Thoughts on the Lockheed-Tata agreement to produce F-16s in India

The recent blooming of closeness between US and India can led to another deal between both countries; a billion dollar deal with India’s known TATA Group to relocate and produce F-16s in India. TATA Advanced Systems has been producing component parts for the American defence contractor’s C-130J military transport aircraft. It is being touted as a ‘win-win’ situation for countries, promising jobs and reaffirming confidence in each other.

This deal needs to be looked at a little more closely.

Yes India needs to replace her Russian provided MIGs that are way too old and reportedly passing the expiry date. The MIG jets are nicked as the ‘Flying Coffin’. In 2012, the Defence Minister’s statement in Indian Parliament that more than half of the 872 MIG Jets purchased from Russia are lost in accidents costing more than 200 lives. (Andrew North for BBC)

F-16 Block 70 aircraft in future, all going well between both the governments will only be produced in India. Though presently, F16s dominate the fighter aircrafts market globally, will the situation remain unchanged minimum a decade down the road needed to get production off ground?

The US Department on the other hand, is buying another lot of F-35 fighter jets from Lockheed Martin. The US government reportedly is expected to spend approximately $400bn in coming years on the production of 2,443 of these sleek beauties. This anomaly is interesting.

Should Lockheed-TATA manage to get the contract to set up the production facilities in India, itself a time-taking process; including the red-tape involved, the shortlisting of manufacturers and then the laborious task of setting up the manufacturing units. India is looking to a period of a decade give and take, before the first aircraft can roll off the production line.

With US already moving towards a smarter aircraft, after a decade, who will Lockheed-TATA be selling the F 16s to? Reportedly at the moment roughly 26 countries are flying 3200 of these aircrafts, will the sale graph will be the same in a decade?Sweden’s Saab has pitched in to produce Gripen fighter in India, though it has not yet entered into a partnership with a local production house in India. ‘Saab AB of Sweden, makers of Gripen fighter jets, is in talks with the Gautam Adani-led Adani Group for a manufacturing partnership.’ (Livemint, Tarun Shukla, Feb 16 2017)

There is a political angle to the production deal. Whereas, bilateral trade between India and Sweden is healthy with an estimated 150 Swedish companies already established in India with more coming in, providing jobs to roughly 7,50,000 Indians, India’s political leaning towards US in the past few years, and in particular with Trump becoming President is a part of new global alliances.

India desperately wants to be seen as the regional power Vis a Vis China which is not happening anytime soon. In this effort India may very well axe herself in her foot by providing a lifeline to Lockheed Martin in producing F16s that becomes a white elephant as soon as the first aircraft rolls off the production line.

For US it’s a positive all the way. She binds India closer thereby creating a dent in an important sector where Russia had the gains with India. It gets to create a challenge to China in her very backyard thereby taking a step in her efforts to delay China’s rise as a regional power and in line with Trump’s policy of “America First’ creates thousands of jobs for Americans.

On the other hand, India will be pushing Russia closer to Pakistan a likely result in light of upcoming CPEC and the fact that there is a drift between Pakistan and US, a chasm that seems to be widening with time. In a paradigm shift, the centre of focus is shifting to Asia and Russia is very much cognizant of the fact. The joint military excise between both countries in Khyber Pakhtunkhwa a few months ago is one indicator.

“Apart from military cooperation, Pakistan and Russia are also expanding bilateral cooperation on energy and infrastructure projects. Pakistan has taken the first step by offering Russia the use of Gawadar port which would help Russia to connect it to the rest of the world. It is expected that Moscow will use this port for exports and imports. Russia has also shown interest in China-Pakistan Economic Corridor (CPEC). Furthermore, Russia has also joined hands with Pakistan to counter terrorism. Russian Ambassador to Pakistan Alexy Y. Dedov has said that Russia will assist Pakistan in fighting terrorism by supplying military equipment.” (Re-shift in Russian Policy towards Pakistan: Balancing the Unbalanced: Institute of Strategic Studies April 5, 2017)
India needs to take a hard look into the deal. In a world of complex global alliances, many a pitfall awaits those who jump before they can learn to walk!

