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Monday, March 23, 2009

India's military power suffers from serious flaws


First came news of Russia's decision to ground a substantial number of its MiG-29 fighters owing to structural defects. The news sparked off immediate concern for both the Indian Air Force (IAF), which flies three squadrons of this 'air superiority' aircraft that played a role during the Kargil war, and for also the Indian Navy which will begin taking delivery of the first four of a total 45 of this aircraft's naval variant, the MiG-29K, later this year.


Almost simultaneously came news of the Obama Administration's directive to General Electric to stop all work on the US-supplied gas turbine engines powering the Shivalik-class frigates just when the Navy was all set to launch sea trials of the first of these three stealth warships. This freeze will stay until the US government finishes reviewing its military ties with different countries. India is now reportedly turning to an Italian company to help operationalise the engines of the 4,900 tonne warships so that sea trials begin within the next two months.


Ironically, this decision coincides with Washington clearing the sale of eight P-8I Poseidon maritime reconnaissance aircraft priced at $2.1 billion making it the largest arms transfer to India so far in the history of bilateral relations. But then all purchases from the US come with the rider that India sign the End-Use Verification Agreement (EUVA) that entails 'on-site inspection' and 'physical verification' which New Delhi has been resisting. And now comes news that the IAF is looking for advance jet trainers (AJT) other than the British-supplied Hawk aircraft to train its pilots. This is because the IAF is facing considerable problems relating to product-support for the 66 Hawks bought only a few years ago. The AJT plays a vital role in training rookie pilots to transition from subsonic trainer aircraft to 'high-performance' supersonic fighters.


These three events in quick succession are only a few of the many such incidents that have been occurring with monotonous regularity. It is repeatedly exposing the Indian armed forces' vulnerability to the whims and vagaries of foreign suppliers that range from sudden foreign policy shifts, price hikes to glitches in technology. This adversely affects every aspect of India's war-fighting capabilities, as was witnessed during the Kargil war when the Army chief commented on India's lack of preparedness famously saying that "if a war was thrust on us, we will fight with whatever we have". The Ministry of Defence is still grappling with the Russians who have almost tripled the original cost of refitting the 44,500 tonne aircraft carrier Admiral Gorshkov (since renamed INS Vikramaditya). The arrival of this aircraft carrier, which is vital to India's strategic interests in the Indian Ocean because of its role in sea control, has been delayed further by four years to end-2012.


In 2008, the Russian company Rosoboroexport had suddenly hiked the price of 80 Mi-17-IV transport helicopters from $650 million to $ 1 billion after the deal had been finalised. In 2007, the Indian Navy refused to take delivery of an upgraded Kilo-class submarine from the Russians after they noticed deficiencies in the accuracy of the freshly fitted cruise missiles. That same year, India also expressed reservations over the upgraded Russian-made IL-38 maritime reconnaissance aircraft after the Navy complained that its Sea Dragon multi-mission electronic warfare suites were not working to parameters. Then in the mid-1990s, many of the British-supplied Sea Eagle anti-ship missiles turned out to be duds. The French refused an Indian request for the 'proven' Exocet anti-ship missiles that had been successfully used by Argentina against the British naval fleet during the Falklands war. After continued refusals, the US only recently agreed to sell to India the 'war proven' Harpoon anti-ship missiles, which, incidentally, it supplied to Pakistan two decades ago. India may boast of the world's third largest Army, fourth largest Air Force and seventh largest Navy, but even 61 years after Independence the Indian military continues to be almost entirely dependent on foreign countries for its weapon systems.



From rifles and machine guns for its Infantry to tanks, artillery guns, fighter aircraft and submarines, the list of imports reads endless and runs into billions of dollars. The Indian armed forces are currently in the midst of their most expensive modernisation and upgrading programme. But India's military is almost entirely foreign dependent. India is slated to spend a whopping $50 billion on defence purchases in the next five years. This does not include the $32 billion worth agreements signed between 2000-2007. But the time lines, cost escalation, rapid advances in military technology and continued depletions in force-levels continue to take their toll on the armed forces which can only hope to attain their complete modernisation by 2025, which is still a decade-and-a-half away.



