Indian Navy selects OTO Melara 127/64 LW gun

 

(janes): India's Ministry of Defence (MoD) recently approved the INR15 billion (USD243.5 million) procurement of 13 127 mm guns for Indian Navy (IN) warships, for which Italy's OTO Melara was the sole bidder.
IN sources told IHS Jane's that OTO Melara has offered its 127/64 LW - Vulcano gun system for 13 indigenously designed and built Shivalik-class frigates and Delhi-class destroyers.
OTO Melara emerged as the solitary vendor after BAE Systems declined to field its 127 mm/62 calibre Mk 45 Naval Gun System.
The November 2013 tender stipulated that three of the 13 naval guns would be imported and the remaining 10 licence-built by state-owned Bharat Heavy Electricals Limited (BHEL) at Haridwar, 200 km north of New Delhi.
The MoD also wanted the vendors to undertake production, quality control and timeline guarantees for the BHEL-produced naval guns but without providing the vendor with executive or supervisory authority over the public sector company.
BAE Systems opposed this arrangement, and in an official statement declared its unwillingness to accept the "disproportionate level of risk" in the tender.
Industry sources said OTO Melara has no such reservations as BHEL has been licence-producing its 76/62 Super Rapid Light gun since the mid-1990s. The contract will require special clearance by the MoD's Defence Acquisition Council, however, as India's defence procurement procedure (DPP) discourages solitary bids.
The DPP provides for exceptions based on operational exigencies, of which the 127 mm gun procurement is one, IN sources said.
OTO Melara will also require a special endorsement from the DAC for the 127/64 LW gun as it is a subsidiary of Finmeccanica. In January 2014 the MoD accused Finmeccanica affiliate AgustaWestland of corruption in the sale of 12 AW101 helicopters.
Thereafter, the MoD suspended all contracts with Finmeccanica and its subsidiaries, except those that were at an advanced stage of negotiation.

COMMENT

Clearance for the OTO Melara gun is unlikely to be problematic as defence minister Manohar Parrikar recently rejected blacklisting defence vendors as such a move would restrict India's materiel procurement options.
"Finmeccanica has 39 subsidiaries. Should we stop dealing with all 39? I don't agree. The military needs equipment," Parrikar told a Delhi-based television news channel on 12 December.

Key Points

• OTO Melara's 127/64 LW - Vulcano gun system has been chosen to arm 13 Shivalik-class frigates and Delhi-class destroyers
• OTO Melara was the sole bidder for the requirement after BAE Systems decided not to go for the contest

Russia refuses to sell China Tu-22 bomber

Russia has recently rejected China's request to purchase Tu-22 Supersonic strategic bombers to replace the PLA's Cold War-era H-6 strategic bombers, according to Moscow's Russian Military Analyst on Jan. 3.
Large and slow, the H-6 bomber presents a relatively easy target for US and Russian air defenses. China currently operates 100 H-6 bombers based on Soviet Tu-16 strategic bombers purchased from Moscow in 1958. By fitting the H-6 with Russian built D-30KP-2 engines and advanced avionics, the Xian Aircraft Industrial Corporation built the upgraded version of the H-6 bomber called the H-6K.
The combat range of H-6K has been extended to from 18,000 kilometers 30,000. It can carry a payload of six CJ-10A strategic cruise missiles designed based on the Russian Kh-55. However, those modifications do not make the H-6K an advanced bomber when compared to the B-2 and Tu-22 bombers of the United States and Russia. Equipped with long-range cruise missiles, the combat radius of the H-6K is still not enough to conduct strategic missions.
China has been trying to develop new types of bomber to replace the H-6 for years but it has proven to be a difficult task for the country's aviation industry. To catch up with the United States in the development of strategic bombers China pinned its hopes on Russia but has been thwarted for now.

 wantchinatimes

India’s priority: Four-pronged plan to save depleting sub fleet

 

