Indicia Knowledge Brief A Daily Assessment on Indian Defence and Internal/Homeland Security February 21, 2015. Primary aims of Indicia Daily Brief are two-fold. First, it distills infinite information into a capsule form, thus saving precious time of its clients. Second, it tries to link micro-events to larger strategic canvas through its analyses, thus providing support knowledge for better understanding and decision-making. Indicia Analysis of the Day Amidst various countries and different foreign firms thronging to the Aero India show, assurance of cooperation by the visiting Israeli defence minister has a lot of promise. Moshe Ya'alon’s offer of all help and technology to make Modi's 'Make in India' initiative a great success is probably the biggest takeaway for India. A top US official’s confirmation that the negotiations on Defence Technology and Trade Initiative (DTTI) are taking place at a faster pace since Narendra Modi government came to power is a positive sign for both the countries. Airbus Defence & Space appears to have emerged as the sole bidder for a global tender put out by New Delhi’s Defence Research and Development Organisation (DRDO) for an “AWACS India” programme. I. National Defence and Security: Make in India: Israeli defence minister Moshe Ya’alon meets PM Narendra Modi, promises technological support: Moshe Ya'alon, the first Israeli defence minister to visit India since bilateral diplomatic ties were established over two decades back, has said that defence cooperation between the two countries are often carried out behind the scenes and offered all help and technology to make Modi's 'Make in India' initiative a great success. Ya'alon, who met Modi on February 19 and offered defence technology towards Make in India initiative talked about the growing Indo-Israel defence and security relations at a conference organised by the Observer Research Foundation. "Our relations with India have become strong because of common values, interests and respect. Both countries have found ways to cooperate on security and defense behind the scenes," he indicated growing security ties were being expanded away from the public domain. Israel has emerged as India's second-biggest arms supplier after Russia over the past two decades. Pointing out that Israel has rich experiences in turning disadvantages into advantages in many sectors like defence and security, agriculture and water, Ya'alon offered his country's experiences, technology and know-how in assisting India advance further as both respect each other and have common interests. "We are optimistic on implementing PM Modi's vision and we're hopeful that we can cement our partnership with India with PM Modi at the helm."..... Source: http://economictimes.indiatimes.com/news/politics-and-nation/make-in-india-israeli-defenceminister-moshe-yaalon-meets-pm-narendra-modi-promises-technologicalsupport/articleshow/46306787.cms * DTTI talks moving fast after Modi govt took over: US official: A top US official on February 20 said the negotiations on Defence Technology and Trade Initiative (DTTI) are taking place at a faster pace since Narendra Modi government came to power. "I'm one of Deputies to Frank Kendall (Under Secretary of Defense) who is spearheading Defence Technology and Trade Initiative. Since your ( Lok Sabha) election we have seen very very rapid increase in connectivity between our nation and your nation around the DTTI," US Principal Deputy Assistant Secretary of Defense for Research and Engineering Alan R Shaffer told reporters. "I found Prime Minister Modi's speech quite remarkable and clear in his vision," he said referring to the inauguration of Aero India 2015 show by the Prime Minister, who made a strong pitch to end India's dependence on defence imports and asked foreign firms not to be just "sellers" but "strategic partners". Listing out the bilateral meetings held at different levels, including those between Modi and US President Obama, he said "...we have solid proposals in several areas that will lead to co-development and co-production. We are also seeing series of interchanges between researchers and builders in both the countries."..... Source: http://economictimes.indiatimes.com/news/politics-and-nation/dtti-talks-moving-fast-after-pmnarendra-modi-govt-took-over-us-official/articleshow/46304861.cms * Airbus in talks with M&M, RIL, Tata Group to jointly make military helicopters: Airbus Helicopters said on February 20 it is in talks with Mahindra and Mahindra Reliance Industries and Tata Group to jointly make military helicopters, to comply with rules aimed at helping the nascent local defence industry. The company, a unit of Airbus Group, is offering to build its light utility AS550 Fennec and the medium lift EC725 for India's armed forces, which are heavily dependent on an ageing fleet of Cheetah and Chetak helicopters. "We are in the selection process, talking to different industries to form a JV (joint venture)," Rainer Farid, a senior Airbus Helicopters executive told Reuters on the sidelines of the Aero India airshow in Bengaluru on February 20. Under Prime Minister Narendra Modi's " Make in India" initiative, foreign contractors used to selling directly to New Delhi must form partnerships with local companies and transfer more of the work to help grow the nascent defence industry. India last year scrapped the planned acquisition of 197 light utility helicopters so that it could launch a new competition reserved for domestic companies that form joint ventures with foreign suppliers. In addition to Airbus, other firms including U.S.