The order for big-ticket items — all of them replacements for an ageing fleet — is indeed daunting. It includes 126 multi-role combat aircraft valued at $10.4 billion; six more submarines; six more maritime reconnaissance aircraft to replace the ageing Soviet-origin IL-38s; six C-130J 'Super Hercules' transport aircraft from the US for the Special Forces valued at $962.45 million; a range of artillery ranging from 1,500 pieces of 155 mm towed artillery guns, 180 wheeled Self Propelled Guns and 140 ultra light howitzers; 347 more T-90 tanks from Russia; a range of helicopters ranging from Mi-17-IVs, 384 light helicopters including 259 for the Army and 125 for the IAF priced at a total of about $1.6 billion to replace the vintage French-origin Chetaks and Cheetahs, and 22 attack helicopters to replace the ageing Soviet-origin Mi-25/35s; 16 anti-submarine warfare helicopters for the Navy to replace the British-made Sea King fleet, and 15 heavy-lift utility helicopters to replace the four Soviet-origin Mi-25 helicopters.



Unfortunately, India's quest for self-reliance and indigenisation of defence hardware that began in the late 1950s is far from fruitition. Of particular dismay is the performance of the Defence Research and Development Organisation, which has failed to develop a single major weapon system. Even 37 years after its development, the Arjun tank continues to suffer from performance deficiencies, forcing India to buy T-90s from Russia, which has since been creating hurdles in technology transfer. Indigenous efforts to make the Kaveri engine for the Tejas Light Combat Aircraft, developed with the help of the US and still a few years from induction into the IAF, have failed, forcing India to look for a foreign collaborator. The Akash and Trishul surface-air-missiles have remained a non-starter even after 26 years forcing India to buy Barak and Spyder missiles from Israel. Both the Agni and Prithvi surface-to-surface missiles have only achieved limited success. In contrast to military powers of reckoning, India's defence exports were a dismal $105 million in 2006-2007 allowing it little leverage in contrast to our long-term competitor and adversary, China, which signed export agreements worth $3.8 billion in 2007 alone. Even the most expensive Indian defence exports comprise second-hand defence equipment of foreign origin. This over-dependence on foreign vendors coupled with a failure to become self-dependent in defence hardware does not auger well for a country that is seeking to be a global player in a world that is dictated by realpolitik and where military power is still key in a multi-polar world along with the other two major forms of power – ‘Economic’ and ‘Soft’.

6 comments:

Importing T-90 tanks from Russia, makes me laugh. Indians always defend these purchases by belittling Chinese and Pak weapons. T 90 superior to Al Khalid and Type 96 and 99. If you go on Indian defence blogs they will call you insulting words, when questioning the purchases. When US and EU sanction India in wartime, India will be taking about self made weapons again.

India from start had this policy of license production of defense items but was never able to take the advantages from transfer of technology.

Thats true, the reason for this failure is up for debate.

negative aspects always look easier to comment on...the truth is that in south east asia, only india and china have the superior edge and no other country can even dare to think about first strike. sure, every country has its problems and no one in this modern age will risk waging a war or going nuclear against the other. so the question comes up...why is india spending so much on defense? the point is that machines get old and need to be replaced and this needs to be planned year on year..decade on decade.. no country knows the real numbers of defence equipment as no country ever publishes the real truth. india is able to afford this spending as its economy has turned into a raging bull leaving pakistan, bangladesh and srilanka far behind.countries look at decades ahead, not years gone by. by 2020, there will be only 2 countries powerful enough in south east to stand up to the western world, india and china.

Type99, I'd like to know what "Indian defence blog" called you "insulting words" when you questioned their defence purchases. Are you sure you're not overreacting? If you are ethnic pakistani, I'd suggest you take a look at some of your not-so-genteel defence forums, including those that actually encouraged swearing at Indians by the mods as a matter of policy, and those that banned all Indians on a whim because they were frustrated by the present state of and the debilitating military constraints and military stagnation borne out of the IMF deal to their country. Still, I can direct you to Indian defence forums that actually chastise, and even ban, Indian members for calling pakistani members 'paki' (which among its other meanings, implies 'pubes'). If you are an ethnic chinese, I would suggest you take a look at your own defence industry, which are blatant copies of Russian and other weapons systems as acknowledged by top-ranking Russian officials [http://www.strategypage.com/htmw/htproc/articles/20090217.aspx]and the concomitant collapse of a recent Su-33 fighter deal between the two [http://en.rian.ru/analysis/20090313/120554173.html](perhaps reflective of similar animadversions of foreign suppliers holding a country 'hostage' whatever the cause). Therefore yes, I would not be surprised if Indians were to lose their cool with you if you 'questioned their purchases', particularly of items which you make clones of in abundance.


