EY India's Quarterly defence newsletter.

1. Eye on Defence
January 2014
Dear readers,
Contents
Contents title
Defence communication
Contents subjects
networks 02
Way forward for MSMEs in A&D 15
Request for Information (RFIs) for
October—December 2013
22
Request for Proposal (RFPs) for
October—December 2013
23
List of Industrial Licenses (ILs)
filed for September—
October 2013
25
New projects/investments/
contracts 26
JVs and alliances
29
Country-level deals and
initiatives 31
Industry buzz
33
The Indian MSME base in defence production is beginning to realize its
potential to complement the efforts of DPSUs and large Indian conglomerates.
It is now well known that the goal of building an indigenous defence
manufacturing base is challenging to attain without the support and active
participation of the vibrant and nimble MSMEs of India. While subcontracting
from DPSUs remains the preferred route of entry to the A&D industry for
these companies, technological tie ups, induction into the global supply chain
of OEMs and investment in R&D are now beginning to take off as alternative entry options. With this
background, the MSME DEFEXPO 2013 was conducted successfully in Bangalore by the National
Small Industries Commission. EY was the knowledge partner for this event. A mix of bureaucrats,
officers, captains of the industry and leaders of successful MSMEs interacted with the participants
and shared their views on the way ahead. A general sense of direction to increase MSME participation
in the A&D industry was built successfully over the course of three days. In this edition, we have tried
to present a consolidated and summarized view of the various topics that were discussed and the
ways in which enhanced participation may be achieved.
The Armed Forces have been rapidly modernizing their networks and have been putting newer and
more reliable systems in place. This is a less understood domain, with immense business potential
in the near term. Thus, in this edition, we have tried to identify the various defence communication
networks projects that are currently under planning and execution. We have also tried to identify
opportunities and avenues of participation for the industry in these projects.
Among the regular sections, we have industrial license applicants, RFIs/RFPs released, new projects
and investments, joint ventures (JVs) and alliances, country-level deals and the latest buzz in the
industry.
I would like to take this opportunity to offer you my warmest wishes for a happy, healthy and joyful
2014. I hope you find this issue useful. It has been our constant endeavor to make this publication
increasingly relevant to you, and we will appreciate your comments and suggestions in this regard.
K. Ganesh Raj
Partner and Leader
Aerospace and Defence practice

2. Defence communication
networks
Overview
In this era of network-centric battlefield/warfare,
communication network technologies have indeed become
the life line of all military operations, thus assuming a pivotal
role in strengthening the country’s defence.
The main demands made on military communication are of
timeliness of establishment, reliability of operations, speed
of action, and secrecy of transmitted information. With
communication systems being the nerve of any operational
system, these are all-prevalent and difficult to segregate.
Nevertheless, for the ease of understanding, the systems
can be broadly categorized into three tiers with respect
to their mobility from the operational point of view, the
levels of hierarchy at which they operate and the resultant
communication technologies deployed.
The layers are pictorially depicted in figure A.
Fig A: Three-tier hierarchies of the military
communication systems
TIER 1
Static
Networks
TIER 2
Deployable
Networks
TIER 3
Tactical
Networks
2
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The network is static planned and
well connected by wideband links
such as OFC and other techniques
Typically used for deployable
headquarters, these types of
networks can move on ad hoc basis
from one geographical location to
another requiring relatively fast set
up and stable connections to the
backbone on land to other
deployable networks and for that
matter use Line of Sight (LoS)
digital radios or other means of
communication
The tactical networks are based on
tactical radios e.g. VHF, UHF and
other media) and characterized by
high mobility, non stable and fault
prone communication
Current trends in the network
communication of the Indian Armed Forces
Increased reliance is being placed on intelligence and speed
in data processing. This trend is necessitated by the need
for quicker decisions and NCW capabilities in a highly mobile
battlefield scenario. In this backdrop, existing networks
are increasingly being upgraded to enhance Command,
Control, Communications, Computers, Intelligence and
Interoperability (C4I2) capabilities.
The static communication network along the borders is
being converted to optical fiber. In the last few years, all of
the three defence services have made significant progress
by using space technologies in the fields of communication,
surveillance and reconnaissance, and search and rescue.
The Navy has emerged as the most advanced service in
deploying communication network technologies. However,
there are integration issues within the three services to
leverage a wide array of ISR capability.
Ongoing network communication projects
Various communication network systems are being
developed for the three defence forces and are being
planned to be deployed in the three-tier architecture
discussed earlier. In addition, there is a pressing need
for integrating the network of the three defence forces
to facilitate quicker decisions and better cooperation/
coordination among the three services. We are, thus,
analyzing ongoing projects under the following categories:
•
Communication projects at the static, deployable and
tactical levels specific to the three services
•
Static communication networks common to the three
services for inter services applications/integration
Some of the major ongoing network communication projects
at the static, deployable and tactical levels for all of the
three defence services are listed and discussed below.

3. Ongoing network communication projects
for the Army
The focus areas are:
•
the upgrade to Army Static Switched Communication
Network (ASCON) at the static level;
•
net centricity and the cutting edge of operations at the
tactical level, and
•
the tactical command, control, communication and
information systems (TAC C3I) at the operational and
tactical level;
•
battlefield management system (BMS) for units and at
the below level.
Program: Army Static Switched Communication Network
Phase 4 (ASCON Ph-4)
RFI issued: Sep 2010
Category: Buy and Make Indian
Developed by: Telecommunications Consultants India Limited (TCIL) and various other Indian OEMs
Likely development cost: INR3.5-4 billion (US$63–72 million)
Brief: The ASCON project, executed by M/s ITI Ltd. in the late 1980s, provides secure voice and data links between the static
HQ and formations in peace-time locations. It is the backbone communication network of the Army. It has undergone three
upgrades since its inception. Over this period, it has been extended to cover almost all formations/establishments/units. In
2010, an RFI for ASCON Phase IV was issued by the Army and, subsequently, another RFI was issued by TCIL, which has been
appointed as the nodal agency for this program and is looking for suitable partners.
Program: Tactical Command, Control, Communication and
Information System (TAC C3I)
Developed by: Directorate General of Information Systems (DGIS)
Brief: TAC C3I is being developed to assist in the NCW warfare of tomorrow and will comprise a number of specific subfunctions. TAC C3I is being implemented indigenously; conversely, other projects would likely seek foreign sub-systems and
are currently in various stages of development/testing. TAC C3I comprises:
•
A
rtillery Command, Control and Communication System (ACCCS)

•
C
ommand Information and Decision Support System (CIDSS)

•
A
ir Defence Control and Reporting System (ADC&RS)

•
B
attlefield Surveillance System (BSS)

•
B
attlefield Management System (BMS)

•
C
ommunication systems linking the C3I systems

• 
Project ASTROIDS
• 
Tactical Communication System (TCS)
Eye on Defence |
3

4. Fig B. TAC C3I system
Program: ACCCS
Category: Buy and Make Indian
Developed by: BEL, CAIR, ARDE and Project Management
Organisation (PMO)
Likely development cost: INR16.5 billion (US$300 million)
Brief: The module for the artillery (ACCCS) is the first
among various systems of TAC C3I to be fielded by the
Army. This will connect the corps headquarter forward to
the battalion headquarter. The applying of TAC C3I will,
thus, assist commanders in the field in quick decision
making based on real-/near-real-time processing of
information. The project aims to automate all of the
artillery functions of war. ACCS will perform vital functions
such as technical and tactical fire control, deployment
management, operational logistics and fire planning. As
of now, phase 1 of the project has already been completed
and implemented. Phase 2 and 3 will be extended to all
of the artillery units, and the remaining corps would be
completed by 2012–13. ACCCS completion is illustrated in
figure C.
Fig C. ACCS system
Source: DRDO
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5. Program: Command
Information and Decision
Support System (CIDSS)
Sanctioned: 1999
Category: Buy and Make Indian
Developed by: Centre for Artificial Intelligence and Robotics
(CAIR), BEL, Tata Elxi and Y M Tech
Likely development cost: Over INR412.5 billion (US$7500
million)
Brief: CIDSS is primarily meant for collecting, collating,
filtering, processing, formatting and displaying operational,
intelligence and logistic information to support commanders
in decision making at various hierarchical levels of field
forces. The aim is to enable them to assess the battlefield
scenario and take appropriate and timely decision. The
system is being operationalized at present. The layout of the
CIDSS vis-à-vis other sub-systems of TAC C3I is illustrated in
Fig D.
Fig D: CIDSS
Battlefield
Management
Systems
Arty Combat
Command
and Control
System
Battlefield
Surveillance
Systems
CIDS
Army
Strategic
Operational
Information
Dissemination
System
Electronic
Warfare
Systems
Air Defence
Control
and Reporting
System
Source: Q-Tech Synergy
Eye on Defence |
5

6. Project: Air Defence Control
& Reporting and Air Space
Control System (AD C&R and
ASC)
Category: Buy and Make Indian
Developed by: DRDO and BEL
Likely development cost: Above INR3 billion (US$55
million)
Project: Battlefield
Surveillance System (BSS)
Developed by: DRDOs CAIR unit
Likely development cost: Over INR0.5 billion (US$100 million)
Brief: This project aims to provide an efficient battlefield
surveillance system that has the ability to provide military
commanders at all levels with accurate, constant, all-weather
and real-time surveillance of the battlefield. The test bed for
the project has been developed. Project tenders are being
evaluated.
Brief: ADC&RS is a command and control system for
integrating various radars and other army systems for air
defence. This system will take care of all of the functions
of air defence control and of the reporting system of the
Army spanning from the time a target is picked up to its
engagement by a suitable weapon system. The contract
was signed with BEL in 2008, but the test bed is still to be
materialized.
Project: Battlefield
Management System (BMS)
Project: Army Strategic
Operational Information
Dissemination System
(ASTROIDS)
Development contenders: L&T, Bharat Electronics Ltd, Rolta
Ltd, Tata Power (strategic electronics division), Hindustan
Computers Ltd, Wipro, ECIL, ITI, Bharat Forge, Punj Lloyd
Ltd, Tata Consultancy Services, Infosys Technologies, Tech
Mahindra and CMC.
Developed by: DRDO and BEL
Likely development cost: Not specified
Brief: It is a geographic information system-based
application. This project has five modules covering GIS
and terrain, operations, counter insurgency operations,
intelligence and logistics. It has been implemented in three
commands and six corps. In phase 2, some upgrades have
been planned before porting to other commands. The
project was scheduled for implementation by 2012–13.
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| Eye on Defence
Expression of Interest (EOI): Nov 2013
Tender issued
Category: Make Indian
Likely development cost: INR400 billion (US$7,272 million)
Brief: It is a decision support system proposed to be
implemented at the infantry battalion/regimental level, with
program life cycle support, for 15–20 years. It is conceptualized
as an integration tool supporting military users at all levels
ranging from individual soldiers to battalion group/combat
group commanders in the TBA. It includes the development of
sensors, digitally enabled weapons and information grids to
enable the efficient functioning of weapons. The BMS system
will integrate all surveillance resources available at the battalion
or regiment level, including from locally launched UAVs and
ground sensors. It will also provide the accurate location of all
the troops and key weapons platforms, as well as the location
of enemy troops and terrain analysis. In this regard, an EoI has
been issued to 14 vendors. Based on their detailed responses
(still awaited), the Ministry of Defence (MoD) will be shortlisting
two vendors or consortia as “development agencies” or DAs.
Vendors have been given four months to form consortia,
engage technology partners (could be foreign companies),
frame their proposals and submit detailed proposals. They
will be evaluated by an Integrated Project Management Team
(IPMT), which will then select two DAs.

