Saint Antony blesses Kerala with defence projects

Following the examples of former Union ministers Lalu Prasad Yadav and Mamata Banerjee, Defence Minister AK Antony is on a spree to set up defence projects in his home state Kerala as the election approaches. Antony is quietly turning Kerala into a defence hub. Nearly a dozen of defence projects are being set up in the state. 

Antony - India's longest continuing serving defence minister in the country is quietly turning Kerala into a defence hub with nearly a dozen defence projects being set up in the state. In contrast only two projects have been in the other states – Nalanda Ordnance Factory in Bihar (the decision for which was taken during George Fernandes term) and Indian National Defence University (INDU) in Gurgaon.

On Saturday, Antony inaugurated Hindustan Aeronautics Ltd’s Strategic Electronic Factory at Kasargod (Kerala) and Kerala Chief Minister Oommen Chandy inaugurated the production facilities at the same function.  This factory will produce advanced avionics for Aircraft and Helicopters.

According to sources, the factory – whose first phase will cost Rs. 66 crore – has been set up on the initiative of the Kerala Government. The state government allotted 196 acres of land for setting up the new unit. Presently the factory has taken up production of Airborne Special Purpose Computers like Mission computer, Display Processor, Radar Computers, Open Architect Mission computer etc. for Sukhoi SU-30, Light Combat Aircraft (LCA) and MiG-27 fighter jets’ upgrade have been taken up at this factory.

In the phase-II – when the investment is likely to go up to Rs. 200 crore - the factory will undertake manufacturing of avionics for the 126 Medium Multi Role Combat Aircraft (MMRCA) yet to be purchased by the Indian Air Force. “The expansion of this factory will also lead to growth of ancillary industries which in-turn will generate secondary employment opportunities and enhance skill-set in this area,” the HAL officials added. 

Two day earlier on November 15^th, the Defence Minister also inaugurated another complex for the integration of supersonic cruise missile BrahMos in Thiruvananthapuram – which already housed one integration facility. The new facility aims at doubling the production of the missiles with the IAF placing an order for 200 air version of the missiles worth Rs. 6,000 crore.

Antony had also lashed out at the Kerala Chief Minister Oommen Chandy during the inauguration of the BrahMos complex as the Defence Ministry cannot risk bringing new defence projects in the state due to infavourable industrial environment. Despite that the Defence Minister has managed to confer the most “favoured” state with seven major defence projects inaugurated in the state since the beginning of his term in 2006. The projects will definitely give him political mileage in the state.

Public sector undertaking Bharat Earth Movers Ltd (BEML) has set up its 4^th manufacturing unit at Palakkad. And the project is likely to entail an investment of Rs. 260 crore to manufacture Tatra vehicles and other military automobiles and was expected to create 200 jobs that would eventually go up to 1,000.

Another public sector major Bharat Electronic Limited (BEL) has set up third support centre at Kochi’s Infrastructure Development Corporation (KINFRA) after Mumbai and Visakhapattanam.

Antony, also a former Chief Minister of Kerala and an astute politician, had commissioned a Coast Guard Academy at Azhikkal in 2011 in the aftermath of the Mumbai terror attack for training the security force personnel. The academy is expected to train 500 cadets for search and rescue mission and respond to maritime contingencies. 

In January 2011 itself he sanctioned Rs. 600 crore National Institute for Research and Development in Ship Building (NIRDESH) at Kozhikode. NIRDESH envisages helping the indigenous ship-building industry. The Cochin Shipyard Ltd (CSL) also has some major warship construction orders – like the construction of the first indigenous aircraft carrier. 

The Indian Naval Academy at Ezhimala was also commissioned by Antony even though the project has been in limbo for the last 20 years.

Former defence minister KC Pant passes away

India’s former defence minister and deputy chairman of Planning Commission Krishna Chandra Pant passed away Delhi on Thursday morning at the age of 81.

