The Indian Air Force (IAF) is considering a a proposal for procuring the indigenous basic trainer aircraft, Hindustan Turbo Trainer 40 (HTT-40), from Hindustan Aeronautics Limited (HAL).
The IAF has sought inputs from HAL for formulating a statement of case required for revalidating an Acceptance of Necessity (AoN) by the Defence Acquisition Council (DAC).
In September 2019, HAL had successfully conducted a rigorous ‘six-turn spin test’ on a prototype of the HTT-40. The aircraft had returned to its original position each time after being thrown into multiple spins, which was termed as a landmark development by the HAL in the design and development phase of the aircraft. This development and testing will continue for some more time. HAL is working towards completing the certification process of the basic trainer by meeting all parameters that have been required of it by the IAF.
In November 2019, Chief of the IAF, Air Chief Marshal RKS Bhadauria, had undertaken a test flight of the HTT-40 from the HAL’s airport in Bengaluru.
In February 2010, the DAC had accorded an approval for the design and development of an indigenous basic trainer aircraft by the HAL. The DAC had also approved the procurement of aircraft by the IAF. The maiden flight of the prototype aircraft took place in the year 2016 nearly after three years of delay.
Apart from giving the go-ahead for the development of a new indigenous trainer to replace HPT-32 Deepak, the Indian government had also decided on an off-the-shelf purchase of basic trainers to meet immediate requirements.
Subsequently, in 2012, India signed up for the Swiss aircraft manufacturer Pilatus Aircraft Limited to procure 75 ready-to-fly PC-7 MkII at a cost of Rs 2,800 crore ($437.5 million, at then currency exchange). Pilatus completed delivery of all 75 aircraft in July 2018.
The IAF had fallen short of basic trainer aircraft after the indigenously manufactured Hindustan Piston Trainer-32 Deepak (HPT-32) were grounded in 2009 following a series of accidents leading to loss of lives. At present, the existing strength of trainer aircraft — including basic, intermediate and advanced trainers — with the IAF is 260, as against the sanctioned strength of 388. This includes 75 Pilatus PC-7 MkII aircraft used for the purpose of basic training.
India Developing Land
Pool to Attract Industry Leaving China
India is developing a land pool to lure businesses moving out of China. A total area of 461,589 hectares has been identified across the country for the purpose. That includes 115,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh. Andhra Pradesh is in touch with several companies from Japan, the U.S. and South Korea. Uttar Pradesh is also developing an online system for land allotment for all industrial and commercial purposes and is in talks with global companies for attracting investments in sectors such as defence and aerospace.
Land has been one of the biggest impediments for companies looking to invest in India, with the plans of Saudi Aramco to Posco frustrated by delays in acquisition. Prime Minister Narendra Modi’s administration is working with state governments to change that as investors seek to reduce reliance on China as a manufacturing base in the aftermath of the coronavirus outbreak and the resultant supply disruption.
At present, investors keen on setting up a factory in India need to acquire land on their own. The process, in some cases, delays the project as it involves negotiating with small plot owners to part with their holding.
Providing land with power, water and road access may help attract new investments to an economy that was slowing even before the virus hit, and is now staring at a rare contraction as a nationwide lockdown hit consumption.
The government has hand-picked 10 sectors — electrical, pharmaceuticals, medical devices, electronics, heavy engineering, solar equipment, food processing, chemicals and textiles — as focus areas for promoting manufacturing.
The four countries are among India’s top 12 trading partners, accounting for total bilateral trade of $179.27 billion. The foreign direct investments by the four nations between April 2000 and December 2019 stands at over $68 billion, government data shows.
Bharat Dynamics Get MRSAM Order from IAF
Bharat Dynamics received an order to supply medium-range surface-to-air missile (MRSAM) sections for Indian Air Force (IAF) deliverables on 6 May. The order has to be executed in next 24 months.
BDL stock gained 7.38% after the announcement. BDL’s standalone net profit fell 71.8% to Rs 53.18 crore on a 49.6% decline in net sales to Rs 495.42 crore in Q3 December 2019 over Q3 December 2018.
