Purchasing of New Aircraft for the Air Force



Purchasing of New Aircraft for the Air Force 
The Government constantly reviews the security environment and ensures that the Indian Air Force (IAF) is fully equipped to meet the security challenges. The IAF undertakes the process of modernization of its fleet by procuring various aircrafts. In addition, existing fleet of aircraft are upgraded as per requirements. These measures augment the operational strength of the IAF. 


As per the India-France Joint Statement issued by the two countries during the Prime Minister’s visit to France, Government of India conveyed to the Government of France that in view of the critical operational necessity for Multirole Combat Aircraft for Indian Air Force (IAF), Government of India would like to acquire [36] Rafale jets in fly-away condition as quickly as possible. The two leaders agreed to conclude an Inter-Governmental Agreement for supply of the aircraft on terms that would be better than conveyed by Dassault Aviation as part of a separate process underway, the delivery would be in time-frame that would be compatible with the operational requirement of IAF; and that the aircraft and associated systems and weapons would be delivered on the same configuration as had been tested and approved by Indian Air Force, and with a longer maintenance responsibility by France.

A Negotiating Team has been constituted to negotiate the terms and conditions of the procurement of 36 Rafale jets and recommend a draft agreement. The meetings of the Indian Negotiating team with the French side are underway.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Motilal Vora in Rajya Sabha today. 

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Def-Expo 2016 
It has been decided to organize Def Expo 2016 in Quitol, Naqueri Betul in Quepem area of South Goa, in the State of Goa. The Government of Goa was requested to make approximately 150 acres of land available for the purpose. However, Government of Goa has not allotted any land formally for the purpose to the Ministry of Defence. The Def Expo has been organized in previous years in Delhi. No land was allotted for Def Expo in Delhi. Def Expo used to be organized in Pragati Maidan, a property of India Trade Promotion Organization (ITPO), by hiring the space.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Shantaram Naik in Rajya Sabha today. 

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Foreign Deals in Defence Sector under make in India Policy 
The expenditure on capital acquisition in respect of order placed on Indian vendors and foreign vendors for the period 2014-15 was Rs.40589.98 Crore (61.89%) and Rs.24992.36 Crore (38.11%) respectively.

During 2014-15 and current year, contracts have been signed with foreign vendors for capital procurement of Defence equipment such as Missiles, Simulators, Helicopters, Rockets and Guns. Information related to employment of Indians in such projects is not maintained in the Department.

Capital procurement of Defence equipment is guided by the Defence Procurement Procedure (DPP) and the timelines given therein. The timelines are specifically prescribed in each contract.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Avinash Rai Khanna in Rajya Sabha today. 

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Role of MSME in Defence Sector 
Ministry of Defence set up a Committee of Experts under the Chairmanship of Shri Dhirendra Singh, IAS (Retd.), in May 2015 to evolve a policy framework for Make in India and to suggest requisite amendments in Defence Procurement Procedure (DPP) 2013. The Committee submitted its report in July 2015 and in its report it is mentioned that almost 80% of component, aggregates and assemblies of complex weapon system and aircraft are made by MSMEs, which are part of supply chains. The Report also mentions that there are nearly 6000 MSMEs across the country supplying components and sub-assemblies to the DPSUs, Ordnance Factories, DRDO and private industries. A 2012 Report of the Confederation of Indian Industry (CII) and the Boston Consulting Group (BCG) mentions that the employee base of 1.8 lakh in Ordnance Factories and DPSUs is similar to the countries like United Kingdom and France which are amongst the largest producers of defence related items.

The lack of state of the art defence technology and poor production capabilities are some of the major reasons for lagging behind by India in the field of defence production. However, the Government has promulgated Defence Production Policy in 2011aimed at achieving substantive self-reliance in the design, development and production of equipment, weapon systems, platforms required for defence in as early a time frame as possible; creating conditions conducive for the private industry to take an active role in this endeavour; enhancing potential of SMEs in indigenisation and broadening the defence R&D base of the country. In pursuance of the Policy, the Government has taken several steps to build strong defence industrial base, which are given as below:-

• FDI policy has been revised in Nov 2015 under which Foreign Investment upto 49% is allowed through automatic route and above 49% under Government route on case-to-case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country.

• The Exchange Rate Variation (ERV) protection has been allowed on foreign exchange component to all Indian companies including private companies in all categories of capital acquisitions, so as to create a level playing field between the Indian and foreign industry.

