Indian Defense Industry General News and Updates

India’s Adani expands defence profile through Alpha acquisition

Indian group Adani has expanded its defence industrial capabilities through the acquisition of Bangalore-headquartered Alpha Design Technologies Limited (ADTL), Adani said in a filing to the Bombay Stock Exchange on 13 December.

The transaction is valued at about INR4 billion (USD56 million), making it one of India's largest defence industry acquisitions in recent years. Adani said the deal features its purchase in cash of more than 13.3 million shares at a premium of INR290.37 per share.

Adani said the acquisition was channelled through its defence subsidiary - Adani Defence Systems and Technologies Limited - and that it will provide Adani with "strong tier-one capabilities" in defence.
 
Ashok Leyland in talks with global OEM to offer mobility solutions

Hinduja flagship Ashok Leyland said that it is in advanced talks with a select few defence players (OEMs) in the US and Europe to offer its mobility solutions.
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Hinduja flagship Ashok Leyland said that it is in advanced talks with a select few defence players (OEMs) in the US and Europe to offer its mobility solutions. The sompany, the largest mobility/logistic solutions provider for the Indian Army for more than three decades, sees huge opportunity not only in India but also in the overseas markets, given the wide offerings as well cost advantage it holds among peers.

“Armed with the successful agreement with Israel-based Elbit Systems for high mobility vehicles to carry artillery guns and systems, we are in talks with a select major defence players (OEMs) in the US and Europe to offer our cost-effective, wide range of mobility solutions. We hope to get a few deals to serve the global markets with our mobility solutions in the near future,” said Amandeep Singh, head, defence business, Ashok Leyland.

In an interview with the FE here, Amandeep Singh, said: “Ashok Leyland is the only player in India to have an expertise in design, develop and manufacturing of logistic vehicles, combat support HMVs and armoured vehicles for the defence forces. We are also only player to indigenously design, develop and manufacture 350 HP Neptune engine which can support any kind of mobility services. Our range of offerings gone up significantly over the years. Though we have been exporting vehicles independently to African countries and Thai Army for sometime, the company seeks to make it big on the global market and Elbit agreement is one such important development to go global in offering specialised vehicles.”

“We have improved our capabilities with the launch of 8×8, 10×10 and 12×12 Stallion range of vehicles in the recent past which can carry high-powered artillery guns, rocket launchers among other defence eqipment, he said, adding: “Given the cost advantage in making in India, Ashok Leyland can be 25% to 30% cheaper than the other mobility service providers in the world and hence many OEMs have shown interest on our offerings,” he said.

To a question, he said of the `27,000 crore annual defence budget, nearly 5% of it would be for mobility/logistic vehicles and Ashok Leyland is the market leader in this area. “We have supplied more than 75,000 vehicles to the Indian Army over the years and we have won most of the recent bids of Indian Army. In fact, we have been working with the Indian ordinance factories to provide aggregates, sub-systems, drive train, power packs among host of other solutions for for their mine protected vehicles, armoured vehicles and drag vehicles. This apart, we have been supplying indigenously developed armoured vehicles to police force in the states of J&K, Punjab, Maharashtra, Chattisgarh to combat naxalism and terrorism activities in those states,” he said further.

According to him, the company can support with its India-made aggregates, sub-systems for Indian Army’s drag vehicles, which are currently supported by Russian vendors. There are nearly 300 such drag vehicles produced by the ordinance factories annually which require huge support systems and Ashok Leyland is qualified enough to support with locally-made, cost effective products.

“There are over 4,000 such drag vehicles plying in India, which require replacement for aggregates, support systems, gear box/engines, APUs where we can throw our hat to support with our solutions. We see huge opportunity in the defence space and we are gearing up in a big way to tap this potential,” he said.
 
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CHENNAI: The Indian Institute of Technology-Madras (IIT-M) on Monday said that it was partnering with diversified French conglomerate Thales to design a Shakti Risc-V processor compatible with safety critical standards. Shakti is India's first indigenously-built chip.

In a statement issued here, the IIT-M said with this tie up, a fault-tolerant Shakti framework would be developed and will undergo evaluation by the world's top experts in safety critical standards.

