geopoliticsairshow02

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Aero India 2013 Show News

Friendship with Indians has created a bedrock of security Alon Ushpiz

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AMBASSADOR OF israel

Russian and Indian collaboration is a trusted partnership

Defence and security are important elements of our relationship Page 8

Michael Steiner

AMBASSADOR OF germany

Alexander Kadakin

AMBASSADOR OF RUSSIA

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geopolitics

DAY 2

defence diplomacy security

Thursday 7, february 2013

inside

to speed up the indigenisation process, stakeholders need to sort out design differences in initial stages, says RM Page 8

w-h-o-o-s-h and the sky is no limit

international seminar on offsets sparks debate

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vignettes from the first day's flypasts, magnificent planes, visitors and much more... Page 28

BENGALURU, February 6: Defence Minister A K Antony on Wednesday assured the nation that the armed forces’ modernisation programme would not be “slackened” by the recent budgetary cuts, but the acquisitions would be prioritised to ensure that the most critical requirements are met. The government has effected a `10,000 crore cut in the defence bud-

get in December 2012, apart from the Rs.19,000 crore cut effected in the annual budget of `1,93,407.29 crore in July 2012. “It is a painful question,” Antony told a press conference at the Yelahanka air base on the occasion of the ninth Aero India show, which began here and will go on till Sunday. “But, it is not purposeful. The country is going through difficult days. India

is not an island. The global recession is affecting us too. The whole government is facing financial problems,” he said, adding that the government was 'consciously tightening the screws' of all departments, including defence. “We are hopeful we will be doing better next financial year,” Antony noted, pointing out that “for priority areas, we will not cut expenditure.” ALL EYES: (Top) Karnataka Chief Minister Jagadish Shettar, Defence Minister A K Antony and Civil Aviation Minister Ajit Singh photographed at the inauguration of Aero Show 2013 and (below) Dignitaries all set to view the fly past and aerobatics

The Defence Minister said that in areas where operational readiness was the issue, “we will spend the entire budget”. “There will not be any kind of cuts in operational readiness. Some areas of procurement will be postponed to the next financial year,” he added. Antony also noted that the modernisation of the armed forces will not be 'slackened' because of concerns over the emerging threats as a result of India’s volatile neighbourhood and the geopolitical challenges emanating from the proposed pullout of the American troops from Afghanistan. “National security is of primary importance. GDP growth is dependent on peace prevailing in the country. So, modernisation of the armed forces will not be slackened. And when I am talking of modernisation, sky is no limit,” he added. However, the Defence Minister refused to attribute the delay in the signing of the `one lakh-crore Medium Multi-Role Combat Aircraft (MMRCA) deal this fiscal that ends in March to the budgetary cuts. “There is no question of delay in signing MMRCA deal due to budget cuts. It is our biggest procurement, which has been described by you as the mother of all deals,” he said. “We will sign it at the earliest. At (Continued on Page 3)



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sky is no limit... the same time, we want to ensure that at every stage, there is no malpractice. We are taking all care,” he added. At present, the cost negotiation for the contract with French company Dassault Aviation for its Rafale combat planes is in progress, Antony said, noting that they would ensure 'transparency' in the process. Asked about the work share between Dassault Aviation’s Indian JV with Reliance Industries and the public sector Hindustan Aeronautics Limited, Antony said the Request for Proposals in the MMRCA will be followed. “What is there in the RFP will be the guideline. We cannot change the RFP or the GSQRs conditions in the MMRCA,” he added, when asked about the reports that the French firm had requested the Defence Ministry to allow it to play a bigger role in the contract by making it responsible for the pro-

try and military. We will take a collective decision.” Under the project, the Army and the IAF are planning to buy 197 choppers to replace their Cheetah/Chetak chopper fleet. The deal has been marred by delays due to allegations of non-adherence to tender conditions by the participating companies. On the Intermediate Jet Trainer development programme of the IAF, Antony said the HAL has been asked to speed up the programme and had been given a deadline. He expressed hope that by 2015, the aerospace giant would achieve a breakthrough in the programme and would be ready for induction into the force. To a question on hiking the Foreign Direct Investment (FDI) limit in the defence sector from the present 26 per cent to ensure more participation from both

duction of 108 of the 126 Rafale aircraft that India is supposed to buy from it. As per the RFP for the project, HAL is supposed to be the lead integrator for producing 108 aircraft that are to be licenseproduced in India. The first 18 aircraft would be manufactured in France before they are supplied to India. Dassault, which has a Joint Venture with Reliance Industries, had reportedly sought a bigger role in the production process in the country and sought to be the lead integrator. Asked if the negotiations with Dassault could get over by the end of summer, he said “after going through six-seven layers, it will go to Finance Ministry. If everyone takes proper care to ensure that nothing wrong happens in the process, I am sure we will be able to speed it up. We are trying to speed it up. Regarding transparency, there will be no compromise”. Asked if the Defence Ministry was planning to scrap a deal for buying 197 light helicopters for the Army and the IAF, he said, "This is an Army proposal. That proposal has now been referred to the Defence Acquisition Council, which has all important members of the Minis-

foreign and domestic players, Antony did not dismiss the suggestion. In a cautious response, he said: “Rome was not built in a day. Since we opened up the defence sector 100 per cent in 2001, private sector entry into the defence market has grown more and more now.” He also said that the country’s focus will be indigenisation of defence systems and the government was 'serious' about it. “I cannot believe there can be zero imports. But we

want to substantially reduce dependence on imports,” he added. On the offsets policy under which up to 30 per cent of a contracted amount in a deal over `300 crore needed to be ploughed back into Indian defence, aerospace and homeland security sector by the winning foreign vendor, Antony said the Defence Ministry was fine tuning the processes and had in January held a meeting of all stakeholders to ensure there was a collective decision in this regard. “We will have a new defence procurement policy from the next financial year which will give impetus to speedy indigenisation. We are in the correct path and moving forward,” he said. The Defence Minister also appealed to the defence public sector undertakings and private sector to hike their spending on Research and Development. “The private sector is not spending on R&D at all,” he lamented. In a message to foreign companies that want to enter the Indian defence market, Antony said the days of buyerseller relations are long gone. “We are no more believing in a relationship of buyerseller with foreign companies and countries. For every procurement we make, there has to be a technology transfer and it is a must,” he noted. Antony expressed his happiness over the growth of the Aero India show over the years, with more and more success notched up by the biennial show, considered to be one of Asia’s largest. “Over the years, the number of countries and companies, both domestic and foreign, has increased and we are finding it difficult to accommodate all of them,” he said. “Compared to 2011, this time there is a two-third enhancement in the area of the exhibition. In 2011, it was 75,000 sq

metres, in 2013 it is 1,25,000 sq metres. Though the area has expanded, it is not possible to accommodate all, because, this time, both Indian and foreign companies have taken more space in the exhibition,” he added. He also congratulated the Indian domestic defence industry from the public and the private sector for notching up successes in their endeavours in progressing towards having an indigenous de-

fence industrial base in the country. Earlier in the day, while inaugurating the ninth edition of Aero India in the presence of Chief Minister of Karnataka Jagdish Shivappa Shettar, Antony had emphasised on how the air show provided enormous business opportunity not only to India but also to different regional markets of the world. He said that the revised Defence Procurement Policy of 2010 has provided for more public-private partnerships model to the industry. He appealed to all stakeholders of the defence industry to take advantage of this policy initiative and develop world-class products and technologies to make India a hub in the entire sub-continent. Speaking on the occasion, Union Minister of Civil Aviation Ajit Singh, who was one of the leading dignitaries present on the occasion, described Aero India as a ‘knowledge platform’. Giving a brief report card of Indian aviation, he said that since this is one of the fastest-growing aviation sectors in the world, concentrated efforts have to be made by all stakeholders to sustain this momentum. The inaugral function was also attended by Minister of State for Defence Jitendra Singh, Marshal of the Air Force Arjan Singh, Chief of Air Staff N A K Browne, Scientific Advisor to Defence Minister and DG, DRDO, Dr V K Saraswat, Defence Secretary Shashikant Sharma, Defence Productions Secretary R K Mathur and FICCI President Naina Lal Kidwai. A magnificent aerobatic show commenced after the inaugural function when visitors were thrilled to see the slow but graceful flight displays of 1930s vintage Tiger Moth aircraft, which made its flight appearance after a gap of 22 years. Then the much awaited LCA Tejas showed some breath-taking loops and vertical charlies in the skies of Yelhanka, which was followed by aerobatic displays of Flying Bulls of Czech Republic. Incidentally, Antony has announced that the 10th Aero India will be held at Bengaluru from February 18-22, 2015. — Geopolitics Bureau

ISRAEL OFFERS ITS UMBRELLA BENGALURU, February 6: Israel said it shares a wide array of security challenges with India and the intimacy between the two countries was showcased in its Aero India pavilion where the main attraction was the Iron Dome missile defence system. “One of the highlights of this year’s aero show, presented for the first time in India, is the 'Iron Dome' system. This is an indigenous developed, game-changing – first of its type — missile interception system. It recently performed with notable distinction, protecting over half of Israel's population from a barrage of over 1500 rockets and missiles,” Israel’s Ambassador to India Alon Ushpiz said at the inauguraSHOWCASING STEELY RESOLVE: Israeli vendors showcase their products to Indian customers at Aero India 2013

tion of his country pavilion at the show. The Iron Dome was used by the Israeli armed forces recently during the attacks by the Palestinian insurgents during the recent skirmishes between the two sides. Ushpiz urged the visitors to also not miss the latest radars, UAVs, missiles, communications and intelligence equipment and highly sophisticated protection systems. “This Pavilion is a symbol of the level of intimacy and cooperation that we have reached with India. Israel and India share a wide array of security challenges,” he said. The cooperation in these fields has been an integral part of the growing multifaceted relationship between our two countries, the Ambassador said. He said the friendship and chemistry between Israelis and Indians creates a partnership that is a source of pride and indeed bedrock of security, stability and tranquility for both our nations.


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GKN Aerospace puts fuel system sealers on display GKN Aerospace’s display at Aero India is focussed on developments across two of the company’s businesses: fuel systems and emergency flotation systems. On display is a rotationally moulded fuel tank supplied for land vehicles alongside

a model of the AW101 helicopter fitted with a GKN Aerospace emergency flotation system. Manufacturing both in the US and the UK, GKN Aerospace supplies full turnkey packages from fuel storage to engine feed, as well as flexible fuel bladders, crashworthy and self-sealing systems plus rotationally moulded tanks and range extender tanks incorporating explosive suppressant and anti-slosh technology. Process and

geopolitics

Tata Advanced Material signs MoU with Strongfield

materials developments mean even stronger, lighter systems are now exploiting all the available space on the platform to maximise fuel load and airframe endurance, whilst minimising weight. For the military market, GKN Aerospace’s fuel system technology offers the most rapid self-sealing on the market, providing 7.62mm to 20mm round protection to all types of fuel containment systems. This ballistically tolerant technology is typically integrated at the design phase of a vehicle but can also be retro-fitted or externally fitted to ensure fuel supply is maintained throughout front line operations — and has been proved effective in service. The emergency flotation system for the AW101 aircraft, recently procured by India, is on display on a scaled aircraft model. GKN Aerospace is an authority on the specification, design, manufacture and qualification of complete emergency flotation systems, designed to FAR/JAR 27 and 29. The company also continues to develop new materials and fabrication techniques to meet vital requirements for lighter weight equipment with extended performance and reliability — offering improved safety for crew and passengers. SEALED: GKN Aerospace supplies complete fuel systems, flexible fuel bladders, crashworthy and self-sealing systems, rotationally moulded tanks and range extender tanks with explosive suppressant and anti-slosh technology.

Under the terms of the MOU, TAML (Tata Advanced Materials Limited) which is engaged in the design, manufacture and supply of composite products for aerospace, armour, defence, transportation and infrastructure sectors and UK based STL (Strongfield Technologies Limited) a specialist manufacturer and supplier of high-tech components and equipment for Defence and Space applications and provides Engineering, design and consultancy support will jointly explore the potential business co-operation areas in various segments of the Pilotless Target Aircraft activities as well as other aerospace and defence activities. Strongfield Technologies Limited intends to involve India’s Defence Industry in relation with the offset requirements of Indian Governmental acquisition programme, namely Pilotless Target Aircraft. STL is willing to develop a strong relationship with TAML which will contribute to better answer its worldwide requirements. Paul Rogers, Director of Outsourcing, STL said, ‘STL is honoured to collaborate with TAML for indigenous composite production of components and structures for its defence projects.

tie-up: Philip Dunne (second from left) and Strongfield Technolgies representatives with Tata Advanced Material officials at the Aero India pavilion after the signing of the MoU

STL evaluated TAML facilities in 2012, and was happy to see the high standards of quality and capability showcased.’ Philip Dunne MP, Minister for Defence Equipment, Support and Technology with responsibility for defence procurement and defence exports said, ‘I am very pleased to be present to witness this important MoU between Tata Advanced Materials Limited and Strongfield Technologies Limited for the tender to supply to Indian defence aerial targets. This is a tangible example of the significance of AeroIndia in articulating successive Collaborations between UK and India.’

(SA) is a ce Systems en ef D & s products nic Samtel Avio h-technology ig h in r ye in both pla applications key Indian ry ta ili m d an . SA caters for avionics nal markets io at rn te in d , developdomestic an from design n ai ch e lu va tion, repair to the entire ing, qualifica st te , re u ct fa anagement ment, manu lescence m so b o d an ce r military & maintenan equipment fo d an s ct u d pro he company of avionics platforms. T al ci er m m co ys, Built-toas well as s of Displa n ai m o d e th -electronics. operates in s and Opto U R L s ic n o vi Print for A

Multifunction In dicators — 3ATI and 4ATI Display & 4ATI: The 3A AMLCD and AR Unit features a high-resolutio TI The unit is desi INC 429 and discrete interfac n mechanical instgned to replace existing electre. no. to display A ruments, allowing a single pa oThe 3ATI & 4ATIttitude, Airspeed, and Altitudert power, is low in Display Unit consumes little . weight and high in reliability.

Rugged Displays: the vast and grow To cater to ment for indigeno ing requiredisplays for land, us rugged airborne requiremnaval and our defence forcesents for is ready with its va , Samtel of Rugged Displa st range ys. RSD series of ruggedise displays specifica d AMLCD to cope with adve lly crafted rse and demanding environ conditions at the mental maintaining extresame time levels of perform mely high ance.

Hall E 2.4 nisation of ith the productio aircraft at W s: FD M t ar production isplays and Sm HAL Multifunction D r Su-30 MKI Block-III & Block-IV ies, the Samtel -private lit ci fo fa s g rin tu ac uf ic Colour MFD bl an g the first pu A qualified m y cockpit Samtel’s DGAQ the unique distinction of bein to have a primaraircraft. a ed di ev In in e ac sp er JV has achi cs ht fence avioni ction on a fig partnership in deand productionised for indu variants on display along ed its ifi d al large-size ” MFDs an display qu ill have the 5”x5 next-generation Samtel booth ws. Also showcased will be the re star platforms. with 6”x6” MFDsizes 9”x12” and 6”x8” for futu Smart MFDs in



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geopolitics

RM for early

decisions on design issues Ram Prasad

Managing Director, India, Rockwell Collins

Rockwell Collins is working with strategic partners to bring high quality and high value solutions to its customers in India. Leveraging the 'best of breed' products from across its enterprise and customising in the country, the next generation integrated flight decks and software defined radios can help defence forces achieve their missions.