 pakistantoday

The ballistic missile defense grid that will protect the western and northern regions of the country will help guard New Delhi and Mumbai. India has decided to install its homemade ballistic missile defense systems at two villages in the western state of Rajasthan. The villages in Alwar and Pali are both less than 800 kilometers from the Pakistani capital Islamabad. The counter attack missiles will be able to provide double layered security with the capacity to shoot down enemy missiles both within the earth's atmosphere (endo-atmospheric) and outside it (exo-atmospheric). State owned Defense Research and Development Organization (DRDO) had conceived the programme in 1999 and since then, the programme has witnessed many trials and upgrades. The ready version consists of long-range tracking radar developed in partnership with Israeli company Elta. The second component is a computerized command and control system that plots and predicts the intruding missile's flight path and assigns interceptor missiles to destroy it. The third component is the interceptor missiles and includes the endo-atmospheric missile can intercept incoming targets at an altitude of 15 to 25 kilometers and the exo-atmospheric missile can kill an incoming ballistic missile within the range of 2000km. DRDO has claimed that the strike range of the exo-atmospheric missile is being upgraded to 5000 km. Some more tests will be conducted in the coming months before the system is commissioned into the Indian armed forces. The latest successful tests of the endo-atmospheric as well as exo-atmospheric interceptor missiles were conducted in March this year. "The complete event including the engagement and destruction was tracked by a number of electro-optical tracking systems using infrared imagery. The launch has proved the Ballistic Missile Defence (BMD) prowess of the country," DRDO had claimed on March 1 this year. With this capability, India has now entered the elite league of nations having this capability. The other four countries are US, Russia, Israel and France. India's decision to install the advance ballistic missile system near its border with Pakistan stems from the fact that the two nuclear-armed neighbors are engaged in a prolonged territorial dispute and have gone to war three times after their partition in 1947.

The ballistic missile defense grid that will protect the western and northern regions of the country will help guard New Delhi and Mumbai.

India has decided to install its homemade ballistic missile defense systems at two villages in the western state of Rajasthan. The villages in Alwar and Pali are both less than 800 kilometers from the Pakistani capital Islamabad.

The counter attack missiles will be able to provide double layered security with the capacity to shoot down enemy missiles both within the earth's atmosphere (endo-atmospheric) and outside it (exo-atmospheric). State owned Defense Research and Development Organization (DRDO) had conceived the programme in 1999 and since then, the programme has witnessed many trials and upgrades.

The ready version consists of long-range tracking radar developed in partnership with Israeli company Elta. The second component is a computerized command and control system that plots and predicts the intruding missile's flight path and assigns interceptor missiles to destroy it. The third component is the interceptor missiles and includes the endo-atmospheric missile can intercept incoming targets at an altitude of 15 to 25 kilometers and the exo-atmospheric missile can kill an incoming ballistic missile within the range of 2000km. DRDO has claimed that the strike range of the exo-atmospheric missile is being upgraded to 5000 km.

Some more tests will be conducted in the coming months before the system is commissioned into the Indian armed forces. The latest successful tests of the endo-atmospheric as well as exo-atmospheric interceptor missiles were conducted in March this year.

"The complete event including the engagement and destruction was tracked by a number of electro-optical tracking systems using infrared imagery. The launch has proved the Ballistic Missile Defence (BMD) prowess of the country," DRDO had claimed on March 1 this year.

With this capability, India has now entered the elite league of nations having this capability. The other four countries are US, Russia, Israel and France.

India's decision to install the advance ballistic missile system near its border with Pakistan stems from the fact that the two nuclear-armed neighbors are engaged in a prolonged territorial dispute and have gone to war three times after their partition in 1947.

 sputniknews

Tibetans in Delhi plan protest against worsening India-China relations

Tibetans living in exile in India are going to hold a protest rally under the banner 'Tibet's independence, India's security' in Delhi over worsening relations between India and China due to the Doklam issue. Tibetan Youth Congress (TYC), one of the largest groups formed of young Tibetans in 1970, has given a call to this rally. It will take place on August 11, 2017. Tibetans will gather at Ramlila Maidan and will hold procession till Jantar Mantar in the national capital.

The organization has 35,000 members worldwide. "We are the largest NGO in exile and are going to hold this rally to highlight that Tibet's independence is the safest guarantee for India's security and peace along the Himalayas. We believe that Tibetans must be a part of discussions concerning the borders" said Tenzin Jigme, President of TYC.

Headquarters of the TYC are situated in Mcleodganj near here. It has 88 chapters in various countries, out of which 65 are in India who would be participating in this protest along with some Indian groups also, said officials of the organization.

"Confirmations about the Indian leaders and groups will come in a day or two" they said.

It was formed in October 1970 after the Tibetan spiritual leader - Dalai Lama has come into exile in India. "The current standoff between India and China over the Doklam region which has historically part of Tibet reinforces the fact that India's security lies in an Independent Tibet" said Jigme.

He said that it would be in interest of India that Delhi officially recognizes Tibet as an illegally occupied nation and leads a regional coalition to pressure China on its dismal human rights record.

