L’édition 2015 du salon Aero India s’est terminée dimanche 22 février sans annonce de contrat important malgré de nombreuses attentes et rumeurs. Plus de six cents entreprises, indiennes et internationales, étaient présentes à cette 10ème édition du salon aéronautique indien. S’il n’y a pas eu d’annonce notable, le sujet principal des discussions a été la nouvelle stratégie dite du « Make In India » sur laquelle le Premier ministre indien a centré son discours d’inauguration.

L’objectif principal de cette stratégie est de réduire la dépendance de l’Inde vis-à-vis de ses fournisseurs étrangers d’armement tout en développant les industriels indiens. L’industrie de défense indienne se divise en deux catégories principales : d’une part les entreprises publiques, Public Sector Undertakings, et d’autre part les entreprises privées. Le budget de la défense étant en constante augmentation (1), l’enjeu pour ces entreprises est de développer leurs positions sur ce marché en croissance.

Le développement actuel de ces industriels se fait soit directement par l’obtention de contrats publics, soit « indirectement » par le biais des offsets (2) et des transferts de technologies à l’occasion de contrats emportés par des entreprises internationales. Les industriels indiens veulent également que les procédures actuelles soient simplifiées, en particulier la question des offsets et de la fiscalité, avec un plan détaillé au-delà de la stratégie annoncée par le Premier ministre (3).

La réduction de cette dépendance - l’Inde est le premier importateur mondial d’armement - est aussi un enjeu diplomatique pour le pays. En effet, l’attractivité de son marché d’équipement et la possibilité de créer des partenariats locaux lui permettent de développer ses relations stratégiques et économiques à l’international, avec des pays comme les Etats-Unis, la Russie, la France ou Israël et vers sa zone d’influence, comme l’Australie, Singapour, le Sri Lanka, la Thaïlande ou même Oman et Bahreïn.

La base industrielle et technologique de défense (BITD) publique

Sous l’égide du ministère de la Défense indien, on peut identifier d’une part les entreprises publiques, Public Sector Undertakings (PSU), au nombre de huit (4), et d’autre part les usines d’armement, Ordnance Factories Board (OFB), au nombre de quarante deux, employant en tout 164 000 personnes. Celles-ci sont dirigées par un conseil avec à sa tête un directeur général en charge des cinq « divisions » (5) : munitions et explosifs ; armes, véhicules et équipements ; matériels et composants ; véhicules blindés ; et un groupement des usines.

Les OFB et PSU sont chapeautées par le Department of Defence Production (DDP) dirigé par un Secrétaire à la production. Le DDP est chargé de coordonner les programmes, et de fabriquer les équipements, nécessaires à l’autonomie de l’Inde en matière d’armement. On peut ajouter à cette organisation la Defence Research and Development Organization (DRDO) qui est elle en charge de la recherche et développement sous l’autorité d’un secrétaire dirigeant : le Department of Defence Research and Development.

Bharat Dynamics Limited (BDL) a été créée en 1970 pour la fabrication de missiles, soit localement, avec la DRDO (6), soit en coopération avec la Russie pour les missiles Konkurs M et Invar (7). Bharat Electronics Limited (BEL), créée en 1956, est spécialisée dans les systèmes électroniques, en particulier de communication et radars, pour les différentes composantes des armées (8). Enfin, Bharat Earth Movers Limited (BEML), créée en 1964, fabrique des engins de chantiers, des camions et des trains pour le marché militaire et civil.

Dans le domaine naval, les trois chantiers Garden Reach Shipbuilders & Engineers, Goa Shipyard et Mazagon Dock, assurent la construction des bâtiments de surface (dont le programme de porte avions), des sous marins (diesel et nucléaire) et des bâtiments de soutien ou de surveillance côtière. Hindustan Aeronautics Limited (HAL), partenaire de Dassault pour le Medium Multi-Role Combat Aircraft (MMRCA) est en charge des recherches, et de la construction, pour les programmes d’avions, d’hélicoptères, de moteurs et d’avionique.

La BITD privée

La principale caractéristique de la BITD privée indienne réside dans le fait que ses principaux acteurs sont des groupes aux activités multiples qui ne sont parfois entrés dans le secteur de la défense que récemment. C’est le cas par exemple du Hero Group qui veut investir dans un chantier naval ou le Reliance Group d’Anil Ambani qui a annoncé son intérêt pour la défense en février 2015. A l’inverse, des groupes comme Tata ou Mahindra sont des acteurs anciens du secteur.