D Nalin Jain

CEO, GE Aviation, South Asia

General Electric (GE) Aviation is a world-leading provider of jet engines, components and integrated systems for commercial and military aircraft. We also have a global service network to support these offerings. GE develops and manufactures the most innovative and powerful jet engines and systems for commercial and military aircraft. With an installed base of more than 25,000 military engines, our advanced technologies are known around the world for technical excellence and low cost of ownership. Commercially, we develop and implement technologies that provide significant economic and environmental benefits to airlines, airports and the communities we serve. Our technological excellence, supported by continuing substantial investments in research and development, has been the foundation of growth and helps ensure quality products for our customers. The aviation sector in India has become highly promising and we are a long-term player with a strong local commitment. We look forward to working with India in a real and tangible way that vitalises the economy and paves the way for progress.

Rainer Farid

Vice President of Sales & Customers Relation, South Asia, Eurocopter

Eurocopter has had five decades of fruitful partnership with Hindustan Aeronautics Limited (HAL) and the Indian industry for many major aeronautical programmes that have benefitted the local economy. We look forward to many more decades of successful collaboration in this thriving market which is poised to be one of the largest military markets in the world.

efence Minister A K Antony asked all stake-holders to have regular deliberations and solve their problems within the initial stages of any project or programme for timely delivery of the same to the Services. Speaking at an international seminar on “Challenges in Design to Deployment of the Aerospace Products” on the eve of the inauguration of Aero India 2013 in Bengaluru, Antony said “our mantra must be jointness in day-to-day working, if we wish to succeed in reducing the content of the imported weaponry and increase the indigenous content”. Defining a ‘successful design’ as one that properly translates the design into an acceptable product, meeting the requirements of the end-users, Antony said this is not an easy task and the development and production agencies face several challenges along the way. Minister Antony said Light Combat Aircraft (LCA) Tejas was undergoing several flight and ground tests to meet the requirements of the users. The very long gestation period of development in aerospace products introduced elements of additional challenges for all the agen-

CO-OPERATION above all: Defence Minister A K Antony (centre) with Air Chief Marshal N A K Browne (left) and SA to RM Dr V K Saraswat, at the international seminar on the eve of Aero India 2013.

cies. Aerospace systems had become highly avionics and software intensive. Such technologies changes have been taking place at a mind-boggling pace. It was imperative to ensure that the user requirements were met and the designs of these requirements were finalised as early as possible. The product, along with the technologies available on the date, should be released with regular updates to take care of the technological

Israel's partnership with India has matured well

Israel’s Ambassador Alon Ushpiz on defence and security ties

A few words on Aero India and your country's participation in the event Israel's National Pavilion at Aero-India 2013 in Bengaluru will display an exciting array of some of Israel's most innovative aerospace and defence companies. The pavilion, one of the largest in Aero-India 2013, is hosted by SIBAT, Israel's Defence Cooperation Authority, a branch of the Ministry of Defence. The Israeli delegation to the air show is headed by the Director General of the Defence Ministry, my good friend General (Retd.) Udi Shani, a man whose leadership on defence issues is an asset for Israel. Representing one of the worlds' most advanced air powers, the State of Israel entrusts much of its security to its indigenously grown and developed aerospace and defence systems. Israel's aerospace and defence industries develop highly innovative and practical solutions, marked by cutting edge technologies. This is, thanks to ongoing investments in research and development and to the unique talents of a skilled workforce, the majority having gained combat experience during their military service. Among the systems which will be on display in Bengaluru are some that have been used successfully under highly challenging combat operations, proving the effectiveness and reliability of Israel's defence systems. One of

the highlights that will be displayed for the first time in India, is the 'Iron Dome' system, the indigenously developed, game-changing — first of its type — missile interception system. The Iron Dome recently performed with notable distinction protecting over half of Israel's population from a barrage of over 1500 rockets and missiles. Other highlights include the latest UAVs, radars, missiles, communications and intelligence equipment and highly sophisticated protection systems, all manufactured by the Israeli defence industries. Your country's long and fruitful partnership with India is wellknown. How do we further deepen this relationship in the field of defence and aviation? Israel and India share a wide array of security challenges. The cooperation in these fields between Israel and India has been an integral part of our ever-growing multifaceted relationship. Without going into details, the friendship and chemistry between Israelis and Indians, some of the most brilliant people in the field of defence and security, creates a partnership that is a source of pride and indeed a bedrock of security, stability and tranquility for both of our nations. The Israeli defence industries that will display in Aero-India 2013 are no-doubt the best in the world, and we are extremely proud to showcase them in Bengaluru.

advancements, he said. Turning to investment in Research and Development, Antony said R&D efforts in the country were mostly government-funded and by government agencies. He said the private sector should stepin in a big way not only in R&D but also in production. “Industries have several opportunities to participate in major defence acquisition programmes by making use of our offset policies. If our private industries also invest in R&D, I’m confident that the requirements of our users would be met much earlier than is the case now,” he said. Antony complimented the Designing and Production agencies for overcoming several challenges and giving the country such products as the Tejas, weaponised Advanced Light Helicopter Dhruv, Akash Missiles, BrahMos, etc. The seminar was attended among others by the Chief of Air Staff Air Chief Marshal N A K Browne, S A to Raksha Mantri V K Saraswat and the Secretary Defence Production, R K Mathur. — Sitanshu Kar, Bengaluru

third aero india for aisats AISATS has been appointed as the official ground handler for Aero India 2013. Following the success in the two earlier editions, Aero India has extended its collaboration with AISATS for comprehensive ground services at the show’s ninth edition which is expected to see around 52 civil and military aircraft from leading manufacturers across the globe. The mega event will witness aerobatic displays by the Flying Bulls team from the Czech Republic, the Russian Knights team and the Sarang team of the Indian Air Force. Aviation aficionados will also be treated to Medium Multirole Combat Aircrafts (MMCA), such as the French Rafale and American F-16. AISATS will be providing on-site equipment and ground handling related services for all the participating aircrafts. Specialist aircraft ground support services such as Liquid Oxygen Upliftment, Wheel Inflation through Nitrogen, Accumulator Charging will be provided to ensure safety and efficiency during pre-flight services. CEO of AISATS, Willy Ko, said: “We have been associated with Aero India as the preferred ground handling company since 2009. This alliance reiterates our commitment to provide quality services for India’s premier aerospace show. We at AISATS are poised to once again extend all necessary ground handling support to make this event a resounding success.”



AERO INDIA 2013

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geopolitics

LCA, IJT delays costing the nation W

ith the indigenous light combat aircraft Tejas getting delayed by more than two decades, Defence Minister A K Antony has pulled up the DRDO for 'delays in delivery' of military projects and asked the premier research agency to speed up its programmes. "I am happy for your achievements of DRDO but not fully happy. Delay in delivery is a real problem... Try to speed up your process and reduce time for research, development and production. Delays should be avoided," he said at the Aero India international seminar. He said he was impatient for the Final Operational Clearance (FOC) of the LCA as the DRDO is preparing for its IOC 2 after completing its 2,000 flight trials in last six years. The LCA project has been delayed by more than 20 years. After the FOC for the aircraft, the aircraft would be ready to be deployed for carrying out operational duties in the Air Force. Antony also expressed his concern over the delay in the Intermediate Jet Trainer (IJT) programme being developed by HAL. "That (IJT) project is delayed delayed delayed. You must focus on that project and by next conference that should be ready," he said. IAF Chief Air Chief Marshal N A K Browne also expressed his unhappiness over the delays in development projects saying that "so far our modernisation plans have been restricted due to slippages in time lines of many of our projects." The IAF chief also suggested imposition of "financial penalties in case of poor performance of the work centre, either by withholding further payments or recovery of money already spent." To avoid problems in development projects

in future, Browne suggested there should be "dual assessment" and the production and design agencies should be one. In the LCA project, the design agency is Aeronautical Development Agency (ADA) of DRDO while HAL is the production agency. In his address, the Defence Minister urged both private and public sector to shed their 'miserly attitude' and increase their allocation for research and development in their companies. "I am not satisfied with the investment in R&D in government also. The private sector is very very poor in R&D sector," he said. Antony said to continue the momentum of rising GDP and growing economy, the Indian industry will have to match up with global standards and for

UNWANTED Delays : (Top) the light combat aircraft Tejas and (below) Intermediate Jet Trainer.

A Moth, Peacocks, Bulls and Knights

A look at those daredevils in their magnificent flying machines The inaugural event of Aero India 2013 was not all serious business. Invitees, among who were HSBC country head Naina Lal Kidwai, were thrilled to see world class aerobatics. The display began with three Mi-8 helicopters flying with the tricolour, IAF ensign and the Aero India flag just before the event. Then came the LCA Tejas flown by Gp Capt S Krishna and

a resurrected Tiger Moth that took to the skies after decades. The primary trainer aircraft for Royal Air Force during the Second World War, the Tiger Moth was the basic trainer in the IAF from 1940. The other attractions were the Sarang helicopter team flying four HAL Dhruvs. Formed in October 2003, the Peacocks (Sarang means peacock) are regular performers at air shows. Only one of the two helicopter aerobatics team left in the world, the Sarangs are known for their display skills. Then came the Flying Bulls. The team of four pilots (a woman and three men), are skilled in formation aerobatics. Their needle-tip precision brought cheers, claps and the usual 'Oohs and aahs!' Formed in 1960, the team has been flying Zlin 50 LX and other aircraft. The team comprises renowned pilots Radka Machova, 64, Jiri Saller, 60, Jiri Veprek, 53, and Miroslav Krejci, 56, who have together logged more than 35,000 flying hours. The Russian Knights of the Russian Air Force are scheduled to perform 10 demonstration flights during Aero India. Formed on April 5, 1991, at the Kubinka Air Base, Russia, with six Sukhoi Su-27s — but today there are four Su-27Ps and two Su-27Ubs — the team is known for its daredevilry flying in adverse conditions.

that investment in R&D will have to be increased. He warned the Indian industry that "era of cheap labour and cheap access to natural resources" is going to be over soon and the only way they could be able to match up with the global industry would be through increased efficiency. Commenting on a future project to replace 56 Avro aircraft in the IAF, Antony said the Government has tried to give more role to the private sector despite HAL being "little unhappy and little angry" over it. "We are giving more space to the private industry. Even though HAL is little unhappy and little angry, it has agreed to give chance to Indian private sector for the Avro replacement programme, it is a beginning," he said.

Strengthening Indo-German Defence ties German Ambassador Michael Steiner speaks about defence and security partnerships with India A few words on Aero India and your country's participation in the event Aero India is by far the largest air show in Asia and a perfect platform for manufacturers and service providers from the international aerospace and aviation industry as well as potential buyers. Leading German companies are present in Bengaluru. The German Government will be represented by Defence State Secretary Stéphane Beemelmans. This clearly shows you how important Aero India 2013 is for German companies and for the German Government. Your country's long and fruitful partnership with India is well known. How do we further deepen this relationship in the field of defence and aviation? India and Germany are strategic partners since more than a decade. We do have regular intergovernmental consultations on cabinet level. The next meeting headed by Chancellor Angela Merkel and Prime Minister Dr Manmohan Singh will take place this April in Berlin and tackle the whole range of our bilateral agenda. Needless to say that defence and security matters are an important element of our relationship given the challenges both countries face. When it comes to the business level, a growing number of European and German defence and security companies are turning from exporters to India into investors here. Indo-German joint ventures are a significant trigger for sharing tech-

WORKING TOGETHER: (Left) German Chancellor, Angela Merkel and (Right) the Indian Prime Minister Manmohan Singh during the first Indo-German intergovernmental consultations in New Delhi.

nologies and expertise. Would it be right to say that our relationship is no more one of buyer and seller, but a more collaborative relationship? The answer is definitely yes. By investing and partnering with Indian players, German companies engage on a long-term basis in India. The key words are trust, sustainability and mutual benefit. Finally, would you be visiting the air show? Unfortunately, I was in Germany until this very morning (February 6) as I attended the Munich Security Conference. But I have already marked Aero India 2015 in my calender.



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geopolitics

Offsets spark off debate The Indian Regional Offset Conference organised by the CII saw stalwarts from the domestic and foreign defence organisations sharing their views on various facets of India’s DPP guidelines

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hat Government of India’s latest Defence Offset Guidelines as enumerated in 2012 is one of the best of its kind for its comprehensive guidelines and clarity was the consensus among the private industries and foreign Original Equipment Manufacturers (OEM) in a day-long conference co-sponsored by the Confederation of Indian Industry (CII), the Ministry of Micro, Small and Medium Enterprises (MSME) and National Small Industries Corporation (NSIC) on February 5 at Bengaluru, on the eve of the Aero India 2013. The conference was marked by the release of a book titled, ‘Emerging Opportunities in Indian Defence Acquisition’ by Air Marshal M Matheswaran. Gurpal Singh, Principal Advisor and Head, Defence, Aerospace and Security, CII, gave an overview of the Indian defence market that presents nearly $200 billion opportunity in the next 10 years, thanks to increasing demand of India’s military modernisation. According to him, this factor would help to scale up the production as well as uplift the technological and manufacturing base, provided there was proper implementation and monitoring of offset contracts as enshrined in “Defence Production Policy and Revised Defence Offset Guidelines in 2012”. Defence offsets provide Indian industries with unique opportunities to acquire and build complimentary skills and knowledge from global players and forge long-term relations with OEMs for mutual benefit. OEMs that sell their defence products worth `300 crore have to invest directly and indirectly 30 per cent worth of that sum in Indian strategic industries: defence, space and homeland security. The basic idea here was to strengthen the indigenous defence infrastructure in the country. However, various representatives from the Indian private sector that are

keen on joint ventures with the OEMs in carrying out the offset obligations pointed out while participating in the deliberations of the conference that despite the clarity in the objectives, the offset requirements had some bottlenecks in terms of implementation which explain why there has been very low volume of services. Pritpal Singh Chhina, Head — Aerospace and Defence, Wipro Ltd. regretted that there was no publication to provide the data of the numbers of offset projects being signed and implemented in the country. There was thus a lack of transparency in the offset accounting. Besides, there was no level-playing field for the private sector and public sector as far as governmental support was

MSMEs: UNABLE TO FLY HIGH

W

hy are our MSMEs unable to take off and align themselves with global suppliers? There cannot be two opinions that MSMEs bring great benefit to the table. They are nimble, cost efficient and adaptable. One great example of a successful MSME is Dynamatic Technologies. It is the sole global vendor to assemble Flap-Track Beams for the Airbus Single Aisle A-320 Family of Aircraft. However, in the case of India, things are little different and there are plenty of reasons, according to E&Y’s Ankur Gupta. In a brief but riveting presentation, Ankur literally ripped apart the case that MSMEs have a bright future in the present scheme of things. Here is a gist of his argument: • Raw material is an issue. It is usually a metal and one has to buy from buyer-nominated suppliers. Usually, you require it in small quantities (25-50 kilos) and it cannot, therefore be sent by container. As a result it has to be air freight and the costs are prohibitive. • Market access is an issue. Offset obligations are in crores and for companies to know of the MSMEs, they have to participate in global shows which are expensive. Why even Indian shows like Aero India are now so prohibitive that a company ends up spending upwards of Rs 50 lakh for a decent presence at any show. He is simply in no position to incur these kind of costs.

