IKB-DEF-MAY 03, 2015 - Indicia Research & Advisory

Indicia Knowledge Brief
A Daily Assessment on Indian Defence and Internal/Homeland Security
May 03, 2015.
Primary aims of Indicia Daily Brief are two-fold. First, it distills infinite information into a
capsule form, thus saving precious time of its clients. Second, it tries to link micro-events
to larger strategic canvas through its analyses, thus providing support knowledge for
better understanding and decision-making.
Indicia Analysis of the Day
The defence ministry is planning major changes in the way it procures
military equipment, seeking to link the offsets policy with Prime Minister
Narendra Modi's 'Make in India' campaign after foreign suppliers
repeatedly failed to meet the stringent conditions and ended up blocking
investments of several hundred million dollars in the sector.
A cumbersome process for military procurements could well be the
reason for India’s missing out on "the mother of all deals" for purchasing
126 combat jets. This is among the primary reasons why the defence
ministry is seeking a revision in its procurement policy.
I. National Defence and Security:
Defence Ministry planning major changes in defence procurement; seeks to
link offsets policy with 'Make in India':
The defence ministry is planning major changes in the way it procures military
equipment,seeking to link the offsets policy with Prime Minister Narendra
Modi's 'Make in India' campaign after foreign suppliers repeatedly failed to meet
the stringent conditions and ended up blocking investments of several hundred
million dollars in the sector. The ministry is finalising a "directed offsets" policy
that will require foreign companies to set up manufacturing bases in India,
officials said. They added that the move stems from an acknowledgement that
the stringent offsets policy that requires foreign firms to invest at least 30 per
cent of the contract value in India has not spurred domestic manufacturing to the
extent desired while the overseas suppliers have accumulated over $35 million
in fines over the past few years. Foreign firms were able to invest just $676
million in India between 2008 and 2014 against the mandated $1.3 billion.
Outlining the new offsets policy, Defence Secretary RK Mathur said that the
government is considering a directed offsets policy,as per which the foreign
vendor will be mandated to manufacture a part of the system being procured
under the Make in India programme.This will be initially applicable to large
contracts that involve the procurement of major platforms. "For example, if I am
buying Sukhoi, I would link it up with'Make in India' procedure and say that the
Sukhoi manufacturing company must invest in India, with Indian companies, to
manufacture the spare parts or components of Sukhoi itself, "Mathur explained
to a Parliament panel. The 36-Rafale fighters deal with France will be the first
major programme that is likely to follow the new policy. The ministry is likely to
insist that at least 30 per cent of the value of the contract be used to set up
manufacturing units in India. As reported, one option is to order a larger number
of Rafale fighters with an Indian joint venture partner. Under the original offsets
policy,the winning vendor had the liberty to choose its partners to discharge the
offset obligations and very often ended up investing in unrelated projects - such
as a wind tunnel facility as an offset for the purchase of a military transport
aircraft. By taking the power of directing the incoming investments to a
particular area, the ministry will have the authority to get the particular
technology that it requires. Experts believe that the existing policy has not
enabled Indian companies to unleash their potential in the global market. "A
limited number of Indian companies have indeed become apart of the global
supply chain of OEMs(original equipment manufacturers) and can now boast of
world-class infrastructure and credentials. However the impact of the offset
policy has not been to the desired depth and width," said Ankur Gupta of
E&YIndia.
