Contents title

Contents subjects

July 2013 Eye on Defence

The Indian Government has endeavored to reverse the trend of importing 70% of its defense equipment needs from foreign companies and achieve its objectives of self-reliance in defense production. The much-awaited DPP 2013, released on 1 June 2013, is a case in point. The government has brought back the focus on indigenization and, through policy actions, intends to utilize DPP as a tool to enhance the Indian industry’s participation in defense manufacturing and services. Although programs announced under the current DPP will start getting executed only by 2016–17, the policy statement does signal the MoD’s outlook on reversing import trends.

The basic tenets on which DPP 2013 is based are speed of execution, transparency, efficiency and indigenization. Significantly, it has introduced an order of preference for the categorization of defense procurement projects, with indigenous design, development and manufacturing getting priority. To back its intent with action, the MoD has also simplified and clarified procedures for “Make” and “Buy and Make (Indian)”, signalling enhanced activity through these methods of capital equipment procurement. Furthermore, to resolve the issue of determining indigenous content in defense equipment, DPP 2013 clarified the line items used for calculation. It has also prescribed checks and balances such as certifications and audit under the guidance of the MoD to calculate indigenous content. To expedite procurement, DPP 2013 has initiated some measures including higher financial powers of various agencies under the MoD and early release of RFP. These and other significant changes have been analyzed and discussed in this issue of Eye on Defense.

India, with a vast coastal border of 7,516 kms and covering 9 coastal states and 4 Union Territories, poses a variety of serious security issues/concerns and challenges. The 26/11 Mumbai terrorist attacks brought to fore the vulnerability of India’s coasts and the urgent need for ensuring coastal security. Since then, the government has taken several initiatives to strengthen the security of coastal areas. A summary of such measures and other planned ones has been included in this issue.

This issue covers a commentary on the latest changes in the regulatory framework for the aerospace and defense industry, including the introduction of a list of “defense” products for compulsory IL and a notification for putting on hold offset discharge through “services”.

The regular sections cover industrial license applicants, new projects and investments, joint ventures (JVs) and alliances, country-level deals and the latest buzz in the industry.

I hope you find this issue useful. It has been our constant endeavor to make this publication increasingly relevant to you. We would really appreciate your comments and suggestions in this regard.

K. Ganesh Raj Partner and LeaderAerospace and Defence practice

Contents

Indian defense regulatory update 2

DPP 2013: a game changer 4

India’s coastal security 7

Request for Information (RFIs) (March 2013— June 2013) 12

Request for Proposals (RFP) (March 2013— June 2013) 13

List of Industrial Licenses (ILs) filed for March 2013—April 2013 15

New projects/investments/ contracts 16

JVs and alliances 19

Country-level deals and initiatives 20

Industry buzz 21

Sources 25

2 | Eye on Defence

The sector has witnessed two significant developments in the recent past. The question of what products require an Industrial License (IL) before their manufacturing can be undertaken has always been marked with ambiguity. To provide the much-needed clarity, The Industrial Development and Regulation Act (1951) and subsequent press notes provided a very broad-based explanation. However, the necessary details were found lacking in the ensuing press notes. To add to this confusion, the Defence Procurement Procedures (DPP) 2006 explanation clearly stated that only companies with a valid IL would be considered as IOPs. Although the mandatory requirement on an IL was removed from DPP 2008 onward, the ambiguity continued. As a result, the Department of Industrial Policy and Promotion (DIPP) and, consequentially, the Department of Defence Production (DDP) were flooded with IL applications and processing time scaled a peak of up to two years. As a result, all of the stakeholders, the MoD, services and the Indian industry, were embroiled in the confusion. Furthermore, DPP 2011, which was released in

Indian defense regulatory update

January 2011 brought into the offset fold the synergistic sectors of civil aerospace and internal security. Both these sectors did not require an IL, but IOPs continued to file applications for ILs. This is because OEMs were not clear about the exact meaning of defense products.

The answer came in the form of a list of “Defense Products” on the DIPP’s website (http://dipp.nic.in/English/Investor/Investers_Gudlines/defenceProducts_LicencingRequired_26April2013.pdf). This is a replica of the Munitions List, as is prescribed in the Wassenaar Arrangement. Minor modifications to this list, ML21 (software) & ML22 (technology), have been excluded. India is not a signatory to the Wassenaar Arrangement but has now decided to adopt this list.

Ernst & Young had, in its December 2012 issue of the Eye on Defense, suggested a similar solution. In our limited understanding, this is a list of items that require an IL. As a corollary , we assume that any item that is not included in the list should not require an IL. We hope that this list will greatly reduce the number of IL applications and the period

3Eye on Defence |

between application and receipt of the IL. It would aid OEMs in using their fair direction while deciding which IOPs should apply for an IL.

On the flip side, the Augusta Westland bribery case continues to make controversy. The matter is still in Italian courts and under investigation by the Central Bureau of Investigation in India. The modus operandi used by the accused was that of “Services” export for discharging offsets. Reportedly, a North India-based firm was exporting non-eligible service in the form of software, etc., and in return was receiving large payments that Augusta was then using to claim offset credits. Since there was no mechanism in place to verify the genuineness of the export, the entire transaction would have gone unnoticed had it not been for the bribery case. The Defense Offset Management Wing (DOMW) has taken cognizance of this case and, on 23 May 2013, released an Office Memorandum (OM) stating that “all services” eligible for offset credits stand in abeyance with immediate effect. This OM is applicable for all RFPs

released on and after this date (23rd May) and for RFPs whose technical and commercial proposals are yet to be submitted.

This OM has effectively put an end to the use of “services” as an offset eligible item. Several Indian companies that are very active in this space are in for a difficult time. Furthermore, “services”, India’s biggest export, will no longer get a leg up through offsets. We sincerely hope that this OM gets reviewed soon and that the MoD takes a measured step in the right direction. There is one query that still remains. DPP 2013 was released on 01 June 2013. Para 77 of the new DPP clearly states that all cases where the RFP is issued after 01 June 2013 will be processed under DPP 2013. A brief analysis of the new DPP revealed that “services” are a part of the offset eligible item list, as well as the multipliers for MSMEs. This creates a doubt whether the OM has been superseded by DPP 2013. If at all it has superseded, we would need to question the need for an OM that was valid for fewer than 10 days and clearly look into what RFPs (if any)have been affected by this OM.

4 | Eye on Defence

DPP 2013: a game changerAfter undergoing five iterations since its introduction in 2002, the DPP has renewed its focus on indigenisation through DPP 2013 to achieve its objective of reversing the trend in imports, from the now 70% to the projected 30%. This, in fact, is quite an ambitious target and was first stated by our former President, Bharat Ratna Dr Abdul Kalam, when he was the Scientific Advisor to the Prime Minister. The MoD, in consultation with various other ministries, industry bodies, OEMs and other stakeholders, has been actively trying to formulate a policy that promotes indigenization. The success of the policy would only become evident in time and is proportionate to efforts made in implementation.

The evolution of the DPP from 2002 has indicated the intent of the MoD to adapt to the requirements of stakeholders by retaining the DPP as an evolving process, in continuum. The process was initiated with one category of “buy” and has now been evolved to include another four: “Buy Indian”, “Buy and Make Indian” and “make”, in addition to “Buy and Make Global” and “Buy Global”. As stated, the emphasis is on giving a fillip to the Indian defense industry, both in the public and private sector.

The highest priority has been laid on “Buy Indian“ and the lowest on “Buy Global“, with Buy Indian, Buy and Make Indian, Make, Buy and Make Global being listed in the order mentioned in the DPP 2013. The MoD has gone a step further to include a clause seeking detailed explanation for recommending categorization, as well as reasons why each of the higher preferred categorizations have not been considered suitable.

It is indeed interesting that the MoD did not stop at merely according a priority and has traversed an extra mile by simplifying the procedure for the “Buy and Make Indian” category. Lack of clarity on the “Buy and Make Indian” category, as was the case in the previous versions of the DPP, did harm to the cause of indigenization. As a direct consequence, only one project had been booked under this category since its introduction in the DPP. The question arises whether the amendment would translate into a substantial increase in the number of cases that are projected for seeking Acceptance of Necessity (AoN) under this category. The armed forces are upbeat about this and are likely to increasingly sponsor cases under the “Buy and Make Indian” category than the usual route of “Buy and Make Global”. In the case of the “Buy and Make Global”, a common practice has been to nominate Defence Public Sector undertakings (DPSUs) as Production Agencies (PA) to undertake the “Make” portion of the program. Nomination

of the private industry for absorption of technology and its subsequent licensed production was never contemplated in the background of uncertainty around capacity, capability and experience and the lack of a formal process/method by which a PA could be selected. This issue has been corrected to a very large extent in the “Buy and make Indian” category, which provides for a level-playing field and, thus, attracts public and private Indian companies alike. The move is expected to increase transparency in the transfer of technology, as the recipient is now held responsible for the cost of technology, as well as delivery (initially responsible only for delivery, as cost was borne by the MoD). This may have a ripple effect of reducing the cost of technology, since the recipient would be more diligent in identifying incremental technologies that add value to the indigenous defense technology base. Demand for technology, therefore, will be based on need and not want. The MoD has also taken steps to further simplify the “Make” and the “Fast Track” procedures, indicating the onset of a new paradigm of categorizations with emphasis on enabling the participation of the domestic industry.

The recently amended Defence Offset Guidelines of 2012 have been incorporated with minimal cosmetic additions. The concept of “facilitation” has been done away with in respect of offsets discharge. Although, one of the tasks for Defence Offsets Management Wing (DOMW) is to assist OEMs during interface with the Indian industry.

