News Story: Low-key Aero India 2017 witnessed limited agreements

By: Vivek Raghuvanshi

BANGALORE, India — The aerospace and defense exhibition Aero India 2017 was low-key in terms of business activities, with no major deals signed or Ministry of Defence announcements on the Strategic Partners policy, which has the potential to boost business for the domestic private sector. 

Friday was the expo's final business day, but it remains open Feb. 18 for the general public.

More than 72 fighter aircraft participated at the event in the wake of the runup for a production tender for single-engine fighters for the Indian Air Force; however, the MoD did not announce introduce a road map for the tender. 

Mostly only joint venture agreements and memorandums of understanding were announced between overseas defense companies and Indian entities. Foreign companies partner with domestic businesses to stay connected to the Indian market, which will see all future big-ticket tenders awarded to domestic companies under a much-awaited MoD policy. 

A top MoD official said Aero India 2017 was productive, as it provided a platform to foreign original equipment manufacturers to forge partnerships with domestic defense companies to move forward Make in India defense initiatives. 

Read the full story at DefenseNews

News Story: In Policy Reversal, Private Companies to Build Indian Howitzer

By: Vivek Raghuvanshi

NEW DELHI — Reversing an earlier practice to give big-ticket orders only to state-owned companies, India's first homemade 155mm/52-caliber towed artillery gun, the Advanced Towed Artillery Gun System (ATAGS), will be built jointly by private sector companies. 

"Initially an order of 114 guns worth $350 million will be given next year to the private companies," an Indian Ministry of Defence (MoD) official said. 

The Indian Army has a requirement of more than 1,500 towed guns, and the production order could be worth more than $4.5 billion, a potential boost for domestic private defense businesses. 

The ATAGS is being developed by the state-owned Defence Research and Development Organization (DRDO) in partnership with two private sector firms — Kalyani Group and Tata Power SED. 

"Two ATAGS prototypes have already been made and are under trials. MoD has already projected immediate requirement of 114 guns. The production can start within two years of order placement. With two partners having [their] own production line, [they] can meet the requirement faster," Bhupinder Yadav, a retired Indian Army major general and defense analyst, said. 

Read the full story at DefenseNews

News Story: Kalyani, Saab Seek To Land Indian Air Defense Deal

SAAB RBS 70 in Australian Army service, 2011
(Image: Wiki Commons)

By Vivek Raghuvanshi

NEW DELHI — Saab and India's Kalyani Strategic Systems Ltd. (KSSL) have proposed establishing production facilities to build an Indian air defense system.

The planned joint venture is in anticipation that the Defence Ministry may cancel the original 2010 global tender for a very short range air defense (VSHORAD) system and the Indian Army will issue a fresh tender only to domestic defense companies.

"The joint venture, which will be set up by Saab and KSSL, will handle the main part of production and delivery of these air defense systems to the Indian customer. The production in India will comprise of subsystems and systems for short-range surface-to-air missiles and VSHORAD with the aim to transfer production as well as development knowledge to India," said a Saab executive.

However, the joint venture has not yet been established, the company executive said.

Read the full story at DefenseNews