Ahead of PM Modi's visit to Israel, India lines up defence deals worth $3 billion

 

Ahead of Prime Minister Narendra Modi's first visit to Tel Aviv later this year, the Cabinet Committee on Security (CCS) has begun to clear a slew of defence deals with Israel. The deals, some of which have been pending for long, are together worth well over $3 billion.

Defence ministry sources on Tuesday said while the deals for Spice-2000 bombs and laser-designation pods have already been cleared by the CCS, the ones for acquisition of two more Phalcon AWACS (airborne warning and control systems), four more aerostat radars and the medium-range surface-to-air missile system (MR-SAM) for the Army are now on the anvil.

TOI had last month reported that most of these deals had reached the final stages of approvals, while the negotiations for the initial Rs 3,200 crore contract for 321 Israeli "Spike" anti-tank guided missile (ATGM) systems and 8,356 missiles were also making some headway after being stalled for months.

Both the 164 laser-designation pods (Litening-4) and 250 advanced "Spice" precision stand-off bombs are meant to arm IAF fighter jets like Sukhoi-30MKIs and Jaguars for greater lethality and accuracy.


The around Rs 10,000 crore joint development of the MR-SAM for the Army, in turn, will follow the similar ongoing DRDO-Israeli Aerospace Industries projects worth around Rs 13,000 crore for the Navy and IAF. The IAF-Navy variants have an interception range of 70-km, while the one for the Army will be 50-km.

The acquisition of two additional AWACS for over $1 billion, in turn, will be a follow-on order to the three such "force-multipliers" already inducted by the IAF under a tripartite $1.1 billion agreement inked by India, Israel and Russia in 2004.The AWACS are basically Israeli early-warning radar suites mounted on Russian IL-76 transport aircraft. With a 400-km range and 360-degree coverage, they are "eyes in the sky" capable of detecting incoming fighters, cruise missiles and drones much before ground-based radars.

Similarly, the four new aerostat radars - sensors mounted on blimp-like large balloons tethered to the ground - will follow the two such EL/M-2083 radars inducted by the IAF under a $145 million deal in 2004-2005.

timesofindia

India, US closer to pact to share military logistics: officials

 

India and the United States are closing in on an agreement to share military logistics after 12 years of talks, officials said, a sign of strengthening defence ties between the countries as China becomes increasingly assertive.
The United States has emerged as India's top arms source after years of dominance by Russia, and holds more joint exercises with it than any other country.
It is in talks with New Delhi to help build its largest aircraft carrier in the biggest military collaboration to date, a move that will bolster the Indian navy's strength as China expands its reach in the Indian Ocean.
After years of foot-dragging by previous governments over fears that the logistics agreement would draw India into a binding commitment to support the United States in war, Prime Minister Narendra Modi's administration has signalled a desire to move ahead with the Logistics Support Agreement (LSA).
That would allow the two militaries to use each other's land, air and naval bases for resupplies, repair and rest, officials said.
Admiral Harry Harris, head of the U.S. Navy's Pacific Command, said the two sides were working on the LSA, another agreement called the CISMOA for secure communications when the militaries operate together, and a third on exchange of topographical, nautical, and aeronautical data.
"We have not gotten to the point of signing them with India, but I think we're close," Harris, due in India this week, told the U.S. House Armed Services Committee on Wednesday.
The progress comes as the countries consider joint maritime patrols that a U.S. official said could include the South China Sea, where China is locked in a territorial dispute with Vietnam, the Philippines and Taiwan among others.
Both sides, though, said there were no immediate plans for such patrols, which drew strong condemnation from Beijing.
An Indian government official said the main impediment to signing the LSA had been cleared, after Washington gave an assurance that New Delhi was not bound by it if the U.S. went to war with a friendly country or undertook any other unilateral action that New Delhi did not support.
"It has been clarified that it will be done on a case-to-case basis; it's not automatic that either side will get access to facilities in the case of war," the official familiar with the negotiations said.
India's previous centre-left government was worried the agreements would undermine India's strategic autonomy and that it would draw it into an undeclared military alliance with the United States.
Concerns linger over the proposed communications agreement, with some branches of the military including the air force fearing it would allow the United States to access their communications network.
U.S. officials said they hoped that once the logistics agreement was signed, the others would follow.
A U.S. defence industry source engaged in business in India said there were expectations the LSA could be sealed by the time U.S. Defense Secretary Ash Carter visited New Delhi in April.
The source said Modi's office was directly involved in the matter and actively considering the agreements as a key for enhanced cooperation.
India has been alarmed by Chinese naval forays into the Indian Ocean and its involvement in maritime infrastructure on island nations that it traditionally considered its back yard.
It has moved to shore up naval forces and build defence ties with Japan and Vietnam, besides the United States.
"There is growing convergence between Obama's Asia pivot and Modi's Act East policy," said Saroj Bishoyi, an expert on the proposed India-U.S. collaboration at the government-funded Institute for Defence Studies and Analyses in New Delhi.
"The LSA currently appears to be a doable agreement."