The DPP 2013 has also sought to increase accountability within various departments/agencies involved in the acquisition process by reducing the validity of AON once accorded to just one year from two. The implications are quite significant: defence services have to make sure that they are ready in all respects for the said acquisition even before the AON is accorded, so that they are able to comply with the challenging timelines. In addition, the DPP stipulates that the Services Qualitative Requirements (SQRs) should be frozen before the accord of AON. Therefore, AON has become significant in its approval; it is now an all-encompassing approval with limited scope available for changes after finalization. In this case as well, the focus on facilitating indigenization is prominent, since the above provisions are not applicable to the “Buy and Make Indian” cases. “Buy and Make” Indian cases can get an approval based on a preliminary SQR with a validity of AON for two years, enabling “services” to freeze SQRs after a detailed interaction with the industry even post AON. This is indeed very encouraging both for the services and domestic industries.

5Eye on Defence |

Synergy at various levels has been an underlying theme of DPP 2013. While the thrust has been rightly placed on indigenous acquisitions, the definition of indigenous content has been stipulated, without allowing it to be a subject of interpretation. The basic cost of equipment, spares and test equipment has been specifically included in the calculation of indigenous content as early as the Field evaluation stage. While “Buy Indian” demands a uniform 30%, the “Buy and Make Indian” category makes a significant distinction, demanding 30% Indian content in the first basic equipment made in India, while allowing the “Buy” portion to be devoid of any restrictions in the interest of expeditious procurement. The Armed Forces and the industry alike welcome such a move, determined to be in the best interest of our procurement philosophy.

The concept of Raksha Udyog Ratnas (RURs) has been dropped. The MoD has made efforts to formulate guidelines for the empanelment of the Indian private industry in “Make” cases. The Indian industry at large has been welcomed into the defense sector with broad-based empanelment guidelines. This encourages the “consortium” approach, wherein a group of companies is engaged in manufacturing and is treated as a single entity to determine turnover and capex. This will not only enhance an indigenous approach to arms production, but also encourage partnerships in key areas, as demanded by sheer business volume.

A few provisions of the revised offset guidelines may make discharge of offset obligation easier for foreign OEMs. This includes a wider scope for discharge, extended times for offset deliveries, multipliers for various options of choice of Indian Offset partner (IOP), Transfer of Technology (ToT), Technology Acquisition, etc. Best practices in offsets have become integral to the Indian MoD’s offsets provisions, duly integrated into Defence Procurement procedures. Questions of dual-use technologies and products are still at large, with the recent announcement regarding the list of defense products adding to the list. Nevertheless, the MoD has come up with a list of defense products by very faithfully adopting the munitions list, as indicated in the Wassenar Arrangement. It is believed that ML 21 and ML 22 are not promulgated as part of the DIPP’s recent announcement and are indicative of the fact that the products contined within these sections of the Wassenaar Arrangement will not require an IL, implying that the extant regulations of the GoI will apply. Furthermore, the Revised Offset Guidelines explicitly state that offset guidleines will be applied in synergy with the remainder of the regulatory mechanisms of

the GoI. Read in conjunction with the FDI policy and industry policy, the DPP provides a very coherent picture.

This DPP has focussed on Request for Proposals (RFI) and Services Qualitative Requirements (SQRs) rather well. The need for firming in SQRs prior to placing the same for accord of AON is a significant step. Any ambiguity that was inadvertently present through allowing amendments to the SQRs post the accord of AON and prior to the issue of RFP has been removed. Such flexibility is available only in the case of “Buy and Make Indian”, adding to the popularity of the category. The RFI process has been strengthened by seeking cost estimations and other detailed information, including suggested alternatives in meeting the objective.

The “Buy and Make Indian category” has been simplified. The process appears to be in an implementable form now. The involvement of DRDO in identifying and spelling out technologies that are required to be absorbed with at least 50% in cat I and II is very welcome. It goes on to exhibit the DPP’s intent to clearly scout for technologies and plug in gaps, as have been identified. Some emphasis has been placed on identifying vendors in successive stages. Demand for indigenization at various stages of delivery schedule and technology absorption is welcome, thus placing an element of accountability. The cumbersome process of making a capability definition document, Detailed Project Report (DPR), et al, has been done away with. With such enabling features, the “Buy and Make Indian” category of acquisition may become more popular and find patronage from within the Armed Forces and industry. The domestic industry has reason to cheer, as the government has ensured the creation of an enabling and conducive environment for their participation through the DPP 2013. If the conditions are not duly leveraged, “Buy Global” will once again dominate the space, and the domestic manufacturing industry would have to remain content with contract-manufacturing through offsets.

Transfer of technology is addressed in detail with enabling provisions for maintenance ToT; it is worthwhile to note that the cost of equipment and MToT will be borne by the private Indian bidder. Although it is a welcome move, no process has been laid out to enable this choice. In the absence of clarity, It may be assumed that the selection of an MToT partner will be governed by free market forces. This is a window of opportunity for private players to engage with armed forces on maintenance project throughout the life cycle of the equipment. DPP has, for the first time, included a Performa for the inclusion of information that needs to be placed on

6 | Eye on Defence

the MoD website or the central procurement portal. This is a significant step toward transparency. The provision has been in place for more than six years, and the DPP has finally enabled it through an inclusion in the Statement of Case (SoC).

Increased power at the service headquarters level will reduce the burden at the MoD (DG Acq) level, enabling stronger focus on large procurement cases. A large number of cases will fall under the services’ Vice Chiefs level. Therefore, the Armed Forces need to strengthen the mechanism to cater to the potential increase in volume.

Areas where the MoD does need to step in and speed up

The Mod needs to urgently and immediately decide a timeframe for the acquisition process. Given the increased accountability and speedier decision making, acquisition timelines should have ideally shrunk. In all cases involving technology, it is imperative that Defence Research Development Organization (DRDO) plays a prominent role and addresses the issue holistically. The DPP may include the recommendations of other boards such as the Defence R&D board, the Defence Production Board and others, as a reporting mechanism to the Defence Acquisition Council (DAC) in its regular meetings. This will create more accountability at the other boards as well.

Post contract monitoring has not been strengthened, thus raising the question, “how many times has the post contract monitoring been done and Quarterly Contracts Implementation Reports (CIR), placed for review and what lessons have been learnt”? In spite of the various scams that have surfaced, the Technical Oversight Committee (TOC), the sole mechanism available with the DPP, has not been strengthened. The TOC is indeed a very potent source of fixing bugs in the system. It could potentially provide early warning for fixing any irregularities, even prior to signing of the contract.

The DPP does not provide for inclusive growth, especially in the case of any schemes for Micro, Small and Medium Enterprises (MSMEs), which are the repositories of knowledge and innovation, and make considerable room for IPs. The DPP 2013 would have done well to introduce benefits such as exemption of Ernest Money Deposit (EMD) and other securities, provision of funds at lower interest rates or as grants, price preference and purchase preference, special waiver for exchange rate variation to protect them, or at least a small cross reference the MSMED

Act of 2006 for sake of uniformity. It could have also gone one step ahead to introduce a new procurement category, such as “Buy MSME”, for all cases where procurement cost is low for products that are not technologically cost prohibitive. In all “Buy Indian” cases or even in “Make” category cases, a small portion of the procurement or parts/components thereof could have been mandated for procurement from MSMEs. This would ensure enhanced cooperation between large system integrators and MSMEs.

ConclusionThe DPP 2013 is in many ways transformational, having provided focus in many crucial areas that were ignored in the past. Focus on indigenous content with clearly laid out definition and intent is demanding. This only needs to be reinforced more stringently with each passing DPP version. The priority laid down for procurement by category is laudable, though proof is in the execution. Priority of procurement must be linked to lead times, and the Indian industry needs more lead time to be able to gear up to the stringent requirements of the Armed Forces and put the right collaborative mechanisms in place. It appears that the “Buy and Make Global” category will carry on as before with nominations from the public sector only. The opening up of MToT to the private sector’s needs and market forces must be able to determine the extent of relationships. The OEM must be able to choose its MToT partner. Time to RFP from AON is significant and will usher in RFPs more predictably than before.

The integration of offset guidelines into the main procurement procedure is a routine inclusion, and the benefits of the guidelines would be realized only after half a decade. To ensure that progressive offset provisions are of any use for the domestic industry, the provisions must be necessarily made applicable with prospective effect. Linking the provisions of the DPP with those of the offsets and of the procedures to the RFP is out of place. The procurement process and offsets provisions need distinctive treatment. Offsets do not have any relationship to the award of contract and, hence, can be made applicable at a time of choice. The MoD will do well to realize this and allow the domestic industry to reap the benefits today rather than put it off for a date.

It would have been a good idea to make provisions for inclusive growth in the MSME sector. It must be remembered, “If India lives in villages, then industry lives in MSMEs”.