Indian Defence Minister AK Antony expressed his “profound grief” at the demise of the ex-minister who held the command of the ministry during critical times like the deployment of the Indian troops in Sri Lanka and to preempt a coup attempt in Maldives. 

“Pant steered the Ministry at one of the most critical junctures of history as the Indian Peace Keeping Forces were deployed in Sri Lanka as a stepping stone to the tortuous journey for peace in the island nation.  The Indian troops were also deployed at short notice in Maldives to abort a coup attempt, in a clear manifestation of our commitment to the promotion of peace and stability in South Asian Region,” Antony said in his condolence message.

In his political career Pant was in 12 ministries and he was country’s defence minister form 1987-89, in the Rajiv Gandhi government.

Pant has been instrumental in key acquisitions for the armed forces as the British-built aircraft carrier HMS Hermes – rechristened as INS Viraat for the Indian Navy and MiG-29 fighter jets for the Indian Air Force.   

“Pant bolstered the Indian Armed Forces in a big way with the acquisition of the country’s flagship aircraft carrier INS Viraat and Mig-29 aircraft among many other acquisitions during his tenure as the Defence Minister.

“He was also instrumental in the setting up of the first Coast Guard Air Station at Daman. May his soul rest in peace,” Antony added.

New Su-30MKIs fighter bases in East, West, South

As the Indian Air Force (IAF) is gearing up to phase out its old warhorses the Soviet-vintage MiG-21s the agile and lethal Sukhoi Su-30MKIs are going to be its back bone – with a total of 17 squadrons to be deployed along side India’s border with Pakistan and China and also in the South to cover up the country’s southern flank up to Andaman and Nicobar Islands.

On the west the efforts to deploy these air dominance fighter jets at these bases are aimed at countering the US’ F-16s and Chinese JF-17 ‘Thunder’ jets Pakistan is procuring, and in the east the objective is to balance the massive development carried out by China in the Tibet Autonomous Region.

“Plans are in the offing to base these war birds at Bhuj (Gujarat), Sirsa (Haryana), Kalaikunda (West Bengal), Hashimara (in West Bengal) and Thanjavur in Tamil Nadu,” officials said. The strategic importance of the Indian Ocean Region (IOR) has compelled the IAF to bolster its capability in the region. Plans are in the offing to have a fighter jets in the Andaman and Nicobar archipelago, from where the Sukhois have operated in the past.

The new Sukhoi bases in Bhuj and Sirsa will be on the Western border and will be conducting strategic surveillance and reconnaissance in the region. On this side of the border the Sukhois are already based at Bhatinda and Halwara in Punjab and Jodhpur air base in Rajasthan.  On the Eastern side in Kalaikunda and Hashimara, the fighter jets will complement the Tejpur and Chabua fighter bases. Armed with Israeli reconnaissance pods, these fighter jets have the capability to look into the Chinese territory for good 300 kms.

At present the IAF has Su-30MKIs frontline fighter jets – that can be altered to drop a nuclear bomb – are based at Bareilly (Uttar Pradesh), in Tezpur (Assam), Halwara (Punjab), Pune (Lohegaon) and Jodhpur. The Sukhois were inducted into the IAF at Lohegaon air base in 2002 thereafter they were inducted at Bareilly followed by inductions at Tejpur, Chabua, Jodhpur, Bhatinda and Halwara.

“The Sukhoi fighter squadron at Bhuj and Sirsa shall be inducted by the end of this year. Kalaikunda and Hashimara will be ready by mid next year. Thanjavur is aimed to be operational by 2015,” officials added.

The IAF has contracted for 230 Sukhoi Su-30MKI fighter jets from Russia. Out of these 140 will be manufactured under license at the public sector major Hindustan Aeronautics Limited (HAL) in India. With the IAF needing to maintain minimum squadron strength in the face of the phasing out of MiG-21s and MiG-27s, the HAL has been asked to complete its present order by 2013-14.