Le Tata Group est actif dans le secteur de la défense depuis l’indépendance de l’Inde, pour la fabrication de véhicules, de composants de missiles, et plus récemment a investit dans l’électronique de défense avec Honeywell ou l’aviation militaire avec Airbus (9). Le Mahindra Group, quant à lui, a commencé par la construction de jeeps militaires pendant la Seconde Guerre mondiale, puis de camions, blindés et désormais des torpilles ou des radars. Le Hero Group, leader mondial des deux roues, cherche à investir dans la défense.

Reliance Industries, groupe dirigé par Mukesh Ambani (première fortune indienne), présent dans le pétrole, les télécoms ou la santé, est partenaire de Boeing pour la construction des avions de reconnaissance P8I indiens, et de Dassault pour fournir des composants du programme MMRCA. Bharat Forge, principale société du Kalyani Group, est partenaire de l’israélien Rafael pour fournir des missiles antitanks à l’armée indienne, et a fabriqué des munitions d’artillerie.

Il s’agissait des munitions des canons Bofors dont le Hinduja Group fut l’acteur principal : celui-ci contrôle fabriquant de camions et bus Ashok Leyland, partenaire de Nexter pour le châssis du canon Caesar. L’autre partenaire de Nexter est Larsen & Toubro, qui intervient aussi bien dans le domaine naval que terrestre ou aéronautique, que ce soit pour des systèmes complets, des pièces et composants ou la construction de matériels lourds. On le voit, les activités de défense ne sont qu’une partie des activités de ces groupes privés.

 

Offsets et transferts de technologie

A l’échelle d’un contrat comme le MMRCA (10), l’enjeu est d’avoir une BITD suffisamment importante pour atteindre le montant prévu des offsets et surtout pouvoir faire fabriquer sur place les pièces et systèmes nécessaires. Et il ne s’agit pas seulement de faire faire ponctuellement mais de transférer durablement les technologies et savoirs faire afin de rendre les industriels indiens autonomes. Au-delà du « Make In India », l’objectif déclaré est désormais le « Export India » (11).

Si l’attractivité du marché indien, les offsets et le « Make In India », rendent l’acquisition de technologies et savoirs faire facile pour les industriels indiens, l’enjeu secondaire est l’emploi : créer des emplois pour la population mais surtout fournir aux industriels des travailleurs qualifiés. D’après le ministre indien du « skill development and entrepreneurship », Rajiv Pratap Rudy, l’industrie aéronautique aura besoin d’un million de travailleurs d’ici dix ans pour la construction, la maintenance, l’exploitation et la recherche (12).

L’ouverture du marché indien de la défense passe par la création de joint-ventures (JV) entre industriels indiens et internationaux. Ceux-ci peuvent désormais avoir, grâce à une réforme récente, 49% de la structure commune. Il y a désormais trente-trois « investissements directs étrangers » aussi bien dans la BITD publique que privée. La création de telles structures doit être approuvée par un comité gouvernemental, le Foreign Investment Promotion Board. Donc bien que de plus en plus ouvert, ce marché sensible reste régulé.

Et de ce point de vue, les industriels indiens, privés et publics, ou même étrangers, réclament une clarification des procédures que ce soit pour les contrats, les offsets ou les JVs. Ainsi lors d’une session organisée, en parallèle d’Aero India, par la Confederation of India Industry, le ministre de la Défense, Manohar Parrikar, a interagi directement avec les trois cents industriels venus avec des questions sur ces sujets (13). Les offsets étant la clef du développement des partenariats et des industriels, le ministre a promis d’agir pour faciliter leurs mises en œuvre.

Au-delà des grands groupes cherchant à capter une part croissante du budget de la Défense, il existe de nombreuses PME spécialisées. Celles-ci obtiennent des contrats de sous-traitance de la part des groupes indiens ou internationaux. A l’occasion d’importants contrats publics, pour lesquels les offsets sont applicables, ces PMEs offrent leurs capacités de production aux industriels étrangers. Cette partie privée de la BITD indienne, et son pendant public, reste à développer.