7Eye on Defence |

India’s coastal securityIndia, with a vast coastal border of 7516 kms and covering 9 coastal States and 4 Union Territories, poses a variety of serious security issues/concerns and challenges including the landing of arms and explosives at isolated spots on the coast, infiltration/exfiltration of anti-national elements, use of the sea and offshore islands for criminal activities, and

smuggling of consumer and intermediate goods through sea routes. The 26/11 Mumbai terrorist attacks brought to fore the vulnerability of India’s coasts and the urgent need for ensuring coastal security. Since then, the government has taken several initiatives to strengthen security of coastal areas. One of the most significant achievements has been making the Indian Navy (IN) responsible for overall maritime security in terms of coastal security, offshore security and the integration of all maritime stakeholders, including several state and central agencies, into the new coastal security mechanism. All of the stakeholders in the maritime domain have been directed to coordinate their activities with the Navy. The Indian Coast Guard (ICG) will look after coastal security in territorial waters, including areas to be patrolled by the Coastal Police, as well as coordination between the central and state agencies. Also, the government finally created a three-tier coastal security ring all along the coast provided by the Marine Police, Indian Coast Guard and Indian Navy. It described the geographical extent of their responsibilities. At present, extensive surveillance and patrolling has been put in place across the Eastern and Western coastlines by security forces in a coordinated manner. The Coast Guard is undertaking extensive patrolling and surveillance along the eastern and

western coast, in coordination with other central and state agencies, viz, the Indian Navy, Marine Police, Customs, CISF and Port Authority. Furthermore, for effective surveillance, the deployment of assets by ICG in the Exclusive Economic Zone (EEZ) has been enhanced. On an average, about 18-20 ICG ships are kept on patrol on a daily basis, while 8-10

aircrafts are on aerial surveillance sortie. At least one ship is being maintained on the maritime borders with Pakistan and Sri Lanka. In addition, waters off Lakshadweep and Minicoy islands are maintained under constant surveillance. For patrolling shallow waters, the Marine Police has been raised in coastal states and union territories. These have been equipped with interceptor boats and other assets under the Coastal Security Scheme.

Apart from strengthening the existing multi-layered patrolling and surveillance arrangement, the acquisition plans and programs of the Indian Navy and the Coast Guard have been fast-tracked to provide both these maritime security forces with enhanced capabilities. ICG has been in

existence for over three decades. Regardless, in this volatile era of heightened coastal security concerns, ICG will have to constantly upgrade and improve its functioning.

ICG is rapidly expanding and has planned the acquisitions of a large number of ships, boats and aircraft, under construction at various shipyards, to upgrade itself to the requisite level. This is in the context of about 50% of the surface platforms having already exceeded their designated life. The ICG is now gearing up for a major expansion drive. It has placed orders for 131 surveillance platforms that are already under construction in Indian shipyards and is in the process of introducing a variety of assets. The Coast Guard is looking to procure at least 5 OPVs, 10 fast-attack craft, 20 interceptor boats, hovercrafts, radars, 12 Dornier aircraft, 30 helicopters, among other things. Some of the major ongoing/planned orders and programs in the pipeline for the ICG consist of:

Assessed Requirement

Present Inventory

Ships 154 No. Ships 44 No.

Boats/Crafts

93 No. Boats/Crafts

Non-Commissioned Boats

20 No.

23 No.

Aircraft 105 No. Aircraft 45 No.

8 | Eye on Defence

Offshore Patrol Vessels (OPVs)

OPV is the most critical platform for coastal security. The Indian Navy and the Coast Guard have 17 OPVs of varying sizes on order worth US$2 Billion (INR110 billion). The authorities plan to order another 13 large OPVs worth US$6 billion (INR330 billion) for Indian Coast Guard. The Coast Guard is reportedly looking to induct 160 OPVs in next 10 years. Following are the orders placed in the past few years in this regard:

• Goa Shipyard (GSL) received an order of 9 OPVs for IN and ICG. The latest one was the US$328-million (INR18-billion) order placed in mid 2012 for six OPVs for Coast Guard.

• In 2010, Pipavav was awarded a contract to build five OPVs for the Navy.

• The Cabinet Committee for Security had cleared proposals worth US$390 million (INR21.5 billion). Accordingly, five offshore patrol vessels would be bought for the Coast Guard for US$273 million (INR15 billlion). The proposal will be processed during 2013.

Fast patrol vessels

The Cochin shipyard is building 20 FPVs for Cost Guard. For this, the authorities had placed an order worth US$273 million (INR15 billion) at end 2010, with the delivery of the last vessel slated for 2017.

Interceptor boats

There are plans of inducting 145 small interceptor boats. Of these, 36 are being constructed at the L&T shipyard and the remaining at various other shipyards.

Fast Interceptor Crafts (FIB)

The MoD is in the process of procuring FICs worth $56 million (INR3 billion). By December 2011, 15 FICs were delivered to the Navy to quip Sagar Prahari Bal, a specialized force for securing India’s coastal assets. The contract for the boats was signed with Sri Lankan shipyard Solas Marine. Delivery of boats is slated for end 2014, and all of these will be supplied to Sagar Prahari Bal, a special naval infantry force comprising 98 officers and 902 sailors, brought into being especially for coastal security. Also, the MoD signed a deal for the procurement of 15 fast-interception boats (FIBs) with French shipyard Chantier Naval Couach to supplement the Navy and Coast Guard.

Aircrafts/Helicopters

The Coast Guard has a fleet of 45 aircraft (24 Dornier planes, 17 Chetak helicopters and 4 Dhruv Advanced Light Helicopters). The modernization plan for ICG Aviation is an integral part of the major revamp of coastal security apparatus incited by the events of 26/11 Mumbai attacks. Keeping this in view, a case for the procurement of 6 multi-mission maritime aircraft and 14 shore-based helicopters for surveillance and reconnaissance is being initiated by Coast Guard in the near future. While the RFI of the first programme is awaited, the tender for the second programme has been issued. The Coast Guard is also planning to issue a fresh tender worth US$200 Million (INR11 billion) for 16 Ship Borne Light Helicopters this year.

Coastal Surveillance Network

For improving surveillance of the entire coastline and counter sea-based piracy, the Coastal Surveillance Network project is being implemented. The coastal surveillance scheme will operate through a chain of electro-optic sensors (radars and day, and night cameras), which are being installed on lighthouses and towers that look out at the Arabian Sea and the Bay of Bengal. Data picked up from multiple sensors all along the coast will be transmitted to surveillance centers located in the interior. With a range of about 80 miles, this chain will boost the electronic surveillance capability of the force to identify any rogue ship approaching the Indian coast.

Name Of Coastal States/Union Territories

No. Of Radar StationsPhase-I

Gujarat 06Daman & Diu 02Maharashtra 05Goa 01Karnataka 02Kerala 04Lakshadweep & Minicoy Islands 06Tamil Nadu 06Pondicherry 01Andhra Pradesh 06Odisha 02West Bengal 01Andaman & Nicobar Islands 04Total 46

9Eye on Defence |

The entire project for coastal surveillance through radars and sensors is being carried out in two phases. As part of Phase I, the ICG is setting up 46 electro-optic sensor stations in high-threat areas and 12 remote operating stations. This will be expanded in Phase II to cover the entire coastline within three years. The 12 remote operating stations feed into one of four regional operating centers in Mumbai, Kochi, Chennai and Visakhapatanam. Finally, all this information is fed in real time to the apex control center in New Delhi and is integrated to be presented with a nationwide perspective. Along with this, as part of the second layer of electronic maritime surveillance, automated identification stations with a range of 150 miles will also be set up. For proper functionality, transponders will be put on all boats of fishermen. The third and outermost layer consists of satellite-based Long Range Identification and Tracking (LRIT) to spot vessels transcending through waters about 1,000 miles from the Indian coastline. The program, inclusive of sub-components for Phases I and Phase II, is reported to be worth $3 billion (INR165 billion). Phase I is nearing completion; the installation of radars in the mainland was completed by the end of November 2012, while those in the island territories are expected to be installed by mid 2013. The prime contractor is Sweden’s SAABTech. Indian company BEL has been assigned for the assembling of all imported systems and sub-systems that

are being received in semi knocked-down condition from SAABTech. Other companies involved are:

• TERMA of Denmark: supplying SCANTER 2001 S-/X-band radars

• Controp of Israel: supplying thermal imager

• Canada’s Obzerv of Canada: supplying ARGC CCD camera with LLLTV

• Frequentis of Austria: providing communications package

Phase II involves setting up 110 multi-modal coastal surveillance radars and 37 towers. TERMA has 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 was cleared during field evaluation trials, and contract negotiations are underway. Other anticipated beneficiaries include Cobham, Thales and Elta.

Coastal Security Scheme

A Coastal Security Scheme (CCS) has been formulated for strengthening infrastructure for the patrolling and surveillance of the country’s coastal areas, particularly the shallow areas close to he coast to check and counter illegal cross-border activities and criminal activities using

Cost Details of Infrastructure RemarksPHASE – I $117 Million (Rs 646

Crores)Coastal Police Stations: 73Vessels: 204Jeeps: 153Motorcycles: 312Check posts: 97Outpost: 58Barracks: 30Rubber Inflated Boats: 10

Completed

PHASE - II $287 Million (Rs 1580 Crores)

Coastal Police States: 131Jetties: 60Marine Police Operational Centres equipped: 10Vessels: 150 (12 ton) boats, 20 (19 meter) boats, 10 large vessels and 10 (5 ton)Four Wheelers: 131Two Wheelers: 242Rigid Inflatable Boats: 35Procurement of approved 180 (12 Ton) boats and 10 large vessels for A&N Islands

Over 2011-2016

Data Compiled by Q-Tech Synergy

10 | Eye on Defence

coast or sea. The scheme is being implemented from 2005-06 onward. Under the scheme, coastal states/Union Territories are encouraged to set up coastal police stations with boats, jeeps and motor cycles for mobility on coast and in close coastal waters. The stations will have personnel trained in maritime activities. The government is implementing CSS in two phases. The implementation of Phase I was completed on 31 March 2011. Phase II will be implemented over five years from 01 April 2011 onward. Phase II is being implemented centrally by MHA and specifications of boats have been finalized. All of the boats are fit/provided with navigational and communication equipment to facilitate vessel identification and tracking. Lumpsum assistance of INR15 lakhs per costal police station has been given for surveillance equipment, computer systems and furniture. Details of Phase II are as below.

