Indian Defense Industry General News and Updates

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On track! UP-defence corridor to generate 2.5 lakh jobs, land acquisition begins

By: Deepa Jainani | Published: March 9, 2020 3:32:19 PM

The Uttar Pradesh govt has begun acquiring land for the corridor, which is expected to attract investments of Rs 20,000 cr and generate 2.5 lakh jobs

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The government would soon create a land bank of 25,000 acres to facilitate setting up of industries on the corridor, the CM said. (File photo)

With the Uttar Pradesh government starting to acquire land at four nodes, the much-touted UP-Defence Corridor (UPDC) project has got off the ground. Announced by Prime Minister Narendra Modi at the UP Investors Summit in February 2018, the infrastructure corridor is estimated to attract investments of Rs 20,000 crore in the arid Bundelkhand region and create employment for 2.5 lakh people. According to Awanish Kumar Awasthi, Additional Chief Secretary & CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), the nodal agency for the defence corridor, land for the flagship project is being acquired in two phases. “Almost 3,788 hectares of land is to be acquired across 4 nodes as part of Phase I, out of which over 1,455 hectares has been identified in Jhansi, Kanpur, Chitrakoot and Aligarh. Of this, around 1,200 hectares has already been acquired, mainly in Jhansi, Aligarh and Chitrakoot,” he says.

While Lucknow, Jhansi, Chitrakoot, Aligarh, Kanpur and Agra were proposed as the six nodes of the defence corridor project, the interest it has evoked saw the UP government notify another three nodes for investment: Meerut, Ghaziabad and Gautam Buddha Nagar. The project is being implemented in Bundelkhand given the availability of cheap land and the existence of a strong ancillary base in the region. It is one of the two defence corridors being built to meet the modernisation needs of the Indian armed forces, with the second one coming up in Tamil Nadu.

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“It would promote indigenisation and support the Make in India initiative, helping meet equipment requirements worth over $250 billion by 2025. It would also promote ancillarisation and development of MSMEs for the Aerospace & Defence (A&D) sector, making UP a preferred destination for the purpose and boosting India’s defence exports,” says a UPEIDA official.

At the recently concluded DefExpo 2020 in Lucknow, 23 companies signed MoUs worth Rs 50,000 crore with the state government for investment in the defence corridor. At the event, Ancor Research Labs became the first investor in the corridor, being allotted 25 acres of land in the Aligarh node to create high-end defence testing facilities and manufacture defence grade communication systems.

Speaking after presenting the state’s budget for 2020-21 more recently, Chief Minister Yogi Adityanath said the project would serve as a springboard for the state turning into a $1-trillion economy by 2024, as the government had proposed. The government would soon create a land bank of 25,000 acres to facilitate setting up of industries on the corridor, the CM said. “UP’s aim is to become a net exporter; even if half of the MoUs that were signed at the DefExpo are realised, we will be able to generate employment for 2.5 lakh people,” he said.

Among the investment avenues on the corridor are defence parks at Jhansi, Agra, and Kanpur; aerospace parks at Lucknow, Kanpur, and Agra; leather and textile hubs at Agra; and engineering/electronics manufacturing hubs at Agra, Kanpur, Gautam Buddha Nagar and Ghaziabad. To attract investors, the UP government has offered major incentives in its Defence & Aerospace Policy 2018, including reimbursement of 25% of land cost, transportation subsidy, and reimbursement of 75% of the cost of technology transfer to anchor units. It has roped in IIT-BHU and IIT-Kanpur as knowledge partners to conduct research and help train manpower for industrial units in the defence sector.

On track! UP-defence corridor to generate 2.5 lakh jobs, land acquisition begins
 
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HSL's order book :

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They delivered the VC11184 on schedule and the INS Sindhuvir after a refitting was delivered ahead of schedule. Very uncommon sight from a PSU warship builder.
 
Indian vendors' share in defence contracts grows over 35%: Govt

16 March 2020, 10:09 PM
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New Delhi: The share of Indian companies in contracts awarded by the Union Defence Ministry for procurement of defence equipments increased from 39.06 per cent in 2015-16 to 75.03 per cent in 2019-20, the government said on Monday. In a written reply to a question in Rajya Sabha, Union Defence Minister Rajnath Singh said, "Indigenously manufactured equipments are procured to the maximum extent possible, keeping in view the requirement of operational preparedness."

