| New
            Delhi, 24 April 2002
            
            
            
            
            
            
            
            
             
            
            
              
            
             The
            military industrial capability is impressive but the mindset is
            missing!
            
             The
            21st Century and the Information Revolution have truly
            dawned together. Learning from the lessons of the Gulf war, Op
            Enduring Freedom and our own Kargil war, the Indian Armed Forces
            realise that the computing power of weapon systems, UAVs (Army and
            Air Force operate the Israeli Searcher and the Navy has ordered it)
            and Cruise missiles, hold many keys to newer and more accurate
            methods of combat with least loss of life. This message has not been
            lost on mid level officers especially in the Navy and the Air Force
            and they know India, with latent strengths in information
            technology, has the potential to benefit, as this strength can be
            married with foreign experience, who are hungry for collaborations. 
            
             The
            BRAHMOS experiment was a one off trial by DRDO, but why not open up
            the market to others, now that US sanctions are off. However most
            officers in uniform also know that bureaucrats and politicians and
            to a large extent the aged senior officers (retirement age of Chiefs
            is 62 now) with little exposure to the newer systems –– have an
            old mindset and on top of that the inter-services rivalry skews the
            decision-making. 
            
             The
            experiences of the Kargil war have highlighted the need to modernise
            and employ advanced technological equipment and systems to gain
            success even during peace-time, but the Armed Forces are engaged in
            a futile proxy war with Pakistan which claims lives and no one seems
            to mind. 
            
             India
            has a healthy defence budget of $14 billion, which is 2.8% of
            the GNP and last year MOD could not spend over $1billion because of
            the dilatory and preferential system being followed. It may be noted
            that pensions, nuclear and space applications for defence are
            provided for separately under the PMO, hence there is more money in
            the kitty. 
            
             The
            opening up of the auto industry has shown that the day can come when
            foreign defence companies especially from Israel, South Africa,
            France and Russia may be tempted to invest in India –– if the
            Government encourages transparency in publicising India's defence
            needs. Today the approach is sectoral and Israel has become the
            second largest supplier thus milking India. The CAG report has shown
            how secretive and how arbitrary the defence purchases have been. As
            an example, the cost of the Barak missile system at $40 million per
            set is a scream, now that Raytheon has shown that 8 AN/TPQS Fire
            Finder radars can be bought from USA for $146 m. It is cheaper than
            Ukraine's offer, even though it is under Foreign Military Sales
            (FMS) rules, which in the past the Indian mindset had opposed. For
            obvious reasons they wished to deal directly with firms. The whole
            approach was exposed by the Tehelka scam. 
            
             While
            the path is being paved by globalisation and liberalisation in the
            consumer goods sector and inflation is down, the military sector is
            getting even tighter with the Defence PSUs going on strike while the
            Army stands mobilised. DRDO, the arm that was set up to deliver
            latest equipment has mostly concentrated to reinvent the wheel, with
            laboratories all over the country manned by under-qualified staff.
            No one has audited their performance and when Admiral Vishnu Bhagwat
            tried to question it, he was sacked. Even after defence agents were
            legalised, is it not surprising that no one has come forward to be
            registered as defence Agents? The rules framed are draconian and yet
            names are whispered loudly.
            
             The
            only major indigenous DRDO programmes that succeeded were in the
            field of missiles like AGNI, because the Russians gave unstinting
            support to ISRO for the PSLV, GSLV and the cryogenic engines. The
            other success story was Sonars for the Navy, because the Navy helped
            itself –– it has its own R & D unit –– the WEESE. In
            contrast the Arjun MBT, LCA, ALH and ATV programmes are all
            struggling. 
            
             IDC
            have been alluding to foreign collaborations which may be easily
            available to get such projects consummated, but that will require a
            new mindset. Otherwise mistakes will continue to plague us ––
            like the AVRO 748, that DRDO's CAB tried to convert into an AWACS
            but only succeeded in crashing it, with experienced staff on board
            and the ALH engine and gear box problems, and such. The Armed Forces
            will, of course, accept what is provided by DRDO in the same spirit
            as they have accepted decisions like the CDS concept without a CDS.
            It is the mindset.
            