7. Project: Tactical
Communication System
(TCS)
Expression of Interest (EOI) : 24 Sep 2010
Tender issued
Category: Make Indian
Shortlisted contenders: Bharat Electronics Limited (BEL)
and a private Special Purpose Company (SPC), a consortium
led by L&T, with Tata Power SED and HCL Infosystem
Ordered quantity: Seven Systems
Likely development cost: INR100 billion (US$1.8 billion)
Brief: TCS is part of the Army’s quest to build a networkcentric warfare system to replace the aging Army Radio
Engineering Network (AREN) system that was put in
place in the 1980s. The communication system will be
the foundation of the IA’s communication network, as
well as the futuristic backbone for a digitized battlefield
communication network facilitating communication from
theatre command areas to troops deployed in forward areas.
The project is categorized under the “Make” Category of
the Defence Procurement Procedure. Five consortiums,
including India’s top IT companies, were made out of the
original eight contenders. Finally, the MoD has shortlisted
two development partners: the government-owned BEL and
a private Special Purpose Company (SPC), a consortium led
by L&T, with Tata Power SED and HCL Infosystems as the
two DAs. The MoD has sent staff qualitative requirements
to the two competitors in October, asking them to give a
detailed project report by January. Thereafter, each of
the two competitors will have to build two prototypes of
the TCS for about US$50 million (INR2.75 billion). The
prototypes will then be put to trials. The government will
contribute nearly 80% toward the cost of the prototypes,
and the remainder will be borne by the competitor. The
prototypes will undergo user trials by the Indian Army. The
selected competitor would then produce the entire TCS. The
envisaged TCS Hierarchy is demonstrated in Fig E.
Fig E. Tactical Communication System hierarchy
Source: Q-Tech Synergy
Eye on Defence |
7

8. Project: Mobile
Communication
System (MCS)
Fig F. Configuration details of MCS
Developed by: DRDO
Likely development cost: Not declared
Brief: The DRDO has developed a mobile
communication system (MCS) technology
for defence services to provide reliable and
secured wide-area connectivity for both
data and voice between various nodes. The
system is under development.
Source: http://drdo.gov.in/drdo/English/index.jsp?pg=communication.jsp
Program: Satellite
Communication (SATCOM)
Project: Coastal Surveillance
Network
Brief: On the lines of the GSAT-7 Defence Satellite System
for the Navy, the Army is looking to adopt a dedicated
satellite system to augment its communication capabilities.
The details of project are being finalized.
Category: Buy and Make
Ongoing network communication projects
for the Navy
Project: Microwave Satellites
or Short-Wave Radios
Category: Buy and Make Indian
Developed by: L&T’s Strategic Electronics Center
Likely development cost: INR100 billion (US$1.8 billion)
Brief: Microwave satellites, or short-wave radios, are the
usual mode of military communication worldwide. India is
poised to become one of the few countries to indigenously
build and enhance the capability of strategic communication
to sub-surface vessels. The project has been awarded to L&T.
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| Eye on Defence
Developed by: BEL and the foreign prime contractor yet to
be decided on
Ordered quantity: 110 multi-modal coastal surveillance
radars
Likely total cost: US$3 Billion
Brief: To further strengthen coastal security, the Defence
Ministry is planning to set up additional static radars and
sensors to closely monitor the movement of suspicious
ships. These radars and sensors are to be implemented as
a part of the Phase II of the Coastal Surveillance Network
(CSN). The project is being carried out in two phases, with
the first phase already nearing completion. The prime
contractor is Sweden SAAB Tech, and Indian company BEL
has been assigned to assemble all of the imported systems
and sub-systems that are being received in semi knockeddown condition from the former. The second phase involves
setting up of 110 multi-modal coastal surveillance radars
and 37 towers. For phase two, TERMA has reportedly

9. already been engaged as a sub-contractor. The Low Light
Level TV (LLLTV) with Charge Coupled Device (CCD) Camera
from OBZERVE, Canada and Thermal Imager from Cantrop,
Israel, has been cleared during the field evaluation trials,
and contract negotiations are underway. Other potential
beneficiaries include Cobham, Thales and Elta.
Project: Satellite
Communication (SATCOM)
GSAT-7 Defence Satellite
Category: Buy and Make Indian
Developed by: Indian Space Research Organisation (ISRO)
Ordered quantity: 1
Satellite development cost: INR6.55 billion (US$121.9
million), including the rental for rocket and insurance
Brief: India’s first satellite dedicated to use by the military
has been successfully launched into orbit. The GSAT-7 will
transform the capabilities of the Indian Navy, allowing it to
communicate with its fleet across the Indian Ocean through
a top-secret encrypted system. Navy ships will be able to
exchange data about the precise location of enemy ships
and submarines. As part of the process, each ship in the
fleet will have a comprehensive digital map of the position of
friendly forces and enemy forces.
Ongoing network communication projects
for Air Force
Project: Theatre Deployable
Communications (TDC)
Wireless Distribution Module
(WDM)
Brief: The IAF has approved and initiated the induction of
DRDO Theatre Deployable Communications (TDC) Wireless
Distribution Module (WDM). The module provides a lineof-sight extension of a local area network and a radio
frequency link extension of local internet protocol-based
traffic to rapidly distribute network capability to tactical
war fighters in remote areas. The TDC system is mobile and
modular. The equipment is packaged in kits and modules
that are installed, transported and operated from transit
cases and can be tailored to meet specific mission needs.
Project: Air Force Net
(AFNet)
Category: Buy and Make Indian
Developed by: BSNL, HCL Infosystems and CISCO
Ordered quantity: 100
Likely cost: INR10.77 billion (US$195.8 million)
Brief: The IAF has been able to establish its fiber-optic
network AFNeT, which offers up to 500 MBPS encrypted,
non-jam-able bandwidth to replace the existing troposcatter-based communication network. The modern, stateof-the-art AFNeT is a fully secure communication network
that provides IAF with a critical link among its command
and control centers, sensors such as the Airborne Early
Warning and Control Systems and shooters including fighter
aircraft and missile squadrons. With the launch of AFNET,
IAF has become the first among the three services to
complete the interlinking of major installations throughout
the country on a high bandwidth network. AFNet will
eventually be connected and extended to a unified digital
grid encompassing all of the legs of Indian Armed Forces.
AFNet is likely to be extended and connected to the
digital information grid project, which is currently under
implementation for the Indian Navy and the Indian Army, by
2015.
Category: Buy and Make Indian
Developed by: DRDO
Ordered quantity: 140 WDM Suites
Likely Cost: INR3.6 billion (US$65 million)
Eye on Defence |
9

10. Project: Integrated Air
Command, Control and
Communications System
(IACCCS)
Category: Buy and Make Indian
Ordered quantity: Ten IACCS centres
Likely cost: INR165 billion (US$3.5 billion)
Brief: The IACCCS is being established under a two-phase
program for the IAF. The IACCCS has been designed as
a robust, survivable network-centric C4I3 infrastructure
that will receive direct real-time feeds from virtually all
sources. The IACCCS will also coordinate the early warning
and response aspects of a layered, ground-based, two-tier
ballistic missile defence (BMD) network that is currently at
an advanced stage of development. Phase 1 had become
operational last year. The way ahead is now clear for
plugging into the IACCCS a large number of new-generation
ground-based radars that are being delivered/acquired for
airspace surveillance in search of airborne targets and for
coastal/ground surveillance.
Project: Operational Data
Link (ODL) Phase II
Expression of Interest (EOI) : Not yet issued
Category: Buy Global
Likely contenders: Elta; Rafael; Lockheed Martin and IAI
Ordered quantity: 100
Likely development cost: INR230 million (US$4 million)
Brief: The ODL is a pilot project for the Indian Air Force’s
network-centric warfare program that will provide the
force with the capability to field advanced data and voice
10 | Eye on Defence
networking over the next 10 years. After the successful
implementation of the first phase, worth INR230 million
(US$4.2 million), the RFI for the Operational Data Link
(ODL) phase II is currently under discussion. The decision
on the launch of phase II is yet to be announced. The ODL
will integrate all aircraft, AWACS, radars and UAVs with the
C2 structure. It will have both data and voice networking
capability.
Project: Computerised
Inventory Controlled Project
(CICP)
RFI/RFP: To be issued soon
Category: Buy Global
Likely contenders: Thales, IAI, ST-Engineering, Raytheon,
EADS, Northrop Grumman, Boeing and Lockheed Martin
Brief: The project entails the automation and integration of
all ammunition and ordnance store depots with the central
data center in Delhi and the disaster site in Pune. The
project RFP is being re-floated due to technical problems.
Since all spade work has already been completed, the
project is likely to be completed by 2015.
Program : Satellite
Communication (SATCOM)
Brief: On the lines of the GSAT-7 Defence Satellite System
for the Navy, the IAF is expected to have its dedicated
satellite by 2013–14. Also, a communication-centric
intelligence satellite will be operational by 2014 and will
serve as a test bed for anti-satellite weapon development.
The details of project are classified.

