Tuesday, 28 August 2012

Indian MoD Comments Various Defence and Security Issues

Tatra Truck Deal / Trainer Aircraft / Armed Forces Modernisation / DRDO Achievements / Aircraft Carrier / Revision in Offset Policy / ...

 According to the Indian Press Information Bureau, the following information was given August 27, 2012, by the Indian Minister of Defence, Shri AK Antony, and Minister of State for Defence, Shri MM Pallam Raju, in written replies to members of the Parliament of India:


The matter is under investigation by the Central Bureau of Investigation (CBI). It has also registered a regular case, on 30.3.2012, against one of the owners and unknown persons of a UK based company, unknown officials of a Defence Public Sector Undertaking and unknown Officers of Ministry of Defence and Indian Army. Ministry of Defence has purchased 6477 Tatra Trucks between 1987-1988 to 2010-2011.


The HPT-32 aircraft being used as Basic Trainer Aircraft since 1986 were grounded in July 2009 due to safety reasons. Thereafter, the basic training has been shifted to Kiran Mk 1/1A aircraft earlier utilized for Intermediate training

A contract for procurement of 75 Basic Trainer Aircraft was signed with M/s Pilatus Aircraft Ltd, Switzerland on 24th May 2012.

The case for procurement of the Basic Trainer Aircraft was processed through a multi-vendor procurement as per DPP-2008 and the Swiss company, M/s Pilatus Aircraft Ltd, emerged as the L1 vendor. The delivery of these 75 aircraft is scheduled from February 2013 to August 2015.


There has been no decision to withdraw troops from Siachen Glacier. Any deployment / redeployment of troops in the area is contingent upon the threat perception, ground situation and other operational aspects.A composite package of welfare measures for soldiers deployed on the Siachen glaciers, inter-alia, comprises - Siachen allowance, provision of Separated Family Accommodation anywhere in India, free warrant to travel hometown twice in a year, special ration and food developed by DRDO, evacuation by helicopter during medical emergencies.

A total number of 846 Armed forces personnel have made supreme sacrifices on the Siachen glaciers since 1984. The death during the course of duties on Siachen glaciers is treated as 'battle casualties' and enhanced compensation is paid to the next of the kin which includes-enhanced ex-gratia of Rs.20 lakhs, liberalized family pension equal to emoluments last drawn, Death-cum-Retirement-Gratuity, compensation from Army Group Insurance Scheme and ex-gratia lump sum compensation from the Central Government. Apart from the above, liberal contributions are also made from different funds, such as - Army officers benevolent fund, Army wives welfare association fund and Army central welfare fund. The family members of the deceased soldiers are also entitled for education concession card and air travel concession card.

During the 13th Round of Siachen Talks between the Defence Secretaries of India and Pakistan held in Pakistan from 11th to 12th June 2012, both delegations reaffirmed their resolve to make serious, sustained and result oriented efforts for seeking an amicable resolution of Siachen. It was agreed to continue the dialogue on Siachen in keeping with the desire of the leaders of both the countries for early resolution of all outstanding issues. The talks on Sir Creek issues between Surveyor General on India and Additional Secretary in the Ministry of Defence of Pakistan were held in New Delhi on June 18-19, 2012. The two sides discussed the land boundary in the Sir Creek area and also delimitation of International Maritime Boundary between India and Pakistan. They reiterated their desire to find an amicable solution of the Sir Creek issue through sustained and result oriented dialogue.


Government have already approved setting up of a Coast Guard station at Pipavav on the Coastline of Gujarat. There is no proposal to set up Coast Guard Station in South Gujarat at Hazira and other places.

As per the threat perception and vulnerability gap analysis conducted by the Coastal States in consultation with the Indian Coast Guard, a coastal marine police station instead of Coast Guard station has already been established at Hazira and another one approved for establishment at Dahej to function under hub & spoke concept with Coast Guard stations.


Procurement of equipment and weapon systems is carried out as per the Annual Acquisition Plan (AAP) and is a continuous process based on threat perception, operational challenges, technological changes and available resources.Divulging details would not be in the interest of national security.

The budgetary allocation for capital acquisition for modernisation of Armed Forces during 2012-2013 is as follows (Rs. in crore):

• Army: 13724.14
• Navy: 23252.71
• Air Force: 28533.00
• Jt Staff: 522.39
• Coast Guard: 1640.00
• TOTAL: 67672.24

Defence Procurement Procedure (DPP) envisages a procurement cycle of 2-3 years to conclude a contract for procurement of Weapons and equipment.


Production in Ordnance Factories is being primarily carried out through in house production. However, a part of the supplies are sourced from industry which is a part of the supplier base.