With submarine force levels dipping, India has energised its plan to build conventional diesel-electric submarines. A four-pronged plan is now being driven at “top speed” with first ensuring that deadlines are met in the ongoing construction of the six subs, then starting the second lot of six such vessels, then designing and building additional such vessels indigenously and finally extending refit to existing ageing subs to prolong their life. At present, India has 13 conventional vessels and a nuclear one leased from Russia. The existing submarine plan announced in 1999 had spoken of having 24 conventional submarines by 2030. Half way through, not a single vessel has sailed. The Indian fleet is grossly inadequate to match China. The annual report to the Congress in the US, titled “Military and Security Developments Involving the People’s Republic of China 2014”, says: “PLA Navy (PLAN) has more than 60 submarines (and) places a high priority on modernisation of its submarine force.” These under-sea war-going vessels remain the most potent threat at sea and to warships and despite newer technologies, it’s nearly impossible to detect a sub sailing some 30 metre deep. Sources said the focus was now four-pronged. The six under-construction “Scorpene-class” submarines are being made by French company DCNS at Mazagon Docks Limited (MDL), a Defence Ministry-owned shipyard in Mumbai. The first one is slated to be delivered in September 2016 with the next five followed by an interval of nine months each. The fifth and sixth vessels will have the air independent propulsion (AIP) and a decision has been taken that all “Scorpenes” will be retrofitted with the “AIP plug”, which will add to submergence capabilities allowing the sub to dive for 12-15 days without re-emerging to “breathe”. Another six submarines are to be made under “project 75-India”, which will be made in India. A committee has been formed and given 10 weeks, starting in March, to indentify which shipyard in India will be asked to make the vessels with a foreign collaborator. There are three players — ThyssenKrupp Marine Systems of Germany, which owns the submarine arm HDW, the Russians and the French DCNS. The US does not make conventional subs anymore. These will have AIP, greater stealth and land-attack capability. 

 tribuneindia

Finally, Mountain Guns for India

 

In late November, the Indian Army’s artillery breathed a sigh of relief when the government gave clearance to a Rs. 15,570 crore ($2.5 billion) project for mountain artillery guns. The news came just a month after the Indian government cleared 80,000 crore worth of defense project deals. The guns to be purchased are 155 mm/52 caliber with a range of 40 km and will be part of the “Buy & Make India” program. At present, there is a plan to acquire 814 guns for the Indian Army. While 100 guns would be acquired off the shelf, the remainder of the 714 guns would be made in India.
This is a major boost to the Indian Army’s artillery, which has not acquired guns since the Bofors’ scam in the 1980s. India had already cancelled the acquisition of self-propelled 155 mm/52 caliber guns on the grounds that they failed to meet requirements. The only progress that was made in artillery was an upgrade to the Russian 130 mm/39 caliber M46 guns to 155 mm/45 caliber, which increased the range from 26 km to 39 km.
A ban on South Africa’s Denel had adverse repercussions for the progress of the Indian Army’s Bhim Artillery Project, an indigenous project under which Denel proposed to install a 155 mm gun on the Indian-made Arjun tank chassis. Now, though, given the government’s fast-track approach to procuring weapon systems for the Army, Air Force, and Navy, there is reason to believe that other lagging projects of the Indian Army’s Artillery could be about to get a boost. This haste in decision-making regarding defense procurements is due to the new government’s desire to “clear a backlog of defense orders” in order to provide an impetus to India’s military capability and boost its defense preparedness. China and Pakistan are already enhancing their artillery strength and India cannot afford to be left behind.
Several Indian companies are vying for the Army’s artillery project, namely TATA, L&T, and Bharat Forge, which can either develop the guns completely or build the guns in collaboration with a foreign firm. For instance, L&T has entered into an agreement with France’s Nexter Systems to offer the guns, while Mahindra Defence has joined with BAE systems. In August 2014, reports came in that India had lifted its ban on South Africa’s Denel company while in November 2014, India has also lifted its ban on Israeli Military Industries (IMI) and intends to plan for the future possibility of manufacturing ammunition for its 155 mm guns.
As New Delhi considers national security to be of “paramount concern” for the government, addressing the bottlenecks and hurdles in the defense procurement process will ensure that the “pace of acquisition is not stymied.” In July 2014, Finance Minister Arun Jaitley raised the foreign investment limit that can be contributed to the domestic defense industry from 29 percent to 49 percent in the hope of attracting more of its main arms suppliers in order to “reshape the defense industrial base dominated by state firms.” Under the new government, India has boosted defense spending by 12 per cent.
India’s decision to clear the 155 mm/52 caliber guns will no doubt lend momentum to the Indian Army’s artillery modernization program, and could cause foreign firms to “revisit their strategies” for the Indian market. It is clear that India is now keen on moving towards self-reliance with state-of-the-art equipment, rather than just buying complete systems from foreign firms.

