The DAC also granted the AoN for procurement of three additional Scorpene submarines under Buy (Indian) category which will be constructed by Mazagon Dock Shipbuilders Limited (MDL). The procurement of additional submarines, with higher indigenous content, will not only help in maintaining required force level and operational readiness of the Indian Navy, but also create significant employment opportunities in the domestic sector. It will also help the MDL in further enhancing its capability and expertise in submarine construction.

In addition, the DAC approved the proposal to lay down guidelines for achieving the desired indigenous content in all categories of capital acquisition cases. It will help in achieving ‘Aatmanirbharta’ in critical manufacturing technologies and life-cycle sustenance of defence platforms/equipment through indigenous manufacturing.

ALSO READ: India, France To Sign Deal For Rafale-M Fighters In March – French Mediahttps://imrmedia.in/india-france-to-sign-deal-for-rafale-m-fighters-in-march-french-media/

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The Indian Army has been ramping up its overall combat capabilities in view of the lingering border row with China in eastern Ladakh.

It has significantly bolstered its fire power along the frontier with China by deploying a range of rockets and artillery weapons and it plans to procure an array of additional systems including 100 K9 Vajra howitzers and UAVs to further augment combat prowess.

The Artillery units of the Indian Army already deployed K-9 Vajra Tracked Self-Propelled Howitzers, ultra-light M-777 howitzers, Pinaka rocket systems and Dhanush gun systems.

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The last date for submission of bids for the remotely piloted aircraft programme is November 16.

“The system will be able to provide high resolution imagery to enable target detection, recognition, identification and accurate location of adversary’s location as well as build up of troops,” said an official.

According to the request for proposal or initial tender, the select supplier will have to supply the platforms within 12 months of signing the contract.

The mini remotely piloted aircraft systems are being procured under the ‘buy’ (Indian) category.

The Army’s procurement of 1,000 surveillance copters through fast track procedure under emergency procurement process is also aimed at boosting surveillance along the frontier with China.

Officials said the current dynamic volatile situation along the Northern borders warrants seamless surveillance.

“For surveillance needs of the Indian Army, expeditious procurement of surveillance copters for meeting urgent operational requirements is an operational imperative, where undue/unforeseen delay is seen to be adversely impacting the capacity and preparedness of the Indian Army,” according to a brief on the programme.

It said the surveillance copter will provide aerial surveillance capability and sustained point surveillance to the Indian Army.

Surveillance Copter is an ideal multi sensor system to carry out day and night, real time reconnaissance and surveillance.

“The system will provide high resolution imagery to enable target detection, recognition, identification and accurate location of adversaries’ build up,” said an official.

The last date for submission of bids for the programme is November 17.

The Army has been ramping up its overall combat capabilities in view of the lingering border row in eastern Ladakh.

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The Defence Acquisition Council (DAC) approved the purchase of around 400,000 close-quarter carbines “to combat the current complex paradigm” of conventional warfare, hybrid warfare and counter-terrorism at the borders, the ministry statement said. An Acceptance of Necessity (AoN) is the first step in any defence procurement process.

The close-quarter carbines will be for front-line soldiers deployed along India’s borders, including the Line of Actual Control (LAC) with China, where the two countries have been locked in a tense standoff since May 2020.

The central government is planning to indigenously manufacture carbine for the army, navy and air force and has currently put its deal with UAE on the side. It is yet another effort by the government to promote the vision of ‘Atmanirbhar Bharat’ and pushing India to gain its foothold in defence manufacturing.

Earlier the Indian army was planning to buy Carbine from the United Arab Emirates (UAE). Keeping it aside for the moment, about 4.2 lakh carbines are to be made in India for the army, navy and air force collectively.

The defence minister was tight-lipped on whether the procurement will be through the ‘Buy Indian’ category or through the Indigenously Designed, Developed and Manufactured (IDDM) route. Initial estimates suggest that the allocation for the project is going to be over Rs 5,000 crore. It is likely that the production of over 4 lakh carbines and their contract will be allotted to two manufacturers from the private or public sector. 

Procuring through the Buy Indian category will mean that several foreign companies who either have or will have joint ventures with Indian firms will be participating.

Under Indigenous Design, Development & Manufacture (IDDM), the competition would have been between only three firms, out of which only one would have been a private firm.

The likely calibre requirement will be the 5.56×45 NATO, and not the 5.56×45 INSAS. While the former is the one used globally, the latter is a slightly different calibre used by India for its INSAS series of rifles, which will be replaced by the AK 203. It is learnt that the carbines may be limited to is likely to be a maximum 3.2 kg.

The main companies in contention will be Bengaluru-based private defence firm SSS Defence, PLR of the Adani Group, the Ordnance Factory Board (OFB), Kalyani Group — which has a tie-up with French firm Thales but is also in talks with the Defence Research and Development Organisation (DRDO) —  the Jindal Group, which has tied up with a Brazilian firm called Taurus, and Neco Desert Tech, a joint venture between Indian and American firms.

However, if the deal is opened up to non-locally manufactured carbines, then more companies will participate on the condition that they will set up a manufacturing base in India if they bag the contract.