Bharat Dynamics manufactures defense equipment. The company offers ammunitions, counter measures dispensing, infra red interference indicators, and missile systems. BDL serves military and aerospace industries in India.
OFB Wins $145-mn Indent For BMP ICVs
The Ministry of Defence (MoD) placed an indent for supply of 156 upgraded BMP-2/2K Infantry Combat Vehicles (ICVs) for Rs 1,094 crore ($145 million) on the Ordnance Factory Board (OFB), on 2 June.
The BMP-2/2k will come with upgraded feature and would be powered by 285 horse power engines. With lesser weight that the previous variants, the latest BMPs will be highly mobile and meet all the tactical requirements of the mobility on the battlefield.
These ICVs will be able to reach a speed of 65 kms per hour with easy steering ability in cross-country terrain. They will have amphibious capabilities to travel at seven kmph in water. These are designed to overcome slope of up to 35-degree cross obstacles of 0.7 metre and have lethal firepower capability.
With the induction of these 156 BMP 2/2K ICVs, planned to be completed by 2023, the existing deficiency in the mechanised infantry battalions will be mitigated and the combat capability of the army will be further enhanced.
NASA Selects 3 Indian Companies For Ventilators
NASA’s Jet Propulsion Laboratory in Southern California on 29 May selected eight US manufacturers along with 13 International companies to make a new ventilator tailored for coronavirus (COVID-19) patients. There were three Indian companies that were selected among the 13 International manufacturers from countries like Australia, Brazil, Canada, Mexico, Egypt, UAE, Turkey, and Malaysia.
The three Indian companies that were selected are Alpha Design Technologies, Bharat Forge and Medha Servo Drives.
The device, called VITAL (Ventilator Intervention Technology Accessible Locally), was developed by engineers at NASA’s Jet Propulsion Laboratory (JPL) in just 37 days. The high-pressure ventilator was designed to use one-seventh the parts of a traditional ventilator, relying on parts already available in supply chains. It offers a simpler, more affordable option for treating critical patients while freeing up traditional ventilators for those with the most severe COVID-19 symptoms. Its flexible design means it also can be modified for use in field hospitals.
OFBs, DPSUs Told to Ramp Up Output After Lockdown
Defence minister Rajnath Singh, on 28 April, speaking to top officials of the Ordnance Factory Board (OFB) and defence public sector undertakings (DPSUs) via video conference, asked the OFB and DPSUs to draw up contingency plans for resuming operations after the lockdown to combat the coronavirus disease (Covid-19) is lifted. Singh said such plans were necessary to ramp up production and compensate for the time lost due to the Covid-19 outbreak.
Singh praised the efforts of DPSUs in coming out with new products to fight Covid-19 and also the assistance provided by them to the local administration. The OFB has also earmarked 280 isolation beds at hospitals spread across 10 locations.
The OFB’s contribution in fighting Covid- 19 includes the repair of more than 100 ventilators, manufacture of 12,800 coveralls, development of specialised machines for testing of personal protective equipment (PPE) kits and supply of 6.35 lakh masks to local authorities.
Bharat Electronics Ltd manufactured 12,000 ventilators in May and another 18,000 in June to support the national effort to tackle the disease.
The statement said Hindustan Aeronautics Ltd has manufactured and supplied 300 aerosol cabinets to various hospitals and also distributed 56,000 masks and extended support to migrant labourers.
HAL, BEL, BDL Shares Up As FDI Limit Goes to 74%
Defence sector stocks rose up to 10% today after Modi government said it would ease foreign direct investment norms in defence manufacturing by allowing 74 per cent FDI under the automatic route to attract overseas players in the sector.