Source: http://timesofindia.indiatimes.com/india/Defence-Ministry-planning-major-changes-in-defenceprocurement-seeks-to-link-offsets-policy-with-Make-in-India/articleshow/47128754.cms
*
Saved! The Indian Military is here!:
India and its impressive airlift, sealift and trained human resource are
contributing their mite to a large number of disaster relief missions. In quick
succession we have had the Uttarakhand cloudburst, the Srinagar floods, the war
in Yemen, and now the earthquake in Nepal. And the way mother nature is
wreaking havoc, and humankind is contributing to that with violence and
environmental degradation, India’s formidable Humanitarian Assistance and
Disaster Relief (HADR) capability is sure to be frequently tested to its limits. It is
only right that we respond to the unofficial mantle that we have acquired of
being the regional provider of such assistance and relief with alacrity every time
we are called upon to do so. ‘War is a continuation of policy by other means’, was
19th century Prussian General Carl Von Clausewitz’s oft-cited dictum. But in the
21st century, great nations are seeking influence not just through arms but
increasingly through the exercise of ‘soft power’. And increasingly, even the
hardest element of traditional ‘hard power’ – the military – is also a big
instrument in the pursuit of ‘soft power’. India’s HADR record is already pretty
impressive. Think back to the 2004 tsunami relief and the 2001 Bhuj earthquake
response -- aid was delivered to millions in both instances. With Operation
Raahat following the Uttarakhand cloudburst in 2013 and Megh Raahat following
the Srinagar floods last year, and especially with the Yemen evacuation (Raahat,
again) and now Nepal, India has come of age as the region’s Big Brother, one with
a big heart and capability! The first responder to a crisis has always been air
power, due to its inherent attributes of speed, reach, mobility and flexibility.
Thus, while the Il-78 aerial flight refueling tankers were modified to cargo
carriers to augment airlift capacity during the tsunami, in the Uttarakhand relief
operation, Mi-26 helicopters flew in fuel trucks and C-130 transport planes
emptied their fuel into these trucks so that they could tank up rescue choppers
for their missions – such is the flexibility of air power. Since then, the Indian
capability has increased further – unlike during the tsunami, for the Nepal relief
operations, the IAF has spare C-17 and Il-76 transport aircraft that it can deploy
if the need arises. Similarly, the helicopter fleet has been strengthened with the
addition of 159 Mi-17 medium-lift helicopters. These new transport planes and
helicopters have modern avionics that help them to operate in adverse weather
conditions which are generally prevalent in disaster areas. When the American
Chinook helicopters arrive, they will fill the heavy-lift capability gap. The civil
airline fleet is a major element of the air power of a nation, and here too the
Indian commercial fleet has robust capability. Just Air India, whose aircraft were
deployed to airlift Indians out of Iraq in the first Gulf War in 1990, brought
176,000 Indians back home in a 45-day period! Similarly, the national carrier
earned kudos in the Yemen airlift and Nepal. Imagine if the full force of private
airlines in India is put to a task! The Navy has tremendous sea-lift capability, and
India has a winner in the National Disaster Response Force (NDRF) which has
specialist personnel and rescue equipment and has earned plaudits from all
quarters for its work in the Fukushima tragedy and in Nepal. And, of course, the
ever dependable Indian Army has never let the country down when called upon
to help neighbours in India’s quest to assist them. However, the National Disaster
Management Authority, which is the nodal agency to coordinate HADR activity,
was conspicuous by its absence during the Uttarakhand relief operations for
which it was roundly berated. In the event, the situation was retrieved by the
armed forces, which provided immediate relief and rescue. In Srinagar, too,
while the armed forces were everywhere, the civil administration was nowhere
to be seen. A similar absence of civil authority has been noticed in Nepal. Why
does the civil authority seem to come up short every time? The answer lies in the
fact that the civil administration is itself affected by the tragedy and its personnel
abdicate their larger duty of tending to the masses in favour of attending to their
personal losses. This is a problem that needs to be addressed. Perhaps the
solution can be found in the way the Indian Air Force handled the 2001 Bhuj
earthquake and the 2004 tsunami. In Bhuj, the IAF airbase itself had 95 dead and
around 100 injured, while in the tsunami, Car Nicobar island air force station had
116 dead and scores wounded. In both events, the survivors were severely
traumatized but held on to their posts to direct initial efforts. Both airbases were
the nodal points at which aid poured in and was to be delivered. The IAF’s
solution was to bring in fresh personnel; in Car Nicobar, the full complement was
replaced to generate momentum in the rescue and rebuilding effort....