SSS Defence could offer its indigenously built M72 Carbine while PLR is likely to present its Galil Ace. PLR has tied up with Israel Weapon Industries (IWI) and is already manufacturing various small arms in India. The Kalyani Group is likely to tie up with DRDO for the project, while OFB will be offering its own product.

If the competition opens up, the UAE’s state-owned firm Caracal, which had emerged as the lowest bidder for a now-junked fast-track procurement (FTP), will also throw in its hat. While the firm was initially in talks with Reliance Defence for a tie-up, the deal did not go through.

Background

The Army has been trying to acquire the CQB carbines since 2008 to replace its outdated and ageing 9mm British Sterling 1A1 submachine guns that are in service. Both DRDO and OFB had failed to meet the Army’s requirements back then, and a global tender for procurement of 44,618 CQB Carbines was issued in 2011.

While four companies — Israel’s IWI, Italian Beretta, and American firms Colt and Sig Sauer — participated, only IWI qualified as the other contenders could not meet the qualitative requirements pertaining to the night vision mounting system.

But the defence ministry did not go ahead with IWI because it had become a single vendor case, which, according to the government’s procurement manual, is not allowed.

In 2017, a global RFI — a process initiated to gather information on what is available in the market — was issued for the purchase of 2 lakh carbines, while a separate process was rolled out to procure 93,895 under FTP.

Caracal had emerged as the lowest bidder but the contract for its CAR 816 had run into rough weather over a number of issues including costs and complaints from other bidders.

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In a statement 0n 6 June, the Ministry of Defence said the DAC, at a meeting chaired by Defence Minister Rajnath Singh, “accorded Acceptance of Necessity (AoN) for Capital Acquisition Proposals of the Armed Forces amounting to Rs 76,390 crore under ‘Buy (Indian)’, ‘Buy & Make (Indian)’ and ‘Buy (Indian-IDDM)’ categories”. This, it said, follows Prime Minister Narendra Modi’s “clarion call for ‘Aatmanirbharta’.”

The planned next generation corvettes will be the first time that the warships will be designed entirely by the Navy’s Directorate of Naval Design and executed by an Indian shipyard through a competitive bid — this means that the private industry will also be allowed to bid, unlike earlier when a shipyard was nominated. The new warships will eventually replace the Khukri and Kora class corvettes.

“For the Indian Navy, the DAC accorded AoN for procurement of Next Generation Corvettes (NGC) at an estimated cost of approx. Rs 36,000 crore. These NGCs will be versatile platforms for a variety of roles viz. surveillance missions, escort operations, deterrence, Surface Action Group (SAG) operations, Search & Attack and Coastal Defence. These NGCs would be constructed based on the new in-house design of the Indian Navy using the latest technology of ship building and would contribute to further the Government’s initiative of SAGAR (Security and Growth for All in the Region),” the Ministry said.

“For the Indian Army, the DAC accorded fresh AoNs for procurement of Rough Terrain Fork Lift Trucks (RTFLTs), Bridge Laying Tanks (BLTs), Wheeled Armoured Fighting Vehicles (Wh AFVs) with Anti-Tank Guided Missiles (ATGMs) and Weapon Locating Radars (WLRs) through domestic sources with emphasis on indigenous design and development,” it said.

“The DAC accorded AoNs for manufacture of Dornier aircraft and Su-30 MKI aero-engines by the Navratna CPSE M/s Hindustan Aeronautics Limited with focus on enhancing indigenisation, particularly in indigenising aero-engine material,” the Ministry said.

“In pursuance of the Government’s vision for digital transformation in Defence, ‘Digital Coast Guard’ project under ‘Buy (Indian)’ Category has been approved by the DAC. Under this project, a pan India secure network for digitising of various surface and aviation operations, logistics, finance and HR processes in Coast Guard will be established,” it said.

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During the short meeting, held ‘virtually,’ as the defence minister was down with Covid, the issue of procurement under Buy (Global) category came up for discussion during the DAC meeting. It was decided to firmly push indigenisation or as the government said, Atmanirbharata. The Army’s plan to buy Quick Reaction Surface to Air Missiles (QR SAM) has been turned from a Buy Global to a Buy Indian order. This means that only Indian firms will be able to supply the three regiments of QR SAMs to the Army’s air-defence system.

A similar decision has been taken for the Articulated All Terrain Vehicles which can be used in high-altitude areas. All 18 of them will be purchased from Indian vendors. This was initially a Buy Global case. The decision about light machine guns for the Army followed a similar pattern. This will also be Buy and Make Indian.

Under the Buy (Global) category, procurement is done directly from the foreign Original Equipment Manufacturer (OEM). The decision taken will not impact deals already inked under the Buy (Global) route, those being pursued under the government-to-government route and the Foreign Military sales (FMS) route with the US.

Foreign OEMs are now welcome to tie up with Indian firms or set up their own factories to not only supply the Indian military but also for other countries.

The defence services were earlier asked to prepare a list of procurement plans from abroad that could be replaced by indigenous items. Accordingly, each service — Army, Navy, Air Force and Coast Guard — had come forward with a list of such items.

