DSA Alert August-2012

Change of Guard at DSA
r Manvendra Singh, former Member of Indian Parliament (Lok Sabha) was our Editor-in-Chief and provided us the leadership and support during the critical formative years of this magazine. It was entirely due to his untiring efforts that the DSA has emerged as one of India's leading defence and security publications. However with the forthcoming general elections, his political duties are now making increasingly heavy demands on his time and energies. Due to the pressure of these commitments he requested to be relieved of his duties as the Editor-in-Chief. However, at our earnest request he has kindly consented to continue his association with team DSA as our Founding Editor and we are certain that cause of the DSA will remain close to his heart. As a matter of fact I and Mr Manvendra Singh jointly conceptualised and nurtured the dream to project a nationalist viewpoint in the realm of defence and security journalism and together brought it to fruition in the form of Defence and Security Alert (DSA) magazine. He will always be for us, a source of inspiration and strength and we will seek his continued guidance and counsel. He hands over the baton to Maj Gen (Dr) G D Bakshi, our Executive Editor. I on behalf of team DSA wish Mr Manvendra Singh all the very best in his future endeavours and welcome this change of guard. I look forward to DSA scaling newer and greater heights of prestige and popularity under the leadership of Gen Bakshi.
Pawan Agrawal Publisher and CEO
s I have been called upon to devote more time and attention to my political responsibilities, I am reluctantly withdrawing from my active involvement as Editor-in-Chief of DSA. I will however continue to be associated with the publication as Founding Editor and will be happy to contribute in every way possible to the great future that awaits DSA.
I have thoroughly enjoyed my tenure as Editor-in-Chief of DSA and I am happy at the progress the magazine has made since its inception in October 2009. I am sure in our new Editor-in-Chief Gen Bakshi we have a distinguished soldier and an eminent defence and security analyst taking charge of the fortunes of DSA. I am certain under his guidance and scholarly leadership DSA will become the most read and respected defence and security magazine not only in India but globally. I wish him and team DSA the very best.
Manvendra Singh
s the Indian general elections loom around the corner, Mr Manvendra Singh has been called upon to devote increasingly greater amount of his time and attention to his political responsibilities. As such, he wished to be relieved of a share of his duties at the DSA. It is at our earnest request that he has kindly consented to remain associated with us as the Founding Editor. I am personally grateful to him for his stewardship of team DSA. In fact, he has made it one of the leading defence journals of India and I will be hard put to maintain the high standards set by him. We will of course continue to have the benefit of his support and guidance. On behalf of Team DSA, I thank him wholeheartedly for his stewardship and support and we look forward to his continued guidance and patronage.
Maj Gen (Dr) G D Bakshi SM, VSM (retd)

August 2012 Defence AND security alert
publishers view
editor-in-chief
De fence Forces a nd St atec ra f t