 thediplomat

India, US May Sign Big Defence Deals

 

Defence Minister Manohar Parrikar on Thursday expressed confidence that India and US will be able to sign big defence deals during President Barack Obama’s visit to New Delhi for the Republic Day celebrations.
At the Adamya Chetana Seva Utsav here, Parrikar said, “It is quite obvious that defence deals will be finalised during Obama’s visit.”
“There are many things on the radar and we are working on the shape and size of these deals. We are facing issues in terms of technology, and these are being tackled. But I cannot divulge further details,” he added.
Speaking about the frequent ceasefire violations by Pakistan on the border, Parrikar said the government will not take things lying down.
“Whenever there has been a ceasefire violation, we have responded with double vigour. The incident that took place recently was not an infiltration. It was a mere attempt. They attempt to fire at night so that terrorists can sneak in. But we have been alert and have given them a powerful response,” he said.
Several eminent engineers in the aeronautics and space sectors were felicitated on the occasion. They included former ISRO chairman U R Rao, HAL chairman R K Tyagi, Dr C G K Nair, DRDO’s Dr Tamilmani and others.Union Chemical and Fertilizers Minister H N Ananth Kumar and Law Minister D V Sadananda Gowda and lexicographer G Venkatasubbaiah were among those present.

 newindianexpress

Rafale flies in to trouble

 

India could consider buying more Sukhoi-30 fighters if the $25 billion proposed deal to buy 126 Rafale jets from France collapsed, a top government official said as reported by Hindustan Times.

HIS Defence has quoted India's defence minister Manohar Parrikar as having said at a press conference in New Delhi that negotiations with Dassault over the purchase of 126 Rafale fighters have suffered 'complications'. Parrikar did not specify these difficulties, but stated that additional Russian licence-built Sukhoi Su-30MKI multirole fighters would be "adequate" for the Indian Air Force (IAF) in the event of the Rafale deal being scrapped.
The Hindustan Times source attributed the delay in the fighter project to France reneging on "key conditions" laid down in the global tender for acquiring the jets.
India had selected Rafale fighters over Eurofighter Typhoons in January 2012 after French firm Dassault Aviation emerged as the lowest bidder for the world's biggest fighter contract. But negotiations have yielded little progress with both sides haggling over clauses in the proposed contract for nearly three years.
In September, IAF chief Air Chief Marshal Arup Raha had told Hindustan Times that it was critical to keep the Rafale fighter deal on schedule as the air force could not afford any more delays.
This has apparently sent the alarm bells ringing in Paris. India Economic Times reports that ‘a French 'empowered' delegation is likely to visit India this month to carry forward the much- delayed talks for the multi-billion dollar contract for 126 Rafale fighter aircraft"
A top government official told Hindustan Times that under existing rules, there was no scope for the Eurofighter consortium, backed by four European countries, including UK, to re-enter the race to sell its Typhoon fighters to India. The Germany-led consortium had come up with a revised proposal — sweetened with a discount — to sell 126 Typhoons to India.
The deal, described as the "world's biggest French kiss", writes the Calcutta Telegraph, was estimated to be $10 billion initially but by common consent has now soared upwards of $20 billion, making it one of the biggest military contracts in the world.
Three years after the selection, a senior Indian defence official has confirmed that the Indian negotiators are wary because "the French seem to be going back on their word".
Russian observers point out that India might have been watching with concern France's backtracking on the delivery of two Mistral landing warships to Russia that are being built in France. India has been insisting that the aircraft should be assembled in India — as an apparent insurance against any change of mind by the French government.
Indian defence ministry officials speculated privately, reports the Calcutta Times on what the air force's options were — ordering more Sukhoi 30Mkis from Russia, for instance — to meet the requirement for medium multi-role combat aircraft.