The items in Question

One mega deal in this list was the procurement of 14 twin-engine helicopters, for which French firm Airbus was the prime contender. A decision has been taken to shelve this project in favour of the naval utility helicopter (NUH) of the state-run Hindustan Aeronautics Limited (HAL). However, it was not immediately clear what happened to the $3 billion project of the Navy to procure 111 new helicopters of the same class (that is, NUHs).

The Army will now go in for indigenous ATVs that will come handy in both the desert and mountains.

A project to acquire short range missiles from abroad has also been shelved in favour of the Make in India route.

Push for Make in India

Prime Minister Narendra Modi and Defence Minister Rajnath Singh have been emphasising on indigenous defence products. These issues came up for discussion multiple times and the forces were also amenable to this, since alternate items were already available domestically and foreign companies were willing to set up facilities in the country.

Singh, in his talks with his Russian counterpart Sergei Shoigu, made it clear that the way forward was Make in India. Similarly, during his meeting with French Defence Minister Florence Parly, Singh had called on French firms to “either collaborate with Indian companies or simply produce in India”.

This initiative from the government comes at a time when the Centre is coming up with the new Defence Production and Export Promotion Policy which will lay down the way ahead for strengthening defence production within the country and help in their export to friendly foreign countries.

The initiative came after Prime Minister Modi took a review meeting with the Defence Ministry officials including the then Chief of Defence Staff General Bipin Rawat where it was felt that strong measures will have to be taken to ensure that country moves firmly towards Aatmanirbhar Bharat in the defence sector. After the meeting took place, an Additional Secretary-rank officer of the Defence Ministry wrote a note to the three Services saying that “All stakeholders may take an in-principle call that no import of defence items is going forward.”

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During the short meeting, held ‘virtually,’ as the defence minister was down with Covid, the issue of procurement under Buy (Global) category came up for discussion during the DAC meeting. It was decided to firmly push indigenisation or as the government said, Atmanirbharata. The Army plan to buy QR SAMs or Quick Reaction Surface to Air Missiles has been turned from a Buy Global to a Buy Indian order. This means that only Indian firms will be able to supply the three regiments of QR SAMs to the Army’s air-defence system.

A similar decision has been taken for the Articulated All Terrain Vehicles which can be used in high-altitude areas. All 18 of them will be purchased from Indian vendors. This was initially a Buy Global case. The decision about light machine guns for the Army followed a similar pattern. This will also be Buy and Make Indian.

There are, of course, weaponry that are urgently needed and cannot be immediately made in India like tank engines, gun-missile systems, high-quality rifles, not to speak of fighter planes like the Rafale. These issues will again come up for discussion in the next DAC meetings on January 20 and 21.

Under the Buy (Global) category, procurement is done directly from the foreign Original Equipment Manufacturer (OEM). The decision taken will not impact deals already inked under the Buy (Global) route, those being pursued under the government-to-government route and the Foreign Military sales (FMS) route with the US.

Foreign OEMs are now welcome to tie up with Indian firms or set up their own factories to not only supply the Indian military but also for other countries.

The defence services were earlier asked to prepare a list of procurement plans from abroad that could be replaced by indigenous items. Accordingly, each service — Army, Navy, Air Force and Coast Guard — had come forward with a list of such items.

The items in question

One mega deal in this list was the procurement of 14 twin-engine helicopters, for which French firm Airbus was the prime contender. A decision has been taken to shelve this project in favour of the naval utility helicopter (NUH) of the state-run Hindustan Aeronautics Limited (HAL). However, it was not immediately clear what happened to the $3 billion project of the Navy to procure 111 new helicopters of the same class (that is, NUHs).

The Army will now go in for indigenous ATVs that will come handy in both the desert and mountains.

A project to acquire short range missiles from abroad has also been shelved in favour of the Make in India route.

Push for Make in India

Prime Minister Narendra Modi and Defence Minister Rajnath Singh have been emphasising on indigenous defence products. These issues came up for discussion multiple times and the forces were also amenable to this, since alternate items were already available domestically and foreign companies were willing to set up facilities in the country.

Singh, in his talks with his Russian counterpart Sergei Shoigu, made it clear that the way forward was Make in India. Similarly, during his meeting with French Defence Minister Florence Parly, Singh had called on French firms to “either collaborate with Indian companies or simply produce in India”.

This initiative from the government comes at a time when the Centre is coming up with the new Defence Production and Export Promotion Policy which will lay down the way ahead for strengthening defence production within the country and help in their export to friendly foreign countries.

The initiative came after Prime Minister Modi took a review meeting with the Defence Ministry officials including the then Chief of Defence Staff General Bipin Rawat where it was felt that strong measures will have to be taken to ensure that country moves firmly towards Aatmanirbhar Bharat in the defence sector. After the meeting took place, an Additional Secretary-rank officer of the Defence Ministry wrote a note to the three Services saying that “All stakeholders may take an in-principle call that no import of defence items is going forward.”

The Prime Minister has been personally reviewing the progress of Make in India in the defence sector and has from time to time asked officials in both services and the Defence Ministry to ensure that more steps are taken to promote Make in India in defence.

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