 

 

(1) Déjà 9ème budget mondial, l’Inde pourrait pousser son effort de défense jusqu’à 130 milliards de dollars sur les 8 années à venir : "Make in India: With defence budget set to touch $130 billion in eight years, experts urge HAL to revitalise itself", The Economic Times, 23/02/15, http://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/make-in-india-with-defence-budget-set-to-touch-130-billion-in-eight-years-experts-urge-hal-to-revitalise-itself/articleshow/46340016.cms
(2) Les Offsets, ou compensations industrielles et économiques ou commerciales, "sont des contrats non standards exigeant qu’une forme d’activité économique soit transférée du vendeur au gouvernement de l’acheteur comme condition pour la vente de biens et/ou services sur les Marchés Publics." (LES PRATIQUES D'OFFSET ET LES GRANDS GROUPES FRANCAIS - http://bdc.aege.fr/public/Les_pratiques_d_offset_et_les_grands_groupes_francais.pdf)
(3) "PM Modi sets challenging target for India's defence manufacturing sector", DNA India, 18/02/15, http://www.dnaindia.com/india/report-pm-modi-sets-challenging-target-for-india-s-defence-manufacturing-sector-2062045
(4) Certaines ont des filiales spécialisées et il existe la Mishra Dhatu Nigam Limited, spécialisée dans les alliages pour l’aéronautique, l’armement, le nucléaire et la marine.
(5) Il existe également des écoles de l’OFB, ainsi qu’un corps administratif spécifique et des services de soutien dédiés.
(6) Missiles AKASH, NAG, Article K-15, AGNI VARIANTS (A1, A2 and A3)
(7) Le missile Brahmos est une coopération directe entre la DRDO et NOP Mashinostroyenia en Russie.
(8) "L'Inde, puissance militaire?", Pierre Memheld, Revue de la Défense Nationale, Novembre 2014
(9) "Tata, Airbus to jointly bid for making transport planes for IAF", Business Standard, 29/10/14, http://www.business-standard.com/article/economy-policy/tata-airbus-to-jointly-bid-for-making-transport-planes-for-iaf-114102801555_1.html
(10) Medium Multi-Role Combat Aircraft
(11) "Defence Exports Could Touch $17 Billion by FY22: Report", The Indian Express, 25/02/15, http://www.newindianexpress.com/business/news/Defence-Exports-Could-Touch-17-Billion-by-FY22-Report/2015/02/25/article2686225.ece
(12) "Indian aerospace sector needs one million skilled workforce in next 10 years", Live Mint, 20/02/15, http://www.livemint.com/Politics/hRJQjq7ZKVXQ5RFkzWbmAJ/Indian-aerospace-sector-needs-one-million-skilled-workforce.html
(13) "Offsets Exasperation Peaks, Defence Minister Listens", LiveFist, 21/02/15, http://www.livefistdefence.com/2015/02/offsets-exasperation-peaks-defence.html

March 2, 2015 by Shiv Aroor - Livefist
 

India's third attempt at procuring 197 light reconnaissance/surveillance helicopters (RSH) for the Indian Army and IAF kicks off this month, and if two attempts across the last decade haven't thrown up enough dust, indications are that this third effort is all set to be even more interesting.

The two finalists in the last abortive attempt, Airbus Helicopters with the AS550 C3 Fennec and Kamov with the Ka-226T2 Sergei will both compete through respective build partners in India (the latter has a seemingly separate proposal to build the Sergei and Mi-17 V-5s in India.)

U.S. firm Bell Helicopter, which competed in the original effort (that began in 2003) has signalled that it will be re-entering the competition this year through local partners. Livefist learns that Bell Helicopter and an Indian partner will field the Bell 407GT in the new RSH contest.
 

B.S. Singhdeo, Managing Director, Bell India tells Livefist, "We are not prepared to discuss the details of the RSH; however Bell Helicopter is committed to the India and we are highly interested in the program.  Bell Helicopter has the right products to meet the future needs of India’s military."

The 407GT is a militarised version of Bell's 407GX, featuring the Garmin G1000H™ flight deck. Your correspondent was invited to fly in a 407GX at Aero India last month in Bengaluru in which a senior IAF pilot was at the controls for a 20-minute demo flight.

Bell reportedly withdrew from the original competition in 2006 after it was informed that the 407 hadn't satisfactorily demonstrated the three-axis vector maneouver during field evaluation trials. The competition went into the ground a year later when a complaint by Bell on the trials compelled the government to scrap a potential decision to award the contest to Eurocopter. The fresh contest sees another possible face-off between Bell and Airbus.

