1. Contents title
Contents subjects
March 2014
Eye on Defence
Dear readers,
The interim budget for 2014–15 was presented by the outgoing Government
in the Indian Parliament on 17 February. In the interim budget, the allocation
for defence expenditure for 2014–15 has increased by around 10% from last
year (now US$37.33 billion). Although, this may seem to be an impressive
figure, considering defence budget cuts around the world, but when seen
in the light of India’s weakening exchange position, it does not seem like a
significant increase. Moreover the declining share of capital expenditure with
regards to revenue expenditure in the budget allocation is a cause of worry for the modernization
and strengthening efforts of the armed forces. Furthermore, the sharp decline in allocation for some
expenditure heads such as “aircraft and aero engine” for the Air Force puts the future of major
programs such as the MMRCA, Attack and Transport Helicopters, Aerial Refuelers Aircraft, and
Jaguar Re engine program under question.
In this era of network-centric warfare, electronic warfare (EW) capabilities have indeed become force
multipliers for all military operations. These systems have assumed a pivotal role in strengthening
and modernizing India’s overall defence preparedness. The indigenous capability in electronic warfare
systems, led by various labs of the DRDO, has made significant progress. The private sector too
has developed world class products in this segment, sometimes even competing in ”Buy Global”
programs and winning on the parameters of technology and cost. With the EW capabilities becoming
the norm for all modern defence platforms, the market for these systems provides good business
potential in the Indian context. Therefore, in this edition, we have tried to identify the various facets
of EW systems and their application areas. In addition, included briefly are the relevant EW System
programs under planning and various stages of execution.
Among the regular sections, we have industrial license applicants, RFIs/RFPs released, new projects
and investments, joint ventures and alliances, country-level deals and the latest buzz in the industry.
I hope you find this issue useful. It has been our constant endeavor to make this publication
increasingly relevant to you, and we will appreciate your comments and suggestions in this regard.
K. Ganesh Raj
Partner and Leader
Aerospace and Defence practice
Contents
Indian Interim Defense
Budget 2014–2015: a high-
level analysis
Indigenous Capability EW
Systems
Request for information
(RFIs) for January – March
2014
Request for proposal (RFPs)
for January 2014 – March
2014
List of Industrial Licenses
(ILs) filed for November
2013— February 2014
New projects/investments/
contracts
Joint-ventures and alliances
Country-level deals and
initiatives
Industry buzz
2
6
12
13
17
19
21
23
25
2. 2 | Eye on Defence
As part of the Interim Budget presented in the Parliament of
India for fiscal year 2014–15, the budgetary allocation for
India’s defence forces has been raised to US$37.33 billion
as compared with last fiscal year’s figure of US$33.95
billion (budget estimate), an increase of 9.98 percentage
points. It is noteworthy that the growth rate of 9.98% does
not change even when the Revised Estimate is taken into
account, effectively meaning that there was no revision
(neither upward nor downward) in the budget estimate in
2013–14.
A national Interim Budget refers to the budget of a
government that is going through a transition period.
National governments require interim budgets to function in
the months it takes for a new government to create its own
budget plan. Countries such as India use the term Interim
Budget specifically to describe this period.
While in absolute terms the budget may have increased by
around 10%, it must be assessed against the backdrop of the
depreciating foreign exchange position of the rupee, since
the same time last year. The capacity to buy new equipment
may not have increased by much in real terms, since most
of our imports (capital procurement) are paid for in dollars.
Moreover, it is disturbing that the share of defence budget
in the GDP has declined from 1.8% in 2013–14 to 1.74%
in 2014–15. In a neighborhood as volatile as ours these
stagnant budgetary provisions may not provide the impetus
that the modernization effort is looking for.
(1US$=INR60 has been taken for the purpose of
conversion)
Indian Interim Defense Budget
2014–15: a high-level analysis
Capital expenditure
Capital budget is that portion of the budget, which is
earmarked to buy fresh defence equipment (e.g. tanks,
radars, missiles, aircraft, rifle etc.). It also includes
instalments — payments made in lieu of equipment
purchased in the preceding years. Sometimes these
instalments form as much as 70% or more of the capital
budget. Certain categories including new aero engines,
spares for in-service aircraft, and several categories of
trucks and vehicles are also part of the capital expenditure
putting further pressure on the capital budget.
This year, the allocation for capital expenditure has been
fixed at US$14.93 billion. This is an increase of 3.28% from
last year if we consider the budget estimate (an increase
of 13.59% from the last year if we consider the revised
estimate). While the capital budget has shown impressive
growth, we must bear in mind that the capital expenditure
predominantly comprises imports and is paid for in dollars.
Therefore, it bears the brunt of fluctuations in foreign
exchange.
The ratio of capital expenditure to revenue in the budget
for 2013–14 was 42:58. Furthermore, in 2013–14 (in
December), around INR 78.68 billion was diverted from
the capital to the revenue account after which it fell to
38:62. The current year’s ratio is an unimpressive 40:60.
This trend of declining capital expenditure, in relation
to the revenue expenditure, is not encouraging for the
modernization plans of the armed forces. It seems that the
rising cost of maintaining the defence forces is restricting its
modernization, pointing toward lack of central planning.
33.95 33.95
37.33
2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget)
Total Defense Expenditure (US$ billion)
% increase from 2013-14 (Budget): 9.98%
% increase from 2013-14 (Revised): 9.98%
% increase from 2013-14 (Budget): 3.28%
% increase from 2013-14 (Revised): 13.59%
14.46
13.15
14.93
2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget)
Capital expenditure (US$ billion)
3. 3Eye on Defence |
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2013-14 (Budget) 2013-14 (Revised) 2014-15 (Revised)
Army
Navy
Airforce
Defence Ordnance Factories
R&D
Other
Breakdown of capital expenditure (in US$ billions) The budget allotted to the army (53% share of the allocated
budget) has seen an impressive increase of 19% over
last year. Last year, the army was to disburse more than
INR646.8 billion — 92% of its capital allocation — for pre-
committed expenditures (most of it toward ammunition,
radars and missiles programs), leaving it with just INR29.55
billion for new contracts. In 2014–15, the army has its eyes
set on big ticket contracts such as the M777 Light Howitzer,
197 Helicopters contract, the Close Quarter Carbines
project, Javelin Missile and Night Vision Equipment. With a
substantial increase in the budget, it may be feasible for the
army to sign some of these contracts.
There has also been announced a provision of INR357
million in the interim defence budget for prototype
development under the “Make” procedure. It is unclear how
this money will be allocated or if it will be enough, since
major programs such as TCS, BMS and FICV are in the
pipeline under the Make procedure.