             The
            challenge is to translate India’s defence sector with
            collaborations and use the powerful computing programmes, latest
            electronics, CAD, CAM and such tools that are now universally
            available. Infosys, TCS and WIPRO who have defence contracts have
            displayed this ability. These same tools were also successfully
            employed in India’s nuclear tests and space and missile programmes
            by ISRO, BARC and DRDO. 
            
             One
            can therefore state with a modicum of confidence that India’s
            defence industries will come of age in the next decade ––
            provided the leaders stop hiding behind the antiquated Official
            Secrets Act of 1927. They need to display confidence in opening up
            the sector to private participation and permit the Government owned
            units freedom to collaborate with nations willing to do so in
            defence technology for mutual benefit. 
            
             In
            the 1990s, Singapore was willing to invest in joint efforts with
            India's DRDO to produce the multimode radar for the LCA but India
            was not willing. More recently an A50 AWACS from Russia was taken on
            lease and to study its sub systems for reverse engineering, but an
            order is still to be placed. A number of SAM missiles, naval
            torpedoes and army projects are ready to take off, if assisted by
            foreign expertise and collaboration of experienced companies, but
            bureaucratic resistance, vested interests, interference and frequent
            changes in QRs by the Services themselves, have ensured that
            projects have languished. This has encouraged lobbies to pitch for
            imports and stall home grown projects.
            
             The
            Government’s military industrial tentacles are spread widely.
            There are 39 ordnance factories, some of them top of the line,
            controlled by the Ministry of Defence. Next are 5 healthy and well
            equipped but poorly managed public sector shipyards (Mazagon Dock,
            Garden Reach and Goa Shipyard of MOD and VSL and CSL of Ministry of
            Shipping). The widely spread aviation units of HAL and electronic
            manufacturing units of BEL, the vast array of 50 well equipped DRDO
            laboratories and a growing civil sector that now contributes to the
            $3 billion procurement programme annually. Mr Rajagopal a former
            Chairman of the Ordnance Factory Board, recently stated that the
            155mm Howitzer ammunition produced in India was superior to that
            supplied by Bofors, and India was self sufficient in ammunition. A
            US firm Day and Zimmerman supplied the ammunition plant just before
            sanctions were imposed. However all these units have little liberty
            to take commercial decisions or even quote prices without reference
            to New Delhi's MOD mandarins. 
            
             It
            is time to take stock and survey the Indian military industrial
            scene. A re look is required of the technological inputs, the
            commercially viable manufacturing processes to produce weapons and
            systems of the high standards that the Armed Forces demand. It needs
            a change in the mindset. The will to change is lacking in many areas
            but a growing trend is emerging to recognise this infirmity
            especially as India is a nuclear power now. Today base technology
            can be bought and improved upon. BARC, which has successfully
            manufactured the Atom and Hydrogen bombs and many civil firms are
            well endowed with the state-of-art facilities. A survey of these is
            revealing beginning with the Government assets 
            
             Nuclear
            Capacity
            
             The
            Bhaba Atomic Research Centre (BARC) near Mumbai has pursued bomb
            making since the 1960s and successive Prime Ministers have secretly
            funded it. BARC controls the Kalpakkam Reactor at Chennai for the
            Nuclear Submarine Project, Plutonium Processing Plant at Trombay and
            a Rare Metals Unit near Mysore that produces Uranium. The technical
            knowledge of the scientists coupled with support from DRDL Midhani
            and Terminal Ballistics Research Laboratory (TBRL) Chandigarh,
            produced the chemical explosives, detonators, lenses, the nuclear
            trigger and the bomb shell casings for the Pokhran-II explosions in
            May 1999. India has its nuclear arsenal at BARC in readiness.
            However India is still looking to Russia to execute and build the
            Kondakulum Nuclear Mega project and there are 90,000 tons of
            equipment for Atomic Energy Commission to bring and that is the way
            to go.
            