11. Static communication networks for three
services
The static communication part for the three defence
services is progressing well, and a new optical fiber cable
network and DCN received approval recently.
Project: Defence
Communication Network
(DCN)
Project: Network for
Spectrum (NFS) for Defence
Services
Tender issued: 2009
Category: Buy and Make Indian
Developed by: BSNL with other likely companies L&T,
Sterlite and Punj Lloyd, TATAs
Ordered quantity: 100
Category: Buy and Make Indian
Likely development cost: INR181.5 billion (US$3.3 billion)
Developed by: HCL Infosys
Brief: The Network for Spectrum (NFS) will function as a
fiber optics network to be used exclusively by the Indian
Armed forces in exchange for the spectrum being released
by the Defence Forces. This will be a country-wide secure,
multi service and multi-protocol converged next generation
network based on exclusive and dedicated tri-services
optical transport backbone. NFS will be a “Next Generation
Network” based on highly resilient and virtualized IP/MPLS
backbone and gigabit optical access networks based on
fault tolerant carrier ethernet transport technologies. The
complete network will be controlled from geo redundant
central and regional network operating centers. A total of
seven tenders are to be issued under the Project Network
for Spectrum. The entire project was cleared by the Cabinet
in August 2012, and it was to be completed within three
years. It was further agreed to setting up an exclusive
defence band and a defence interest zone along 100 km of
the international border, where spectrum will be reserved
only for use by the armed forces. As of now the programme
Likely development cost: INR8 billion (US$145.5 million)
Brief: A tri-service defence communications network is
being progressed to cover communication requirements
of all three services at the strategic level and transcend
inter-service boundaries. The network will link all of the
three HQs internally, as well as with the MoD and the
operational formations of the three services right up to
the corps level. When ready, it is expected to cater to the
military’s communication needs for the next 30 years.
DCN envisages a network of optical fiber cables, satellite
earth stations and transportable and portable satellite
terminals with high security features. The DCN will be
part of a tri-service strategic network, initially on a hired
bandwidth, and will be migrated to the OFC being laid
out as part of the NFS at a later stage. There would be
a satellite overlay to cater to redundancy/remote area
locations and disaster recovery sites. It will provide voice,
data and video services over IP to the strategic elements
of Army, Navy, Air Force, Headquarters (HQ) Integrated
Defence Staff (IDS) and Interim National Command Post
(INCP). The project was awarded to HCL earlier this year,
and work will be implemented within 24 months of the
signing of the contract. Along with this program, a pan-India
optical fiber cable network will be laid over 60,000 km to
provide connectivity for 129 army, 162 air force and 33
navy stations. It will also make for highly effective pan-India
redundancy to individual services networks, which is an
imperative given the current state of cyber warfare. This
integrated network will allow the defence forces to free
spectrum.
Source: http://indianarmy.nic.in
Eye on Defence | 11

12. has been derailed with the first major RFI issued in Nov
2012 standing cancelled and also no timeline being decided
for other RFIs too.
Pan-India optical fiber cable network. The project entails
an RFI for the tender to lay over 60,000 km optical fiber
cables to provide connectivity for 129 army, 162 air force
and 33 navy stations; the project is part of the move to
create exclusive spectrum infrastructure for the services;
the tender was issued in Nov 2012, but it got cancelled
in Feb 2013. As many as 14 top companies, including
L&T, Sterlite and Punj Lloyd, had expressed interest in this
turnkey project worth INR47.71 billion (US$867 million).
Once implemented, this project will become the heart of the
alternative communication backbone, Network for Spectrum
(NFS), which BSNL will build in the next two years. Purchase
orders for optic fiber cable gear are expected to be placed
in two months. BSNL has also indicated plans to roll out
an INR26.11 billion (US$474.7-million) internet protocol
(IP) network for the Defence Ministry by June 2014. Apart
from this, it will place orders worth INR13 billion (US$236.3
million) for transmission systems using dense wave division
multiplexing (DWDM) technology by March 2014.
Challenges
A large number of networks based on a wide range of
technologies are likely to emerge. The challenge will then
be to assimilate new technologies, as well as to converge
these networks that are based on multiple technologies.
Furthermore, harnessing wireless technologies for
enabling mobile communication for combat elements
will be a key focus area. This implies that Indian defence
services need to overcome the challenges of security
12 | Eye on Defence
architecture, connectivity matrix and points of exchange
of information, integration, legacy systems, standards
and protocols, functionalities and procedures, time
sensitivity, human resource issues, training of users
and management of trained manpower. Roadmaps of
information and communication must converge into an
integrated information communication technology roadmap.
Communication and information systems planning should
be seamless, horizontally and vertically, with adequate
safeguards and authority in place. Also, services need
to focus on spectrum management and technology to
telescope bandwidth.
Market opportunities
As the three defence services of India continue on the road
to modernizing their forces, the need for technological
investment in communication and other ISR technologies,
including space and military satellites, is worth highlighting.
The Indian Armed Forces are spending heavily on
communication networking technologies, with an average
5% allocation annually in the defence budget. Considering
the ongoing procurements and others in the pipeline, the
defence communication network market of the Indian
Armed Forces roughly amounts to over INR800 billion
(US$14.5 billion). It is expected to grow at 8%, translating
into a number of lucrative opportunities for foreign and
Indian OEMs. Defence communication network programs
such as Army Wide Area Network (AWAN Phase II), ASCON
and BMS are typically bundled with communication entities
such as Software Defined Radio (SDR), high-frequency radio
handsets and TR modules for RADAR. The following table
enumerates some of the main RFIs that had been issued by
the MoD in the last few years for strengthening the defence
communication of the three armed forces:

13. Date of issue
Item
Defence service
Mar 09
Radio Transponder Beacon and Receiver System
IA
June 09
IP Radio
IA
Nov 09
Infra Red Jammer for Army Aviation Units
IA
Sep 09
Tactical Access Switch
IA
Dec 09
Information for Project Loginet
IA
Jan 10
Secure Mobile Communication System (SMCS)
IN
Feb 10
Electronic Theodolite
IA
Feb 10
FINSAS Computer Sub System and Integration of Components
IA
Mar 10
FINSAS Single Band and Dual Band Handheld Radio Sets (HHRS)
IA
May 10
Electronic Theodolites with Laser Range Finder (LRF)
IA
May 10
WIMAX System
IA
June 10
ELINT Intercept Receivers
IA
June 10
WIMAX system
IN
July 10
Military Wireless Loop
IA
Aug 10
Mobile Cellular Communication System
IA
Sep 10
Project ASCON Phase IV
IA
Oct 10
8/34 MBPS Radio Relay
IA
Feb 11
Tactical Optical Fiber Cable System
IA
Feb 11
FINSAS Computer and Communication System
IA
Feb 11
RF Field System with accessories, RF Horn antenna with tripod
IA
Feb 11
Army Wide Area Network (AWAN) PHASE-II
IA
Feb 11
Fibre Scope
IA
Mar 11
Telemetry System
IAF
Aug 12
Internet Protocol (IP) Radio
IA
Aug 12
ELINT Intercept Receiver for Mountainous Terrain
IA
Sep 12
1 KW HF Transmitter/ Transreceiver Set
IN
Oct 12
Project ASCON Phase-4
IA
Mar 13
Advance Surveillance Receiver
IA
Apr 13
TARANG Mk-1B Radiation Warning Receiver System Mechanical Mod Kits
IAF
May 13
Vehicle Mounted Air Band Transceiver
IAF
Aug 13
Wireless Communication System
IAF
Sep 13
Communication Equipment
IAF
Oct 13
SAKRIYA (Radio And Cell Phone Jammer Counter IED System)
IA
Oct 13
VHF and UHF Aerials
---
Nov 13
Range Operational Communication (ROC) System
---
Nov 13
Motion Sensors DOH
IN
Eye on Defence | 13

14. Conclusion
As the Indian defence forces transform themselves
into primed modern fighting machines,
communication and networking undoubtedly are
going to play a very strategic and tactical role
not just in network-centric warfare, but also in
conventional battles and wars. With this realization,
the Indian Armed Forces have modernized their
communication networks by adopting several new
technologies. That said, there is an inevitable need
for an integrated communication network that
enables requisite standard signal communication
support to all of the three services. Modern
strategic and tactical level command and control
systems also need to be acquired on priority
for better synergies during conventional and
sub-conventional conflict. Along with this, the
acquisition of TCS, a BMS and other necessary
communication networks needs to be hastened.
References
1. Vivek Raghuvanshi, “Experts: ‘Make India’
Approach May Undercut New Comm System”,
Defence News, 26 November 2013
2. Ravi Shankar Pandey, “Communication in
Defence: Securing the frontiers”, Voice & Data,
6 January 2005
3. Prakash Katoch, “Defence Communication and
Surveillance”, Defence and Security of India, 01
September 2013
4. Kalyan Parbat, “BSNL to roll out Rs 4,771
Crore cable network for defence”, Economic
Times, 20 November 2013
14 | Eye on Defence

15. Way forward for MSMEs
in A&D
As per the 4th Census of MSME sector, this sector employs
an estimated 59.7 million persons across more than 26.1
million enterprises. Of these, only 1.5 million enterprises are
in the registered segment, while the remaining 24.5 million
(94%) are unregistered. In terms of their distribution across
Indian states, more than 55% of all MSMEs in India are
located in just six states: Uttar Pradesh, Maharashtra, Tamil
Nadu, West Bengal, Andhra Pradesh and Karnataka.
In terms of economic value, the MSME sector accounts for
about 45% of the manufacturing output and around 40%
of the total export of the country. Apart from forming the
bulwark of industrial units in the country (as high as 90%),
MSMEs play a pivotal role in the economic growth of India.
It makes its contribution through high labor intensity and
high potential of employment at lower capital costs, and
export and growth enhancement. It also serves the national
objectives of socio economic inclusion by engaging in
industrializing rural and backward areas, reducing regional
imbalances and assuring more equitable distribution of
national income and wealth.
The MSME sector has a larger role to play in the post
downturn market, as most of the industries look to achieving
breakthrough innovation rather than economies of scale
to drive down costs, achieve growth and stay ahead in the
market place. MSMEs, with their agility, innovativeness and
flexibility, are best placed to take advantage of this changing
scenario.
MSME revenue
80
INR Trillion
India’s MSME base
Fig A. Growth in numbers and revenue of MSMEs
60
40
20
0
69.2
24.9
2006-07
45
2011-12
2014-15
44.7
48.5
2011-12
2014-15
Number of MSMEs
60
Millions
This article comes in the backdrop of the MSME DEFEXPO
2013 in Bangalore on the 14th of December. Participants
were absolutely riveted about opportunities in the
Aerospace and Defence sector; however, most of them could
not decide on a preferred route of entry. We have, in this
article, tried to present a broad-level and simplified view of
the various avenues available to MSMEs for participation in
the A&D industry.
40
20
0
36.7
2006-07
Source: Annual Report of the MSME ministry and EY analysis.
Numbers for 2011-12 and 2014-15 are projections
MSMEs in Aerospace and Defence
More than 6,000 MSMEs operate in the A&D domain in
India, supplying 20%–25% components to DPSUs, the DRDO,
the OFB and the Armed Forces. These MSMEs came into
existence on account of outsourcing of production by DPSUs
and OFs. Ever since the defence sector in India was opened
to private sector participation (in 2001), they have stepped
up their role by way of offset related business, supply orders
from foreign OEMs and, in some cases, direct participation
in MoD contracts. Promising trends in this space include
DPSUs restricting their role to that of an integrator, thereby
allowing larger work share for MSMEs in the Tier 2 and 3
space; and OEMs spreading well differentiated Tier 1 and
2 supplier bases toward low-cost centers and increasing
offset business on account of increased capital acquisition.
It seems likely that MSMEs in A&D will replication the
transformation in the automotive industry in India.
Eye on Defence | 15