"A person who cannot destroy the entire enemy with his allies opens his own doors for destruction" Chanakya
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The country comes first - always and every time.
Vo l u m e 3 I s s u e 11 A u g u s t 2 0 1 2
chairman shyam sunder publisher and ceo pawan agrawal founding editor manvendra singh editor-in-chief maj gen (dr) g d bakshi SM, VSM (retd) director shishir bhushan corporate consultant k j singh art consultant divya gupta central saint martins college of art & design, university of arts, london corporate communications tejinder singh creative vivek anand pant administration shveta gupta representative (Jammu and Kashmir) salil sharma correspondent (Europe) dominika cosic production dilshad and dabeer webmaster sundar rawat photographer subhash circulation and distribution mithlesh tiwari e-mail: (first name)@dsalert.org info: info@dsalert.org articles: articles@dsalert.org subscription: subscription@dsalert.org online edition: online@dsalert.org advertisement: advt@dsalert.org editorial and business office 4/19 asaf ali road new delhi-110002 (India) t: +91-011-23243999, 23287999, 9958382999 e: info@dsalert.org www.dsalert.org
Source:http://www.defence.pk/forums/membersclub/34081-chanakya-quotes.html#ixzz21Yxwkbhr I am surprised to see the above quote of my ideal Chanakya on one of Pakistans defence websites. DSAs mission statement is an eloquent quotation from Chanakyas treasure trove. I wonder if our neighbours have been inspired by DSA! I am sure not many people know that the DSA website is regularly visited by many Pakistani soldiers and officers. The reason is that they very well understand the contemporaneity and relevance of one of Chanakyas many nuggets of statecraft quoted and enshrined in the Indian national ethos hundreds of years back. Yet I have doubts if this wisdom enlightens any of our current policy and decision makers. We keep hearing day in and day out about modernisation of the defence apparatus but the critical point, which is the mindset at the government level, is yet not prepared or, one suspects, capable of conceptualising and implementing. This stasis is what is really hampering the entire modernisation process in the defence forces. Military officers are emotionally attached to their troops and want to ensure that the best weapon systems are available to them to be able to deal with the many security problems confronting the nation but because of the slow process of decision-making in the government they are bound to see their men sacrificing their lives on the borders to safeguard their Motherland. The government has yet to find a way to get past the self-inflicted logjam caused by bans imposed on supplier companies on the basis of malpractices in contractual obligations. We have seen how China and Pakistan, the two major threats to India, have modernised their defence forces over the past 10 to 20 years and it is so pathetic to see that our Armed Forces have been deprived of sophisticated artillery guns over the past quarter century on grounds that kickbacks were paid in the Bofors deal in which one is still not absolutely sure as who was responsible for it. How can we close our eyes and not excel in the modernisation of our defence forces when we very well know that China and Pakistan are spending huge amounts on this. While China has all the money and more for this indulgence Pakistan has been diverting and spending almost the entire foreign aid on its defence expenditures and the major chunk is spent on the modernisation of its forces. I dont see any valid reason for the unnecessary delay in modernising our forces which should be our top priority. Our esteemed contributors have highlighted many facts and the vulnerability scenario of our defence forces in this edition. You will also find a comprehensive research based coverage on the defence procurement and its procedures which could be of great value for the industrial houses in India and abroad who wish to manufacture and supply defence products for the Indian forces. Every defence personnel serving or retired has great concern for the security of the country and its forces and thus instead of mere discussions on this matter of urgency, the government should act very speedily to equip the defence forces with all the best equipment to counter every threat be it nuclear, conventional or asymmetric from our neighbours. I think the government should now follow the edicts of Chanakya and make the Indian Armed Forces strong, well equipped and war ready without losing any more time. We will be celebrating the 65th Independence Day on 15th August and I think this will be the best day to announce a comprehensive policy on defence modernisation. This will be the real salute to the Indian soldiers and the people of India. We at DSA salute each and every defence personnel, serving or retired and all Indians on this Independence Day which commemorates Indias emergence from colonial bondage to freedom. Jai Hind!
