IKB-DEF-MAY 16, 2015 - Indicia Research & Advisory

Indicia Knowledge Brief
A Daily Assessment on Indian Defence and Internal/Homeland Security
May 16, 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 NDA government has cleared around 40 new defence acquisition
proposals, worth over Rs 1 lakh crore, setting a scorching pace over the
last one year. It has also revived several long-pending mega projects,
which were virtually stuck in files during A K Antony's eight years at the
helm in the defence ministry.
Ahead new US Defence Secretary Ashton Carter's visit to India, the House
of Representatives on passed an amendment calling for expansion of the
Indo-US defence cooperation and welcoming India's role in providing
security in the Indo-Pacific region and beyond.
The acquisition of 145 M-777 Ultra-Light Howitzers (ULH) of BAE
Systems may have got clearance by the Defence Acquisition Council
headed by defence minister Manohar Parrikar, but a long process has to
be underway before any order could be placed.
I. National Defence and Security:
In first year, Modi govt cleared defence proposals worth Rs 1L crore:
The NDA government has cleared around 40 new defence acquisition proposals,
worth over Rs 1 lakh crore, setting a scorching pace over the last one year. It has
also revived several long-pending mega projects, which were virtually stuck in
files during A K Antony's eight years at the helm in the defence ministry. But the
follow-through has been relatively slow to ensure the proposals swiftly head
towards inking of actual contracts or turn into concrete projects on the ground.
The new much-touted defence procurement policy (DPP) is yet to be finalised,
there is still some uncertainty over the entire "Make in India" thrust, and the
annual defence budget has not registered any concrete hike. "There is much
faster decision-making at the top, either in approving or scrapping
modernisation proposals. But the bureaucratic bottle-necks remain and the
procedures are yet to be streamlined," said a senior official. But a committee of
civil and military experts, which includes former home secretary Dhirendra
Singh and former MoD director-general of acquisitions Satish Agnihotri, is now
reviewing the changes in the new proposed DPP....
Source:
http://timesofindia.indiatimes.com/india/In-first-year-Modi-govt-cleared-defence-proposalsworth-Rs-1L-crore/articleshow/47304111.cms
*
US House calls for expansion of India-US defence cooperation:
Ahead new US Defence Secretary Ashton Carter's visit to India, the House of
Representatives on May 16 passed an amendment calling for expansion of the
Indo-US defence cooperation and welcoming India's role in providing security in
the Indo-Pacific region and beyond. The amendment to the National Defense
Authorisation Act ( NDAA) 2016 was moved by a bipartisan group of
Congressmen including Joe Crowley, Vice Chair of the Democratic Caucus; Eliot
Engel, Ranking Member of House Foreign Affairs Committee; Ed Royce,
Chairman of the House Foreign Affairs Committee; and the two Co-Chairs of the
Congressional Caucus on India and Indian Americans Ami Bera and George
Holding. In addition to urging an overall expansion in defence ties, the
amendment specifically calls for the US to welcome the role India plays in
providing security and stability in the Indo-Pacific region and beyond. It urges
the US government to work cooperatively with India on matters relating to
common defence, vigorously support the implementation of the US-India
Defense Framework Agreement, as well as support the India Defense Trade and
Technology Initiative ( DTTI). This was the first vote held by the House on USIndia since the 2014 Indian elections, and comes on the heels of the defense
framework advanced by US President Barack Obama and Prime Minister
Narendra Modi in January.....
Source:
http://economictimes.indiatimes.com/news/defence/us-house-calls-for-expansion-of-india-usdefence-cooperation/articleshow/47300464.cms
*
Border Infrastructure: Modi government driving strategic
projects with radical changes:
In the idyllic Andaman and Nicobar islands - fast emerging as India's strategic
and economic arm into the Indian Ocean - a small strip of sea separates Port
Blair from the small but upcoming town of Bamboo Flat. On the mainland, up
North the Jammu-Akhnoor road has for years been a choking point for traffic
heading up to Poonch, including military convoys that service troops along the
Line of Control. In the Northeast, trade connections with Myanmar and
Bangladesh have for decades been held ransom to shoddy roads and poor
infrastructure. A radical new approach is now being adopted to accelerate
projects to unclog these bottlenecks, along with work on hundreds of other
strategic projects, as the Narendra Modi government sharpens focus on creating
infrastructure along India's borders. From the Bharat Mala project (it envisages a
road network along India's land boundary, stretching from Gujarat to Mizoram)
to Sagar Mala (under which a coastal infrastructure will be set up along the
nation's vast shoreline), the government's intention is clear: bring about a road
and infra construction boom to help drive trade. While the idea is not new, the
approach has been different - a newly created corporation has been empowered
to execute projects worth Rs 34,300 crore and has been freed of red tape that
traditionally binds government agencies on mega projects. And, execution has
been rapid with road projects of nearly 3,200 km activated in the past year.....