Category of
Equipment
2013–14 (BE) (in INR
million)
2013–14 (RE) (in INR
million)
2014–15 (I) (in INR
million)
% Growth of 2014–15
(I) over 2013–14 (BE)
Aircraft and aero
engine
15277.9 11823.2 21279.9 39.29
H&MV 20243.7 14809.4 21281.6 5.13
Other equipment 97588.6 78894.7 161559.3 65.55
Rolling stock 0 815 2750.7
Rashtriya rifles 160.2 1669.9 2130.5 1229.9
Total acquisition
expenditure
133270.4 108012.2 209002 56.83
4. 4 | Eye on Defence
Category of
equipment
2013–14 (BE) (in INR
million)
2013–14 (RE) (in INR
million)
2014–15 (I) (in INR
million)
% Growth of 2014–15
(I) over 2013–14 (BE)
Aircraft and aero-
engine
255395.9 285888.5 162714.3 -36.29
H&MV 28.2 361.4 1942.9 6789.72
Other equipment 115056.5 73915.5 153521.7 33.43
Total acquisition
expenditure
370480.6 360165.4 318178.9 -14.12
The budgeted provision for the Air Force has declined from
last year; however, the Air Force exhausted its share of
the budget in 2013–14 mainly paying instalments toward
already running programs. Especially interesting is the
major drop in budgetary provision for the aircraft and
aero-engine head. Considering that a major portion of this
allocation will already be committed toward contracts such
as C-17, C-130J, Basic Trainer, LCA, SU-30MKi signed in
previous years, it raises serious questions on the ability of
the Air Force to undertake major fresh programs expected
to come up for signing in 2014–15 such as the MMRCA,
attack and transport helicopters, aerial refuelers aircraft,
Jaguar Re engine program among others. The MoD will have
to make a down-payment of up to 15% of the contract value
on signing of the contract with Dassault Aviation if it decides
to sign the MMRCA this year.
The Naval budget for 2014–15 has also witnessed a decline
in absolute terms. The Navy is expected to finalize major
programs such as the Heavy Torpedo programs, Barak
missiles, Mine Counter Measure Vessels, Kolkata Class
Destroyers in 2014–15. Most of its capital budget last year
was spent toward paying for already running programs
such as the OPVs, Project 17 Shivalik Class Frigates, INS
Vikramaditya and some fresh programs such as the Towed
Active Array Sonar. The aircraft and aero engine head
under the Navy has seen a sharp decline putting the fate of
programs such as the multi-role helicopters, additional P8i
aircraft under question.
Category of
Equipment
2013–14 (BE) (in INR
million)
2013–14 (RE) (in INR
million)
2014–15 (I) (in INR
million)
% Growth of 2014–15
(I) over 2013–14 (BE)
Aircraft and aero-
engine
67087.1 74184 33306.9 -50.35
H&MV 537.4 39 342.7 -36.23
Other equipment 21928.2 25148.7 43581 98.74
Joint staff 7400.8 6192.7 828.8.7 12
Naval fleet 117722.6 87578.7 12856.0.6 9.21
Naval dockyard 20111.7 5500 1612.8.7 -19.8
Total acquisition
expenditure
234787.8 198643.1 23020.8.6 -1.95
5. 5Eye on Defence |
Revenue expenditure
Revenue expenditure includes budget for pay and
allowances, rations, clothing, stocking of spares, petrol,
oil and lubricants, maintenance works, etc. In the Interim
Budget it has shown a growth of 15% from the estimated
budget and that of 7.7% from the revised budget of 2013–
14. This increase may be attributed mainly to the increase
in pay and allowances of soldiers. Adding significantly to
this number will be the salaries and pensions for 80,000
fresh soldiers being added to the Army as part of the new
Mountain Strike Corps being raised in the North East. The
cost of raising these divisions is expected to be to the tune
of INR650 billion with an annual obligation of around INR80
billion. The current revenue budget may not be equipped to
handle this pressure. How then the government decides to
plug in this gap remains to be seen.
In 2013, the revenue expenditure overshot its allocation
due to increased fuel prices globally and India’s weakening
foreign exchange position. This shortfall was made good by
transferring money from the Capital Budget account to the
revenue account.
19.49
20.80
22.40
2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget)
Revenue expenditure (US$ billion)
-2
0
2
4
6
8
10
12
14
16
18
2013-14 (Budget) 2013-14 (Revised) 2014-15 (Budget)
Army Navy Air Force
Defence Ordnance Factories
R&D
Breakup of revenue expenditure (US$ billions)
% increase from 2013-14 (Budget): 14.95%
% increase from 2013-14 (Revised): 7.70%
References
1. “What-is-interim-budget-or-vote on account,” IBN
Live Interim Budget 2014, www.IBNlive.in.comnews, 17
February 2014
2. Ajai Shukla, “Defence budgeting based on delusion,”
Business Standard, 17 February 2014
3. “IDSA comments, India’s Interim Defence Budget 2014–
15,” IDSA, 23 February 2014
6. 6 | Eye on Defence
Indigenous capability EW systems
The global proliferation of electronics and communications
has evolved into a significant technologies advantage.
Electronic Warfare (EW) is a key element in the Armed
Forces ongoing effort to rebuild and modernize their
capability. This also presents challenges, since our
adversaries are constantly developing the means to use
these same wireless networks, electronics, computer
networks, and electronic warfare capabilities to launch
attacks. To meet these challenges, the Armed Forces are
implementing and integrating network and electronic
warfare capabilities to counter the hostile use of cyberspace,
space, and the electromagnetic spectrum. To put simply EW
is any military action involving the use of electromagnetic
and directed energy to control the electromagnetic
spectrum or to attack the enemy. It has three main domains.
Electronic attack (EA)
Use of electromagnetic energy, directed energy, or
anti-radiation weapons to attack personnel, facilities, or
equipment with an aim to degrade, neutralize, or destroy
enemy combat capability. These include:
• Electromagnetic Jamming (e.g., self-protection
jamming or standoff jamming)
• Positioning, navigation, and timing denial
• Electromagnetic deception
• Directed energy
• Anti-radiation missile
• Expendable flares, decoys
Electronic protection (EP)
Actions taken to protect personnel, facilities, and
equipment from any effects of friendly or enemy use of
the electromagnetic spectrum that degrade, neutralize, or
destroy friendly combat capability through:
• Electromagnetic spectrum management
• Electromagnetic hardening
• Emission control
Electronic support
Actions tasked by, or under direct control of, an operational
commander to search for, intercept, identify, and locate or
localize sources of intentional and unintentional radiated
electromagnetic energy for the purpose of immediate threat
recognition, targeting, planning, and conduct of future
operations.