"In November 2014, Bell Helicopter established Dynamatic Technologies Ltd. as a single source supplier of major airframe cabin assemblies for the Bell 407GX and 407GT.  During Aero India, Dynamatic handed over first articles of these aerostructures.  Bell Helicopter continues to evaluate potential partners in India to support our local manufacturing footprint," says Singhdeo.

And AgustaWestland? The government's 2014 guidelines on 'dealing with Finmeccanica group of companies in all procurement cases', issued following the VVIP AW101 helicopter controversy, suggest that the light helicopter competition is open to AgustaWestland. It is not clear at this time if AgustaWestland has or will respond (through a partner, of course) to the new 'Make in India' RFI with its AW119 Koala, the platform it fielded in the second abortive procurement attempt.

The MoD has extended its deadline for interest from vendors three times since November last year, actions that speak loud about a desire perhaps for maximum participation. The truth is, two successive aborts have brought with them a measure of damage to confidence in India's ability to see crucial acquisition programmes through. The MoD sees the the light helicopter competition as a fairly uncompl

In a separate but related development, Airbus Helicopter has informed Hindustan Aeronautics Ltd (which license builds Alouette-II/IIIs in India) that its inventory of rotor blade kits for the Cheetah and Chetak have been exhausted, and that a previous order will necessarily be the last one.

As Livefist reported recently, the other side the light copter modernisation effort is seeing forward movement too, with HAL's LUH scheduled for a first flight soon.

February 25, 2015 by Shiv Aroor - Livefist

The Indian government is understood to have made it clear that it is no longer a question of whether Dassault Aviation will underwrite the 108 Rafales that HAL proposes to license-build in Bengaluru (a top MoD official indicated to Livefist that the RFP was explicit about this), but a question of how it will do so. Yesterday's hour-long deliberations at the MoD involved discussions on possible options. In very limited conversations with all sides, the following threads become apparent:

• Dassault and HAL will need to hammer down licensee/licensor modalities that will pave the way for a possibly complex matrix of agreements on the central issue of liability. It's clear now. It is this set of agreements that will provide a solution to the guarantee issue. The question is how long it would take to do this.
• Second, the extent of inspection and post-manufacture testing of equipment at HAL that would be the minimum required for Dassault to underwrite HAL-built jets.
• Whether there are any financial implications to additional understandings between HAL and Dassault for the process of underwriting jets produced on the former's production line in Bengaluru. Also, financial implications of the transfer of liability as a result of any additional agreements between HAL and Dassault.
• Both sides appear committed to finding a solution before Prime Minister Modi's visit to Paris in April, but is that a realistic time-frame? Sources suggest HAL and Dassault have already held extensive discussions on the liability issue and should be in a position to move quickly.

February 26, 2015 Saurabh Joshi – Stratpost.com

The new order for the Indian Navy's four HDW Type-209 submarines is expected to cost an estimated USD 200 million and the planned purchase is currently waiting on the US government's Letter of Acceptance (LoA).

The Indian government has sent a Letter of Request (LoR) to the US government for the purchase of 22 Harpoon missiles for the Indian Navy’s Shishumar-class of submarines.

India has already ordered 26 Harpoon missiles for the eight Indian Navy P-8I Long Range Maritime Reconnaissance (LRMR) aircraft for an estimated USD 200 million and 24 Harpoon missiles for the Indian Air Force (IAF) Jaguar aircraft in an order worth USD 170 million.

Dennis Swanson, the head of India operations for Boeing Defense Space and Security, the prime contractor for Harpoon missiles, told StratPost, “We see significant potential for the Harpoon’s capabilities to be applied on other platforms by the Indian armed forces.”

While India’s Hindustan Aeronautics Limited (HAL) is to integrate the missiles on to the Jaguar, Boeing will integrate them on to the P-8I aircraft, itself.

The new order for the Indian Navy’s four Shishumar-class (HDW Type-209) submarines is expected to cost an estimated USD 200 million and the planned purchase is currently waiting on the US government’s Letter of Acceptance (LoA).