Name of State Costal Police Stations

Boats/Vessels Number of jetties

Four wheelers

Motor Cycles

Remarks

12 Ton Others

Gujarat 12 31 5 12 24

Maharashtra 7 14 3 7 14

Goa 4 4 2 4 8

Karnataka 4 12 2 4 8

Kerala 10 20 4 10 20

Tamil Nadu 30 20 12 30 60

Andhra Pradesh

15 30 7 15 30

Orissa 13 26 5 13 26

West Bengal 8 7 4 8 16

Daman & Diu 2 4 2 2 4

Lakshadweep 3 6 12 * 2 3 6 RIBs

Pondicherry 3 6 2 3 6

A&N Islands 20 10*23**

10 20 20 *LV** RIBs***10MOCs

Total 131 180 60 131 242

* LV- large vessels ** RIB- Rigid Inflatable Boats *** Marine Operational Centres

11Eye on Defence |

National Maritime Domain Awareness (MDA) Grid

The government is setting up a National Maritime Domain Awareness (MDA) Grid, which is expected to link up all intelligence agencies, Indian navy units, coastal police units, Ministry of Agriculture, Ministry of Shipping, Ports and Departments of Customs and Revenue. This ambitious project has been earmarked with funds worth US$300 million (INR1500 billion). Furthermore, DRDO and Center for Artificial Intelligence and Robotics (CAIR) in Bangalore are independently developing a coastal security networking software. Presently, BEL is building the National Radar Chain and, in conjunction, Director General Lighthouses (DGLL) is developing the National Automatic Identification System (AIS) chain.

Tracking of ships

The government is undertaking a program for tracking ships, as a major challenge lies in the identification of small vessels that do not comply with AIS regulations. Consideration for fitting an AIS are:

• Ships operating within 2 miles of coast: RFID

• Those operating within 12 – 24 miles of coast: Modified AIS

• Those operating within 100 miles of coast: Satellite Transponder

The number of ships to be fitted with an AIS is estimated at 5 lakh. This project will be decentralized to states, as funding at a national level is not feasible. This opens a substantial opportunity.

Surveillance equipment

The ICG does not have adequate vital equipment such as hand-held Global Positioning System (GPS3), Night Vision binoculars, Search and Rescue Transponder (SART4) and Emergency Position Indicating Radio Beacons (EPIRB5). This is creating an ever-growing demand for CCTV; night vision devices; access control; thermal imaging systems; intercom;

intrusion detection; biometrics, detectors, x‐ray scanners, baggage scanners, screening technologies and cameras. The Indian Cost Guard is also contemplating a case for a complete video conferencing solution between Coast Guard ships at sea and shore units by using Marine VSAT. The technical and operational features of the equipment include stabilized Marine VSAT, availability of bandwidth and video conferencing equipment both at ships and shore units.

In conclusion, it may be stated that during the last four years, the MoD has made significant progress in modernizing Coast Guard, with the Indian Government making concerted efforts to build a robust coastal security mechanism. To begin with, the existing multi-layered patrolling and surveillance arrangement has been furthered strengthened. Many programs and procurements have been initiated, while several others are in the pipeline. Nevertheless, the authorities need to maintain focus on sustaining the initiatives, ensuring greater coordination among Indian Navy, Indian Coast Guard and other stakeholders, as well as providing adequate funding to accomplish the task of strengthening India’s maritime and coastal security.

Sources:

• “Coastal Maritime Security Initiatives,” Indian Navy website, http://indiannavy.nic.in/sites/default/files/Content_DNO_MaritimeOps_05-06-12.pdf, accessed 18 May 2013.

• “Rajya Sabha unstarred question no. 2568,” Ministry of Home Affairs website, http://mha.nic.in/par2013/par2013-pdfs/rs-200313/2568.pdf, accessed 15 May 2013.

• “Coastal Security Scheme Phase-II: state wise physical component,” South Asia Terrorism Portal website, http://www.satp.org/satporgtp/countries/india/document/papers/2010/Statewpc.htm, accessed 20 May 2013.

• “Annual Report 2011-12 Ministry of Home Affairs,” Ministry of Home Affairs website, http://mha.nic.in/pdfs/AR%28E%291112.pdf, accessed 16 May 2013.

12 | Eye on Defence

Request for Information (RFIs) (March 2013—June 2013)

Date of Issue RFP Details/Equipment Response Date Issue By Remarks

29 May 2013 Vehicle Based Mine Scattering System (VBMSS) on High Mobility Vehicle

15 June 2013 Engineer-in-Chief’s Branch Integrated HQ of MoD(Army)

Indian Army

24 May 2013 Heavy Recovery Vehicle 15 July 2013 Directorate General of EME (EQPT)

Indian Army

29 April 2013 General Purpose Anti Personal Grenades 15 May 2013 Dte Gen of Infantry Indian Army

22 April 2013 Multi Spectral Camouflage Nets for Desert and Semi Desert

21 May 2013 E-in-C Br Indian Army

22 April 2013 Mobile Decontamination System Vehicle and Infrastructure mounted on High Mobility Vehicle

21 May 2013 Combat Engineers Directorate

Indian Army

2 April 2013 Electronic Fuzes for 105mm, 130mm and 155mm Calibre Guns

25 April 2013 Arty Dte Indian Army

28 March 2013 Ten items of Chemical, Biological, Radiological and Nuclear (CBRN)

16 April 2013 MGO Branch Indian Army

21 March 2013 Short Range Unmanned Aerial Vehicle (SR UAV)

3 May 2013 Directorate General of Artillery

Artillery-11 (UAV)

Indian Army

31 May 2013 Interactive Fire Arms Training Simulator System

30 June 2013 Provost Marshal (Air) Indian Air Force

23 May 2013 Multi-Functional Display in AVRO HS 748 Aircraft

5 Sep 2013 D Eng T (W) Indian Air Force

6 May 2013 Close Quater Battle Weapon 6 June 2013 AIR HQ (VB) Indian Air Force

26 April 2013 Weather Radar in AVRO HS748 Aircraft 7 Aug 2013 ACAS Eng (T&H) Indian Air Force

26 April 2013 Auto Pilot System in AVRO (HS-748) Aircraft

7 Aug 2013 ACAS Eng (T&H) Indian Air Force

26 April 2013 Flight Data Recorder in AVRO HS 748 Aircraft

7 Aug 2013 ACAS Eng (T&H) Indian Air Force

8 Mar 2013 Assault Rifles 8 Apr 2013 DPM (B), Dte of PM (Air) Indian Air Force

12 June 2013 Integrated ASW Defence Suite 30 June 2013 Integrated Headquarters of Ministry of Defence (Navy)

Indian Navy

31 May 2013 Explosive Ordinance Disposal Remotely Operated Vehicle (EOD ROV)

4 July 2013 Directorate of Special Ops & Diving

Indian Navy

24 May 2013 Heavy Weight Torpedo 7 June 2013 Directorate of Staff Requirements

Indian Navy

8 April 2013 Laser Guided Bombs and Associate Designators

6 May 2013 Directorate of Naval Air Staff

Indian Navy

18 March 2013 Five Fleet Support Ships (FSS) 31 March 2013

Date Extended to 15 Jun 2013

The Principal Director of Ship Production

Directorate of Ship Production

Indian Navy

1 Mar 2013 Operational Level War gaming Simulator 25 Mar 2013 Directorate of Staff Requirements

Integrated Headquarters of Mod (Navy)

Indian Navy

13Eye on Defence |

Request for Proposals (RFP) (March 2013—June2013)

Date of Issue RFP Details/Equipment Response Date Issue By Remarks

24 May 2013 Main Filter Cartridge – for MBT Arjun Tank 12 June 2013 Comdt COD Agra Indian Army Qty – 32 Sgl

24 May 2013 Harness for Bullet Proof Jacket 28 June 2013 GOC-in-C, Northern Command,

Indian Army Qty - 7810

12 April 2013 Fuze Safety No. 11 MK-2 22 May 2013 Integrated HQM oD (Army)/ MGOBranch

Indian Army Qty 5,55,277 Nos.

5 April 2013 Deep Search Metal Detectors 13 May 2013 GOC-in-C, Northern Command, C/o 56 APO

Indian Army Qty 188 Nos.

25 March 2013 Tactical Vest 20 April 2013 OC-in-C, HQ Northern Command

Indian Army Qty 4000 Nos.

25 Mar 2013 Hiring of civil aircraft for Army chartered flights

16 April 2013 Under Secretary D(Mov)/MoD Indian Army 104 Charter Flights

21 March 2013 Gamma Sensor 15 April 2013 Comdt COD Agra COD AGRA, PIN 908 820, C/O 56 AP

Indian Army Qty 18 No’s

13 March 2013 Advance Surveillance Receiver 23 April 2013 GOC-in-C, Northern Command, C/

Indian Army Qty 48 Nos.

11 March 2013 Mine Prodder 22 April 2013 GOC-in-C, HQ Northern Command

Indian Army Qty 239 Nos.