The measures adopted for above purposes are broadly
categorized as under:
Electronic Warfare- Measures
Electronic Support
Measures (ESM)
Electronic Counter
Measures (ECM)
Electronics Counter
Countermeasures (ECCM)
• Intelligence
• ELINT
• COMINT
• Detection
• Direction Finding
• Analysis
• Identification
Active Active
Deception ChemicalJamming Mechanical
Passive Passive
7. 7Eye on Defence |
Wars in the future will be primarily fought in the electronic
domain. Electronic warfare (EW) plays both strategic and
tactical role in any modern military operation. These assets
are employed for supportive, protective and offensive
measures. The specific capabilities and equipment
specifications are usually highly classified. The EW systems
should have the following characteristics in order to be
effective force multipliers in the Indian context:
• Multifunctional and inter-operable with various
platforms; we need to integrate tri-service EW systems
for information sharing and collaborative action.
• Secure and jam-resistant communications with inbuilt
robust Electronic Counter Counter Measures (ECCMs) to
maintain healthy service levels
• Ability to intercept global system for mobile
communications (GSM), code division multiple access
(CDMA), high frequency (HF) to microwave frequency
and satellite monitoring, with both active and passive
systems
• Focus on deciphering, frequency hopping and automatic
switch control etc. for multi-range communication
needs.
Indigenous capability
DRDO has been the main design agency with BEL being the
production agency for most key indigenous EW programs.
Defence Electronics Research Laboratory (DLRL) Hyderabad
has been developing communications intelligence (COMINT)/
electronic intelligence (ELINT), land and naval systems such
as Ajanta, Ellora, Sangraha, Samyukta, Catch, and Coin.
Furthermore, Defence Avionics Research Establishment
(DARE) Bangalore
developed airborne EW
systems for JAGUAR
(DAWN) through
imported technology
for development of
indigenous family of
Radar warning receivers
(RWR) such as Tranquil,
Tarang, Tarang-1B,
R-118 etc. Airborne
Self Protection Jammer
(ASPJ) system developed
Tempest inducted in limited numbers.
By now, India’s EW capabilities include secure and jam-
resistant communications, EW systems and simulators,
COMINT and Interception Systems, antenna, satellite
communication systems (SATCOM Systems), networks,
stabilized platforms for air-borne radars, C4I systems and
missile support systems, encryption and secrecy systems
etc.
Airborne EW programs
Several other programs are being handled by DRDO, HAL,
and BEL with foreign partnership in Air Borne EW segment,
which are discussed as under:
Program No. of platforms Estimated cost (in INR
billion)
Partners
MiG-27 UPG (TAKSHAK) 40 7.5 ELTA
PA - BEL
LCA (MAYAVI) 80 + 12 ELISRA
Su -30 (HADF) 40 2 ELISRA
PA - BEL
ALH 100+ 3 SAAB, Avitronics, L&T
HAWK 88 N/A Open
MiG-29 UPG 63 10 ELISRA, Electtronica
The fourth-generation EWS are currently being developed
by the state-run Defence Avionics Research Establishment
(DARE) and Defence Electronics Research Laboratory (DLRL).
8. 8 | Eye on Defence
Industry capability
The ever-growing potential of EW systems as a force-
multiplier for the military has been recognized by private
companies as well. To begin with, they have played a
very effective role with their expertise in electronics,
communication and IT. The Indian private sector has the
necessary licenses for design, development and production
of EW systems and also demonstrated indigenous capability
in most of the domains, which has been verified during
NCNC evaluations. They also have flexibility to leverage
the eco system to obtain comprehensive ToT and IPRs
for imported sub systems, which will lead to self-reliance.
Some of the firms active in the domain are Tata Power SED,
Larsen & Toubro, Alpha Design, Axis Technologies etc.
Private players have been prime bidders even in Buy
(Global) EW tenders and are willing to invest stand alone
or as Consortia modes. They can provide Lifecycle Product
Support -Existing Pan India. L&T & TATA Power SED are
identified by DRDO as candidates for Engg & Life cycle
Support Agency (ELSA) for AEW&C project, beside can take
on Annual Maintenance Contract.
Tata Power SED bagged, a rare “Buy Global” defence
contract by being the lowest bidder in a US$186 million
contract to develop and supply two integrated electronic
warfare systems for mountainous terrain (IEWS-MT) for the
Indian Army in 2011. It is expected to open a larger market
for future EW systems for private players.
Although work is in progress indigenously, there is adequate
scope to bring in latest technology with the Indian private
players, thereby increasing the effectiveness of such
systems, so vital in this field where the better system
dominates the spectrum. Capability to work outside of
the radio-frequency band and in the infrared band would
facilitate search and track (IRST) and make possible anti-
electronics weapons.
Market size
The continuing exploitation of the electromagnetic spectrum
will be a driving factor for market growth. So far the market
has been dominated by DRDO and government sector
production units. The market will become more competitive
with the entry of private sector and partnership with foreign
OEMs. The competitors will engage in joint ventures to have
the technical know-how and the technology. Though the 4th
Generation EW can be developed indigenously, scope exists
for foreign companies to render technical assistance to the
Indian players to produce state-of-the-art systems.
The global electronic warfare market is estimated to be
US$12.15 billion in 2014 and is expected to register a
CAGR of 4.50% to reach US$15.59 billion by 2020. In the
Indian context, the EW systems segment forms almost one-
third of Communications and Avionics market, which in turn,
forms around 4.7% of total procurement. The annual market
size (2010–13) of this market has been worth INR35–40
billion and is growing at around 8% annually, over the years.
528
559
600.2
640 685
0
100
200
300
400
500
600
700
800
2011 2012 2013 2014 2015
Amountin$Million
Indian EW and Communication Market
Share of Communication & Avionics in Total
Procurements (2010-2013
36%
9%
10%
1%
Communication and Avionics
Other Equipment
Naval Fleet
Naval Dock-Yards
Misc.
Land
Construction
Air-Craft and Aero-Engine
Heavy and Medium Vehicles
1%
15%
20.3%
4.7%
3%
9. 9Eye on Defence |
Land systems
Land-based EW systems are moving beyond jammers,
which also block friendly communications, to selective and
reactive jamming capabilities, combined with flexibility,
power, modularity and portability. This in turn will represent
design challenges/opportunities for the next generation of
land-based EW systems and components that will need to
operate across wider bandwidths and higher frequencies as
the signal environment continues to become more complex
and congested.