 ibnlive

Defence budget raises serious questions about India’s national security plans

 

When it comes to the defence budget, there were three things that surprised many observers yesterday. First, in a break from tradition, the finance minister Arun Jaitley did not mention the outlay for defence in his budget speech to the Lok Sabha. Second, the budget documents had halved the eight demands of defence budget to four, rearranging them more logically into Revenue demand and Capital demand for defence services, defence pensions and another demand for all the other expenses under the defence ministry.
And third, the numbers of the defence budget, for the first time since the mid-1980s, has also included defence pensions.  These are, however, insignificant issues compared to major concerns raised by the defence budget. The allocation for the next year is only 1.71 per cent of the GDP, perhaps the lowest since the 1962 India-China war. Even if defence pensions are included, the budget amounts to 2.26 per cent of the GDP, which is far lower than the 3 per cent of GDP recommended by the Parliamentary Standing Committee on Defence in its reports spanning a decade.
 The yardstick of 3 per cent of GDP is important because the defence services formulate their Long Term Integrated Perspective Plan (LTIPP) which prioritises their procurement over the next 15 years based on that yardstick. Continued shortfall in defence allocation by that yardstick means that the gaps in defence modernization widen with every passing year. While the desirable equipment profile of the armed forces, as per the defence secretary’s testimony to Parliamentary Standing Committee last year, is 30:40:30 (30 per cent state-of-the-art, 40 per cent current and 30 per cent nearing obsolescence), experts estimate the current profile to be 15:45:40.
Any more deterioration of the profile – an inevitability considering the budgetary allocation — will constrain the defence services from fulfilling their primarily role of defending the country.  Related to the issue of overall defence allocation is the proportion of the budget earmarked for capital expenditure, which is used to buy weapons and military equipment. While the budget allocates Rs 82,332 crore for pensions and Rs 95,852 crore for salaries, it allocates only Rs 78,586 crore for capital expenditure by the defence services. A significant portion of that amount, to the tune of 60 per cent, is already committed to paying for weapon systems and military platforms already bought by the defence services. Even then, the defence ministry could not spend 13.5 per cent of its capital budget for the defence services this year.
 This limitation of non-availability and non-expenditure of funds for new procurement is reflected in the fact that the defence ministry has been unable to sign many new major deals this year. Rafale fighters, M-777 artillery guns and Russian frigates are prime examples of equipment where deals could not be signed.  A lot of focus in defence procurement in recent years has been on bureaucratic procedures and decision making. The defence ministry has also been very vocal about the Make in India scheme, with little to show for as results. Revision of Defence Procurement Procedure and other related policies are important but perhaps not critical to the problems.
 It is much more about the resources available to the defence ministry to buy big-ticket equipment.  In simple words, the defence budget may seem high in numbers, but a large portion is committed to just paying the soldiers and ex-servicemen. There is little money available to buy new weapons, and even among that, that money is already committed to equipment under supply. This puts a serious question mark about India’s national security plans. Let’s hope the parliament will devote time to raise that question when it discusses the union budget.