 sputniknews

China builds lighter tanks for Tibet border

 

China is touting a new light tank designed specifically for operations in the high-altitude rugged terrain in Tibet region which borders India. Pictures of the new lighter tank which has officially not been named yet have been displayed in the Chinese media.

The tank has a light weight and a powerful diesel engine suitable for oxygen-deficit environments, according to huanqiu.com, a well-informed website which is a chosen platform to reveal advances in China's military modernization and defence technology.

The tank has missile firing capability for hitting helicopters which is one of the major threats to tanks on a battlefield. Huanqiu quoted sources saying that the tank has a 105-mm main gun capable of firing shells. It also features a powerful combination of frontal armor on the hull and turret.

China is likely to export the tank to other countries, according to Kanwa Defence Review, a Canada-based online publication. Buyers may include Pakistan which has purchased several weapons from China, sources said.

The decision to display the new tank is part of an emerging trend which includes exhibiting a modified T-99 main battle tank besides YJ-12 and YJ-100 anti-ship guided missiles. The People's Liberation Army had also debuted the prototype Y-20 and the J-31 aircrafts at an international air show recently.

"This is a symbol of frankness that China has nothing to hide," Ni Lexiong, a Shanghai-based military expert, was quoted by the official China Military Online.

Pictures showed the tank undergoing trials. The Huanqiu report said the vehicle is equipped with cutting-edge hydropneumatic suspension system that ensures better maneuverability and survivability in mountains. 

timesofindia

'Empowered' French team likely to visit India for Rafale deal

A French 'empowered' delegation is likely to visit India this month to carry forward the much- delayed talks for the multi-billion dollar contract for 126 Rafale fighter aircraft as India looks at the option of buying more Sukhoi-30 MKI warplanes in case the deal falls through.
Recalling his discussions with his French counterpart last month, Defence Minister Manohar Parrikar said talks are on over the deal. He said French Defence Minister Jean-Yves Le Drian had intended to send an "empowered person" for this. Sources said a French delegation could visit India this month.
Talking about the delays in sealing the contract, Defence Ministry sources admitted there were problems and said India could consider buying more Russian-made Sukhoi-30 planes if the proposed deal with France collapsed.
France, on the other hand, is confident of signing the contract and says differences can be sorted out. India and France had agreed to fast-track the negotiations in December.
The issue came up for discussion during the delegation- level talks on December 3 between Parrikar and his French counterpart.
India had in 2012 selected Rafale combat planes but the final negotiations are still continuing between the Defence Ministry and Dassault Aviation, maker of the aircraft.
The deal with India is a big one for the Rafale company as it will be the first mega export order for the aircraft. As per the Request for Proposal (RFP), the first 18 jets planes are to be imported and the rest manufactured under licence by Hindustan Aeronautics Ltd.

