News Story: Indian Navy launches hunt to acquire 110 helicopters in $5B deal

Kamov Ka-226T (Image: Wiki Commons)

By: Vivek Raghuvanshi

NEW DELHI — The Indian Navy has begun its process of acquiring 110 light utility helicopters after rejecting Russia's Kamov Ka-226T, which are being built for the Air Force and Army, according to a Ministry of Defence official. 

"The Kamov 226T does not have blade folding and cannot be fitted inside a ship's hangar. Moreover, it is not suitable to carry the torpedoes, which is the mandatory requirement," said an Indian Navy official. 

The light utility helicopters, or LUH, will be procured under the strategic partnership policy India's government approved last month, under which a private-sector defence company will be selected as a strategic partner, which, in turn, will tie up with an overseas original equipment manufacturer, or OEM, shortlisted by the MoD. 

In the next two months, an expression of interest will be given to domestic companies, including Bharat Forge, Reliance, Larsen & Toubro, Mahindra Aerospace and Tata Advanced Systems. The domestic companies will partner with overseas OEMs to compete for the contract worth $5 billion. 

Read the full story at DefenseNews

News Story: India, Russia to iron out defense projects worth $10B

Russian T-50 PAK FA, base design for India's FGFA

By: Vivek Raghuvanshi

NEW DELHI — Ahead of Indian Prime Minister Narendra Modi's visit to the U.S. for his first meeting with President Donald Trump, Arun Jaitley, India's finance minister and defense minister, is visiting Moscow to finalize weapons projects worth $10 billion that are "held up in the last stages." 

Jaitley will "iron out" weapons projects during his talks on with Russian Deputy Prime Minister Dmitry Rogozin and Defence Minister Gen. Sergey Shoygu at the 17th Intergovernmental Commission on Military-Technical Cooperation in Moscow, an Indian Ministry of Defence official said. 

The weapons projects worth over $10 billion that are in the final stages of discussions include the purchase of S-400 air defense systems, the acquisition of four Admiral Grigorovich-class frigates and the acquisition of 200 Kamov 226T light utility helicopters, or LUH, under the Make in India category. In addition, the lease of the second nuclear-powered submarine that is also in the final stages will be discussed. 

The MoD official said one of the major sticking points between India and Russia, which has been affected by U.S. sanctions against Russia pertaining to bank guarantees, has been resolved. 

The sanctions disabled Indian banks from issuing guarantees to tie up with leading Russian banks. 

According to Indian procurement law, Russia has to furnish bank guarantees from an Indian bank, which, in turn, has to tie up with a Russian bank. In addition, the bank guarantee should be made by a leading Russian bank, which are all under U.S. sanctions.

"Jaitely will tell his counterparts (in Russia) that an amendment will be made (here) so that only a sovereign guarantee would be sufficient to execute the purchase orders doing away with the necessity of bank guarantees," an MoD official noted. 

The main defense project that was affected because of the bank guarantee issue was the Oct. 2016 $5 billion deal on Indo-Russian Krivak class frigates. 

Read the full story at DefenseNews

News Report: India’s Light Helicopters Take Maiden Flight, Commercial Production Soon

Close on the heels of the maiden flight of HTT-40 (PT-2), the second prototype of India’s indigenously built single-engine, three-ton light utility helicopter (LUH) made its maiden flight on Monday at its facility in Bengaluru. The flight was conducted without any snag in 22 minutes.

New Delhi (Sputnik) — LUH manufacturer Hindustan Aeronautics Ltd (HAL) has modified the second prototype based on feedback after testing the first prototype on September 6, 2016. Further expansion flights are in progress.

The helicopter has a maximum all-up-weight (AUW) of 3,150 kg, fitted with Safran HE Ardiden-1U engine of 750 KW power, with a range of 350 km and a seating capacity of six passengers plus two pilots. The helicopter will be capable of flying at 220 kmph, with a service ceiling of 6.5 km. The helicopter can operate from sea level to high altitudes of the Himalayas.