 indianexpress

When it comes to the defence budget, there were three things that surprised many observers yesterday. First, in a break from tradition, the finance minister Arun Jaitley did not mention the outlay for defence in his budget speech to the Lok Sabha. Second, the budget documents had halved the eight demands of defence budget to four, rearranging them more logically into Revenue demand and Capital demand for defence services, defence pensions and another demand for all the other expenses under the defence ministry. And third, the numbers of the defence budget, for the first time since the mid-1980s, has also included defence pensions.
These are, however, insignificant issues compared to major concerns raised by the defence budget. The allocation for the next year is only 1.71 per cent of the GDP, perhaps the lowest since the 1962 India-China war. Even if defence pensions are included, the budget amounts to 2.26 per cent of the GDP, which is far lower than the 3 per cent of GDP recommended by the Parliamentary Standing Committee on Defence in its reports spanning a decade.

The yardstick of 3 per cent of GDP is important because the defence services formulate their Long Term Integrated Perspective Plan (LTIPP) which prioritises their procurement over the next 15 years based on that yardstick. Continued shortfall in defence allocation by that yardstick means that the gaps in defence modernization widen with every passing year. While the desirable equipment profile of the armed forces, as per the defence secretary’s testimony to Parliamentary Standing Committee last year, is 30:40:30 (30 per cent state-of-the-art, 40 per cent current and 30 per cent nearing obsolescence), experts estimate the current profile to be 15:45:40. Any more deterioration of the profile – an inevitability considering the budgetary allocation — will constrain the defence services from fulfilling their primarily role of defending the country.
Related to the issue of overall defence allocation is the proportion of the budget earmarked for capital expenditure, which is used to buy weapons and military equipment. While the budget allocates Rs 82,332 crore for pensions and Rs 95,852 crore for salaries, it allocates only Rs 78,586 crore for capital expenditure by the defence services. A significant portion of that amount, to the tune of 60 per cent, is already committed to paying for weapon systems and military platforms already bought by the defence services. Even then, the defence ministry could not spend 13.5 per cent of its capital budget for the defence services this year.
This limitation of non-availability and non-expenditure of funds for new procurement is reflected in the fact that the defence ministry has been unable to sign many new major deals this year. Rafale fighters, M-777 artillery guns and Russian frigates are prime examples of equipment where deals could not be signed.
A lot of focus in defence procurement in recent years has been on bureaucratic procedures and decision making. The defence ministry has also been very vocal about the Make in India scheme, with little to show for as results. Revision of Defence Procurement Procedure and other related policies are important but perhaps not critical to the problems. It is much more about the resources available to the defence ministry to buy big-ticket equipment.
In simple words, the defence budget may seem high in numbers, but a large portion is committed to just paying the soldiers and ex-servicemen. There is little money available to buy new weapons, and even among that, that money is already committed to equipment under supply. This puts a serious question mark about India’s national security plans. Let’s hope the parliament will devote time to raise that question when it discusses the union budget.
- See more at: http://indianexpress.com/article/explained/arun-jaitley-defence-budget-raises-serious-questions-about-indias-national-security-plans/#sthash.VU0OuUVo.dpuf

Indian Air Force Has Only 32 Squadrons - Lowest In A Decade

The Indian Air Force has just 32 squadrons of fighters - the lowest in a decade - to guard the Indian skies, top IAF commanders have confirmed to NDTV.

Defence Minister Manohar Parrikar has flagged the worry with Prime Minister Narendra Modi and made a detailed presentation recently on the operational difficulties that the IAF faces because of the depletion in fighters.

After the air force de-commissioned three of the aging Russian-made MiG 21 squadrons, bringing down the total number from 34 to 31 fighter squadrons, an additional squadron of the Russian-made Su-30 MKI has been raised.

