navy and helped build the massive
Vishakapatnam Naval Dockyard hoping that one day the Soviet Navy could
seek warm waters there. I recall as his liaison officer three times over,
he recommended Bimlipatnam as the Naval base as Vishakapatnam’s narrow
entrance can easily be blocked by just one ship and that can hamper
operations. At that
time the Navy could not afford that luxury, but now the Navy is building a
naval base called ‘Project Seabird’, located near Karwar on the West
Coast and contractors like Larsen & Tubro and J M Baxi are the gainers
in the first phase of construction. Phase two will be even bigger with
construction of the jetties and syncro lift facilities. Today
India still owes $3 billion to Russia for the Missile boats, 8 Petyas, 5
Kashin (Rajput) class ships, 16 Submarines, Minesweepers, Kamov
helicopters and IL38s and TU 142s and other equipment that was supplied on
easy and long payment terms. Russia is now obliged to import Rupees 3000
crores worth of goods from India annually in settlement and they are
getting wiser now to demand market prices as opposed to friendship prices,
as the Defence Secretary put it. This is the challenge and there is a
rethink to go in for collaborations to offset the costs. This augurs well
for Indian industry as the Defence Ministry plans to open up the sector
and CII have been working hard at it.
The naval experience in this regard is worthy of emulation. Since new
relations of equality beyond the iron curtain in defence cooperation is on
the cards, the recent visit of PM Vajpayee to Moscow on 4th
November along with Brajesh Misra and Defence Secretary Yogendra Narain
saw many more understandings. These could include the acquisition of the
badly needed aircraft carrier Gorshkov and the MIG 29Ks and Ka 31 AEW
helicopters with Indian components for which an MOU was signed some years
ago. The lease of a Schkuka 2 nuclear submarine is also on the cards to
enable the Indian Navy to assist the DRDO in completing the ATV project on
which some Rs 1200 crores have already been spent and a huge
infrastructure established. Industry
is full involved with BHEL for supplying the boilers, tubing and heat
exchangers, Mazagon Docks and Larsen & Tubro supplying the
modules for final welding at the ship building facility at Vishakapatnam
and Tata Consultacy and others supplying other services and special metals
and welding equipment. BEL is supplying the electronics. When the project
succeeds India will be the sixth country to have mastered nuclear
submarine construction. It is the epitome of shipbuilding. Indo-Russian
defence collaboration in industry is looking up and the
plans include production of the BrahMos long range cruse missiles ––
even for export –– for fitment on land vehicles, ships and aircraft.
The first launch was successfully carried out at Balasore earlier this
year. Recently Larsen & Tubro
assisted the Navy and DRDO in the stabilization platform for the Dhanush (Prithvi)
version to be successfully
fired from an OPV. The Army is slated to assemble 176 T 90 Tanks in India
and the IAF is to get the HAL to assemble the 140 SU 30s and there can be
greater Indian industry participation if secrecy clauses are eased. The experience of the Navy needs to
be highlighted. It is the silent service, which helped itself to cooperate
with the DRDO and shipyards and civilian firms to ensure deliveries of its
platforms. The now elongated
Leander programme of the Indian Navy to build ships at Mazagon docks
heralded a host of vendors and suppliers for valves and associated
equipment. Leader of Punjab took on the gauntlet and many switch boards,
generators, lights and battery producers became suppliers to the Warship
Production Agency. For Electronics, the Navy decided
to set up its own mini R
& D agency under NHQ called WEESE (Weapons Engineering and Electronics
System Engineering). It has done pioneering work on the busbar design to
amalgamate western and Russian weapon systems successfully at low costs.
It has helped the Navy select equipment and designed the EMKA command and
control system amongst others. The team of M Tech graduate officers of
high calibre were also sent abroad for training and the exposure helped. The Navy’s ship design team has
shown it prowess, again in collaboration with the Severnoie Design bureau
of Russia and come of age to design the Delhi class and India’s first
aircraft carrier to be built at Cochin shipyard. Model tests abroad have
been successful. The Navy has also helped the NSTL
DRDO lab and Bharat Electronics to supply Sonars to its ships. It is now
set to make the Mihir sonar for the ALH and Nagin for surface ships, which
could have export potential. A civilian firm has also exported large
submarine batteries to Algeria. The potential to go further exists. There are therefore imperatives now
for the defence industry to be opened up to private initiative as it now
has the infrastructure, technology can be bought with partners being
brought in, and the monopoly of the hugely expensive defence public
sector, with high administrative and social costs, needs to be slowly
weaned away and left to concentrate on a few strategic sectors. In the way ahead the examples of
the Navy are worth emulating. Many of these were recently highlighted at
the USI in the annual National Security Seminar. This can be considered as
the Navy’s present to the nation as we hail our men in white on their
birthday. |