prime requisite for the rise of a major power is the capacity to achieve autarky in critical weapon systems. India has been struggling unsuccessfully to attain this autarky for the last six decades. Self-reliance in defence is a vital imperative not just for achieving strategic autarky but also to urgently generate jobs for a rising youth bulge in our demographic profile. By 2026 we will need to generate some 700 million jobs. Off-shoring defence production jobs to USA or France therefore becomes a particularly bad idea in this context. How do we create a vibrant Defence Industrial Base (DIB) in India? Why have we failed to craft one so far? Till date India has passed through three cycles of weapons modernisation. The first one, post independence, saw us spending a measly one per cent of our GDP on defence. This invited the disaster of 1962. The second, post-1962 cycle of modernisation, saw a massive Soviet effort to subsidise our military build-up. It was in this phase that we saw the onset of licensed production in a big way to achieve self-reliance. This was purely an optical illusion. License production as a quick fix did great damage to our in-house Design and R&D capacities. The HF-24 design team, the teams that made our 75/24 Howitzer and 105 mm Field guns were all disbanded and the experience irrevocably lost. Only the Indian Navy retained its Ship Design teams and is today building, rather than buying a new Navy. The Defence Public Sector with its captive customer base felt no need to innovate or carry out any Product improvement or technology development. It failed to carry out any in-house midlife upgrades of the equipment it was manufacturing. The sudden collapse of the USSR in 1990 highlighted the hollowness and fragility of our self-reliance. We went panic buying for spares to keep our Soviet era fleets of jets, tanks and ships going. As it is, most of these were nearing the end of their life cycle. India had to recapitalise its military stock in a major way. The demise of the Soviet Union eclipsed our highly subsidised source of high-tech weaponry. Our own economy came perilously close to collapse in 1991 and we had to divert all our energies in reviving our economy. Our military modernisation had thus to be postponed by over two decades. We are now into our third cycle of military modernisation. Almost our entire capital military stock of the Soviet era is being replaced. Despite all claims of self-reliance, 74 per cent of this capital military stock is being imported from Russia, Israel, USA and France. Our indigenous Public Sector Defence units have not been able to provide even basic replacement of small arms and rookie trainer aircraft. Some 30 years down the line, we will enter the fourth cycle of military modernisation when the capital stock now being inducted will need to be replaced. Will we still be importing all our weapons in 2030-2040? It is a pathetic thought for a self-confessed Regional Power and an aspiring global power. We need to indigenise with a vengeance not just for reasons of Strategic autonomy but even more for reasons of economic well being. We need to create a vibrant Public-Private Partnership in Defence. The dynamism of the Private sector must be harnessed at the earliest. Aged and hierarchical defence bureaucracies of the public sector and DRDO by themselves can never deliver self-reliance. Let us not forget that the Private Sector had, in just 17 years, transformed India from a failed economy to a Trillion dollar plus economy. We need to learn lessons from the Chinese Military-Industrial Complex which is also being corporatised. The simply amazing fact is that the failed state of Pakistan next door has been exporting its small arms and low grade military products to some 30 countries. We must get in the Private Sector. We must revise FDI levels in defence Industry to 49 per cent from the unviable 26 per cent. The Defence Industry needs to be given tax concessions and incentives (on par with SEZ). We must get the brightest and the best for our R&D and Design Teams. The Private Sector will be able to get them easily. We must put in place the Public-Private Partnerships for foreign tie-ups for producing high-tech military equipment for 2030-40 in place Now. We must not waste out the design experience gained in the LCA and Arjun Projects and build on this to design gen-next tanks, ICVs and fighter jets. In the here and now we must invite Private Sector Indian consortiums to produce a family of modern small arms, Future MBTs and ICVs, Medium Transport Aircraft, Tactical and MALE UAVs as also Multi-role Helicopters for the Navy at the earliest possible. The Private Sector is already getting in a big way into the Homeland Security Sector. Why cant it happen in the field of Defence Production? The labyrinth of rules and red tape created by the ponderous Ministry of Defence cannot become an end in itself. The Country needs a DIB not a self-serving and self-perpetuating defence bureaucracy.