-based Sikorsky Aircraft and Russian Helicopters are also expected to bid for the order. State-run Hindustan Aeronautics is the only Indian company producing helicopters, meaning that global defence firms are likely to have to partner with a private company building a product for the first time and from scratch...... Source: http://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/airbus-in-talks-withmm-ril-tata-group-to-jointly-make-military-helicopters/articleshow/46310790.cms * Want to jointly make futuristic products with India: Russia: Keen to continue its dominant position in the Indian defence market, Russia says it is willing to partner with India to jointly make products that will "find the markets of the future". Promising a whole array of technological transfer and joint production under 'Make in India' initiative, the Russian manufacturers said they are eager to partner with Indian private firms too, especially in the booming aerospace sector. Terming 2015 a "very important year", state-owned United Aircraft Corporation's (UAC) President Yuri Slyusar said he is hopeful that the much delayed plans for the joint production of the Fifth Generation Fighter Aircraft (FGFA) with India will take off with full steam this year. He also hoped that the joint production of the Multi-role Transport Aircraft will firm up. "2015 is a very important year when we would go from preliminary design to a detailed design. I would like to stress the point that the depth of cooperation that we have with India, we don't have it with any other country," he said speaking on the sidelines of the Aero India air show. United Aircraft Cooperation is an umbrella organisation of Russian aerospace industry...... Source: http://economictimes.indiatimes.com/news/politics-and-nation/make-in-india-want-to-jointlymake-futuristic-products-with-india-says-russia/articleshow/46309811.cms * Russia Ready to Send More MiG-29K Fighters to India: "The Indian Navy plans to establish three naval aircraft squadrons that will fly MiG-29K/KUB. Two of the squadrons will be deployed to two aircraft carriers, while the third one will be used for training," Sergei Korotkov, who heads Russian Aircraft Corporation MiG, told RIA Novosti. Moscow and New Delhi are discussing the possibility of creating a joint venture to manufacture the Ka-226T light multirole helicopter in India. Russia, India Consider Joint Production of Ka226T Helicopters. If India's Ministry of Defense decides to increase its MiG29K/KUB fleet, the design bureau will be able to complete this order, Korotkov added. India's first squadron, comprising of 12 MiG-29K/KUB fighter jets, was established in 2013. In January 2010, New Delhi and Moscow signed a deal worth $1.2 billion for the delivery of additional 29 MiG-29Ks to the Indian navy. "Our cooperation does not amount to aircraft delivery. Indian companies supply high-end systems for MiG-29K/KUB. Our test pilots helped their counterparts to master new projects," Korotkov said. India is MiG's top priority partner worldwide, he added. Source: http://sputniknews.com/military/20150219/1018471063.html * Russia confident it can sign fighter jet deal with India in 2015: Russia is confident it can sign a long-delayed final agreement with India this year to jointly produce a new generation stealth fighter jet, the aircraft manufacturer's president said. Russia and India have been haggling over the terms of the Fifth Generation Fighter Aircraft (FGFA) programme since the two countries first signed an initial contract in 2010. New Delhi has raised concerns about how its fighter jet will differ from the Russian model, the T-50, and about the amount of technology Russia was willing to transfer to India. "We are in the final stage of negotiations for the FGFA contract," United Aircraft Corporation's (UAC) Yuri Slyusar told a press briefing at the Aero India airshow in Bengaluru. "We think there is a possibility to sign the agreement within 2015. At least the Russian side think it will be done in 2015," he said. India is keen to get its hands on state-of-the-art fighter jets and modernise an airforce which relies on a disparate fleet of ageing Russian-made MiG