The Indian Air Force needs at least 42 squadrons of fighters to protect its western and northern borders with Pakistan and China. By 2019 -2020 it will lose another 14 squadrons of the vintage MiG 21s and MiG 27s. There are 16-18 planes in one squadron.The force now depends on Su-30 MKI and MiG 29s, the British-made Jaguar and French-made Mirage 2000s. An upgrade of the Jaguar fighters being carried out by the public sector Hindustan Aeronautics Limited or HAL has been delayed by two years.

The government's plan to plug operational gaps by inducting 36 French-made Rafale fighters and with indigenously made Tejas fighters too hasn't come through yet.

Commercial negotiations with France for the Rafale are far from over and although the IAF has agreed to induct Tejas fighters, it is yet to get the first aircraft.

The Tejas - which was showcased at the Baharin air show for the first time this year - has not yet got a Final Operational Clearance (FOC).

The aircraft - in the making for over 3 decades - had several deficiencies, which are now being addressed by HAL in consultation with the IAF.

"Its performance at Baharin was however encouraging and we hope the FOC comes through soon," a senior officer said, adding, the "IAF is ready to induct as many Tejas fighters as possible to plug the gaps."

"Till recently, we were more interested in defending the process of acquisition, then the outcome, and as a result no one really cared about requirements and operational preparedness," the officer said, referring to the decade-long talks to acquire medium multi-role fighters from France, which the Narendra Modi government had to cancel because of severe infirmities in the negotiations.

 ndtv

US close to signing defence deals with India

The U.S. is close to signing three foundational agreements with India in fields of defence and communications that will give a big boost to the bilateral ties, a top American military commander has said. “We were moving out aggressively in technical field with DTTI (Defence Technology and Trade Initiative),” US Pacific Command Commander Admiral Harry Harris said in response to a question on India-US defence relationship.

One of those is the LSA — Logistics Support Agreement — which allows us to do the cross servicing — acquisition cross servicing, for example, he said during his testimony before the House Committee on Armed Services.

“Another one is called the CISMOA (Communications and Information Security Memorandum of Agreement), and it involves communications security so that we can be assured that India will protect our communications as we would protect theirs,” Harris said.

The Pacific Command Commander is headed to India next week for a wide range of talks with his Indian counterparts.

PTI/hindu

‘Asia will be divided if India joins US patrols’

Any move by India to join the US Navy to jointly patrol the disputed South China Sea will be against its national interest, would divide Asian countries and further escalate regional tensions, a state-run Chinese daily said on Friday.
The Chinese media’s reaction came after it was reported in January that the US and India had talked about launching joint naval patrols in the South China Sea for safeguarding freedom of navigation. But India clarified there would be no such patrols and the US also subsequently denied having any such plan.
“Military collaboration between Washington and New Delhi has been heating up in recent years. Nonetheless, the only purpose of the latter to conduct bilateral naval patrols with the former without its interests being hurt is to meet the demand of the largest world power,” an article in the state-run Global Times said on Friday.
“In this way, the US can include India as a ‘vassal state’ like Japan and Australia, which will damage India’s dignity and deter its pursuit to become a great power,” it said.
Playing up India’s concerns over the US’s move to sell F-16 fighters to Pakistan, the article said “even though New Delhi obeys Washington, it’s not likely that it will see the desired return”.
“The White House’s sale of fighter planes to Pakistan provides the latest example,” it said.
“India once mulled over deepening its military cooperation with the US in hope that the latter would cancel the endorsement for its perennial regional rival. But the US has its strategic needs by the sale of weapons and has never changed minds despite India’s long-running objection,” it said.
Playing down reports that India may join joint patrols with the US in the South China Sea where Beijing is locked in a major confrontation, the article said any such move by India would divide Asian countries.
If New Delhi chooses to follow in US’ footsteps, it means the country is taking part in US’ “pivot to Asia” strategy and adopting a major strategic shift, the report said. “This move will inevitably divide Asian nations into two camps.”