//economictimes.indiatimes.com/articleshow/67126499.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 
Indian company to take care of Light Armor System Upgrade project for the Philippines

The Philippine Department of National Defense (DND) has awarded Indian company Larsen & Toubro (L&T) the acquisition project for the Armed Forces of the Philippines (AFP)’s Light Armor System Upgrade (LARSU), for a budget of $US 14 million.

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(Picture source : all rights reserved)

This upgrade is intended to be used by the Philippine Navy and the Philippine Air Force to enhance the operational readiness of line units. It has been decided to improve the Light Armor Vehicles (LAVs) of both the Marines’ and Air Force’s Components.

These already existing vehicles have proven their efficiency as armor combat support in amphibious and mechanised operations ashore. They also may be operational to take care of the urban security.

Therefore, the Philippine DND must replace deteriorating engine and spare parts of these LAVs to maintain their utility in the future, which will be the mission of the Indian company L&T.
 
India’s new defense budget falls way short for modernization plans

India’s new defense budget falls way short for modernization plans
By: Vivek Raghuvanshi   1 day ago16529
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A Rafale multi-role combat aircraft from Dassault Aviation of France takes off at Yelahanka Airforce Station in Bangalore on February 18, 2015,on the inaugural day of Aero India 2015. According to Indian defense officials, the majority of funds in the latest budget will go towards past committed liabilities for Rafale fighters, S-400 missile systems, warships and helicopters. (Manjunath Kiran/AFP/Getty Images)
NEW DELHI – India’s defense budget for 2019 included a marginal 6.87 percent bump to $49.68 billion, which is unlikely to meet modernization demands or ‘Make in India’ manufacturing increases.

Out of the total allocation, $16.91 billion has been set aside to buy new weapons and other military hardware, compared to $14.68 billion in the previous financial year. But not accounted for are the liabilities, say some defense analysts, which could chip away at available funds.

“As of now, one doesn’t know about the extent of committed liabilities to be able to say how much money will be available for new purchases,” said Amit Cowshish, former financial advisor for the Ministry of Defence acquisition. "But it can be said with reasonable certainty that the allocation must be much less than the requirement projected by the ministry. That being the case, the ministry will have to make do with whatever money they have got, just the way they have been managing in the past.”

India’s defence budget is more than five times that of Pakistan, pegged at $9.6 billion — barely enough to maintain its basic operational capability.

Presenting the interim budget for 2019-20 in parliament, Union Minister for Finance and Corporate Affairs Piyush Goyal said additional funds, if necessary, would be provided to secure India’s borders and maintain its defense preparedness.

Under capital outlay, the Army was granted $4.60 billion and the Navy granted $3.61 billion — both nearly flat compared to the year before. The Indian Air Force was allocated $6.14 billion, combared to $5.58 billion in the previous year.

One MoD official said the majority of funds will go towards past committed liabilities for Rafale fighters, S-400 missile systems, warships and helicopters. Still, the fact that the budget saw an increase is noteworthy to some.

“The allocation for defense, which for the first time has crossed the $49 billion threshold is encouraging," said Baba Kalyani, chairman of leading private sector defense enterprise Bharat Forge Ltd. In terms of manufacturing, "we hope that ‘Make in India’ will result in a greater role for the private industry in this critical sector of the country’s economy.”

Cowshish is less encouraged, seeing very few noteworthy programs on the horizon.

“It doesn’t seem likely that many big contracts for fighters, helicopters, submarines, etc. will get concluded in the coming year," he said. "This is not because of paucity of funds but on account of the fact that none of these procurement proposals are likely to reach anywhere near the contract conclusion stage any time soon. “
 
“We have completed the acquisition of a BAE Systems facility in Barrow-in-Furness, UK, which is a submarine and artillery plant" Baba Kalyani, Chairman, Kalyani Group

Broadsword: Induction of new artillery guns shows promise for indigenous defence firms

@BMD Any idea what it is about or What Kalyani group is acquiring? I mean BAE won't sell it's submarine building facility, Will it?

View attachment 4190

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BAE Systems Maritime – Submarines - Wikipedia

Is this the facility he is talking about?
 
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“We have completed the acquisition of a BAE Systems facility in Barrow-in-Furness, UK, which is a submarine and artillery plant" Baba Kalyani, Chairman, Kalyani Group

Broadsword: Induction of new artillery guns shows promise for indigenous defence firms

@BMD Any idea what it is about or What Kalyani group is acquiring? I mean BAE won't sell it's submarine building facility, Will it?