and French Mirage fighters, along with more modern Russian Sukhoi Su-30s. "FGFA planes are important in terms of future capability," Air Force Chief Arup Raha said at the airshow on February 19. Raha said it was difficult to give a firm timeline for signing a final agreement with Russia, whose arms supply relationship with India reached its peak during the Soviet era. The Sukhoi T-50, which the Russians are still testing, is one of only a handful of fifth-generation fighters. Lockheed Martin's F-22 Raptor and F-35 Lightning II are the only combat-proven jets with stealth capability that enables them to avoid radar detection. China is also testing its own fifth-generation fighters, the J-11 and J-20..... Source: http://in.reuters.com/article/2015/02/19/airshow-india-stealth-idINKBN0LN1BW20150219 * Would Be a Shame if Avro Replacement Project is Delayed: Airbus: With no decision in sight yet over the Airbus-Tata consortium's bid to replace IAF's ageing fleet of 56 Avro aircraft with C-295 transport carriers, the European aviation major said it would be a "shame" if the project is delayed further. Terming the bid of C-295 as an "elegant opportunity" for the government's push for 'Make in India', Airbus said they cannot be faulted for being the only bidder. "It is a very elegant opportunity to move forward with Make in India and it would really a shame if we delay it for any reason precisely at a time when that is so high on nation's agenda," Kieran Daly, spokesperson of Airbus' Military aircraft, told PTI. He was replying to a question if the delay works against the concept of 'Make in India'. Daly said he understands that there is a discussion about moving ahead when Airbus-TATA are effectively the sole bidder..... Source: http://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/would-be-a-shame-ifavro-replacement-project-is-delayed-airbus/articleshow/46311988.cms * India-Nepal officials discuss bilateral issues at border summit: India and Nepal discussed border security, people's movement, cross border trade and tourism and agreed to jointly promote the tourism in both countries at the first two- day 'Border Summit' at Birganj city of Nepal near Indo-Nepal border organized by the consulate general office of India. Ranjit Rae, Indian ambassador to Nepal, said PM Narendra Modi's visit to Nepal has strengthened relation between the two neighboring countries and cleared several road blocks. On February 19, the first day of the border summit Indian, Rae inaugurated the summit and Snehlata Kumar, secretary, India border management, Delhi, Rizwan Ansari, former state minister for home affairs, Nepal, Damodar Regwi, deputy director, customs, Nepal, Anju Ranjan, consul general of India in Nepal, and Kishori Lall ,customs commissioner, Patna, besides other policy makers spoke on the occasion. On February 20, the second day of summit, officials and experts of both the countries discussed several topics regarding security, border trade and tourism. Regwi stressed on the need to relax customs norms on border and also expressed his concern over denial of entry to sugarcane loaded tractors of bordering Parsa and Bara districts in Nepal into Bihar territory to supply sugarcane to mills of East and West Champaran districts. It may be recalled that SSB officials stopped Nepal tractors laden with sugarcane at Raxaul customs check-posts for last one week and SSB commandant Rakesh Kumar said they hade sought instructions from above in this regard. Rae said the border summit assumed significance because both countries sharing a common culture had people to people contact along 1870 km open border. In a unique initiative, border guarding force has replaced its gun-toting troops with a smiling noncombatized personnel team to interact and frisk people who cross over to India from international border of Nepal. This protocol has been put in place by SSB keeping in mind India's good relations with Nepal and the fact that a large numbers of civilians cross over to both the sides for their regular business. Ranjan said both the countries had signed an MoU to enhance cooperation on tourism and trade on the sidelines of the 18th SAARC summit held at Kathmandu recently. India and Nepal have agreed to jointly promote the Budhist circuits in India and Nepal. Umakant Parajuli, joint secretary, culture, tourism and civil aviation, Nepal, said both the governments with the co-operation of private sectors will run buses from Kathmandu to Varanasi, Bodh Gaya, Lumbani and Ayodhya to Janakpur, Kathmandu to Kamakhya soon. Source: http://timesofindia.indiatimes.com/india/India-Nepal-officials-discuss-bilateral-issues-at-bordersummit/articleshow/46319664.cms? * Israeli Defence Minister Arrives at Aero India Expo; Arms Supply Deals Lined up: Israeli defence minister Moshe Ya'alon has arrived in India in what looks like a whirlwind tour. He is expected to take