 asianage

Parrikar: Get 314 deals cleared in 3-4 months

The defence ministry on Tuesday took stock of the various modernisation projects for the armed forces, holding that arms acquisition proposals worth Rs 1.5 lakh crore were cleared by the NDA government since it assumed office in May 2014.
"Of them, 81schemes have fully matured. Moreover, another 66 schemes worth around Rs 2 lakh crore have been accorded AoN (acceptance of necessity or preliminary approvals) over the last two years," a defence ministry official said.
 After the defence acquisitions council (DAC) meeting chaired by Manohar Parrikar on Tuesday evening, officials said "a letter of intent" had been issued to Goa Shipyard for the Rs 32,000 crore project to construct 12 mine counter-measure vessels (MCMVs) for the Navy with foreign collaboration. The DAC also cleared the followon order for 619 high-mobility 6x6 vehicles from the Tatas at a cost of Rs 457 crore.

TOI had earlier reported that while the NDA government has indeed set a scorching pace to clear new defence acquisition proposals, the follow-through has been slow to ensure they swiftly lead to inking of actual contracts. At the DAC meeting, Parrikar took note of the fact that despite "concerted efforts" there were 314 cases which had not yet fructified. "Of them, 86 schemes worth Rs 1.5 lakh crore are now close to the final stages of approval. The minister directed all concerned that efforts must be made to get them cleared in the next four to five months," the official said. Parrikar also advised the Army, Navy and IAF to review their acquisition projects which have been pending for long, and are yet to fructify, for their "contemporary relevance".
The three Services will now take forward "only the relevant schemes" and junk the rest after the review. The minister also reviewed proposed capital acquisition proposals and budgetary requirements of the three Services for the next 10 years. "This will be an ongoing exercise to refine and further mature the long-term budgetary planning," the official said.

timesofindia

Defence ministry to review carbine procurement, missile system project with France

A high powered meeting to be steered by Defence Minister Manohar Parrikar is set to take a fresh look at the stuck close quarter carbine procurement plans of the Indian Army and take stock of the long pending short range surface to air missile system (SRSAM) that is to be jointly developed with France.
The MoD is likely to give a go ahead for a Rs 2300 cr order for constructing a new line of large survey vessels. A detailed update on the Maitri SRSAM project is likely to be discussed at the meeting as well.
Parrikar, who is currently reviewing the defence procurement process, is to be given a detailed briefing on the Close Quarter Carbine project and is also likely to discuss further reforms on the purchase process.
Several projects are expected to come up at the Defence Acquisition Committee (DAC) meeting on February 23, including a proposal for the construction of four large survey vessels. Sources have told ET that the defence ministry could give a go ahead for the project.
Also to be discussed is the much delayed procurement of new short range carbines for the army. The army has long retired its carbine and has been hunting for replacements for several years without success.
A tender was issued in 2010 to import 44, 600 carbines and trails were competed in 2013 with Beretta, IWI and Colt. However, the project has been stuck since then as only one of the three competitors – Israeli IWI – qualified as the `night sights’ of the other two failed.
A final decision on going ahead with the project is expected shortly with the Army exploring an option to separate `night sights’ with the main contract that will enable at least two of the three competitors to qualify. The sights could then be made separately by BEL. The other option would be to cancel the tender and start the acquisition process afresh.

ET

Mountain Warfare Against China: US Plans to Sell 145 Guns to India

 