Tibetans are living in India as refugees since 1959 when Dalai Lama had fled Tibet after uprising there. Since then he is living in India in his exile home at Mcleodganj. Central Tibetan Administration (CTA) located here is global headquarters for about 1, 50, 000 Tibetans living in 40 countries of the world. The call for the protest is being made through online platforms of Tibetan activists and well-wishers. It is expected that Tibetan supporters from foreign countries will also participate in this rally.

 timesofindia

Indian Defence Ministry Panel recommends PAK-FA involvement

The Hindustan Times reports that Indian Ministry of Defence (MoD) panel has recommended that New Delhi participate in the Sukhoi Su-57 – i.e. T-50 PAK-FA (or custom FGFA for India) – stealth fighter program as a co-development and co-production partner.

The panel is reportedly headed by retired Indian Air Force (IAF) Air Marshal Simhakutty Varthaman, who did not disclose the panel’s findings, but confirmed that its function was complete. The panel was raised in February with the mandate to examine the feasibility of the PAK-FA.

The Su-57/PAK-FA is a heavyweight twin-engine fighter design. It is powered by 117S turbofans, which are also the engines of the Sukhoi Su-35. Among the Su-57’s marquee features is its low radar cross-section (RCS) airframe, which aims to reduce its detectability on radar.

One of the reported challenges surrounding the PAK-FA has been cost. Speaking to Defense News, an IAF official stated that Moscow had set an “unaffordable price for the aircraft,” adding that “India is not in a position to pay this kind of money, and the aircraft project appears to be lost.”

From New Delhi’s perspective, it appears that the high costs of the PAK-FA are borne from the platform’s design still not meeting IAF requirements, such as a lack of certifiable active electronically-scanned array radar and Moscow’s own lack of interest in the program.

In July, Russian defence industry analysts and observers have told IHS Jane’s that the Russian Aerospace Forces (VKS) was not pushing for the PAK-FA as the platform does not offer a substantive improvement in value over the Sukhoi Su-35, one of the VKS’ emerging mainstay fighter platforms.

United Aircraft Corporation (UAC) stated (via TASS News Agency) that development of the T-50 PAK-FA is scheduled for completion in 2019. UAC will deliver a “pre-production batch” of the fighters, at which point UAC expects the VKS to begin issuing orders. However, analysts are unconvinced that the VKS will acquire more than 60 of the launch Su-57 variant.

These two elements, i.e. incomplete technology/subsystems and no domestic orders at launch, leave the PAK-FA as an expensive and uncertain proposition for prospective customers, including India, which has a spate of competing priorities – such as an Indian Navy requirement for 57 carrier-borne fighters and IAF requirement for new single-engine fighters – to manage in the short and medium-terms.

India also has a homegrown next-generation fighter program in the Hindustan Aeronautics Limited (HAL) Advanced Medium Combat Aircraft (AMCA). Although some have recommended investing in the PAK-FA to secure vital expertise and technology for the AMCA, the IAF and IN’s apparent inclination to Western fighters could enable India to acquire analogous collaborative support from Dassault, Airbus and/or Saab instead. In fact, New Delhi can potentially leverage its IAF and IN bids to supporting the AMCA.

 quwa

BJP to alter Article 35A on permanent residents in J&K?

Highlights

• State laws have barred non-residents from purchasing land in the state
• A BJP MLC said Article 35A is a constitutional mistake
• The Centre seeks a larger debate on this issue

Away from the attention that Article 370 usually invites, a section of BJP sympathisers are steadily pushing the party's less-noticed promise of altering Article 35A of the Constitution, which empowers the J&K government to define "permanent residents" of the state.

The article enables the state to provide special rights and privileges that permanent residents can enjoy but has been criticised by BJP as a provision that encourages alienation, deepens the concept of a separate identity and creates a political gap between J&K and the rest of India.

Under the Article, state laws have barred non-residents from purchasing land in the state and the issue is in focus with a Kashmiri woman, Charu Wali Khan, recently filing a petition seeking changes in the constitutional provision as she wanted succession rights though she is settled outside the state.

Responding to her plea, the Supreme Court sent notices to the Centre and state last month. The woman has argued that the state's laws, flowing from Article 35A, have disenfranchised her. Advocate General K Venugopal told the bench of Chief Justice J S Khehar and Justice D Y Chandrachud that the petition against Article 35A raised "very sensitive" questions that required a "larger debate".

The court referred the matter to a three-judge bench and has set a six-week deadline for final disposal. The bench is likely to deliver its verdict in September first week. Union minister Jitendra Singh said that since the matter was sub judice, one should wait for the court's verdict. He said the court verdict would be binding on all. State BJP leaders are vocal about their views as they strongly feel that Article 35A should be repealed.