As for the article itself, it is obsolete and somewhat flawed. With regard to the LM2500 turbines being developed by GE for the Shivalik, much heavy wind over nothing:


US allows GE to work on Indian warship

March 24, 2009, 0:21 IST


India’s new stealth warship, the INS Shivalik, is back on track. On March 12, 2009, the US government gave General Electric (GE) the green signal for resuming work on the two LM 2500 gas turbines that power the Shivalik. On March 6, 2009, Business Standard had reported that the stealth frigate was being delayed by “stop all work” instructions to GE from the US State Department.

Vice-Admiral HS Malhi, the chairman and managing director of Mazagon Dock Ltd (MDL), which is building the INS Shivalik, has confirmed to Business Standard: “The issue has been resolved. GE has communicated to us that they have been given permission to go ahead. Earlier, GE had indicted that the permission could take 3-4 months in coming; but now (the US State Department) has cleared it.

The US State Department’s complex defence export procedures appear to be behind this delay. US industry sources explain that the LM 2500 gas turbines are dual-use power plants — they have commercial as well as military uses. For that reason, they are not listed on the US Munitions List and do not require an export licence from the State Department’s Directorate of Defence Trade Controls (DDTC). However, for fitting these dual-use turbines on a warship, that is, for providing a “military service”, a Technical Assistance Agreement (TAA) is needed from State Department. This was only received on March 12, after which GE resumed work on the Shivalik.

Nikhil Khanna of the US-India Business Council (USIBC) confirms: “GE needed to apply for a TAA from the Political-Military Bureau at the State Dept, which they did…. Simple procedures needed to be completed according to US technology release policies and we’re confident and proud that GE’s LM2500 engines will power India’s cutting-edge stealth warships.”

GE has confirmed to defence industry publication, Jane’s: “GE continues to provide the Indian Navy with LM2500 gas turbines for its ship programs… with no export licence required. This week GE obtained a licence from the US Department of State, to authorise the delivery of all shipboard services being requested.”

Partly as a result of this delay, MDL is racing to try and complete work on the Shivalik before the monsoons make sea trials difficult. Vice-Admiral Malhi says: “What time was lost cannot be regained now. We wanted the gas turbines in mid-January; we are now looking at end-March. So, we have lost about two months. I hope GE is able to crash it (work on an accelerated basis) and reduce the time that has been lost.”

The US industry is bitter about “undue attention” on the Shivalik delay. Says an industry source: “This is when we should be celebrating recent successes, such as the Lockheed C-130J sale, Boeing VVIP jets and, recently, the largest-ever deal between the US and India, that of the $2.2 billion Boeing P-8i (maritime reconnaissance aircraft) sale to the Indian Navy, (which will be) the first international customer for the P-8i, a huge step forward in the growing strategic relationship between our countries.”


http://www.business-standard.com/india/news/us-allows-ge-to-workindian-warship/352754/

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As for our Mig-29 fleet, yes the so-called "structural defects" on the Russian fleet are a cause of concern, however we are subsequently conducting ultra-sound examinations of essential components of all our Mig-29's at the northern Base Repair Depot. Subsequently, Air Cief Marshall F.H. Major ascertained that our Mig-29's were safe. All of our Mig-29's will also progressively undergo refitting at the Nasik airbase in Maharashtra under full ToT, with six of the same already undergoing refitting in Russia.

