tag:blogger.com,1999:blog-1642400799681726872024-08-28T06:22:32.811-07:00Platform for economic discussion on defence industry, arms procurement and military spendingLAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.comBlogger36125tag:blogger.com,1999:blog-164240079968172687.post-91295732817990213792011-11-23T08:56:00.000-08:002011-11-23T08:56:14.890-08:00

The recent Pentagon report on US-India Security Cooperation which indicates the possible sale of the F-35 Joint Strike Fighter to India has created a hubbub in the media. Some have even gone to the extent of suggesting that New Delhi should scrap its ongoing, half-a-decade, effort to procure 126 Medium Multi-Role Combat Aircraft from European countries and instead buy the F-35, the only fifth

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-39808558695038694232010-06-25T21:09:00.000-07:002010-06-25T21:27:04.604-07:00

Rs 15,000 crore Sukhoi deal clearedJosy Joseph, The Times of India, June 26, 2010 The Cabinet Committee on Security earlier this month quietly cleared one of the biggest defence orders of recent times. The almost Rs 15,000 crore order for an additional 42 Sukhoi-30 MKI fighters would add up the total number of these modern Russian fighters for Indian Air Force to 272. When the entire Sukhoi-30

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-33262994377529699292010-04-04T21:17:00.000-07:002010-04-03T21:18:41.537-07:00

• India launches third indigenous destroyer, INS Chennai April 01, 2010India launched its third destroyer, INS Chennai at Mazgoan Docks Ltd (MDL). The 130-meter long indigenously designed warship, to be constructed under the code name Project 15-Alpha, will be inducted into Navy in August 2013. The advanced ship will have stealth features and will be armed with supersonic BrahMos

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com1tag:blogger.com,1999:blog-164240079968172687.post-27239234751396711742010-03-28T21:21:00.000-07:002010-04-03T21:24:52.982-07:00

• L&T to build 36 boats for Coast Guard March 22, 2010Reports noted that India’s leading technology, engineering, construction and manufacturing company, Larsen and Turbo (L&T) has bagged an order worth 970 crore from the Ministry of Defence for supply 36 high speed interceptor boats to the Coast Guard. The boats are to be designed by the company’s own design centre and constructed at its

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-77799249113760094022010-03-27T09:07:00.000-07:002010-03-27T09:16:35.370-07:00

World Politics Review, March 26, 2010Laxman Kumar BeheraRecently, both China and India increased their official defense budgets for fiscal year 2010, to $78 billion and $32 billion, respectively (although according to Western observers, China's actual military spending is up to three times the official figures). In doing so, Beijing raised its defense allocation by 7.5 percent, and New Delhi by

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-44440177473916554712010-03-21T09:27:00.000-07:002010-03-27T09:31:44.188-07:00

India signs final agreement with Russia for Nerpa submarine March 17, 2010Reports noted that India and Russia have signed the ‘final lease and training agreement’ for Nerpa K-152 (Akula-II class) nuclear submarine during Prime Minister Vladmir Putin’s recent visit to New Delhi. Under the agreement, New Delhi will send a 50-member crew to Russia for training, following which the over 12, 000

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-75677568084198342422010-03-07T10:41:00.000-08:002010-03-13T10:43:47.788-08:00

• Private sector sidelined in RS. 10,000 cr TCS project Reports noted that Ministry of Defence (MoD) is “abandoning competitive” bid to award a 10,000 crore contract to develop Tactical Communication System (TCS) for the Army. The move could sideline six private sector companies - Wipro, Mahindra Defence Systems, Tata Power, L&T, Rolta and HCL – who were vetted by the Ministry to participate

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-362026805460753852010-03-03T04:04:00.000-08:002010-03-03T04:05:09.866-08:00

The Union Budget 2010-11 has raised the defence outlays to Rs. 1,47,344 crore (US $31.9 billion). This represents a growth rate of a mere 3.98 per cent, in nominal terms (or 0.3 per cent in real terms) over the previous years’ allocation of Rs. 1,41,703 crore, and far below the 34 per cent nominal increase witnessed in the budget for 2009-10. The sudden dip in the defence budget’s growth rate