Some of the major systems required are:
• Replacement of Russian P series (P-18, P-19), Indra and
the Reporter radars
• Procurement of MPRs and LLTRs worth more than
US$1.5 billion (INR75billion) in the next five to seven
years
• Procurement of mobile EW systems, both wheeled and
tracked, worth around US$400 million (INR 20 billion)
• Development of light-weight mounted radars for its
manned and unmanned aircrafts and helicopters
• Development of EW systems specific for use in the low
intensity conflict (LIC) areas to be used in mountains,
plains and jungle terrain
• Development of EW systems specifically for deserts,
mountains, and heliborne platforms
• Development of EW systems for active protection to
land vehicles
Naval systems
Sangraha comprises a family of electronic warfare suites,
such as Ajanta and Ellora, for use on different naval
platforms (helicopters, vehicles, and small ships) capable of
intercepting, detecting, and classifying. The systems employ
a modular approach facilitating deployment on various
platforms such as helicopters, vehicles and small ships.
Airborne EW programs
Some of the recent direct big ticket procurements or those
in pipeline with foreign EW suits are VVIP Boeing(FMS)-3,
C-130 (FMS)-6, Heavy Lift Heptrs-12, Mi-17 upgrade- 70+,
Mi-17 Procurement- 80, Light Heptrs-(A/N/AF)-197,
MMRCA- 126, M-2000 UPG-52 etc. Airborne EW, which
encompasses electronic attack (including jamming and
spoofing), electronic protection against jamming and cyber-
attack, and offensive cyber capabilities to attack enemy
networks would be future requirements.
Heli-borne EW systems
The specifications are under formulation for the plans
to procure helicopter-borne early warning systems. For
HAL Dhruv helicopter, HAL and IAI jointly developed a
glass cockpit. Avionics suites consisting of a HF/UHF
communications radio, identification, friend or foe (IFF)
recognition, Doppler navigation, and a radio altimeter; a
weather radar, navigation radars and also avionics for day-
and-night flight observation are other major subsystems
required.
Saab Compact Integrated Defensive Aids Suite (CIDAS)
has been selected by HAL for its Dhruv, Rudra and LCH
helicopters. Saab has signed an MoU with HAL in 2011 to
form a joint venture for airborne EW systems. Similarly,
Bharat Electronics Ltd.. and Elbit Systems-Elisra are working
together on airborne electronic warfare programs for Indian
defence requirements.
10. 10 | Eye on Defence
Ballistic Missile Defence
A two-tier ballistic missile defence (BMD) network is at an
advanced stage of development by the DRDO. Currently, it
is using the ELTA Systems-built EL/M-2080 “Green Pine”
ground-based active phased-array L-band long-range
tracking radar (LRTR). The fielding of the BMD may see the
need for more such radars (six to seven) at a cost of US$1.5
billion (INR75 billion). Much of the work involved is expected
to be out sourced by DRDO.
Some of the recent RFIs/RFPs in this segment are as under:
Date of issue RFI details
Indian Air Force
15-Jul-10 Heliborne EW System
17-Dec-10 Light Weight Integrated (LWI) Helmet of Chetak/ Cheetah for Helicopters Aircrew
02-Feb-11 Airborne Sigint System and Tactical Elint Pod
27-May-11 Instrumented EW Range
03-Dec-12 Passive Surveillance and ELINT system
13-Aug-13 Close in Weapon Systems (CIWS)
13-Aug-13 Low Level Quick Reaction Missile System
13-Aug-13 Medium Range Surface to Air Missile System
13-Aug-13 Long Range Surface to Air Missile System
13-Aug-13 New Generation Beyond Visual Range (NG BVR) Air to Air Missile
13-Aug-13 New Generation Within Visual Range (NG WVR) Air to Air Missile
19-Aug-13 Radar Warning Receiver
19-Aug-13 Counter Measure Dispensing System (CMDS)
19-Aug-13 Procurement of Laser Warning Receiver
19-Aug-13 Procurement of Missile Approach Warning System
19-Aug-13 Procurement of Directed Infrared Counter Measure System
19-Aug-13 Radar Warner Jammer
19-Aug-13 Procurement of Escort Jammer
24-Sep-13 High Power Radar
Indian Army
26-Nov-09 Infra-Red Jammer
01-Jun-10 ELINT Intercept Receivers
16-Aug-12 ELINT Intercept Receiver for Mountainous Terrain
03-Sep-13 SAKRIYA (Radio And Cell Phone Jammer Counter IED System) Qty-22
Indian Navy
Aug-10 COMINT System with DF Capability for Project 75 (Submarines)
Oct-10 Six medium-range maritime reconnaissance aircraft capable of maritime patrol, anti-surface
warfare, electronic intelligence and search and rescue.
25-Nov-10 Integrated ASW Defence Suite
02-Aug-13 EOIR (Electro Optical & Infra-Red Payload) for Helicopter
02-Aug-13 Infra-Red - Visual Search Light
24-Oct-13 Electro Optical System with Automatic Infrared Search and Track Facility Having Provision for
Remoting Gun Mounts (EOIRST)
Request for information (RFIs) - EW SYSTEMS 2009–2014
11. 11Eye on Defence |
Request for proposal (RFPs)- EW systems– 2009–2014
Date of issue RFP details
Indian Air Force
23-Apr-13 TARANG Mk-1B Radiation Warning Receiver System Mechanical Mod Kits for IL-76/IL-78 fleet of
IAF; Qty: 6
15-Jul-13 Automatic electronic warning system
06-Jan-14 Airborne RF Package Mk I (M. No. SYABPDE1-Mk1) + Two items; Qty: 2
India Army
13-Mar-13 Advance Surveillance Receiver; Qty: 48
21-Mar-13 Gamma Sensor; Qty: 18
DRDO and OFB
18-May-12 Laser Warning System
13-Jan-14 RF Multiplexer Module; Qty: 3
16-Jan-14 Wireless radio data link modems with accessories - DRDO
06-Feb-13 G Band Wave Guide Components
15-Feb-13 S Band WR 284 waveguide calibration kit and WR 137 C-Band waveguide calibration kit; Qty 01
No.