 deccanchronicle

Russia looks to boost defence ties with India

(tribuneindia):Days before US President Barrack Obama arrives in India to be the Chief Guest at the Republic Day function, Russian Defence Minister Sergei Shoigu will arrive in New Delhi on January 21 to meet his Indian counterpart Manohar Parrikar. The two ministers will conduct the 15th meeting of the Russian-Indian Inter-Governmental Commission on Military-Technical Cooperation. The two sides are expected to discuss the offer made by Russian President Vladimir Putin in New Delhi during his last month visit on producing the ‘Kamov’ military helicopters in India. Also India is possibly looking for additional Sukhoi-30MKI fighter jets, as a fall-back option in case the deal to buy 126 Rafale fighter jets from France does not materialise. The deal has been stuck for three years now. The two sides are not expected to move forward on having a $11 billion research and development contract for the Fifth Generation Fighter Aircraft (FGFA). During a Russian team’s visit to India three days ago, New Delhi conveyed that the basic prototype of the plane was already flying and the Indian version had just a few variations, hence a full-fledged R&D contract was a waste of time and resources. The Defence Ministers’ meeting was scheduled in October but could not be held due to occupation of the Russian Minister in matters related to Ukraine. In November, Sergei Shoigu became the first-ever Russian Defence Minister to visit Pakistan. The two sides even signed a ‘Defence and Military Cooperation Agreement’ on November 20 at Rawalpindi. Official spokesperson in the Indian External Affairs Ministry Syed Akbaruddin had then said: “The first-ever visit by the Russian Defence Minister to Pakistan is obviously significant... India has noted that Russia, like other countries, has chosen to progress defence cooperation with our neighbour.” Earlier this year, Moscow sold the Mi-35 attack helicopter to Pakistan. India uses an older version of the same helicopter. Russia has clearly leaned towards India after Putin’s visit to New Delhi in December. Moscow has led India to jointly explore gas and oil in the Arctic shelf and will set up 10 additional nuclear power units in India. It has also promised investments infrastructure besides trade in diamonds. In all 20 agreements were inked during the visit. Russia diplomatic support to India in the context of Kashmir at the United Nation Security Council (UNSC) has been healthy, especially when the traditionally strong US-Pakistan relationship exists. The US in its latest defence budget okayed a $1 billion grant to Pakistan.
 On agenda

• Russian Defence Minister Sergei Shoigu will meet his Indian counterpart Manohar Parrikar during the 15th meeting of the Russian-Indian Inter-Governmental Commission on Military-Technical Cooperation
• They are likely to discuss production of ‘Kamov’ military helicopters in India and purchase of additional Sukhoi-30MKI fighter jets by New Delhi

Parrikar has started well, but it's still a long way to go

 

The provision of weapons for India’s military has traditionally been pulled in three different directions. One is that arms purchases should not become the source of a corruption scandal. The other is that India should build more of its weapons at home. The third is of having a military equipped with the right sort of weapons. In theory, the latter should be the priority but with successive governments it has often been an overthought. Haunted by the shadow of the Bofors scandal, the past Congress-led government was obsessed with avoiding corruption scandals, even to the detriment of indigenisation and defence preparedness. The present BJP-led NDA government is more focused on leveraging India’s defence purchases to help kick-start its ambitious plans for the country’s manufacturing sector. If done without proper thought, that need not be a positive for the country’s defence preparedness.

The new defence minister, Manohar Parrikar, has begun on the right rhetorical note. His Congress predecessor solved the issue of defence corruption by simply putting all purchases in cold storage. India lives in a tough neighbourhood and can ill-afford a military deficient in weapons. The intentions to undo unrealistic decisions like blacklisting arms firms and keeping out defence middlemen are welcome. This will help unblock the purchase procedure at one level. The more difficult reforms Mr Parrikar needs to address will be reforming India’s present offsets policy in a manner that takes into account the weakness of indigenous defence technology and production capacity. A longer term reform will revolve around breaking the present defence production monopoly of the state-owned enterprises and bringing a wary Indian private sector into the loop. And all of this needs to be done in a manner that does not leave India’s defences even worse off than they already are.