"Article 35A is a constitutional mistake. It was incorporated through a presidential order and not through the parliamentary process,"claimed Surinder Amabardar, BJP MLC from the state. The Centre's stance seeking a "larger debate" set off alarm bells among a section of politicians in the Kashmir valley, prompting CM Mehbooba Mufti's outburst during the Foundation Day celebrations of her PDP party. She asserted Article 35A should not be tinkered with, saying there would be no one to hold the tricolour if provisions regarding special status to J&K residents were altered.

TOI

Indian Army still battling with insufficient arsenal

There is bad news for those Facebook warriors in India thirsting for a war with China and Pakistan. The Comptroller and Auditor General’s (CAG) report on the Indian Army submitted to Parliament has some significantly disturbing findings. Despite all its bravery, our army is battling with a drastic shortfall of necessary arsenal.

The report is a follow-up to the conclusions of May 2015. Its objective was to evaluate the progress that has been made over the last three years. The CAG report on ammunition management reveals that the situation in September 2016 has not changed much since March 2013.

The reason? Our ordnance factories have not improved their output or quality and the procurement process continues to run on the old pattern. The wish list of weaponry that the army headquarters wanted to acquire, which was on the government’s files, had not been fulfilled even till January 2017.

The CAG report also says that of the 170 kinds of ammunition in 2013, just 27% was ready for 20 days of intense fighting, while in September 2016, 80% ammunition was below the required levels. The situation has improved only marginally in the months that followed. The government has given the rights for procurement to the vice-chief of the army staff in the event of an emergency. With this, the risk has reduced but it hasn’t entirely vanished.

In this situation, the question that may come to one’s mind is whether the government has set a standard where it should have a minimum level of arsenal and the associated ammunition. The ministry of defence had devised a roadmap in 2013 according to which it had to procure 20 days of ammunition that was necessary to win a small-scale war, by 2015. It was also decided that these supplies would be increased to 40 days by 2019 so that we can prepare for bigger battles. Both these objectives are hanging fire.

Another thing is that even the biggest marksman and commando can forget his craft without adequate practice. According to this report, the army has had to cut down on its training drills in the light of the shortage of essential resources. The shortfall in resources required for training is between 77% and 88%. Can you imagine any country winning a war without the requisite ammunition and training?

The situation continues to be so bad despite facing the repercussions of such shortfalls during the war with China in 1962. Even then, our soldiers were neither equipped with the requisite weapons, nor maps that are essential in the dangerous mountainous terrain.

We may have won the Kargil war in 1999, but at what cost? At the end of Operation Vijay, the shoulders of the Indian nation-state were drooping with the burden of 537 martyrs. Even during this war, the shortfall of essential ammunition had been revealed. When the initial group of soldiers tried to scale the high peaks, they didn’t have the requisite clothes and shoes essential for snow-bound terrain. This has been the sorry picture of our military affairs from 1962 to 1999. Who should be held accountable for this mess?

With utmost humility, I hold the nation’s political class responsible for this. The manner in which the Bofors ghost was invoked and then used to pursue selfish political goals for years together instilled terror in Delhi’s political corridors. Politicians began to be reluctant of buying the ammunition essential for the army and an issue critical to the nation’s security was pushed to the background.

The time has come when our politicians stop the mudslinging and create a consensus on subjects of national interest. Just because our soldiers are not afraid of making the highest sacrifice, none of us have a right to push them into the mouth of death. On 26 July, in the memory of Operation Vijay, many Indians organized events and sang patriotic songs. But how many of those participating in this group of loudmouths was perturbed over the findings of the CAG report?

The country’s foreign and military policy should be guided by facts, not emotions. When we choose a government, we should also allow it to work. The government in Delhi these days displays adequate sensitivity towards our soldiers on international borders. You may recall that Prime Minister Narendra Modi spent last Diwali with the soldiers guarding our borders. The defence ministry is being led by the sharp and astute-minded Arun Jaitley. We can sincerely hope that the duo gets rid of this old malaise afflicting the country.

 livemint

Jaguar jets still flying without autopilot: CAG

One of the frontline fighters of the Indian Air Force, the Jaguars, are still flying without autopilots, an essential flying aid, the Comptroller and Auditor-General has said.

In a report presented in Parliament on July 28, the CAG said, “The flying aid capability envisaged by the IAF for the Jaguar aircraft in 1997 remains largely unrealised even after 20 years … Meanwhile, the IAF had lost three Jaguar aircraft and one pilot since April 2008 due to pilot disorientation/human error whereas loss of another four Jaguar aircraft was under investigation as of October 2016.”

An autopilot reduces the pilot’s workload, enhances safety of aircraft and cuts aircraft accidents. Jaguars acquired in the 1980s are of older vintage and lack autopilots.