Source: http://www.asianage.com/editorial/saved-indian-military-here-207
*
Indo-French Naval exercises off Goa coast concludes:
Goa Chief Minister Laxmikant Parsekar witnessed four-hour long naval
manoeuvring between Indian Navy and its French counterpart off Goa coast on
May 02- the concluding day of 'Varuna' exercises. Parsekar along with the
officials of French Embassy and Navies saw the aircrafts landing and parading
sitting on French Naval aircraft carrier Charles de Gaulle, which is leading the
group for the western country. The exercises had began on April 23 off Goa coast
with around 16 hours of practise between both the navies to understand each
others' strength, and also sync the understanding during the emergency times.
"This was very good week for Indo-French relations. We have a range of
cooperation which are moving forward. This time French and Indian Navy are
working together," said French Ambassador Francois Richier, talking to PTI after
participating in the VIP day on board the aircraft carrier. "Today we went
together with the Chief Minister of Goa and range of navy officers to participate
in the VIP day. We were watching the activity from the aircraft carrier. We could
see Indian and French navies parading together," he said. Parsekar told PTI that
it was unique experience to see the might of two navies and how they are
working in precision. The French side is headed by aircraft carrier Carrier
Charles de Gaulle, two destroyers namely Chevalier Paul and Jean de Vienne,
replenishment tanker Meuse and a maritime patrol aircraft Atlantique 2. The
aircraft carrier Charles de Gaulle is carrying its complement of fighter aircraft
Rafale M, strike aircraft Super Etendard, E2C Hawkeye AWACS and helicopters
Dauphin and Alouette 3. While Indian side has aircraft carrier INS Viraat,
destroyer Mumbai, stealth frigate Tarkash, guided missile frigate Gomati,
replenishment tanker Deepak, submarine Shankul and a few Fast Attack Craft....
Source:
http://zeenews.india.com/news/india/indo-french-naval-exercises-off-goa-coastconcludes_1588902.html
*
Parrikar Cancels Tawang Visit Due to Bad Weather:
Defence Minister Manohar Parrikar on May 02 cancelled his visit to Tawang on
the India-China border in Arunachal Pradesh due to inclement weather, defence
sources said. Parrikar was scheduled to fly to Tawang from Rangya, in Assam, to
grace the second day of the three-day Tawang festival and meet the troops
deployed there but had to cancel the visit. “Twice he attempted to fly but
cancelled the visit due to the unfavourable climate,” defence spokesman Sombit
Ghosh told Express. Later, he flew to Arunachal capital Itanagar and met the
state Governor and Chief Minister. Earlier, he reviewed the security situation in
Western Assam. Senior Army officials briefed him of the ongoing operations
against the NDFB(Songbijit) faction, which was responsible for the killings of
Adivasis last year. The minister expressed his satisfaction on the progress of the
operations and also appreciated the efforts made by the formation to
dynamically review and alter its tactics to counter the rapidly changing situation
in the state, a defence sources said. Army chief Gen Dalbir Singh, General Officer
Commanding of Eastern Command Lt Gen M M S Rai, General Officer
Commanding of 4 Corps Lt Gen Sarath Chand and General Officer Commanding of
Red Horns Division Maj Gen C P Mohanty attended the meeting.