In respect of the Russian carries Adm Gorshkov/ INS Vikramadithya, that has been plagued by flip-flops and discrepancies no doubt, but the following Russian news source has it that talks are on to salvage the deal at an estimated price nearly $1 billion dollars lower than the (re)quoted Russian price. Take it for what it is worth: http://www.vedomosti.ru/newspaper/article.shtml?2009/02/24/183038


The following is a very rough translation:

Aircraft carrier to save $ 1 billion

Talks to salvage a contract for the supply of India's aircraft carrier «Vikramaditya» (former «Admiral Gorshkov») are close to completion

Alexei Nikolsky, Hope Ivanitsky
Vedomosti l 24.02.2009, № 32 (2302)

According to «Vedomosti» source in the United Shipbuilding Corporation (USC), a solution to the problem of additional payments for finalizing the aircraft carrier «Vikramaditya» is possible in May, for which the Indian side should hold a few more rounds of price negotiations. According to him, this amount is $ 1 billion, although the Indian media reported last year a figure of $ 2 billion. A senior official of one of the national authorities involved in the negotiations with India, said that this amount is considerably less. A senior official in the Indian embassy when asked to comment on talks with Russia did not. At the end of last year, the Government of India agreed that the additional costs for the ship needed for finalizing, and authorized to conduct negotiations on the issue with Russia.


Re:By 2020,

All of the constant combat readiness will be 100% staffed with new equipment and weapons, said Chief of General Staff, Army General Nikolai Makarov. The remaining part will be staffed by 70%. According to Makarov, India is working on weapons modernization program until 2020, providing a massive purchase of new arms and military equipment.

The contract for a radical modernization «Gorshkova» for Indian Navy was signed back in 2004, and then work with the ship was estimated at $ 650 million and the customer delivery date for the aircraft carrier in 2008. However, the ongoing work at Severodvinsk «Sevmashpredpriyatii» revealed that the amount of work needed was much more and requirde additional funding and delivery of the ship was moved.

For two years now, India has not financed these activities, but they are ongoing - the readiness of the ship is now more than 50%, said the representative of «Sevmashpredpriyatiya» Michael Novozhilov. He refused to comment on amount of required payments under the contract for the company.

The sum of $ 1 billion looks much more realistic than the amount of $ 2 billion, said an expert Center for Analysis of Strategies and Technologies, Konstantin Makiyenko. This is the most difficult contract in the history of military-technical cooperation between Russia and India from a technical point of view and both sides are interested in completing the project successfully. So the chance of arriving at a compromise on the price in a short time is very high. If the negotiations take time, then the state has plans to further support the strategically important «Sevmashpredpriyatiya» (this is the only current manufacturer of nuclear submarines in Russia). According to a source at USC, last year for the continuation of work on the «Gorshkova», the dock received credit from Vnesheconombank of 6 billion rubles. And this year working on the idea doinvestirovaniya in the capital of the company 12 billion rubles.

---

Let us also not forget that India has embarked on an ambitious plan of designing and constructing its own indigenous aircraft carriers (a total of five), of which the keel-laying of the first has already been completed at Kochi:

http://en.rian.ru/world/20090226/120325539.html
http://www.janes.com/news/defence/naval/jni/jni090303_1_n.shtml

Photos (Navigation at side of page): http://livefist.blogspot.com/2009_03_01_archive.html

And contrary to our previous endeavors, this venture actually seems to be going pretty well, with a majority of the parts already having been prefabricated and floating scheduled for 2011.

---

With reference to the value of military exports, it seems absurd that an article written in 2009 would quote figures from 2006-07. The article for instance ignores a recent deal with Mauritius for the sale of the ALH Dhruv established under a 100 million dollar line of credit alone. This was preceded by a sale of the same to Suriname in February under a deal in excess of 15 millions dollars. So far, the HAL Dhruv has been sold to other smaller countries also: Nepal, Bhutan, Ecuador as well as Israel, and is under trial in several South American countries who seem to have a preference for this low-cost, sturdy advanced light helicopter. As of March 2008, the DRDO also received substantial export orders including orders for the development of Radar Computer –I & Radar Computer - II and their software for fitment on SU-30 aircraft from Malaysia; upgradation of display processor for SU-30 MK (A) aircraft from Algeria; development of six Airborne slotted array antennas (tech developed via the LCA MMR) from Poland for their naval surveillance radar, and S2 Battle Field Surveillance Radars from Indonesia (which has already been supplied). We currently export spares for most of our license produced radars, have exported the Flycatcher iirc for a Skyshield system (for which countries like Iran are in negotiations with India for) and the DRDO developed BFSR-SR, many electronic doodads alongwith ammo from the OFB (most recently in a deal to supply Turkey with air defence ammunition won in the face of Italian and Swedish competition) and various other subcomponents and ancillaries. The reason (often overseen) for the 'lack' of 'substantial' defence exports to other countries by India in comparison to certain other countries with overweight arms industries that make dozens of clones of weapons systems for export without a care in the world as to the transfer of sensitive (often not indigenously developed, but rather 'acquired') foreign technologies, is that the DRDO and HAL etc crucial manufacture weapons subsystems- in particular electronics- to indigenous defence efforts and of which exports the services would seriously oppose. This extends to items for instance such as the HUMSA sonar, Project Sangraha, to armour packages, to the CARadar or BLR or the Samyukta EW system. BEL and ECIL also make plethora of items that are quite competitive. BDLs missiles also have a large potential market, but for the fact that it is hobbled by its license production agreement with Euromissile and others (on account of MTCR).