• Precision equipment has again to be imported from Japan, Europe or America and they are hugely expensive.Technology does not come free. Even if an offset partner where to transfer technology, it would expect the partner to manufacture and make some profit for them as well. So there is a cost attached to the technology as well. • Quality personnel are another issue. India has a huge reservoir of engineers but few of them are specialized in the cutting edge requirements of the aerospace industry. So, they end up taking bright kids from the Industrial Training Institutes and training them and see them being poached just as they are ready. • Any programme runs over several years and no vendor is going to pay his supplier unless he receives money from the government for sales. This could well be four or five years. Can an MSME hope to collaborate and wait for so long a time for his first payment? • Unlike ISO certification that are used by the auto industry, Aerospace industry certification are far more complex and hugely expensive costing upwards of Rs 5 lakhs and regularly renewable. Can MSMEs afford it? • The Foreign Investment Promotion Board does not have a separate wing for MSMEs and industrial licenses cost a huge amount of money.

OFFSET DEBATE: Defence Productions Secretary R K Mathur with panelists and (left) Gurpal Singh and (right) Air Marshal M Matheswaran

concerned, be it in the process of acquiring defence licences, a vital requirement for joint ventures with foreign OEMs, or protection of foreign exchange rate variations. It was in this context that many felt the need of an independent agency for offset evaluation and execution that would coordinate between the Ministry of Defence (MoD) and other ministries including the Finance Ministry and Ministry of Home Affairs. N K Sharma, CEO, OIS Advanced Technologies, said that while India’s Defence Procurement policy (DPP) was evolving and becoming better with the changing times, the government was not doing enough to develop the required infrastructure to attract the Small and Medium Enterprises (SME). He was of the opinion that the government should provide the SMEs tax benefits, soft loans and facilitate their interactions with foreign OEMs, besides promoting quality technology. Further elaborating the evolutionary nature of the offset process, Major General (Retd.) N S Vidyarthi, Former Technological Manager, Land System, MoD, said that there were pertinent points made by many as to why the minimum benchmark of `300 crore for offset obligations by the foreign OEMs should not come down and the maximum benchmark of 30 per cent should go up as per the norms of many leading countries buying arms on a large scale. On the other hand, the global perspective on the offset regime was fairly positive on the Defence Procurement Policy (DPP) 2012. The policy, per se, won praise for taking the entire procurement regime way forward and believed that it would help assimilate the Indian manufacturing sector into the global supply chain. As one of the speakers noted: “India was not a transactional market, but a long-term market for most manufacturers who look at the country for growth and productivity.” PJ Hart, Director of International Affairs at the Aerospace Industries Association, raised a few laughs when he spoke of the ‘Herculean effort’ by the Ministry of Defence in the DPP for 2012 that he described as a ‘win for MoD’ and said that with this document both the manufacturers and the MoD were on the same page. Hart felt that it would do Indian industry, particularly the private sector,

enormous benefit if there could be ‘retroactive application’ of DPP 2012. Hart also felt that the clause for ‘permission to change offset partners’ in exceptional cases was a little vague and the threshold needed to be lowered where such changes could be far easier. “Offset obligations are sometimes fulfilled over 8-10 years and flexibility to change partners and projects are awarded all the time abroad.” He wished that the MoD would look at these examples. Defence Offset Facilitation Agency (DOFA) that has now been replaced by the Defence Offset Monitoring Wing (DOMW) to monitor the implementation and execution of this policy should not make it “DOFA by another name” said Hart and hoped that it would be far away from South Block implying that it must have some independence in thinking and the strength to take independent decisions. John L Williams, President and CEO of William Global Advisors said that one of the critical issues that confronted overseas companies was the fear of guarding their ‘intellectual property’; “they wonder how that can be protected and if there are questions over safeguarding their IPR”, there will be reluctance on their part to be forthcoming. He felt there was a lack of basic understanding on these issues and unless standards were established it would be difficult to have a successful offsets programme. Mayank Patel, Managing Director of TriPolus from the UK, said that there was really no understanding of the way the offsets regime had progressed in India. “There is over $ 4.7 billion worth of offset obligations, but how much of offset credits has been accrued no one knows.” He felt that one needed the data in order to comprehend where the real roadblocks were and pave a smooth way forward. Patel also felt that the SMEs were too small to fit into the supply chain of the likes of Lockheed Martin and Boeing and that it would be best if an Indian company that was doing business with a global vendor could work with a cluster of SMEs and offset credit could be offered for creating a providing a platform for the SMEs. Amongst the highs for most speakers was the period of performance extension, introduction of multipliers and the extension of offset banking period. The negatives were the lack of institutional arrangement to guard IPR and the high threshold to change offset partners. The conference concluded with Defence Production Secretary R K Mathur releasing a ‘Directory’ of the MSMEs. — Our Correspondent


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Can offsets be effective

for growth? T

he declared intentions of the Indian Ministry of Defence are to help India develop with a stronger defence capability and a stronger domestic defence industry. To leverage its buying powers in developing, strengthening and promoting its domestic capabilities, offset provisions were introduced in 2005. Such offset provisions are essentially mechanisms for ploughing back a minimum of 30 per cent of the contract value into India. As global supply chain patterns shift decisively towards non-traditional geographies of Asia, India with its comparative advantages in advanced engineering and IT certainly offers a lucrative venue. Presence of a large number of small players with niche technologies that have historically been feeding into government defence manufacturC-130J ing like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), etc. form a potentially strong base that can be scaled up with the right support and handholding. The recent trend shows a new emerging interest from various business houses with historical manufacturing skills in IT, automobile, precision-manufacturing that are keenly participating as partners

for offset projects primarily in order to diversify from their traditional businesses and risk mitigation. With rough estimates putting the value of offsets to be around $50 billion, this would be a great opportunity for these companies to garner global learnings and expertise along with tangible orders with a potential to become part of the global supply chain. There will be a learning curve for domestic companies and the Indian government who are not yet fully equipped to understand and meet the needs of foreign companies as well as their partners. The Indian companies will have to learn how to perform better and global companies will have to exhibit a degree of patience and the art of hand holding while the domestic companies scale this curve. There is a

need for the domestic industry to compulsorily focus on core essentials and to successfully partner in the global supply chain of this industry and develop robust global commercial rela-

geopolitics

BEL

to sign a slew of

MoUs tionships. While the opportunity potential seems attractive, few regulatory challenges in this participation pose operational hindrances. Companies looking to enter into this sector are faced with various ambiguous sectorspecific regulations that are required to be complied with to be qualified as a defence manufacturer. Capping of Foreign Direct Investment (FDI) to 26 per cent, requirement of an industrial licence, prior approval for exports are some of the hurdles. While these regulations would aim to provide a method of checks and balances, but in reality these are limiting the domestic defence industry’s growth. The lack of success in implementation of offset contracts on ground is one example, whereby most offset contracts are running behind schedule. Our research indicates that of the 12 contracts signed by the Ministry of Defence: ‒ 9 contracts worth $3,000 million have on ground implementation of less than 5 per cent ‒ 2 contracts worth $400 million have on ground implementation of 10 per cent ‒ One contract worth $ 44 million has on ground implementation of >25 per cent This implies the gap between the formulations of policy and its ability on ground implementation. — Neelu Khatri

Bharat Electronics Ltd (BEL) is likely to sign an MoU with Dassault. The MoU will help BEL partner Rafale for the integration of the Synthetic Aperture Radars (SAR) and Electronic Warfare (EW) suits. Rafale won the MMRCA bid last year and the final contract is awaiting signature by the two sides. Insiders state that BEL may also sign collaboration agreements with Elbit Systems Israel, to jointly develop the Compact Multi-purpose Advance Stabilisation System (CoMPASS) used in a wide spectrum of naval applications. The Navy has apparently opted for CoMPASS for its costal surveillance project. Several critical pieces are likely to fall into place as part of this deal—particularly airborne applications in a transfer of technology deal. For the record it may be mentioned that BEL is focussing on Network Centric Warfare (NCW) elements at the show including SCA (Software Communication Architecture)compliant Software Defined Radio (SDR), in various. BEL’s entire focus is to present itself as an excellent partner who can collaborate effectively and in a time bound manner in a wide variety of projects.


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BrahMos shows its deadly prowess T

he air-launched version of the BrahMos supersonic cruise missile, which is expected to see its first launch by the end of this year, and its indigenously-developed components are the main focus of the Indo-Russian Joint Venture firm at the ninth edition of the biennial Aero India. Under a `6,000 crore project, the BrahMos Aerospace corporation is working to develop a variant of the missile which would be fired from IAF’s frontline Su-30MKI fighter aircraft. “The air-launched version of the missile is a lighter version of the missile but retains its lethality and speed of 2.8 mach. We would be displaying its full-scale model along with the indigenously-built airborne launcher integrated on the IAF’s Sukhoi-30 fighter jet during the international event,” BrahMos officials told Geopolitics. “The BrahMos missiles integrated on the Su-30s will help the IAF achieve the capability to deliver a deadly blow to enemy formations from stand-off ranges of around 300-km without getting close to them,” they said. Work on modification of two Su30MKIs is also going on at the HAL plant in Nashik where they will also be integrated with the aerial launcher developed by the BrahMos. As per plans more than 40 Su-30MKIs of the IAF are to be equipped with the BrahMos air launched missiles of which 200 have been ordered so far by the force. Also making its debut at the aero show is the underwater launched BrahMos. The BrahMos, which is now the main stay of the Navy’s surface warships and is already on eight off them, is now set to emulate the feat in the under-water inventory of the maritime force. “The sub-sea version of the cruise missile system is set to add more teeth to the Navy’s underwater weapons delivery capability, thereby increasing its offensive prowess manifold. The underwater launched BrahMoss configuration will be on display at Aero India,” officials said. The most-advanced futuristic version of the missile known as the Hypersonic BrahMos II would also be highlighted at the show for which the work has already

started on both Indian and the Russian side. “The hypersonic BrahMos is being envisioned to travel at a speed of Mach 5 to 7 Mach. The new missile will be more superior in terms of its devastating capability and would provide an advantage to the Indian armed forces in future warfare,” officials said. Once the hypersonic version of the missile is ready, it would give no reaction time to enemy and would be the most lethal weapon in the armoury of the armed forces that would require only a few seconds to accomplish their operational tasks. “BrahMos Aerospace has initiated efforts to build the futuristic missile system by tying up with leading aerospace institutions of India and Russia. It has inked a MoU with the prestigious Indian Institute of Science (IISc), Bengaluru and with Russia’s Moscow Aviation Institute (MAI) for carrying out research in high speed aerodynamics technology,” BrahMos said. The land-based and the naval variants, which are already in operational service in the Army and the Navy, would also be exhibited during the show. “The land-attack version of missile on the stateof-the-art Mobile Autonomous Launcher (MAL) will be on display during the aero show. The mobile land-based configuration of BRAHMOS has achieved several advancements over the years in the form of Block I, Block II and Block III variants with each having its own distinct potentiality to hit and destroy enemy targets,” BrahMos said. The Army has placed orders worth several thousand crore for procuring four regiments of the BrahMos so far for deployment in operational areas along the northern and northeastern borders while the Navy so far the system on eight of its surface warships and will be the main stay of the anti-ship and land attack armoury of the force. Also on display at the show would be the naval version of the missile, which has recently witnessed two successive successful test firings from Indian warships. During its test firing from INS Teg — the Navy’s recently commissioned Talwar-class guided missile frigate in

ARMED AND READY n The BrahMos with its steep-dive ca-

pability can prove to be highly effective against enemy targets located in the shadow of mountains. India shares a large mountainous boundary with both China and Pakistan.

n The hypersonic ver-

would give India the capability to take out both ships and targets on land. n

sion of the missile, once it is realised, would be a gamechanger as its high speed would give a window of only a few seconds to the enemy to protect itself from the weapon after its launch. ON LAND, ON SEA AND UNDER

The sheer kinetic energy of the missile due to its speed makes it more effective for target destruction even with a lesser weigh warhead.

airlaunched version of the missile would help the IAF to destroy enemy targets deep within its territory without even flying close to them. By the time the missile would WATER: BrahMos, now the mainstay hit its target, the airn The submarine of the Navy's surface warships is all set craft would be on its launched BrahMos to show off its under-water prowess. way back to its base.

October, the missile performed high-level manoeuvres and destroyed target ship at a distance of 290 kms. In another successful test firing from INS Ranvijay on January 9, 2013, BRAHMOS, after taking a “double-manoeuvre in S-form”, annihilated a designated target ship 290-km away by ripping through its hull. The ship-based configuration of the tactical missile, which is the prime strike weapon for the Indian Navy, has been deployed on several frontline warships. “The naval variant of BrahMos has been successfully test-fired in both vertical and inclined launch configurations from moving warships. The powerful missile can be launched in solo or salvo mode and can completely destroy single or multiple targets within few minutes,” officials said. The Indian Air Force has also placed an order for procuring the land-attack version of the missile. The missile firm

folio of Com te its full port o m ro p ill d w an Embraer Aviation ion, Executive and services mercial Aviat rity products u e ec S d an egacy jets ar Defense Embraer’s L f o e er iv rd F o . B ia d Aero Ind rce (IAF) an f Indian Air Fo sportation o used by the F) for the tran S (B m e E rc , o n F io Security s. In addit ign dignitarie collaborated VIPS and fore Security has d t an se en ef Developmen braer D Research & se en 5 ef 14 D B ’s M E ia with Ind eate three (DRDO) to cr Early WarnOrganisation as Airborne se u r hich fo s rm o raft, two of w jet platf rc ai ) C & W E trol (A f the Embraer ing and Con year. Three o st la ed isplay: er iv el were d e on static d b ill w ft ra rc ts ai long-range Executive Je om 100, the en h . P l ve le yLineage 1000 the entr e ultra-large th d an 0 65 Legacy

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would also release an updated version of its Brahmand World Defence book, which was first launched by Defence Minister A K Antony at the Defence Exhibition (DEFEXPO-2012). “Brahmand World Defence Update 2013 is a comprehensive compilation of military database of over 100 countries worldwide. The yearbook has focussed on listing the defence capabilities, new arms acquisitions and military expenditure of a total of 113 countries alongside their political set-ups and economic strength,” officials said. “It also contains strategic information on 30 important countries, focussing on their geopolitical importance, strategic relations, threat perspective, defence capabilities and latest military acquisition/ procurements. The yearbook aims at providing important military information to users, defence establishments and analysts in general,” they added.