News Report: India, Russia Set Up Joint Venture to Make Kamov Multi-Role Helicopters for IAF

India and Russia have incorporated a joint venture company, named India-Russia Helicopters Limited, to manufacture and assemble the much-needed 160 multi-role helicopters for the Indian Air Force (IAF).

New Delhi (Sputnik) — India's Ministry of Corporate Affairs incorporated the India-Russia Helicopters Limited Company on Tuesday.

"This marks the formal creation of the Joint Venture between Hindustan Aeronautics Limited of India and Russian Helicopters and Rosoboronexport of Russia and is a key milestone in the production of Ka-226T helicopters in India with Russian collaboration," a press release from the Indian embassy in Russia said.

Russia's Rostec Corp will own 49.5 percent stake while India's HAL will own the remaining 50.5 percent in the joint venture. Under the deal for 200 Kamov Ka-226Ts, 60 helicopters will be received in fly-away condition from Russia while another 40 will be assembled in India and the remaining 100 will be fully built in India.

Indian Defense Minister Arun Jaitley had said recently that New Delhi and Moscow have been involved in a discussion to set up another manufacturing plant in India but had not said what the product would be.

This story first appeared on Sputnik & is reposted here with permission.

News Story: India, Russia make progress toward Ka-226T helicopter production

Kamov Ka-226T (Image: Wiki Commons)

By: Vivek Raghuvanshi

NEW DELHI — India and Russia have drawn the road map for the joint production of Kamov Ka-226T light utility helicopters in the South Asian country, kick-starting the $1 billion program. 

"With the road map now in place, the production of Kamov 226T helicopters has formally taken off," said a top executive of the state enterprise Hindustan Aeronautics Limited, which was the production agency nominated by the two nations. 

Gopal Sutar, the chief of media communications at HAL, said: "The helicopters are to be produced through a joint venture company as per the intergovernment agreement between the two countries in October 2016, and the road map for the acquisition is finalized." 

The joint production of the helicopters in India now awaits formal approval by Russian President Vladimir Putin, which will lead to the new production entity Indo-Russian Helicopters Private Limited. 

Read the full story at DefenseNews

News Story: US sanctions are affecting India-Russia defense deals - MoD source

By: Vivek Raghuvanshi

NEW DELHI — U.S. sanctions imposed on Russia are affecting Indian weapons procurement because Moscow is unable to furnish bank guarantees required by Indian law, according to a source in the Ministry of Defence, who spoke on condition of anonymity.

The Obama administration imposed sanctions against Russia in 2014 in concert with Europe to punish Russian President Vladimir Putin for his annexation of Crimea.

"Payment for half a dozen defense deals have been stuck (on account of US sanctions against Russia)," the MoD source said.

The source refused to provide details of the affected weapons programs due to the nature of their sensitivity, but the source did warn that additional defense deals between India and Russia could be affected in the future as a result of U.S. sanctions and the inability of Russia to furnish required bank guarantees. 

In making the case for changes to Indian law, Ruslan Pukhov, director of the Moscow-based Centre for Analysis of Strategies and Technologies, said: "There are always exceptions from any rules. The question is whether Indian authorities are ready to do it for Russians. 

"To best of my knowledge it is not a problem at all. Europeans and Israelis are ready to integrate their components and sub-systems for all Russian platforms for India. Since India is a biggest democracy in the world. They do it even for countries like Algeria," Pukhov added. 

"As for the situation with banks, India, indeed, fears that the Americans might impose sanctions on them [banks] but I don’t have the slightest doubt that this obstacle can be overcome," he told Russian news agency TASS. 

Read the full story at DefenseNews

News Report: Russian Helicopters to Demonstrate Mi-17 Repair Process to Indian Specialists

Indian Mi-17 Helicopter

According to the company’s press service, Russian Helicopters will familiarize Indian aviation specialists with the Mil Mi-17-1V helicopters repair techniques at Novosibirsk Aircraft Repair Plant.

MOSCOW (Sputnik) – Russian Helicopters will familiarize Indian aviation specialists with the Mil Mi-17-1V helicopters repair techniques at Novosibirsk Aircraft Repair Plant (NARP), the company’s press service said in a statement Thursday.