in the Aero India 2015 expo where Israeli companies are present in full strength and have attracted significant footfalls. Ya'alon is accompanied by senior executives from Israeli defence firms. His visit is expected to carry forward the defence and political ties between the two countries even further. The two democracies established full diplomatic relations only in 1992, and ties have seen an upswing since the NDA government of Prime Minister Narendra Modi was elected to power in May 2014. India is the largest buyer of Israeli equipment and Israel is India's second largest supplier of weapons after Russia. a'alon's Visit Marking the first ever visit by an Israeli defence minister, Ya'alon attended the biennial Aero India show, considered the largest such display in all of Asia. He acknowledged India's importance to the Israeli defence industry. "We are open to more or less (selling) anything. We believe that we have the better product," the Israeli defence minister said at the Israeli pavilion. Israel's Rafael Advanced Defence Systems and Elbit Systems have displayed an array of their latest weaponry. Some of the likely deals to be signed during the visit include two Phalcon AWACS (airborne warning and control system) and four aerostat radars, in a deal worth almost $1.5 billion or ₹9,330 crore..... Source: 623887 http://www.ibtimes.co.in/aero-india-2015-israeli-defence-minister-sign-arms-supply-deals- * Munjals may pip Mahindras to bag Pipavav Defence: The Munjal family, which raised Rs 1,800 crore by selling a 3.3 per cent stake in Hero MotoCorp on February 18, is likely to announce a takeover of Pipavav Defence by this weekend, a banking source said. The Munjals, promoters of Hero MotoCorp, had managed to close the deal by offering a better valuation and agreeing to management control of Pipavav Defence by its promoters, the Gandhis, the source added. An agreement between the Gandhis and the Mahindra group was ready for last weekend. The Mahindras had made a better offer than others — impressed with Pipavav Defence's order book of Rs 12,000 crore. The Mahindras had valued Pipavav Defence at Rs 4,000 crore, whereas the current market value is Rs 5,863 crore — based on February 19 closing. Source: http://www.business-standard.com/article/companies/munjals-pip-mahindras-to-bag-pipavavdefence-115021900821_1.html * Akash Missile System all set to enter into Mass-Scale Production: Bharat Electronics Limited (BEL), the public sector defence undertaking based in Bengaluru, is set to commence mass production of Akash Missile System (AMS) for the Indian Army, a top company official said. “We are already supplying this missile system to the Indian Air Force (IAF) and recently completed trials for the Indian Army. We are already manufacturing the system for IAF, while the production for the Army will commence very soon and will be delivered to them over the next two to four years,” S K Sharma, Chairman and Managing Director, BEL told Business Standard at the Aero India show. He said the Army has placed an order with Bharat Dynamics Limited (BDL), another defence PSU based in Hyderabad. While BDL will be the main integrator for the Missile System, BEL will supply all major systems such as long range capture surveillance and capture radar, fire control radar and control systems among others. The total order size of Akash Missile Systems from the Army placed with BdL is said to be in the order of Rs 14,000 crore. “Our share in the total order is in the range of Rs 3,000 crore to Rs 4,000 crore, which will be delivered over the next four years”, Sharma said. The home-grown Akash Missile System is the first indigenouslybuilt missile system in the country by BEL. The first order worth Rs 1,200 crore was placed by IAF in 2008 and BEL delivered it successfully for two squadrons. Subsequently, the IAF placed another order for six more squadrons. The production for the same is currently progressing and BEL hopes to complete it during the current year. Sharma said the Indian Army has already placed an order with BDL for two regiments of Akash Weapon System. BEL will be supplying all the radars, control centres, satellite data-links to BDL for integration on Army variants of Akash Weapon System. “We have all necessary production infrastructure in place to meet the requirements for weapon systems. In addition, we are creating additional infrastructure for integration of weapon systems in Andhra Pradesh,” the BEL Chairman said. The company will be procuring around 1,000 acres land at Lepakshi Zone in ananthpur district of Andhra Pradesh. The company is in advanced talks with the government of Andhra Pradesh for acquiring land for the proposed Greenfield plant. The investment on this plant is in the range of Rs 500 crore as part of its expansion programme for weapon systesms. The facility will be ready in the next two years, he said. The