Source:
http://www.newindianexpress.com/nation/Parrikar-Cancels-Tawang-Visit-Due-to-BadWeather/2015/05/03/article2794760.ece
*
India's military procurement process blamed for Rafale bungle:
A cumbersome process for military procurements has been blamed by a
parliamentary panel for India missing out on "the mother of all deals" for
purchasing 126 combat jets, instead of which only 36 will be bought from the
same French manufacturer. "It is observed that the deal for 126 aircraft with the
France-based Rafale company could not be finalized. The committee feels this is
attributable to the long gestation period of the Defence Procurement Procedure
(DPP)," Parliament's Standing Committee on Defence said in its report tabled
earlier this week. The committee, headed by Maj. Gen. B.C. Khanduri (retd) of the
BJP, hoped that the changes in the DPP that are due this year will remove such
shortcomings. The deal for purchasing 36 Rafale combat jets in fly-away
condition was inked during Prime Minister Narendra Modi's visit to France last
month. The Rafale had, in 2012, received the Indian Air Force (IAF) nod for 126
jets in a $12 billion deal in the face of stiff competition from five other
manufacturers. Sixteen were to be bought off the shelf and the remaining
manufactured in India by Hindustan Aeronautics Limited (HAL) under a transfer
of technology agreement. However, differences over the price and the
"ownership" of the HAL-manufactured planes had prevented the closure of the
deal. The IAF had expressed an urgent need for the 126 medium multi-role
combat jets to primarily replace its agening fleet of Soviet-era MiG-21 planes and
to plug the gap caused by the delay in the development of the indigenous Tejas
light combat aircraft (LCA). The IAF currently has 33 combat squadrons against a
sanctioned strength of 39.5, which is sought to be raised to 42. (The committee,
in a separate report, had said that by 2022, the IAF will have just 25 squadrons,
losing "even the slight edge over a rival neighbouring nation" - read Pakistan.)
"The committee hopes that the new Defence Procurement Procedure shall plug
the loopholes in the existing policy and make it more productive without time
and cost overrun," the panel said. According to defence ministry officials,
changes are due in the DPP, which was last revised in 2013. Defence Minister
Manohar Parrikar has also stated that "major changes" are expected in the DPP.
Ministry officials said the changes will focus on four broad areas, one of them
being the way to address complaints, as even anonymous and unsigned
complaints often delay the procurement procedure. "We keep on getting a large
number of complaints signed, unsigned, pseudonymous, anonymous and so on.
Frequently, the practice has been that the minute you get a complaint, you freeze
and stop moving on that procurement," a ministry official said, adding this will
be addressed in the revised document. The other issues include redefining the
procedure for blacklisting a company and making it more nuanced and changes
in the offsets' policy. "We are working on the offsets' policy, which we have
found is not effective, and in most cases we are being forced to make
dispensations or give concessions to the foreign vendor because of flaws in the
policy," a ministry official said. Another major change would be to modify the
"Make procedure" in the DPP which is "not yielding results", an official said.
Under this, 80% of the research funding for a project would be provided by the
Indian government to a foreign government or private vendor to develop a
particular product in return for an assured order over a certain period so that it
becomes commercially viable for the developer.
Source: http://www.hindustantimes.com/india-news/india-s-military-procurement-process-blamed-forrafale-bungle/article1-1343524.aspx
*
Very few women in para forces:
The government may talk tall about the efforts being made to increase the
number of women in the police, but the numbers tell a different tale. Women
form a meagre 2.15 per cent of the country's 8.87-lakh-strong paramilitary
forces. Minister of State for Home Kiren Rijiju said directions have been issued
to the six forces to bring the ratio to 5 per cent, as directed by a Parliamentary
committee. However, at present, there is no proposal to increase the ratio of
women in the paramilitary forces to 33 per cent. Of the total personnel, Rijiju
said in a reply in Lok Sabha, only 19,098 are women. The CISF has the highest
ratio of 4.89 per cent—6,203 out of 1.26 lakh, while the Assam Rifles has the
least at 0.74 per cent—485 out of 65,609. The CRPF, the country's largest
paramilitary force, has 6,120 women—2.13 per cent—in its 2.86-lakh-strong
force. The numbers in the other forces are dismal, with the SSB having 1,186, the
ITBP 1,570 and the BSF 3,534 women personnel. Rijiju said the government has
taken steps to increase the numbers, including approving the recruitment of
2,772 women personnel in the SSB in the next four fiscals. The CRPF will also
raise two women battalions. The government has also formulated a 10-point
plan to encourage women to join the paramilitary forces, which include
exemption of application fee, and relaxation in Physical Standard Test and
Physical Efficiency Test for all women candidates. The forces have provided
crèches and day-care centres to women personnel, he said.