The order will include ’12 UGM-84L Harpoon Block II Encapsulated Missiles, 10 UTM-84L Harpoon Encapsulated Training missiles, 2 Encapsulated Harpoon certification training vehicles, containers, spare and repair parts, support and test equipment, personnel training and training equipment, publications and technical data, US Government and contractor engineering and logistics support services, and other related elements of logistics support’, according to notification issued by the US Defense Security Cooperation Agency (DSCA) to the US Congress.

February 19, 2015 by Shiv Aroor - Livefist

HAL's Light Utility Helicopter (LUH), under development to meet a requirement of at least 187 light reconnaissance and utility rotorcraft for the Indian Air Force and Indian Army is all set for its first flight in August. An internal target of July has been set for the sole current prototype at HAL's Helicopter Division to lift off in July, though sources confirm that August is likely to be when it will happen. The LUH prototype (two more will be built for the flight test programme) has been in a routine of ground testing for weeks now. The LUH mock-up on display at Aero India this year is in Indian Army colours, and has been a source of interest for quite a few foreign delegations at the show this year. Quick news points:

• The first LUH prototype will fly in August, officially kickstarting flight test.

• HAL aims for final operational clearance in 2017, and begin deliveries to the Indian Army and IAF by the end of that year. 

• The LUH sports a new jointed foldable rotor system (see photo), designed and built in-house

• to meet the Indian Navy's deck requirements. Significantly, the rotor will be made available on future Dhruv ALH constructions and re-offered to the Indian Navy.

• For a proposed naval version, HAL says it will offer a wheeled version of the LUH.

• The LUH cockpit is almost entirely an Indian glass cockpit, with components and systems sources completely from the Indian private sector, and mission computer software modified from the Dhruv's.

February 20, 2015 by Shiv Aroor - Livefist

It's a programme the Indian Navy wants quick movement on, exasperated in many ways by how no single effort over years to give its ships a tactical deck-launched/recovered unmanned surveillance capability have delivered a result. The navy now has a stated requirement of at least 50 such UAS. And the field is open -- the navy doesn't say what kind of launch of recovery it is looking for, leaving all such details to interested contenders.

Boeing firm Insitu, which has had preliminary conversations about the ScanEagle with India for a few years now, continues with the pitch. Insitu's business development manager for Asia-Pacific, Kevil Giles made the following presentation at a round-table that Livefist was invited to, information presumably shared with the Indian Navy over the months as well (post continues after the PDF):

Boeing Insitu Overview Aero India 2015

A prospective competition could include the Airbus Tanan and Textron Aerosonde as well. The Indian Navy tested the Schiebel S-100 Camcopter from the deck of patrol vessel INS Sujata in 2007, though the effort didn't yield an acquisition.

According to the Indian Navy's request for information from global vendors, it needs the new UAVs for "Intelligence, Surveillance and Reconnaissance (ISR), sea-lanes of communication monitoring and coastal/ EEZ surveillance, anti-¬piracy and anti¬terrorism, assistance in search and rescue and assistance in maritime domain awareness."

February 21, 2015 by Shiv Aroor - Livefist

European missile house MBDA is making a strong effort at the highest levels to give the comatose long-proposed joint Indo-French SR-SAM development programme new life. Top MBDA executives sought time with Defence Minister Manohar Parrikar, meeting him twice in the last one month, to brief him about the SR-SAM (proposed to be called 'Maitri'). Sources say Parrikar heard out the MBDA executives but made no commitment, only saying that the representation would be looked into.

To be sure, it's a tricky situation for MBDA. The SR-SAM programme was all but sunk last year when the Indian Air Force said the Indian Akash SAM it deployed was sufficient for the short range air defence role, and that it didn't feel the need for a separate SR-SAM. The Akash SAM being a DRDO success means the latter is now perceived to have little or no incentive to partner with MBDA on the SR-SAM, but simply to continue working on the Akash and extend its range and capabilities for an anticipated Mk.2 version that the IAF and Indian Army are reportedly keen on.

"The aim of this programme, one of several initiatives within the Indo-French strategic dialogue, was to contribute to the development of the Indian defence industry. This would enable India to set up automated production lines for seeker, sub-assembly and full missile production. Despite SR-SAM ticking all the boxes regarding ToT, timescale, capability and equally economics, a decision is still to be made," MBDA officials told me.

Other developments:

• The Indian Army's $6 billion VSHORADS programme for 1,000 launchers and 6,000 missiles has just completed a final round of tests in Bengaluru and Dehradun for sighting systems and radar. MBDA's Mistral competes with the Saab RBS 70NG and KBM Igla-S. With field evaluations complete, the three companies have been notified of a meeting with the test team early next month at which point they will be informed about their performance.