             Aeronautics
            
             In
            the 1950s, Bangalore born Dr Kurt Tank designed the fine HF 24 at
            Hindustan Aeronautics Ltd but the lack of a supporting engine
            throttled the programme. Western pressures to cut off technology and
            India's over enthusiastic zeal to design a fly by wire unstable
            machine by itself is holding up the LCA. Yet the facilities at
            HAL’s eight units spread all over India have manufactured the MIG
            27, Dornier-228, and HPT jet trainers with collaboration and SU-30
            Mk I is the next project. The National Aeronautical Laboratory (NAL)
            at Bangalore has some of the latest computers and is a treasure
            house of aviation research, which could handle any 3-D Euler and
            Reynolds averaged Navier Stokes equations in the 1980s. India cannot
            go it alone in its huge aviation projects for long. 
            
             Turbines
            and Engines
            
             The
            Indian Navy at its dockyards has excellent Gas Turbine maintenance
            facilities while the Gas Turbine Research Establishment at Bangalore
            is in the final stages of producing the GX-35 US Kaveri engine for
            the LCA, which even if successful may not get certification and the
            project will have to COMSIM i.e. computer simulation again as at
            present the GE 404 is being used for all computations. There is no
            dearth of personnel trained in GTs as the IN gets all set to induct
            the GE LM 2500 cleared by USA for its Project 17A frigates. In this
            field collaborations need to be allowed with ease like the Navy did
            for the Pielstick engines.
            
             Materials
            aqnd Metallurgrgical Products
            
             The
            Mishra Dhatu Nigam a PSU at Hyderabad under the Ministry of Defence
            and the Defence Metallurgical Research Laboratory (DMRL) of the DRDO
            have produced special metals and alloys including molybdenum
            technologies. DRDO units now are experts at Carbon technology that
            is fitted in the Agni and Prithvi missiles whose nose cones have to
            bear temperatures of 30,000º C when the missiles
            re-enter the atmosphere. The Units have imported the latest textile
            machines to weave the Carbon and other machines to fill the
            graphite, again spin offs of the nuclear and space programme.
            Foreign collaboration will help sales worldwide and IDC learn that
            Israel is negotiating.
            
             Naval
            Technology
            
             The
            Naval Physical and Oceanography Lab (NPOL) has successfully produced
            advanced sonars while the Naval Science and Technology Lab (NSTL)
            has manufactured decoys, torpedoes and mines. The Navy has inhouse
            expertise in ship design, weapons electronics systems engineering (WEESE)
            and the Naval dockyards are capable of maintaining the latest
            systems and submarines. The ATV project has another dimension of
            knowledge for the nuclear reactor and submarine building. The
            Mazagon Dock and Goa shipyards have capacity to turn out ships
            faster, if collaborations are entered into with South Eastern and
            Middle Eastern countries. Labour costs are cheap in India. The
            mindset and openness is the way to go.
            
             SPACE–ISRO
            
             The
            launching facilities of ISRO and the Vikram Sarabhai Space Centre
            have time and again proved that India is capable of successfully
            producing solid fuel rocket motors and launching space vehicles.
            ISRO bought off-the-shelf equipment from abroad. In fact, USA’s
            attempt to embargo Russia's sale of cryogenic engines to India
            speeded up the solid fuel technology. The DRDO has gained from the
            ISRO experience. 
            
             Weapons
            Systems–SPACE 
            
             The
            Combat Vehicles R&D establishment at Avadi that manufactures the
            T-72 and Arjun tanks, the Defence R & D Laboratory (DRDL)
            Hyderabad manufactures the Agni IRBM, the Trishul and Akash SAM
            systems, are all in their final stages of development. These have
            from time to time received help from India’s Space Agency ––
            ISRO which can truly boast of being among the top six in the world
            with a talented pool of scientists. If they also seek collaborations
            exports can be in their reach.
            