In 1997, the IAF had projected a requirement of 108 autopilots for 108 aircraft but only 35 autopilots were contracted in August 1999 due to “resource crunch” at a cost of ₹37.42 crore which were delivered between 2006 and 2008. A repeat contract for 95 autopilots was concluded only by March 2014.


Sub-optimal function ::

“Out of 35 autopilots procured earlier, only 18 could be integrated on the Jaguar aircraft as of March 2017. The integrated autopilots were also functioning sub-optimally due to malfunctioning of their vital component i.e. Auto Pilot Electronic Unit (APEU),” the report said.

In addition, 30 autopilots received through the repeat contract are yet to be integrated. Thus, as on October 2016, the IAF had a holding of 117 Jaguars, but only 18 could be upgraded with autopilot capability. Even these autopilots were working sub-optimally due to malfunctioning of their APEUs, the report added.

In addition to autopilots, the IAF is undertaking a major modernisation of the Jaguar fleet, which also carry nuclear weapons, with new avionics and sensors to keep them flying for another two decades. The Jaguars have an underpowered engine. However, efforts to equip them with a more powerful engine have been dragging on for several years.

the hindu

No Early Delivery of Rafale Jets for India

Contrary to India's desire, France has not made any commitment for before-the-schedule delivery of the first batch of Rafale fighter jets for the Indian Air Force.

The Indian Air Force will not be getting Rafale fighter jets before schedule despite several requests by the Indian government to France to speed up the delivery.

"The delivery of the aircraft will commence from September 2019 and will be completed by April 2022. There is no anticipation of any delay in the scheduled delivery of the aircraft," Arun Jaitley, India's Minister of Defense informed the Parliament on Friday.

On July 18 this year, Chief of Indian Air Force, B S Dhanoa visited the production facility of Dassault Aviation in France where Rafale jets meant for India were being manufactured and had reviewed the expected delivery time for the first batch of aircraft. Last year, India had sent a formal request to France to expedite the delivery of Rafale jets."As per terms of the deal it is 36 months (during which the delivery has to start), but it may come slightly earlier. We have requested them to (deliver it) as fast as possible," Manohar Parrikar, the then Defense Minister of India had said in a statement.
However, Dassault Aviation's half yearly report released on July 26 indicated a grim possibility of early delivery of Rafale to India. The report said that the company could complete manufacturing only four fighter jets in the first half of the current year as compared to seven aircraft in the same time period last year and the deliveries were made to armed forces of Egypt and France.

"The defense export backlog includes, in particular, 15 Rafale to Egypt (compared to 18 as of December 31, 2016), 24 Rafale to Qatar and 36 Rafale to India," said the report.

Nevertheless, Dassault Aviation was upbeat about receiving an additional order of about 700 combat aircraft from the Indian Air Force over the next decade perceiving the threat from neighbors. Dassault Chief Executive Eric Trappier said on July 26 that the company was considering substantial technology transfer to expand the existing Rafale deal with India. "We are building a long-term relationship and I am prepared to study any future for our involvement there (India), whatever it is," Trappier said.However, the Indian Defense Minister has made it clear that purchase of additional combat aircraft cannot be accommodated in the original deal for 36 Rafale fighter jets. He said future deals would be governed by the new defense procurement policy that has a completely different set of guidelines.
"Procurement for the further requirements of fighter aircraft for the IAF will be pursued through the extent procurement procedures," Jaitley added.
The deal between India and France to provide 36 Rafale jets to the Indian Air Force for meetings its critical operational necessity was finalized on September 23, 2016, for a whopping $8.8 billion after numerous hiccups.

 sputniknews

Israel’s Rafael Defence, Kalyani Group to manufacture missiles for Indian armed forces