5 June Vehicle mounted Bird Distress Call unit with Battery

19 June 2013 Air Force Station Tambaram Indian Air Force Qty:02 units

23 May 2013 Vehicle Mounted Air Band Transceiver 11 June 2013 Air Force Station Tambaram Indian Air Force

23 May 2013 Bird Scaring Laser Beam Gun 11 June 2013 Air Force Station Tambaram Indian Air Force

23 May 2013 Vehicle mounted Search light with remote 11 June 2013 Air Force Station Tambaram Indian Air Force

22 May 2013 Automatic Electronic Warning System 5 June 2013 Air Force Station Tambaram Indian Air Force

10 May 2013 Heliborne Surveillence Equipment 3 June 2013 Air Force Station, Hindan Indian Air Force

23 April 2013 TARANG Mk-1B Radiation Warning Receiver System Mechanical Mod Kits for IL-76/IL-78 fleet of IAF

21 May 2013 Dte of Eng T Indian Air Force

Qty - 06

18 April 2013 Overhaul of CFTs 7 May 2013 Air HQ , RK Puram Indian Air Force

Qty 37 Nos.

11 March 2013 Shoulder Fired Weapon Indigenous Simulator (SWIS)

25 April 2013 Commanding Officer TETTRA School Air Force Station

Indian Air Force

17 May 2013 Provision of Multifunction calibrator with standard accessories for augmentation of repair facility

21 Aug 2013 ND, Visakhapatnam Indian Navy

15 May 2013 Hand Held Pressure Calibrator along with standard accessories for augmentation of repair facilities

21 Aug 2013 ND, Visakhapatnam Indian Navy

6 May 2013 Setting up of repair facilities for PERISCOPE SERO 400 and OPTRONIC MAST OMS 100 at naval dockyard (Mumbai)

5 June 2013 DGNP (MBI) Indian Navy

14 | Eye on Defence

Date of Issue RFP Details/Equipment Response Date Issue By Remarks

20 March 2013 Flood Sensor and Sensor Probe , 13 , 17 26 March 2013 Controller of Procurement Material Organisation

Indian Navy, Flood Sensor – Quantity 31 Nos. and Sensor Probe – quantity 17 Nos.

07 Mar 13 SOLAS Life Boats with Integrated Launching and Recovery Mechanism and OBS

23 May 2013 DP Integrated Headquarters of MoD (Navy) `C’ Wing

Indian Navy, Qty 06 Nos.

31 May 2013 Design Supply Erection and Commissioning of TETRYL Manufacturing Plant

30 June 2013 High Explosives Factory, Khadki, Pune

Ordnance Factory Board

6 April 2013 Turret Pnumatic Equipment for BMP II 17 April 2013 Ordnance Factory, Medak Ordnance Factory Board

28 March 2013 Antenna for FUZE FB 40 7 May 2013 Machine Tool Prototype Factory, Ambarnath -

Ordnance Factory Board Qty 14014 Nos.

21 March 2013 Nose FUZE Type A 670 M , Composition to 34 Number 1

26 March 2013 Ordnance Factory Khamaria JabalPur

Ordnance Factory Board

1 May 2013 Bullet Proof Helmet Level-III A 28 May 2013 Directorate General, Border Security

Border Security Force

9 April 2013 Explosive scent kit 30 April 2013 NT CD BSF Tekanpur Border Security Force

2 April 2013 Passive Night Telescopic Sight 14 May 2013 Provisioning Directorate (Procurement Cell)

Border Security Force Qty - 5485

15 March 2013 Wet leasing of Twin Engine Helicopters 16 April 2013 Directorate General, CRPF Central Reserve Police Force Qty 2 Nos.

16 April 2013 Diving Set With Accessories For CG Ships (BASCCA Twin Cylinder Diving Set)

14 June 2013 HQ Coast Guard Region (West)

Indian Coast Guard Qty 09 Nos.

28 March 2013 High powered speed Boat 18 April 2013 Directorate General, ITBP Tibetan Border Police Qty 02 Nos.

Request for Proposals (RFP) (March 2013—June2013) (cont’d.)

15Eye on Defence |

List of Industrial Licenses (ILs) filed for March 2013—April 2013

Application no. and date Name of the applicant Item of manufacture

12

06/03/2013

Sure Safety Solutions Pvt. Ltd. Aerial targets and its spares, airframes, catapult equipment launchers, ground command, control and support equipment

13

20/03/2013

Continental Engines Limited Engines/engine components, aerospace engine, manufacturing of miscellaneous products, manufacturing of electronic components

14

26/03/2013

KPIT Cummins Infosystems Limited IL for rendering engineering services with end use in defense, homeland security and civil aviation sector

15

01/04/2013

Narendra & Co. Pvt. Ltd. Aerosol based fire suppression systems, fire fighting equipment

16

10/04/2013

Shanthi Gears Limited Design and develop, manufacturing of supply gear box accessories and servicing of gears, gear boxes-both standard and custom built, gear motors, gear couplings and gear assemblies

17

15/04/2013

Pipavav Defence and Offshore Engineering Company

Manufacturing/Assembly/Integration of electronic fuses and associate subsystems and components for ammunition-guided munitions, rockets, missiles, torpedoes for Indian Armed force

18

26/04/2013

Narendra Explosives Limited Non-lethal tear smoke shells, tear smoke containers (delay), tear smoke grenades, fog ejectors, projectile rounds, cellulose sheets and containers

19

30/04/2013

Karnataka CNC Tech Pvt. Ltd. Structural components for Sukhoi Su 30 Mki, indigenization of 155 Mm Howitzer parts, indigenization of Naval Gun Ak 630m parts and T72 Battle tank parts, major components of small arms for Ordnance factories

16 | Eye on Defence

New projects/investments/ contracts

Name of entity Project details Value*

Textron • Textron is looking to expand its Indian footprint by entering the defense sector. It is positioning its product portfolio to suit India’s military requirements.

• The company is looking to invest US$100 billion over the next decade on military hardware.

• The new Bell 407 armed version and Bell 429 twin-engine Textron rotorcraft fit the need of Indian military, state governments and paramilitary forces. Bell-525, currently under development, is a potential product for the armed forces.

INR5,500 billion (over the next 10 years)

Indian Air Force • The IAF plans to procure 56 light-transport aircraft that would replace its existing Avro aircraft fleet in service.

• Manufacturing in India will be carried out by an Indian private company through the transfer of technology from the international vendor.

• According to RFP, 16 aircraft would be acquired outright (fly-away condition) from an international vendor, while the remaining 40 will be manufactured in India.

• The first 16 aircraft to be produced in India will have 30% indigenous component, while the remaining 24 planes will have 60% locally procured and produced items.

INR1,300 billion

Indian Air Force • The Indian Air Force is expected to close five major deals in the current fiscal.

• The deals include the procurement of 126 MMRCA (US$20 billion), three C-130J special-operations planes (as a follow-on order), 22 Boeing Apache Longbow strike helicopters (US$1.2 billion), 15 heavy-lift Boeing CH Chinook helicopters (US$1.4 billion) and six European A-330 MRTT (US$2 billion) mid-air refuelling tanker planes.

INR1,375 billion

Indian Army • The Indian Army has plans to upgrade its infantry combat vehicles (ICV) fleet with weapons such as antitank guided missiles and automatic grenade launchers.

• The Army selected three Indian companies, including two private ones, for buying 100 artillery howitzers.

INR82.5 billion

Boeing Co. • India’s Ministry of Defence is in discussions with Boeing to buy 37 heavy-lift and attack helicopters for IAF in two separate deals.

• The order includes the purchase of 15 Chinook CH-47F heavy-lift helicopters in a deal worth around INR24.68 billion and 22 AH-64D Block-III apache attack helicopters for a cost of around INR30.95 billion.

• Presently, only the proposal for the apache helicopters is at the contract negotiations stage.

INR55.63 billion

Pilatus Aircraft Limited

• Pilatus Aircraft Limited plans to set up an airframe manufacturing facility in India for its PC-12 nine-seater passenger and cargo plane.

• The proposed facility would form a major portion of the collaboration with the Hindustan Aeronautics Limited (HAL) under the offset provision of the contract for supplying 75 PC-7MK-II aircraft.

• The PC-12 aircraft is used as an air ambulance for evacuation and disaster relief.

INR35 billion

17Eye on Defence |

New projects/investments/ contracts (cont’d.)

Name of entity Project details Value*

Indian Army • The MoD approved thermal imaging (TI) sights for main-battle tanks and infantry combat vehicles.

• The Defence Acquisition Council (DAC) approved the acquisition of around 2,000 TI sights for commanders of T-72 tanks, which form the backbone of the force’s mechanized forces, for around INR10 billion.

• Around 1,200 TI-cum-day sights will be procured, at a cost of INR9.6 billion, for T-90S main battle-tanks. Similarly, another 1,780 TI-cum-day sights are to be bought for infantry combat vehicles, BMP-II and BMP-IIKs at a cost of around INR8.6 billion.

INR28 billion

Indian Air Force (IAF)

• IAF has put forward a proposal to the MoD for a follow-on order of 37 more Pilatus trainer aircraft from Swiss manufacturer Pilatus Aircraft Company.

• IAF had previously contracted for 75 Pilatus trainers, out of which 12 aircraft have already been delivered. IAF recently inducted a Pilatus aircraft at a ceremony at Air Force Academy in Hyderabad.

• The proposal, once approved, will provide a boost to its basic trainers’ fleet and will take the total number of Pilatus aircraft to 112. The cost of a Pilatus aircraft is around INR 300 million.

INR12.5 billion

Pipavav Defence and Offshore Engineering Company

• ‐Pipavav Defence bagged orders for building two specialized offshore vessels from a European client.

• Pipavav Defence intends to increase its market share in the offshore segment over the next four quarters.

INR11.6 billion

SAAB • SAAB raised its stake to 3.3% in Pipavav Offshore and Defence Engineering Ltd.

