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Svipja's Training & Development Practice

Our Training and Development Practice helps high-tech professionals in Defence and Aerospace Industry. www.svipja.com/ refers.

We also empanel Offset Consultants with Industry knowledge in A & D. You could fill Your 'Resume' on
http://www.svipja.com/careers.php , or 'Join as a Consultant' on www.indiandefenceindustry.com/


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Steps in Our Offset Process

Step 1: Acquaint Yourself first on Offset business. Please visit www.IndianDefenceIndustry.com , its connected Blogs and www.svipja.com in addition to other subject matter elsewhere. Offset Partnership and projects go thru rigorous 'Due Diligence' / 'Gate Reviews' by Vendors / Obligors.

Step 2: Register online on www.IndianDefenceIndustry.com using Internet Explorer to be part of the database of the Defence Industry. We are developing a consortium of MSMEs globally with India focus for them to participate in Aerospace and Defence direct and indirect Offset Projects.

Step 3: Obtain Industrial License, if required. We take Advisory on Products / Services to target, Capacity Creation, JV and Capital Structure incl FDI & Technology Agreements, etc.

Step 4: Become Industrial Sector Partner (ISP) of Svipja/India. We will guide the ISP firms go through qualified vendor registration process for Supply Chains of aerospace & defence firms.

Some of these steps could be attempted concurrently.

Commercials

1. Yearly Membership Fee for Registering on the Site and using e-Marketplace Engine for Buying/Selling and accessing Info System, is as indicated in Tariffs on the Site.This is variable.

2. Separate Fee for Offset Consulting / Industrial Co-operation would apply. Contact svipja@gmail.comfor further details.

3. Addl Fee will apply in case of market research, study and other services.

Conditions

1. Svipja provides guidance to the ISP on project suitability and document/plan preparation for the Gate Review Process, and its Presentation as required.

2. Svipja does not take responsibility for offset fund allotment to ISPs. This is decided by A & D Major Company based on the capability of the ISP to meet the needs of the A & D Major.

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Friday, January 29, 2010

US Clears 145 x M777 Howitzers for India

The US Congress has cleared to sell 145, M777 Howitzers to India in a deal worth 647 m USD.

It is the light-weight towed Howitzer with Laser Inertial Artillery Pointing Systems (LINAPS).

The deal will include warranty, spare and repair parts, support and test equipment, publications and technical documentation, maintenance, personnel training and training equipment, US government and contractor representatives' technical assistance, engineering and logistics support services, and other related elements of logistics support, the US Defense Security Cooperation Agency said in its notification.

Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for India Defence and Aerospace Ecosystem)
Credit: USIBC.

Thursday, January 21, 2010

India Raises Defence Export License Concerns with US

India today raised serious concerns relating to defence trade with the US, including export licence restrictions on its PSUs and DRDO by including them in the American 'Entity List'.

During a meeting between Defence Minister A K Antony and US Defence Secretary Robert Gates here, India also informed the US that its bilateral defence relations should grow from seller-buyer to a comprehensive cooperation rooted in transfer of technology and co-production of equipment and weapons.

Indicating its hesitation in going ahead with certain defence agreements as a precursor to significant defence co-operation , it stressed that these pacts, including Communication Inter-operability and Security Memorandum of Agreement (CISMOA), being pushed by US, would have to be studied for their benefits before signing them.

Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for Indian Defence Industry Ecosystem)
Credit:
PTI News.

Wednesday, January 20, 2010

US Defense Secy Seeks Arms / High-Tech Policy Change on Both the Sides

U.S. Defense Secretary Robert Gates said he’ll use his first visit to India this week in two years to seek progress on accords already initiated. “Not getting these agreements signed is an obstacle to Indian access to the very highest level of technology from the US", Gates said.

Monitoring the use and any attempted resale of U.S. defense technology to third parties, is a requirement of the U.S. Arms Export Control Act of 1996.

India is looking to strengthen its defense industry by buying U.S. weapons, then manufacturing them at home to supply its own forces and ultimately to export supplies to other countries. “We both have to re-examine policies dealing with exchanging technology”, as per Gates.

US / EU Industry are lobbying India to increase the level of foreign investment allowed in its defense industry to 49 percent from 26 percent. That would let the contractors have more control over joint ventures while giving them greater incentive to transfer proprietary technology, and participate in joint production. This is their pressing demand.

Gates said, India is a “critical partner” of the US on issues from climate change to combating terrorism.

Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for Indian Defence Industry Ecosystem)
Credit: USIBC and Its News Agencies.