Mr Parrikar hopefully understands that all this, most notably indigenisation, will take patience. Replacing an incompetent Indian defence public sector with a rent-seeking Indian private sector is a danger. Offsets will make available billions in contracts. Using them to slowly help incubate the basic skills, core technologies and subcontractor clusters that a genuine indigenous defence capability would require both knowledge and patience, and an ability to avoid falling into the closed mindset that exists among most of the defence ministry’s bureaucrats. India should expect to continue to import arms for years to come. Hopefully each round of imports will see more and more Indian firms providing components, writing software and absorbing new technologies. Indigenisation should not be used, as anti-corruption was before it, as an excuse to provide substandard equipment to the country’s military. It is a life and death issue for the men and women in uniform as well as the country as a whole. 

 hindustantimes

The provision of weapons for India’s military has traditionally been pulled in three different directions. One is that arms purchases should not become the source of a corruption scandal. The other is that India should build more of its weapons at home. The third is of having a military equipped with the right sort of weapons. In theory, the latter should be the priority but with successive governments it has often been an overthought. Haunted by the shadow of the Bofors scandal, the past Congress-led government was obsessed with avoiding corruption scandals, even to the detriment of indigenisation and defence preparedness. The present BJP-led NDA government is more focused on leveraging India’s defence purchases to help kick-start its ambitious plans for the country’s manufacturing sector. If done without proper thought, that need not be a positive for the country’s defence preparedness.

The new defence minister, Manohar Parrikar, has begun on the right rhetorical note. His Congress predecessor solved the issue of defence corruption by simply putting all purchases in cold storage. India lives in a tough neighbourhood and can ill-afford a military deficient in weapons. The intentions to undo unrealistic decisions like blacklisting arms firms and keeping out defence middlemen are welcome. This will help unblock the purchase procedure at one level. The more difficult reforms Mr Parrikar needs to address will be reforming India’s present offsets policy in a manner that takes into account the weakness of indigenous defence technology and production capacity. A longer term reform will revolve around breaking the present defence production monopoly of the state-owned enterprises and bringing a wary Indian private sector into the loop. And all of this needs to be done in a manner that does not leave India’s defences even worse off than they already are.
Mr Parrikar hopefully understands that all this, most notably indigenisation, will take patience. Replacing an incompetent Indian defence public sector with a rent-seeking Indian private sector is a danger. Offsets will make available billions in contracts. Using them to slowly help incubate the basic skills, core technologies and subcontractor clusters that a genuine indigenous defence capability would require both knowledge and patience, and an ability to avoid falling into the closed mindset that exists among most of the defence ministry’s bureaucrats. India should expect to continue to import arms for years to come. Hopefully each round of imports will see more and more Indian firms providing components, writing software and absorbing new technologies. Indigenisation should not be used, as anti-corruption was before it, as an excuse to provide substandard equipment to the country’s military. It is a life and death issue for the men and women in uniform as well as the country as a whole. - See more at: http://www.hindustantimes.com/comment/parrikar-has-india-s-defences-firing-on-all-cylinders/article1-1302378.aspx#sthash.i84QRVbQ.dpuf

How they fired a torpedo & got it back

After several attempts over two days, a team of scientists retrieved a heavyweight torpe do that was buried off Visakhapatnam on the floor of the Bay of Bengal.

The team from National Institute of Ocean Technology (NIOT) and Naval Science and Technology Laboratory , which developed the 1,500kg torpedo `Varunastra', used a ship-borne deep ocean profiler to locate the weapon through sound sig nals after poor weather conditions did not permit to complete the search operation with a remotely operable vehicle.They found the weapon buried in the seabed approximately 21 nautical miles (40 km) from the coast.

The torpedo was pulled out of the sea bed on December 23 by a ship after several failed attempts due to sea currents making it difficult to properly position the vessel and the metal wire the team used to haul it out. The torpedo, carrying vital information for future trials, was lost at sea on November 6 during a technology demonstration trial.

The NIOT team employed the ocean profiler from ocean research vehicle Sagar Nidhi. The scientists said they used the profiler instead of normal sonar because it provided a clearer picture of what was on the seabed. They had earlier surveyed the area with details of the torpedo's probable location provided by NSTL.