There are 50 laboratories functioning under Defence Research and Development Organisation (DRDO). At present, there is no proposal to set up new laboratory under DRDO.

DRDO is primarily engaged in design and development of strategic, complex and security sensitive systems for the Armed Forces. During the last five years, a large number of DRDO developed systems have been productionised and inducted into Armed Forces and many are in the process of trials / production / induction, which include missiles; multi-barrel rocket launcher; unmanned aerial vehicles; radars; electronic warfare systems; sonars; torpedos; combat vehicles; bridging systems; combat aircraft; sensors; NBC technologies; parachutes; combat free fall system; propellants and explosives; detonators; communication systems; etc.

Many systems developed by DRDO for the Armed Forces during the last five years can also be used for civilian applications. These include composite materials; steels; computing systems; kits for detection of swine flue, malaria, typhoid, leptospirosis, dengue, chickengunia; lucoskin ointment to cure luecoderma; water poison detection kit; mosquitoes repellent; parachutes; stent; ready to eat food items; textile and clothing items; unmanned vehicles; riot control vehicles; bullet proof vehicles; night vision devices; laser dazzler, survival kits; bio-digesters; integrated shelters; fire retardant materials / equipment; emergency escape chute; walking robot;snow gallery; lubricants; paints; fuel cells; etc.


There has been a slippage in the construction schedule of the indigenous aircraft carrier (approximately 37,500 Metric Tons displacement) being built at Cochin Shipyard Limited, Kochi.

The complexity of the project and this being the first ship of its kind being built in India has led to timelines being extended. AS per the Phase-I Contract concluded with M/s. Cochin Shipyard Limited, Kochi, the first launch of the ship was envisaged in October, 2010. However, due to delays in receipt of steel plates and pre-launch equipment like diesel alternators and gearboxes, the launch of the ship is now expected in 2013. Delivery of the ship is presently envisaged in 2018.


Intelligence gathering is an important activity aimed at developing and retaining the required capabilities for Defence. Expenditure incurred on such activities are subject to audit by designated competent authorities periodically. The disclosure of details would not be in national interest.


There is a set laid down procedure in Defence Procurement Procedure (DPP) for development of an equipment. Defence Research and Development Organisation (DRDO) is involved in development of state-of-the- art equipment for the Armed Forces. DRDO developed systems are evaluated by the Users through various phases of User Trials complying GSQR parameters. Subsequently, each system is put through Maintainability Evaluation Trial (MET), Director General of Quality Assurance (DGQA) and General Staff (GS) Evaluation. Once the system is cleared by GS Evaluation, it is inducted into Services. Production order to designated Production Agency is released by the User only after trials and evaluations have been successfully completed. Any short-comings noticed after inductionare attended by Production Agency. During the production, quality is assured by the DGQA. Wherever the quality issues are related to design aspects, DRDO takes corrective steps. DRDO undertakes product improvement I upgrades as required by Services. DRDO also provides handholding to Production Agency as well as User through Production Support Group created in the laboratory for post project activities after equipment is inducted in Services.

Defence Procurement Procedures (DPP) do not allow induction of a sub-standard equipment developed by Developing Agency as every equipment goes through stringent quality control and various type of trials defined by Users.


Acquisition of new platforms is part of the modernisation and upgradation of Indian Air Force's capabilities. The new combat aircraft would be manned by pilots of the existing older fleet, which are planned for replacement by the new aircraft.

Simulators for different trainer aircrafts like Advanced Jet Trainer, Intermediate Jet Trainer, Basic Jet Trainer, Kiran MK l/ll, HPT-32 have been contracted.

Concerted efforts have been taken by IAF to carry out a proactive publicity campaign including (i) participation in career training and exhibitions; (ii) advertisement in print and electronic media; (iii) motivational lectures; and (iv) visuals / signage at strategic locations to meet the shortage of pilots. Flying Branch has also been opened for men Short Service Commissioned Officers. Two Air Force Selection Boards are being set up to augment selection capacity.


There is no crisis over the ordnance factories due to awarding of contracts for defence equipments to the private sector. Procurement of defence equipment is done from various indigenous as well as foreign sources.

Defence equipment has been imported from countries such as Russia, USA, Israel, France, UK, Germany, Poland, Singapore etc. Value of imports during 2008-2009 till 2010-2011 is indicated below (Rupees in crores):

• 2008-2009: 10,184.95
• 2009-2010: 13,411.91
• 2010-2011: 15,443.01


Civilian and military personnel are appointed as Associate Fellows, Research Fellows and Senior Fellows under the Fellowship Scheme of the Institute for Defence Studies and Analyses (IDSA). The personnel under the Fellowship Scheme are required to publish articles; commentaries or book reviews; policy briefs and monographs or books. Research personnel who do not meet the benchmark are suitably counselled and the same is also reflected in their performance appraisal. The number of personnel under the Fellowship Scheme whohave not published a single article or report in the last 3 years is four.