disclaimer all rights reserved. reproduction and translation in any language in whole or in part by any means without permission from Defence and Security Alert is prohibited. opinions expressed are those of the individual writers and do not necessarily reflect those of the publisher and / or editors. all disputes are subject to jurisdiction of delhi courts.
defence and security alert is printed, published and owned by pawan agrawal and printed at graphic world, 1686, kucha dakhini rai, darya ganj, new delhi-110002 and published at 4/19 asaf ali road, new delhi (india). editor: manvendra singh.
pawan agrawal
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here is much speculation about the rise of India as a global player, both within the country and outside. Expectations are that the country will grow, in every sense of the word, to claim its place on the global high table. The current economic and political glitches notwithstanding, there is belief that India will find its role, sooner rather than later. Surveys and research papers are produced to underline this expectation. But there are certain fundamentals that have yet to be addressed, let alone overcome, before the country can be considered to have become a world player.
These range from the political, social, economic to the military aspects of being a global power. They are far too many to be discussed and dissected in about 500 words. But for its soft power achievements, India has to go a long way in order to be accepted as a global player. It is important, therefore, to be dispassionate in accepting the shortcomings that prevent India from becoming a world power. Chief amongst which is the role of its military in power projections and power statements. Ever since the disaster of Operation Pawan in Sri Lanka, 1987-90, India as a polity has been chary of discussing the projection of its military power. Granted that the military itself needs to be re-jigged in order to play 21st century power projection roles, but it is largely political deficiencies that prevent India from emerging as a new global power. The political class remains ignorant of military shortcomings, as well the potential of its power.
There is a fundamental defect in the structure and functioning of the Ministry of Defence. Much has been written about this subject. But what remains under-reported and therefore grossly misunderstood, is the importance of a domestic defence industrial base in order for the country to grow as a military power. Defence industry as it currently exists in the country is limited in technology, vision and capabilities. For far too long it has been a preserve of the PSUs and their Ordnance clones. And this is its biggest failing thus far. Even as the people of India globalise and integrate on equal terms with the developed world, the Indian defence sector remains mired in splendid isolation. But for a few technically acceptable items most of the Indian defence industry depends on imports that are assembled in the country and then marketed to the military. This cosy monopoly situation has given the military second rate equipment, at unacceptable prices. The Tatra truck scam is simply the most obvious one. There are many more that are currently happening. The current arrangement is convenient for a few corrupted military men, bureaucrats and politicians. No effort is required to select the best, because that is simply out of reach. So the handout is acceptable and sold as an achievement.
India will never be a world power unless it demonstrates a strong domestic defence industrial base. It is only when the Indian military, on overseas missions, fly, drive and sail in Indian made equipment would the country be regarded as having arrived. Because the original owner of the equipment can simply deny India permission from using its equipment outside of the country. Which then means the Indian military is vulnerable to international vendors and their political authorities. This is an unacceptable situation for a country poised to play a greater global role. The sooner this is resolved the better it is for Indian enterprise, innovation, the economy and its military might.
manvendra singh
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contents
Defence Industrial Base Special Issue August 2012
An ISO 9001:2008 Certified Magazine
Vo l u m e 3 I s s u e 11 A u g u s t 2 0 1 2
A R T I C L E S defence production: enhancing public-private cooperation 08
Lt Gen Kamal Davar PVSM, AVSM (retd)
buyer to a builders Indian military