The team began the search operation at a depth of around 170 metres and located the torpedo embedded vertically in the seabed at a depth of 168 metres. "Only seven metres of the torpedo was jutting out of the sea bed," said G A Ramadass, head of the Deep Sea Technology Group at NIOT. "It was a challenge to locate the torpedo in the high seas and the current was difficult to handle."

The team faced more hurdles while retrieving the torpedo. It took multiple attempts with a metal wire mesh, with weights fixed to it, strung from the ship before they finally pulled the torpedo out of the sea bed and lifted it out of the water.

"We had to manoeuvre the ship ex actly above the torpedo. The sea current was making it difficult to send down the metal wire to pull up the torpedo," Ra madass said. "The wire was constantly drifting because of the current. We changed the direction of the ship and adjusted the weights on the metal wire several times before we could snare the torpedo." ESSO-NIOT director M A At manand said it was first such opera tion in the country . "No torpedo had been recovered from such a depth in the past," he said.

times of india

ThyssenKrupp India eyes defence, aerospace sectors in expansion bid

ThyssenKrupp India Pvt. Ltd is looking to expand its business in the country in segments such as aerospace, defence and smart cities. The local unit of the German industrial engineering conglomerate ThyssenKrupp AG will bid for multi-billion dollar aerospace and defence contracts and lend technology to its Indian partners to build submarines and smart cities, Michael Thiemann, chief executive officer of the Indian unit said in an interview last week. Thiemann said his company was open to tying up with private Indian companies such as Larsen and Toubro Ltd for projects. ThyssenKrupp already makes mining equipment, cement plants and boilers in the country. “We will increase these capacities due to the demand in India. We are in alignment with the government’s Make in India campaign,” said Thiemann, referring to the campaign to boost domestic manufacturing. ThyssenKrupp India will open a dedicated aerospace component facility in Bengaluru to supply components for Indian and international airlines for aircraft families including The Boeing Co. and Airbus SAS. “We work like a project manager with the largest names in the aerospace industry. We are sitting in the production house and we make sure that each material is available when it is required. We are like the stockists of aerospace products,” he said, adding that the facility will be operational by February. The company is also looking to build warehouses for aviation and auto industries. 
Thiemann said the Indian unit can leverage its parent’s engineering expertise in plants, materials and mechanical aspects. ThyssenKrupp India is also keen to join a project to build submarines in India, which is estimated at Rs.50,000 crore. “(Prime Minister Narendra) Modi was very clear that six submarines should be made coming from the supplier of the technology directly, and all six should be made in India. And we bring all the knowhow, maybe some very quick part delivery; we will supervise and guide as a company how these submarines will be built. We would want to build at least one of such submarines in India,” he said. On Tuesday, three state-run companies—Bharat Heavy Electricals Ltd (Bhel), Mishra Dhatu Nigam Ltd and Hindustan Shipyard Ltd—announced the formation of a consortium to build submarines in India. The consortium will approach the defence ministry to be considered as a prospective bidder for Indian Navy’s P-75 (I) project to build six submarines at a local shipyard. 
ThyssenKrupp India does not have a local shipyard, but Thiemann said he is open to tie-ups with companies such as Larsen and Toubro (L&T). With the government taking several initiatives to speed up procurement, defence has emerged as a big opportunity for companies. According to a July report by Edelweiss Securities Ltd, defence spending over the next 10 years is expected to be around $248 billion. Since foreign winners of defence contracts must mandatorily invest 30% of their contract value in India in so-called offsets, the minimum opportunity for domestic companies is expected to be around $75 billion. The government has scrapped licence requirement for manufacturing all but 16 defence items. In the last union budget, the government had increased the foreign direct investment limit in defence to 49% while also increasing capital expenditure budget by 20%, the report said. “The new government has moved quickly in terms of granting clearance to various defence procurement orders and so far orders worth almost Rs.1.25 trillion have been approved,” said a senior executive with a domestic brokerage, who did not wished to be named. 
However, he added that foreign companies might find it difficult in finding the right domestic partners as there are very few companies in the private sector, which are involved in defence manufacturing. “Orders in defence are non-linear; there is no guarantee that if you have an order today, you will have orders tomorrow and so, people haven’t invested in creating huge capacities for defence manufacturing,” he said. ThyssenKrupp India has also expressed interest in collaborating on smart city projects and in the renewable energy segment by advanced technologies. Thiemann, however, did not disclose capital expenditure for the proposed projects and added that funding is not a constraint once the company secures the opportunity to build a submarine or a smart city.
- Livemint