• To establish a level-playing field between Indian private sector and the public sector, the anomalies in excise duty/ custom duty have been removed. As per the revised policy, all Indian industries (public and private) are subjected to the same kind of excise and custom duty levies.

• The Defence Products List for the purpose of issuing Industrial Licences (ILs) under IDR Act has been revised and most of the components, parts, sub-systems, testing equipment, and production equipment have been removed from the List, so as to reduce the entry barriers for the industry, particularly small & medium segment.

• The initial validity of the Industrial Licence granted under the IDR Act has been increased from 7 years to 15 years with a provision to further extend it by 3 years on a case-to-case basis.

• To promote the participation of private sector, particularly SMEs for defence manufacturing, Outsourcing and Vendor Development Guidelines for DPSUs and OFB have been formulated and circulated to them. The guidelines mandate that each DPSU and OFB to have a short-term and long-term outsourcing and vendor development plan to gradually increase the outsourcing from private sector including SMEs. The guidelines also include vendor development for import substitution.

• The Standard Operating Procedure (SOP) for the issue of No Objection Certificate (NOC) for export of military stores has been revised and put on the website. Under the revised SOP, the requirement of End User Certificate (EUC) to be countersigned/ stamped by the Government authorities has been done away with for the export of parts, components, sub-systems etc.

• The list of military stores has been finalised and has been put in the public domain to make the process transparent and unambiguous. The process of receiving applications for NOC for export of military stores and for issuing NOC has been made online to reduce the delay and to remove human interface in the process.

• Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition over ‘Buy (Global)’ category, thereby giving preference to Indian industry in procurement.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Harivansh in Rajya Sabha today. 

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Production Capacities of Ordnance Factories 
The annual production plan of ordnance factories is based on targets mutually agreed with indentors i.e. Army, Navy, Air Force, Central & State Police etc. The capacities of ordnance factories are being fully utilized except in small arms manufacturing factories due to rapidly declining demand from Armed Forces for the existing small arms.

Ordnance Factory Board (OFB) has also received long-term demands of various ammunition items from Army, Navy and Air Force.  The OFB interacts on regular basis with the user so as to match their annual requirements.  The value of production of Ordnance Factories for supply to Defence and Non-Defence sectors during last three years is as under:-
(Rs. in Crore)
Year
Defence
Non Defence
Total

2012-13
10180
1794
11975
2013-14
9295
1828
11123
2014-15
9824
1540
11364






The percentage of expenditure on domestic and foreign procurement of Defence equipment for Army, Navy and Air Force under Capital and Revenue during 2014-15 was 62.89% and 37.11% respectively.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Naresh Agrawal in Rajya Sabha today.

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Women Pilots Commanding Fighter Planes 
Government has accorded the approval for women to join as Short Service Commission officers in the fighter steam of the IAF on experimental basis for a period of five years.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Lal Sinh Vadodia in Rajya Sabha today. 

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Foolproof Coastal and Marine Security 
Government regularly reviews the threat perception from time to time and takes appropriate measures to safeguard the sovereignty, territorial integrity and security of the country. It includes review by National Committee on Strengthening Maritime and Coastal Security against threats from the sea (NCSMCS). The last meeting of NCSMCS was held on 16.10.2015.

Consequent to the events of 26/11, the Government had approved a number of measures for strengthening coastal security. Accordingly, National Command Control Communication and Intelligence Network (NC3IN)) has been established. Further, under Coastal Surveillance Network (CSN), 45 Radar Stations (RS) have already been made operational along the coastline. The Coastal Security of the entire coastline including that of Andaman and Nicobar Islands has been strengthened through Aerial and Electronic Surveillance, Joint Coastal Exercises and Community Interaction Programmes. Towards greater monitoring, control and regulation of fishing activity, registration of boats, issue of biometric fishermen Identity cards and regulation of fishing traffic at fishing harbours have been introduced. Also Coordinated Patrols (CORPAT) with navies of Myanmar, Thailand and Indonesia have been also undertaken against illegal fishing and poaching.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Dr. T Subbarami Reddy in Rajya Sabha today. 