View attachment 4190

View attachment 4191

BAE Systems Maritime – Submarines - Wikipedia

Is this the facility he is talking about?
This I think.

Modernisation of Artillery - SP's Land Forces

It's a facility to build howitzers for India, not the whole plant.
 
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DAC clears changes in defence procurement procedure to make it simpler

The Defence Acquisition Council (DAC) chaired by Defence Minister Nirmala Sitharaman on Thursday approved significant changes in the Defence Procurement Procedure (DPP)-2016 to make it "industry friendly and simpler".

In a major change, the submission of bank guarantees from Indian private sector banks authorised by RBI in addition to all public sector banks has been approved.

The Defence Ministry said that this step would cut overhead costs of seller incurred while obtaining these guarantees from banks and enable faster financial transactions.

Another significant change is simplification of the best price determination process in which the latest government policies on GST and custom duties have now been taken into account in order to evaluate the lowest bidder.

The move gives advantage to the Indian vendors as it gives them an advantage in terms of duty as compared to foreign bidders.

The rules were last revised in in May last year.

The DAC also approved aligning the date of delivery with the date of advance payment instead of the date of contract.

"This entails that the seller has adequate mobilisation of funds available to him to commence production and ensure delivery on schedule," the Ministry said.

Changes have also been made to simplify "unwieldy aspects" of the procedure such as devolution of approval and vetting of reports.

"These measures are set to provide further impetus to the indigenous defence industry in the country as also encourage foreign industry to manufacture in India," it added.


Jabalpur officer summoned by CBI found dead

BHOPAL: A junior works manager (JWM) of Gun Carriage Factory (GCF-Jabalpur), who went missing on January 17, a day after being summoned by the CBI for questioning for the probe into the alleged use of Chinese parts in long range artillery gun ‘Dhanush,’ was found dead on Tuesday.

SC Khatua was found dead under mysterious circumstances. Primary probe reveals that he may have committed suicide. “The body was found in a cave-like structure near the GCF campus and his scooter was found close to the spot. Though the body has been sent for autopsy, circumstantial evidence suggests that he committed suicide,” said Jabalpur district police superintendent Amit Singh.
The partially decomposed body seems around 15 days old, added Singh.

Though primary probe suggests suicide, it’s not clear how no one spotted the body and the scooter for over a fortnight despite it being close to the factory.

Khatua, who was reportedly summoned by the CBI on January 16 for questioning on January 19, had left his official residence in Jabalpur on January 17 to consult an advocate, but didn’t return home. His wife Mousami had then lodged a missing person complaint.

As per the probe, the missing officer was last seen in one of the CCTV cameras near GCF on January 17.
 
Then why did he specifically mention "submarine and artillery plant"?

“We have completed the acquisition of a BAE Systems facility in Barrow-in-Furness, UK, which is a submarine and artillery plant" Baba Kalyani, Chairman, Kalyani Group
Don't know. I'm not finding any good sources to verify any acquisition, just blogs.
 
All told, the interim budget allocates Rs 1.03 lakh crore towards the capital expenditure of the three forces.

Of this, the Indian Navy has been allotted Rs 23,156.43 crore. The committed liabilities for capital acquisition of the Indian Navy is Rs 25,461 crore, a second senior official dealing with the budget allocation in the ministry of defence said on the condition of anonymity. Committed liabilities are instalments paid annually for ongoing capital projects such as building warships, aircraft, missile systems, etc.

“Either we are allocated more funds later in the year, or we need to cut down on expenditure elsewhere if we have to meet all liabilities that we have agreed on,” a senior naval officer said on the condition of anonymity.

The other option is to roll over the liability, a third defence ministry official said, asking not to be identified. According to Amit Cowshish, the former chief financial adviser to the ministry of defence, “rolling over committed liabilities happens, but is not a healthy practice. Importantly, it reflects poorly on the country.”

The situation isn’t very different for the Indian Air Force which has been allocated Rs 39,302.64 crore for capital expenditure, but which has committed to paying Rs 47,413 crore this year, a fourth senior defence ministry official, who did not want to be named, said. Among the big-ticket items IAF is paying for are the Rafale fighters from France.

The army is relatively better off. It has been allocated Rs 29,447.28 crore. It has a committed liability of Rs 21,600 crore.

Air force, navy stare at fund crunch next fiscal
 
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