• MBDA has received an RfP from HAL to supply munitions for the Mistral ATAM system already integrated on the ALH Rudra helicopters being supplied to the Indian Army.
• The company has also received an RfP on the integration of the Mistral ATAM system on the Light Combat Helicopter.
• While there's been no word on the PARS 3 LR that's been field evaluated as an air-to-ground weapon for the Rudra against other systems, MBDA has opened preliminary discussions with the Army and DRDO on its new Missile de Moyenne Portée (or Medium Range Missile), successor to the Milan weapon system. The MMP was test-fired for the first time earlier this month.

Les négociations restent délicates entre le groupe français Dassault et le gouvernement indien (photo Dassault Aviation)

25 février 2015 45eNord.ca (AFP)

Le ministre français de la Défense, Jean-Yves Le Drian, a rencontré mardi à New Delhi son homologue indien pour tenter de relancer les négociations sur le méga-contrat de vente de 126 Rafale à l’Inde.

M. Le Drian a rencontré Manohar Parrikar à l’occasion d’une brève visite en Inde survenue deux mois avant le voyage du Premier ministre Narendra Modi en France.

Les deux délégations se sont rencontrées aujourd’hui pendant 45 minutes. La rencontre s’est bien passée, a déclaré le porte-parole du ministère indien de la Défense, Sitanshu Kar. Il n’a pas donné d’autres informations.

La France essaye de convaincre New Delhi de conclure des négociations entamées il y a trois ans mais qui semblent marquer le pas.

Les discussions devaient porter sur la situation internationale et des questions d’ordre industriel, avait dit avant la rencontre le ministère français de la Défense.

Le gouvernement de Narendra Modi, arrivé au pouvoir en mai, souffle le chaud et le froid sur l’avancée de ces discussions complexes portant sur l’achat de 18 appareils fabriqués en France et 108 autres en Inde sous la conduite du groupe public HAL.

Le ministre indien de la Défense, qui assurait en décembre vouloir résoudre de manière accélérée les points de blocage, a évoqué pour la première fois fin 2014 l’éventualité d’un échec en assurant que le recours aux avions de chasse russe Sukhoi était une option.

M. Parrikar a en outre repoussé la perspective d’une conclusion rapide des discussions en déclarant vouloir attendre un nouveau rapport sur les coûts du Rafale.

Ce rapport du Contract Negotiations Committee (CNC) est attendu d’ici à début mars et doit permettre de prendre une décision sur l’acquisition du Rafale. Le CNC est en train de revoir les coûts à long terme de l’avion de combat, a dit le ministre mercredi lors du salon aéronautique et de défense de Bangalore (sud).

Le quotidien économique indien Business Standard a récemment affirmé que ce comité avait conclu que le Rafale était en fait plus cher que son concurrent européen malheureux, le Typhoon de l’Eurofighter. Selon le journal le contrat est effectivement mort.

La semaine dernière, la France a signé avec l’Égypte le premier contrat d’exportation de l’avion de combat de Dassault, portant sur 24 exemplaires.

Arrivé en Inde lundi soir, le ministre français devait en repartir mardi après-midi.

February 24, 2015 idrw.org Source Asian Age

India and France are hoping for a major breakthrough on Tuesday on the proposed multi-billion dollar 126 medium multi-role combat aircraft (MMRCA) deal when visiting French defence minister Jean Yves Le Drian will hold a 90-minute crucial meeting with defence minister Manohar Parrikar.

Talks are stuck on contract-negotiation with French firm Dassault — manufacturer of the Rafale aircraft — after certain problems allegedly cropped up regarding acceptance of complete responsibility by the French firm for the 108 aircraft (out of 126) that will be manufactured in India by the lead integrator—stae-run HAL.

Sources said France could agree to firmly adhere to standard operating procedures (SOPs) regarding the manufacture of the 108 aircraft in India but French sources said it is up to HAL to stick to deadlines.

In the proposed deal, 18 aircraft will be supplied in “fly-away” condition by Dassault. Work had already begun earlier on the draft for the proposed deal amid speculation that the deal could be to the tune of about $20 billion when it is inked. Dassault was earlier selected as the “L-1” (lowest financial bidder) among the two firms selected after the completion of the technical trials.