To sum up, and to quote one "JCage" from an Indian defence forum that is a veritable source of knowledge and information:

India makes a range of items which are

a) Either hampered by license production agreements (Milan, Konkurs, MiG spares etc, radars which are license produced etc)

b) Constrained by services (Radars, EW, Sonars) which dont want critical IP which they have funded/inducted to be widely disseminated

C) Are not in sync with market demand (OFBs India specific armaments line is a prime example)

If India were to adopt Chinas example, it would merely copy and produce and wouldnt give a rat's behind. That would also lock it out of future license production. If India floods the market with Milan ripoffs, then there would be no Milan-ER in Indian service, not to mention a court case directed against the GOI. These are strategic decisions to take.

So India can export small scale items- small arms, munitions of varying calibers, etc. It can export other items such as the Dhruv whose broad performance parameters are not classified. Merely bemoaning defence exports or lack thereof is of no use. India can and is in recent years, signing license production deals with export clauses written into it.


The author's ignorance of the specific global, service and modular dynamics that govern the indian defence industry is evident.

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Furthermore, and even more importantly, the article ignores the very real trend of India's continual diversification of its arms supplies in the face of Russian neogtiational bellicosity- recent arms deals with the US (several, not least of which are the $1.8 billion deal for the supply of eight P-8I Poseidon maritime patrol aircraft and the 1 billion euro contract for six Airbus A-330 multi-role tanker-transports), Israel (even more numerous, most noteworthy among them the deal for the Phalcon AWACS and the $2 billion Spyder missile deal with the IMI) and France (the multi-billion dollar deal for the manufacture of six Scorpene-class submarines for the Indian Navy in India comes immediately to mind, with the country also pitching for six additional submarines under Project 75A) among others... In a curious other instance of ambitious successful indigenization, the Vish'akapatnam shipbuilding centre is also designing and building the highly secretive 'Advanced Technology Vessel [ATV] nuclear submarines of which 3 will be supplied to the Indian Navy.


I will leave you with the following website of a leading Indian defence company called MKU, which has now forayed into hi-tech defence equipment with Armoured Vehicles and UAV's: http://mku.com/

MKU began its export operations in 2003 after attaining a stronghold in India. By 2005, it had acquired market shares in over 30 countries. By 2008, it had a global presence in over 50. Of note among them are:

EUROPE
Spain, Belgium, France, Greece, Portugal, Germany, Austria, Czech Republic & UK


MIDDLE EAST
Cyprus, Jordan, UAE, Saudi Arabia, Turkey & Iraq


NORTH & SOUTH AMERICA
USA, Canada, Bolivia, Columbia, Venezuela


ASIA
Korea, Singapore, Thailand, Philippines, Indonesia, Australia


AFRICA
Libya , Ghana , Nigeria, Egypt.