16. PSUs/Govt
Agencies
(INR billion)
SSI Sector
(INR billion)
Non SSI
Sector
(INR billion)
Total (INR
billion)
Annual
Turnover
(INR billion)
Total %
Outsourced
%
outsourced
to SSI
2008-09
15.66
20.82
37.26
73.75
276.33
27%
8%
2009-10
16.00
25.71
40.88
82.59
346.15
24%
7%
2010-11
28.69
19.37
50.09
98.15
386.22
25%
5%
Year
According to the Working Group on Defence Equipment of the Planning Commission
Incentives for MSMEs — regulatory and
fiscal
The Indian Government has announced a number of
incentives for MSMEs. In this section, we will revisit some
of the initiatives that are relevant for MSMEs in A&D. This
list is merely indicative (please refer a more comprehensive
review to identify schemes relevant to your business).
MSMED Act of 2006 and the Public Procurement Policy:
The Micro, Small and Medium Enterprises Development
Act was notified in 2006 to address policy issues, facilitate
development and enhance the competitiveness of the MSME
sector.
Fig B. Offsets - sector-wise break up
MSMEs
27%
OFB and
DPSUs
40%
Large
Private
Industry
33%
Source: EY analysis
The Public Procurement Policy (effective 1 April 2015)
seeks a mandatory 20% share for MSMEs in all government
and public sector unit purchases over a period of three
years. This move is expected to increase their market access
and competitiveness.
16 | Eye on Defence
Defence Procurement Procedures: The DPP was introduced
to streamline and lay out a process of defence equipment
acquisition in India. It has undergone six progressive
revisions since its release in 2005. The latest version,
applicable to projects announced on or after1 June 2013,
clearly states preference for indigenous manufacture of
defence equipment. This move is expected to enhance
opportunities for Indian companies and subsequent JVs
and technology partnerships between Indian and foreign
companies.
Offset Policy: Provisions to this effect were added to
the DPP in 2005 and came into effect on 1 July 2005.
Accordingly, the MoD was authorized to recommend the
inclusion of an offset clause amounting to 30% of the
indicative cost in the request for proposals in cases where
the indicative cost was INR3 billion (equivalent to about
US$60 million) or more in Buy Global or Buy and Make
Global cases. The offset policy of DPP 2013 has introduced
a multiplier of 1.5 if the Indian partner chosen to discharge
the offset obligation is an MSME. This implies that if
products worth USD 100 are procured from an MSME, the
OEM will get offset credits worth USD 150
Defence Production Policy: The policy was put in place
to achieve self-reliance in the design, development and
production of equipment required for defence through
private sector participation, especially MSMEs. Toward this
end, a separate fund was envisaged to provide the necessary
resources to MSMEs for enabling them to productionize
niche technologies and sustain themselves, while adding
significantly toward the defence base of the nation. This was
reiterated in the Kelkar Committee Report in 2004.
National Manufacturing Competitiveness Programme: It is
the flagship program of the Government of India to develop
global competitiveness among Indian MSMEs. The NMCP
comprises 10 components to enhance the entire value
chain of the MSME sector. It includes programs such as the
establishment of new tool rooms, benchmarking of global
competitors, enhancing of product and process quality, and

17. cost reduction through lean manufacturing techniques. The
program will be implemented through the public-private
partnership model, along with the close physical and
financial participation of the MSME sector.
Point Registration Scheme (SPRS). To get registered, a
micro and small enterprise has to submit an application form
(in duplicate), along with requisite fee and documents, to the
nearest zonal/branch and sub office/extension NSIC office.
MSME Development officer: MSME-DO is playing a
constructive role by rendering comprehensive services,
including consultancy, through the institutional set up of
its field organizations spread over different parts of the
country. Through its network of offices and organizations,
it provides services such as testing, certifications, tooling,
training and technology development to MSMEs.
A duplicate copy of the G.P. registration application form
submitted by the enterprise will be forwarded to the
concerned MSME-DI RITES/CDC, along with copies of the
required documents and a requisite draft/pay order of
inspection charges in favor of the concerned inspection
agency requesting for carrying out the technical inspection
of the micro and small enterprise. The MSME-DI RITES/CDC
then forwards its recommendations in this regard.
Credit Guarantee Fund Scheme: It was introduced in
August 2000 for offering credit to MSEs, particularly
micro enterprises, on loans of up to INR10 million without
collateral/ third-party guarantees. The scheme is being
operated by the Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE), which was set up jointly by the
Government of India and SIDBI.
NSIC Cell: National Small Industries Corporation Ltd.
(NSIC) is an ISO 9001-2008 certified Government of
India enterprise under the Ministry of MSME. NSIC has
been working to fulfil its mission of promoting, aiding and
fostering the growth of small industries and industry-related
micro, small and medium enterprises in the country. Toward
this end, it provides services ranging from bank credit
facilitation to market intelligence to registered companies.
NSIC identifies financially and technically competent SSI
units and enlists them for participation in the government
stores purchase program. NSIC participates in bulk tender
enquires of Central and state government and PSUs on
behalf of small enterprises. On the receipt of orders, NSIC
distributes them on the behalf of the quoting party.
All of the industries that are registered with the
Director of Industries (DI)/District Industries Centre
(DIC) as manufacturing/service enterprises or having
Acknowledgement of Entrepreneurs Memorandum (EM
Part-II) are eligible for registration with NSIC under its Single
After receiving the MSME-DI Inspection Report, NSIC will
issue the GP Registration Certificate to the micro and small
enterprise for items/stores, as recommended.
To become an Indian offset partner and avail the multiplier
benefit for MSMEs provided by the DPP 2013, the MSME
must have and IEM II form filed with the district industries
center. This document is sought by OEMs to prove that a
unit is an MSME.
Way forward for MSMEs in the A&D sector
India has entered one of its most intensive and sustained
defence equipment procurement cycles. The order books of
DPSUs are overflowing with orders, and foreign OEMs are
seeking opportunities to discharge offset obligations. This
indicates that this is the right time for the private sector, in
general, and the MSME sector, in particular, to explore this
market.
MSMEs are repositories of knowledge and innovation.
They are nimble in developing and assimilating niche
technologies, thus creating intellectual property through
breakthrough R&D. Coupled with the regulatory support
extended by the government, they are in a position to drive
the much-needed indigenization in A&D. MSMEs can opt to
enter the A&D space via several routes, as follows:
Eye on Defence | 17

18. DPSUs, OFB, DRDO and other government
establishments
What: Public sector companies possess huge infrastructure
and manufacturing facilities; experience in systems
integration with imported technology; trained engineering
and manufacturing manpower; and access to defence
research facilities, coupled with strong financial backing
by the MoD. Also, they enjoy facilities in domains such as
taxations, ERV and sometimes prioritization in tenders,
making them the preferred choice of global manufacturers.
Given their standing, MSMEs could contemplate becoming
suppliers to these public sector units for various
subcontracting and shared research opportunities, and
specializing in some of the segments. This will help them
attain marketing support and develop understanding of the
market while they build capacity to take on larger, more
technologically significant high-margin orders.
Why: Significant opportunities that exist within the various
departments and agencies of the MoD are listed in the table
below.
Revenue
procurement
The total budget of the MoD is divided into capital (45%) and revenue (55%) spend. About 40% of the
revenue budget is spent on procuring items such as spares and MRO services for existing weapon
systems through the various base repair depots of the IAF, workshops of the Army and naval dockyard
of the Navy. These pose as niche opportunities for MSMEs, especially after the MoD has allowed the
participation of private companies in MRO activities through DPP 2013.
Supplier to
DPSUs
The execution period for the order books of some DPSUs is as high as 18 years. Given the everincreasing order books owing to nominated projects, sub-contracting and outsourcing are set to grow.
The projects include development plans such as LCA, Project 75-I, Towed howitzer, missile programs,
and multi role helicopters and licensed production such as T 72,90 tanks.
JV with DPSUs
The government has recently issued guidelines for the formations of JVs. DPSUs are now open to
collaboration with private sector companies. To meet the challenge of expanding capacity, as well
as ensure timely delivery, DPSUs will need to harness the potential of the MSME sector and create
capabilities and capacities to outsource production, and processes and research to the latter. They
may even partner for specific offset projects.
DRDO
The DRDO has openly expressed its desire to work more closely with MSMEs to drive innovation in its
50 odd labs across the country. The Directorate of Industry Interface and Technology Management
(DIITM) within DRDO intends to partner with MSMEs for technology partnerships, prototype
development, funding developing technologies, productionizing the technologies and other innovative
models of association.
Modernization of
DPSUs and OFs
To keep pace with the quantitative and qualitative requirements of the services sector and of other
users, the government has initiated the modernization of DPSUs and OFB through various greenfield
and brownfield projects, as well as through new capital, and renewal and replacement of obsolete
plant and machinery. Investment of more than INR20 billion is expected during 2012-13 on this
ambitious project.
How: DPSUs and OFs have, as a policy, been outsourcing many of their requirements and have developed a wide vendor base,
which includes a large number of mid- and small-scale enterprises, apart from large-scale industries. Percentage growth in
vendor base is expected to increase by 6% until 2015–16.
DPSUs, along with OFs, outsource 24%–27% of their orders to small- and mid-sized enterprises (SMEs). Requirements and
tender documents are available at their respective websites, in government tenders under respective heads. DPSUs’ websites
give reference to the purchase manual and sub-contracting registrations of vendors and sub-contractors. The Defence
Procurement Manual, 2009 (DPM 2009), which covers all revenue procurement and procedures for the registration of firms,
follows the Joint Services Guide: 015:13:03:2007 (JSG-015). This guide provides the methodology of assessment and
registration of vendors, as well as their performance appraisal on technical and financial aspects and classification. Interested
18 | Eye on Defence