• It also signed a Technical Partnership Agreement (TPA) with SAAB covering details about the format for continued relationships and relevant projects.

• The company had signed a Memorandum of Understanding (MoU) in August 2012 concerning a strategic investment in Pipavav.

INR2.25 billion

Indian Space Research Organization (ISRO)

• ISRO has stepped up plans to start a new facility for producing cryogenic engines and components for its rockets. It currently produces cryogenic engines in partnership with a consortium of Indian private companies — Godrej and Hyderabad’s MTAR.

• The new facility, to be established at the aerospace division of the state-run Hindustan Aeronautics Ltd. (HAL) in Bengaluru, is expected to start operations in 2016.

INR1.38 billion

Ashok Leyland and L&T

• ‐ A consortium of Ashok Leyland and L&T emerged as the lowest bidder in the Indian Army’s procurement of 100 multi-barrel rocket launchers (meant to upgrade BM21 rocket launchers).

• ‐ The contract involves refurbishing existing rocket launchers and mounting them on new vehicles. Weapons-related work will be undertaken by L&T, and the vehicle is a new Ashok Leyland platform.

INR1 billion

18 | Eye on Defence

Name of entity Project details Value*

Hindustan Aeronautics Limited and Rolls Royce

• ‐ The International Aerospace Manufacturing Limited (IAMPL) inaugurated its production facility in Bangalore in June. The IAMPL is a JV company of HAL and Rolls-Royce (UK), with both the parties sharing the cost equally.

• ‐ The facility will produce components for the technologically advanced Trent family of civil aero engines, as well as for a number of marine and energy gas turbines.

• ‐ The production facility is spread over 7,200 sq m and will manufacture 130 compressor parts. The newly inaugurated facility will have about 100 employees.

INR350 million

Mazagon Dock Limited

• ‐ Mazagon Dock Limited awarded a contract to supply a powered wheel transporter system to TTS Group ASA through its subsidiary TTS Handling Systems.

• ‐ The transporter system is based on tyre wheel trailers and can handle more than 700 tons. Mazagon Dock Limited will use the system in its submarine production.

INR110 million

Elnfochips • ‐ Ahmedabad-based EInfochips became the first and only company from Gujarat to become an offset partner and supply parts for aircraft and unmanned aerial vehicles.

• ‐ It will work with companies engaged in the manufacturing and maintenance of eligible items for the defense and aerospace industry.

• ‐ The company will supply parts for aircraft and unmanned aerial vehicles.

• ‐ It engages with avionics leaders in the areas of flight controls, cockpit displays, communication, surveillance and video systems.

NA

Central Reserve Police Force (CRPF)

• ‐ The CRPF plans to purchase more than a dozen of indigenously manufactured UAVs and a number of mine protected troop carriers from the DRDO and the Ordnance Factory Board (OFB).

• ‐ The equipment would provide aid and guidance to ground patrols of the force engaged in anti-naxal operations.

• ‐ CRPF would receive 15 Nishant Unmanned Aerial Vehicles (UAVs) and more than three dozen counter-landmine vehicles to protect troops from hidden mines.

NA

Indian Army • ‐ The Indian Army has stepped up its plans to boost its mountain warfare capabilities.

• ‐ It plans to procure more ultra-light artillery guns and surveillance equipment (radar and sensors). In addition, it has put forward a proposal to establish a mountain strike corps for added offensive capabilities.

NA

New projects/investments/ contracts (cont’d.)

*The values of the deals have been converted to Indian Rupees using Oanda currency conversion tool

1US$ = INR55; 1NOK=INR10; 1SEK=INR9

19Eye on Defence |

Name of entity Nature of transactions Value*

Bharat Electronics Ltd. and TCOM

• ‐ Bharat Electronics Ltd. (BEL) plans to develop an advanced aerostat communication system jointly with US-based aerostat and airship maker, TCOM.

• ‐ The partnership would augment the surveillance capabilities of defense services, security services and law enforcement agencies.

• ‐ The helium-filled aerostats, which include sensors mounted on blimp-like large balloons secured to the ground with long cables, provide radar data and communication relay to ground force.

NA

Piramal Systems and Technologies and Global Technical Systems

• ‐ Piramal Systems and Technologies is in talks to form a JV with US-based surveillance technology developer Global Technical Systems to collaborate on maritime and internal security.

• ‐ Global Technical Systems created a surveillance radar technology AN/APS-151 Radar, an-all weather, day and night indicator radar for maritime and land-based operations.

NA

HAL and BAE Systems

• ‐ British aerospace major, BAE Systems, is looking to partner HAL for new projects across 17 countries.

• ‐ BAE Systems is looking to partner HAL beyond the Hawk Advanced Jet Trainer. A new business model such as Performance Based Logistics (PBL) could be another area of cooperation, with HAL leveraging BAE’s experience.

• ‐ The induction of the tandem twin-seat Hawk by the Indian Air Force (IAF) in 2008 to train its senior pilots in flying fighter jets and use weapons at supersonic speed made India the second-largest market for BAE for the aircraft after Britain.

NA

JVs and alliances

20 | Eye on Defence

Country-level deals and initiatives

Country Nature of transactions Additional details

Israel Israel is all set to bag an INR150-billion defense deal to equip all of the 356 infantry battalions of the Indian Army with third-generation anti-tank guided missiles (ATGMs).

• ‐ The deal will involve an initial direct acquisition of the man-portable “tank killers” with a strike range of 2.5 km, followed by the transfer of technology to defense PSU, Bharat Dynamics, for large-scale indigenous manufacture.

• ‐ However, since Israel is the sole bidder, the deal is currently put on hold and is pending a “technology scan” by the Defense Acquisition Council (DAC), given the “single vendor situation”.

Russia India is planning to tie up with Russia for building self-reliance in the design and development of all types of warships, including submarines, for the Navy and the Coast Guard.

• ‐ The Defence Ministry plans to have a tie-up between the Kerala-based National Institute of Research and Development in Defence Shipbuilding (NIRDESH) and Russian Krylov Institute for working in this direction.

• ‐ The Ministry of Defence appointed a sub-committee to prepare a roadmap for growth of NIRDESH, while another would examine and select R&D projects undertaken by it.

Maldives The Minister of Defence and National Security of the Republic of Maldives, Mr. Mohamed Nazim, was on a four-day visit to India.

• ‐ Both the ministers reviewed ongoing exchanges between the Armed Forces in areas of training, exercises and strengthening of infrastructure and capabilities. They also decided to take measures to further enhance such exchanges.

Singapore India and Singapore held wide-ranging talks on defense cooperation. They exchanged views on global and regional security issues including Asia-Pacific security.

• ‐ India and Singapore signed a fresh agreement to extend the use of training and exercise facilities in India by the Singapore Army for five years from August 2013 onward.

• ‐ The agreement was signed by Indian Defense Secretary Mr Radha Krishna Mathur and Singaporean Permanent Secretary of Defence Mr Chiang Chie Foo in the presence of the Defence Ministers of the two countries, Mr AK Antony and Dr Ng Eng Hen.

Thailand India and Thailand initiated talks for cooperation and collaboration in defense production during the meeting of defense ministers in Thailand. Talks between the two ministers covered a wide range of issues including regional security concerns.

• ‐ Defense Minister Shri AK Antony offered to discuss possible areas of cooperation and collaboration in defense production with the Thai authorities.

• ‐ The Defense Minister also invited Thai teams to visit various defense production facilities.

Australia Defense Minister Mr. A K Antony and Australian Minister for Defense Mr. Stephen Smith met in Perth and Canberra to discuss shared strategic and security interests, including maritime security and bilateral defense cooperation.

• ‐ India and Australia agreed to continue to contribute to the peace, stability and prosperity of the Asia-Pacific region and to promote cooperation in the Indian Ocean region.

• ‐ They took note of the progress made in defense cooperation, in accordance with the MoU on defense cooperation inked in 2006, the joint declaration on security cooperation issued in 2009 and the joint statement issued during Australian Prime Minister Julia Gillard’s visit to India in 2012.

21Eye on Defence |

Industry buzz

India readies hi-tech naval base to keep an eye on ChinaIndia is working on a futuristic naval base on the eastern seaboard to counter China. The naval base, code-named Project Varsha, is located near Rambilli on the Andhra coast at Vishakapatnam. The project is set to take off in a major way with the construction of tunnels, jetties, depots, workshops and accommodation. The strategic base will eventually have underground pens or bunkers to protect nuclear submarines both from spy satellites and enemy air attacks.

(Source: Rajat Pandit, “India readies hi-tech naval base to keep eye on China,” The Economic Times, 27 March 2013, via Factiva, © 2013 The Times of India Group.)

AgustaWestland approaches government for INR24 billionAnglo-Italian company AgustaWestland approached the Finance Ministry for the release of nearly INR24 billion (put on hold by the Defence Ministry because of inquiry into the case). The company argued that holding back its payments amounted to “breach of contract”. The company argued, as per the principles of justice under Indian and Italian laws, till proven guilty, “no individual or organisation” can be held guilty. Investigations were ongoing in both the countries in the case. India has paid around 30% in the INR36-billion deal and had withheld the remaining after the Italian investigators arrested former CEOs of Finmeccanica and AgustaWestland for allegedly paying INR3.62 billion kickbacks.

(Source: “AgustaWestland approaches govt for release of Rs 2,400 crore,” Press Trust of India, 4 June 2013, via Factiva.)