new facility will be a specialized plant being set up for to manufacture all kinds of weapon systems such as fire control, missile systems and weapon upgrade programme among others. Sharma also indicated that there could be more orders from the Indian Air Force for additional squadrons. However, nothing is finalized yet, he added. Source: http://www.defencenews.in/defence-news-internal.aspx?id=$$lyowxdpAB4= * Airbus sole bidder for India’s Indigenous “AWACS INDIA” project: Airbus Defence & Space appears to have emerged as the sole bidder for a global tender put out by New Delhi’s Defence Research and Development Organisation (DRDO) for an “AWACS India” programme. The tender – for six airborne early warning and control (AEW&C) system aircraft – was issued in March 2014. Airbus submitted its proposal last October, an Airbus official confirms. Other sources indicate that the European company is the lone party to have responded to a request for proposals linked to the project. Commercial bids have yet to be opened for the requirement, which is for an initial batch of two aircraft, followed by four more. Options to increase this fleet size to 10 could be exercised at a later stage. On display on the DRDO stand at the Aero India show in Bengaluru on 18 February was a model of an Airbus A330 fitted with a radome. Officials at the display did not provide any further information about the programme. Airbus would have to integrate the mission systems on the aircraft and gain certification that it is safe to fly with the radome. The airframer says it has been busy replying to Indian queries on technical aspects of the programme. “It is not an easy programme, and we have to do it with fully civilian certification, as requested by DRDO,” the company source says. If a contract is signed for the A330 as the platform for the Indian AWACS effort, it will be the first instance of the type being used in the AEW&C role. Airbus Defence & Space has also been involved in jointly reviewing New Delhi’s indigenously developed AEW&C system with India’s Centre for Airborne Systems, with the first Embraer EMB-145-based example likely to secure initial operational clearance later this year. Meanwhile, Airbus is waiting for a decision on India’s planned contract for its A330 multirole tanker transport, having agreed to further extend the validity of its bid until 1 July. New Delhi runs the risk of encountering a cost escalation if further delays are encountered beyond this date.... Source: http://www.defencenews.in/defence-news-internal.aspx?id=Dwvs6Jnh9S8= II Homeland Security * Coast Guard not satisfied with Loshali's reply, orders board of inquiry: The Coast Guard has ordered a board of inquiry (BoI) against its DIG B K Loshali, which is likely to lead to a court martial and dismissal from service, for contradicting the government by recently boasting that he had ordered the destruction of the mysterious Pakistan fishing boat on January 1. The Coast Guard on February 20 also released a four-minute video clip showing the fishing boat - which the defence ministry says had four "suspected terrorists" on board — engulfed in fire before it finally sank around 365 km from Porbander in the earlier hours of January 1. But the released video footage, which does not have any audio, does not prove one way or the other whether the four persons on the boat themselves set it ablaze — as has been claimed by the MoD and Coast Guard - or it blew up after being hit by gunfire from patrol vessel ICGS Rajratan. As reported by TOI on February 20, the BOI against Loshali, who was the chief of staff (northwest region) but not in the operational chain of command, has come after his reply and apology to the show-cause notice was found "unsatisfactory" by defence minister Manohar Parrikar and the new Coast Guard director-general Vice Admiral H C S Bisht. "It has also been established from Rajratan's commanding officer, Commandant Chandrashekar Joshi, that he had received no communication from DIG B K Loshali on that day," said a Coast Guard official. The BoI against Loshali — headed by a DIG senior to him - has been asked to submit its fact-finding report in three to four weeks. Loshali, at a function in Surat, had bragged that he ordered Rajratan to "blow off" the suspicious boat, and not serve the persons on board "biryani". .... Source: http://timesofindia.indiatimes.com/india/Coast-Guard-not-satisfied-with-Loshalis-reply-ordersboard-of-inquiry/articleshow/46319140.cms? Indicia solicits comments and advice from readers on any aspect of the report. It believes that cross-fertilisation of knowledge invariably leads to better knowledge Indicia Research & Advisory Fusion Knowledge in Indian Defence and Strategic Affairs C – 79, Basement, Malviya Nagar, New Delhi – 110 017 T&F: + 91 11 4579 2922, email: director@indicia.in
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