19. firms can download “Supplier Registration Form” and submit
it duly filled. Along with this, they are required to enclose
their company profile/catalog and details of similar jobs
undertaken, and of staff and operatives, annual reports,
CVs of key officers, list of customers and other relevant
information to prove their competence.
Vendors registered with one department of the MoD can be
considered for procurement by other departments. Despite
a common format, procurement agencies such as DGOF,
DPSU, DRDO and DGOS follow their own vendor registration
process, with no common database.
Offsets provide an unprecedented opportunity for Indian
MSMEs to participate in the A&D industry and ultimately get
inducted into the global supply chains of OEMs. To become
an IOP, the Indian partner needs to be:
•
Involved in eligible products/services (Annexure VI to
appendix D-DPP 2013)
•
Owned and controlled by Indian promoters
•
Carrying out manufacture/provision of services from
within the territory of India
Production/Procurement
organization
Estimated
vendors
Nature of procurement
Remarks
Director General Ordnance
Factories
2000
Input material/component/
subsystems
•
No authentic single-source
database is available
Defence Public Sector
Undertaking
1800
Input material/components/
sub-assemblies
•
DGQA/Service
Headquarters procurement
of parts /sub systems by
Material Organization
2500
Spare parts/replacement items
Some MSMEs are registered with
more than one agencies, even
within the organization
•
Almost 95% of the vendors are
MSMEs
DRDO
400
Sub systems development
Source: Enhancing Role of SME’s in Indian Defence Industry, Ernst and Young, 2009
Offset route to success in A&D
•
Since the introduction of the offset clause (in the revised
DPP announced on 1 July 2005), the MoD has concluded 16
offset contracts worth US$4.3 billion with various vendors,
according to section 2.1 “Management of Defence Offsets”
of the Report No 17 of the Comptroller and Auditor General
2012-13. If the current pace of modernization continues,
offset business worth US$24 billion may be expected to
flow into the sectors of defence, civil aerospace and internal
security in the next decade.
Fig C. Value of offset contracts in USD million per year
Compliant with the extant regulations of the GoI
(including the FDI policy)
•
Hold an industrial license for the MANUFACTURE of
defence goods (as appearing in the newly announced
defence items list on the Department of Industrial Policy
and Promotion website)
A healthy financial position, a good track record of timely
supplies, project execution and the ability to absorb
technology will undoubtedly increase favor for the
company. OEMs also insist that the IOP have the requisite
certifications including AS 9100C and ISO 14001.
1684
768
1010
2007
386
207
54
2008
2009
2010
2011
2012
Source: Defence Offsets - An opportunity in the making by KPMG
Eye on Defence | 19

20. OEMs are very particular about certifications and processes
to be put in place with regard to suppliers.
Other entry options
•
Indian private integrators
•
Globally, OEMs and Tier 1’s use a rating scale; some of
them may have minor modifications such as Gold Tier
and Silver Tier.
To get a “PREFERED” Supplier status usually takes 2-3
years and includes a thorough technical and financial
audit, among other qualification criteria.
Once qualified, the OEMs support its suppliers in developing
world-class facilities, best practices, processes; attaining
certifications and credit lines, and building an upstream
supply chain. This process then makes the suppliers
attractive to other OEMs, which become willing to enter
long-term contracts with the supplier in the high-margin
A&D domain. After the successful execution of the offset
program in terms of time and cost, the IOP may become
the global preferred supplier to OEMs that are looking at
offsets as an opportunity to build a supplier base in low-cost
economies.
The participation of private sector players is on the rise
since the government liberated the A&D sector. These
players have developed capabilities and have invested in
infrastructure to combine the best managerial acumen
with project management experience. MSMEs must see
larger private companies as partners in their development
and growth. Various avenues of participation may include
engaging in joint bidding, consortia, production, and
marketing and business development, particularly for
government procurement programs. Successful examples
include Pinaka Rockets and Samyukta Electronic Warfare
Systems. MSMEs have a vibrant culture of innovation.
They could help large private companies develop and
productionize niche technologies. Alternatively, they could
participate in supplier development programs, where SMEs
are coached and mentored in key areas such as design and
production engineering.
Supplier Status
Status
Category
Rating
Certified
Incentives
Purchase orders
Approved
Preferred
>98%
Yes
Yes
Yes
Probationary/
Entry
<95% or less than
minimum number of
orders yet to be placed
or 1 Qtr. Data only
No
No
No
Conditional
<95% for 2or 3 Qtrs.
No
No
Yes / No
Dis Approved
Unacceptable
performance
No
No
No
Dis Approved
20 | Eye on Defence

21. Development/Participation in clusters
A cluster consists of groups of associated and
interconnected firms that are linked vertically and/
or horizontally through the similarity of their products,
services, input, technologies, transportation, warehouses
and communication. These similarities result in
interrelationships and trust, which build collective efficiency.
A&D MSMEs could benefit from such an arrangement.
Furthermore, clusters facilitate technology and personnel
sharing and create opportunities for enhanced efficiency in
organizations. They also provide joint business development
opportunities, as well as better access to market information
and capital. Common facilities for design, testing and
simulation may be established in SME clusters, as required,
on a pay-per-use model.
Cases in point are the Pune Auto cluster and Bangalore
Technology cluster. The Faridabad industry belt could
provide a model to that effect. Aerospace parks/SEZs are
coming up, especially in Karnataka, Tamil Nadu and Andhra
Pradesh.
Joining hands with MSMEs outside the nation
MSMEs from other parts of the world (especially UK and
US) are increasingly expressing interest to collaborate with
Indian companies on Indian programs and create pockets
of research, production and training excellence in the
Southeast Asia region. They are often wary of tying up
with larger companies due to fears of divergent capabilities
and priorities. Collaborating with these foreign companies
through research and production programs could result
in mutually beneficial ventures. The trade associations of
various countries organize regular business delegation
visits for MSME representatives of their countries to look for
mutually profitable partnerships.
Associating with these companies for co-production,
knowledge sharing and capability building could help Indian
MSMEs understand global best practices, get access to
new markets and opportunities, and develop technological
leadership in the industry. This may even help Indian
companies establish direct supplier relationships with
foreign Tier 1 manufacturers and OEMs.
References:
1. Ministry of Micro Small and Medium Industries 2012-13
annual report
2. Report, Working Group on Defence Equipment, Planning
Commission, 2011
3. Website of Ministry of Micro Small and Medium
Industries, http://msme.gov.in/, accessed 5 December
2013
4. Enhancing Role of SME’s in Indian Defence Industry,
Ernst and Young, 2009
Eye on Defence | 21

22. Request for Information (RFIs) for
October–December 2013
Date of issue
RFI details
Response
date
Issued by
Defence
service
5 Dec 2013
Taser (Advance Pistol) for Indian Army
26 Dec 2013
MGO PPO-5
For IA
21 Nov 2013
Total Station as a surveying
instrument
20 Dec 2013
Directorate of Hydrography Navy
For IN
21 Nov 2013
Hydrographic Single Beam ECHO
Sounder
20 Dec 2013
Integrated HeadQuarters, Ministry
of Defence(N)
21 Nov 2013
Motion Sensors DOH
20 Dec 2013
Directorate of Hydrography
Integrated - MoD Navy
For IN
20 Nov 2013
Fire fighting systems/equipment
20 Dec 2013
Directorate General of Ordnance
Service
For IA
11 Nov 2013
Armoured Recovery Vehicle (ARV)
20 Dec 2013
DG of Eme (Eqpt)-Master General
of Ordnance Branch
For IA
25 Oct 2013
Mobile Missile Coastal Battery (MMCB)
22 Dec 2013
Directorate of Staff Requirements
MOD - Navy
For IN
24 Oct 2013
Day and Night Rangefinder Binoculars
12 Dec 2013
Directorate of Staff Requirements
MOD - Navy
For IN
24 Oct 2013
Electro Optical System with Automatic
Infrared Search and Track Facility
Having Provision for Remoting Gun
Mounts (EOIRST)
12 Dec 2013
Directorate of Staff Requirements
MOD - Navy
For IN
24 Oct 2013
Helmet Mounted Night Vision Sights
(HMNV)
12 Dec 2013
Directorate of Staff Requirements
MOD - Navy
For IN
24 Oct 2013
Day and Night Rangefinder Binoculars
12 Dec 2013
Directorate of Staff Requirements
MOD - Navy
For IN
15 Oct 2013
Rappelling Gloves
29 Oct 2013
ADOS( Store)
For IA
8 Oct 2013
Driving Simulators
28 Oct 2013
Army Air Defence College,
Gopalpur
For IA
8 Oct 2013
DRONA Small Arm Simulator (MK-III)
28 Oct 2013
Army Air Defence College,
Gopalpur
For IA
8 Oct 2013
Differential Global Positioning System
(Satellite Based)
31 Oct 2013
Principal Director of Hydrography
- Navy
For IN
1 Oct 2013
Portable Deep Water Noise Range
(PDWNR)
21 Oct 2013
Project-75, IHQ MoD (Navy),
For IN
22 | Eye on Defence