"The delegation of Indian aviation specialists came to Novosibirsk Aircraft Repair Plant, part of Russian Helicopters, in the end of February 2017. The aim of their visit is the inspection of repair process of Mil Mi-17-1V helicopters, which is carried out on NARP," the statement said.

News Story: India, Russia close in on chopper deal - report

Kamov Ka-226T - NATO name: Hoodlum (Image: Wiki Commons)

Russia is close to finalising a deal to build helicopters in India, an executive said Tuesday, a move that would boost Narendra Modi's ambitions to manufacture defence hardware locally.

India is the world's top defence importer and is seeking to revamp its Soviet-era military equipment against an increasingly assertive China.

Prime Minister Modi has been encouraging foreign firms to work with local contractors under a "Make in India" campaign, to reduce India's reliance on costly imports.

Russia and India first flagged plans for a joint partnership to build Kamov helicopters -- a twin-engine chopper used for military and civilian purposes -- in 2015.

But India has increasingly turned to the United States and France, rather than traditional ally Russia, for its military hardware in recent years.

Two Russian firms -- Russian Helicopters and state-owned arms exporter Rosoboronexport -- are on the brink of finalising a joint venture with India's state-run Hindustan Aeronautics Limited, according to reports.

Viktor Kladov from Rostec, the parent company of Rosoboronexport, said the joint venture would be completed in "one to two months".

Read the full story at SpaceDaily

News Story: Resurrection of Indo-Russia Ties Seen in $10B Defense Agreement

S-400 Tiumf (Image: Wiki Commons)

By: Vivek Raghuvanshi

NEW DELHI — The defense agreement made between India and Russia on Saturday is being viewed by some analysts as a resurrection of a strategic partnership between the two countries following a four-year gap in defense ties. 

However, this spurt in big-ticket defense programs, worth a total of $10 billion, with Russia after 2012 is not being taken as a course correction by India away from United States, with whom the ruling Modi government warmed up after coming to power in mid-2014. 

"There is no correction away from USA. India has a strong and long-standing defense partnership with Russia, which gets reinforced periodically," said Vivek Rae, the Indian Ministry of Defence's (MoD) former director general of acquisition. "Russia has been a reliable friend and partner for several decades. This is a strategic partnership which has stood the test of time." 

The agreement is for the purchase of $5 billion worth of S-400 Tiumf air defense systems, four stealth frigates for $4 billion and the formation of a joint venture to manufacture Kampov-226T light  

utility helicopters in India worth more than $1 billion. 

An MoD official said most of the negotiations for the S-400 systems are complete and should be among the first contracts to be inked in the near future. The final contracts for the defense programs are likely to be finalized in the next six months, the MoD official added. 

The last major defense deal between India and Russia was signed in 2012, which included a $1.6 billion deal for India to purchase 42 Sukhoi Su-30MKI fighter jets and a $1.3 billion contract for the delivery of 71 Mi-17 V5 helicopters. 

Read the full story at DefenseNews

News Story: India, Russia Sign Defense Intergovernment Agreements

S-400 Tiumf (Image: Wiki Commons)

By: Vivek Raghuvanshi

NEW DELHI - India and Russia on Saturday signed three defense intergovernmental agreements for the purchase of S-400 Tiumf air defense systems and four stealth frigates, and the formation of a joint venture to manufacture Kampov-226T light utility helicopters in India. 

The formal contracts and delivery schedule will be announced later. 

During the bilateral meeting in Goa, the two sides did not make any announcement on leasing of nuclear submarines, new version of BrahMos cruise missile or joint development and production of a fifth generation fighter aircraft that have also reportedly been a part of discussions between the countries. 

Read the full story at DefenseNews

News Story: India, Russia to Announce Ka-226T Helicopter Joint Venture

Kamov Ka-226T at MAKS-2009 (Image: Wiki Commons)

By: Vivek Raghuvanshi

NEW DELHI — India and Russia are to announce a joint venture agreement to produce the Ka-226T light utility helicopter on Oct. 15, the first day of this weekend's meeting in Goa, India, of the association of Brazil, Russia, India, China and South Africa, known as BRICS. 