Israel’s Rafael Defence Systems Ltd has formed a joint venture facility with Kalyani Group to produce anti-tank guided missiles called Spike for the Indian armed forces that are also likely to be exported to South East Asian countries.
Kalyani Rafael Advanced Systems Pvt. Ltd, as the joint venture will be called, has been set up with an investment of Rs60-70 crore, with Kalyani Group holding 51% stake and the Israeli partner keeping the rest. Spike missiles are supplied by Israel to 20 countries, including Nato members. “This is the first private sector facility which will become a missile house,” said Kalyani Group chairman Baba Kalyani. “We will start producing these missiles in weeks for Indian armed forces and we will be seeking government permissions to export it to South East Asian countries like Myanmar, Vietnam, Philippines, Indonesia. These are the potential markets for us.” The joint venture is part of the request Indian armed forces made in 2010 for these missiles.
The order from Indian armed forces is worth about $1 billion, spread over a couple of years, and the final approvals are likely to come in a few weeks, Kalyani said. “Make in India is not about making announcements but making this that India does not make.
This is the first such advanced missile system under Make in India,” Kalyani said. The facility will be 90% localised and parts will be procured locally in Hyderabad. It will create about 300 direct jobs and 1,000 indirect jobs, Kalyani said. Kalyani said this will get technology from Israel and it will not be a “screw driver manufacturing facility operation” like in the past. Kalyani was referring to the fact that foreign technology transfer to India has been difficult. Rafael president and chief executive officer Yoav Har-Even said the factory will also give the firm credits towards its offset obligations in India.
He said the move showed the commitment of Israel to help India’s defence forces’ modernisation with “willingness to transfer technology”. International defence manufacturers have to source products from India for the deals that win under the offset clause. “The establishment of this facility is a sign of our commitment to walk the talk in terms of partnering with Indian industry towards indigenous manufacture,” Har-Even said. The 24,000 sq.ft facility was made in 10 months and was inaugurated by industries ministers Kalvakuntla Taraka Rao on Thursday.
This is the second joint venture factory with an Israeli company by Kalyani Group, which recently announced setting up of a artillery guns facility in Pune. The Hyderabad facility also plans to make gliders bombs as the next product for Indian Armed Forces.

Livemint

Israel’s Rafael Defence Systems Ltd has formed a joint venture facility with Kalyani Group to produce anti-tank guided missiles called Spike for the Indian armed forces that are also likely to be exported to South East Asian countries. Kalyani Rafael Advanced Systems Pvt. Ltd, as the joint venture will be called, has been set up with an investment of Rs60-70 crore, with Kalyani Group holding 51% stake and the Israeli partner keeping the rest. Spike missiles are supplied by Israel to 20 countries, including Nato members. “This is the first private sector facility which will become a missile house,” said Kalyani Group chairman Baba Kalyani. “We will start producing these missiles in weeks for Indian armed forces and we will be seeking government permissions to export it to South East Asian countries like Myanmar, Vietnam, Philippines, Indonesia. These are the potential markets for us.” The joint venture is part of the request Indian armed forces made in 2010 for these missiles. The order from Indian armed forces is worth about $1 billion, spread over a couple of years, and the final approvals are likely to come in a few weeks, Kalyani said. “Make in India is not about making announcements but making this that India does not make. This is the first such advanced missile system under Make in India,” Kalyani said. The facility will be 90% localised and parts will be procured locally in Hyderabad. It will create about 300 direct jobs and 1,000 indirect jobs, Kalyani said. Kalyani said this will get technology from Israel and it will not be a “screw driver manufacturing facility operation” like in the past. Kalyani was referring to the fact that foreign technology transfer to India has been difficult. Rafael president and chief executive officer Yoav Har-Even said the factory will also give the firm credits towards its offset obligations in India. He said the move showed the commitment of Israel to help India’s defence forces’ modernisation with “willingness to transfer technology”. International defence manufacturers have to source products from India for the deals that win under the offset clause. “The establishment of this facility is a sign of our commitment to walk the talk in terms of partnering with Indian industry towards indigenous manufacture,” Har-Even said. The 24,000 sq.ft facility was made in 10 months and was inaugurated by industries ministers Kalvakuntla Taraka Rao on Thursday. This is the second joint venture factory with an Israeli company by Kalyani Group, which recently announced setting up of a artillery guns facility in Pune. The Hyderabad facility also plans to make gliders bombs as the next product for Indian Armed Forces.

idrw.org .Read more at India No 1 Defence News Website http://idrw.org/israels-rafael-defence-kalyani-group-to-manufacture-missiles-for-indian-armed-forces/ .

Indo-Russian Gen-5 fighter gets green light; $6 bn negotiated for joint R&D

The decks are clear for the ministry of defence (MoD) to sanction the long-delayed Indo-Russian project to jointly develop a cutting-edge “Fifth Generation Fighter Aircraft” (FGFA).Business Standard learns that an Experts Group, headed by Air Marshal (Retired) S Varthaman, has submitted a report on July 7, finding that the FGFA project would be beneficial to India.

After MoD bureaucrats objected to the FGFA project on the grounds that it might duplicate, or hinder, the indigenous Advanced Medium Combat Aircraft (AMCA), former defence minister Manohar Parrikar set up the five-person Experts Committee to consider this question.

After deliberating for six months, the Expert Committee has ruled there are no conflict lines between the FGFA and AMCA. In fact, the technological expertise that Indian engineers and designers would gain from working with Russian experts would feed positively into the AMCA project.