DRDO looking to develop guided bombs by end 2014India is in the final stages of developing a guided bomb and is likely to deploy the indigenously made kit on its fighter aircraft by the end of 2014. Developed by India’s DRDO, the “glide bombs” are designed to improve the accuracy of air-to-ground bombing by the Indian air force (IAF). Several tests have been performed, both through simulation and flight tests, over the last few years to reach the required performance levels of precision attacks. Ravi Gupta, DRDO spokesman, in a conversation with Aviation Week stated, “This is a kit that comprises logic and navigation systems.” The DRDO has successfully carried out two tests of this first-of-its-kind bombs, and it plans to conduct more this year.

(Source: Jay Menon, “India to deploy guided bombs in 2014,” Aerospace Daily and Defense Report, 4 June 2013, via Factiva.)

DRDO to step up development of unmanned aerial vehicles After the Comptroller and Auditor General’s (CAG) slamming of the DRDO last month for matters relating to delays in its projects due to procedural lapses in obtaining approvals for its new projects, DRDO has stepped up the development of certain Unmanned Aerial Vehicles (UAVs). The DRDO has an estimated INR700 billion worth projects on hand. After the development of Pilotless Target Aircraft Lakshya; UAV Nishant; Medium Altitude Long Endurance (MALE) UAV Rustom-I; and various mini and micro UAVs, the DRDO has stepped up the development of the MALE UAV-Rustom-II. According to the Ministry, Rustom-2 project was progressing as per schedule with active participation of users. Preliminary design reviews and most of the critical design reviews have been completed, and the first flight of Rustom-2 is scheduled in mid-2014.

(Source: “DRDO to step up development of unmanned aerial vehicles,”Business Line, 27 April 2013, via Factiva, (c) 2013 The Hindu Business Line.)

Defence Ministry puts on hold MDL-Pipavav JV In the wake of the recent allegations of non-compliance and favoritism, the MoD has put on hold a JV between Mazagon Dockyards and Pipavav shipyard for building warships for the Indian Navy. The MoD has formed a committee to look into the JV’s formation, price discovery mechanism and several other aspects of the tie up. This is the second time in the last couple of years that the JV has been put on hold by the Ministry amid complaints by rival private shipyards.

(Source: “Defence Ministry puts on hold MDL-Pipavav joint venture,” Press Trust of India, 29 April 2013, via Factiva.)

22 | Eye on Defence

India fears UN treaty may block arms importsA new UN treaty aimed at controlling the multibillion-dollar global trade in arms could negatively impact India’s efforts to buy military equipment from foreign vendors. The treaty has laid down rules and guidelines for trade in small arms, battle tanks, armored combat vehicles, large caliber artillery systems, fighter jets, attack helicopters, warships and missiles. Parties to the treaty are required to keep records of arm transfers and block shipments that are likely to violate international laws on human rights or go to supply terrorists and organized crime groups. Furthermore, they must annually report on arms transfers to the UN to foster greater transparency.

(Source: “India Fears U.N. Treaty May Block Arms Imports,” Dow Jones Global Equities News, 12 April 2013, via Factiva.)

Bhilai to be new UAV hub for anti-Maoist operationsNational Technical Research Organization (NTRO) is moving its UAVs Hyderabad to Bhilai, Chhattisgarh, as part of efforts to step up technological capabilities in the Maoist-hit areas. The UAVs, with synthetic aperture radars, are capable of seeing through foliage and clouds. They can detect movement of a big group of Naxals and prevent the kind of attack that happened in Bastar and involved the death of Congress leaders. The government would also soon be sanctioning approval to NTRO to set up more UAV bases in the Naxalite-affected central Indian region. The government is expected to bring all strategic UAVs under a single operational command-and-control.

(Source: “Bhilai to be new UAV hub for anti-Maoist operations,” The Times of India, 1 June 2013, via Factiva.)

Tejas set to get clearance by end 2014India’s indigenously developed light combat aircraft (LCA) Tejas is slated to get the final operational clearance by the end of next year. Tejas was first proposed in 1983 at a cost of INR5.6 billion to replace the Indian Air Force’s aging MiG-21s. Aircraft development has suffered huge cost overruns and technical hurdles. The use of locally developed Kaveri engine in the LCA was dropped after 24 years and US$600 million investment.

(Source: Amrita Nair-Ghaswalla, “Tejas set to get clearance by 2014-end,” Business Line (The Hindu), 6 June 2013, via Factiva.)

Indian Air Force to get Apache attack helicopters The MoD rejected the Army’s proposal to acquire 22 heavy-duty Apache helicopters, armed with Hellfire and Stinger missiles, from the US in a US$1.4-billion contract. The MoD, citing Defense Minister A K Antony’s approval, has held that the 22 AH-64 D Apache Longbow gunships will remain with the IAF because the procurement deal was an ongoing one, which did not fall into category of future acquisitions. The Minister had earlier decided that future procurement of attack helicopters would be for the Army, since it made an urgent case to safeguard from enemy infantry and tanks.

(Source: Rajat Pandit, “Indian Air Force, not Army, will get Apache attack helicopters: Government,” The Economic Times, via Factiva, © 2013 The Times of India group.)

India shows interest in the Bell-Boeing V-22 Osprey The Indian Air Force has shown interest in the Bell- Boeing V-22 Osprey as a potential carrier-borne AEW&C platform. The IAF has asked for briefings on the aircraft for combat search and rescue (CSAR) and Special Forces roles. Indian forces have raised specific queries about the V-22’s ability to fly to the country’s island territories in the Bay of Bengal and Arabian Sea and its unfueled range. The US Marine Corps uses the V-22 for combat assault, amphibious assault and sustained land operations, while the US Air Force CV-22 is used for long-range special operations and contingency operations.

(Source:” Indian interest in V-22 Osprey intensifies,” SP’s Aviation, 28 March 2013, via Factiva, © 2013 SP Guide Publications Pvt. Ltd.)

23Eye on Defence |

Scorpene project set to be delayed furtherAccording to a new assessment, the Scorpene submarine building program, being developed at defense shipyard Mazagon Dock Limited (MDL), is set to be delayed by another 18 months. Over the years, the project has run into a number of delays. The first submarine, expected to be delivered by end 2012, will now be ready for induction only by end 2016. Recently, consultants from Navantia, the Spanish shipbuilding firm, left the venture, as the pact between Navantia and DCNS, the French partner in the consortium, expired on March 31. DCNS is planning to demand additional technical assistance fee, which could result in additional costs and further delays.

(Source: “Scorpene project set to be delayed further,” Financial Express, 10 May 2013, via Factiva, © 2013 Indian Express Online Media Pvt. Ltd.)

No separate HAL contract in Dassault dealDassault did not want to be held responsible for the 108 aircraft to be manufactured by HAL and had raised doubts over the latter’s capability to manufacture Rafale aircraft in India. Dassault Aviation agreed to not insist on a separate contract with the Indian aircraft manufacturer, HAL, following the intervention of the French Government. However, the MoD, flashed the RFP, stating that the vendor will be solely responsible for all of the 126 medium multi-role aircraft (MMRCA). India will buy 18 aircraft off the shelf, and the remaining 108 will be integrated by HAL under the transfer of the technology pact.

(Source: “No separate HAL contract in Dassault deal,” The Pioneer, 9 April 2013, via Factiva, © 2013. CMYK Printech Ltd.)

HAL streaming procurement process, especially importsHAL is streamlining its procurement process through adopting the best global practices, especially on imports. The company introduced a Grievance Redressal Mechanism where bidders aggrieved by any decision could approach Grievance Redressal Committee at the divisional and complex levels. The company reviewed its purchase procedures. It revised its purchase manual and introduced an online bill tracking system.

(Source: “HAL streamling procurement process, especially imports: Tyagi,” UNI (United News of India), 1 June 2013, via Factiva.)

HAL-Russia to jointly develop helicopters for VIPsHAL, in partnership with Russia, will manufacture aircraft for VIPs and top government officials to be operated in high-altitudes regions such as Ladakh and Leh. The helicopters are in the 10-12 ton category and will be used in the service of VIP officials such as the President and the Prime Minister.

(Source: “HAL- Russia to jointly develop helicopters for VIPs,” India Public Sector News, 22 May 2013, via Factiva, © 2013 Contify.com)

HAL opens software radio system in HyderabadHAL set up a software-defined radio system at its strategic electronic research design center in Hyderabad. The indigenously developed system (Softnet) will be deployed for airborne communication and net centric warfare. The system is based on open architecture, with configurable software waveforms in L band and V/UHF band, and was developed with legacy waveforms.

(Source: “HAL opens software radio system in Hyderabad,” Indo-Asian News Service, 30 May 2013, via Factiva.)

24 | Eye on Defence

Wipro Infrastructure Engineering expects 25% revenues from aerospace, defenseWipro Infrastructure Engineering is targeting generating 25% its revenues from the aerospace and defense sector. It recently entered a partnership with Compania Espanola De Sistemas Aeronauticos (CESA), a subsidiary of European Aeronautic Defence and Space Co. The offset program is expected to help in the outsourcing of hydraulic components, since India has a strong base. Wipro Infrastructure Engineering, with revenue of about INR17 billion, is one of the largest independent manufacturers of hydraulic cylinders and pumps used in construction and mining equipment.

(Source: “Wipro Infrastructure Engineering expects 25% revenues from aerospace, defence,” The Economic Times, 30 March 2013, via Factiva, © The Times of India Group)

Government defers deal to buy 197 helicopters for the ArmyThe government has deferred a deal to buy 197 light utility helicopters to replace the aging Cheetah and Chetak fleet of the Army pending an investigation into kickback allegations. The order was expected to cost close to INR30 billion.