The United States submitted a letter of acceptance to India’s Ministry of Defense (MOD) approving the procurement of 145 M777 Ultra Lightweight Howitzers for the Indian Army, The Times of India reports.
According to sources within India’s MOD, the Pentagon’s letter of acceptance, submitted under the U.S. foreign military sales (FMS) program, will lead to a government-to-government contract within the next 180 days, should New Delhi accept the offer.
The $700 million deal has been in the making since 2008. It suffered from repeated delays and was close to being scrapped until the Indian government under Prime Minister Narendra Modi revived negotiations with the U.S. government and the defense contractor BAE Systems, the producer of the M777 155 mm 39-caliber towed gun, last year.
The Pentagon’s offer for the 145 lightweight howitzers–next to outlining delivery schedules, technical, material, and spares support–also includes a 30 percent offset clause under the “Make in India” initiative. This mandatory offset requires that 30 percent (around $210 million) of the contract value needs to be reinvested back into India’s indigenous aviation or defense sector.
“While the first lot will be delivered directly, the bulk of the 145 howitzers (manufactured by BAE Systems) will be assembled in India over three years,” according to a MOD source.
BAE Systems announced last week that it will partner with the Indian company Mahindra to fulfil the requirements of the “Make in India” clause and offer a higher degree of indigenization on the M777 lightweight howitzers.
“As a founding partner of defense manufacturing in India, BAE Systems is pleased to partner with Mahindra on our offer to develop an Assembly, Integration and Test facility in India. The facility is a fundamental part of the M777 production line,” said a representative of BAE Systems.
“A domestic Assembly, Integration and Test facility will enable the Indian Army to access maintenance, spares and support for the M777 locally. We will continue to support the two Governments to progress to contract agreement so that we may begin the process of ‘Make in India’ for M777.”
The M777 allegedly is the world’s first 155 millimeter howitzer weighing less than 10,000 pounds (4,218 kilograms). Partly made of titanium, the gun can be airlifted swiftly to high-altitude terrain and is ideally suited for mountain warfare. The M777 has a firing range of up to 25 kilometers.
The Indian Army plans to induct the new gun into its new 17 Mountain Strike Corps, which is to be stood up by 2021. The new corps, intended to counter China’s growing capabilities, originally was supposed to have a strength of 90,274 men. However, in April 2015, Indian Defense Minister Manohar Parrikar announced that he would cut the size of the corps by more than half, to 35,000.
The Indian military has not been able to procure a new howitzer since 1987, despite the known utility of artillery in mountain warfare as seen in the 1999 Kargil War with Pakistan. As I reported previously, the Indian army’s 1999 Field Artillery Rationalization Plan aimed to acquire 2,800-3,000 155 mm/52-caliber guns of all kinds and 155 mm/39-caliber lightweight howitzers by 2027.

 thediplomat

Brazil looks to sell its basic trainers to IAF

 

Brazil’s Embraer company will be showcasing its basic trainer A-29 ‘Super Tucano’ at the forthcoming DefExpo in Goa for the first time.
Keeping in mind that the Super Tucano’s role will not be limited to training alone, the company has equipped the A-29 (the Super Tucano version for the Brazilian Air Force) with systems designed not only to comply with basic requirements, but also to keep pace with the continual changes taking place in the aircraft’s potential operating theatres.
Talking to FE, Brazilian ambassador to India Tovar da Silva Nunes said, “Embraer is already present in India and we will be getting the A 29 Super Tucano for the DefExpo next month.”
Embraer has been present in India both in the defence and civil sector, the envoy pointed out. According to an officer in the Indian Air Force (IAF), “It will be interesting if the Super Tucan light attack trainer is considered for atleast evaluating. While the plane is not very expensive it can be used by the armed forces carrying out counter insurgency operations.”
The A-29 of the Embraer is a powerful turboprop aircraft capable of carrying out a wide range of light air support (LAS) missions, even operating from unimproved runways. With more than 130 weapons configurations certified, it is equipped with advanced electronic, electro-optic, infrared and laser system technologies, as well as secure radio systems with data links and unrivalled munitions capacity.
“The Super Tucano is the only combat proven and fully operational light attack/advanced training aircraft in the global market. This makes it highly reliable and allows for an excellent cost-benefit ratio for a wide range of military missions, even operating from unpaved runways and in hostile environments,” said Nunes.
With more than 140 certified load configurations, it is equipped with advanced electronic, electro-optic,
infrared and laser system technologies, as well as secure radio systems with data links and unrivalled munitions capacity.
The Super Tucano is proving to be an innovative and cost-effective solution for demanding military organizations around the world. It is ideal for the missions and operational environment faced by a host of nations. The A-29 Super Tucano is currently used by twelve air forces in three continents. It was also selected by the US Air Force  for its LAS programme.