Meanwhile, the Defence R&D Organisation, through its subordinate Aeronautical Development Agency, can continue designing the entirely indigenous AMCA – based on its experience in developing the Tejas light fighter.

New Delhi and Moscow signed an Inter-Governmental Agreement (IGA) a decade ago, in October 2007 for Hindustan Aeronautics Ltd (HAL) to partner Russia’s Sukhoi Design Bureau in developing and manufacturing the FGFA. Between 2010-23, HAL and Sukhoi spent $295 million each on a “Preliminary Design” phase.

Now, the two sides are required to sign an “R&D Contract”, which the MoD told parliament on July 5, 2013, would “define the total scope; the work share and responsibilities of each side; and the financial implications of the programme.”

Reliable sources tell Business Standard that India and Russia have negotiated a draft R&D Contract, which commits both sides to spending $6.1 billion on the project –$3.05 billion each.

While India has dragged its heels for a decade since signing the IGA, Sukhoi Design Bureau has already designed the basic flying platform, named Perspektivny Aviatsionny Kompleks Frontovoy Aviatsii, or “Prospective Airborne Complex of Frontline Aviation” (PAK-FA).

At least six PAK-FA prototypes are already participating in flight-testing and flying displays, such as at the recent Paris Air Show. The draft R&D Contract commits Sukhoi to build the eighth, ninth and tenth prototypes for flight-testing in HAL, by Indian Air Force (IAF) pilots.

That means that, if the R&D Contract is signed this year, IAF pilots could be testing FGFA prototypes in Indian skies by 2020.

HAL chief, T Suvarna Raju, declined to comment on the Experts Group report, but told Business Standard that an early conclusion of the R&D Contract would allow HAL to play an important role in developing the PAK-FA flying platform into a combat effective FGFA for the IAF.

“If we join now, we will still get a significant part of the work share, thanks to delays in the PAK-FA project. HAL would co-design the avionics, including navigation systems, radars and weapon aiming devices. This is the heart of the fighter’s combat ability”, says Raju.

Delays in the PAK-FA’s development are attributable partly to hitches in designing a new, powerful engine that would let the fighter “super-cruise”, or travel at supersonic speeds on “dry thrust”, without engaging its fuel-guzzling afterburners. While engine-maker NPO Saturn has struggled to perfect a secretive new engine, dubbed the Izdeliye 30, the PAK-FA has been flying with the relatively underpowered AL-41FI engine – an uprated version of the Sukhoi-30MKI’s AL-31 engine.

However, at the Paris Air Show in July, Russian designers have claimed that the PAK-FA’s new engine would be ready to fly by December.

For the IAF, the FGFA project opens up the assured development of heavy fighters that will succeed the Sukhoi-30MKI, many of which have already completed 15-17 years in operational service. In the medium fighter category, the IAF would have two Rafale squadrons, possibly three if a follow up contract is signed for an extra squadron; and also three upgraded Mirage-2000 squadrons. In the light fighter category, there will be four squadrons of Tejas Mark 1A, and another light fighter for which procurement has been initiated. Amongst the contenders are the Swedish Saab Gripen E, and Lockheed Martin’s F-16 Block 70.

The FGFA is equally crucial for HAL’s Nashik plant, which is now building the last 35 Sukhoi-30MKI fighters of the 272 fighters contracted by the IAF. At a build rate of 12 fighters per year, the Sukhoi-30MKI production line will be idle by 2020. It remains unclear how many FGFA units the IAF will eventually buy, but for HAL Nashik, a production order is essential.

 business-standard

Doklam effect? India said to block Fosun's $1.3 billion Gland purchase

India is poised to reject Shanghai Fosun Pharmaceutical Group Co’s proposed $1.3 billion takeover of an Indian drugmaker, according to people familiar with the matter, scuppering the biggest-ever Chinese acquisition in the country.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has decided to block the Chinese firm’s purchase of an 86 per cent stake in Gland Pharma, said the people.

The companies haven’t been formally notified yet of the move, the people said, asking not to be identified because the information is private.

Tensions between India and China -- the South Asian nation’s biggest trading partner -- have escalated amid a renewed spat over territory in a remote area of the Himalayas, one of the most serious flareups since a border war in 1962. A collapse of the acquisition would be a setback for Fosun Pharma, which had sought Gland Pharma’s stable of generic injectable medicines and facilities approved to manufacture products for sale in the U.S.

“This is almost like a sanction,” said Abhijit Joshi, a mergers and acquisitions lawyer and managing partner at Veritas Legal in Mumbai, who isn’t involved in the deal. “Rejecting a deal like this is almost like sending a signal to say, ‘no Chinese business,’ which means there could be a retaliatory action, trade wise, by China.”