Presently the last of the pilots’ batch is getting trained on MiG-21s Type 77 – the oldest of the MiG-21s that were the force’s mainstay in 1971 Indo-Pak War. They are scheduled to finish its syllabus by January 2014 paving the way for their retirement. Whereas the two squadrons of Type-96 MiG-21s will revert back to operational role from training and will continue to serve the force till 2015. The four squadrons of MiG-27s will be retired in a phased manner by 2016-17.

Cabinet approves 10 percent divestment in HAL

The Cabinet Committee on Economic Affairs on Thursday approved 10 percent equity divestment in the 70-year-old defence sector behemoth Hindustan Aeronautics Ltd (HAL) under a plant to mop up around Rs. 40,000 crore from the market for the modernization of the Navratna Company.

 

The government will be bringing an Initial Public Offer (IPO) in the domestic market as the company is still not listed. Five percent discount on the issue price will be allowed for retail investors as well as to eligible employees of HAL applying under the employees’ reservation portion. After the divestment of 10 percent, Government of India’s shareholding in the company would come down to 90 percent.

HAL is a Schedule – ‘A’, Navratna Central Public Sector Enterprise under the administrative control of the Ministry of Defence. It is engaged in the designing and development of Fixed Wing Aircraft, Rotary Wing Aircraft and their systems/accessories/avionics, manufacturing of Aircraft (Fighter, Trainers and Transport), Helicopter and associated aero engines, accessories and avionics for both military and civil applications.

 

It has been on the insistence of the finance minister to divest the profit making PSUs that the proposal has been approved. However, it will be a while before the shares of the 70-year-old PSU will be floated in the market. And the company is also planning to get listed in the stock exchange.

The present annual sales turnover of the company is around Rs. 13,000 crore. Its products track record consists of 11 types of Aircraft from in-house R&D and 14 types of license production inclusive of 8 types of Aero Engines and over 900 items of Aircraft System Equipment (Avionics, Mechanical, and Electrical). HAL has produced around 3400 aircraft, 3600 aero engines and overhauled around 8320 aircraft and 27800 engines by 2005-06 besides manufacture/overhaul of related accessories and avionics.

Even though the government was wary of diluting its control on the defence behemoth it has already carried out disinvestment in two defence PSUs - Bharat Electronics Ltd and Bharat Earth Movers Limited. Presently the government has 75 percent stake in BEL and 66 percent in BEML.

Obama to push for more defence deals with India in 2nd term

India on Wednesday congratulated Barack Obama for winning a second term in the White House hoping the economic and defence ties between the two countries will be furthered.

Obama has been instrumental in pushing through defence deals worth $10 billion with India in his first term creating thousands of jobs back home. Many of the defence deals with the US are still in offing.

Prime Minister Manmohan Singh also congratulated Obama – with whom he shares a special equation -for his re-election. “I have no doubt that there is much more we can do together to further strengthen the India-U.S. partnership and thereby advance peace and stability, expand mutual economic opportunities, harness the potential of science and technology, innovation and higher education and empower our people to address global challenges,” Singh said in his congratulatory message. 

Obama has also been pushing for better relations with India as was evident during his four day presidential tour – the longest overseas visit by him as President. Obama, who broke the racial ceiling for being the first Black elected President in the White House, also expressed his solidarity with India in countering terrorism.

As per keen watchers of the defence industry, there will be “renewed thrust” from Obama on signing of more defence deals with India to help the economic crises back home. The total defence trade between the two countries in last 10 years has been $ 10 billion and in 2011 only India has purchased military equipments worth more than $4.5 billion from the US. The big ticket deals signed with the US in the last five years been eight P-8I maritime surveillance and anti-submarine warfare aircraft from Boeing valuing $ 2.1 billion. India is also buying 10 C-17 heavy-lifters from Boeing for $4.1 billion. The six C-130 J special operations aircraft valuing $ 1.2 billion have already arrived in the country and order for six more is in the offing. India is also planning to place an order for M777 ultra light howitzers for $ 700 million to augment its firepower in the mountainous terrain.