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-23679782041077611752010-02-21T23:21:00.000-08:002010-02-23T07:25:22.803-08:00

• Defence Offsets worth Rs.49,000 crores to be finalised in next couple of yearsFebruary 16, 2010India will finalise defence offsets worth Rs. 49, 000 crores in next few years, said India’s Minister of State for Defence, Pallam Raju. In a speech delivered in a conference organised by the PHD Chamber at DefExpo–2010, the Minister Said: “There are 41 offset contact worth more than Rs. 49000 crores

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-27934350095581498942010-02-14T23:18:00.000-08:002010-02-22T23:20:31.210-08:00

• India releases three joint military operational doctrinesFebruary 09, 2010General Deepak Kapoor, Chief of the Army Staff (COAS), and the Chairman, Chiefs of Staff Committee released three joint operational doctrines: Joint Doctrine for Sub Conventional Operations, Joint Doctrine for Electronic Warfare and Joint doctrine for Maritime Air Operations. “Since wars would be fought not only in air,

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-15363117755202985102010-02-07T23:14:00.000-08:002010-02-22T23:16:25.095-08:00

• L&T, EADS revive defence JV planFebruary 05, 2010Reports noted that India’s Larsen & Toubro (L&T) and Franco-German aerospace and defence group, EADS, are reworking on their defence JV plan after the said plan failed to get clearance earlier from the Government on the ground of non-conformity with the FDI policy. As per the revived plan, L&T will hold 74 per cent of the proposed

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-87553252849523783192010-01-31T23:12:00.000-08:002010-02-22T23:17:32.850-08:00

• India to buy 29 more MiG-29KsJanuary 18, 2010Reports noted that India is planning to sign a $1.2 billion deal with Russia to buy 29 more MiG-29Ks. The Cabinet Committee on Security (CCS), chaired by the PM, has approved the said proposal. These planes are in addition to 16 jets that Indian has already ordered along with Gorshkov aircraft carrier in 2004 in a 1.5 billion contract. These planes

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-77306709193068331012010-01-17T23:10:00.000-08:002010-02-22T23:12:12.430-08:00

• Astra test-fired successfullyJanuary 12, 2010India’s Defence Research and Development Organisation (DRDO) successfully conducted two back to back test of the indigenously developed Astra missile. The test which was conducted from ground based launcher follows DRDO’s earlier captive flight trials on Sukhoi-30 MKI. The integrated test of the missile is expected within a year. Astra is a beyond

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-16805641906746338172010-01-10T23:06:00.000-08:002010-02-22T23:09:24.301-08:00

• India to contribute 25% to fifth generation fighter aircraft January 06, 2010Reports noted that Hindustan Aeronautics Ltd (HAL), the biggest Defence Public Sector Undertaking under the Ministry of Defence (MoD), has negotiated for a 25 per cent work share in the design and development of Fifth Generation Fighter Aircraft (FGFA) with the Sukhoi Corporation of Russia. HAL’s work will include ‘

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-5847244726872303682010-01-03T23:00:00.000-08:002010-02-22T23:05:51.039-08:00

Defence expenditure review committee submits report December 29, 2009Reports noted that the Defence Expenditure Review Committee (DERC), a high powered group set up by the Ministry of Defence under the Chairmanship of VK Misra, former Secretary (Defence Finance) has submitted its report. The report, although yet to be made public, has made a number of suggestions. It has recommended to increase

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-62969498744114879942009-12-27T04:24:00.000-08:002009-12-29T04:29:16.080-08:00

Home Ministry unveils draft policy on Arms and Ammunitions December 21, 2009 The Ministry of Home Affairs (MHA) has unveiled a draft policy for regulating production and supply of arms and ammunition in the private sector. The policy, which supports the existing norm for production in private sector, stipulates certain conditions with a view to ‘prevent diversion to unauthorised hands.’ Under

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-43477896855742910562009-12-23T21:38:00.000-08:002009-12-27T21:44:07.654-08:00