Diplomatic Engagement ::

Fosun Pharma, backed by Chinese billionaire Guo Guangchang, said in an exchange filing Tuesday that Gland Pharma hasn’t received notice on the result of the acquisition review from the Indian government.

The arm of Chinese conglomerate Fosun International Ltd. agreed in July last year to acquire control of Gland Pharma from an investor group including KKR & Co. The setback highlights the difficulties faced by China’s once-prolific acquirers, which are facing mounting pressure at home and abroad. HNA Group Co. recently scrapped the purchase of an in-flight entertainment provider, while Dalian Wanda Group Co. agreed to sell most of its theme-park assets amid scrutiny from regulators.

The Gland Pharma purchase had already completed Indian antitrust filings and been reviewed by the country’s Foreign Investment Promotion Board. Jagdish Thakkar, a spokesman in the Indian Prime Minister’s Office, didn’t return phone calls, while an email sent to Cabinet Secretary Pradeep Kumar Sinha wasn’t answered. Representatives for Gland Pharma and KKR didn’t immediately respond to requests for comment.

“India’s engagement with China is multifaceted. In areas where we have commonality of views, engagement has expanded and upgraded in recent years,” India’s junior Foreign Minister V.K. Singh told lawmakers on Thursday, adding that both sides should be guided by previously agreed principles. “India and China, in their relationship, must not allow differences to become disputes.”


Biggest Market ::

Fosun Pharma said in a July 27 filing to the Hong Kong bourse that it had obtained relevant approvals from Chinese authorities. The acquisition is still subject to the review and approval of India’s Cabinet Committee on Economic Affairs, so the termination date has been further extended to Sept. 26, the filing shows.

Chinese drugmakers have grown more ambitious in seeking deals that will give them access to the U.S., the world’s biggest pharmaceutical market. Valeant Pharmaceuticals International Inc. this year sold its Dendreon Pharmaceuticals unit to Chinese conglomerate Sanpower Group Co. for $820 million. Humanwell Healthcare Group Co., a Chinese maker of anesthetics and contraceptives, is part of a consortium that agreed in June to buy U.S.-based RiteDose for about $605 million.

Chinese companies such as Alibaba Group Holding Ltd., Tencent Holdings Ltd. and Xiaomi Corp. have been investing in India. Alibaba’s finance unit is on the board of Paytm, India’s largest digital payments startup, while Tencent owns a stake in Flipkart Online Services Pvt. Xiaomi, which has invested $500 million in the subcontinent, plans another investment of the size over the next three to five years. India’s trade with China was at $72.3 billion last year, with Chinese exports accounting for 84 percent of the volume.

“From Chinese investment into India for M&A, yes there’s going to be an impact,” Veritas’ Joshi said. “They’re going to be increasingly nervous about investing in India. That capital that was available from China is not going to be available, at least in the short term, which means doing a deal is going to be that much more difficult.”

 economictimes

As Beijing Builds Presence in Indian Ocean, New Delhi Shops for New Submarines

India is seeking to have six non-nuclear submarines built as part of a $12 billion defense program, and has sent a request for information to six foreign shipyards asking if they could fill that order.

France, Germany, Russia Japan and other nations were asked whether they had the capacity to build vessels equipped with air-independent-propulsion systems, which could replace diesel-electric systems by allowing the submarines to operate without access to atmospheric oxygen.

Retired Indian navy commodore and defense analyst Anil Jai Singh told Defense News that India is looking for "a proven, effective, state-of-the-art, electric heavyweight torpedo; a land attack missile, and perhaps even an underwater-to-air missile against enemy helicopters and mines."

Business Insider reported that New Delhi will send out a formal request for a proposal after receiving a response from interested parties, then create a shortlist of three or four shipyards from that group.

India’s Strategic Partner policy dictates that a domestic shipyard must compete for a contract with a foreign one - that, along with others factors, will stretch this process out over a couple years, with one analyst estimating that it could take "a good seven to eight years after a deal is signed" before the first P75I program sub is brought online.

The interest in these vessels comes as India continues to keep an eye on China’s growing presence through the narrow Malacca Strait and in the Indian Ocean, which it has been tracking since 2013.

A US Defense Department report noted in 2015 that missile and attack submarines from Beijing had been operating in those waters, and China claims that it’s only in the Indian emergency missions, anti-piracy patrols, humanitarian aid and other non-military operations.

With 50,000 ships passing through each year, the the 550-mile-long Malacca Strait has become a popular area for pirates.

In May, one source involved with Indian defense said, "The pretext is anti-piracy patrols in the Gulf of Aden … But what role can submarines play against pirates and their [ships]?"

sputnik