Small US & European Firms Eye India's Defence Aviation Markets

Small and Medium American and European firms wish to tap the $100-billion Indian defence and commercial aviation markets.

Aerospace manufacturing company Carlton Forge Works (CFW), producer of seamless rolled rings, plans to invest $100-150 million to set up an aerospace centre (forging,tooling and machining)in India in JV with some local partner. The company is, at present, scouting for suitable locations in India, such as Karnataka and Hyderabad, where it can have access to natural gas that is very important to run its business.

The US department of commerce is looking forward to working on defence projects with the Indian government. “It is very important for tier-I and tier-II companies to explore business opportunities in India,” Ms Karen L Zens, Deputy Assistant Secy at the US department of commerce, said during the US Delegation's visit to Bangalore. Karnataka's 1000 Acre A & D Park could offer the opportunity.

Read the full Report on:

Svipja Technologies
(A Global Solution for Offsets)
Credit: The Economic Times.

US Dept of Commerce Aerospace and Defence Mission in India

The US Commercial Service in India has co-ordinated an Indo-US commercial mission under the leadership of Karen Zens, Deputy Assistant Secretary, US Department of Commerce which is designed to introduce US companies to key industry and government officials, strategic business and joint venture partners, and existing equipment manufacturers in India. It is in Bangalore these days.

"This mission is one of many steps we are taking to foster and strengthen the relationships between US companies and potential partners in India. We are looking at a range of areas for ties, including bio-tech, food processing, machine tools, energy and aerospace," Zens said.

The Indian aerospace sector ranks among the world's most dynamic ones, with airlines in India expected to procure an additional $35 billion in the next five years. This, and future SME focused missions will expand India's aerospace and defence infrastructure. Read the full report on:

The US Dept of Commerce Aerospace and Defence Mission in India

Brigadier(Retired) Sukhwindar Singh
http://www.svipja.com/
(A Global Solution for Offsets)
Credit: The Times of India.

Indian Defence Industry Development

India has ever been keen to attain self-sufficiency and self-reliance in the Defence and Aerospace Sector. Somehow this Objective has remained 'illusive', to say the least, in high-tech and state-of-the-art domains. New Policy of the MOD, India, on Defence Procurement with Offset Policy embedded in it and its regular updating, presents a streak of hope towards attaining the Objective of self-sufficiency and self-reliance, along with ongoing efforts of the DRDO. There are many 'ifs-n-buts' in the Defence Professional Community, and advocacy issues. We need to show far deeper insight into our Defence needs as an Indian Nation.

Under the subject heading 'Indian Defence Industry Development' on our Blog(s), we wish to record important media reports plus our own assessment to help policy makers arrive at a 'win-win' decisions without fear or favour. India's Defence should be the concern of all Indians without any 'inclinations'. Our Armed Forces should always get the 'best'. It is they who pay with their lives for any 'compromises' -- their concern always.

The following important developments are reported:

1. Sikorsky Aircraft Corp. and Tata Advanced Systems Limited (TASL) today announced the signing of an agreement creating a joint venture that will manufacture aerospace components for Sikorsky in India, including components for S-92® helicopter cabins. The joint venture agreement builds upon a long-term contract signed in June 2009 for TASL to assemble Sikorsky S-92® helicopter cabins. Sikorsky is a subsidiary of United Technologies Corp. (NYSE: UTX), and TASL is a wholly owned subsidiary of Tata Sons. Read full Report:

Sikorsky and Tata Create Joint Venture in India

2. A 1,000-acre Aerospace Park will be developed near the international airport at Devanahalli. Land has been acquired by the State agency Karnataka Industrial Areas Development Board.The area will include aviation MRO-related activities and 250 acres of an export-oriented aerospace SEZ.Report:

1,000-acre aerospace zone planned in Bangalore

Brigadier(Retired) Sukhwindar Singh
http://www.svipja.com/
(A Global Solution for Offsets)
Credit: USIBC News

Defence Procurement Procedure - 2008 (Amendment- 2009)

The following amendments to DPP-2008 have been made:

(a) Introduction of new category for acquisition - Buy & Make (Indian).
(b) Sharing of information with Indian Industry.
(c) Enhancing role of Independent Monitors.
(d) Removal of ambiguity regarding EMD in signing the Integrity Pact.
(e) Formulation of SQRs including issue of Request for Information (RFI).
(f) Offsets requirement in 'Option Clause', cases and change of offset partner in exceptional cases.

The amendments to DPP-2008 are being issued in the form of Defence Procurement Procedure - 2008 (Amendment - 2009), details of which are given on
http://mod.nic.in/dpm/welcome.html

These amendments are incorporated to the existing DPP-2008 in relevant pages/paragraphs as mentioned and will take effect from 01 Nov 2009.

Brigadier(Retired) Sukhwindar Singh
http://www.svipja.com/
(A Global Solution for Offsets)
Credit: http://www.mod.nic.in/

National Seminar on Defence Acquisition

National Seminar on Defence Acquisition was organised by the Institute of Defence Studies & Analyses on 27 Oct 2009 in New Delhi. The Defence Minister and Fomer DG, Defence Acquition Council (DAC) delieverd addresses which contained important points. These may find inclusion in the Revised DPP 2008, due in 2009. The following addresses are linked:

Address by Defence Minister

Address by Former Director General (Acquisition)


Brigadier(Retired) Sukhwindar Singh
www.svipja.com
(A Global Solution for Offsets)

Credit: Institute of Defence Studies & Analyses.

Likely Policy Changes to Boost Indian Defence Sector

A new category of Buy and Make (Indian) is likely to be introduced in DPP 2008. If a project is selected by the Defence Acquisition Council to be categorised as Buy and Make (Indian), Indian firms, both public and private, will play a lead role in negotiating and obtaining technology and co-production arrangements with the foreign original equipment manufacturers (OEMs). As such, the request for proposal will be issued to the Indian firms and not to the foreign OEMs.

Indian firms identified to have requisite technical and financial capabilities would be required to submit project proposals indicating detailed roadmap for development and production of the items over its life cycle. They will also be required to spell out the proposed production arrangement with the foreign OEM along with the content of the Transfer of Technology (ToT). The product so manufactured and supplied by the Indian Company to the MOD / Its Agencies must have 50% indigenous content. Thus amended DPP-2008, would enable pro-active participation of Indian Defence Industry in manufacturing defence products through co-production arrangements, such as JVs, with foreign manufacturers and through ToT.

Under Amendment 2009 to the DPP-2008, a public version of the Long Term Perspective Plan of the Armed Forces outlining technology perspective and capability roadmap covering a period of 15 years will be widely publicised and made available on MoDs website.

Further, to facilitate active participation of domestic industry in acquisition planning, Reps of Companies and Industry Associations will be invited for presentations and consultations in procurement meetings before decisions on the source of procurement are taken.

By an amendment, the role of the Independent Monitors (IM) is more defined and enlarged. It would enable them to scrutinize complaints with regards to violation of Integrity Pact.

Pse read the full Article on http://in.biz.yahoo.com/091029/50/baugiy.html and http://www.defencetalk.com/dpp-2009-to-boost-technology-transfer-to-indian-industry-22748/


Brigadier(Retired) Sukhwindar Singh
http://www.svipja.com/
(A Global Solution for Offsets)
Credit: http://www.in.biz.yahoo.com/ and www.defencetalk.com