The IAF is eagerly looking forward to clinching the deal to bolster the number of its fighter squadrons. It remains to be seen whether the French Government provides any guarantees to India to clinch the deal during the talks on Tuesday which is being seen as a make-or-break attempt to reach an agreement on the deal. If talks are successful, the proposed draft of the deal is expected to be placed before the Cabinet Committee on Security (CCS) for clearance before the deal is formally inked with Dassault. The Modi Government is going all-out to ensure that crucial defence acquisitions are not delayed.

February 17, 2015 Rediff.com (Business Standard)

Air force brass is ignoring a project to develop a fifth-generation fighter for fear it will take attention away from buying the Rafale. Ajai Shukla reports

The priceless Indo-Russian project to co-develop the eponymous Fifth Generation Fighter Aircraft is dying of neglect. With the Indian Air Force brass focused single-mindedly on procuring 126 Rafale fighters, the air marshals fear that an FGFA on the horizon would undermine their argument that the Rafale is essential. With the costly Rafale procurement imploding in slow motion, the FGFA is becoming collateral damage.

In October 2012, then IAF boss, Air Chief Marshal N A K Browne, announced the IAF would buy only 144 FGFAs instead of the 214 that were originally planned. Having cut down the numbers, the IAF is now undermining the FGFA project itself.

After the apex Indo-Russian Inter-Governmental Commission for Military Technical Cooperation met on January 22 to discuss military cooperation, IAF officers whispered to a gullible media that the FGFA was dead. It was reported that Defence Minister Manohar Parrikar had told his Russian counterpart that joint research and development was a waste of time. This was factually incorrect. What is true is that the IAF -- for reasons that can only be guessed at -- is scuttling a project to develop a fighter that would rank alongside the world's best.

Why is the FGFA important, more so than the Rafale? It is a fifth-generation fighter, which makes it operationally more capable than contemporary fourth-generation fighters like the Rafale and the Eurofighter Typhoon. Gen-5 fighters are designed to be stealthy, which means enemy radar cannot detect them until it is too late. They "supercruise", i.e. fly at supersonic speeds without lighting engine afterburners (the Rafale can do this too); and Gen-5 aircraft have futuristic avionics and missiles. In a war with China, stealthy Gen-5 aircraft would be ideal for missions deep into Tibet, evading China's radar network, to destroy the Qinghai-Tibet railway and roads leading to the Indian border -- to prevent China from quickly switching troops around on its superior border infrastructure.

So vital was the FGFA considered to India's aerospace capabilities that, in October 2007, New Delhi and Moscow signed an Inter-Governmental Agreement to co-develop the fighter, which placed the project above defence ministry procurement rules. The IGA states that Hindustan Aeronautics Ltd would partner Rosoboronexport, Russia's defence exports agency, in co-developing the fighter. Furthermore, Indian engineers say the expertise gained from the FGFA would be valuable in building the planned indigenous Gen-5 fighter, designated the Advanced Medium Combat Aircraft.

Following the IGA, New Delhi and Moscow signed a General Contract in December 2008, stipulating general principles of cooperation such as the share of work and cost, and the sale of the FGFA to third countries. In December 2010, a preliminary design contract was signed in which both sides contributed $295 million towards finalising the fighter's basic configuration, systems and equipment. With that completed in June 2013, the central R&D Contract is now being negotiated. This will govern the bulk of the work - the actual design and development of the FGFA.

Even as the IAF stonewalls the R&D contract negotiations, the need for India to come on board grows ever more pressing. Russia has already designed, built and flown the first prototypes of a Gen-5 fighter they call the PAK-FA (Perspektivny Aviatsionny Kompleks Frontovoy Aviatsii, or "Prospective Airborne Complex of Frontline Aviation"). The PAK-FA, built to Russian Air Force specifications, has already completed 650 test-flights. India's work share will lie in adapting this fighter to the IAF's requirements -- which include advanced capabilities like all-round radar that can detect threats in a 360-degree envelope, and voice recognition software that allows the pilot to call out commands. In all, the IAF has specified some 40-45 improvements that they want over the PAK-FA. Indian designers, who will have to integrate these improved capabilities with the existing PAK-FA, are losing out by not participating in the on-going design and test flying in Russia.

Gen-5 fighters are designed to be stealthy, which means enemy radar cannot detect them until it is too late.