22-Jan-14 Laser diffraction based particle size analyzer
References:
1. Field Manual No. 3-36, Electronic Warfare in Operations,
Headquarters Department of the Army Washington, DC,
2014IANS, “BEL to invest $100 million in electronic warfare
products,” Business Standard, 18 February 2014
2. “Electronic warfare offers Rs 25,000-cr biz for India Inc,”
PR Newswire, February 21 2012
3. “Electronics,” DRDO website, http://drdo.gov.in/drdo/
English/index.jsp?pg=tech_electronics.jsp, accessed 5
March 2014
12. Date of Issue RFI Details Response Date Issued By Defence Service
28-Feb-14 Night Sight for
7.62mm Light
Machine Gun (TI)
26-Mar-14 PMO F-INSAS For IA
25-Feb-14 Passive Night Sight
(PNS) for Rifle AK-47
20-Mar-14 DG of Weapons and
Equipment (W E-8/9)
For IA
25-Feb-14 Intermediate Jet
Trainer Aircraft
04-Apr-14 Principal Director, Air
Staff Requirement
For IAF
26-Feb-14 Digital Side Scan
Sonar
18-Mar-14 Directorate of
Hydrography MoD
Navy
For IN
26-Feb-14 Portable Shallow water
Multibeam System
18-Mar-14 Directorate of
Hydrography MoD
Navy
For IN
21-Feb-14 Cots Radar With Multi
Function Display
30-Mar-14 Directorate of Staff
Requirements Navy
For IN
21-Feb-14 Boom Defense System 31-Mar-14 Directorate of Staff
Requirements Navy
For IN
21-Feb-14 Cots Radar With Multi
Function Display
30-Mar-14 Directorate of Staff
Requirements Navy
For IN
19-Feb-14 Work Boats 14-Mar-14 PD(SA) DTE of Ship
Acquisition Coast
Guard
For ICG
23-Jan-14 Electronic Data Display
Unit for Indian Army
10-Feb-14 Comdt, EME School For IA
10-Jan-14 Mobile Integrated
Network Terminal
(MINT) for mountain
05-Mar-14 Directorate of System
Applications
Directorate General of
Signals
For IA
02-Jan-14 Conductivity
Temperature Depth
(CTD) System
27-Jan-14 Directorate of
Hydrography. MoD
(Navy)
For IN
02-Jan-14 Autonomous
Underwater Vehicle
(AUV)
27-Jan-14 Directorate of
Hydrography, MoD
(Navy)
For IN
12 | Eye on Defence
Request for information (RFIs) for
January – March 2014
13. 13Eye on Defence |
Request for proposal (RFPs) for
January 2014 – March 2014
Date of Issue RFI Details Response Date Issued By Remarks
07-Mar-14 Protective Masks (3-M
Full Face Masks)
12-Mar-14 AOC, 3 BRD Air Force For IAF
Qty: 12 Nos.
06-Mar-14 Very Short Range
Air Defence System
Simulator
27-Mar-14 Army Air Defence For IA
Qty: 01 Nos.
04-Mar-14 Driving Simulator Four
Wheel
19-Mar-14 Air Force Station
Digjam Road
For IAF
04-Mar-14 Test Equipment for
New Generation Tank
Sight
19-Mar-14 Comdt, EME School. For IA
04-Mar-14 Bullet Proof Jacket NIJ
Threat level III
24-Mar-14 Naval Materials
Research Laboratory
Issued by DRDO
Qty: 28Nos.
27-Feb-14 Igla Training Simulator 19-Mar-14 Army Air Defence
Centre, Golabandha,
For IA
24-Feb-14 Set Beam Search Light 27-Mar-14 Procurement Cell For NSG
Qty: 100 No.
25-Feb-14 R-2 Airborne Antennas 03-Apr-14 Aeronautical
Development
Establishment
Issued by DRDO
19-Feb-14 Coxed Four FRP
Floating Jetty
10-Mar-14 NS Zamorin Ezhimala
Naval Academy.
For IN
Qty: 10
19-Feb-14 Laser Radial Boat
Equipment (Power
Pack)
04-Mar-14 INS Zamorin, Naval
Academy PO
For IN
Qty: 06
19-Feb-14 LWI Helmet for CTK/
CTH Hepter
13-Mar-14 DTE of Procurement
Air HQ (VB),
For IAF
18-Feb-14 LWI Helmet, Mask
Oxygen Mic Lead and
Microphone Dynamic
13-Mar-14 DTE of Procurement
Air HQ (VB),
For IAF
17-Feb-14 Structural Retrofit and
Life Extension Task on
Thirty Three MiG-29
Fighter Aircraft.
17-Apr-14 Head Quarters
Maintenance
Command, Nagpur –
440007
For IAF
14-Feb-14 Remote opening tool
kit (CROT)
07-Mar-14 The Commandant,
College of Military
Engineering,
For IA
Qty: 2, explosive
detective kits Qty: 1,
Hook and line set
14-Feb-14 HVF Tender (11 Types
of NBC Pads
18-Mar-14 HVF Avadi Issued by OFB
13-Feb-14 CCTV Camera 06-Mar-14 Naval Command For IN
14. 14 | Eye on Defence
Date of Issue RFI Details Response Date Issued By Remarks
13-Feb-14 4,381 Quantity of
Round 122MM HOW
(Full Charge) Smoke
(White Phosphorous)
Ammunition
08-May-14 MGO PPO For IA
13-Feb-14 4,751 Quantity
of Round 122MM
HOW (Reduced
Charge) Smoke
(White Phosphorous)
Ammunition
08-May-14 MGO PPO For IA
13-Feb-14 9,058 Quantity of
Round 122MM HOW
HE (Reduced Charge)
Ammunition
08-May-14 MGO PPO For IA
13-Feb-14 122MM HOW
Illuminating (Full
Charge) Ammunition
08-May-14 MGO PPO For IA
Qty: 3,144
12-Feb-14 Security Equipment
(Multifunctional
Electronic Target
System)
03-Mar-14 For IAF
10-Feb-14 Proc of training
packages of guided
weapon (GW) basic
including display
system
04-Mar-14 Army Air Defence
College : Gopalpur
For IA
11-Feb-14 TACAN/9039119
transistor 0912-300
KC16
25-Feb-14 LP Cell 9 BRD, AF For IAF
Qty: 04
03-Feb-14 Cartridge SA 7062
MM (With Steel Core
Bullet) Rimmed - QTY
76,04,171
17-Apr-14 DDG PPO For IA
25-Jan-14 Electronic Ballast 40
Watt
10-Feb-14 General Manager,
Ordnance Equipment
Factory, Kanpur
Issued by OFB
24-Feb-14 Shrapnel Proof
Ballistic Protection
Goggles
03-Feb-14 HQ TC For IAF
Qty: 100
23-Jan-14 General Service Life
Jacket
27-Feb-14 Controller of
Procurement Material
Organisation (Mumbai)
For IN
Qty: 4950
22-Jan-14 Laser diffraction based
particle size analyzer
19-Feb-14 Director, HEMRL, Pune Issued by DRDO
15. 15Eye on Defence |
Date of Issue RFI Details Response Date Issued By Remarks
20-Jan-14 FUZE 213 MK-5 (M-3)
for 81MM ILLG
07-Feb-14 General Manager,
Ordnance Factory,
Dehuroad
(Maharashtra), Pune
Issued by OFB
20-Jan-14 FZ 117 DA (E) with
cap for 105MM HE
27-Jan-14 Issued by OFB
22-Jan-14 Aerial Bomb 100-120
KG.RDZ (Empty)
25-Feb-14 The General Manager,
Ordnance Factory
Khamaria, Jabalpur
Issued by OFB
06-Jan-14 Computed
Radiography System
(CR System)
28-Jan-14 Directorate General
of Medical Services
(Air) Air Headquarters
(RKP)
For IAF
06-Jan-14 Infra Red
Thermometer
(Thermal Gun)
13-Feb-14 Deputy General
Manager (Materials),
Cochin Shipyard
For IN
06-Jan-14 Computed
Radiography System
28-Jan-14 Directorate General of
Medical Services (Air)
Air Headquarters
(RKP)
For IAF
06-Jan-14 Airborne RF
Package Mk I (M. No.