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IAF C-17 engines from Pratt & Whitney delivered P

ratt & Whitney, a unit of United Technologies Corp., has delivered the first 10 F117 engines to Boeing to power a fleet of C-17 Globemaster III transport aircraft for the Indian Air Force. The Ministry of Defence signed a Letter of Offer and Acceptance with the US government in 2011 to acquire 10 C-17s. The first of these C-17 aircraft is now going through a US Air Force flight test programme at Edwards Air Force Base in Palmdale, Calif. The Indian Air Force is scheduled to take delivery of its first five C-17s this year and five in 2014. “Pratt & Whitney is delighted to be delivering the first batch of engines that will power the Indian Air Force’s C-17 fleet and we’re pleased to have them join the growing international fleet that flies this premium airlifter,” said Bev Deachin, Vice President, Military Programmes and Customer Support, Pratt & Whitney. The C-17 Globemaster III — the world's premier heavy airlifter — is powered by four F117 engines, each rated at 40,440 pounds of thrust. The C-17 transport, exclusively powered by Pratt & Whitney engines, is capable of taking off from a 7,600-foot airfield, carrying a payload of 160,600 pounds, and completing a flight of 2,400 nautical miles without refuelling. The F117-PW-100 first entered service in 1993 and is a derivative of Pratt & Whitney's PW2040 commercial engine. With nearly 10 million hours of proven military service and 50 million

hours in commercial use, the F117/PW2040 has consistently proven itself as a world-class dependable engine. Through Pratt & Whitney’s ongoing investment in product improvements, the engine continuously surpasses established goals of time on wing and support turnaround time. Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.

Boeing focuses on

CRPF to shop for UAVs

While the world’s major defence aviation manufacturers are all set to woo the Indian armed forces, a few top officials from the country’s Central Reserve Police Force will be seen at Aero India. Their aim: order Unmanned Aerial Vehicles (UAV). These UAVs have become essential for the forces for Naxal operations in Chhattisgarh, Jharkhand, Orissa and Bihar. According to a senior CRPF official, there were certain operational problems that the forces in Naxal operations were facing. “Whenever we want to use the UAVs, we have to depend on the IAF personnel who have never been in the jungles. They don't know the terrain. We have to depend on their expertise. We want to take control of these added advantages," said the officer. The CRPF officials will be on the lookout for a suitable vendor who can either sell or provide the UAVs on rent. The National Technical Research Organisation (NTRO), which operates three UAVs from its base in Hyderabad, reportedly refused the CRPF’s request for help saying that the area of operations was 'too far'. The UAVs with NTRO are operated by IAF personnel on deputation.

india partnerships

B

oeing underscored the strength of its commitment to expand its partnerships in India to become the aerospace company of choice in this important market. Company executives at the Aero India 2013 further emphasised that local presence, collaboration and integration are key to Boeing’s success in India, and that the company is uniquely positioned to offer Indian customers the best in technology, capability and support. “We are investing in collaborations and partnerships with Indian industry and academia to jointly harness the full potential of India and Boeing,” said Boeing India President Prat Kumar. “This winning relationship will provide a fantastic opportunity to build a

strong future for India’s aerospace industry. India is also an important customer, and we are here to remain responsive to our commercial and defence customers’ requirements. We are definitely here for the long term.” “The induction of Boeing P-8I and C-17 aircraft and Harpoon missiles in India’s fleet will significantly enhance the country’s maritime surveillance, anti-submarine warfare and airlift capabilities,” said Dennis Swanson, Vice President, International Business Development, Boeing Defence, Space and Security. “Boeing is focussed on delivering its commitments to India’s Ministry of Defence, Indian Navy and Indian Air Force and looks forward to a closer partnership in 2013 and beyond.” “We continue to see strong growth

in India’s commercial aviation market and look forward to meeting that demand,” said Dinesh Keskar, Senior Vice President of Asia Pacific and India Sales, Boeing Commercial Airplanes. “Our complete family of airplanes will help Indian airlines provide reliable, comfortable passenger service and fuel-efficient operations.” Boeing is on track to deliver three P-8I long-range maritime reconnaissance and anti-submarine aircraft to the Indian Navy in 2013 and the remaining five by 2015. The Indian Air Force will receive five C-17 Globemaster III airlifters in 2013 and five in 2014. Boeing has proposed its AH-64 Apache to become the Indian Air Force’s next attack helicopter, and submitted its CH-47 Chinook for the heavy-lift helicopter competition.



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AEROSTATS

move into battle gear They may look harmless and inert but are slowly being put to use for a variety of reasons

D

erived from the Greek words aer (air) and statos (standing) an aerostat is lighter than air object, that can stay stationary in the air. They are rigid aerodynamic structures filled with helium and air where helium provides the lift component and the air the shape. Aerostats have been used historically for military surveillance. They are tethered to the ground by a cable that also provides power. A number of companies are involved in the design and manufacture of aerostats in Europe, Asia and North America. Leading among them are Raytheon, Lockheed Martin and Israel Air Space Industries. Present-day aerostat systems use a 100-250 feet long helium filled unmanned balloon, equipped with radar and other sensors. The larger of these aerostats are more than twice the size of the familiar advertising balloons. An aerostat is designed to always turn into the wind and stay in the same place. It is empowered and secured by a cable that can keep the aerostat in position at its maximum altitude of 15000 feet. At that altitude a large aerostat can carry a two ton payload. The cable also supplies the power, enabling the balloon to stay up for about 30 days at a time, before it is brought down for maintenance of payload. Aerostats are ideal platforms to elevate various payloads for prolonged durations of time. Aerostat systems can be tailored to specific need based requirements. The selection of the type of aerostat is dictated by the type of payload required. Hence there can be a small size aerostat with payload capacity of 40-50 kg, operating at an altitude of 1000 feet, a medium size aerostat with payload capacity of 250-300 kg operating at 6000 feet or large aerostat, for multirole applications carrying payload of 1500-2000 kg and operating at 15000 feet.

US Experience The requirement for the tethered aerostat radar system network was established in 1984 by the US Customs Service to help counter illegal drug trafficking. Since then the role and employment of aerostats has largely shifted towards military applications. In response to the ongoing threats to the US and NATO troops in Afghanistan and Iraq, the US has deployed a number of small aerostats equipped with ground surveillance sensors for force protection, surveillance and safeguarding forward operating bases. One of the aerostat systems deployed is the Rapidly Elevated Aerostat Platform (REAP), which operates at a height of 300 feet and carries day and night vision cameras. Also deployed are the Rapid Aerostat Initial Development (RAID) systems in Iraq, Afghanistan, and Kosovo. This aerostat is twice the size of REAP and operates at 1000 feet. It carries a suite of day/night cameras and radar for battlefield surveillance. There are presently a number of different types of aerostat systems deployed in Afghanistan and Iraq, which relay real time information when connected to the Army Battle Command System. The biggest problem confronting all major armies of the world is tracking of cruise missiles. In this regard the US Army is presently working on the Joint Land Attack Cruise Missile Defence Elevated Netted Sensor System (JLENS) programme, for cruise missile defence. The system will have two aerostats with two different types of radars, one for persistent surveillance of battle space and second to precisely track the cruise missile and guide an intercepting weapon. Aerostats in Indian Armed Forces Presently only the Air Force holds and Floating giant: An Israeli-supplied aerostatbased radar for the IAF in operation.

operates aerostats in India. The Army is also looking at acquiring the aerostats in the immediate future, with the Navy also showing an interest. However, the employment philosophy of Army and Air Force on aerostats differ. While the Air Force is looking at enhancing its strategic aerial surveillance capability to include aerial surveillance, air defence control and reporting and electronic/communication intelligence, the Army is purely looking to enhance its long range surveillance capability. The primary role would include Battle field Surveillance, Direction of own Artillery fire, Post strike damage assessment, Control of Unmanned Aerial Vehicles (UAVs) at extended ranges, Communication repeaters and Electronic Warfare. The Air Force is currently operating a limited number of large aerostats (EL/M 2083). These can detect targets upto 100-150 kms. The payload on board includes Advanced Programmable Radar (APR), Electronic Intelligence (ELINT), Communication Intelligence (COMINT), V/UHF radio telephony and Identification Friend or Foe (IFF). Each of these aerostats is capable of providing three dimensional low-altitude coverage, which is equal to 3040 ground based radars. The aerostat has the capability to be integrated with AWACS and ground air defence environment and function as a command and control centre. Depending upon the payload the aerostat can be raised to a height of 10000-15000 feet. The system gives a seamless radar coverage of 300 kms plus at low level, along with good communication range and requisite ELINT. The air force is looking at acquiring more such aerostats to add to its inventory. The Army’s requirement would obviously be a medium sized aerostat which is able to detect targets upto 50-70 kms.

The payload would have a bias towards tactical battle field surveillance. Presently the Army plans to acquire medium category aerostats which will further augment the existing surveillance resources and enhance its reach considerably. These will be held by the Artillery units already holding surveillance equipment like the UAVs, battle field surveillance radars and weapon locating radars. Incidentally as per reports, Pakistan is stated to have acquired six Lockheed Martin L 88 aerostat systems from the USA. Vulnerabilities/Limitations There are however, some vulnerabilities and limitations which at times restrict their employment. Weather, wind speeds, lightening and thunder are some factors which affect its employment. By virtue of its size, it becomes a prime target for the enemy and hence requires protection in terms of its deployment and air defence cover. Because aerostats are not highly pressurised, bullets won’t burst them and they can remain buoyant despite punctures. Despite its vulnerabilities aerostats today are fielded by a number of countries due to its inherent advantages over UAVs and unmanned aircraft. The main plus point is the low life cycle cost and long dwell time. Also the operational need for aerostats has been well established, especially in the surveillance role and this outweighs all other factors. The USA and NATO forces are effectively using the aerostat in Afghanistan, Iraq and Kosovo. Closer home with air force already holding aerostats and army planning to acquire them, there is an urgent need to address the issue of air space management to facilitate optimum utilization of the aerostats. — Geopolitics Bureau


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Turboprops fly to calmer skies G eneral Aviation (GA) and non-scheduled services are expected to pick up steadily, primarily driven by a booming economy and facilitated by business needs to invest in more productive hours every day. One of the major reasons for growth in the business and GA markets in India is the rising revenues of Indian corporates and the increasing number of high-net-worth individuals. Another crucial factor which has spurred the growth of non-scheduled aviation is that commercial flights are mostly limited to metropolitan areas and large cities and not to the smaller cities in the hinterland. Tier II and Tier III cities in India have shown huge potential for the development of GA. Home to between two million and four million people each, these cities are local and regional centres for manufacturing, trading and logistics. Technologically advanced turboprops are ideally suited to routes in the 1,000-kilometre range and are significantly cheaper to operate than regional jets. Today’s Turboprops have the same accoutrements as the jets - radar, GPS, HUDs. And they even have noise cancellation making them about as quiet, even though they have huge props spinning a few feet away from the cabin. Globally, in 2011, the production of turboprop aircraft went up by 42.9 per cent, while the production of jets dropped 8.9 per cent. As far as the US is concerned, the production of turboprop aircraft went up a massive 76.3 per cent, and the production of piston engine aircraft decreased by 7.0 per cent with the production of jets remaining unchanged. The demand for short haul aircrafts could increase manifold in coming years with their capability of reaching destinations not served by the scheduled

airlines. Globally, from 2009 to 2012, orders have more than doubled. The reason appears to be increasing fuel prices, ability to land in smaller airfields and improvement in cabin comfort levels. Recent demand for turboprops has been driven primarily by emerging markets as large developing countries with burgeoning middle classes with pent-up demand for travel are ideal customers. An airline needs a comprehensive network and a large number of destinations that it can provide to its customers. One way to supplement the network is to have smaller aircraft flying short distance routes with lower passenger volume. The economics of a turboprop makes sense on short-haul operations, opening routes which were earlier considered unprofitable. Turboprops are the ideal complement to a fleet for airlines operating medium-haul routes, opening up regions which have up to now been little or poorly served. Malaysia Airlines' subsidiary Firefly, has proven to be profitable with its fleet of turboprop aircrafts. Garuda Indonesia is set to purchase 50 turboprop aircrafts to remain competitive by having the ability to offer new routes. It is not surprising that Aviation Industry Corporation of China (AVIC) held a launching ceremony and mobilisation meeting for the development of a newgeneration regional turboprop project this December. Civil aviation in India is expected to grow and dominate in this decade. However, this would be possible only if airlines manage to connect Tier II cities with the rest of India. Turboprops, with their short takeoff rolls and fuel efficiency in short-haul flights, are a perfect solution for tier II cities. They can ideally operate as feeder services to the mainline carriers. On low-density regional routes,

the next stage: The Bombardier Q-400, a modern turboprop marvel

it makes sense to deploy turboprops rather than jets, especially in the prevailing situation of high fuel prices. Presently, Jet Airways and Kingfisher fly the ATR-72 /42s turboprop aircrafts to these cities. Air India regional flies about 7 ATR-42s. Newer airline like Spicejet have on order 30 new Bombardier Dash 8 aircraft’s and the airline plans to connect tier II cities like Salem and Raipur with metros like Chennai and Mumbai in the near future. Turbojets are also excessively used for business aviation to carry 15 or lesser passengers. Business aviation customers in India who would have earlier shopped for a jet are now considering turboprops for their low cost of operation and ease of landing and takeoff from air strips less than 250m long. These aircraft have a tremendous growth potential in India, if the challenges pertaining to lack of han-

gar and parking spaces, lack of maintenance facilities and the tedious process of getting clearances are not allowed to be a drag. Further, aviation infrastructure in smaller cities can improve much faster if state governments go an extra mile to hasten land acquisition procedures and expedite necessary clearances. Mahindra Aerospace, with their acquisition of two Australian companies — Gippsland Aeronautics, a manufacturer of small aircraft and Aerostaff, an aircraft component manufacturer — appear to have made a right choice of becoming a player in the turboprop market. Moreover, NAL too has decided that the turbopropvariant is a better solution for the Regional Transport Aircraft proposal under the National Civil Aircraft Development (NCAD) programme. —Rajiv Chib


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Russia-India partnership reflects the privileged strategic nature of relationship Russian Ambassador Alexander Kadakin on the relationship with India A few words on Aero India show and your country’s participation in the event. The Bengaluru aero show, despite its relatively short record, has proved to be one of the main grounds for showcasing global achievements in aviation and space spheres. Russian enterprises have traditionally been taking an active part in the event. This year, Russia will be represented by 37 enterprises and ventures from civil and military aircraft industry, with many of them being partners with Indian companies for decades. Among them are such reputed firms as the Sukhoi Company, RAC 'MiG', Ilyushin Company, Irkut Corporation, Concern 'Almaz Antey' and many others from various Russian regions. Your country’s long and fruitful partnership with India is well known. How do we further deepen this relationship in the field of defence and aviation? Russia and India have been cooperating in the military area for more than five decades now. Such collaboration is an unprecedented example of exceptionally diversified, strong and trusted partnership fully reflecting the special and privileged strategic nature of relationship between our countries. Russia, no doubt, is India’s most consistent partner, with the Indian share in Russian military exports amounting to 30 per cent. Only in 2001-2010 the con-

tracts signed were worth more than $ 30 billion. More than 20 intergovernmental agreements were sealed. The current portfolio totals to $ 10.5 billion. The official visit of President Vladimir Putin to India in December, 2012 saw the signing of contracts for increasing the licenced production of Su-30MKI aircraft and additional supply of Mi-17V-5 helicopters. There are projects underway for licenced production of aircraft engines of AL-55I series and the third modification of RD-33 series. Serial modernisation of MiG-29 is in preparation. The contract for supply of 16 MiG-29K/KUB deck-based aircraft is completed, and the Russian side has proceeded to additional delivery of 29 more fighters. The joint development of prospective fifth generation multi-purpose fighter and multi-role transport aircraft has reached the stage of practical implementation. Another project, the production of the unique and, in my eyes, world’s best precision-guided supersonic 'BrahMos' cruise missiles is also successful. In this process, Russia provides India not just the hardware but also the knowhow on such broad scale that is incomparable with any other country. Numerous projects are in the pipeline pertaining to aeronautic engineering, armoured infantry vehicles, jet engines, missiles, tanks, warships and other specialised equipment. For instance, Russia is ready to offer to India with its long coastline the amphibious multirole aircraft 'Beriev Be-