Source: http://www.deccanherald.com/content/475507/very-few-women-para-forces.html
*
Defence Minister Quells Mutiny with a Bounty:
At a time when the Indian Army is fighting a court battle over its promotion
policy, Defence Minister Manohar Parrikar has saved himself and his ministry
from a major embarrassment by nipping in the bud a discontent brewing among
the 50 top Indian Coast Guard officers. Upset at not getting their dues and tired
of being ignored for the past six years, these officers were all set to take the legal
recourse to address their grievances. The government is already fighting a case
defending the Army’s “command and exit” promotion policy of 2009, which has
widened the rift within the service as it is skewed in favour of officers from
infantry and artillery. In March this year, the Armed Forces Tribunal quashed the
2009 policy, but the Centre has taken the matter to the Supreme Court, arguing
that this policy is the only way to ensure a younger force. The government said
the age profile of unit commanders in Pakistan and China was 35 and 40 years,
respectively, and thus, that of Indian battalion commanders also needed to be
brought down. With regard to the Indian Coast Guard promotion policy, it all
started in 2008. The UPA government in its sixth pay commission
recommendations approved a Modified Assured Career Progression Scheme
(MACPS) for the Indian Coast Guard officers. However, due to a technical flaw in
the order, it could not be implemented by the Coast Guard Headquarters. Under
the new MACPS scheme, around 50 officers of the Indian Coast Guard, who
joined service by 1990 and were subsequently promoted to the rank of
Commandant by 2002, were to be the beneficiaries. So a group of 15 officers
made several representations before their respective Zone headquarters and
subsequently to the Coast Guard headquarters in New Delhi. Finally, in
September 2013, the Coast Guard headquarters turned down the petition. The
officers then wrote to the then defence minister A K Antony. Antony’s office sat
on their representation and did not take any remedial measures. The Coast
Guard officers in February this year once again approached the office of the
Defence minister. Finally, losing patience they resorted to file RTI and sought
response from the ministry over their petition. “We had no other option but to
take legal recourse after being unheard for such a long period. But now the
minister has intervened and accepted to give our dues,” said one of the
petitioners, on the condition of anonymity. Parrikar anticipated the mood of the
officers and sought a detailed report from the Coast Guard headquarters on the
matter. After extensive briefing and taking legal opinion, on 27 April, he issued
an order for implementation of the MACP scheme. Ever since he took charge,
Parrikar has been making efforts to reduce the legal cases pertaining to Armed
Forces. He believes “our soldiers should not spend time fighting legal battles in
court. Instead they should be on the border”. A top defence ministry official said
this was a major decision by the minister, especially at a time, when
approximately 15,000 cases related to Armed Forces are pending in various
courts and Armed Forces Tribunals across the country. Moreover, already the
Army’s controversial “command and exit policy”, faces the threat of being
scrapped. The Apex Court took an adverse stand on it after the defence ministry
failed to produce the policy acceptance letter despite repeated requests. The
Army’s 2009 promotion policy was based the recommendation of the committee
headed by former defence secretary Ajay Vikram Singh. The panel looked into
lowering the age profile of commanding officers after the 1999 Kargil war. The
policy has created a disproportionate amount of new ranks for the infantry and
artillery against other branches such as the armoured corps, signals, engineering
and mechanised infantry.
The Story So Far
Indian Coast Guard:
Over 50 Coast Guard officers have been fighting for implementation of a new
promotion policy since 2009. They made several representations and petitions
but to no avail. Due to technical reasons, the policy could not be implemented. A
group of 15 senior officers then made representations against the Coast Guard’s
decision. Finally on April 27, after a fight of over six years, Parrikar issued
instructions to implement the promotion scheme. The new policy allows 3
financial upgradation counted from the direct entry grade on completion of 10,
20 and 30 years of service. Financial upgradation under the scheme will be
admissible whenever an officer has spent 10 years of continuous service....