Source: http://economictimes.indiatimes.com/news/economy/infrastructure/border-infrastructure-modigovernment-driving-strategic-projects-with-radical-changes/articleshow/47303236.cms
*
M777 howitzer project: BAE to select Indian partner in 2
months:
BAE Systems, the world's leading gun maker, will identify its main Make in India
partner for the M777 ultra-light howitzer project within two months, officials
said. The project, being set up as part of the recently cleared $700-million, or
about Rs 4,450-crore, deal to acquire 145 M777 howitzers for the Indian Army,
will benefit as many as 40 small and medium enterprises in the country, they
said. The US firm also plans to shift the final production unit of the howitzer to
India and that this new facility would be its hub for worldwide orders. A total of
over $200 million investments are to be made by BAE in India as part of its offset
obligations for the deal under the 'Make in India' programme. It is learnt that
BAE is in the final stages of selecting its major Indian partner that will help it set
up an assembly, integration and testing facility. Among the Indian companies
being considered as the sole partner for this facility are Tata, Mahindra, L&T,
Punj Llyod, Vem Technologies and PSU Midhani. "We have received interest from
a number of Indian companies," said John Kelly, vice president, at BAE Systems
Inc.
Source: http://economictimes.indiatimes.com/news/defence/m777-howitzer-project-bae-to-select-indianpartner-in-2-months/articleshow/47303363.cms
*
Anti-sub vessel INS Kavaratti set for launch next week:
Kavaratti, the last of the four anti -submarine warfare class stealth corvettes
being built for India under Project 28, will be launched next week. Designed by
the Directorate of Naval Design and built by Garden Reach Ship Builders and
Engineers, the contract for the construction of four P28 ships was signed in June,
2012, with the project priced at Rs 7,800 crore. The corvette, with a
displacement of 3,300 tonnes, has a lenght of 109.1 metres and measures 13.7-m
at beam. The ship is propelled by four diesel engines to achieve speeds in excess
of 25 knots and has an endurance of more than 3,400 nautical miles. Defence
sources said that about 90 per cent of Kavaratti is indigenous and the ship is
"well equipped" to fight in nuclear, chemical and biological warfare conditions.
INS Kamorta, the first ship under this project, was commissioned by the Navy
last year. Kadmatt and Kiltan are scheduled for delivery between 2015-2017.
Launching of a ship means transferring the vessel to water.
Source: http://economictimes.indiatimes.com/news/defence/anti-sub-vessel-ins-kavaratti-set-for-launchnext-week/articleshow/47299676.cms
*
India, China vow to settle border issue at earliest:
Vowing to address the boundary issue at the earliest, India and China on May 16
decided to seek a "political" solution to the vexed dispute amid Prime Minister
Narendra Modi's assertion that its resolution should transform ties without
causing "new disruptions". Modi, who held talks with his counterpart Li Keqiang,
pushed for clarifying the Line of Actual Control (LAC) without "prejudice to our
position on the boundary question", saying "a shadow of uncertainty always
hangs over the sensitive areas of the border region" as "neither side knows
where the LAC is in these areas". The Indian leader, who announced e-visa
facility for the Chinese tourists, asked Beijing to "reconsider its approach on
some issues that hold us back", an apparent reference to matters like issuance of
stapled visas to residents of Arunachal Pradesh over which China lays territorial
claim.....
Source:
http://economictimes.indiatimes.com/news/defence/india-china-vow-to-settle-border-issue-atearliest/articleshow/47297298.cms
*
BSF passing out parade: 189 jawans take oath to serve nation:
A total 189 jawans, including 43 women, on May 16 took oath to serve the nation
after the passing out parade during their convocation ceremony at the
Hoshiarpur-based training centre of the Border Security Force. After the oathtaking ceremony, meritorious candidates were awarded medals for their
performance during the training, Deputy Commandant N P Negi said. The oath to
the jawans was solemnised by BSF Punjab Frontier Deputy Inspector General
Naresh Kumar, he said.....
Source:
http://economictimes.indiatimes.com/news/defence/bsf-passing-out-parade-189-jawans-takeoath-to-serve-nation/articleshow/47311891.cms
*
India banks on trusted Russia for defence equipment - Russian
military expert:
The decision to purchase 197 ‘Kamov’ helicopters shows that the Indians
perceive the Russians as reliable, long - term partners, and that they have learnt
from the episode with the ‘Mistral’, believes military analyst Viktor Baranets.