SYABPDE1-Mk1) +
Two items
29-Jan-14 Aeronautical
Development
Establishment,
Bangalore
For IAF
06-Jan-14 Digital Aneroid
Barometer
04-Feb-14 Directorate of
Meteorology, AIR HQ
(VB)
For IAF
06-Jan-14 Two Wind Direction
And Speed Sensors
04-Feb-14 Directorate of
Meteorology, AIR HQ
(VB)
For IAF
06-Jan-14 Supply Of Digital
Mobile Met Kit
04-Feb-14 PD Met, Directorate of
Meteorology, Air HQ
(VB
For IAF
06-Jan-14 Radio Controlled
Target Boats (RCTBs)
19-Feb-14 Directorate of
Indigenisation,
Integrated
Headquarters, Ministry
of Defence (Navy)
For IN
Qty: 2
04-Jan-14 Tactical Vest 22-Jan-14 Col EME, EME Branch,
HQ Central Command,
Lucknow
Qty: 1040
16. 16 | Eye on Defence
Date of Issue RFI Details Response Date Issued By Remarks
02-Jan-14 Bomb Arial 100-120
Kg Empty
18-Feb-14 Deputy General
Manager, OFB
Khamaria, Jabalpur
Issued by OFB
Qty: 1500 Nos.
02-Jan-14 Bomb 450 KG HSLD
Empty ASY ARDE-
2122
18-Feb-14 Deputy General
Manager, OFB
Khamaria, Jabalpur
Issued by OFB
Qty: 1000 Nos.
02-Jan-14 Bomb 250 KG HSLD
ARDE-9501-01/1
Empty
18-Feb-14 Deputy General
Manager, OFB
Khamaria, Jabalpur
Issued by OFB
Qty: 1640 Nos.
01-Jan-14 Procurement and
Installation of Video
Surveillance System
Including Command
and Control Centre
06-Feb-14 Air Officer
Commanding, Air
Force Station Jodhpur
For IAF
01-Jan-14 Fuze Percn. DA.
No.117 empty MK-20
with cap to CQA (A)
part no. QX 244GE, DC
33752-A and specn.
NO. 1A 1204
27-Jan-14 The General Manager,
Ordnance Factory
Chanda
Issued by OFB
17. 17Eye on Defence |
List of industrial licenses (ILs) filed for
November 2013— February 2014
Application no. and date Name of the applicant Item of manufacture
193
28/02/2014
Vihaan Networks Ltd. Base transceiver station, base station controller, main switching
center, charge control unit, CCU combiner, voltage conversion unit,
power cable assembly, OMC racks, TD node/ RT node, e-kiosk, radio
unit, repeater, surveillance/IP camera
171
27/02/2014
Mahindra
Aerostructures Pvt.
Ltd.
Airframe parts and assemblies for aircraft and unmanned aerial
vehicles specially designed for military/defense use
142
25/02/2014
Kadet Defence Systems
Pvt. Ltd.
Unmanned aerial vehicles, unmanned surface vehicles, launchers
and recovery support equipment, airframe and parts thereof for
aerial targets and UAVs, miss distance indicators and scoring
systems, shelters, ground control station and ground support unit
60
17/02/2014
Best Forgings India Pvt.
Ltd.
Manufacturing of parts and accessories of n.e.c. for special purpose
non-electrical machinery equipment n.e.c.— parts of rifle and guns
57
17/02/2014
Raja Explosives Pvt.
Ltd.
Detonators, fuse, cast boosters, PETN and other items
25
05/02/2014
Analogic Controls India
Ltd.
Manufacturing of safety fuses, electronic warfare systems, design,
development and production of defense electronics systems and sub
systems, missile systems etc.
20
31/01/2014
Investment & Precision
Castings Ltd.
Manufacturing of parts and accessories of n.e.c. for special purpose
— non electrical machinery equipment n.e.c.— parts of rifle and gun
18
30/01/2014
Neco Defence Systems
Ltd.
Bulletproof jacket, bulletproof helmet, body protector, bulletproof
other items
13
22/01/2014
Radiant Wiring Systems
Pvt. Ltd.
Wire harness
07
20/01/2014
Amertec Systems Pvt.
Ltd.
Manufacturing of automatic test equipment and simulators for
radars, seekers, EW and data link applications, electro-optic units,
electro mechanical systems, UAVs, missile systems, pods, T/R
modules, RF and microwave sub systems
05
20/01/2014
Hi - Tech Investment
Castings Ltd.
Manufacturing of weapons and ammunition, ignition parts and other
electrical parts for internal combustion engines, air and spacecraft
and related machinery, weapons and ammunition.
04
17/01/2014
Micron Instruments
Pvt. Ltd.
Weapon systems such as mortars, rocket launchers, grenade
launchers, and missile launchers
79
31-12-2013
UMS Technologies Ltd. Manufacture of steam engine and turbine
78
30-12-2013
Economic Explosives
Ltd.
New generation explosives for defense applications, new generation
binders and plasticisers for rocket propellants for defense
73
20-12-2013
ESS AAR Tools Pvt. Ltd. Machined components, special purpose machines
18. 18 | Eye on Defence
Application no. and date Name of the applicant Item of manufacture
71
17-12-2013
Micronel Global
Engineers Pvt. Ltd.
Aerosystems parts and items of aircraft and helicopter and UAV
70
25-11-2013
Punj Lloyd Aviation Ltd. Manufacturing of aircraft, LAV, UAVs, aero engines and aircraft
equipment, related equipment and components specially designed or
modified for military use
68
25-11-2013
Punj Lloyd Aviation Ltd. Forging, casting, aero-structures and components for aerospace
specially designed to be used in military platforms, launcher use and
other unfinished products
67
25-11-2013
Punj Lloyd Aviation Ltd. Maintenance, repair and overhaul activities of aircraft, lighter than
air vehicles, unmanned aerial vehicles, aero-engines and aircraft
equipment, related equipment and aerospace-related equipment and
components
66
22-11-2013
Belmaks Pvt. Ltd. Manufacture of sheet metal components for defense
65
18-11-2013
OIS Aerospace Pvt. Ltd. Manufacturing of parts accessories, sub-systems of aircraft lighter
than air vehicles, unmanned aerial vehicles, and aerospace software
engineering; maintenance of the above and ground support systems
64
14-11-2013
Titan Company Ltd. Design, development and manufacturing of components, parts,
assemblies, sub-assemblies, systems and subsystems for aircraft,
helicopters, avionics, aero engines, airborne systems, UAV, UVS,
warfare system, satellite systems, weapon systems, weapon systems,
rocket and missile launchers, etc.
