India Bypasses Global Tendering To Replace 44,000 Guns

The Manohar Parrikar-led Ministry of Defense in India will buy its requirement of close quarter battle carbines directly instead of going through the conventional route of floating global tenders for them.

“With repeated failure to procure it through the global tendering process, the ministry has to go for direct government-to-government sale for buying these weapons. It will speed up the acquisition process and will rule out allegations of corruption,” a senior ministry official said.

Manohar Parrikar

Manohar Parrikar

The New Indian Express reports that New Delhi has proposed an agreement under the ‘foreign military sales’ category for buying 10,000 such carbines directly from a country that is willing to supply them. The remaining 34,000 units will be manufactured in India under a production license.

 

January 4, 2017   No Comments

Dassault Aviation Enters into JV with India’s Reliance Group

The Dassault Reliance Aerospace was announced by France’s Dassault Aviation chairman and CEO Eric Trappier and Reliance Group chairman Anil Ambani. The agreement includes a 50% offset obligation, which is the largest-ever offset contract recorded in India.

Defense News quotes an Indian Air Force official who said, “A comprehensive military aerospace partnership in terms of joint venture can actually [be] translated into a long-term commitment from Indian and foreign players aiming to strengthen defense industry in India.”

Reliance and Dassault Aviation

This proposed strategic partnership will also focus on promoting research and development projects under the Indigenously Designed Developed and Manufactured program, a new initiative started by India’s minister for defense, Manohar Parrikar, says Reliance.

October 3, 2016   No Comments

India Finalizes (Finally) Rafale Fighter Buy

The long-awaited inter-governmental agreement for the purchase for 36 Dassault Rafale Jets was signed in New Delhi on Friday 23 September between India’s minister for defense Manohar Parrikar, and his French counterpart Jean Yves Le Drian. Eric Trappier, Dassault Aviation chairman and CEO, was also present.

PM Narendra Modi and French President Francois Hollande

The deal is worth $8.7 billion, and includes aircraft in fly-away condition, weapons, simulators, spares, maintenance and performance-based logistics support for 5 years, reports The Hindu.   The twin-engine fighter aircraft can operate from both an aircraft carrier and a shore base. It is capable of carrying out all combat missions: air defense, interception, ground support, in-depth strikes, reconnaissance, anti-ship strikes and nuclear deterrence.

The aircraft will be delivered in a time frame of 36 to 67 months. France will provide logistics and ground support, and ensure that 75 percent of the jets are operationally available at any time.

September 23, 2016   No Comments

U.S., India Sign Defense Logistics Agreement

India’s Defense Minister Manohar Parrikar was in Washington on August 30 to sign the Logistics Exchange Memorandum of Agreement (LEMOA). This agreement provides for each country to use the other globally for supplies, spare parts, services and refueling.  Effectively, U.S. armed forces can operate out of Indian bases, and vice versa, on a simple basis. Other upcoming deals are the Communications and Information Security Memorandum Agreement (CISMOA), and the Basic Exchange and Cooperation Agreement for Geospatial Intelligence (BECA).

US and India Flags

Through LEMOA, as also through prior deals, U.S. contractors will get a much better launching pad from which to sell many billions of dollars of top-of-the-line armament to India.  On the other hand, India often requires a degree of co-production domestically, so LEMOA and other deals will help India grow as a  weapons dealer itself, selling to the rest of the world, reports Forbes.

August 28, 2016   No Comments

India’s Defense Ministry Plans $223 Billion Spend

India is planning to spend $223 billion on weapons over the next eleven years. Defense Minister Manohar Parrikar has asked his ministry to project the expected cost of upgrading and modernizing India’s armed forces. An annual hike of 8 percent in capital spending will be allocated in each year’s budget.

bullets

The Ministry of Defense has set a target for inducting 170 fighter jets for the India Air Force, 12 more submarines, 500  helicopters, artillery guns and tanks for the Indian Army and indigenous aircraft carriers  says Defense World.

The capital spending for the present fiscal year ending March 31, 2017 is approximately $13 billion. The entire planned hike for the next 11 years will average out to an annual spend of $20 billion.

Lockheed Martin, which is winding down F-16 production in the U.S., has offered to shift its entire F-16 production line to India. Boeing Co and Saab AB are also offering to shift some production to India, reports The Voice Times.

 

August 28, 2016   No Comments