India to buy Russian helicopters in major deal
"This is a unique machine. The Indians were very exacting during the tendering
process, checking its tactical and technical characteristics. This is a modular,
multi-functional aircraft: it can be used in fire-fighting and emergency situations,
by commandos and by medical staff. It can be easily modified for necessary tasks.
The Indians placed a high value on this,” said Baranets. “Also, the helicopter’s
other characteristics; speed, height at which it can fly, flight controls, reliability
and engine capacity; were superior to the others, including the helicopters from
the French-German concern. The Indians have made the right choice", Baranets,
said in an interview on Radio Sputnik. According to Baranets, military-technical
cooperation between the two countries is only going to become closer in the
future. "We will continue to strengthen and enhance our relations with India’s
military-industrial complex which, incidentally, is at the forefront in a number of
fields, particularly in electronics. Whatever people are saying, in the region, India
is in a very strong position,” he said. “No wonder that we turned to them to make
the internal parts for our newest T-50 fighter, and the Indians have made a
world class product", Baranets observed. Baranets is certain that India’s decision
was influenced by its history with the ‘Mistrals’. “It has affected them twice.
Initially, India wanted to buy a large batch of French fighters. And when the
French and Indians were almost shaking hands on the deal, the Indians learned
that France has taken such a provocative, I would even say vile position on the
"Mistral”, that India’s leaders openly said that we do not need such a partner,” he
said. “When the tender started for a helicopter, then, of course, this factor was
also taken into account by the Indians.”...
Source:
http://in.rbth.com/economics/2015/05/15/india_banks_on_trusted_russia_for_defence_equipment__russian_milit_43129.html
*
Why China-specific mountain strike corps has been downsized?
Cong asks Modi govt:
Congress on May 14 asked Modi government to answer why the China-specific "
mountain strike corps" of Army has been slashed by half ahead of Prime
Minister's visit to Beijing. Three weeks ago, defence ministry decided to
downsize the 90,000-strong army force that was announced by UPA to act as a
counter to the expanding Chinese military capabilities and intrusions. It was to
be raised over seven years at a budget of Rs 64,478 crore. Now, the force would
have 35,000 soldiers and the cut has been attributed to "severe fund shortage".
"Congress wants to know if the country's defence preparedness will be
compromised by this decision and whether there is a shifting of goalpost on this
key strategic issue?" AICC spokesman Randeep Surjewala asked. ...
Source:
http://timesofindia.indiatimes.com/india/Why-China-specific-mountain-strike-corps-has-beendownsized-Cong-asks-Modi-govt/articleshow/47290739.cms
*
Indian Navy Soon To Be The Most Formidable Submarine Force On
The Planet! Here's What You Need To Know:
The most important thing about having nuclear weapons is a second strike
capability. In a nuclear conflict, one who strikes first may win the war, but one
who strikes second makes sure there is no one left to celebrate the win. That’s
nuclear deterrence in a nutshell. While it sounds easy in theory, building a
nuclear doctrine with a working second strike capability is anything but. India,
for example, has declared a no-first-use of nuclear weapons. Which means, that
though India will not initiate a nuclear conflict, if attacked it will retaliate with
such ferocity, that it will wipe the enemy off the face of the map. How does India
intend to do this? Like any other superpower, India wants to use submarines. If
you think about it, submarines are the perfect weapons. Lurking in the depths of
the oceans, they move around without being detected and surface to launch the
attack on the unsuspecting enemy. Erstwhile superpowers USA and Russia
continue to use their SSBNs (ballistic missile submarines) to great effect,
projecting their might even today. These SSBNs ensure that even though the
land-based missiles and airplanes may have been taken out, the enemy is
guaranteed a sending off that it will never forget. And if India wants to be taken
seriously on the world stage, it will have to start acting like a superpower, by
being able to extend the country’s power across the globe. These submarines are
therefore just what India needs....
Source:
http://www.indiatimes.com/lifestyle/technology/indian-navy-soon-to-be-the-most-formidablesubmarine-force-on-the-planet-heres-what-you-need-to-know-232694.html
*
Despite nod, BAE Howitzers will arrive in India after a long
process:
The acquisition of 145 M-777 Ultra-Light Howitzers (ULH) of BAE Systems may
have got clearance by the Defence Acquisition Council headed by defence
minister Manohar Parrikar, but a long process has to be underway before any
order could be placed. As per the procurement procedure laid under the DPP-13,
the acquisition of M-777 ULH at a cost of $ 450 million (R2,900 crore) will also
have to be first approved by the finance ministry and the Cabinet Committee on
Security, before any gun comes for the Indian Army. The amount that has been
cleared is based on the 2010 notification. Additionally, the DAC also agreed to a
proposal from the BAE Systems — to shift the assembly integration and testing
AIT facility from Hattiesburg, Mississippi, to India. However, sources told FE
after the meeting, that “no decision has been taken yet on who would do the
assembly integration in India as it is still in the process of being worked out.” The
deal which is via a government-to-government (G2G) Foreign Military Sale
(FMS) from the US arm of BAE Systems was first notified by the US Defense
Security Cooperation Agency to the US Congress in January 2010 for
approximately $ 647 million, when the average exchange rate was INR 46.02 to
an American dollar. At this rate, the price was understood to be R2,900 crore in
January 2010. But at today’s rate, the amount will be around R5,000 crore, and
unless the rupee gains substantially against the dollar by the time the order is
finally placed, this will be the effective price tag....