The US firms have also emerged as the chosen one for supplying the attack helicopters and the heavy lift helicopters for the Indian Air Force.

In a gesture to reciprocate, the US also eased its US Export Controls and Technology security policies towards India and removed premier Defence Research and Development Organisation and Indian Space Research Organisation (ISRO) from the Commerce Department Entity List.

The US earlier this year unveiled a new military strategy for Asia-Pacific under the leadership of Obama giving a more pivotal role to India to counter the rise of China. The US has been all out trying to woo India by stepping up bilateral defence trade and cooperation. The US also underlined its commitment towards the modernization of the Indian Army.

With the US set to pull out its troops from strife-torn Afghanistan by 2014 end, it has been urging India to play a greater role in stabilizing the country. So far India’s involvement in Afghanistan has been limited to economic and soft skills development. The US is keen on New Delhi’s help in training Afghanistan police and Army.

Antony asks for focused defence spending

With sluggish economy putting in limbo its demand for additional funds, the Defence Ministry on Wednesday asked the three services to have a more “focused” approach towards acquisition especially towards the critical projects and plans that have a direct bearing on their “operational preparedness”.

 

 

Many of the modernization projects – artillery and fighter jets procurement – is moving at a snail pace and the huge capital expenditure earmarked for the current fiscal remains largely unspent. The projections made by Antony in his reply during budget session in Rajya Sabha were found to be way off the mark in the review, sources revealed. 

The delay in Indigenous Aircraft carrier (IAC), slow progress of border roads projects in Arunachal, highly unsatisfactory progress of ordinance factories and defence PSUs are said to be the main reasons for the state of present affairs in the defence expenditure, sources said. To set right the course and exhaust the 1,93,000 crores of defence budget, out which around Rs. 80,000 crores were allocated for modernization and acquisition projects, Antony has asked the officials to conducts series of separate review meetings about the projects and plans having direct linkages with the “operational preparedness”. 

Earlier, the MoD had projected an additional budgetary requirement of Rs. 50,000 crore for the year 2012-13. During the budget announcement itself, Antony had made it known that the amount was 15.5 percent less than the estimated requirement of the services. Antony announced that as per projections his ministry needed Rs. 2,39,123 crores in total and thus they will require an additional amount of Rs 45,716 crores.

“The budget estimates were given in accordance with the assessment of the new emerging threat perception from neighbouring countries and the forces required it to meet the new challenges. However, with the other ministries facing cut, the defence ministry is afraid that the inability to finish the defence budget would lead to a cut in the next budget,” sources said.

In the ongoing financial year, the Defence Ministry is expected to conclude the largest open tenders to buy 126 medium multi-role fighter aircraft at an estimated value of Rs. 48,000 crore along with scores of other multi-billion dollar tenders for artillery, helicopters and warships reaching final stages. However, majority of these projects have been delayed due to slow acquisition processes and the losing vendors trying to put spoke in the process by citing irregularities in the deal.

In comparison to the defence budget of Rs.1.70 lakh crore in 2011-12, this year Indian defence budget was 13.15 percent higher at Rs 1.93 lakh crore, out of which Rs. 79, 579 crore was to be spent on purchase of new weapons and platforms.  The hike though considerable as per the Indian standards will be no match to the country’s eastern neighbor. China’s increased budget has continued to cause concern in India. According to Pentagon’s South Asian Defence and Strategic Year Book China’s total military spending has increased by 189 percent between 2001 and 2010, an average annual increase of 12.5 percent. As per data, China is the second largest spender of defence after the US and India comes at position 9.

Indian Army once bitten twice shy after former Chief’s age controversy

Stung by the ugly age controversy of its former Chief General VK Singh the Indian Army has started issued fresh guidelines to avoid such row over the date of birth of their future officers.