Thursday, January 14, 2010

India Could Become a Major Defence Sourcing Hub: CII-KPMG Study

The Govt. should consider the establishment of dedicated A & D SEZs, establishment of a tax equalization subsidy linked to value of goods and services supplied to the Defence Sector, and exemptions to Offset JVs from R&D Cess," as per a study by CII-KPMG.

"The fiscal regime plays a critical role in any defence market in creating an environment that incentivises and supports the long term risk taking, investment and R&D required by the industry," the study noted. It said with skilled intensive manufacturing capabilities and a world class IT base, India had the "right ingredients to become a key link in the global defence supply chain".

New initiatives such as improving visibility of Govt. Defence Order Book, Increasing Industry Output and Feedback into the Tender Process, Reduction in Bidders' Costs, Extending the Use of Offset Credit Banking, Allowing Offset Credit Trading, and Introducing the Use of Multipliers, could be considered further.

FDI cap of 26 %, the study said, though the opinion was divided on increasing the FDI limit due to security considerations, there was clear expectation from the industry that it should be hiked from the present level.

Click for full Article: India as a Major Defence Sourcing Hub

Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for Indian Defence Industry Ecosystem)
Credit: USIBC and Its News Agencies.

Tuesday, January 12, 2010

India's Defence & Aerospace Industry Update

The effective implementation of offset policy can facilitate the absorption and indigenisation of foreign aeronautic technologies that accrue to the country by way of offset deals. In doing this, the Govt wishes to emulate the success of Brazil, Israel and Spain.

In India, over the last 16 years, India has seen more engineering and R&D investments in aerospace than the US or Europe. In Bangalore, Honeywell Technology Solutions has set up an engineering facility with over 5,500 engineers, while GE's Jack Welch Technology Centre has an extensive research lab with over 3,000 engineers.

Airbus is setting up an Airbus Engineering Center India (AECI) facility, which will hire 200-plus engineers of its own, and more than 2,000 through its partners. According to a Nasscom-Booz Allen Hamilton report, there will be a $40 billion opportunity for the offshore engineering industry worldwide by 2020. India is expected to have a 2-3 per cent share in the aerospace offshored engineering service. This amounts to $1.2 billion by 2010.

The government, on the advice of the Kelkar Committee, has opened up the aerospace industry to the private sector. State Govts are doing their bit by setting up special economic zones (SEZs) for the aerospace industry. These include:

• The Rs 3,000-crore Aerospace and Precision Engineering Special Economic Zone to be set up at Adibatla, Ranga Reddy district in Andhra Pradesh
• The specialised aerospace park of around 1,000 acres, proposed near the Bangalore International Airport;
• The 2,500-acre SEZ for the aerospace and avionics industry, proposed to be established in south Gujarat, close to the Delhi-Mumbai industrial corridor. This is likely to have a number of MRO facilities.

The cumulative value of the Indian defence market for the next five years is approximately Rs 180,000 crores (Rs 1.8 trillion), which makes it one of the most attractive in the world -especially, with the capital outlay for defence hiked this year to Rs 54,824 crores (Rs 548.24 billion), up from last year's revised estimate of Rs 41,000 crore (Rs 410 billion).

Indian companies are all set to supply in this market. Hero Motors plans to produce light aircraft at its 300-acre aerospace park in Madhya Pradesh in partnership with an unidentified European manufacturer.

The Tata group is keen to move into full-scale aircraft assembly and production in both the civil and military markets. The group has sought approval to set up an aerospace manufacturing facility on the outskirts of Hyderabad.

Tata has already signed deals with several International companies, including one to manufacture components for Boeing. It has taken a one-third stake in Italy's Piaggio Aero, while Israel Aerospace Industries (IAI) and Tata have signed a memorandum of understanding to establish a new company to develop, manufacture and support a wide range of defence and aerospace products, including missiles, UAVs, radars, electronic warfare systems and homeland security systems.

Mahindra & Mahindra, meanwhile, has signed deals with BAE Systems, and is jointly developing a five-seat light aircraft with the National Aerospace Laboratories. Larsen and Toubro (L&T) has formed a joint venture with the European EADS to develop high-tech defence electronics in Pune.

It is clear that A & D industry will act as a growth stimulant in coming years. However, to fulfill its potential, it must surmount challenges such as inadequate R& D investment, dispersed production centres, frequent change in regulations, and poor co-ordination amongst the different players.

Click to read the full Article:

India's Defence & Aerospace Industry Update

Brigadier(Retired) Sukhwindar Singh
http://www.indiandefenceindustry.com/
(An e-Hub for Indian Defence Industry Ecosystem)
Credit: USIBC and Its News Agencies.