200' that has no analogues in the world, as well as surface-effect airborne ships. Russian producers participate in tenders for supply of air defence systems, helicopters, various armoured vehicles and small arms. We sell to India razor-edge weapons in our disposal, rather than 'export samples' with simplified functional features offered by some other countries. It is noteworthy that besides military products we are also working on promising areas of cooperation in civil aircraft engineering. At present the process is underway to certify Russian aeronautical products in India, to provide technical maintenance to the earlier supplied equipment, to organise in India licenced production of aircraft and aviation components, to participate in India-conducted programmes of developing new models of aircraft and many others. Indian air carriers are supplied with Mi-171E and Mi-172 helicopters. JSC 'Russian Helicopters' and Hindustan Aeronautics Limited are examining the prospects of jointly developing new modifications of the Russian Ka-226T helicopter, including its medical, rescue and other versions. Would it be right to say that our relationship is no more of buyer and seller, but a more collaborative relationship? Quite so. New trends are already a reality. There are bright prospects for greater cooperation in helicopters. Now

Alexander Kadakin

Ambassador of Russia

it is possible not only to jointly operate these machines as done by the RussianIndian joint venture 'Integrated Helicopter Service', but also to jointly modernise them as required and then to market these joint products internationally. This also applies to the BrahMos joint venture. Our military cooperation steadily shifts towards license transfer for production of Russian arms in India; R&D of advanced and hi-tech military products with combined efforts of Russian and Indian specialists; modernization of Russia-made weapons now in the Indian Army and creation of new joint ventures. Finally, would you be visiting the air show? Certainly. The Russian Embassy and the Ambassador personally always take an active part in holding and, more importantly, in preparing the Bengaluru air show. We provide all possible assistance to Russian participants seeking to yield a good harvest at this important event.

Time to make a mark Marc Verguin, Deputy Director, Business Development India, Nexter Systems, is looking to take the Company into the next phase with his ambitious plans. He talks about the landing the contract for THL-20 turrets for the Dhruv, the partnership with Larsen and Tourbro and efforts to pitch land defence systems to the Indian Ministry of Defence.

GETTING INTO THE GROVE: Nexter has ambitious plans to expand its footprint in india and marc verguin is leading the charge

Provide our readers an overview of your involvement with the Indian Dhruv ALH and LCH programmes and about your lightweight THL20 gun turrets. In 2006, Nexter was awarded for a contract for the adaption, the qualification and the delivery of 84 THL-20 for the Dhruv helicopter. The first phase of the programme included the development of the feeding system specific to the ALH, the qualification on the helicopter and the delivery of the first 20 turrets. Up to now, development and qualification works have been achieved and the first 20 turrets have been delivered before November 2011. Nexter expect to receive the purchase

order for the next 16 THL-20. Delivery should begin in October 2014 in order to match the needs of the ALH programme. Where do you see this deal with HAL for the ALH and LCH programmes growing in the future? In 2010, Nexter Systems answered to a RFQ for the LCH with the THL-20 and an appropriate feeding system. This solution maximises the commonalities with the armament of the ALH Dhruv helicopter and consequently reducing the cost in simplifying logistic support and training for the customer. We have the capability to respond to any solicitation from HAL on this subject. Nexter sees this programme as a real opportunity to reinforce the partnership with HAL which is already excellent.

operational by next months. Considering the kind of products portfolio Nexter has, what is the assessment of your growth prospects in the Indian market? Nexter product is mainly designed for Land Defence Systems to Armies and supplies weapon systems to Air Forces and Navies. Nexter products can answer the need of the Indian Army. It is absolutely crucial to understand the industrial issues in India and look out for potential partners. Our solution combines equipment and systems with a long-term maintenance, repair and overhaul service offer.

How has the last year's deal with Larsen and Toubro for manufacture of artillery guns for the Indian market progressed? What are the timelines for going full steam with this arrangement? Nexter Systems has continued the work started in 2011 with Larsen and Toubro for the customisation and the indigenisation of our towed gun system (TRAJAN®). The demonstrator which will be delivered to MoD for evaluation will have a large part of Indian content produced by Larsen & Toubro. Our cooperation will continue to be ready for the serial production as per MoD request.

What's your strategy to achieve your growth targets in India? We feel that we can play a role in the defence opportunities that have a great interest to us. As I said, we need to understand the Industrial issues this is what Nexter Systems India Private Limited will focus on in the coming years. This will be very important element for our ToT processes. Our approach is modest and respectful we worked very much with perspective of transfer of technology. We are convinced that we can work with this model. Nexter Systems is the thin layer system integrator and we rely greatly on the competence and professionalism of the supply chain. As we strongly believe that this model could be transfer very easily to India, we wish to develop a long term partnerships with Indian Industries and Indian Forces.

Your India office plans, are they moving in the right direction? Or are they any change in plans? Our Indian office is going according to our plan for beginning of 2013. Nexter Systems India Private Limited is actually in final phase of the process and will be fully

What are the capabilities that you will be showcasing during Aero India 2013? Nexter Systems is well known in providing Equipment to Land Defence. Aero India gives us the possibility to show the will and the capacities of Nexter in providing Equipment/Systems to Air Force as well as ammunitions.


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Rosoboronexport moves to boost

Indo-Russian defence ties A Rosoboronexport delegation will present the latest export models of Russian aviation and air defence equipment and discuss the promising areas in military-technical cooperation between Russia and India and other countries in the Asia-Pacific region at Aero India 2013. The show will provide a new impetus to strong positive military-technical cooperation between Russia and India and other countries in the Asia-Pacific region. Rosoboronexport will present the Yak-130 combat trainer, Il-78MK-90 tanker, the newest Il-76MD-90A military transport aircraft, Be-200 multipurpose amphibian, Mi-35M, Mi-26T2, Ka31 and Ka-226T helicopters, as well as many other new samples of the Russian aircraft industry, including training aids and airborne weapons. Russian planes and helicopters have proven to be worthy in the Asia-Pacific

region. The fact that India’s Republic Day Parade 2012 started with a flyover by the newest Mi-17V-5 military transport helicopters, which were given the honour of carrying the national flag and the Army, Navy and Air Force flags, was a clear evidence of India’s strong confidence in Russian aviation equipment. Building an antiaircraft and missile defence system, without which it is impossible to talk about the reliable security of any state, is very promising for the development of a military-technical dialogue with the countries in the region, particularly with India. With its vast experience in this sphere, Russia will showcase a wide range of reliable systems capable of providing assured protection for military installations, administrative and political centres, and infrastructure components in India — the Antey-2500 ADMS, Tor-M2E and Buk-M2E SAM systems,

as well as the Pantsir-S1 SPAAAGM system and Igla-S MANPADS.` Rosoboronexport Deputy Director General Viktor Komardin heading the joint Rostec and Rosoboronexport delegation noted that in cooperation with India, Rosoboronexport came from traditional sales pattern to joint development of the latest equipment. “As of now, the first preliminary design phase of the fifth generation fighter programme has been successfully completed and work on the Multi-role Transport Aircraft (MTA) is progressing on schedule. In addition, the BrahMos supersonic missile is to be integrated by the Indian side into a Russian air platform,” said Viktor Komardin. “It is with Russia that India works jointly on truly exclusive large-scale and mutually beneficial projects. The answer to it is quite simple: no country, except Russia, is willing to give India advanced

military technology.” He also said that in Bengaluru, India and Russia will continue to discuss further the Su-30MKI fighter modernisation programme, which will affect virtually all components of the aircraft. The issues relating to the implementation of offset programmes by the Russian side in broad cooperation with Indian partners, as well as the prospects for further cooperation on the offset obligations in the MTC area will also be raised. One such project is a programme proposed by Rosoboronexport, which is bidding to supply 197 reconnaissance and surveillance helicopters. The uniqueness of the Russian proposal is that owing to its performance the newest Ka-226T multirole helicopter is perfect for carrying out combat missions specified by the customer; moreover, the offset programme proposed by Russia is also very attractive for the Indian industry.

New models on show from Russian Helicopters

and a oronprom b O g in ld o hibit defence h rs, will ex he te te p ta s o c f li o e rt h T , pa r of tand 3.3). elicopters nufacture (Hall A, S ole helicopters 3 Russian H al designer and ma 1 0 2 ia d ir lob at Aero In and medium mult al leading g t models t s h the princip te g e li la b s l w it il e f n w o e t s a e a c th m c li o s e op how i-171A2 — market. Russian H pace plans to s M y d n n a a p T m 6 o n c -22 dia aeros ly the Ka rowing In nting the Russian ri g a tm s ri fa p e — se r th dia, repre roducts fo tly Russian p at visitor to Aero In r is curren to ro l . e 9 ia p 0 x re 0 a conce 2 e co ters is a galuru sin 26T with its uniqu surveillance and re n e B in y Ka-2 industr Decemnder for multirole ir Force te nces of success. In i with A n ia The light d In a ch jor New Delh g in a ma excellent reement in emble Russian competin licopters, and has g a n a d e n s he opters sig joint venture to as naissance ian Helic s a s h u s R li , b 2 ta 1 ber 20 ms to es upgraded dia. om Syste 26T in In nge is the , the ra 's y n a India's Elc cluding the Ka-2 p com eries rs in Mi-8/17 s best perion to the it e d th d f a o e helicopte v n ttracti versio bines the Another a 171A2, the latest 71A2 com ge technologies. 1 iiM e M h ium licopter. T rs with leading-ed se helicopters civil med opular he p t r the s o ecesso m 's demand fo ther contract for world dary pred d n n e a g , le ia s d it of ano in In formance tly signed ntract is expected s operate n 7 e /1 c 8 re irs M te 00 e; the co n Helicop Almost 2 n Air Forc g. Russia ia n d o In tr s e s th in rt will with rema oronexpo licopters e b h o s o -5 R V 7 d an combat Mi-1 in 2013. elicopters k helicopter. This d H e n ll ia lfi s s fu u R ac nd to be dia 2013, Hunter att le to operate day a b At Aero In e Mi-28NE Night a s n g o in ti e b ra pe case th abilities, -destroy o enemy d n -a also show s outstanding cap h rc a r ha can fly se as well as helicopte thers, and rmoured vehicles, a e w ll a in d and una night and targets. s, armoure nd low-speed air k n ta t s in aga field a the battle forces on


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Upgrading IAF’s Su-30MKI is top priority: Irkut An Irkut Corporation spokesman on the projects in hand — the top being the upgrade of the Su-30MKI Can you shed some light on the Super Sukhoi-30 programme? What are the capabilities of the IAF SU30s that will be enhanced by the upgrades? Currently, the talk on upgrading the IAF’s Su-30MKI aircraft is being held and is in the middle of the process. Russian and Indian specialists are negotiating on technical performance of the upgraded Sukhoi Super-30 aircraft. Till all the technical issues are discussed, obviously, it is premature to talk about the new capabilities of the aircraft. However, it’s clear that Su-30MKI will be equipped with advanced avionics, onboard radar with enhanced sighting range having ability to attack small targets. The fighter will be capable of using Russian and foreign-made weapons as well. All the above features will enable Su-30MKI to be the most advanced fighter of the IAF till the time Su-50 aka FGFA aircraft enter the IAF, being developed by Russia and India jointly. Can you tell us about the development of the new UAC/HAL Il-214 Multirole Transport Aircraft? A project to develop multirole transport aircraft on the basis of Il-214 has been realised by the Russian-Indian enterprise MTAL, co-founded by United Aircraft Corporation (UAC) and Hindustan Aeronautics Ltd (HAL). Irkut Corporation was involved in the initial stage of the project and UAC and HAL would be

in a better position to address all queries related to the MTA project. How about the MC-21 project and have all the snags in the aircraft been rectified? MC-21, a new generation airliner, is the major prospective project of the Russian civil aviation industry. IRKUT Corporation is the prime contractor and integrator for MC-21 airliner. MC-21 is planned to be developed as a short/ mid-range commercial airliners. MC-21 programme is fully supported by the government and funding for the project is included in the aviation industry development plan which has been approved by the Russian government in late 2012. According to the Minister of Industry and Trade Denis Manturov, about $400 million has been allocated for the realisation of MC-21 project and Sberbank – Russia’s biggest financial institution provided Irkut with an investment loan of $1 bn. MC-21 is expected to compete in the international market with A320NEO, Boeing 737MAX and Chinese Comac C919. The MC-21 project includes a host of different suppliers like US air engines manufacturer Pratt & Whitney Corp and the French company Zodiac Comp. Is there any possibility of tying up with Indian companies to source parts for it? In 2012, Irkut has signed an agree-

ment with a number of leading suppliers for MC-21. In particular, Pratt & Whitney is one of them, which provides Pure Power PW1400G engines for MC-21 with low fuel consumption by using latest geared turbofan technology. Compared to the existing aircraft, PW1400G will reduce MC-21 fuel consumption by 13 per cent. MC-21 customers can choose alternative PD-14 engine which is being developed in Russia. Its demonstration passed bench tests in 2012. The international team of creators for MC-21 includes Zodiac Aerospace Group, an agreement which was signed in 2012. Taking advantage of wider fuselage and using newest interior solutions of MC21, Irkut is planning to provide passengers with the level of comfort which is currently available only on long-haul aircraft. Realising the Su-30MKI programme Irkut Corporation and HAL gained profitable experience of cooperation in field of aviation technique manufacturing. Having Indian airlines willingness to purchase MC-21 aircraft, the mentioned experience could be required to organize production of MC-21 components by Indian manufacturers.

What are you showcasing at Aero India 2013? A honourable place in the company’s exposition (Pavilion, Stand 3.1) has been given to Su-30MKI multi-role fighters which has become a sort of “icon” of Irkut Corporation. The aircraft was developed by Sukhoi design bureau especially for the Indian Air Force and serially produced at the Irkut aviation plant. Irkut delivers fully assembled Su-30MKI and technological kits for its licensed production by HAL as well. As a tradition Su-30MKI fighters of the Indian Air Force will be presented as static and flying displays. The company’s stand will represent the model of Yak-130 combat trainer developed by the Yakovlev design bureau, a part of Irkut Corporation. Also Irkut Corporation will exhibit its latest development in the field of commercial aviation- MC-21 short/mid-range commercial airliner with a capacity of 150-212 passengers.

Mission-ready choppers from Eurocopter

The capabilities of Eurocopter’s expanded helicopter product line in meeting a full range of India military, governmental and civilian missions will be at the forefront during Aero India 2013.