The IAF's objections to the FGFA are (a) The Russians are reluctant to share critical design information; (b) The fighter's current AL-41F1 engines are inadequate, being mere upgrades of the Sukhoi-30MKI's AL-31 engines; and (c) It is so expensive that "a large percentage of IAF's capital budget will be locked up." It is ironical that an air force that is eager to spend an estimated $20 billion on the entirely foreign, Gen-4 Rafale is baulking at spending a fraction of that on co-developing and indigenously manufacturing a Gen-5 fighter, which can be maintained and upgraded cheaply for decades to come.

An entire mythology has come up around the cost with even senior air marshals incorrectly stating that India will spend $11 billion on the FGFA. Even this inflated figure would be modest compared to the $40 billion that America spent in the 1980s and 1990s to develop the Gen-5 F-22 Raptor. Yet, in fact, this $11 billion figure was a defence ministry estimation in 2010, which included numerous items that have nothing to do with R&D. Firstly, the amount included both Russian and Indian expenditure; second, it included several options that India may not require, e.g. $1.5 billion for developing a twin-seat FGFA (which the IAF now says it does not want), and $1.5 billion for a new engine. Third, this included the cost of infrastructure that India must establish to manufacture the aircraft in large numbers for the IAF.

Since India urgently needs to start participating in the flight-test programme, of which the PAK-FA has already completed some 20 per cent, Sukhoi would have to build another prototype for India. That cost too is included in the estimation, along with the ground support equipment and training needed for a full-fledged Indian flight-test programme. With all of this factored in, officials closely involved in the negotiations say that India's share in the project could be about $3.5 to 4 billion.

Both sides have already talked around the R&D contract in such detail that it can be concluded in one sitting, provided Indian negotiators are given the green light from a clear-minded political leadership. The FGFA perfectly fits the "Make in India" idea; the strategy of being ready for a two-front conflict; and the IAF force structure of the future. From the standpoint of negotiation strategy, the timing is perfect. The rouble has plummeted more than 60 per cent against the dollar and the rupee in the last five months after the Ukraine crisis. The Russians will agree to the lower dollar rate that New Delhi has been proposing. The time to strike is now.

Feb 11, 2015 Defence-Update

The agreement covers local production of IAI's Bird-Eye 400 and Bird-Eye 650 mini UAS as well as other mini-unmanned aerial systems

Israel Aerospace Industries (IAI) and India’s Alpha Design Technologies have signed a teaming agreement for the production and marketing of mini-Unmanned Aerial Systems (UAS) in India to accommodate the operational needs of Indian customers. Potential customers in India include security agencies and all defense organizations including police forces, coastguard and Border Security Forces (BSF).

According to Shaul Shahar, IAI VP and General Manager of the Military Aircraft Group, the agreement with Alpha follows India’s policy for ‘Buy and make India’. “The important vision of ‘Make in India’ is being made fully effective by this joint effort. Alpha will meet the huge market in India and will examine further, later exports by Alpha, through IAI to various countries”. Col. H. S. Shankar, Chairman & Managing Director, Alpha Design Technologies Private Limited, added.

The agreement covers local production of IAI’s Bird-Eye 400 and Bird-Eye 650 mini UAS as well as other mini-unmanned aerial systems. Production of the systems will take place in India, while the marketing will be a joint effort of the two companies. Alpha Alpha will also provide integration of the systems in India, with IAI’s support.

12.02.2015 by Livefist
 

The 7.43pm crash of an Indian Army HAL-built Dhruv advanced light helicopter yesterday in Kashmir happened to be the third accident of the type in less than a month, a streak that has set off alarm bells once again within HAL. Last night's accident, in which two Army pilots Lt Col Rajesh Gulati and Major Tahir Khan were killed, was preceded by two crashes of Dhruv copters from the lot exported to Ecuador -- one on Jan 13 and the other on Jan 28 (Ecuador has lost four Dhruvs of the seven it has operated since 2009). There were no casualties in the two Ecuador accidents involving the Dhruv last month.

An HAL team dispatched to Ecuador on Jan 15 is part of accident investigations at a time when the country has restricted use of the Dhruvs to operational flights, and not for training or executive transport flights. HAL sources say preliminary information suggests the causes of the two January accidents are different.

The Sarang Dhruv aerobatics team is scheduled to perform at Aero India this month.