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Army Personnel Killed in Ceasefire Violations 
The details of ceasefire violations in J&K   along Indo-Pakistan border are as under:-

Ceasefire Violations along Line of Control (LC) and International Border (IB) under operational control of Army
Ceasefire Violations along IB under operational control of BSF
151
(from 01 January to 30th Nov, 2015)
249
(from 01 January to 31st Oct, 2015)
(b)  Six Army personnel were martyred during the ceasefire violations along the LC in the said period.
(c)  Compensation/benefits being paid to the Next of Kin of Army soldiers (Fatal Battle Casualties) is as under:
Monetary compensation to army soldiers’ families:
Ex Gratia Lump Sum Compensation from Central Government to Next of Kin (NoK) of Battle Casualty:
·        Death occurring due to accidents in the course of duties -  Rs.10.00 lakh.
·        Death in the course of duties attributable to acts of violence by terrorists, etc. -Rs.10.00 lakh.
·        Death occurring during enemy action in war or border skirmishes or in action against militants, terrorists, etc.-            Rs.15.00 lakh.
·        Death occurring during enemy action in International war or war like engagements specifically notified -            Rs.20.00 lakh.
·        Death occurring while on duty in the specified high altitude, inaccessible border posts, etc. on account of natural disasters, extreme weather conditions -Rs.15.00 lakh.

Other Monetary Benefits:
·        Liberalised Family Pension: as applicable to Battle Casualty that is equal to emoluments last drawn by the deceased individual.
·        Death-cum-Retirement Gratuity:  that is based on length of service rendered and emoluments last drawn by the deceased individual.
·        Army Group Insurance Fund:-
o      Officers          :           Rs. 50.00 lakh
o      JCO/ORs        :           Rs. 25.00 lakh

Army Group Insurance Maturity that is based on the contribution made by the deceased Army personnel.
·        Army Wives Welfare Association Fund:-
o      Officers                                  :           Rs.10,000/-
o      JCOs/ORs                              :           Rs.15,000/- (w.e.f. 01 Apr, 2015)

Army Officers Benevolent Fund    :           Rs.50,000/-
Army Central Welfare Fund:                    Rs.30,000/-
Other Benefits:
o      Education Concession
o      Air Travel Concession
o      Telephone Concession

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri P Bhattacharya and Shri Kiranmay Nanda in Rajya Sabha today.

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Shortage of Fighter Planes in the Air Force 
The Indian Air Force (IAF) is equipped to cater for the threat environment that exists and is always ready to meet the role assigned to it. Operational preparedness of IAF is reviewed from time to time based on the threat perception. Further, augmentation of capabilities of IAF including its modernization is a dynamic and continuous process.

During the Air Force Commanders Conference in October, 2015, all important issues related to operations were discussed and directions were given to take suitable measures to enhance the operational capability of IAF.

The indigenous Light Combat Aircraft ‘Tejas’ has achieved initial operational clearance. The production phase is progressing concurrently with developmental activity.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Vishambhar Prasad Nishad and Smt Kanak Lata Singh in Rajya Sabha today. 

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Indigenous Entrepreneurs in Aviation Equipment Field 
Indigenous procurement of aviation equipment for Indian Army has increased. Indigenous Procurements have been carried out for items such as helicopters, helmets, test benches and Gyros. The Defence Production Policy promulgated in 2011 gives preference to indigenous design, development and manufacture of defence equipment and providing a level playing field to Indian Industry vis-a-vis foreign industry. Government has also raised the FDI limit in defence production from 26% to 49% and liberalized the licensing regime. Capital Procurement of Defence Equipment is done through the Defence Procurement Procedure (DPP) 2013 which also provides for higher preference to the categories of Buy (Indian), Buy & Make (Indian) and Make (Indian) in that order.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Ambeth Rajan in Rajya Sabha today. 

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Indigenisation in Defence Sector 
The Government has promulgated Defence Production Policy in 2011 in order to promote indigenisation in defence sector. The policy aims at achieving substantive self-reliance in the design, development and production of equipment, weapon systems, platforms required for defence in as early a time frame as possible; creating conditions conducive for the private industry to take an active role in this endeavour; enhancing potential of SMEs in indigenisation and broadening the defence R&D base of the country. In pursuance of the Policy, the Government has taken several steps to build strong defence industrial base which are given as below:-

o FDI policy has been revised in Nov 2015 under which Foreign Investment upto 49% is allowed through automatic route and above 49% under Government route on case-to-case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country.

o The Exchange Rate Variation (ERV) protection has been allowed on foreign exchange component to all Indian companies including private companies in all categories of capital acquisitions, so as to create a level playing field between the Indian and foreign industry.

