The Request for Proposal (RFP) for the 16 MRH worth $1 billion was issued in August 2008 and since the commercial bids are valid for two years only, they stand expired. The Indian Defence Ministry now intends to request the firms to revise their offers. While the technical evaluation has been wrapped up, Indian Navy is yet to pursue the Flight Evaluation Trials for the two contenders.

The two contenders for the MRH for the Indian Navy are the US firm Sikorsky’s S-70B Sea Hawk and British-Italian Agusta Westland’s NH-90 helicopters. Once the contract is decided and awarded, the Indian Navy would get the delivery of the MRH within 46 months in three phases and the RFP provides an option of placing follow-on orders for another 44 helicopters.

The MRH aims to replace the ageing fleet of Sea King choppers with the Indian Navy. The MRH’s main role would be anti-submarine warfare and anti-surface warfare while its other role would include anti-ship surveillance and targeting, search and rescue, cargo carrying and casualty evacuation. The MRH will be equipped for in-flight refuelling and will coordinate logistics missions from naval vessels.

While the US firm Sikorsky is offering the S-70B Seahawk as a commercial direct sale, there is another option for India which is the MH-60R chopper as a Foreign Military Sale (FMS) under the U.S. Defence Security Cooperation Agency (DSCA). The American Department of Defence has offered the US Navy’s workhorse MH-60R, which is a Sikorsky platform with American systems and sensors, through the FMS route.

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As per the deal, India will acquire 24 Harpoon Block- II anti-ship missiles which will equip the Jaguar fighters with the Indian Air Force (IAF). The deal is worth $170 million and will be conducted as a direct deal between the Indian and US government.

According to sources, US major Boeing will be the prime contractor in the deal. The addition of Harpoon Block- II anti-ship missiles will give the IAF the much-needed edge in its maritime warfare capability. The Harpoon Block II is the advanced version of the subsonic missile capable of striking land-based targets and ships. The Harpoon is an all-weather, over the horizon, anti-ship missile which can be launched from surface ships, submarines and aircraft.

The current fleet of Jaguar maritime strike variant fighters with the IAF have been upgraded over the years with IAI Elta’s EL/M-2032 radar and improved electronic defence systems. At present, the Jaguars are limited to carrying the vintage Sea Eagle missiles and their land attack capabilities have not kept pace, either. The addition of the Block II Harpoons, with their dual sea-land attack capabilities, will make the Jaguar IM fleet a robust maritime threat.

India has acquired a wide array of military equipment from the US in the recent past. The most expensive Indo-American defence deal till now is worth around $3.5 billion for 10 C-17 Globemaster-III giant strategic airlift aircraft. This deal is about to be finalised. Last year, the $2.1 billion contract for eight Boeing P-8I long-range maritime reconnaissance aircraft was finalised. Other deals in the past include the $962 million deal for six C-130J `Super Hercules’ planes in 2007.

Apparently, most of the Indo-US deals are direct government-to-government deals or FMS route wherein there are no global tenders floated. The upsurge in the Indo-US military deals has made the traditional allies of India like Russia and Israel a bit concerned. The US is also trying to sell Lockheed Martin F-16IN Super Viper and Boeing F-18 Super Hornet combat aircraft to the IAF besides the CH-47F Chinook and Apache Longbow AH 64D helicopters.

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As per the deal, India will acquire 24 Harpoon Block- II anti-ship missiles which will equip the Jaguar fighters within the Indian Air Force (IAF). The deal is worth $ 170 million and will be conducted as a direct deal between the Indian and US governments.

According to sources, US major Boeing will be the prime contractor in the deal.

The addition of Harpoon Block- II anti-ship missiles will give the IAF the much-needed edge in its maritime warfare capability. The Harpoon Block -II is the advanced version of the subsonic missile capable of striking land-based targets and ships.

The Harpoon is an all-weather, over the horizon, anti-ship missile which can be launched from surface ships, submarines and aircraft.

The current fleet of Jaguar maritime strike variant fighters with the IAF have been upgraded over the years with IAI ELta’s EL/M-2032 radar and improved electronic defense systems.

At present, the Jaguars are limited to carrying the vintage Sea Eagle missiles and their land attack capabilities have not kept pace, either. The addition of the Block -II Harpoons, with their dual sea-land attack capabilities, will make the Jaguar IM fleet a robust maritime threat .

India has acquired a wide array of military equipment from the US in the recent past. The most expensive Indo-American defence deal till now is worth around $3.5 billion for 10 C-17 Globemaster-III giant strategic airlift aircraft. This deal is about to be finalized.

Last year, the $2.1 billion contract for eight Boeing P-8I long-range maritime reconnaissance aircraft was finalized. Other deals in the past include the $962 million deal for six C-130J `Super Hercules’ planes in 2007.

Apparently, most of the Indo-US deals are direct government-to-government deals or FMS route wherein there are no global tenders floated.

The upsurge in the Indo-US military deals has made traditional allies of India like Russia and Israel a bit concerned. The US is also trying to sell Lockheed Martin F-16IN Super Viper and Boeing F-18 Super Hornet combat aircraft to the IAF besides the CH-47F Chinook and Apache Longbow AH 64D helicopters.