Senior officials with the Indian Ministry of Defence (MoD) provided some details on the matter, however senior diplomats with the Russian Embassy here remained tight-lipped about the inner workings of the deal.

Senior MoD officials confirmed that India and Russia will sign a shareholders agreement for the joint venture (JV) in manufacturing K-226T helicopters in India. Under the agreement, slated to be inked during Russian President Vladimir Putin's visit during the BRICS meeting, Indian state-owned Hindustan Aeronautics Limited (HAL) will own 50.5 percent equity stake, and Russian Helicopters and Rosoboronexport will hold the remaining 49.5 percent equity.

India will acquire 200 of the light utility helicopters (LUH), out of which it will buy 60 helicopters in fly-away condition from Russia while another 40 will be assembled in India and the remaining 100 will be fully built in India, said an MoD official.

Read the full story at DefenseNews

News Story: Source - India Needs $233B in Next 11 Years To Buy Weapons

By: Vivek Raghuvanshi

NEW DELHI — India needs $233 billion to meet its weapons and equipment requirements in the next 11 years, according to the Long Term Integrated Perspective Plan (LTIPP) for 2012-2027, an Indian Ministry of Defense (MoD) source has revealed. However, there's division over whether India will be able to meet the funding need. 

The list of the weapons and equipment needed for India's armed forces translates to a cost of $233 billion. According to the MoD source, the money will come from the country's procurement budget, Capital Head. 

To meet the funding target, India will need to increase defense spending at an annual rate of more than 10 percent. 

The funding allocation in the Capital Head for 2016-2017 is $37.94 billion, which works out to an increase of 2.3 percent in rupee terms against last year's funding allocation. However, in US dollar terms, it was a 10 percent drop compared to last year's allocation of $42.1 billion because of the depreciating Indian rupee against the dollar.

Read the full story at DefenseNews

News Story: Fund Shortage and Depreciating Rupee Hit Key IAF Programs

Pilatus PC-7

Vivek Raghuvanshi

NEW DELHI — The Indian Air Force (IAF) faces a severe resource crunch as 11 key defense projects await signing despite their finalization, according to IAF officials speaking on the condition of anonymity.

The rising US dollar against the Indian rupee and lower budget allocations by the ruling Narendra Modi government are the main causes of the squeeze, the IAF officials say.

There is a shortage of $1.13 billion in the Capital Head account, which is reserved for buying new weapons, and $420 million in the Revenue Head account, which is used to pay for military salaries and day-to-day expenses, including ammunition and stores.

The IAF projects that await signing before they can be funded include  procurement of 56 new aircraft to replace the aging Avro transporters, 48 medium-lift helicopters, six midair refueling tankers, 20 Hawk advance jet trainers and 38 Pilatus basic trainers.

Read the full story at DefenseNews

Editorial: Back From the Dead - India and Russia Revive Talks Over Fifth Generation Fighter Jet

By Franz-Stefan Gady

New Delhi and Moscow have restarted cost negotiations over the Sukhol/HAL Fifth Generation Fighter Aircraft.

A high level Russian delegation arrived in New Delhi this week to recommence negotiations over the much-delayed Sukhol/HAL Fifth Generation Fighter Aircraft (FGFA) project, or as it known in India, the Perspective Multi-role Fighter (PMF), the Times of India reports.

“We have got the clearance to restart the talks. Accordingly, a Russian team is here and cost negotiations began yesterday,” said a source within India’s Ministry of Defense.

The Russian delegation is also negotiating with state-run Hindustan Aeronautics Limited (HAL) over joint production of 200 Kamov 226T light transport helicopters under the “Make in India” initiative and estimated to be worth $1 billion.

During the annual India-Russia summit, which took place in late December 2015 in Moscow, Russian President Vladimir Putin and Indian Prime Minister Narendra Modi failed to resolve the impasse over the PMF project.