o To establish a level-playing field between Indian private sector and the public sector, the anomalies in excise duty/ custom duty have been removed. As per the revised policy, all Indian industries (public and private) are subjected to the same kind of excise and custom duty levies.

o The Defence Products List for the purpose of issuing Industrial Licences (ILs) under IDR Act has been revised and most of the components, parts, sub-systems, testing equipment, and production equipment have been removed from the List, so as to reduce the entry barriers for the industry, particularly small & medium segment.

o The initial validity of the Industrial Licence granted under the IDR Act has been increased from 7 years to 15 years with a provision to further extend it by 3 years on a case-to-case basis.

o To promote the participation of private sector, particularly SMEs for defence manufacturing, Outsourcing and Vendor Development Guidelines for DPSUs and OFB have been formulated and circulated to them. The guidelines mandate that each DPSU and OFB to have a short-term and long-term outsourcing and vendor development plan to gradually increase the outsourcing from private sector including SMEs. The guidelines also include vendor development for import substitution.

o The Standard Operating Procedure (SOP) for the issue of No Objection Certificate (NOC) for export of military stores has been revised and put on the website. Under the revised SOP, the requirement of End User Certificate (EUC) to be countersigned/ stamped by the Government authorities has been done away with for the export of parts, components, sub-systems etc.

o The list of military stores has been finalised and has been put in the public domain to make the process transparent and unambiguous. The process of receiving applications for NOC for export of military stores and for issuing NOC has been made online to reduce the delay and to remove human interface in the process.

o Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition over ‘Buy (Global)’ category, thereby giving preference to Indian industry in procurement.

Department of Industrial Policy and Promotion (DIPP) has, so far issued 307 Letters of Intents (LOIs)/Industrial Licences (ILs) to 182 companies to till Oct 2015 for manufacture of a wide range of defence items to public/private companies. So far 50 licensed companies covering 79 industrial licenses have reported commencement of production.

34 FDI proposals/Joint Ventures have been approved in defence sector since 2000, for manufacture of various defence items, both with Indian public and private sector companies.

Since the launch of ‘Make in India’ initiative in Sept 2014, Department of Industrial Policy &Promotion has issued 81 Industrial Licenses to 61 companies for manufacture of various defence items.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Vijay Goel in Rajya Sabha today. 

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Shortage of Weapons and Helicopters with the Armed Forces 
Request for Proposal (RFP) for the procurement of Qty. 186,138 Bullet Proof Jackets (BPJs) was retracted on 5th October, 2015 as the BPJs fielded by vendors failed in the trials. The Government has taken into consideration the deficiencies in some of the critical ammunition and has taken effective steps to mitigate the deficiencies to ensure desired level of operational – preparedness commensurate to threat perception. Government constantly reviews the security scenario and accordingly decides to induct appropriate defence weapons / equipment. Mismatches between requirements and availability can sometimes occur which are continually addressed by the procurement process.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Smt Wansuk Syiem in Rajya Sabha today. 

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Army Flood Relief in Chennai - Update on 08 Dec 2015 
            The Indian Army has over 70 teams along with 57 BAUTS (medium sized boats) and 16 geminis (small boats) in Tamil Nadu undertaking Relief Operations in co-ordination with the Civil Administration. These teams have rescued more than 19,600 stranded people. Army Medical Teams have provided Medical Aid in various parts of Chennai to 14,600 people. So far, the Army has distributed over 1,25,000 Relief Packets provided by the State Govt and some NGOs besides those from within own resources.    
            The relief teams along with medical teams of the Army are also located at Cuddalore and Bhuvanagiri for assistance as required by the State Administration. 
            The focus has shifted to relief operations to include distribution of relief material and administration of medical assistance.
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Indian Air Force winds up Tamil Nadu Relief Operations 
1. Chennai is slowly regaining normalcy, as the flood waters recede. The Tamil Nadu Govt has asked the Indian Air Force (IAF) to conclude its relief operations. Undertaken amidst heavy rains, these operations were carried out over five days, from 02 December to 06 December 2015.