 financialexpress

India set to seal major power deal in Bangladesh, beating China

* A major breakthrough for India in Bangladesh
* India, China regional rivalry heating up
* Indian govt offers easy financing for power plant
* Bangladesh seen as part of China's "String of Pearls"
By Sankalp Phartiyal and Ruma Paul
NEW DELHI/DHAKA Feb 22 (Reuters) - A state-run Indian firm is poised to seal a contract to build a $1.6 billion power plant in Bangladesh, beating out a Chinese competitor in the latest commercial tussle between the region's two dominant powers.
After China's recent success in pushing development projects in Sri Lanka, a breakthrough in Bangladesh would be welcome news for Indian officials who have long fretted over Beijing's encroachment on to territory it considers its own back yard.
India believes Bangladesh is a part of a "String of Pearls" China is building across the Indian Ocean that stretches from Gwadar port in Pakistan to Djibouti on the African coast where it is building a naval base.
After years of negotiations, India's Bharat Heavy Electricals Ltd (BHEL) will sign a contract to build a 1,320-megawatt (MW) thermal power station in Khulna in southern Bangladesh on Feb. 28, officials in New Delhi and Dhaka said.
 
China's Harbin Electric International Company Ltd, which has power projects in Iran, Turkey and Indonesia among others, lost the bid on technical grounds, said a Bangladesh official, speaking on condition of anonymity since he was not authorised to talk to journalists.
But Anwarul Azim, a spokesman for the Bangladesh-India Friendship Power Company Limited, a joint venture set up to build the coal-fired plant, said BHEL was the lowest bidder.
The Indian government's external lending arm, the Exim Bank, has backed up BHEL's offer with nearly 70 percent funding of the project's costs at a soft interest rate of around 1 percent above Libor, the leading global benchmark for pricing transactions, an Indian government official said.
He declined to be named, saying the two sides were about to seal the contract.
On Friday, Libor stood at 1.13 percent for a dollar loan for a year.
"Exim is very positive about it, very bullish about it and looking to taking this forward," David Rasquinha, the bank's deputy managing director, told Reuters of the Khulna project.
It would be the biggest foreign project by an Indian power firm, eclipsing a plant already built in Rwanda and a planned one in Sri Lanka.
Officials at China's Harbin who dealt with the bid were not immediately available for comment.
But an employee in the after-sale service department said: "The company has been involved in many such tenders, it is very normal - either we win or lose the bids."

 .reuters

9% hike in defence budget allocation likely this year

India’s defence budget is likely to see a modest hike of 9% to Rs 2.68 lakh crore in 2016-17 while thepension bill alone may go up by over Rs 80, 000 crore.
Further the defence ministry is likely to surrender Rs 12,400 crore, or 16% of the Rs 77,406 crore earmarked for acquisitions under the capital head since several projects could not be processed on time by the three service headquarters, officials told ET.
If pensions and civil expenses of the ministry are also counted, the budget for 2016-17 will increase about 13% to Rs 3.5 lakh crore from Rs 3.1 lakh crore. The pension bill is set to zoom in the next fiscal owing to the expected implementation of the one rank, one pension plan. The total payout for the current fiscal is still unclear.
In 2015-16, Rs 77,406 crore of the Rs 93,675 crore allocated to the defence ministry was earmarked for acquisition of weapon systems for the three forces. The forces have not been able to exhaust their committed liabilities this year in some cases. Officials said this happened because the payments for previous procurements are to be disbursed after reaching certain milestones such as the delivery of a weapon system or a developmental achievement. “In some cases, deliveries or milestones could not be ensured on time by the departments.
This has resulted in some funds for committed liabilities also lapsing,” a senior official said on condition of anonymity. The government has brought in several reforms this year to speed up the acquisition process.

ET