And I suggest you take a look at its product list: http://www.mku.com/products_home.asp

Type99, I'd like to know what "Indian defence blog" called you "insulting words" when you questioned their defence purchases. Are you sure you're not overreacting? If you are ethnic pakistani, I'd suggest you take a look at some of your not-so-genteel defence forums, including those that actually encouraged swearing at Indians by the mods as a matter of policy, and those that banned all Indians on a whim because they were frustrated by the present state of and the debilitating military constraints and military stagnation borne out of the IMF deal to their country. Still, I can direct you to Indian defence forums that actually chastise, and even ban, Indian members for calling pakistani members 'paki' (which among its other meanings, implies 'pubes'). If you are an ethnic chinese, I would suggest you take a look at your own defence industry, which are blatant copies of Russian and other weapons systems as acknowledged by top-ranking Russian officials [http://www.strategypage.com/htmw/htproc/articles/20090217.aspx]and the concomitant collapse of a recent Su-33 fighter deal between the two [http://en.rian.ru/analysis/20090313/120554173.html](perhaps reflective of similar animadversions of foreign suppliers holding a country 'hostage' whatever the cause). Therefore yes, I would not be surprised if Indians were to lose their cool with you if you 'questioned their purchases', particularly of items which you make clones of in abundance. As for the article itself, it is obsolete and somewhat flawed.


With regard to the LM2500 turbines being developed by GE for the Shivalik, much heavy wind over nothing:


US allows GE to work on Indian warship

March 24, 2009, 0:21 IST


India’s new stealth warship, the INS Shivalik, is back on track. On March 12, 2009, the US government gave General Electric (GE) the green signal for resuming work on the two LM 2500 gas turbines that power the Shivalik.

On March 6, 2009, Business Standard had reported that the stealth frigate was being delayed by “stop all work” instructions to GE from the US State Department. Vice-Admiral HS Malhi, the chairman and managing director of Mazagon Dock Ltd (MDL), which is building the INS Shivalik, has confirmed to Business Standard: “The issue has been resolved. GE has communicated to us that they have been given permission to go ahead.

Earlier, GE had indicted that the permission could take 3-4 months in coming; but now (the US State Department) has cleared it. The US State Department’s complex defence export procedures appear to be behind this delay. US industry sources explain that the LM 2500 gas turbines are dual-use power plants — they have commercial as well as military uses. For that reason, they are not listed on the US Munitions List and do not require an export licence from the State Department’s Directorate of Defence Trade Controls (DDTC).

However, for fitting these dual-use turbines on a warship, that is, for providing a “military service”, a Technical Assistance Agreement (TAA) is needed from State Department. This was only received on March 12, after which GE resumed work on the Shivalik.

Nikhil Khanna of the US-India Business Council (USIBC) confirms: “GE needed to apply for a TAA from the Political-Military Bureau at the State Dept, which they did…. Simple procedures needed to be completed according to US technology release policies and we’re confident and proud that GE’s LM2500 engines will power India’s cutting-edge stealth warships.” GE has confirmed to defence industry publication, Jane’s: “GE continues to provide the Indian Navy with LM2500 gas turbines for its ship programs… with no export licence required.

This week GE obtained a licence from the US Department of State, to authorise the delivery of all shipboard services being requested.” Partly as a result of this delay, MDL is racing to try and complete work on the Shivalik before the monsoons make sea trials difficult. Vice-Admiral Malhi says: “What time was lost cannot be regained now. We wanted the gas turbines in mid-January; we are now looking at end-March. So, we have lost about two months. I hope GE is able to crash it (work on an accelerated basis) and reduce the time that has been lost.”

The US industry is bitter about “undue attention” on the Shivalik delay. Says an industry source: “This is when we should be celebrating recent successes, such as the Lockheed C-130J sale, Boeing VVIP jets and, recently, the largest-ever deal between the US and India, that of the $2.2 billion Boeing P-8i (maritime reconnaissance aircraft) sale to the Indian Navy, (which will be) the first international customer for the P-8i, a huge step forward in the growing strategic relationship between our countries.”


http://www.business-standard.com/india/news/us-allows-ge-to-workindian-warship/352754/

---

As for our Mig-29 fleet, yes the so-called "structural defects" on the Russian fleet are a cause of concern, however we are subsequently conducting ultra-sound examinations of essential components of all our Mig-29's at the northern Base Repair Depot. Subsequently, Air Cief Marshall F.H. Major ascertained that our Mig-29's were safe. All of our Mig-29's will also progressively undergo refitting at the Nasik airbase in Maharashtra under full ToT, with six of the same already undergoing refitting in Russia.