2. The IAF had responded swiftly to the flood crisis in the Chennai region, commencing operations at dawn on 02 December 2015, even as the rains continued. It mounted rescue and relief operations from Air Force Station Tambaram & Arakkonam. IAF’s transport aircraft were pressed into service, comprising of C-17, C-130, IL-76 and AN-32 and flew 40 sorties. IAF airlifted 30 National Disaster Relief Force (NDRF) teams and five Indian Army columns into the affected areas. These aircraft also evacuated 770 stranded civilian passengers to Bangalore, Hyderabad and Delhi. Also, 281 tons of relief material was airlifted, including suction pumps and boats.

3. Simultaneously, 13 IAF helicopters were utilised in the Humanitarian Assistance and Disaster Relief effort. Chennai’s civil airport at Meenambakkam was rendered inoperative due to floods. The helicopters used the nearby IAF Base at Tambaram. Tambaram was also flooded, but could, however, support helicopter operations.These IAF helicopters operated under difficult conditions, in rain and in marginal weather. Flying 195 sorties, they airlifted 450 stranded people, including women, infants and senior citizens. 37 tons of relief material such as food and water were air dropped.

4. IAF operations ceased by the evening of 06 December 2015. As the flood waters abate, this latest Humanitarian Assistance and Disaster Relief effort of the IAF has brought succour to the lives of residents of the Chennai. 

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Chairman Chiefs of Staff Committee (COSC) and Chief of the Air Staff (CAS) Air Chief Marshal Arup Raha visits Malaysia 

            The Chairman Chiefs of Staff Committee(COSC)  and the Chief of the Air staff (CAS), Air Chief Marshal Arup Raha is on a three day visit to Malaysia for the SASEAN Defence Chiefs dialogue from Sunday.

            Air Chief Marshal Raha on Monday addressed the gathering of fellow Defence Chiefs from ASEAN, SAARC and the observers from China, Russia and United States of America. The topic of the talk was on “Addressing Dynamic Challenges’ from the perspective of Indian Armed Forces.

            While talking on the subject  on ‘Regional Security Environment’, the Air Chief said a broad scan of the evolving geo-political environment clearly indicates a pre-eminent shift  in Global strategic centre of gravity to the Asian - Pacific regions. As India is strategically located in South Asia the Air Chief said, “We hope to see increased cooperation and collective action to exchange information, build infrastructure and strengthen capabilities.  In this manner, we would  gain from each others strengths and understand each other better towards lasting peace, stability and prosperity in the ASEAN region”.

            The Air chief further said, “Indian Armed Forces being the 3rd largest military force has the largest volunteers Army.   The professionalism and the apolitical nature of the Indian Armed Forces is a major stabilising factor in the Indian Subcontinent. The terrain and climate in India is quite diverse and offers a unique opportunity to our Armed Forces to train and operate in some of the most hostile environments in the world. India has the highest  air field in the world, DBO in the Mighty Himalayas which is at an elevation of 17,000 feet, 2 lakh square Kms of Deserts, inhospitable tropical forest in the North East, and  vast coast line with added challenges posed by high humidity, salinity  and corrosion.”
            Speaking on the challenges the Air Chief spoke on exploitation of technology by the Armed Forces mentioning that the DRDO is working towards self reliance in defence systems and strategic independence.  While talking on promoting affordable and cogent Military solutions, India has decided to accelerate indigenous defence manufacturing through its ‘Make in India’ initiative.  He continued to say that it has already given a boost to the Indian Defence industries for manufacture of Ships, Artillery Guns, Aircraft, repair and overhaul, Radars, sensors, communication system etc.

  He further elaborated, “The next dynamic challenge in HADR which is closely linked with the theme of the day. Indian Armed Forces have  rendered invaluable assistance during floods, cyclones, earthquakes, forest fires and evacuations To give an idea of the magnitude of relief work undertaken in 2014 -15 itself, the Indian Armed Forces have airlifted more than 6500 tonnes of supplies and  38000 passengers. The Indian Armed Forces have adapted to short notice requirement to provide immediate succour to the affected along with NDRF with systematic procedures and techniques in place”.
            While concluding his talk, the Air chief after speaking on indigenization and conduct of HADR operations, he envisioned that the Indian Armed Forces are operating state-of-art platforms and equipment, with cutting edge technology and a large indigenous content.  He further said that our Armed Forces are transforming into a modern, flexible and credible Power with Full Spectrum Capability to safeguard India’s National Interests and Objectives. In the end he said, “We wish to collaborate and engage effectively with SASEAN nations to enhance the security of our region and further our mutual interests of economic development and progress”.



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