Government is fully seized of the infrastructure requirement for operational needs of Armed Forces along the borders and has drawn up appropriate plans for strategic infrastructure development. All airfields are in use and are utilized as per operational requirement. Government is continuously monitoring the situation along the borders and takes suitable steps to safeguard the sovereignty and territorial integrity and security of India both along the Line of Actual Control (LAC) and Line of Control (LoC).


Vendors can offer transfer of technology as part of their offset obligations as per Para 3.1 (c), (e) and (f) of Revised Defence Offset Guidelines, which have come into force from 1st August, 2012.

Para 3.1(c), (e) and (f) of Defence Offset Guidelines are reproduced below:

(i) 3.1(c) Investment in 'kind' in terms of transfer of technology (ToT) to Indian enterprises for the manufacture and / or maintenance of eligible products and provision of eligible services. This could be through joint ventures or through the non-equity route for co-production, co-development and production or licensed production of eligible products and eligible services. The investment in kind in terms of ToT must cover all documentation, training and consultancy required for full ToT (civil infrastructure and equipment is excluded). The ToTshould be provided without license fee and there should be no restriction on domestic production, sale or export.

(ii) 3.1(e) Provision of equipment and / or ToT to government institutions and establishments engaged in the manufacture and/or maintenance of eligible products and provision of eligible services, including DRDO (as distinct from Indian enterprises). This will include augmenting capacity for Research, Design and Development, Training and Education but exclude civil infrastructure.

(iii) 3.1(f) Technology Acquisition by the Defence Research and Development Organization in areas of high technology listed in Annexure-VIII to Appendix-D.
A multiplier is permitted as per Para 5.11 of Defence Offset Guidelines which have come into force from 1st August, 2012.
Para 5.11 of Defence Offset Guidelines is reproduced below:

In the discharge of offset obligations under Para 3.1(a), (b), (c) and (d), a multiplier of 1.50 will be permitted where Micro, Small and Medium Enterprises are lOPs. For the purpose of offsets, Micro, Small and Medium Enterprises are defined as follows:

(a) In the case of enterprises engaged in manufacture of goods:-
(i) A micro enterprise is that where investment in plant and machinery does not exceed Rs. 2.5 million;
(ii) A small enterprise is that where investment in plant and machinery is more than Rs. 2.5 million but does not exceed Rs. 50 million; and
(iii) A medium enterprise is that where investment in plant and machinery is more than Rs.50 million but does not exceed Rs.100 million.

(b) In the case of enterprises engaged in providing services:-
(i) A micro enterprise is that where investment in equipment does not exceed Rs.1 million;
(ii) A small enterprise is that where investment in equipment is more than Rs.1 million but does not exceed Rs.20 million; and
(iii) A medium enterprise is that where investment in equipment is more than Rs.20 million but does not exceed Rs.50 million.

Note: The above monetary limits shall be subject to change as may be notified by Department of Micro, Small and Medium Enterprises, Government of India from time to time.

The aforesaid stipulations are subject to various conditions and limitations prescribed in Revised Defence Offset Guidelines. Text of the revised Defence Offset Guidelines is available at

This information was given by Minister of State for Defence Dr MM PallamRajuin a written reply to Shri Sugumar K. and Shri Sivasami C. in Lok Sabha today.


The procurement of defence equipment is done from various indigenous as well as foreign sources in accordance with the Annual Acquisition Plan (AAP). This is a continuous process undertaken for modernization of the Armed Forces to keep them in a state of readiness to meet any eventuality.

Defence equipment has been imported from various countries including Russia, USA, Israel, France, United Kingdom, Germany, Poland, Singapore etc. The imports cover various types of weapon system and platforms.

There are contractual provisions for Pre-Despatch Inspection (PDI) and Joint Receipt Inspection (JRI) before acceptance of any equipment. Contractual provisions also provide for levy of liquidated damages and invoking of Performance bond and Warranty bond if any equipment is found defective.


Hindustan Aeronautics Limited (HAL) has not supplied any pilotless combat aircraft to the Indian Air Force recently. Other aircraft being manufactured by HAL are SU-30 MKI, HAWK- AJT (Advanced Jet Trainer), Advanced Light Helicopter (ALH-Dhruv), Dornier 228, Light Combat Aircraft (LCA-Tejas) and IJT (Intermediate Jet Trainer).

1 comment:

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