Share price of Hindustan Aeronautics Ltd (HAL) rose 10.03 per cent at Rs 576, Bharat Electronics Ltd (BEL) gained 5.54 per cent to Rs 71.5, Mishra Dhatu Nigam Ltd (MIDHANI) up 7.23 per cent at Rs 224.65 and Bharat Dynamics Ltd (BDL) gained 4.72 per cent at Rs 250.9. Apollo Micro Systems stock rose 8.69 per cent to Rs 95.7, BEML up 5.32 per cent at Rs 630, Bharat Forge up 4.02 per cent at Rs 288.70 and Premier Explosives rose 5 per cent to Rs 78.65 on BSE.
As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry — 49 per cent under the automatic route, while beyond that government approval is required.
In July 2018, the government eased foreign direct investment norms in the defence sector by allowing FDI up to 49 per cent under the automatic route.
RM: Pandemic Has Hit Defence Production
Defence minister Rajnath Singh, on 21 May, said the lockdown imposed to check the spread of the Covid-19 in late March has hit defence manufacturing harder than other sectors. He added it is because the government is the only buyer of the defence products.
Singh spoke about the hardships faced by the defence industry at an e-conclave at a defence industry webinar. He said the lockdown has hit the manufacturing sector, disrupted supply chains while the defence industry has also been affected due to the strict confinement measures.
Singh said the economic package and the reforms the Centre has announced to tide over the Covid-19 crisis and to give a push to Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat Abhiyan (Self-Reliant India Movement)’ would strengthen the micro, small and medium enterprises (MSME) sector and generate employment.
HAL May Be Allowed In Navy’s Helicopter Competition
The defence ministry is re-evaluating its big ‘Make in India’ plan to manufacture naval utility helicopters. The companies have been asked to explain if the programme has export potential and the Centre is also looking at giving Hindustan Aeronautics Limited (HAL) a chance to enter the competition.
HAL, which has been making a strong pitch for its Advanced Light Helicopter (ALH), could get a chance to enter the competition if it is able to develop compliant prototypes, within a specified period of time. HAL has been pitching a naval variant of the ALH with folding rotor blades and tail but is yet to develop a prototype.
The Rs 21,000-crore plan to manufacture naval utility helicopters in partnership with a foreign vendor has been in the works for over a year and important decisions on going to the next step of technical evaluation have to be taken shortly.
Queries have been sent to Indian and foreign companies bidding for the project to understand if there are plans to continue the line beyond the 111helicopters envisaged to meet exports in both civil and military markets. The ministry is also assessing if a lesser number of choppers were to be ordered, what the impact would be on technology transfer and cost viability.
There is an apprehension that the project could be cut down in numbers as the ministry is revising all procurement plans due to an anticipated budget cut.
GSL Lowest Bidder in ships for Coast Guard
Goa Shipyard Ltd (GSL) has emerged as the front runner to build two pollution control vessels for the Indian Coast Guard, pipping L&T Shipbuilding and two other public sector shipyards. GSL will build the vessels for approximately Rs 600 crore once the final contract is inked. GSL is already executing a follow-on order for five offshore patrol vessels for the Coast Guard, the first of which was commissioned on 15 May.
Contract negotiations for the two pollution control vessels will begin with the defence ministry and the Indian Coast Guard, and once the terms are decided, the contract will be inked.
GSL is also building frigates for the Indian Navy. The keel for the first of the two guided missile frigates for the Indian Navy, known as Project 1135.6, were to be laid in early 2020. The stealth warships, valued at over Rs 14,250 crore, will be built at GSL based on technology transfer from Russia’s Yantar Shipyard and Severnoye Design Bureau.
AK SRIVASTAVA, NEW DIRECTOR (DEFENCE BUSINESS), BEML
AK Srivastava has assumed charge as Director (Defence Business) and has been nominated as member of the Board of BEML Limited, Schedule ‘A’ Company, under Ministry of Defence. Prior to this elevation, he was Chief General Manger, BEML Defence (Marketing).
Srivastava is graduated from IIT Kharagpur in Mechanical Engineering and joined BEML as an Engineer Trainee in 1987. In his professional career spanning over three decades in BEML, he has worked in various critical functional areas in the company, at different geographical locations including overseas.