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According to GSL officials, the first two phases of the project costing Rs.400 crore are at an advanced stage and are expected to be complete by this year end. The completion of the two phases will make GSL the first shipbuilding yard in the country to be equipped with a modern ship-lift facility for launching and docking of ships.

As for the remaining two phases of modernisation, it involves infrastructure for the Mine Counter Measure Vessel (MCMV) project of the Indian Navy. GSL is expecting this to progress as and when the Indian Navy finalises the MCMV project.

GSL has major plans up its sleeves including an upcoming shore-based training facility project at the INS Hansa, Goa. GSL will be working with the Aeronautical Development Agency, Bangalore and it will be the main integrator of this facility. Besides, GSL is also eyeing export markets for its entire range of products such as the damage control simulator, fast interceptor craft, patrol vessels and offshore patrol vessels. GSL has already made its presence felt in South Asia, Africa and the Gulf region.

In March this year, GSL had launched the indigenously designed and built ‘ICGS Vishwast’, the first of a new class of offshore patrol vessel (OPV). This was the only vessel of this class in the world. The ICGS Vishwast was primarily designed for patrolling and policing maritime zones, search and rescue operations, maritime surveillance, anti-smuggling operations, pollution response against oil spillage and external fire-fighting. GSL has also built the 105 M advanced offshore patrol vessel (AOPV) for the Coast Guard, the largest ever designed and constructed AOPV class of vessel in India.

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The Indian Defence Ministry will take the decision to shortlist the contenders only when the Offset Technical Committee’s report and the report on the field trials have been completed and submitted. Once the contenders receive the evaluation of the Offset technical Committee, the contenders for the MMRCA will give fresh offset proposals. After that, fresh recommendations will be sent to the Defence Ministry. Once the Cabinet Committee on Security gives the nod, negotiations between governments will begin.

Sources said that the six contenders are presently being invited to furnish their offset plans and the Indian Air Force (IAF) will meet different contenders to discuss flight evaluation reports once the field trials are complete. So far, the IAF has had a meeting with Lockheed Martin of US and Dassault of France. It may be noted that the IAF is considering “life-cycle costs” and not just the lowest bid for the MMRCA.

The contenders for the MMRCA contract are the F/A-18 ‘Super Hornet’ by Boeing, F-16 ‘Falcon’ by Lockheed Martin, Swedish ‘Gripen’ by Saab, ‘Rafale’ by French firm Dassault, the Russian MiG-35 by United Aircraft Corporation and Eurofighter Typhoon (consortium of British, German, Spanish and Italian companies). The MMRCA contract is worth almost $11 billion which entails acquisition of 18 jets to be bought off-the-shelf and the rest to be manufactured in India under transfer of technology.

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According to sources, two submarines that were to be built under the Project-75I by private shipbuilders will now be built at international shipyards. This move has been substantiated by the Indian Navy who feels that a constant delay in indigenous submarine production has caused lot of harm to the Indian Navy’s plans.

The initial plan of the Project 75I involved all the six submarines to be built in India. Three submarines were to be made by state-owned Mazagon Dock Limited (MDL), one by state-owned Hindustan Shipyard Limited (HSL) and Indian private sector shipyards Larsen & Toubro and Pipavav were to compete for building two submarines.

As of now, the Indian Navy has insisted that the first two submarines must be built abroad. Hence, the role of private shipyards has been erased from the picture. The Indian Navy feels that at least two new submarines will join the Indian Navy as it is already running short of submarines.

This decision to sideline the private sector will severely affect the morale of major players like Larsen & Toubro who have invested large capital in shipyards with a view to help the Indian navy and its submarine building programme.

In fact, it has been argued that state-owned MDL has got its hands full and is already running 30 months late in delivering the first of six Scorpene submarines that it was contracted to build under Project 75. Instead of opting for the private shipyard, MDL has been given an additional order to build another three submarines.

However, the Indian defence Ministry has made an elaborate plan for the Mazagon shipyard for simultaneously executing the Scorpene order (Project 75) and the three additional submarines, which are a part of the six-submarine Project 75I order.

According to the Indian Defence Minister A.K.Anthony, Project 75 would complete work by the second half of 2018. However, Project 75I can begin as early as 2012 since by then, all six Scorpene hulls will be fully built and the specialised hull workers and welders of MDL could begin fabricating hulls for Project 75I.

According to Defence Ministry officials, the delay in Scorpene submarines will be minimised to less than 18 months. The original plan was for the first Scorpene to be delivered in December 2012 and the other five submarines at one-year intervals till December 2017. While the first Scorpene will only be ready in August 2015, MDL will deliver the others at nine-month intervals and finish the last Scorpene by May 2019.

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The highlights in the procurement policy include focus on crucial technologies, increased research and development and a helpful taxation regime. As for the production policy, it aims to involve public and private firms to produce defence equipment.

The Indian Defence Ministry has been aiming to modernise its public sector undertakings and the Ordnance Factory Board (OFB) and trying to reduce the delays in the procurement of defence equipment. The new procurement and production policies will facilitate these aims and they are currently being reviewed by the Defence Acquisition Council (DAC) and are awaiting clearance.