ThyssenKrupp India Pvt. Ltd is looking to expand its business in the country in segments such as aerospace, defence and smart cities. The local unit of the German industrial engineering conglomerate ThyssenKrupp AG will bid for multi-billion dollar aerospace and defence contracts and lend technology to its Indian partners to build submarines and smart cities, Michael Thiemann, chief executive officer of the Indian unit said in an interview last week. Thiemann said his company was open to tying up with private Indian companies such as Larsen and Toubro Ltd for projects. ThyssenKrupp already makes mining equipment, cement plants and boilers in the country. “We will increase these capacities due to the demand in India. We are in alignment with the government’s Make in India campaign,” said Thiemann, referring to the campaign to boost domestic manufacturing. ThyssenKrupp India will open a dedicated aerospace component facility in Bengaluru to supply components for Indian and international airlines for aircraft families including The Boeing Co. and Airbus SAS. “We work like a project manager with the largest names in the aerospace industry. We are sitting in the production house and we make sure that each material is available when it is required. We are like the stockists of aerospace products,” he said, adding that the facility will be operational by February. The company is also looking to build warehouses for aviation and auto industries. Thiemann said the Indian unit can leverage its parent’s engineering expertise in plants, materials and mechanical aspects. ThyssenKrupp India is also keen to join a project to build submarines in India, which is estimated at Rs.50,000 crore. “(Prime Minister Narendra) Modi was very clear that six submarines should be made coming from the supplier of the technology directly, and all six should be made in India. And we bring all the knowhow, maybe some very quick part delivery; we will supervise and guide as a company how these submarines will be built. We would want to build at least one of such submarines in India,” he said. On Tuesday, three state-run companies—Bharat Heavy Electricals Ltd (Bhel), Mishra Dhatu Nigam Ltd and Hindustan Shipyard Ltd—announced the formation of a consortium to build submarines in India. The consortium will approach the defence ministry to be considered as a prospective bidder for Indian Navy’s P-75 (I) project to build six submarines at a local shipyard. ThyssenKrupp India does not have a local shipyard, but Thiemann said he is open to tie-ups with companies such as Larsen and Toubro (L&T). With the government taking several initiatives to speed up procurement, defence has emerged as a big opportunity for companies. According to a July report by Edelweiss Securities Ltd, defence spending over the next 10 years is expected to be around $248 billion. Since foreign winners of defence contracts must mandatorily invest 30% of their contract value in India in so-called offsets, the minimum opportunity for domestic companies is expected to be around $75 billion. The government has scrapped licence requirement for manufacturing all but 16 defence items. In the last union budget, the government had increased the foreign direct investment limit in defence to 49% while also increasing capital expenditure budget by 20%, the report said. “The new government has moved quickly in terms of granting clearance to various defence procurement orders and so far orders worth almost Rs.1.25 trillion have been approved,” said a senior executive with a domestic brokerage, who did not wished to be named. However, he added that foreign companies might find it difficult in finding the right domestic partners as there are very few companies in the private sector, which are involved in defence manufacturing. “Orders in defence are non-linear; there is no guarantee that if you have an order today, you will have orders tomorrow and so, people haven’t invested in creating huge capacities for defence manufacturing,” he said. ThyssenKrupp India has also expressed interest in collaborating on smart city projects and in the renewable energy segment by advanced technologies. Thiemann, however, did not disclose capital expenditure for the proposed projects and added that funding is not a constraint once the company secures the opportunity to build a submarine or a smart city.

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