On December 15, India’s Mahindra Group, a US $6.6 billion dollar industrial conglomerate, simultaneously acquired majority stakes in two Australian defence companies, Aerostaff Australia and Gippsland Aeronautics, signalling its entry into the defence and aerospace business. The acquisition, valued at nearly Rs. 1.75 billion, follows Mahindra Defence Systems’ (a Speciality Business entity of the

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-37268223373889903712009-12-20T08:47:00.000-08:002009-12-29T04:35:23.988-08:00

NATIONAL Offsets rise past Rs. 8900 Cr December 14, 2009 In a written reply in the Lok Sabha, Defence Minister Shri AK Antony informed that about 10 offset contracts have been signed so far under the provision of Defence Procurement Procedure (DPP). The companies with whom the offset contracts have been signed include Rosoboronexport Russia, RAC MiG Russia, Fincantieri Italy, Lockheed Martin USA

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-84956725804782961112009-12-13T01:15:00.000-08:002009-12-14T03:41:42.854-08:00

NATIONAL Boeing places P-8I offset orders over $600 million on Indian companies December 07, 2009 Vivek Lall, India country head of Boeing Integrated Defense System told that his company has “started to place contracts worth over $600 million with Indian companies,” as part of offset obligations accruing from the P-8I contract. The said contract valued about $2.1 billion, was signed in

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-92099481244060217262009-12-06T04:15:00.000-08:002009-12-07T04:22:19.153-08:00

• Mahindra and BAE Systems to set up joint venture in India November 30, 2009 Post approval by the Department of Foreign Investment Promotion Board earlier this year, India’s Mahindra and Mahindra (M&M) and UK’s BAE systems have signed an agreement to set up a joint venture (JV) in India with an initial investment of $21.25 million spread over a three year period. The JV, owned 74 per cent

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-2847434243124848412009-11-30T05:01:00.000-08:002009-12-01T03:46:27.968-08:00

NATIONAL • Agni-II missile fails in night trial Reports noted that first ever night trial of the 2000 km plus, nuclear capable Agni-II missile failed to achieve desired results. The missile, fired at around 7.50 PM on November 23, from the Wheeler Island, off the Orissa coast, tumbled into the sea after a snag was developed just before the second stage separation. The lift off and the first

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-66490834530398670842009-11-22T10:01:00.000-08:002009-11-23T10:16:46.556-08:00

NATIONAL • Indian may buy an advanced aircraft carrier from Britain Reports noted that India has “lodged a firm expression of interest” to buy an advanced 65,000 tonne aircraft carrier worth £2 billion from the UK (see right for an artistic impression of the carrier under construction; source: Guardian). The BAE Systems of the UK, the second largest defence contractor in the world, is

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-3287424122480609242009-11-18T04:48:00.000-08:002009-11-23T10:10:51.584-08:00

NATIONAL • India to Purchase Upgraded Barak for $1.1 billion Reports noted that India has signed a $1.1 billion contract with Israel for an upgraded tactical air defence system, Barak-8 (see image right; Source: Press TV). The system, to be delivered by Israel Aerospace Industries Ltd (IAI) by 2017, is designed to shoot down incoming missiles, drones and planes. Although the system is

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-67308617474489800262009-11-17T22:30:00.000-08:002009-11-18T04:39:28.635-08:00

Starting from the second week of November2009, Defence Economics will carry a weekly report titled Weekly Defence News Review (WDNR). The report, which would be publisded at the end of every week, is intended to provide the followers of the blog a brief anlaysis of major news happeining around them. Comments from followers regarding the new initiative are most welcome.

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0tag:blogger.com,1999:blog-164240079968172687.post-80724106398461771712009-11-14T23:05:00.000-08:002009-11-18T04:58:41.353-08:00

The major highlight of recent amendments to the Defence Procurement Procedure 2008 (DPP 2008) is that of encouraging the domestic industry to actively participate in defence production. The encouragement assumes greater importance considering the “shameful and dangerous” aspect of India’s self-reliance in defence production. As a matter of fact, despite the 50 year-stated goal of achieving 70 per

LAXMAN KUMAR BEHERAhttp://www.blogger.com/profile/17582289979562905900noreply@blogger.com0