Read the full story at The Diplomat

Editorial: Has (Yet) Another Indo-Russian Weapons Deal Gone Awry?

Kamov Ka-226T (Image: Wiki Commons)

By Franz-Stefan Gady

India and Russia are both struggling to meet the “Make in India” requirements in a new defense deal.

While Indian Prime Minister Narendra Modi and Russian President Vladimir Putin have signed a government-to-government deal for the procurement of 200 Kamov-226T last December, New Delhi and Moscow have difficulties in meeting the so-called “Make in India” obligation, which requires that 50 percent of the helicopter needs to be built in India, according to Indian media reports.

One of the major problems appears to be that Moscow has only accepted to indigenize Russian components of the light multirole helicopter, assembled by Russia’s sole rotorcraft designer Russian Helicopters. However, for example, the helicopters twin Arrius 2G1 engines –which, according to The Business Standard, constitute one third of the aircraft’s costs–are made by French helicopter maker Turbomeca. Various other component parts of the Kamov-226T have also been imported by Russian Helicopters from abroad, all of which would not fall under indigenization requirements outlined in the contract.

The burden has now fallen on India’s state-owned Hindustan Aeronautics Limited and other Indian manufacturers to negotiate with third-party vendors to build individual hardware for the Kamov-226T in India. “We will have to work with third-country suppliers and co-co-opt them into the indigenization effort to meet the ‘Make in India’ goals,” according to sources within HAL HAL and Russian Helicopters agreed in late December 2015 to form a joint venture, in which the former will have a 50.5 percent stake and the latter a 49.5 percent share.

Read the full story at The Diplomat

Editorial: New Momentum for India-Russia Relations?

By Sumit Kumar

In a state visit, Indian PM Narendra Modi gives the relationship a boost.

In late December, Indian Prime Minister Narendra Modi made his first state visit to Russia to take part in the 16th annual bilateral summit. Modi and Russian President Vladimir Putin used the summit to review bilateral ties across a number of areas, including security, trade, commerce, science and technology, defense, and energy. Talking about the relationship, Modi described Russia as “a strong and reliable friend,” while Putin expressed his happiness about “developing the privileged strategic partnership between India and Russia.”

This rhetoric, along with the signing of sixteen agreements, is being seen as very significant in sustaining and expanding India-Russia ties. One major step taken is a deepening of India’s defense partnership with Russia. On the eve of Modi’s visit to Russia, the Indian government announced the purchase of five S-400 supersonic air defense systems from Russia, costing around $6 billion, while Modi sealed some other important defense deals with Putin in Moscow. For instance, the two sides agreed that the Kamov 226 helicopter would be manufactured in India.

These defense agreements are important for both countries. India’s defense ties with the erstwhile Soviet Union and later with Russia were a major pillar of bilateral ties. However, in recent times there has been deep strain in the relationship. Russian strategists and diplomats have made much over the loss of some Indian defense deals to the U.S., Israel and other countries. On the other hand, Russia’s failure to deliver the aircraft carrier Admiral Gorshkov on time annoyed New Delhi because it forced India to pay Russia $2.34 billion, against the originally agreed price of $947 million. Russia’s decision to supply Pakistan with the Mi-35 Hind attack helicopters and Klimov RDP93 engines for the JF-17 has also alarmed the Indian defense establishment.

Read the full story at The Diplomat

Editorial: In Russia, Indian PM Looks to Close Major Defense Deals

Image: Flickr User - MEAphotogallery

By Ankit Panda

Narendra Modi’s state visit to Russia could result in a bevy of important defense deals.

Indian Prime Minister Narendra Modi arrived in Russia on Wednesday, where he will spend two days meeting with senior Russian officials, including Russian President Vladimir Putin. The visit will cover the gamut of the India-Russia bilateral relationship, touching on economic, defense, energy, and counter-terrorism. Notably, Modi is expected to confirm India’s sale of Russia’s advanced S-400 Triumf missile defense system. India will become the second buyer of the advanced platform after China. The visit marks Modi’s first state visit to Russia since becoming India’s prime minister in May 2014. Modi previously traveled to Russia for the Shanghai Cooperation Organization and BRICS Summits over the summer in Ufa. Last year, Putin traveled to India for a bilateral visit, signing billions in agreements on trade and nuclear cooperation.