---

In respect of the Russian carrier Adm Gorshkov/ INS Vikramadithya, that has been plagued by flip-flops and discrepancies no doubt, but the following Russian news source has it that talks are on to salvage the deal at an estimated price nearly $1 billion dollars lower than the (re)quoted Russian price. Take it for what it is worth:

http://www.vedomosti.ru/newspaper/article.shtml?2009/02/24/183038


The following is a very rough translation:

Aircraft carrier to save $ 1 billion Talks to salvage a contract for the supply of India's aircraft carrier «Vikramaditya» (former «Admiral Gorshkov») are close to completion Alexei Nikolsky, Hope Ivanitsky Vedomosti l 24.02.2009, № 32 (2302)

According to «Vedomosti» source in the United Shipbuilding Corporation (USC), a solution to the problem of additional payments for finalizing the aircraft carrier «Vikramaditya» is possible in May, for which the Indian side should hold a few more rounds of price negotiations.

According to him, this amount is $ 1 billion, although the Indian media reported last year a figure of $ 2 billion. A senior official of one of the national authorities involved in the negotiations with India, said that this amount is considerably less. A senior official in the Indian embassy when asked to comment on talks with Russia did not.

At the end of last year, the Government of India agreed that the additional costs for the ship needed for finalizing, and authorized to conduct negotiations on the issue with Russia.

Re:By 2020, All of the constant combat readiness will be 100% staffed with new equipment and weapons, said Chief of General Staff, Army General Nikolai Makarov. The remaining part will be staffed by 70%.

According to Makarov, India is working on weapons modernization program until 2020, providing a massive purchase of new arms and military equipment.

The contract for a radical modernization «Gorshkova» for Indian Navy was signed back in 2004, and then work with the ship was estimated at $ 650 million and the customer delivery date for the aircraft carrier in 2008. However, the ongoing work at Severodvinsk «Sevmashpredpriyatii» revealed that the amount of work needed was much more and requirde additional funding and delivery of the ship was moved.

For two years now, India has not financed these activities, but they are ongoing - the readiness of the ship is now more than 50%, said the representative of «Sevmashpredpriyatiya» Michael Novozhilov. He refused to comment on amount of required payments under the contract for the company. The sum of $ 1 billion looks much more realistic than the amount of $ 2 billion, said an expert Center for Analysis of Strategies and Technologies, Konstantin Makiyenko.

This is the most difficult contract in the history of military-technical cooperation between Russia and India from a technical point of view and both sides are interested in completing the project successfully. So the chance of arriving at a compromise on the price in a short time is very high.

If the negotiations take time, then the state has plans to further support the strategically important «Sevmashpredpriyatiya» (this is the only current manufacturer of nuclear submarines in Russia).

According to a source at USC, last year for the continuation of work on the «Gorshkova», the dock received credit from Vnesheconombank of 6 billion rubles. And this year working on the idea doinvestirovaniya in the capital of the company 12 billion rubles.

---

Let us also not forget that India has embarked on an ambitious plan of designing and constructing its own indigenous aircraft carriers (a total of five), of which the keel-laying of the first has already been completed at Kochi:

http://en.rian.ru/world/20090226/120325539.html http://www.janes.com/news/defence/naval/jni/jni090303_1_n.shtml

Photos (Navigation at side of page): http://livefist.blogspot.com/2009_03_01_archive.html


And contrary to our previous endeavors, this venture actually seems to be going pretty well, with a majority of the parts already having been prefabricated and floating scheduled for 2011.

---

With reference to the value of military exports, it seems absurd that an article written in 2009 would quote figures from 2006-07. The article for instance ignores a recent deal with Mauritius for the sale of the ALH Dhruv established under a 100 million dollar line of credit alone. This was preceded by a sale of the same to Suriname in February under a deal in excess of 15 millions dollars. So far, the HAL Dhruv has been sold to other smaller countries also: Nepal, Bhutan, Ecuador as well as Israel, and is under trial in several South American countries who seem to have a preference for this low-cost, sturdy advanced light helicopter.