23. Request for Proposal (RFPs) for
October–December 2013
Date of issue
RFP details
Response date
Issued by
Remarks
6 Dec 2013
Bullet proof harness with shoulder pad
23 Jan 2014
HQ South Bengal Frontier
For BSF
Dec 2013
Prequalification are invited for Design
Fabrication, Supply, Installation,
Commissioning, Performance
Demonstration of System / Plant and
Machineries - A required for Capacity
Augmentation for Manufacture of
Explosive Reactive Armour (ERA) to
500 sets/Annum at site & acceptance
trial
4 Jan 2014
OFB, Bhandara
For OFB
13 Dec 2013
Air defence weapon station
7 Jan 2014
Combat Vehicles Research
& Development Estt.
Issued By DRDO
3 Dec 2013
25 Dec 2013
Location of Miss and Hit, Combat
Shooting Target System and
Improvised explosive device Simulation
System
Infantry School
For IA
25 Nov 2013
Bullet Proof Guard Room
17 Dec 2013
Staff Officer Provost HQ
SWAC, IAF
For IAF
Qty: 13 Nos.
19 Nov 2013
Portable High Intensity Search Light
17 Dec 2013
Col GS (MIS)
For IA
Qty: 600 Nos.
19 Nov 2013
High Resolution Binocular
9 Dec 2013
HQ Central Command Avn
Branch
For IA
Qty: 172 Nos.
18 Nov 2013
MORTAR Bomb ML 120 MM Smoke
With Fuze
10 Feb 2014
MGO PPO
For IA
Qty: 9605 Nos.
18 Nov 2013
Automatic Gun Alignment & Pointing
System
19 Dec 2013
ARDE
Issued by DRDO
14 Nov 2013
Electronic Flash Gun
22 Nov 2013
Air Force station Bidar
For IAF
13 Nov 2013
Air Brreak Contractor K-915 II-4
Complete
3 Dec 2013
LP Cell
For IAF
Qty: 10 Nos.
12 Nov 2013
Goggle GS MK-II
10 Dec 2013
Ordnance Factory Dehra
Dun
For OFB
8 Nov 2013
Spotting Scope with Digital SLR
Camera
3 Dec 2013
DG ITBP
For ITBT
Qty: 03 Nos.
8 Nov 2013
Fuse Link Cartridge Ceramic 20A for
Indian Army
18 Nov 2013
Comdt COD Agra
For IA
Qty: 12 Nos.
Eye on Defence | 23

24. Date of issue
RFP details
Response date
Issued by
Remarks
7 Nov 2013
Range Operational Communication
(ROC) System
2 Jan 2014
ADE
Issued By DRDO
7 Nov 2013
Anti G-Suit for MIG Series and SU-30
Aircrews
12 Dec 2013
Directorate of Procurement For IAF
2 Nov 2013
Fuse PV 40A 30V for ICV BMP
12 Nov 2013
Comdt COD Agra
For IA
Qty: 42 Nos.
1 Nov 2013
Boom boat Barrier with Retractable
Antidiver Net and fixed Antidiver net
18 Nov 2013
Base Logistics Officer
-Visakhapatnam
For IN
31 Oct 2013
Hand held GPS
26 Dec 2013
Aeronautical Development
Establishment MoD
Issued By DRDO
31 Oct 2013
Advance Surveillance Receiver
25 Nov 2013
GOC-in-C, Northern
Command
For IA
Qty: 33 Nos.
29 Oct 2013
IBs EX-ABG Underwater and Jet
Routines(Work Package Yearly, Two
Yearly and Three Yearly)
24 Nov 2013
Headquarters Coast Guard
Region North West
For ICG
23 Oct 2013
Light Weight Jacket
11 Nov 2013
HQ Central command Ord
Branch
For IA
Qty: 516
22 Oct 2013
Propulsion system sensors for Rustom
II Aircraft
6 Nov 2013
Aeronautical Development
Establishment
Issued By DRDO
Qty: 01 Nos.
22 Oct 2013
Aircraft Weighing System
6 Nov 2013
Aeronautical Development
Establishment
Issued By DRDO
Qty: 03 Nos.
18 Oct 2013
312A-292 Lug 356 for Aircraft Bombs
on NATO aircrafts
11 Nov 2013
Air Force Station Amla,
For IAF
Qty: 3000
18 Oct 2013
Personal Protective Equipments:
Safety Helmets, Respiratory Mask,
Gloves Goggle Etc
5 Dec 2013
Naval Materials Research
Laboratory
Issued By DRDO
Qty: 14 Items
14 Oct 2013
Installation Of Rukmani C Band ­
Satcom Terminal On Board Twelve
WNC Ships
11 Nov 2013
The Admiral
Superintendent
For IN
14 Oct 2013
Battery Operated Mobile Platform
8 Nov 2013
---
For IN
12 Oct 2013
CCTV Surveillance system (Turn Key
Project) at AF Stn Kanpur
30 Oct 2013
Air Force Station Kanpur
For IAF
10 Oct 2013
Snow Mobiles
12 Nov 2013
HQ Northern Command,
Engineers Branch
For IA
Qty: 20 Nos.
9 Oct 2013
Electric Hand Gun, Electric Hand
Blower
28 Oct 2013
BEML Limited
Qty: 1000 each
9 Oct 2013
VHF and UHF Aerials for GRSE Yard
Nos. 2092-99 (LCU Project)
18 Oct 2013
GRSE
---
8 Oct 2013
Propellant NGB-204/0.41x15x 167
for 84 MM CARL GUSTAF Ammn.
29 Nov 2013
Ordnance Factory
Khamaria
For OFB
Qty: 110000 Kg
24 | Eye on Defence

25. List of Industrial Licenses (ILs) filed
for September—October 2013
Application
no. and date
Name of the applicant
Item of manufacture
61
31/10/2013
Lotus Aviation Pvt. Ltd.
Personal locating beacon, emergency locating transmitter, terrain
and obstacle warning system, test equipment
60
21/10/2013
Bharat Forge Ltd.
Small arma, weapons & armaments, fuse setting devices specially
designed for ammunition, ammunition, military ground vehicles,
special naval equipment, etc.
59
18/10/2013
Paramount Communications Ltd.
Wire, cables, cable harnesses and components thereof for various
applications including naval, aerospace and military end-use
58
18/10/2013
HICAL NSE Electronics Pvt Ltd.
Manufacture of parts and accessories for industrial machinery other
than for food and textile industries and other products
57
8/10/2013
Pipavav Defence And Offshore
Engineering Co. Ltd.
Mfg., assembly & testing of radars, radio remote control, apparatus
and air, land and naval electronic warfare systems for the Indian
armed forces
56
3/10/2013
Samtel Thales Avionics Ltd.
Ml5, ml10 & ml 11
55
19/09/2013
Vetrivel Explosives Pvt. Ltd.
Class-2 slurry/emulsion explosives, bulk class-2 slurry/emulsion
explosives, bulk explosives
54
19/09/2013
Mahindra Telephonics Integrated
Systems Ltd.
Manufacture, integration, testing, maintenance, repair, overhaul
and installation of c4isr systems incl. but not limited to radars,
surveillance equipment, intercommunication and electro optical
systems for defence platform
53
17/09/2013
Arcotech Limited
Brass cups
52
11/09/2013
Mahindra Telephonics Integrated
Systems Ltd.
Design, development, mfg., integration, testing, maintenance, repair,
overhaul and installation of electronic components, subassemblies,
assemblies and cable-harness for all types of defence platform
Eye on Defence | 25

26. New projects/
investments/contracts
Name of entity
Project details
Value*
Ordnance
Factory Board
(OFB)
•
►
The MoD has cleared the OFB’s proposal to place an order for 235 T-90 tanks.
INR60 billion
•
►
The tanks will be manufactured with the transfer of technology from Russia.
Government of
India (GoI)
•
►
The GoI has approved a contract for the purchase of defence equipment, including
night vision devices and rockets, for the Armed Forces.
•
►
India will purchase 5,000 third-generation night vision and thermal imaging devices
for the Russian-origin T-72 and T-90 battle tanks and its BMP Infantry Combat
Vehicles (ICVs).
•
►
India will also purchase 10,000 rockets.
•
►
India may soon consider fresh acquisitions of the Israeli Barak surface-to-air
precision-guided missiles, manufactured by Israel Aircraft Industries (IAI).
•
►
The Indian Navy has already been using the missiles.
•
► will establish an unmanned aerial vehicle (UAV) facility at the Leelabari Airport
IAF
in Lakhimpur district, Assam.
•
►
The facility, which will deploy drones, is meant for reconnaissance along the IndoChina border.
•
► Israeli firm has been given the contract to construct the facility.
An
•
►
Mahindra Aerospace opened an aero-structure production facility at the Narsapura
Industrial Estate near Bangalore.
•
►
The factory is equipped to produce large, complex sheet-metal components through
CNC routing, stretch-forming, bladder press, heat treatment and other specialized
paraphernalia.
•
► covers 270,000 sq ft, including almost 110,000 sq ft of space for the production
It
of vital airframe assemblies and subassemblies.
•
►
The plant can generate up to US$40 million revenue per year, at its top capacity.
•
►
BDL opened a unit in Vishakhapatnam, its first in the city and third in the state
(Andhra Pradesh).
•
►
The unit will initially manufacture lightweight torpedoes and move on to
heavyweight torpedoes and related weapon systems such as mines and decoys.
•
►
German defence company Atlas Elektroniks is close to signing a deal with the Indian
Navy for the supply of low-frequency sonar systems for its warships.
•
►
The Active Towed Away Sonars (ACTAS) are intended to be mounted on six Indian
Navy warships. These low-frequency sonars with active and passive operating
system would help surface vessels locate enemy submarines, torpedoes and surface
ships from a very long range and launch attacks.
GoI
Indian Air Force
(IAF)
Mahindra
Aerospace
Bharat Dynamics
Limited (BDL)
Atlas Elektroniks
26 | Eye on Defence
INR50 billion
INR8.8 billion
INR2 billion
INR1.5 billion
INR600
million
NA

27. Name of entity
Project details
Value*
Bharat Forge
•
►
Bharat Forge will offer end-to-end solutions for artillery systems and armored
vehicle upgrades for T-72 and T-90 tanks and other artillery systems, including the
155/52 gun.
NA
•
►
The Foreign Investment Promotion Board (FIPB) approved the company’s proposal
to form a 74:26 JV with Israeli company Elbit Systems Land and C4I.
•
►
The GoI handed over Advance Light Helicopter (ALH) Dhruv to Maldives.
•
► will be mainly used for search and rescue operations.
It
•
►
The Indian Armed Forces have been assisting in capacity building across the
defence sector in Maldives.
•
►
HAL is developing an indigenous light utility helicopter to ferry troops and supplies
in high altitude areas such as Siachen Glacier.
•
►
The program for developing the 3-ton helicopter is in the “design freeze” stage.
•
►
The machine is expected to be ready by 2015.
•
►
The IAF may soon assemble 50 Mi-17 helicopters at its base repair depot (BRD) in
Chandigarh as part of its efforts to indigenize spares of the helicopters.
•
► has also taken up the job to overhaul SU30 fighter planes. However, it is still at
IAF
an initial stage, with only 5% to 10% of the job being done at BRD Chandigarh.
•
►
The Indian Navy is preparing to induct 45 warships and submarines by 2027 on
order with both public and private shipyards in India.
•
►
The Indian Navy has 132 ships, including 14 submarines and 216 aircraft, of which
80 are fixed wing, 122 helicopters and 14 unmanned aerial vehicles.
•
►
The Indian Navy had made a distinct shift from a buyer’s navy to a builder’s navy
and urged the industry to participate wholeheartedly in shipbuilding programs.
•
►
QuEST Global Manufacturing, in a JV with Saab AB, Sweden, inaugurated its
Aerostructure assembly facility at Hattargi in Belgaum, Karnataka.
•
►
The facility, located in QuEST’s fully operational SEZ, will develop its aerospace
business with focus on build-to-print assemblies for emerging market opportunities
in India.
•
►
Premier Explosives has set up facilities at its Peddakandukuru factory in the
Nalgonda district of Andhra Pradesh.
•
►
The company will use the facilities to process raw materials and to store commercial
explosives.
GoI
Hindustan
Aeronautics
Limited (HAL)
IAF
Indian Navy
QuEST Global
Manufacturing
Premier
Explosives
NA
NA
NA
NA
NA
NA
**The values of the deals have been converted to Indian Rupees using Oanda currency conversion tool
1US$ = INR62
Eye on Defence | 27