Source:
http://www.financialexpress.com/article/economy/despite-nod-bae-howitzers-will-arrive-inindia-after-a-long-process/72883/
*
Now Russia will ‘Make in India’ 200 military helicopters:
Moving an inch forward in 'Make in India' initiative in defence production,
Gurgaon-based Sun Group may partner with Russia to make light helicopters. If
everything goes as planned, 200 Kamov Ka 226 light helicopters may replace the
ageing Cheetah fleet, which services one of the world's highest military
deployments on the Siachen glacier. Economic Times reported that work on the
Russian deal, by nomination, had begun after Russian President Vladimir Putin's
visit last year in December and assurances were exchanged at the highest levels
to look into this project....
Source:
http://www.businessinsider.in/Now-Russia-will-Make-in-India-200-militaryhelicopters/articleshow/47295104.cms
*
UK navy seize Indian fishing boats off Diego Garcia:
British navy seized two Indian fishing vessels, both operating from harbours
near Kochi, and arrested its crew on May 11 for illegally entering and fishing in
the waters near Diego Garcia, the heavily guarded naval base, run jointly by the
British and American forces. Owner of the boats came to know of this only on
May 16 afternoon, when one of the captains rang him from Diego Garcia. Diego
Garcia and the nearby islands are part of British Indian Ocean Territory (BIOT),
controlled by the UK. Since December 2014, British navy had detained 10 Indian
fishing vessels, owned by fishermen from Thoothoor in Tamil Nadu. "Both the
boats - Joshva and Joshva 1 - are owned by Selvadhason Rajappan. Between
these boats there were 23 crew members. These boats left Kochi on April 11 and
was caught in BIOT waters a month later. After five days in captivity, Shiji, the
captain of Joshva 1 rang Rajappan from a phone number in Diego Garcia," said P
Justin Antony, founder president, Tamil Nadu Fishermen Development Trust (TN
FIDET). He also said that he had informed the district collector and the fisheries
officials of the happening. Almost all of the arrested fishermen are from
Thoothoor in Tamil Nadu, except two Xaviers, who belonged to
Thiruvananthapuram district of Kerala. Others are: Benitto Lazer, Teego Sam
Michael, Tharsis Joseph, Lubert Joseph, Reny, Sebin Deniston, Sajin, Saji, Vijay,
Xavier, Antony Dhas, Shiji Athanas, Victor Augustin, Shibu, Thankappan, Thason,
Thadeuse Vincent, Tony, Deniston, Vinoth, Sutheer, Silvestor.....
Source:
http://timesofindia.indiatimes.com/india/UK-navy-seize-Indian-fishing-boats-off-DiegoGarcia/articleshow/47311176.cms
II
Homeland Security
*
ULFA demands guarding of Indo-Bangladesh border:
Demanding for early completion of the peace process, a delegation of ULFA
members on May 16 held talks with the Centre and also sought effective
guarding of the Indo-Bangladesh border to check illegal infiltration. During the
tripartite meeting among the Centre, officials of the Assam government and the
pro-talk faction of ULFA led by Arabinda Rajkhowa, the group sought early
completion of the peace process by considering their demands so that a final
settlement can be reached, an official spokesman said in a release. The meeting
was chaired by Union Home Secretary LC Goyal in which Centre's representative
for peace talks PC Haldar, Special Secretary (Internal Security) Ashok Prasad and
Chief Secretary of Assam Jitesh Khosla were also present. Goyal reviewed the
progress made in talks with ULFA delegation and after detailed discussion, it was
decided to pursue a few specific steps on some issues vigorously. He said the
Centre attaches "highest priority" for early completion of peace process with
ULFA. The ULFA leaders mentioned that since the issue of illegal migrants in
Assam needs to be solved, updating of the National Register of Citizens (NRC)1951 should also be prioritised and sought additional measures for ffective
guarding of the Indo- Bangladesh border to check illegal infiltration.....
Source: http://economictimes.indiatimes.com/news/politics-and-nation/ulfa-demands-guarding-of-indobangladesh-border/articleshow/47299460.cms
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