A

cornerstone of Eurocopter’s static display is the AS565 MBe Panther naval helicopter, equipped with its full armament Acomplement. This proven rotorcraft is proposed for both the Indian Navy’s planned acquisition of utility helicopters and the Indian Coast Guard’s anticipated purchase of ship-based light/medium helicopters. The AS565 MB Panther is a militarised member of Eurocopter’s popular Dauphin family, and has demonstrated its abilities in India – as one of this helicopter type’s largest civilian operators is the country’s Pawan Hans Helicopters, with a significant AS365 N3 Dauphin fleet. “Eurocopter has made major investments in building up its product portfolio, which positions us to offer products that meet India’s mission requirements in bolstering its defence capabilities,” said Eurocopter President & CEO Lutz Bertling. “At the last Aero India event, we showcased the AS550 C3 Fennec, which was presented as the ideal replacement for India’s aging Cheetah and Chetak fleet. This time, we are bringing the combat-proven AS565 MBe Panther with a complete set of armament, which is in service in many military forces around the world.” The AS565 MBe is a combat and utility helicopter suitable for both shipborne and shore-based operations, and also serves as a highly capable search and rescue system for both day and night operations. Accompanying the helicopter’s display at Aero India will be a comprehensive armament suite

for use in sea and ground warfare — including an anti-submarine warfare (ASW) torpedo, ASW depth charge, gun and rocket pods, and a 0.5-in. sniper rifle. For naval missions, the Panther comes with a fully-certified 4-axis digital Automatic Flight Control System (AFCS) incorporating search and rescue modes, which enables search patterns to be flown automatically, along with automatic transitions to/from hover and automatic hover, as well as the ability to adjust the helicopter’s position from the hoist operator’s joystick. Available for customer flights at Aero India 2013 will be an AS350 B3e from Davangere Sugar — the enhanced version of the single-engine AS350 B3, with exceptional lifting capability, extended range, fast cruise speed and great endurance in hot climates and high altitudes. Featured as scale models on the Aero India 2013 exhibit stand of Eurocopter parent company EADS are the AS550 C3 Fennec, offered to fulfill India’s needs for a modern reconnaissance and surveillance

helicopter (RSH); the new EC175, which demonstrated its unrivalled performance for off-shore oil and gas missions with the no. 1 production helicopter’s first flight; and the performance-enhanced new EC130T2, which shares the technological baseline with the AS350B3e. While the AS350 B3 is one of the most popular light helicopter products in India for utility and aerial work, the EC130 T2 will be ideal for passenger transport and tourism activities. Eurocopter considers India as a key market, and has a long-established presence in the country. Its relationship with Hindustan Aeronautics Limited (HAL) during more than five decades has seen hundreds of Eurocopter helicopters built in India under license, along with the production of composite assemblies for AS550/AS350 helicopters as part of Eurocopter’s global supply chain. In 2010, the company became the first helicopter manufacturer to establish a fullfledged subsidiary with the creation of Eurocopter India.

The high-performance member of the Ecureuil family, the AS350 is a single-engine helicopter excels in hot conditions and very high altitudes, and broke records.

EADS Hall C, OD-6

The EC130 T2 is the latest version of the EC130 has an upgraded gearbox and a new Turbomeca Arriel 2D engine, providing 10 per cent more average power than the engine used in the previous EC130 B4 version.



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DRDO showcases ‘Made in India’ products DRDO Pavilion at Aero India 2013 is attracting huge attention. It centres around projections of aerospace related R & D advancement made by DRDO Labs and the coordinated efforts of various R & D Work Centres of DRDO. In all, 21 DRDO laboratories are participating and show-casing their technological might in various formats: Indoor and Outdoor Exhibition and Static and Flying Displays. DRDO-ADA Indoor Exhibitions pavilion is designed based on the system centric theme with the Technologies clustered around it. There are 14 major system centres, Technologies themes as indicated below: n Combat Aero Systems n Aircraft Systems n Avionics and UAV Systems n Aerial Delivery Systems n Surveillance Systems n Certification of Aero Systems n E W Systems n Materials n Missile Systems n Propulsion Systems n Explosive Technologies

n n n

Sensor Technologies RADAR Systems Simulator Systems

Outdoor/Static display includes the following : n LCA Naval variant 1:1 with Armament mock - ups n Rustom – 1 n NISHANT on Launch Vehicle n Missiles on Launch Vehicle n Akashdeep Aerostat

in the clouds: (Top) DRDO aerostat; (bottom left) Indigenously built Nishant UAV; (bottom right) the IAF's Light Combat Aircraft (LCA).

World looking at Samtel for world-class quality

at competitive costs

INFOTECH GETS SILVER FOR SUPERIOR PERFORMANCE

Samtel Avionics & Defence Systems' Executive Director Puneet Kaura on his company’s JV with HAL and growth plans for next 10 years Samtel's JV with HAL is six years old now. How do you see the JV's performance and results in these years and what are the targets for the next five years? After a long journey of development, flight testing and qualification, one of the JV's key products — Multifunction Display (MFD) for Su-30 MKI has been qualified and is now in production. Thus, the aim with which the Samtel-HAL JV was set-up — that of addressing the avionics requirements of HAL, especially cockpit displays of all kinds — is now closer to realisation. The goal of the Samtel-HAL JV is to indigenise critical primary displays technology in India, and create a Centre of Excellence to produce indigenous displays for all HAL existing and upcoming star platforms and upgrades. It is a matter of great pride for India that now this technology is available here, and it opens up avenues for replicating it on other cockpit displays for HAL’s star platforms. SamtelHAL JV is looking forward to move ahead on our journey towards induction of indigenous cockpit displays on all Indian platforms. Your joint venture with Thales too is over four years. How has this tie-up help Samtel to consolidate its position in the Avionics market in India? Our JV with Thales is taking shape now with Samtel discussing various opportunities with them in Opto-electronics (Infra Red Search & Track), BTP (Builtto-Print)/BTS (Built-to-Specs) segments, as well as offsets arising out of Thales getting the Mirage 2000 upgrade contract, etc. We are moving at a very fast pace to crystallise some of the discussions that we are having with Thales to begin the work on ground. The JV was set up to locally develop, customise, manufacture, sell and maintain indigenous Helmet-Mounted Sight and Display Systems, optronics and modern Avionics Systems for the Indian and export defence markets. Systems aimed at the Indian Forces’

helicopters and fighters represent the main objective of the JV company, and the activity will quickly expand to include other products. Based in Delhi, it will provide the basis for all future aerospace development for Thales in India. The JV will help us bring critical technology to India and will contribute towards the modernisation objective of the Indian government for its defence forces. How much does Samtel spend on R&D to hold on to its technology edge? What are your R&D plans in terms of funds and projects for the future? Being in the high technology equipment industry, we spend a significant percentage on R&D. Our strong capability in this domain has helped us to always remain the first movers in the domestic market with cus-

advanced R&D: The Multifunction Display (MFD) 55 for Su-30 MKI is now in production.

tomised, innovative and competitive new products and retain our leadership position in the market. Going forward, as we expand our capabilities and our product range gets more complex, our focus on R&D will be even more intensified to maintain our high standards of delivery. How has your tie-up with Honeywell for cockpits performed? What are its prospects? Samtel and Honeywell came together in 2007 to manufacture equipment for their general aviation range in the US. Since then, in the last five+ years, the

relationship has grown to a close partnership, and lately Samtel has become an approved supplier and the sole source for Honeywell worldwide for this equipment. Samtel and Honeywell have signed a long term contract for supply of this component to Honeywell. The production has already begun at Samtel Avionics’ production facility at Greater Noida, and successful FAI of this product has also been completed. This is the first Samtel product to get TSO (Technical Standard Order) certification for commercial aircraft. TSO is a minimum performance standard for specified materials, parts, and appliances used on civil aircraft; and receiving a TSO authorization is both design and production approval. Currently, Samtel is in discussion with Honeywell for multiple programmes, and expects to get more business from them very soon. What is your company's overall growth plans for the next 10 years? Today, we are happy to be an integral part of the Indian defence industry. As recent reports suggest, the defence budgets worldwide are being slashed and the global aerospace and defence players are rethinking their strategies. Also, the current market scenario points at international companies seeking much more cost-competitive supply partners to accommodate their shrinking budgets. The eyes of the entire world are now on countries like India, and partners like Samtel which offer world-class quality at competitive costs. Also, with big ticket defence purchases by India on the cards, the global firms are looking at competent players like Samtel Avionics to fulfill their offset obligations. The new Defence Production Policy is also intended to support Indian Industry to build their in-house capabilities in order to meet the future defence requirements. In order to absorb these offset requirements, we are definitely one of the strongest contenders. As for our global plans, keeping in mind the fact that most of our major partnerships are with US and UK market leaders, there is immense opportunity in the overseas market. US and UK are the biggest markets for aerospace industry, and we are continuing to expand our footprint in these markets. We are also in advanced stages of discussing JVs/ MoUs/ Contracts with leading players in aerospace & defence industry worldwide.

INFOTECH Enterprises has announced that it received a Silver Performance Excellence Award for 2012 from the Boeing Company. This is an annual award that is presented to suppliers who have achieved superior performance. Infotech Enterprises maintained a Silver performance rating for each month of the 12-month performance period. This is the third consecutive year in which Infotech has been recognised with this award. “It is a proud moment for Infotech Enterprises. The performance excellence award from Boeing reiterates our leadership in delivering end-to-end global aerospace engineering solutions. It reflects our organization-wide commitment to delight our customers through continuous improvement efforts in areas of quality and productivity,” said Krishna Bodanapu, President and COO, Infotech Enterprises. Commenting on the occasion, Rajendra Velagapudi, Senior Vice President and Head — Aerospace Business Unit, Infotech Enterprises said, “Our customers in the aerospace manufacturing industry look for partners with proven expertise and a track record of delivering robust and optimized engineering solutions. We are glad that Boeing has acknowledged our consistent efforts across the product life cycle.” Infotech Enterprises partners with Boeing in providing specialised engineering and design automation solutions across commercial and defence programmes including the 747-8 (freighter and passenger), 787-9, 767, 747, F-18 and F-15. Infotech was also awarded the prestigious Supplier of the Year for 2010.



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Navy too to fly high A

way from the much talked about big-ticket deals of the Indian Air Force (IAF) which had brought global aviation companies flocking to India, the rapidlyexpanding aviation wing of the Indian Navy is where the focus is. Indian Navy’s blue-water aspirations coupled with the mandate to tackle piracy and to secure the 7,516-km long coastline, has resulted in New Delhi enhancing its spend on naval aviation. Approximately $10 billion worth of naval aviation deals are in the pipeline that will fructify over the next 3 to 5 years. With rising budgetary allocations being made by the government, indications are that this could be the focus area of the future for aircraft and helicopter manufacturers. This fiscal (ending March 31, 2013), the Indian Defence Budget earmarked an outlay of `5303.29 crore for ‘Aircrafts and Aero engines’, up from `2974 crore in the previous year, a 78 per cent increase. The Navy is looking at choppers in multi-role capability, a utility chopper to replace the ageing Chetaks and a newer set of reconnaissance planes to replace its Soviet-era fleet besides ramping up its fleet of on-deck fighters for the aircraft carriers. Newer choppers and planes are needed to trawl the airspace between the Persian Gulf to India’s west and the Straits of Malacca to the east. Indian Naval Chief Admiral Nirmal Kumar Verma (retired August 31, 2012) had pencilled out India’s area of interest, saying “it is from the Malacca Straits to the Persian Gulf in the west, and to the Cape of Good Hope in the south”. All this needs immense air power especially with increased possibility of amphibious operations and the need for real time 24x7 reconnaissance. Following the November 26, 2008 Mumbai attacks, the Navy was mandated to be overall in charge for security at sea and the anti-piracy operations were added to its task in 2008. FROM THE WATER TO THE SKIES: $ 10 billion worth of naval aviation deals are in the pipeline: (Above) The MiG-29K, and (below) the NH-90 chopper

The big purchases The biggest will be the plan to have 120 multi-role choppers. This is touted as the world’s biggest single tender for helicopters valued at nearly `35,000 crore (approximately $ 6.4 Billion). The Navy issued a global Request For Information (RFI) in this regard some time ago.

lass and be twin-engined. The Indian Navy is already holding a competition for procuring 16 multirole helicopters in which European NH-90 and American Sikorsky S-70 Bravo are in the race. The process has not moved forward since allegations have been levelled. At present, the closest the Navy has to this class of

avionics”. The RFP was issued to top global aviation majors — ranging from Boeing, Bell and Sikorsky to Kamov, Eurocopter and AgustaWestland. This is planned for induction from 2016 onwards. New Delhi aims to induct 56 choppers, three simulators, 28 spare engines and associated equipment within

The Navy is looking at choppers in multi-role capability, a utility chopper to replace the ageing Chetaks and a newer set of reconnaissance planes to replace its Soviet-era fleet besides ramping up its fleet of on-deck fighters for the aircraft carriers. Newer choppers and planes are needed to trawl the airspace between the Persian Gulf to India’s west and the Straits of Malacca to the east.

European companies Eurocopter and Agusta Westland along with the American Sikorsky and Lockheed Martin and the Russian Kamov, could be among the companies eying this deal to expand their India-footprint. Under Indian procurement rules framed by the Ministry of Defence, once the RFI is done, a Request For Proposal (RFP) is issued. The multi-role choppers are for carrying out anti-submarine warfare, special forces’ operations, amphibious assaults and anti-surface combatant warfare. This will be in the 9 to 12.5-tonne

multi-role choppers is the fleet of 10 Sea King helicopters procured in batches from Augusta Westland since 1970. The other rotary wing tender is a $ one billion tender to procure 56 naval helicopters: these will replace the existing fleet of Chetaks (an India produced variant of the 1960s design of French Alouettes and Lama SA-315). The aim, as per the RFP issued in August 2012, is to look for a “modern airframe design, proven fuel-efficient engines and fullyintegrated advanced

eight years of the inking of the contract. These will be twin-engine helicopters, with a 4,500-kg maximum weight and capable of operating from warships and will be equipped with 70mm rocket launchers, 12.7 mm guns as well as lightweight torpedoes and depth charges, will have night capability radars. The ageing Chetak has only one engine and a limited flying range. Naval fighters are the other area which will grow. India so far has one aircraft carrier — the INS Viraat — which flies the short vertical take and landing Sea Harrier, a plane which is not produced any more. India is looking at a three-carrier Navy and for this a new set of on-deck fighters are needed. The MiG 29-K fighters for the sea-borne aircraft carrier 44,550 tonne Admiral Gorshkov or the INS Vikramaditya, have been finalised while deliveries are expected to be completed by 2015. The ship will join the fleet at the end of 2013. A total of 45 MiG-29-K have been ordered. The first lot of 16 got at cost of $ 740 million from Russia under a 2004 contract have been delivered while the first four of the second lot of 29 ordered in March 2010, under a new $ 1.5-billion contract have arrived. The remaining 25 will arrive in phases. The MiG-29K is a naval variant of the MiG-29 land-based fighter. It has folding wings, an arrester tail-hook, strengthened airframe and multirole capability. It can be armed with a wide variety of airto-air and air-to-surface weaponry. The on-deck fighters for the underdevelopment 40,000 tonne Indigenous Aircraft Carrier (IAC) are yet to be finalised though the naval-variant of the light combat aircraft (LCA) is being touted as one of the contenders. Though this will mean the order will go to defence public sector undertaking, Hindustan Aeronautics Limited (HAL), the engine of the LCA, the GE 414, is be from US major General Electric while other avionics and weaponry will be also from foreign vendors. Defence Minister A K Antony told Parliament, on May 16, 2007 that the induction of a third aircraft carrier is envisioned by 2017. Though it may be delayed, it will mean a fresh lot of fighters. The reconnaissance planes Indo-Soviet era fleet of the IL-38 Sea Dragons and the Tupolev 142s, will slowly be replaced by a US induction this year. On December 19, 2012 the first Boeing P8-I, a multi-mission plane, was handed over in the US. By June, three will be stationed in India. A total of eight had been contracted in 2009 at a cost $ 2.1 billion. It is a variant of the US Navy’s P-8A Poseidon based on a Boeing 737. New Delhi is looking at 30 planes of this class as it needs to monitor the vital Sea Lanes of Communication (SLoCs) which pass close to India. The P8-Is will be equipped with anti-ship Harpoon missiles, Mark 82 depth bombs and Mark 54 anti-submarine torpedoes, making them a fairly potent platform. — Geopolitics Bureau


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10 Tata companies at Aero india SHOW T en Tata companies—Tata Advanced Materials Limited, Tata Advanced Systems Limited, Tata Elxsi Limited, Tata Industrial Services Limited, Tata Steel (Speciality Steels), Tata Technologies, TAL Manufacturing Solutions Limited, Titan Industries Limited (Precision Engineering Division) — Tata Consultancy Services and Tata Power (Strategic Electronics Division) are exhibiting their expertise and offerings at Aero India 2013. The Tata Group offers solutions to the global supply chain of leading Aerospace and Defence OEMs and suppliers in the areas of Engineering to Production, Design to Manufacture, New Design to Manufacture, Design Modification to Manufacturing, Build to Print and Build to Specifications. The Group has cemented major relationships with several global aircraft manufacturers and OEMs. Additionally, the Tata companies are also individually accredited with key aerospace certifications.