The Defence Production Policy is being introduced for the first time and its main aim is to increase indigenous capabilities to manufacture the requirement of defence equipment by the Indian Armed Forces. This new Production policy mandates that weaponry and military systems will be identified several years into the future to enable local companies to develop and manufacture them in time. The identified systems will be allocated to specific domestic defence companies as development projects. Sources said that the ministry will lay down clear time targets and provide 80 per cent of the incurred cost.

As for the DPP-2010, it will be an improved version of DPP-2009 and will facilitate greater involvement of the private sector in defence production. The DPP must also ensure that the domestic defence market offers great opportunity for formation of joint ventures and direct sourcing by the global players.

Sources also indicated that under the new policy, local firms will be encouraged to register their technological capabilities in an Indian Defence Ministry databank. Therefore, when need be, the Indian Defence ministry can survey and identify at least two major companies and assign them with the development contracts.

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The DRDO has indicated that the Full Authority Kaveri Digital engine Control System (KADECS) has been designed and developed and all major engine sub-assemblies have been tested for aerodynamic performance and structural integrity. Besides, a host of critical technologies in the fields of instrumentation/measurement, health monitoring and data acquisition have also been developed. The DRDO elaborated that an adequate manufacturing technology base has been established. The DRDO has also developed twelve materials including Titanium, Steel and super alloys and they have been certified.

The DRDO also indicated that the ‘Kaveri’ engine has been integrated with the IL-76 aircraft at Gromov Flight Research Institute (GFRI), Moscow for ground and flight test which is expected to complete by October 2010.  Besides, a successful test was carried out in February this year under simulated altitude and forward speed conditions of the engine.

The delay in the “Kaveri” engine production started with the non-availability of critical material, lack of manufacturing infrastructure for critical components and lack of infrastructure of engine testing and component / system level testing within the country. Also, due to the Minimum Order Quantity (MOQ), foreign manufacturing agencies were not forthcoming.

Defence Minister A.K.Anthony has already indicated that the Kaveri engine being developed by the DRDO requires to be optimised for lower weight and higher performance so that it can be used for LCA ‘Tejas’ and possibly for India’s next generation combat aircraft.

About 1880 hours on engine test has been completed on various prototypes of Kaveri Engine. A total of eight Kaveri Engines and four core engines have been manufactured, assembled and tested till mid-2010.

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According to DRDO officials, an estimated $21.5 million will be spent on this programme involving the creation of micro air vehicles in two phases. The MAV program’s first phase will be completed in three years and the second phase, which will focus on futuristic technologies, will take up the last two years. All in all, the NP-MICAV programme will meet its deadline of five years since a host of agencies, schools and scientists with enough expertise will be involved.

The DRDO along with DST will initiate over eighty projects to tap the emerging MAV field. Apparently, the breakup of the $21.5 million will be in terms of product development (40 per cent), research (18 per cent), emerging technologies (17 per cent), design and test facilities (8 per cent), training (6 per cent), futuristic technologies (8 per cent), foreign collaboration (2 per cent) and administrative support (1 per cent).

The major aim of the NP-MICAV programme is to put India up to the mark with global standards in this area of technology. The National Design and Research Forum [NDRF] will play the main role in the development. The emerging technology from the NP-MICAV will be useful for the paramilitary forces as well as non-military users. This project will also help in the evolution of activities regarding nano and micro air vehicles being carried out by the Special Interest Group on Micro Air Vehicles under the Aeronautics Research and Development Board.

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Elaborating on their plans, TCS revealed that they are aiming at contracts for Tactical Communications System and the Defence Communications Network. TCS is already working in tandem with the Indian government and the Armed Forces in programmes relating to the Network Centric Warfare Capability of the country.

The Tactical Communication System is a portable system which can remain mobile all through the war and can stay operational in enemy zone. Its functions include the provision of a support system to the military that will facilitate data communication and transfer operations. It will be a Communication Program linking the theatre and troops on the battlefield and is likely to be completed by 2012.

The primary difference between this system and a cellular phone network is that this system can be installed in high-mobility vehicles which will make them transportable and operational anywhere. The interception of these tactical communication systems is not easy since they keep switching frequencies.

As for the Defence Communications Network, this will be a dedicated optical fibre network, which would focus on the radio spectrum including voice signals in wireless devices. This is essential for the operation of the cellular mobile telephony.

It may be noted that a number of Indian private majors in the IT field like Larsen & Toubro as well as Wipro are aiming to grab these lucrative contracts. According to sources, the contract for Tactical Communications System will be worth around $450 million and Defence Communication Network will be around $180 million.

The Indian government has let the private sector down several times when it comes to sensitive defence projects. Earlier this year, after inviting private companies into the Rs 10,000 crore project for developing the Indian Army’s futuristic Tactical Communications System (TCS), the Defence Ministry abandoned competitive bidding and handed over the project to a defence public sector undertaking, Bharat Electronics Limited (BEL). The reason given was the critical and sensitive nature of the project and the secrecy needed for its security.

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