28. Sources:
1. Mahindra Aerospace inaugurated new manufacturing plant close to Bangalore, Mena Report, 31 October 2013, via Factiva, © Al Bawaba
2. “India to buy 6 more C-130J ‘Super Hercules’ aircraft from US for over Rs 4,000 crore”, Deccan Chronicle, 14 September 2013, via Factiva
3. Bharat Dynamics opens unit at Visakhapatnam, Business Line (The Hindu), 31 October 2013, via Factiva.
4. “Global Manufacturing Aerostructure assembly facility at Hattargi in Belgaum Aerostructures Assemblies India (AAI)”, Projects Today, 14 October
2013, via Factiva, © Economic Research India Pvt. Ltd.
5. “German firm set to supply sonar systems for Indian Navy”, Samay Live, 13 October 2013, via Factiva.
6. “Premier launches new facilities”, Business Line, Dec 16, 2013, via Factiva.
7. “India hands over Dhruv to Maldives”, Deccan Chronicle,15 December 2013, via Factiva.
8. “Bharat Forge offers local solution to Army’s needs”, Financial Express, 10 December 2013, via Factiva.
9. “India lines up Night-Vision purchase”, Jay Menon, Aerospace Daily & Defence Report, 4 December 2013, via Factiva, © McGraw-Hill, Inc.
10. Navy readies to induct 45 new warships, submarines”, Financial Express, 4 December 2013, via Factiva, © Indian Express Online Media Pvt. Ltd.
11. “HAL developing light choppers for high-altitude operations,” Press Trust of India, 14 November 2013, via Factiva.
12. “IAF to assemble 50 more Mi17 choppers,” The Times of India, 2 November 2013, via Factiva.
13. “IAF to set up UAV facility at Leelabari Airport,” Assam Tribune, 12 November 2013, via Factiva.
14. “India may consider fresh acquisitions of Baraks,” The Asian Age, 12 November 2013, via Factiva © 2013 Deccan Chronicle Holdings Ltd.)
28 | Eye on Defence

29. JVs and alliances
Name of the entities Nature of transaction
Value*
Reliance Industries
Limited (RIL) and
Dassault
•
► and Dassault are planning to set up a facility in Bangalore.
RIL
•
►
The facility will produce wings for the Rafale combat aircraft.
Bharat Electronics
Limited (BEL) and
Pilatus
•
►
BAE will manufacture electrical harnesses for the global supplies of Swiss company
Pilatus Aircraft Ltd.
•
►
The two companies will set up a manufacturing facility at BEL’s Bangalore complex.
The arrangement is part of the offset commitment of Pilatus, which is supplying 75
basic trainer aircraft to the Indian Air Force for around INR 38 billion.
•
►
The two companies will also review potential offset project opportunities in the near
future.
•
►
HAL signed an MoU with TII for the adoption of an Integrity Pact (IP), a tool
developed to ensure that all activities and transactions between companies or
government departments and their suppliers are handled in a fair and transparent
manner.
•
►
HAL has already signed this this pact with 115 vendors (85 foreign and 30 Indian).
•
► will support HAL by providing advice and resources to implement the IP program.
TII
HAL is the first defence PSU to sign such an MoU with TII.
HAL and
Transparency
International India
(TII)
INR10
billion
Indian Space
•
Research
Organization
(ISRO) and National
•
Aeronautics and
Space Administration
(NASA)
►
ISRO and NASA are in talks to jointly develop a dual frequency radar satellite. ISRO
has already conducted preliminary talks with NASA’s space communication and
navigation program office for the project.
•
►
Mahindra Aerospace signed a technology partnership with the Aernnova Group, a
leading aero structures Tier 1 supplier headquartered in Spain with global facilities.
•
►
Japan’s ShinMaywa Industries Ltd is seeking an Indian partner, mainly for the
maintenance, repair and overhaul (MRO) of the ShinMaywa US-2 amphibious aircraft.
The company will offer the amphibious aircraft to the Indian Navy.
•
NA
►
The company, however, does not want to partner with HAL, as the public sector
aerospace company is excessively large-sized and complicated for ShinMaywa.
•
NA
►
Aernnova and Mahindra Aerospace will work together to develop capabilities and
meet small aircraft market demand for mutual benefit. This is Aernnova’s first
technology partnership with an Indian aero structure manufacturer.
•
NA
►
The company currently has limited presence in the Indian civil aviation market and
hopes to forge a strategic alliance with India in the larger context of the expanding
Indo-Japan relations.
Mahindra Aerospace
and Aernnova
ShinMaywa
Industries Ltd
►
The project is expected to be completed by 2020.
NA
NA
Eye on Defence | 29

30. Tata Group and
AgustaWestland
•
►
FIPB approved a JV between Tata group and AgustaWestland to carry out integration
and flight testing of eight-seat AW119 helicopters.
•
NA
►
The JV, called the Indian Rotorcraft, will be a supplier to the Indian Defence Forces’
Reconnaissance and Surveillance Helicopter (RSH) program.
Sources:
1. “HAL signs MoU with Transparency International India”, Vayu Aerospace & Defence Review, 30 October 2013, via Factiva.
2. “EADS, IISc ally for aerospace research”, Deccan Herald, 25 October 2013, via Factiva, © The Printers (Mysore) Private Ltd.
3. “BEL to make aircraft harnesses for Pilatus”, The Hindu, 22 October 2013, via Factiva, © Kasturi & Sons Ltd
4. “Mahindra ties up with Aernnova to make small planes in India”, Domain-B, 22 October 2013, via Factiva, ©The Information Company Pvt. Ltd.
5. “RIL, Dassault plan to setup Rs 1000 crore warplane facility”, Financial Express, 11 December 2013, via Factiva.
6. “India JV may open way back for AgustaWestland,” Flight International, 12 November 2013, via Factiva, © Reed Business Information Limited.
7. “Isro, Nasa in talks to develop radar satellite,” The Times of India, 11 November 2013, via Factiva.
8. “Japanese firm looks for tie-up outside HAL”, S. Anandan, The Hindu, 25 September 2013, via Factiva, © Kasturi & Sons Ltd.)
30 | Eye on Defence

31. Country-level deals and initiatives
Country
Nature of transaction
Additional details
China
•
►
China and India are working to forge a Border
Defence Cooperation Agreement (BDCA). Both
sides have exchanged drafts of what they opine
should form part of the new agreement.
•
India is concerned with China’s rapid expansion
►
of forces in the Line of Actual Control (LAC)
during the past decade, with as many as 27
airfields in Tibet and Xinjiang.
•
►
The GoI has conveyed to China that it will
not be possible to freeze the infrastructure
construction and forces at existing levels along
the 4,057-km-long LAC.
•
The GoI has recently undertaken to build a
►
network of border roads, upgrade advanced
landing grounds, raise a Mountain Strike Corps
and base Sukhoi Su-30MKIs in the north-east.
•
►
India and France signed 11 MOUs in the
field of science and technology at the IndiaFrance Technology Summit, organized by
the Department of Science and Technology,
Confederation of Indian Industry (CII) and
French Embassy.
•
The agreements include an MOU between the
►
Department of Science and Technology and
Institut National de Recherche en Informatique
et en Automatique (INRIA) for a joint targeted
program in information and communication
science and technology.
•
An
► MOU was also signed between the
Department of Biotechnology (DBT) and CNRS
for establishing an international associated
laboratory in the area of systems immunology
and genetics of infectious diseases, LIA SIGID.
France
Kyrgyzstan
•
►
The Defence Minister of Kyrgyzstan visited India •
from 11 to 15 September 2013.
•
► official meeting was held between the
An
Defence Minister of India and the Defence
Minister of Kyrgyzstan.
Both the sides reaffirmed their desire to further
►
enhance bilateral defence cooperation in areas
of interest such as training and UN peace
keeping.
•
Both sides also agreed to take steps to enhance
►
cooperation between the armed forces of the
two countries.
•
Oman
Russia
►
The ministers discussed a range of issues of
mutual interest concerning bilateral defence
cooperation and security issues.
•
►
Indian naval ships INS Mysore, INS Tarkash,
INS Tabar and INS Aditya are on a month-long
overseas deployment to the Gulf to reinforce
bilateral ties and participate in naval exercises
with friendly regional navies.
•
The visit is aimed at bolstering ties with Oman
►
and reinforcing cooperation in maritime
security between India and Oman.
•
The visiting ships form part of the Indian
►
Navy’s Western Fleet under the Western Naval
Command and are based in Mumbai.
•
►
Russia and India are looking to the possible
production of Russia’s Superjet 100 regional
airliner and a future Irkut MS-21 jetliner in
India.
•
•
►
The two countries have also agreed on
a collaboration to jointly develop and
manufacture civilian aircraft and helicopters.
Under the agreement for civilian aircraft, a
►
JV company will be established in India for
manufacturing and modifying Ka-226T light
helicopters for medical, rescue and other
purposes.
•
According to India’s calculations, the cost of
►
a plane built on the territory of India can be
reduced by 40%.
•
The Russian Government has also offered to
►
establish a manufacturing facility in India for
the joint production of defence hardware.
Eye on Defence | 31