Source: http://www.newindianexpress.com/thesundaystandard/Defence-Minister-Quells-Mutiny-with-aBounty/2015/05/03/article2794194.ece
*
India and France to discuss Rafale Trainers and additional
option Clause:
French Defence Minister Jean-Yves Le Drian is expected to lay the groundwork
for the negotiations for the formal purchase of Rafale fighter jets from French
firm Dassault during his India visit next week. But the signing of a formal
contract will not happen just yet, India air force has asked for trainer variants of
Rafale fighter jets to be included into 36 fighter jets ordered by PM Modi so that
it can be used for Pilot training for unit conversion. Prime minister Narinder
Modi in France placed an order for 36 Rafale Fighter jets which will be brought
in G2G deal, but there was no clarity on how many of the jets ordered will be
Single and twin seater variants, which most likely will be discussed in meeting .
idrw.org is hearing figure of 6 Trainer variants along with 30 Single seater
variants from its sources but final figure will be disclosed after meeting . India
will also tell France how much of Rafale fighter jets can be added as follow-on
option in the contract which can be brought under same contract and same price
within set time frame which also likely will be brought under G2G deal as
clarified by Defence minister Manohar parrikar .
Source: http://idrw.org/india-and-france-to-discuss-rafale-trainers-and-additional-option-clause/
*
“Navy Model” to Save Indian Air force?
Government of India is all set to review defence procurement procedure for the
Indian armed forces. Defence Minister Manohar Parrikar already has asked
Armed forces to exercise financial prudence and the services should optimise all
available resources. Government and Indian air force are working on a long-term
integrated perspective plan which “ought to encompass 25 years which includes
more Indigenisation and also select more private players to create Competitive
enviroment in Indian Aerospace Business. Dubbed as ” Navy Model ” Which
allowed Indian Navy succeed in Indigenisation of many weapons systems where
Indian navy worked with Defence PSU’s not only as Customer but also as a
Developer allowed India Navy use its smaller budget which resulted into better
utilisation of resources to expand its fleet . Emulation of Navy Model will mean
Indian air force needs to become less Import friendly force and more
Indigenisation friendly. IAF will also need to be more involved with Defence
manufacturers....
Source: http://idrw.org/navy-model-to-save-indian-air-force/
II
Homeland Security
*
Militant killed in encounter in Meghalaya:
A top militant leader of the Achik Matgrik Elite Force (AMEF) was on May 02
killed in a heavy gun battle with the security force in a remote village of
Meghalaya's North Garo Hills District, police said. Commander-in-Chief of the
AMEF, Jack Marcus was gunned down by a joint operation team of North Garo
Hills District and East Garo Hills District police at Mandadrop at about 6.30 AM, a
senior police official said. Police acted on a tip off about the presence of some
militants in the area, he said. According to the official, police recovered one AK
47 rifle with two magazines, 49 cartridges, one 9mm pistol with one magazine,
one empty case and 4 live rounds of 9mm, one magazine of 7.62 pistol with two
live rounds, 14 electric detonators, 4 metres fuse wire and 8 pieces of gelatin
sticks besides demand notes, diaries and SIM cards from the spot. "Marak was a
former Area Commander of the Garo National Liberation Army (GNLA)," he said.
According to him, when he was in the GNLA, Marak was instrumental behind the
kidnapping of a block development officer of Daddengre in 2011. Later he joined
another outfit and was instrumental in the kidnap of SBI cashier from Gasuapara
last year. "He parted ways and formed AMEF and was involved in a series of
kidnap and killing in Dainadubi areas," the official said.
Source:
meghalaya_1588884.html
http://zeenews.india.com/news/north-east/militant-killed-in-encounter-in-
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