             Civil
            Industry 
            
             In
            any defence project the Government has a big stake and therefore, in
            every country subsidies are given to firms to explore local
            manufacture. In richer countries two or more firms are asked to
            compete as is the case in the Joint Strike Fighter programme. In
            Europe, production is being shared between nations. In India, the
            Navy set up a warship building project team in the 1970s under the
            Director General Quality Assurance, DGQA and civil firms made good
            progress, but subsidies were given selectively. Civil Industries for
            Defence in India were initially encouraged and permitted to foray
            into just a few items but the progress was good. The Leander project
            saw Walchand Industries manufacture the shafting, a valve maker from
            Ludhiana –– Leader made excellent valves and other ancillary
            suppliers supplied switch boards, fire fighting equipment and
            lifting gear –– boilers were made locally by a Babcock and
            Wilcox licensee, the Bharat Heavy Electricals with its plants at
            Bhopal and Hyderabad produced the turbines. Bharat Electricals Ltd
            at Bangalore went into collaboration with Signaal of Holland and
            supplied C, L and X band radars and forayed into fire control
            equipment, including equipment for the Army and Air Force with
            communication companies like Racal. Hindustan Aeronautics supplied
            the air blowers and UHF radio equipment. 
            
             The
            scene was beginning to look good but the orders were not
            economically viable for the firms to sustain production lines. By
            late 1970’s the Soviet Union became the main supplier of ships
            (submarines, Petyas, Kashins, Minesweepers and Missile Boats) and
            aircraft. Collaborating with the Russians proved difficult with
            language and other finance related barriers. Then came a period
            where only small items were given out under the indigenisation
            programme. It was only in the mid 1990’s after the collapse of the
            Soviet Union that the Armed Forces and the Confederation of Indian
            Industries got together to encourage defence production by civil
            firms. Today many civil firms have excellent facilities to support
            the Armed Forces. Clutch Auto supplies clutch assemblies for the
            tanks, Larsen and Tubro is engaged in making helicopter harpoon
            decks, reactors for the ATV (nuclear submarine project), structurals
            and electronic equipment. Small firms like High Energy Batteries at
            Chennai have successfully produced indigenous silver zinc batteries
            for the A 244 Motofed Whitefield Italian torpedoes , and Silver
            Chloride Magnesium batteries for the Naval Science and Technological
            laboratory at Vizag engaged in upgrading the Russian CET torpedoes.
            Standard Batteries have very successfully provided large batteries
            for the Russian Kilo and Foxtrot Class Submarines and bagged exports
            orders from Algeria, again proving capability. ECIL produces a wide
            range of fuses, Kirloskars a private firm produces the Pielstick
            engines. A vehicle maker Mahindra & Mahindra has collaborated
            with with Plasan Sasa of South Africa to make armoured vehicles. 
            
             Of
            late, the Army and the Air Force have also taken to indigenisation
            seriously but relied heavily on the Government owned Ordnance
            Factories, DRDO and Hindustan Aeronautics in the case of the Air
            Force. The main reason why more civilian firms have not entered the
            scene is because of secrecy, lack of transparency, including secrecy
            in disclosing pricing of items that are imported. This has had its
            fallout in stunting local growth of the small and medium enterprises
            and an unambiguous policy on defence purchases. The Mumbai–Pune
            area has formed DEMA (Defence Electronics Manufacturers Association)
            with 38 entrepreneurs, which has taken on the challenge to goad the
            Government to offer cost of development. Some success has been
            registered and forebodes well for the future but still the whole
            matter is secretive and clouded with corruption.
            
             Conclusion
            
            
             India
            haphazardly but surely has attained R & D capacity and can
            produce defence equipment. It can be propelled to become fairly self
            reliant though not self-sufficient and look to exports. It would be
            essential to permit and even force some of the Government owned
            units including DRDO to seek collaboration from abroad and even
            encourage foreign participation and transfer of technology. The lack
            of an approved perspective plan, fissiparous decision making
            agencies and the temptation to buy off the shelf from abroad still
            pervade the scene. It is true the Chiefs of Armed Forces have a
            stake in self-reliance but they are also charged with the
            responsibility of defending the country in the event of war. These
            are the challenges when one survey India’s military industrial
            complex.
            
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