"The percentage of contracts (awarded) to Indian vendors has increased from 39.06 per cent in 2015-16 to 75.03 per cent in 2019-20," he added.

In a written reply to another question in the Upper House of Parliament, Singh said in the last five years from 2015-16 to 2019-20 (upto January, 2020), 158 contracts were signed with Indian vendors against 100 with foreign vendors for capital procurement of defence equipment for the armed forces. "The defence equipment procured from Indian vendors over the last five years includes helicopters, radars, electronic fuses, bridges, ballistic helmets, bulletproof jackets, rocket launchers and vehicles," Singh said.

Indian vendors' share in defence contracts grows over 35%: Govt
 
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Indian vendors' share in defence contracts grows over 35%: Govt

16 March 2020, 10:09 PM
View attachment 14815

New Delhi: The share of Indian companies in contracts awarded by the Union Defence Ministry for procurement of defence equipments increased from 39.06 per cent in 2015-16 to 75.03 per cent in 2019-20, the government said on Monday. In a written reply to a question in Rajya Sabha, Union Defence Minister Rajnath Singh said, "Indigenously manufactured equipments are procured to the maximum extent possible, keeping in view the requirement of operational preparedness."

"The percentage of contracts (awarded) to Indian vendors has increased from 39.06 per cent in 2015-16 to 75.03 per cent in 2019-20," he added.

In a written reply to another question in the Upper House of Parliament, Singh said in the last five years from 2015-16 to 2019-20 (upto January, 2020), 158 contracts were signed with Indian vendors against 100 with foreign vendors for capital procurement of defence equipment for the armed forces. "The defence equipment procured from Indian vendors over the last five years includes helicopters, radars, electronic fuses, bridges, ballistic helmets, bulletproof jackets, rocket launchers and vehicles," Singh said.

Indian vendors' share in defence contracts grows over 35%: Govt

Excellent. So only 25% of India's defence needs are imported now. Looks like the target Parrikar had set has long been achieved.
 
Excellent. So only 25% of India's defence needs are imported now. Looks like the target Parrikar had set has long been achieved.
It is encouraging indeed. But lets see if we can maintain this for a few years. This along with a steadily rising defence export revenue should make Indian defence industry more economically viable in the long run.
 
It is encouraging indeed. But lets see if we can maintain this for a few years. This along with a steadily rising defence export revenue should make Indian defence industry more economically viable in the long run.

That's just one half of the story, the other half is exports, baby!!!

With further indigenisation, we can become an export powerhouse in defence. This is at least one area where we can be economically competitive in manufacturing.
 
Defence Procurement Procedure 2020 unveiled

Defence Minister Rajnath Singh unveils draft of Defence Procurement Procedure 2020 - OdishaDiary

Defence Procurement Procedure | Department Of Defence

The major changes proposed in the new DPP are:

Indigenous Content ratio hiked

In view of the experience gained by the domestic industry, the Draft proposes increasing the Indigenous Content (IC) stipulated in various categories of procurement by about 10% to support the ‘Make in India’ initiative. A simple and realistic methodology has been incorporated for verification of indigenous content for the first time.

Use of raw materials, special alloys and software incentivised as use of indigenous raw material is a very important aspect of ‘Make in India’ and Indian Companies are world leaders in software.

Assurance of procurement on a single vendor basis from Aero Engine manufacturing unit and chips from FAB manufacturing units established in the country.

New Category Buy (Global – Manufacture in India) has been introduced with minimum 50% indigenous content on cost basis of total contract value. Only the minimum necessary will be bought from abroad while the balance quantities will be manufactured in India. This would be in preference to the ‘Buy Global’ category as manufacturing will happen in India and jobs will be created in the country.

Leasing introduced as a new category

Leasing has been introduced as a new category for acquisition in addition to existing ‘Buy’ & ‘Make’ categories to substitute huge initial capital outlays with periodical rental payments. Leasing is permitted under two categories i.e, Lease (Indian) where Lessor is an Indian entity and is the owner of the assets and Lease (Global) where Lessor is a Global entity. This will be useful for military equipment not used in actual warfare like transport fleets, trainers, simulators, etc.