(Source: Amrita Nair-Ghaswalla, “Govt defers deal to buy 197 helicopters for the Army,” Business Line (The Hindu), 4 April 2013, via Factiva)

HAL turns focus on civil aircraftHAL formally revealed plans to manufacture civil transport aircraft through partnerships with suitable Indian and foreign partners. The B.K. Chaturvedi Committee on restructuring HAL had recommended that HAL should focus on the civil aviation segment through a new subsidiary. Its own product, the Dhruv Advanced Light Helicopter (ALH), is positioned for civil use.

(Source: “HAL turns focus on civil aircraft,” The Hindu, 2 April 2013, via Factiva, ©2013 Kasturi & Sons Ltd.)

DOD eyes deal with India to test algorithms to control small UAV swarmsThe Pentagon plans to sign a deal with India to develop and test algorithms to autonomously control swarms of small unmanned aerial vehicles. Swarming includes the cooperation of small UAVs with different mission sensor characteristics and associated flight mechanics to achieve a defined mission. The US and India will each contribute US$630,000 to the US$1.26-million project and split the benefits.

(Source: “DOD eyes deal with India to test algorithms to control small UAV swarms,” Inside the Air Force, 24 May 2013, via Factiva, © 2013 Inside Washington Publishers)

25Eye on Defence |

Sources

1. Anindya Upadhyay, “US aircraft maker Textron eyes India’s defence space,” The Economic Times, 6 April 2013, via Factiva, © The Times of India Group.

2. “India : Indian MoD issues RFP for 56 light transport planes,” Mena Report, 11 May 2013, via Factiva, © 2013 Al Bawaba.

3. “In big-ticket purchases, IAF to close deals worth $25 billion this fiscal,” Financial Express, 7 June 2013, via Factiva, © 2013 Indian Express Online Media Pvt. Ltd.

4. “India to Spend $1.5 Billion to Upgrade Army Vehicles,” The Wall Street Journal Online, 6 May 2013, via Factiva, © 2013 Dow Jones & Company.

5. “India, Boeing continue talks over $1.03 billion helicopter deals,” Dow Jones Global News Select, 8 May 2013, via Factiva.

6. “Pilatus plans airframe making unit in India,” The Hindu, 1 June 2013, via Factiva, © 2013 Kasturi & Sons Ltd.

7. “Govt issues Rs 12k cr tender for 56 new fighter aircraft,” Free Press Journal, 10 May 2013, via Factiva, © 2013 Indian National Press Bombay Ltd.

8. Sruthijith KK, “Army trucks: Ashok Leyland-L&T consortium emerges lowest bidder for Rs 100-cr contract,” The Economic Times, 7 April 2013, via Factiva, © 2013 The Times of India Group.

9. Rajat Pandit, “Govt approves steps to fight Army’s night-blindness in mechanized forces,” The Times of India, 3 April 2013, via Factiva.

10. “New aerospace manufacturing unit,” DNA - Daily News & Analysis, 16 March 2013, via Factiva, © 2013 Diligent Media Corporation Ltd.

11. “TTS wins contract for transfer system in Mumbai, India,” ENP Newswire, 5 April 2013, via Factiva.

12. “SAAB invests SEK250m in Indian company Pipavav,” M2 EquityBites, 28 May 2013, via Factiva, © 2013, M2 Communications.

13. Chitra Unnithan, “City firm to supply parts for range of aircraft and UAVs,” The Times of India - Ahmedabad Edition, via Factiva, © 2013. Bennett, Coleman & Co., Ltd.

14. “ALL-L&T alliance frontrunner to bag Rs 100 crore army contract,” Commercial Vehicle, 11 May 2013, via Factiva, © 2013 Next Gen Publishing.

15. “Indian Navy to induct Boeing P-8I this year,” Press Trust of India, 11 May 2013, via Factiva.

16. “Indian Army pushes for modern weaponry to boost mountain warfare capabilities,” BBC Monitoring South Asia, 8 May 2013, via Factiva, © 2013 The British Broadcasting Corporation.

17. “Army to procure artillery howitzers,” The Statesman, 7 May 2013, via Factiva.

18. “Navy set to receive eye in sky from Boeing,” Deccan Herald, 4 May 2013, via Factiva, © 2013. The Printers (Mysore) Private Ltd.

19. “India plans new cryo engine facility,” Aerospace Daily & Defense Report, 2 May 2013, via Factiva, © 2013 McGraw-Hill, Inc.

20. “BEL to produce parts for Boeing,” Electronics Bazaar, 1 May 2013, via Factiva, © 2013. EFY Enterprises Pvt. Ltd

21. “CRPF to purchase high-end defence gear to take on Naxals,” Press Trust of India, 17 April 2013, via Factiva.

22. “IAF to buy 37 more basic trainer aircraft,” UNNIND, 16 April 2013, via Factiva, © 2013. United News Of India.

26 | Eye on Defence

23. Jay Menon, “India’s BEL teams with U.S. company on aerostat,” Aerospace Daily & Defense Report, 15 March 2013, via Factiva, © 2013 McGraw-Hill, Inc.

24. “BAE Systems for new aerospace projects with HAL,” Indo-Asian News Service, 26 March 2013, via Factiva.

25. “BAE, HAL partnership to continue,” DNA - Daily News & Analysis, 27 March 2013, via Factiva, © 2013 Diligent Media Corporation Ltd.

26. Amrita Nair-Ghaswall, “Piramal Systems, US defence tech firm in talks for joint venture,” Business Line (The Hindu), 8 June 2013, via Factiva.

27. “Israel set to bag 15k cr defence deal,” The Times of India - Mumbai Edition, 11 April 2013, via Factiva, © 2013. Bennett, Coleman & Co., Ltd.

28. “India Stands Committed to Enhance Defence Co-operation with Maldivies: Antony,” Press Information Bureau website, 16 April 2013, http://pib.nic.in/newsite/AdvSearch.aspx, accessed 6 June 2013.

29. “India offers Thailand collaboration in defence production,” Press Information Bureau website, 06 June 2013, http://pib.nic.in/newsite/erelease.aspx?relid=96449, accessed 15 June 2013.

30. “India and Australia to hold defence talks today,” Press Information Bureau website, http://pib.nic.in/newsite/AdvSearch.aspx, 05 June 2013, accessed 15 June 2013.

31. “India planning to tie up Russia in naval ship-building field,” Press Trust of India, 25 March 2013, via Factiva.

27Eye on Defence |

Ernst & Young LLPEY | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/india.

Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata - 700016

© 2013 Ernst & Young LLP. Published in India. All Rights Reserved.

EYIN1307-046 ED None

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

Ahmedabad2nd floor, Shivalik IshaanNear. C.N Vidhyalaya AmbawadiAhmedabad-380 015 Tel: +91 79 6608 3800Fax: +91 79 6608 3900

Bengaluru12th & 13th floor “U B City” Canberra Block No.24, Vittal Mallya Road Bengaluru-560 001 Tel: +91 80 4027 5000 +91 80 6727 5000Fax: +91 80 2210 6000 (12th floor)Fax: +91 80 2224 0695 (13th floor)

1st Floor, Prestige Emerald No.4, Madras Bank Road Lavelle Road Junction Bengaluru-560 001 India Tel: +91 80 6727 5000 Fax: +91 80 2222 4112

Chandigarh1st Floor SCO: 166-167Sector 9-C, Madhya MargChandigarh-160 009 Tel: +91 172 671 7800Fax: +91 172 671 7888

ChennaiTidel Park 6th & 7th Floor A Block (Module 601,701-702)No.4, Rajiv Gandhi Salai Taramani Chennai-600 113Tel: +91 44 6654 8100Fax: +91 44 2254 0120

HyderabadOval Office 18, iLabs CentreHitech City, MadhapurHyderabad - 500 081Tel: +91 40 6736 2000Fax: +91 40 6736 2200

Kochi9th Floor “ABAD Nucleus”NH-49, Maradu POKochi - 682 304 Tel: +91 484 304 4000Fax: +91 484 270 5393

Kolkata22, Camac Street 3rd Floor, Block C” Kolkata-700 016 Tel: +91 33 6615 3400 Fax: +91 33 2281 7750

Mumbai14th Floor, The Ruby29 Senapati Bapat MargDadar (west)Mumbai-400 028, IndiaTel: +91 22 6192 0000Fax: +91 22 6192 1000

5th Floor Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai-400 063, IndiaTel: +91 22 6192 0000 Fax: +91 22 6192 3000

NCRGolf View Corporate Tower – BNear DLF Golf Course Sector 42Gurgaon–122 002Tel: +91 124 464 4000Fax: +91 124 464 4050

6th floor, HT House18-20 Kasturba Gandhi MargNew Delhi-110 001Tel: +91 11 4363 3000Fax: +91 11 4363 3200

4th & 5th Floor, Plot No 2BTower 2, Sector 126Noida-201 304Gautam Budh Nagar, U.P. IndiaTel: +91 120 671 7000Fax: +91 120 671 7171

PuneC—401, 4th floorPanchshil Tech ParkYerwada (Near Don Bosco School)Pune-411 006Tel: +91 20 6603 6000Fax: +91 20 6601 5900

Offices

For more information , please contact:

K. Ganesh RajPartner and LeaderAerospace and Defence PracticeErnst & Young Pvt. Ltd.Tel: + 91 120 671 7110Email: ganesh.raj@in.ey.com

Ankur GuptaManagerAerospace & Defence, IICErnst & Young Pvt. Ltd.Mob: + 91 98119 10666Email: ankur4.gupta@in.ey.com

Scan this QR Code for more or visit www.ey.com/in

To download your free QR code scanner, visit your smartphone’s app-store

Available on