32. Spain
►
Spain is close to signing a deal with Indian Navy
for shipbuilding.
•
The US
•
►
Navantia, a company owned by the Government
of Spain, will build ships and submarines in
•
India after the transfer of technology.
•
► Deputy Defence Secretary proposed ways to
US
deepen defence ties between the US and India,
including co-development of the next version
of the Javelin anti-tank missile now built by
Raytheon Co and Lockheed Martin Corp.
•
•
Navantia has an MoU with India’s Larsen &
►
Toubro (L&T), which is already working with the
Indian Navy in heavy engineering.
Navantia and L&T are working jointly on
►
building four landing platform docks for
amphibious military operations and disaster
relief for the Indian Navy.
Rather than simply buying this generation of
►
Javelin, India would co-develop and co-produce
the next generation of Javelin for international
buyers.
Sources:
1. “India and Kyrgyzstan to Increase Defence Co-Operation”, PIB- GoI website, pib.nic.in/newsite/AdvSearch.aspx, accessed 5 December 2013)
2. “India, France sign 11 MOUs for promoting technology”, Dion News Service, 24 October 2013, via Factiva.
3. “Border Defence Co-operation Agreement with China”, Vayu Aerospace & Defence Review, 30 October 2013
4. “Russia eyes production of commercial aircraft in India”, Press Trust of India, 4 October 2013, via Factiva
5. “India, Russia agree on joint aircraft production”, Aerospace Daily & Defence Report, 1 October 2013, via Factiva, © McGraw-Hill, Inc.
6. “Spain offers India advanced ship building technology,” Indo-Asian News Service, 30 November 2013, via Factiva © Indo-Asian News Service.
7. Source: “Indian naval fleet set to boost security ties”, Times News Service, 21 September 2013, via Factiva
32 | Eye on Defence

33. Industry buzz
IAF to build its own trainer aircraft
The IAF is all set to independently manufacture its first
aircraft. The task has been entrusted to 11 Base Repair
Depot (BRD) of the Head Quarters Maintenance Command
(MC) in Nashik. The aircraft manufactured by the IAF will be
a trainer one. The project is expected to be operational by
2015–16.
(Source: IAF to build its own trainer aircraft, Press Trust of India, 7
October 2013, via Factiva.)
India’s indigenous LCA Tejas to join IAF
India’s indigenous light combat aircraft (LCA) Tejas was
granted initial operational clearance (IOC) to join the air
force. The LCA project was first approved in 1983 at a cost
of INR 5.6 billion to replace the aging MiG-21. The IOC
signifies that the fighter is fully airworthy in varying climatic
conditions, ranging from extremely low temperatures of
high-altitude areas to the searing heat of deserts. The Tejas
Mark-I fighter, however, will be ready to go to battle only in
2015, once it gets the final operational clearance (FOC),
after the integration of all weapons and other systems, to
ensure that it can fire 23mm guns, rockets and beyond
visual range (BVR), missiles as well as undergo air-to-air
refueling. As of now, the Tejas can let loose only close-range
R-73 air-to-air missiles and air-to-ground laser and unguided
bombs.
(Source: “Made in India Tejas to join IAF”, Deccan Chronicle, 20
December 2013, via Factiva.)
India to bolster UAV fleet for border
surveillance
India plans to invest over US$2 billion in the next five years
to strengthen its UAV fleet and make its border surveillance,
intelligence and communications capabilities sharper. The
Indian Army invited bids in October to purchase 49 UAVs for
real-time intelligence and surveillance to detect human or
vehicular movement, target recognition and identification,
and electronic intelligence and communication intelligence.
The bids have been invited from private Indian companies
Tata Advance Systems, Hi-tech Robotics, Idea Forge,
Dynamatrics, Ufcon, Omnipresent Technologies,
Datapattern and government-owned Bharat Electronics.
(Source: “India to bolster UAV fleet for border surveillance”, Vivek
Raghuvanshi, Defence News, 28 October 2013, via Factiva © Army
Times Publishing)
Navy may extend service life of six
submarines
The GoI is examining a Navy proposal to extend the
service life of six Russian-built Kilo-class submarines. In
the late 1990s, India approved a 30-year plan to build 24
diesel-electric submarines to augment its submarine fleet
strength. However, there is a three-year delay in the delivery
of the first of the six submarines from Scorpene that are
under construction at the Mumbai-based Mazagon Docks.
Furthermore, there is a two-year delay in the government’s
processing of a tender for the second line of six submarines.
The life extension will plug the gaps of reduction in the
Navy’s conventional submarine fleet.
(Source: “Navy may extend service life of six submarines, Says Antony”,
New Indian Express, 9 December 2013, via Factiva.)
Indian Navy inducts advanced jet trainer
Hawk 132
The Indian Navy has inducted the fourth-generation
advanced jet trainer aircraft, Hawk 132. The aircraft was
built by HAL with the transfer of technology from the UK.
Hawk 132 is equipped with advanced and reliable navigation
systems and has the capability to deploy an impressive array
of weaponry, including air-to-air missiles, air-to-ground
rockets, bombs and guns. It can also carry two extra fuel
tanks under the wing, which give it the capability to travel
additional distance. Hawk 132 is a competent aircraft being
used by 24 nations around the world.
(Source: “Indian Navy inducts advanced jet trainer ‘Hawk 132’,” Press
Trust of India, 6 November 2013, via Factiva)
Indian Mars orbiter out of Earth’s influence
The Indian Orbiter to Mars zoomed out of the Earth’s
sphere of influence while cruising in the Sun orbit on its
10-month long voyage to the red planet. The Earth’s sphere
of influence extends up to 925,000 km in the interplanetary
space. Scientists at the Indian telemetry, tracking and
command network (Istrac) and the Indian Deep Space
Network are monitoring the spacecraft’s movement in the
sun-synchronous orbit and checking its subsystems. When
the spacecraft is closest to Mars, it will be captured into the
Martian orbit through slowing its speed. India is the first
Asian country and fourth nation in the world to leap into
the interplanetary space with its Rs.450-crore exploratory
mission to Mars, about 400 million km from Earth.
(Source: “Indian Mars orbiter out of earth’s influence”, Indo-Asian News
Service, 4 December 2013, via Factiva.)
Eye on Defence | 33

34. India successfully launches Agni 5 missile
Agni 5, India’s long-range inter-continental ballistic missile
(ICBM), was successfully launched on 15 September 2013
from DRDO’s Launch Complex at Wheeler’s Island. Various
ships with radars and electro-optical systems, stationed at
mid-range and at the target point, tracked the ICBM in real
time. The Agni 5 is powered by three stage-solid rocket
motors. It is designed to deliver nuclear warhead with high
precision.
India’s defence exports rise in October
2013
(Source: “Latest launch of Agni 5 ICBM”, Vayu Aerospace & Defence
Review, 30 October 2013, via Factiva)
Despite the global slowdown, India was able to manage
decent exports in October due to the diversification of its
export markets. The exports of spacecraft, aircraft, ships
and boats from India rose to US$831 million in October
2013 from US$ 130 million in October 2012. A countrywise analysis reveals that India’s defence exports to the US
fell by 11% in October 2013 on a y-o-y basis, while exports
to the UAE, Italy and Saudi Arabia rose by 32%, 15% and
10%, respectively.
India tests N-capable missile
(Source: “Aerospace exports flying high,” Deccan Chronicle, 23
November 2013, via Factiva, © Deccan Chronicle Holdings Ltd.)
India successfully test fired its nuclear-capable surfaceto-surface missile, Prithvi-II, for the third time within the
last two months. The indigenously developed ballistic
missile, with a maximum range of 350 km, was fired from
the integrated test range at Chandipur-on-sea in Balasore
district, about 230 km from Bhubaneswar. The test was
carried out by the Strategic Forces Command (SFC) as part
of a regular training exercise.
(Source: “India tests N-capable missile”, The Financial Daily, 5 December
2013, via Factiva.)
India unveils shorter-range Pragati missile
India will replace its tactical ballistic missile Prithvi-1 with a
shorter-range missile, the Pragati. Unlike the Prithvi-I, which
is propelled by a liquid fuel, Pragati is a solid-fuel missile
with a shorter range of 70–170 kms. The Army had been
demanding a solid-fueled missile in place of the Prithvi-I
missile since its induction in 1994. The Army claims that the
Prithvi-I was cumbersome to move, maintain and deploy.
(Source: “India Unveils Shorter-Range Pragati,” Defence News, 11
November 2013, via Factiva © 2013 Army Times Publishing)
Government wants to end PSU’s monopoly
in defence contracts
The GoI is opening up bidding for defence contracts to
private players to to end the monopolies of PSUs. Public
sector players have traditionally had privileged access to
government contracts, especially in the field of defence
manufacturing. The IAF supports the move and believes that
the Indian private sector has the capability to design and
develop air combat platforms.
(Source: “Breaking PSUs’ monopoly: Defence system eyes private cos,”
MoneyControl, 22 November 2013, via Factiva.)
AgustaWestland faces termination for
breach of deal
The GoI is set to cancel its INR 35.46-billion VVIP helicopters
contract with AgustaWestland. The company had violated
the contractual provisions and the integrity pact in the
deal to supply 12 AW-101 choppers to the IAF. The MoD
issued the final show cause notice to AgustaWestland on 21
October 2013. The final cancellation process was initiated
after the MoD received the opinions of the Law Ministry
and the Attorney General that there was a clear violation
of the integrity pact and the contractual obligations by
AgustaWestland.
(Source: Agusta faces termination as AK claims breach of deal, The
Times of India, 31 October 2013, via Factiva, © Bennett, Coleman & Co.,
Ltd.)
34 | Eye on Defence

35. Sikorsky targets helicopter production in
India
Tata venture makes first indigenized
chopper cabin
Sikorsky Aircraft Corp., a unit of United Technologies Corp.,
plans to bid for US$14-15 billion worth military helicopter
contracts in India over the next 10 to 15 years. Sikorsky
believes that its existing production facility with India’s
Tata Group in Southern India to make cabins for a civilian
transportation helicopter could easily be retooled to produce
military helicopters such as the Black Hawk.
The JV of Tata Advanced Systems Ltd (TASL) and Sikorsky
Aircraft Corporation has produced an indigenized cabin for
the S-92 helicopter. The venture formally handed over the
cabin to Sikorsky at a function held at its facility in Adibhatla
near Hyderabad. The Adibhatla facility has so far produced
50 cabins after rolling out the first cabin with imported parts
in 2011. Sikorsky and TASL had entered an agreement in
2009 for the production of S-92 helicopters for civilian use
in India.
(Source: “Sikorsky Targets Helicopters for India,” The Wall Street Journal
Asia, 1 November 2013, via Factiva © 2013 Dow Jones & Company, Inc)
(Source: “Tata venture makes first indigenised chopper cabin “, Business
Line, 25 October 2013, via Factiva, © Informatics (India) Ltd. )
Eye on Defence | 35

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