The S-400 deal with Russia is significant in many ways. It will represent the largest Indian weapons deal with Russia since 2001, restoring Moscow’s position as India’s top arms provider—a position it had held since the days of the Soviet Union but has recently conceded to the United States. Additionally, as I noted in an earlier piece for The Diplomat, the S-400 is an eminently capable missile defense system, among the best in its class in the world. Adding the S-400 to India’s arsenal will bolster India’s ability to protect against ballistic missiles and bombers from hostile neighbors.

For Russia, India’s continued appetite for defense hardware is a welcome opportunity at a time when western sanctions and drooping oil prices have hurt the country’s economy. The Russians no doubt took note when, last year, during Putin’s state visit to New Delhi, Narendra Modi noted that “Russia will remain [India's] most important defense partner.” Echoing last year’s assurances, Modi assured Putin that Moscow would remain India’s “principal partner” in defense, Russian state news reported.

“Russia has been India’s foremost defence partner through decades, accounting for a majority of our defence equipment… Even in the current environment, despite India’s improved access to the world market, Russia remains our principal partner,” Modi told Itar-Tass.

Read the full story at The Diplomat

Industry: Rosoboronexport expects to enhance cooperation with Malaysia

As part of the International Maritime and Aerospace Exhibition, LIMA 2015, to be held from 17 to 21 March on the Island of Langkawi (Malaysia), Rosoboronexport, part of the Rostec State Corporation, will continue to actively promote Russian defense products in Malaysia and other South-East Asian countries.

“We have a good position in the Malaysian market and we look forward to continuing fruitful cooperation. We are ready not only to supply finished products, but also to discuss the issues of establishing joint and licensed production. We will hold talks with virtually all the commanders and senior officers of the Malaysian security and law enforcement agencies, including defense minister and commander-in-chief of the country’s armed forces. We hope that military-technical cooperation between the two countries will increase in the coming years,”- said Vladimir Ereschenko, Head of Rosoboronexport’s Regional Department, who leads the company’s delegation at the exhibition.

News Story: Indian Firms Set Teams for Helicopter Tender

By Vivek Raghuvanshi

NEW DELHI — In India's first helicopter competition reserved for domestic defense companies, teams have been established between top defense companies Larsen & Toubro with Airbus Helicopters and Tata Advanced Systems with Sikorsky Aircraft to produce a light utility helicopter (LUH).

Other corporate arrangements include Mahindra Defence Systems teaming up with Bell Helicopter and Punj Lloyd with Russian Helicopters. The domestic companies have to respond by Feb. 17 to a request for information (RFI) they received in October to provide the helicopters on a Buy and Make (India) basis in the $2.5 billion tender.

State-owned Hindustan Aeronautics also is negotiating a tie up with Russian Helicopters.

None of the overseas or domestic companies would discuss their partnerships.

A Ministry of Defence official said there is no certainty that the helicopters built by the domestic companies would be cheaper than importing them directly.

Read the full story at DefenseNews

News Story: India, Russia Discuss FGFA, Helo Co-Production

Russian T-50 PAK FA basis for India's FGFA

By Vivek Raghuvanshi

NEW DELHI — A week before US President Barack Obama's visit to New Delhi, Russian Defense Minister Sergei Shoigu held his first meeting with new Indian Defence Minister Manohar Parrikar Wednesday, which included discussions on the co-production of the Kamov 226 light utility helicopter and resolving disagreements over the Fifth Generation Fighter Aircraft [FGFA].

Visiting Russian President Vladmir Putin offered co-production of the helicopter during his talks here Dec. 11 with Indian Prime Minister Narendra Modi, said an Indian Defence Ministry source.

However, the MoD's official release made no mention of possible co-production, and only said, "The two Defense Ministers also discussed possible future areas of cooperation in high technology Defense platforms as well as armament for the three Services."

Read the full story at DefenseNews