In its latest recruitment advertisement the Indian Army has been running a caveat – the age mentioned in the form is final, no request for changes will be entertained.

The caveat was part of the Indian Army’s latest recruitment advertisement under the Technical Entry Scheme for Permanent Commission. While inviting the applications from the “unmarried male candidates” who have passed their 10+2 examination, the advertisement issued by the Army Recruitment Cell had conditions applied.

“Candidate should note only the date of birth as recorded in the Matriculation/Higher Secondary Examination Certificate or an equivalent certificate on the date of submission of applications will be accepted and no subsequent request for its chance will be considered or granted,” the advertisement said categorically. The advertisement had appeared in national newspapers on Saturday.

Last year, the 1.1 million-strong Indian Army was in the eye of storm over the confusion over the date of birth of its Chief – General VK Singh said his date of birth was May 10, 1951 whereas the Ministry of Defence maintained it was May 10, 1950 as mentioned in the Chief’s form filled for National Defence Academy (NDA) and later to Indian Military Academy (IMA).

Also the Adjutant General branch that keep the personal record of the officer and the Military Secretary branch that looks after promotion and postings will have more interaction here on to avoid discrepancy in their records. Both the departments had different date of birth of the former Army Chief.

The controversy of age that has been plaguing the Indian Army for over last one year has its roots in NDA. It was while filling up the form for this esteemed institution that one of the teachers of the then 14-year-old General – a third generation officer - wrongly filled his year of birth as 1950 instead of 1951. 

Thereafter the date of birth reflected in the Indian Military Academy's (IMA) form is also 1950, a fact contested by General Singh. However, the Defence Ministry had determined Army Chief's year of birth as reflected in his NDA and IMA form. 

The controversy threatened to send the succession plans of the Indian Army in a tizzy and also saw some unprecedented developments like a serving Army Chief dragging the government of the day to the Supreme Court.

Taking its lessons from the controversy the Army has inducted this caveat in its recruitment advertisement. “This is only logical,” Army officials reacted to the development.

Hasten Court of inquiry into crashes: Antony to IAF

With over a dozen inquiries into the air crashes still pending the Defence Minister AK Antony on Monday directed the top brass of the Indian Air Force (IAF) to expedite the pending inquiries to minimize the possibility of future accidents.

The issues of air crashes come up at the Parliament’s Defence Consultative Committee as the IAF has lost 33 combat jets in the last four years. Twelve helicopters also crashed during this period. Thirty-five defence personnel, including 13 pilots, lost their lives in these crashes. 

Addressing a meeting of the Consultative Committee attached to his Ministry here Antony said even one accident is a matter of “serious concern”. Joint Committee comprising representatives of Ministry of Defence, IAF, Hindustan Aeronautics Ltd. (HAL), Defence Research and Development Organisation and DG Acquisition has been constituted to monitor the implementation of the recommendations of the Court of Inquiry, he informed the committee.

“The joint committee will specially focus on Category-I aircraft accidents involving those in which the aircraft is destroyed or damaged beyond economical repair, or is missing or the cost of repair, excluding damage to aero-engines exceeds 50% of the total cost,” the Minister added. 

A one-time inspection of all helicopter detachments was also carried out in view of the fact that an unusually high number of accidents and incidents on helicopters occur, when they are operating away from their parent base. “These inspections resulted in highlighting several shortcomings. Action is being taken on these shortcomings on a priority basis,” Antony informed the committee.

The training standards of young fighter aircrew remain another area of concern. The IAF is procuring 75 Basic Trainer Aircraft and the first training course on the new trainer aircraft ‘Pilatus’ will commence in July 2013.

Antony said Plans to phase out equipment approaching redundancy are also in place and certain critical procurements have been fast-tracked.  “Non-upgraded MiG-27 and MiG-21 are being phased out progressively by March 2016 and March 2018 respectively,” said the Defence Minister.

The newly inducted Minister of State for Defence Jitendra Singh also attended the meeting.