63
14-11-2013
SKL (India) Pvt. Ltd. General sets, control panels, repair of electrical indl. machines
19. 19Eye on Defence |
New projects/investments/contracts
Name of entity Project details Value*
Indian Air Force
(IAF)
• ►The IAF is looking to buy 14 squadrons of indigenously built Tejas Light Combat Aircraft.
Each IAF combat squadron has 21 fighter aircraft; therefore, 14 squadrons will require
294 Tejas fighters.
• The Tejas will cost INR2.09 billion per fighter when the entire development cost on the
fighters is amortized. However, Hindustan Aeronautics Ltd. (HAL), which manufactures
the Tejas, quoted a reduced price for the IAF at INR1.62 billion a fighter.
INR476
billion
Ordnance
Factory Board
(OFB)
• OFB is seeking help from overseas companies to modernize its factories. The
modernization program is expected to begin in April 2014.
• Currently the OFB is evaluating UK-based BAE System’s offer to modernize its 41
factories.
• The modernization efforts will continue through the Twelfth five-year plan period of
(2012–17).
INR157
billion
Ministry of
Defence (MoD)
• The MoD has cleared multiple procurement proposals for the Indian armed forces in a
meeting of the defense acquisitions council (DAC).
• The different proposals cleared include an INR40 billion plan to procure hand-held
thermal imagers with laser range finders from Bharat Electronics Limited (BEL).
• A project to procure thermal imaging sights worth around INR30 billion was also cleared
for the tank fleet of the Army including T-90 and T-72 tanks and the BMP armored
personnel carriers.
• The major chunk of more than 40,000 light machine guns will go to the Army, while the
Air Force and the Navy will get around 3,000 pieces from this acquisition.
• The Army’s Special Forces also got approval for the light armed multi-purpose vehicle
(LAMV) worth around INR12 billion under which 702 vehicles will be procured.
• Finally, the DAC approved an INR18 billion project to modernize five ordnance depots of
the Army.
INR90
billion
MBDA • MBDA won a contract to provide IAF with air-to-air close combat missiles for its British-
made Jaguar aircraft.
• It has beaten Rafael of Israel and Rosoboronexport of Russia in the tender floated in
2009.
• Though the missile trials were completed nearly two years ago, the MoD delayed
announcing the short-listed vendor. MBDA is waiting for finalization of the contract.
INR22
billion
Finmeccanica • DAC cleared a proposal to procure Black Shark torpedoes from Finmeccanica for the
Navy. Black Shark torpedoes are multi-purpose weapons designed to launch from both
submarines and surface vessels.
• The Indian Army plans to buy 98 torpedoes, out of which 20 would be procured from
the original equipment manufacturer and the rest would be manufactured by Bharat
Dynamics under licence in India.
INR19
billion
21. 21Eye on Defence |
Joint ventures and alliances
Name of the
entities
Nature of transaction Value*
Ramco and
Turbomeca
►
• ►Ramco Systems signed a memorandum of understanding (MoU) with Turbomeca to
develop compatibility solutions between Turbomeca’s BOOST and Ramco’s M&E/MRO
solution.
• The partnership plans to develop an interface to integrate both solutions to help aerospace
customers, engine services centers and heli-operators benefit from seamless data transfer.
The web-based application will help customers to electronically share data for operations
and airworthiness tasks and limit human factors through its specific online features.
NA
SAAB and
Kalyani
►
• ►Kalyani Group has tied up with Sweden-based defense and security company SAAB to
boost indigenization.
• The strategic alliance will address key Indian air defense projects, including the Very
Short Range Air Defense (VSHORAD) and the Short Range Surface to Air Missile (SRSAM)
requirements.
NA
SAAB and
Ashok
Leyland
►
►
• ►Swedish defense company, SAAB, tied up with Ashok Leyland for the Indian Army’s
requirement for short-range surface-to-air-missile system tender (SRSAM).
• Ashok Leyland will deliver high-mobility vehicles to transport the SRSAM solution.
• All sub-units within the weapon system are being integrated with the Ashok Leyland Super
Stallion 8x8, a high-mobility vehicle capable of operating in all types of terrain under all-
weather conditions.
NA
BEL and
Sagem
►
• ►BEL signed an MoU with France-based Sagem Defense Securite for co-operation in the
production and supply of navigational sensors such as periscope, Inertial Navigational
System and optronic mast to the Indian Navy.
• The MoU will help in understanding and absorbing the critical technology adopted in these
sensors for use in future induction platforms of the Navy. It will facilitate BEL and Sagem
to work together for two years and if considered necessary, the same can be extended to a
further period agreeable to both the companies.
NA
BEL and
Textron
►
• ►BEL has signed an MoU with Textron Systems to develop an unattended ground sensor
(UGS) system for Indian security agencies.
• The UGS system will provide actionable intelligence by displaying the position, direction
and speed of personnel and vehicle threats, making it easy for border management
agencies to locate, identify and intercept them.
NA
OIS-AT
and BCB
International
►
• ►OIS-AT will form strategic relationship with UK-based BCB International. Under this
agreement OIS-AT will work as an OEM of the BCB’s Ultralight Micro Vertical Take Off and
Landing (UMVTOL) Unmanned Aerial Vehicles (UAVs) in a hand-held form factor.
• OIS-AT will also be the Indian OEM for their kinetic systems, including wall-breaching
system and a water interceptor for low-intensity conflicts (LIC).
NA
OIS-AT and
Aerosentinel
• ►OIS-AT plans to enter a strategic relationship with Israel’s AeroSentinel. Under this
agreement, OIS-AT will work in all functions as an OEM of AeroSenitel’s Quad Copter
Unmanned Aerial Vehicles (UAVs).
NA
23. 23Eye on Defence |
Country-level deals and initiatives
Country Nature of transaction Additional details
China • The 6th Annual Defence and Security
Dialogue between India and China was held in
New Delhi and co-chaired by India’s Defense
Secretary, Shri RK Mathur and China’s
Deputy Chief of General Staff, Lt Gen Wang
Guanzhong.
• Both sides exchanged views on regional and
global security issues including the security
situation in South Asia, the Asia-Pacific
region and the Indian Ocean region.
• The countries decided on measures for exchanges
and interactions between the Armed Forces in 2014
including a joint Army exercise in India in 2014.