As of March 2008, the DRDO also received substantial export orders including orders for the development of Radar Computer –I & Radar Computer - II and their software for fitment on SU-30 aircraft from Malaysia; upgradation of display processor for SU-30 MK (A) aircraft from Algeria; development of six Airborne slotted array antennas (tech developed via the LCA MMR) from Poland for their naval surveillance radar, and S2 Battle Field Surveillance Radars from Indonesia (which has already been supplied). We currently export spares for most of our license produced radars, have exported the Flycatcher iirc for a Skyshield system (for which countries like Iran are in negotiations with India for) and the DRDO developed BFSR-SR, many electronic doodads alongwith ammo from the OFB (most recently in a deal to supply Turkey with air defence ammunition won in the face of Italian and Swedish competition) and various other subcomponents and ancillaries.


The reason (often overseen) for the 'lack' of 'substantial' defence exports to other countries by India in comparison to certain other countries with overweight arms industries that make dozens of clones of weapons systems for export without a care in the world as to the transfer of sensitive (often not indigenously developed, but rather 'acquired') foreign technologies, is that the DRDO and HAL etc crucial manufacture weapons subsystems- in particular electronics- to indigenous defence efforts and of which exports the services would seriously oppose. This extends to items for instance such as the HUMSA sonar, Project Sangraha, to armour packages, to the CARadar or BLR or the Samyukta EW system. BEL and ECIL also make plethora of items that are quite competitive. BDLs missiles also have a large potential market, but for the fact that it is hobbled by its license production agreement with Euromissile and others (on account of MTCR).


To sum up, and to quote one "JCage" from an Indian defence forum that is a veritable source of knowledge and information:

India makes a range of items which are

a) Either hampered by license production agreements (Milan, Konkurs, MiG spares etc, radars which are license produced etc)

b) Constrained by services (Radars, EW, Sonars) which dont want critical IP which they have funded/inducted to be widely disseminated

C) Are not in sync with market demand (OFBs India specific armaments line is a prime example)


If India were to adopt Chinas example, it would merely copy and produce and wouldnt give a rat's behind. That would also lock it out of future license production. If India floods the market with Milan ripoffs, then there would be no Milan-ER in Indian service, not to mention a court case directed against the GOI. These are strategic decisions to take.


So India can export small scale items- small arms, munitions of varying calibers, etc. It can export other items such as the Dhruv whose broad performance parameters are not classified. Merely bemoaning defence exports or lack thereof is of no use. India can and is in recent years, signing license production deals with export clauses written into it.


The author's ignorance of the specific global, service and modular dynamics that govern the indian defence industry is evident.

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Furthermore, and even more importantly, the article ignores the very real trend of India's continual diversification of its arms supplies in the face of Russian neogtiational bellicosity- recent arms deals with the US (several, not least of which are the $1.8 billion deal for the supply of eight P-8I Poseidon maritime patrol aircraft and the 1 billion euro contract for six Airbus A-330 multi-role tanker-transports), Israel (even more numerous, most noteworthy among them the deal for the Phalcon AWACS and the $2 billion Spyder missile deal with the IMI) and France (the multi-billion dollar deal for the manufacture of six Scorpene-class submarines for the Indian Navy in India comes immediately to mind, with the country also pitching for six additional submarines under Project 75A) among others... In a curious other instance of ambitious successful indigenization, the Vish'akapatnam shipbuilding centre is also designing and building the highly secretive 'Advanced Technology Vessel [ATV] nuclear submarines of which 3 will be supplied to the Indian Navy.


I will leave you with the following website of a leading Indian defence company called MKU, which has now forayed into hi-tech defence equipment with Armoured Vehicles and UAV's: http://mku.com/


MKU began its export operations in 2003 after attaining a stronghold in India. By 2005, it had acquired market shares in over 30 countries. By 2008, it had a global presence in over 50. Of note among them are:

EUROPE
Spain, Belgium, France, Greece, Portugal, Germany, Austria, Czech Republic & UK


MIDDLE EAST
Cyprus, Jordan, UAE, Saudi Arabia, Turkey & Iraq


NORTH & SOUTH AMERICA
USA, Canada, Bolivia, Columbia, Venezuela ASIA Korea, Singapore, Thailand, Philippines, Indonesia, Australia


AFRICA
Libya , Ghana , Nigeria, Egypt.

And I suggest you take a look at its product list: http://www.mku.com/products_home.asp

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