Tata Advanced Systems manufac-

tures Aerorecord of engagstructures for ing with aeroOEMs such as space manufacLockheed Marturers and their tin and Sikorsupply chains sky. It is also in for product dethe process of velopment ensetting up mangineering in the ufacturing faarea of aerocilities for Misstructures. siles, RADARs, • Titan IndusElectro-optics, tries is into and Unmanned private partnership: Assembly facility at Tata precision engiAerial Systems. Advanced System's factory neering of critical Tata Consultancy components for Services provides Consulting, Engithe aero space industry. neering and Engineering IT services • Tata Power Strategic Electronics to Global A&D majors across the Division has been a leading privateaircraft life cycle through its unique sector player in the indigenous DeGlobal Network Delivery Model in velopment, Supply and Lifecycle areas such as Aero Structures, Aero support of mission-critical Strategic Systems, Aero Engines, Avionics, Defence Systems. The Division has Manufacturing Engineering, Service now emerged as a prime contractor Lifecycle Management, Sourcing Soto MoD for Defence Production when lutions and Technical Publications. it secured Orders for Pinaka MBRL To further bolster TCS's offerings to and Akash Launchers, Army EW the Global A&D organisations, TCS Systems, Air Defence Systems and offers High Performance Computing Modernisation of Airfield Infrastrucinfrastructure for Aero dynamics and ture. simulation studies. • NOVA Integrated Systems Limited is Tata Technologies has a proven track a key Tata Group vehicle in the de-

sign development and manufacture of Missile, RADAR, UAVs and Electro-optic systems. • Tata Industrial Services is an AS 9100C certified company providing programme management, supply chain management, quality assurance services including supply of products for Aerospace and Defence industry. • Tata Elxsi provides mission critical reliable innovations in the field of Aerospace and Defence, for innovative design and engineering solutions across product life cycles. • Tata Steel (Speciality Steels) provides high-integrity steels to major commercial and military aerospace programmes around the world using bespoke supply chain solutions. • Tata Advanced Materials is in design and manufacturing of composite components, parts, and sub-assemblies for defence, aerospace and industrial applications. The Tata Group has historically been associated with the aerospace industry and has taken several significant initiatives, in the commercial, military and business jet platforms to establish a meaningful presence.

Cautious approach to business These are promising times for doing business in the Indian defence and aerospace sector but given the sector’s complex regulatory framework, it would be well worth the effort for foreign OEMs to adopt a cautious approach.

I

ndia has emerged as one of the most promising market for the aerospace and defence industry. At present, around 70 per cent of the defence requirements of the nation are being met through imports. However, the Government of India has set a challenging target for itself by declaring that at least 70 per cent of the defence needs will be met through indigenous sourcing in the next five years. The Government of India’s target of sourcing indigenously has resulted in opportunities for foreign investors to team up with Indian partners and take advantage of what seems to be a promising period for the Indian defence industry. Evidence of this is found in the fact that the Department of Industrial Policy & Promotion has, so far, issued approximately 178 Letters of Intent/Industrial Licences, with 10 industrial licenses issued in the last year alone to companies for manufacturing a wide range of defence equipment on the recommendation of the Ministry of Defence (MoD). Further, 17 joint ventures have been formed so far, between Indian private companies and foreign companies. It is estimated that deals worth approximately $24.60 billion have been signed by the MoD with global integrators in the last two years and deals worth approximately $42 billion are in their final stages. The emerging opportunities in the aerospace and defence sector coupled

with large equipment, modernisation programmes in the pipeline and a projection of an overall spend of over $100 billion over the next 10 years, has attracted interest from foreign original equipment manufacturers (OEMs) that are now competing to enter Indian defence and aerospace market. Although India is one of the largest importers and users of defence products, the government has adopted a highly regulated regime for Foreign Direct Investment (FDI) inflows in this sector. As per the extant FDI Policy of the Government of India, FDI in the defence sector is capped at 26 per cent and requires the prior approval of the Government of India. FDI in the defence and the aerospace sector is also subject to an industrial licence under the Industrial (Development and Regulation) Act, 1951. A preliminary overview of the current regime reveals that the FDI limitations in an Indian defence industrial venture and the terms and conditions attached therewith, acts as a deterrent for OEMs from playing a more active role in India. In other words, it appears that the government expects the foreign investor to commit and invest its resources to a joint venture in which the foreign investor has little control over the board, strict capacity/product constraints and is forced to compete with public sector enterprises that arguably benefit from favourable conditions.

PITCHING FOR COOPERATION: (L-R) From our files — Guy Griffiths, Group MD- International, BAE Systems,

Anand Mahindra, CEO, Mahindra & Mahindra, Dean McCumiskey, President & CEO, BAE Systems India & M&M's Ashwin Shastri at BAE Systems stand at DefExpo 2012

With the announcement of the revised defence offset policy issued by the MoD, the Government of India presents greater opportunities for foreign as well as domestic players. The revised offset policy applies to all capital acquisitions by the MoD, categorised as 'Buy (Global)' or 'Buy and Make with Transfer of Technology', where the estimated cost of the acquisition proposal is `3 billion or more. While in the case of 'Buy Global' a uniform offset of 30 per cent of the estimated cost of the acquisition is the minimum required value of the offset, in 'Buy and Make with Transfer of Technology' acquisitions, 30 per cent of the foreign exchange component will be the minimum value of the offset. Unlike its predecessor, the revised offset policy has clarified that for “Buy Global” category procurements, Indian companies or their joint ventures will be exempt from offset obligations if indigenous content in the product is 50 per cent or more in value. Defence procurement in India is complex and highly regulated. The prospects of satisfying the plethora of legal and procedural requirements can seem like a daunting task to any foreign OEM. As a result, several foreign OEMs reach out to agents/consultants (sometimes referred to as ‘middlemen’) with local expertise and knowledge to assist with the procurement process. However, the role of agents and ‘middlemen’ in defence deals, more particularly the legality of their methods, has always been a contentious issue, and has triggered considerable debate. The instructions issued on agents by the MoD, among others, requires: (a) compulsory registration of agents with the MoD; (b) a foreign supplier to furnish an undertaking to the MoD that only the agreed fee or commission would be payable to the agent for rendering specifically defined obligations in the contract; and (c) complete disclosure about the professional background of the concerned agent along with copies of all agreements relating to appointment of the agent. Such requirements stipulated by the MOD have been considered to be harsh, onerous and intrusive and this is evident from the fact that till date not a single agent has registered itself with the MoD. Nonetheless, foreign firms engaging consultants, agents or third party intermediaries should carry out extensive due diligence on their background and observe the agency restrictions stipulated by the

ARMED AND READY n Foreign Original Equipment manu-

facturers (OEMs) are competing to enter the Indian defence and aerospace market. n An overall spend of over $100 billion over the next 10 years in the aerospace and defence sector coupled with large equipment, modernisation programmes is in the pipeline. n Deals worth approximately $24.60 billion have been signed by the MoD with global integrators in the last two years. n Defence deals worth approximately $42 billion are in their final stages. n A total of 17 joint ventures have been formed between Indian private companies and foreign companies. n Department of Industrial Policy & Promotion has issued 178 Letters of Intent/Industrial Licences, with 10 industrial licences issued in the last year alone to companies for manufacturing a wide range of defence equipment on the recommendation of the Ministry of Defence (MoD). MoD. Further, as per the existing legal framework, it is imperative to establish the interplay between the agent and its role in the procurement of a contract. The test is whether the agent, in its interactions with the procuring authority, has in any way “interceded, facilitated, or recommended” the awarding of a contract. It is apparent from the recent defencerelated spending and policy revisions by the Government of India that these are promising times for doing business in the Indian defence and aerospace sector. Couple that with a large skilled workforce and local partners with significant expertise and experience, and there is ample justification for the recent spurt in FDI in the sector. However, a cautious and wellstructured approach along with experienced Indian partners and advisors can yield significant results in this burgeoning sector. — Shivpriya Nanda

(The writer is Partner with J Sagar Associates and the views expressed by her in the article are personal.)


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Reaching for the skies AgustaWestland is set to make a huge impact, says Agusta Westland CEO, Bruno Spagnolini, in the Indian defence industry in the wake of the order to supply 12 AW101s to transport VIPs and the new venture called Indian Rotorcraft. What are the capabilities that you will be showcasing during Aero India 2013? We will be showcasing our extensive range of rotorcraft including the AW109 LUH, AW139, AW101 and NH90 which can fulfill both military and commercial requirements in India. We will also be highlighting our extensive training and support capabilities. Finally we are also attending Aero India to discuss cooperation with Indian aerospace and defence companies to develop our relationships with Indian industry. You recently delivered the first three of the 12 three-engined AW 101 helicopters, when are the rest expected to join the Air Force Fleet? Will these also be used for ferrying VIPs? The first three have recently been delivered to India and the remaining nine aircraft will be delivered this year. The aircraft will be used for VIP and government transport, replacing existing Mil helicopters. What are the features incorporated in this helicopter that set it apart from choppers in its class? Three key features set the AW101 apart: they are its safety, cabin space and performance. The AW101 has built into its design high levels of redundancy for increased safety, its cabin is the largest in its class and the most comfortable due to the low noise and vibration levels and due to its three engine design has excellent performance, even in hot and

high conditions that can be found in India. India is looking forward to indigenise hi-technology components of defence production, especially helicopters. What does AW have to offer to India in this regard? AgustaWestland is constantly looking for partners and suppliers to assist it in meeting its offset obligations in India and is using Aero India to meet many potential partners. We are keen to develop long term relationships with companies who can become part of AgustaWestland's worldwide supply chain. The NH-90 has had some teething troubles in the past during the contracts for other countries. How have the problems in the aircraft been worked out? The difficulties were mainly due to the success of the programme, 529 aircraft in many different variants have been sold to 14 nations. The concurrent development of all these different variants caused delays but now the programme is progressing well with around 120 aircraft now in service. AgustaWestland is said to be participating in the Indian Navy's NUH programme. What is the status of

negotiations? We are currently responding to the Request For Proposal (RFP). The requirement is for a twinengine helicopter and we will offer the maritime helicopter from our range which best suits the Navy's requirements. What are the other contracts that you are looking forward to? The Indian Navy and Coast Guard have several requirements for helicopters which we are pursuing with various helicopters from our product range. With the widest range of maritime helicopters of any manufacture, ranging from 3-tonnes right up to 16-tonnes AgustaWestland has products that can meet all of the Navy's and Coast Guard's requirements. When will we see the flight of the Indian made AW119Ke light helicopter that you plan to make at Indian Rotorcraft — the joint venture with Tata? Indian Rotorcraft is scheduled to start assembling AW119 helicopters by early 2014 from the new facility being built in Hyderabad. The facility is being built on a 10-acre site adjacent to the Hyderabad Rajiv Gandhi International Airport and will comprises an 8,000 sq.m. building incorporating a main assembly building,

flight hangar, office accommodation and outside helicopter landing pads. The facility will be capable of producing up to 30 helicopters per year and will be able to accommodate a variety of helicopter types, including the AW101. How will Indian Rotorcraft contribute to the global supply chain of AW? Indian Rotorcraft will supply AW119 helicopters not just for the Indian market but for the worldwide market. It is also hoped that Indian Rotorcraft will expand its capabilities in the future undertaking manufacturing, customer support and training activities. How are you planning to contribute to the training needs of the Indian chopper market? Currently we undertake most of our customer training at our training academies in Italy, UK and USA where we have the complete range of training aids, including full flight simulators. We also perform training on customer's aircraft in India, but as the fleet of AgustaWestland commercial helicopters grows in India we will look to establish local training services. Recently, we have opened a training academy in Kuala Lumpur as part of our strategy to deliver training closer to where our customers operate.

PITCHING FOR COOPERATION: The AW101 will make its presence felt at Aero India.

Empire launches business aviation services

E

mpire Aviation (EA), a new private aviation specialist and a sister company of Dubai-based Empire Aviation Group announced the launch of its comprehensive range of business aviation services for private aircraft owners in India, at Aero India 2013. The one-stop shop approach will cover aircraft sales, aircraft management, flight operations and charter. Empire Aviation took its first business jet under management in India in December 2012. The 2012 model Bombardier Challenger 300 is based at HAL Airport in Bengaluru, where EA opened its first office in India recently and where there is already a team of six aviation specialists on the ground. EA is currently in negotiations for a further three managed aircraft and plans to have five aircraft under management in India by mid 2013, with the team doubling in size over the same period. Paras Dhamecha, Executive Director at Empire Aviation, commented: “The Indian economy is proving robust and with more Indian companies globalising their operations, we see a healthy future demand for our services,

where we can fill the gap for a professional management company, which can simplify the ownership process and experience for owners. This will also help further stimulate the market for business aviation.”

aircraft importation and ownership are slowing market development, and airports were becoming busier and running close to capacity. However, the company was very optimistic about its prospects in the growing market. “We see part of our initial role as helping company and individual owners and aircraft operators in India understand the benefits of working with independent and experienced professional aircraft managers,” commented Steve Hartley, Executive Director at Empire Aviation. “Most private aircraft in India are company owned and managed by an inhouse operations team, AIDING BUSINESS AVIATION FLYERS: Empire Aviation Directors which is not always Steve Hartley and Paras Dhamecha. very cost effective. EmThere were still some challenges pire Aviation takes an asset managefacing the development of private aviament approach to aircraft ownership tion in India. According to Empire Aviand management, which starts with ation, the current tough regulations on understanding the owner’s needs, and

building a business model around this, ensuring access to all the benefits of the aircraft whilst protecting its value through professional operation, management and maintenance to manufacturers’ standards.” Initially established in Bengaluru, Empire Aviation plans to extend its services to Indian aircraft owners through a network, including additional offices in north and central India. “We have made good progress in rapidly establishing EA in India,” concluded Paras Dhamecha. “The initial response from owners and operators has been very encouraging and we are now moving on to the next phase which is to focus on private operators who require the full management spectrum including induction of their aircraft in India.” Formed in 2007, Dubai-based Empire Aviation Group, a sister company of Empire Aviation, already operates the largest fleet of business jets in the Middle East with over 20 aircraft under management and has brought its extensive experience and capabilities to India through Empire Aviation.