• Other agreed measures included the strengthening of
maritime security cooperation between Navies, officer
exchanges and professional interactions at various
levels of all services and exchanges in the areas of
peacekeeping, counter terrorism and humanitarian
assistance and disaster relief.
Israel • India and Israel are close to completing a deal
to build an antimissile system as protection
from possible nuclear or conventional
attacks.
• The final deal is anticipated to be inked within
six months.
• The envisioned antimissile system would incorporate
India’s indigenous Prithvi air defense technology and the
land-transportable radar under development by Israel
Aircraft Industries.
• Israeli defense company, Rafael, is also in line to
participate in the program.
Japan • India is set to become the first country to buy
a military aircraft from Japan since World
War II. This will help Japan to end a ban on
weapons exports that has kept its defense
contractors out of foreign markets.
• The two countries are in broad agreement
on a deal for the Japan-based ShinMaywa
Industries’ amphibious aircraft, estimated to
cost around US$1.65 billion.
• Currently, Japan offered a stripped-down civilian version
of the US-2i search and rescue plane to India. The two
countries are also discussing about assembling the
aircraft in India, which can give India access to Japanese
military technology.
►Russia • India signed MoUs with Russia for Combat
Management Systems and radars for the
Indian Navy.
• The MoUs include an agreement between
Indian company Pipavav defense and
Offshore Technologies Ltd. and Russian
state-run defense company Concern-
Morinformsystem-Agat.
• India and Russia are looking forward to launching a
mutually beneficial cooperation pattern in producing for
the Indian market as well as for export. A working group
is likely to be established as soon as all the formalities
are settled within a month of signing the MoUs.
• The Russian defense company is also in talks with
Hindustan Shipyard, Goa Shipyard and BEL to jointly
develop products for the Indian Navy.
►South
Korea
• South Korea and India held their first
strategic dialog to discuss ways to boost
military ties and cooperation in the defense
industry.
• South Korean Deputy Defense Minister met with his
Indian counterpart to share opinions on regional
security issues and to explore ways to expand defense
cooperation. The two countries agreed to regularly hold
high-level security consultations.
• Military officials and businessmen held meetings to
explore ways to conduct joint R&D and production
opportunities.
28. 28 | Eye on Defence
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29. 29Eye on Defence |
Why choose Team EY?
Unique Team Experience Offset Structuring Industrial Connects End to End Solutions
• Team member
was a part of the
team that wrote
the Indian Defense
Offset policy in
2006.
• Team member
founded the DOFA.
• Team member has
written a complete
book on Offsets with
the CII.
• Offset Structuring
worth US$ 3.7
Bn executed
successfully.
• Total experience of
66 man years in the
Armed Forces.
• MoD experience of
14 man years.
• Team has members
from the Auto
practice-India’s
only proven
manufacturing
competence
•
in Bangalore;
Pune Hyderabad
& Chennai where
these manufacturing
and IT capabilities
reside
• Industrial License
Application
• FIPB approval
• Due-diligence
services
• Transaction
Advisory for M&A
• Tax Mitigation in
offset contracts
• Creation of a
compliant Offset
Schedule
• Quarterly Offset
progress report
Unparalleled Support & Advantage for OEM’s & Indian Companies
30. 30 | Eye on Defence
Services offering – Tax & Regulatory
Contract
negotiation stage
Post contract
signing support
Other
Compliance
and Advisory
Pre bid stage1 2 3 4
► Review the clauses of RFP in
order to highlight the
clauses/terms from a tax &
regulatory perspective.
► Suggest alternative
approaches where necessary
► Advising on tax issues
Association of Persons
('AOP') exposure under the
consortium model and
suggesting adequate
safeguards.
► Identification of a suitable
business model.
► Formulate appropriate tax
positions
► Back End advise on tax and
regulatory clauses in the
bid negotiation with the
objective of optimizing the
tax & regulatory
implications.
► Responding to queries
pertaining to any tax or
regulatory issues which
may arise during the
discussion stage
► Assistance in set up
of the agreed upon
business model.
► Advise on
subcontracting/
local purchase
arrangements from
tax and commercial
perspective
► Formulate
appropriate tax
positions
► Plan for advance
ruling for upfront
certainty/ clarity
ServicesOffering
Support
atevery
stage Contracting Process
► Corporate tax and
indirect tax
compliance
► Accounting services
► Background check
(Fraud investigation)
on viability of the
chosen Indian Offset
Partners (IOP’s)
► Foreign Investment
Promotion Board
(FIPB) & Industrial
License (IL)
application and
clarifications for IOPs
Importance
► Develop certainty with
respect to impact and
incidence of direct and
indirect taxes in India
► Establishment of a tax
efficient and regulatory
compliant structure in
India
► Compliance with ever
evolving tax and
regulatory regime in India
► Upfront identification of tax
and regulatory implications
under the RFP
Services offering - Defence Offset
Bid Stage Contract
negotiation stage
Post contract
signing support
Pre bid stage
1 2 3 4
Offset process
► Help evolve an
understanding of the offset
process and stakeholders
Indian offset
partners(IOPs)
► Identification of IOPs (M&A
/ JV / Licensed
Manufacture / Sourcing)
► Clarification from
DIPP/FIPB/MoD regarding
their regulatory status
Support services
► Industrial Licensing for
IOPs
► IOPs financing
► Joint venture structuring
Offset Proposal
► Identification of methods
of offset discharge
► Structuring/vetting of
Technical and commercial
offset proposals
► Support in answering the
queries of the MoD
Indian offset
partners(IOPs)
► Structuring contractual
arrangements with IOPs
► Valuation of offset
attributable
► Financial & Background
due diligence of IOPs
► Continuous support
through on call
advisory
► Support in
preparation of
appropriate
responses to MoD
queries
► Identification of
stand by IOPs in
case of removal of
existing ones
► Any other support
as maybe required.
Servicesoffering
Supportatevery
stage
Contracting process
► Support in compiling
documentation
required for offset
discharge
► Support in
preparation of
quarterly / half
yearly reports on
fulfillment of offset
obligations.
Importance
► To ensure a suitable
Technical and commercial
offset plan that should find
favour with the TOEC and the
CNC.
► Support in getting the
technical offset
proposal approved in
time so that it does not
obstruct main contract
signing
► Continued support for
offset execution to avoid
penalties and loss of faith
with the MoD
► Evolve understanding of
offset process amongst the
core team for optimal
planning
► Identification of eligible and
viable IOPs who can sustain
through the duration of the
offset program
► Planning for submission
► Identifying the right
partners and
methodologies
► Getting the
documents right for
submission
► Building the right
offset program
► Getting the
optimum
economic value
for offsets
► Documentation
of offset
execution