Wednesday, May 13, 2015

Big Bang: India Clears 3 Big Deals With Russia, Europe & the US

Big raft of decisions just pushed through the chute at the Indian MoD, leading with an expected decision to clear a single-vendor bid by the Tata-Airbus consortium to supply 16 C295 transports in flyaway condition and 40 off a new Indian production line. A historic step in many ways. Once done and dusted, as you've read here on Livefist, it'll be the first time aircraft are built for the military by a private firm. Or any firm, really, other than HAL.

Lots of other deals cleared today by the Defence Acquisition Council (DAC), the apex MoD body before final political signatures. A surprise win today was for Russia's Kamov: a surprise only that it came so soon. The company will set up a local line to build 200 Ka-226T Sergei light helicopters for the Indian Air Force and Army.

Most significantly for the Army, the government has cleared the manufacture of 145 BAE Systems M777 ultra-light howitzers in India through a private Indian production agency, likely to be among L&T, Tata or Mahindra Defence. Boom. A deal back from the dead.

Other deals cleared this evening include a go ahead for procurement of 38 additional Swiss-made Pilatus PC-7 Mk.2 basic trainer aircraft, the procurement of communication terminals for Advanced Landing Grounds (ALGs) of the IAF. Interestingly, the IAF has also been given approvals to obtain two 7-year-old wide body airliners from state-owned Air India for its VVIP communication squadron. 

For the Indian Navy, the MoD has cleared the raising of six  regiments of the BrahMos missile for the three Delhi-class destroyers and first three Talwar-class frigates. Preparatory studies for the construction of India’s second indigenously made aircraft carrier given the go ahead.


Nikhil Puranik said...

Hi Shiv

This is good news. I was wondering about one thing. raising 6 BrahMos regiments for Delhi and Talwar class ? Very weird choice of words.

I feel Navy is acquiring 6 BrahMos to be used as coastal defense battery to replace Rubezh. It would be great if you could confirm this. Thanks.

Anonymous said...

Bold and Beautiful by the government.

Someone has to take a decision at some time than just speaking big getting the RFP and delaying it for someone else to do it, then what happens to the money allocated, it just sits there and back to the finance, that's hurt the nation in that, that money has to be spent at some time, miracles need to happen and we have to pay a higher price.

Now someone would come back saying that was a bad decision, shut up, it's a decision of nerve and if you were unable to take it understood, atleast standby people when something good is done.


Anonymous said...

NDA RMs... do the job... just talk...

Anonymous said...

This Modi sarkar wants to screw up existing DPSU set up in a big way. When HAL already has plans for RTO and MTA what was the need for C295 in collaboration with a family owned company with no experience or expertise in aviation?
Ditto same story with M777 howitzers. When we have OFBs to absorb and make weapons in cost effective manner what is the need to have them manufactured by family owned companies with no expertise or background in defense? Why is Indian taxpayers money being looted by this Modi sarkar in such blatant manner?
Will the opposition wake up and oppose such blatant moves to rob the nation or they too are hand in gloves with these monopolistic family owned companies?

Tako Nada said...

Good decision. Boost desi aerospace industry tremendously and wiser approch to make mountain artillery gun in India so Indian vendors well be well prepared when after 5 years down the line different artillery will be produced in India.

Anonymous said...

Wow! this govt. is decisive.. Great news for Indian Aerospace industry.. Hope by the time its time to manufacture AMCA, we have a host of private players who can chip in and give HAL a feel of competition.

Anonymous said...

@ Anon 9:58 AM

Sir I don't know who you are and what your expertise is.

But my humble opinion, it's plain logic, we have to give Indian companies a level playing field, DPSU or not and DPSU's have had their chance and while I would say there is some good work, not all of it is competitive or qualitative, Please review the opinion of the end user and how they are effected, again time issues, all these amount to tax payers money and what they usually do is again license manufacture, alternative and competitive options need to be bought in so DPSU's are accountable and deliver as per the customer needs not at the choice of the DPSU's, For going private needs intent and why do think Indian private companies are a bad choice, they need a chance an opportunities to absorb technologies, DPSU's right now have a full book and don't know how to make space for the new projects, let them do their part and give chance to the private players.
Now for the specifics, C295 is a replacement for the Avro not the RTA or MTA, so it's a different class and is a requirement. So don't confuse these, M777 is a light weight gun for the mountains, not the one that OFB has finally woken up to and made a clone of based on the drawing and design already available and more over they are given an advantage over the private players. No point Private Indian companies being kept out for specific requirements, So when a need has been planned 5 years back for a new block of defense forces, you have to plan and make a decision if they are to be effective at the time they are sent to the front, not that you scamper for new weapons when the war comes and ask them to be experts at the time.
Request to have some rational understanding and do some research, being a watchdog is good, passing a blatant comment is not, when the govt does a good job support it, be watchful on how this forward move can be effectively implemented and see how it's better than dragging the decision for years, which also takes away tax payers money because today that equipment will cost more because of a delay in decision and also in what is needed.
Hope to see more constructive comments.

Thank you sir

Anonymous said...

I think that the choice of Ka 226 is risked.
It is a new helicopter only some dozen in service.
It is a mixture of Russian, Ukrainian and French technology (engines).
Kamov has never produced in India.

Unknown said...

Oh Sentinal... Would you stop already!
Your lack of understanding industrial capacity, organizational philosophy and outlook is not Mr Modi's problem.
PSUs have wasted more taxpayers' money than all private corporations combined! Keep reading that over and over before your blabbering

Anonymous said...

Firstly the MTA is years from reality since the final specifications have not been freezed due to IAF's concern over engine choice. Moreover the idea is to develop private domestic capabilities in the aerospace sector.

On the M777 decision, I believe the offset would be managed by getting spares and munitions from a private partner. So in my humble opinion this is a better option anyday compared to the earlier deal (which was eventually scrapped for lack of decision) of getting M777 from BAE facility.

Waiting to hear if you still feel it was a bad decision and why

Anonymous said...

Twin engine Scorpion aircraft from textron can give the added filip to tejas markII. RM should consider it under DTTI scheme. No need for Rafales.

Anonymous said...

True, and also it does not have an armed version.
Is this procurement going to eliminate the competition for light helos that was reported after aero India? Doesn't make sense

Anonymous said...

Why is there a total silence when it comes to fighter planes. Is it because we have no pilots left ? Or the Chinese/Pakis/Uncle Sam/ PSU /b'cats/press have their tentacles so deep that the Govt cannot move an inch without charges of misdemeaner echoing in the media ? This needs investigation by Mr. Modi himself .