A new Chapter is introduced for procurement of software and systems related projects as in such projects, obsolescence is very fast due to rapid changes in technology and flexibility in the procurement process is required to keep up with the technology.

A new Chapter is introduced for Post Contract Management to facilitate and provide clear guidelines for issues arising during the contract period as typically Defence contracts last for a long period.

Timelines for procurement reduced by reducing the process for accord of Acceptance of Necessity which would be single stage of projects less than Rs.500 crore and in case of repeat orders. Trial methodology and Quality Assurance Plan to be part of RFP.

Field Evaluation Trials to be conducted by specialised trial wings and the objective of trials will be to nurture competition rather than elimination for minor deficiencies.

A comprehensive Chapter introduced for ‘Make’ to cover procurement from manufacturers in India including start-ups and innovators and from research projects of DRDO.

Product support

The scope and options for Product Support have been widened to include contemporary concepts in vogue, namely Performance Based Logistics (PBL), Life Cycle Support Contract (LCSC), Comprehensive Maintenance Contract (CMC), etc to optimise life cycle support for equipment. The capital acquisition contract would normally also include support for five years beyond the warranty period.
 
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India has developed new Remotely Weapon Station armed with NSVT 12.7mm machine gun

31 March 2020; 17:50

India’s Ordnance Factory Board (OFB) has developed a new remotely operated weapon station (ROWS) armed with the Russian-designed NSVT 12.7 mm heavy machine gun (HMG), according to the OFB’s portfolio

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Bharat Electronics Ltd (BEL) has unveiled a Remote Controlled Weapon Station (RCWS) armed with a 12.7mm machine at Aero India in 2017. (Picture source www.chindits.org)

The new ROWS, which is simply designated RCWS (Remote Control Weapon Station), broke its cover at the DefExpo 2020 defense show held in Lucknow (Uttar Pradesh, India) in early February. The unmanned combat station was specifically designed to carry a combat-ready NSVT HMG, which is mounted on a two-axis stabilizer. “The RCWS can be used to engage both ground and aerial targets, with keeping its operator safe from threats,” says the OFB. Originally, the station was intended for the upgraded Arjun Mk. IA main battle tank (MBT). The module has also been configured for the Arjun armored recovery vehicle and the C-431 patrol ship of the Indian Coast Guard; however, it can be installed on a wide range of ground and surface carriers. The RCWS works in both day and night modes and is equipped with a laser rangefinder. “An automatic target tracker and a remote arming device can be additionally mounted,” says the portfolio

The OFB has developed the RCWS in conjunction with Indian company Bharat Electronics Limited (BEL).

According to the OFB, the organic armament suite of the new unmanned station can be reinforced with an anti-tank missile, machine gun, or automatic grenade launcher. “The module can be employed during low-intensity conflicts,” says the portfolio, adding that the RCWS had already passed through firing tests at sea.

The RCWS seems to have been developed under the ‘Make in India’ program — almost all manufacturers of modern armored vehicles offer their products with unmanned combat stations and India does not appear to be an exception. However, further fielding of the RCWS is not defined. The Indian Army now operates combat vehicles with traditional manned turrets; the Arjun Mk. IA is probably the first Indian vehicle to get a ROWS, but the deliveries of the MBT to the units will start in the early 2020s.

India is also reported to have imported marinized unmanned combat stations from Israel: since 2016, the Asian country has been negotiating the acquisition of 747 Elbit Systems’ RCWSs armed with 12.7 mm HMGs (probably M2HBs, but Elbit also offers its combat stations with the NSVT machinegun). India was planning to directly import 136 ROWSs and produce the remaining 611 modules in-house.

The RCWS is the first Indian attempt to enter the global market for remotely control weapon systems. At the DefExpo 2020 show, the OFB did not provide any detailed information about the new combat station; however, it is believed to carry a traditional sensor suite with a daylight TV camera, thermal imager, and laser rangefinder. Despite the fact that neither OFB nor BEL is a strong ROWS market player, the RCWS might find its customers. The station seems to have a well-balanced cost-effectiveness ratio and probably offers almost all modern capabilities at a decent price.

https://armyrecognition.com/march_2...ation_armed_with_nsvt_12.7mm_machine_gun.html