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Stepping into a new age Sikorsky’s Executive Vice President, India and South Asia, Air Vice-Marshal (Retd) AJS Walia, is enthusiastic about showcasing his company’s products at Aero India 2013 and shares his opinion on the joint venture with Tata, Transfer of Technology, the Defence Procurement Policy and other related issues. Excerpts: What are the capabilities that you will be showcasing during Aero India 2013? Sikorsky will focus on highlighting all the military and commercial solutions that we have in our portfolio including the leading technologies that we are currently developing for the helicopter industry. The Foreign Investment promotion Board (FIPB) has given clearance for the Tata-Sikorsky Joint Venture (JV) Tara Aerospace to undertake ‘additional activities’. What are the additional activities that the joint venture will explore in terms of development, engineering and manufacturing in India? In November 2012, the FIPB has given clearance for Tara to undertake additional activities related to design, development, engineering, manufacturing and testing of fixed and rotary-wing military aircraft. As we have been granted the defence licence by the Government of India, we intend to enhance the scope of work of the JV and move ahead with the manufacture of more content for the aerospace industry in a phased and timed manner. How is the partnership with Tata to make helicopter cabins and aircraft components coming along? Sikorsky has two facilities in Hyderabad, in partnership with Tata Group. One is Tata Advanced Systems Limited (TASL) for manufacturing S-92 helicopter cabins and the other is Tara, a JV with Tata Group for manufacturing over 4,000

sis on self-reliance and on the role of private sector in the development of aerospace industry in India. This policy itself lays the foundation for the development of the aerospace industry in India. Assisting the Government’s goal of self-reliance is the Defence Offset Policy whereby Original Equipment Manufacturers (OEM) have to plough back 30-50 per cent of the value of the contract into India. I feel the approach of these policies is most comprehensive and in the right direction. However having said that, there are certain challenges which OEMs have to face while investing time, material and money in India. The process of procurement should be made accountable to the timeline set out by the DPP. More often than not, it is seen that there are huge delays in the process. These delays are counterproductive to both OEMs and the Government. Also such delays impact the overall goal of self-reliance as it would set the industry back by several years. How are the negotiations for the Multi-Role Helicopter (MRH) helicopter programme of the Indian Navy coming along? The commercial envelopes have not been opened yet for the MRH programme. A decision from the Government of India

What do you have to offer to India as far as the requirements of police forces are concerned? Sikorsky has a variety of helicopters to offer. The Sikorsky S-70i, a variant of the Blackhawk made exclusively for the international market could be used by the police forces in India. Additionally we also have the S-92 and S-76D, both being modern and multi-role capable helicopters. Tell us about Sikorsky’s research and development (R&D) ventures into new chopper designs and technology. How much do you

components which can be used for both fixed-wing and rotary-wing aircraft. Both these facilities are moving as per the road map laid down and are an outstanding reflection of Sikorsky ― Tata group relationship. In fact I would say they highlight Indo–US joint cooperation in aerospace engineering. The first made in India S-92 cabin was delivered to Sikorsky in October 2011, which has since been integrated with other components. India has had reservations in the past with regard to Transfer of Technology (ToT) from American companies. What are your views on ToT and industrial cooperation opportunities? Sikorsky does see opportunities for industrial cooperation in India. Our partnership with the Tata group is an ideal reflection of the industrial cooperation. Sikorsky would be happy to take the discussion forward on ToT, industrial partnership with interested companies including Defence Public Sector Undertakings (DPSU) to augment and enhance their aerospace manufacturing capabilities. What is your view on the Indian Defence Procurement Policy (DPP)? What can be done to make it better? Government of India’s DPP lays empha-

is awaited. Some detractors allege that the S70B for the MRH programme is an old design. What do you have to say to them? Sikorsky as a policy does not talk on issues raised by competitors or detractors. We know our product and the S70B is a proven modern and battle-hardened naval helicopter.

How are you planning to contribute to the training needs of the Indian chopper market? As we continue to grow, we will certainly explore the option to invest in training infrastructure in India. Sikorsky believes in a being a Global company — Globally spread local company.

need for speed: The Sikorsky X2 technology demonstrator.

think India can contribute to the effort? Sikorsky has always led innovations in the helicopter industry. We are investing in futuristic requirements like optionallypiloted helicopter with one pilot or none at all, the X2 technology and more. We strongly feel that India, given its amazing pool of talent, could also add to this effort.

reaching new heights: The Sikorsky S-92 civil helicopter.

growth of the helicopter industry is very good and stable and India would certainly add to the overall global growth.

Tell us about how Sikorsky plans to combat the decline in demand for military choppers, especially in the West. I am not sure if there is any decline in demand for military helicopters in the west. For Sikorsky, our order book is complete for many years and we have a huge backlog of orders to fulfill. Sikorsky is projecting double-digit growth in 2014-16. How much of that will be military and how much of it will be generated in India? All I can say at this point is that the

SEMINARS AND PRESS CONFERENCES AT AERO INDIA February 7, 2013 Air Force Station, Yelahanka, Bengaluru 10:00-11:00

Hindustan Aeronautics Limited (HAL) Press Conference

11:00-14:00

Air Chief Press Conference

11:00-12:00

Lockheed Martin Press Conference

12:00-13:00

Boeing Press Conference

13:30-14:30

Sikorsky Aircraft Corporation

14:30-17:00

Government of Karnataka Press Conference

9:30-10:00

International Seminar on Indian Aerospace Industry

10:00-11:00

Inaugural Session of International Seminar on Indian Aerospace Industry

11:30-13:00

Aerospace Industry: Opportunities for Indian Industry across the segment of large, medium and small enterprises

14:00-15:45

Integrating Indian Offset Partner in Global Supply Chain

Editor-in-Chief

K SRINIVASAN Editor

PRAKASH NANDA Managing Editor

TIRTHANKAR GHOSH Consulting Editor

SAURAV JHA Correspondents

dominic Biswas, trishit rai Chief Visualiser

AJAY NEGI Designers

mohit kansal, MODASSAR NEHAL, NAGENDRA DUBEY Design Consultant

ARTWORKS Photo Editor

H C TIWARI Staff Photographer

HEMANT RAWAT Director (Corporate Affairs)

RAJIV SINGH

Director (Marketing)

RAKESH GERA

Conceptualised and designed by Newsline Publications Pvt. Ltd., from D-11 Basement, Nizamuddin (East), New Delhi -110 013, Tel: +91-11-41033381-82 for newseye media Pvt. Ltd. All information in GEOPOLITICS is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan, 4C Pocket-IV, Mayur Vihar, Phase-I, Delhi-91 and printed by him at Nutech Photolithographers, B-240, Okhla Industrial Area, Phase-I, New Delhi-110020. Readers are welcome to send their feedback at geopolitics@newsline.in


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NUGGETS n Lockheed Martin will showcase its world class technologies, systems and products for

the Aerospace market at Aero India. We are excited to be part of Aero India 2013 and will look forward to meeting several potential customers, suppliers, and industry partners in this growing Aerospace and defence market. Lockheed Martin is honoured to provide the C130J Super Hercules for IAF Special Ops. The C130J is the most versatile and successful air mobility aircraft in the world. We feel confident that LM and the C130J will satisfy evolving requirements for the IAF as well as other defence services in India. n Gulfstream aircraft have earned widespread recognition as the definitive choice

for special missions. Today, more Gulfstream aircraft perform government and military service than any other large-cabin business jet aircraft in the world. More than 30 countries worldwide operate Gulfstreams, including 23 nations that use Gulfstream aircraft to transport their heads-of-state. n FLIR Company, 'the' original thermal imaging company is here and wants to be a long

term partner to the Indian Military and Para Military Forces in helping do their missions better. FLIR - "Use Infrared Everywhere to Save Lives". n Honeywell has been selected to provide its Primus Epic 2 integrated avionics system for

Embraer SA’s second-generation E-Jets, which will enter service in 2018. The decision is another important milestone in the programme. Earlier this year, Embraer selected Pratt & Whitney as the engine supplier. “Honeywell has been a valued partner of Embraer for many years, so it is with great confidence that we extend our relationship for this important programme,” said Paulo Cesar Siva, President and CEO of Embraer Commercial Aviation. “We believe that the evolution of the Honeywell Primus Epic, including large landscape displays, will provide flexibility for continuous innovation in the (Continued on page 29)

pomp and show and


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NUGGETS (Continued from page 28)

flight deck, while offering a mature system and a smooth transition for pilots between the current and future generation of E-Jets.” The Honeywell Primus Epic 2 integrated avionics system on the second generation of E-Jets will be an improvement on the existing Primus Epic system, which will assure a high degree of pilot commonality. The five 8x10inch displays will be replaced by four 13x10-inch large landscape displays with advanced graphics capabilities. Honeywell’s Next Generation Flight Management System (NGFMS), already in development, will provide enhanced flight planning, navigation and aircraft performance capabilities.

n Arun Mishra, Director General of Civil Aviation handed over the DGCA Licensing certificate for HAL Ozar Airport, Nashik, to Dr R K Tyagi, Chairman, HAL, at a function held at Aero India 2013 on February 6, 2013. This makes HAL Ozar Aerodrome the first aerodrome which undertakes both military and civil flights under the

a lot of smoke

show of shows: The dignitaries watching the Aerobatics; Marshal of the Air Force Arjan Singh with Air Chief N A K Browne; US Ambassador Nancy Powell in the Lockheed Martin Stall; Antony inside a cockpit; Geoff Hoon of AgustaWestland; Oron Orial of Rafael; Bjorn Bengtsson of SAAB; HAL Chairman R K Tyagi; Inderjit Sial and Stephen Greene of Textron Systems, Chinese delegates; Antony with BrahMos Chief S. Pillai; R K Mathur; V K Saraswat; Arun Mishra; Alexander Fomin; Viktor Komardin

Defence Category in India to be licensed as per ICAO standards n HAL signed a Technology Co-operation Initiative with Indian Institute of Technology Madras (IIT Madras), for establishing a Centre for Aerospace Transmission Systems (CATS) at HAL Stall on February 6, 2013. The initiative was signed between Dr Vijay Kumara, General Manager ( RWRDC) and Dr M S Shanmugam of IIT Madras. The initiative aims to undertake joint research in the field of transmission system for the helicopter and engine programmes of HAL and to evolve required software and design solutions for different types of gears, bearings, lubrication system, vibration monitoring system and production technologies. Speaking on the occasion, P Soundara Rajan, Managing Director (Helicopter Complex) said that desiging helicopters was critical technology and it was high time India possessed the knowledge on gearboxes and transmission systems. “This is our first step towards defence preparedness to have our own knowledge base,” he said. Prof Shanmugam of IIT Madras marked the signing of initiative as an important milestone for HAL and IIT Madras. Dr R K Tyagi, Chairman, HAL, lauded the efforts of HAL, Helicopter Complex and IIT Madras for the initiative. n The HAL Info DNA Centre, 'Amrit' was inaugurated by Defence Minister A K Antony. Amrit stands for Analytics on Measures for result improvement and transformation. “The centre with state-of-theart infrastructure will function as the nodal hub for enabling e-governance and Strategic Business Applications across HAL,” said Dr R. K. Tyagi, Chairman, HAL. The Centre will be maintained by HAL's own security, helpdesk and IT managers who manage the entire DC services 24 X 7 and 365 days a year. Built on highest security standards governed by ISO 270001 norms, the Data Centre will ensure 99.74 per cent uptime of all the systems like servers, networks, power, cooling and physical security.


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h a company wit se c a p s ro e a is a leading ross five continents. Da n o ti ia v A lt e u ac Dassa 0 countries le fighter jet as well as th 7 r e v o in e as as e Rafa presenc produces th ess jets. The company h nited n o ti ia v A lt u sa eU usin e of Falcon b nts in both France and th complete lin la . p ts n continen roductio sembly and p ice facilities on multiple erv States and s

B Hall B2.4

geopolitics

The Dassault Rafale French is a French twin-engine multirole combat aircraft capable of simultaneously undertaking air supremacy, interdiction, reconnaissance, and airborne nuclear deterrent missions. The Rafale is distinct from other European fighters of its era in that it is almost entirely built by one country, involving most of France's major defence contractors, such as Dassault, Thales and Safran.

The family of Falcon jets currently in production includes the trijets—the Falcon 900LX, and the 7X—as well as the twin-engine 2000LX, 2000LXS and Falcon 2000S. Dassault built its reputation for advanced high-performance aircraft in the region with the Indian Air Force which operates 50 Mirage 2000 fighters and, in January 2012, selected the new-generation Rafale for its Medium Multi-Role Aircraft (MMRA) mission.

Hawker Beech craft is all set to prom ote its new King Air 350i Aero India show in the , emphasising on the aircraft and its features and its variants, the co mpany’s CEO Mark Qua lls shared some details regarding the aircraft. Th e King Air turboprop plane can be customised to fulfill a wide variety of long–distance, highly technical missions as it comes with a flexible and technologically advanced cabin in a twin turbopro p.

Hawker orporation Beechcraft C n aerospace merica (HBC) is an A mpany which prog co manufacturin riety of high-performance va d duces a wide , turboprops, pistons, an ts je . s s s ation busine pecial applic military and s

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milifor building n w o n k is d deartin Lockheed M nd is also a recognise prea f tary aircraft per and manufacturer o nce fe lo signer, deve ment aerospace and de e clude g in a g n ts duc ro p cision e 's y n a p m nned e Co systems. Th bat, missile, rocket, ma is to m o s advanced c d systems. Their focu e esign and unmann ovative and low-cost d n formulate in ring strategies. tu c fa u and man

The C-130J Supe r Hercules is a proven airlifter, sion capability. with multi-role, The aircraft is ha multi-miss been selected transport role bu by India for its m t it can also perf ilitary orm combat de aerial refueling, livery, special m search and resc issions, ue, firefighting, sance, armed IS weather reconn R, long range m aisaritime patrol or tactical mile an the strategic an d re-supply of gr d last ound forces.

HELLFIRE II is a precision-strike missile system which has all the capabilities of all previous HELLFIRE II variants. It is equipped with Semi-Active Laser (SAL) seekers into a single missile that defeats hard, soft, and enclosed targets.

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The Lockheed Martin F-35 Lightning II is a single-engine fifth-generation fighter aircraft with stealth capability. It can carry out ground attack, reconnaissance and air defence missions.

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