Vice adm Barry Bharathan (retd)
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crafting a vibrant defence industrial base for India

private sector and development of a vibrant defence production sector

Maj Gen (Dr) Mrinal Suman AVSM, VSM (retd)
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defence industry reforms: aviation

Air Vice Marshal A K Tiwary VSM (retd)
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defence procurements, policy, procedure, process and practice: an industry perspective

Cmde Sujeet Samaddar, NM (retd)
incubating technologies today for a vibrant DIB tomorrow

Rear Adm (Dr) S Kulshrestha (retd) Brig Rahul Bhonsle (retd)
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fast track indigenisation strategy for India naval and merchant ship building: an imperative for a rising power like India to add clout to India's industrial rise
Cmde Ranjit Bhawnani Rai (retd) Dr Rajiv Nayan
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Indias defence industry base 67 finding nemo - can India ever come up with its own defence industrial base?
Pathikrit Payne Cecil Victor
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C O L U M N S radicalization in prisons Dr Rupali Jeswal
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F E A T U R E S book review: the fertile soil of jihad
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neither here nor there
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making smart procurement decisions Dr Vivek Lall
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defence industrial base
TIME TO TRULY SYNERGISE
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Lt Gen Kamal Davar PVSM, AVSM (retd) The writer is a distinguished soldier having served in all theatres of operations in his 41 years of service. A veteran of the 65 and 71 operations, he was wounded in action in the 1965 ops. Was the first armoured corps officer to be specially selected to be GOC Ladakh where he implemented many operational and logistical innovations. Has been Chief of Staff of a Corps HQ in Jammu and Kashmir and then as GOC 11 Corps responsible for the defence of Punjab. He was especially selected by the government of India to raise the Defence Intelligence Agency after the Kargil War. After retirement the General writes and lectures on security issues. He is widely known to passionately espouse the cause of jointness in the Indian Armed Forces. As the first DG, DIA, many intelligence initiatives including abroad were taken by him.
odernisation of its Armed Forces and the timely induction of critical technologies and state-of-the-art equipment in them is sine qua non for National security. This is, however, only possible if the country and its government step aside from the beaten track, courageously infuse a synergistic approach between its non-performing public sector and the grossly unutilised private sector besides encouraging suitable defence majors from friendly foreign countries across the world to set up manufacturing facilities in India. Defence production was, like in most critical areas, entrusted to the public sector as enunciated in the Industrial Policy Resolution of 1948. The first Defence Procurement Policy (DPP) was enunciated in 2001 with much fanfare permitting private sector participation in the defence sector. This major policy initiative encompassed 100 per cent participation by the private sector with foreign direct investment (FDI) permissible up to 26 per cent subject to security clearances and licensing. The cap of 26 per cent has deterred the inflow of FDI. The Original Equipment Manufacturers (OEMs) were not keen to invest and share critical technologies in a joint venture (JV) where they have only a 26 per cent stake with no significant control over their intellectual property, strict capacity and product constraints, no purchase guarantees, no access to exports for other markets and a perceived unfair advantage to the public sector! In respect of all contracts above Rs 300 crore, 30 per cent offsets have to be provided by the foreign supplier, that is, specified goods and services to the tune of 30 per cent of the value of the contract have to be procured from the Indian industry. 17 offset contracts have been signed so far with a value of US$ 4.279 billion however most of these offset projects are under implementation and the correct picture will emerge only later. A modest beginning has been made by the government in the Make category where two major programmes, the Fighting Infantry Combat Vehicle (FICV) and the Tactical Communication System (TCS) have been opened to both the private and public sectors to compete in showcasing their products for development and subsequent trials. Hopefully this will result in a level playing field.
DEFENCEPRODUCTION:
ENHANCINGPUBLIC-PRIVATE
COOPERATION
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PERSPECTIVE PLANNING
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Vice Adm Barry Bharathan (retd) The writer is former Vice Chief of Naval Staff. He also served as Indian Naval Attache in Washington DC, USA.
here should be long term integrated, indigenisation perspective plans similar to military plans. Creation of a Military Industrial Commission with expertise from all entities and empowered to monitor self-reliance standards, performance and progress should become a mandate for the Cabinet Committee on Security. Import imperatives are inescapable till we become robustly indigenised in combat equipment, systems and support logistics. Imports can be cost effectively optimised through collegiate decision making pre-audited acquisition processes. This needs an integrated "Civil-Military" approach with mandated capability assessed procurement. The bureaucracy and the military must be unified to produce time and cost conscious, accountable practices.
Buyer to a Builders Indian Military
MoD Organisation
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LCA Tajas
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PUBLIC-PRIVATE PARTNERSHIP
CRAFTING A VIBRANT
DEFENCE INDUSTRIAL BASE
FOR INDIA
stablishing a vibrant DIB in India is an imperative not just for reasons of Strategic Autarky but also to provide urgently needed Jobs for our rising demographic youth bulge. The very scope and scale of this imperative is little understood in our country. No viable DIB can be established in India without a vibrant Public-Private partnership. The License Production route gave us an optical illusion of self-sufficiency. The DPSUs simply failed to innovate and even improve upon the products they were producing under license. They were not able to do any continuous technology development nor do midlife upgrades on their own. We have so far seen three cycles of military modernisation. The first one, post independence, saw us spending a measly one per cent of our GDP on defence. The second cycle was heavily subsidised by the Soviet Union. The current third cycle is almost entirely premised upon foreign imports - a sad reflection upon our failure to craft a modern DIB. The Fourth cycle will come some two / three decades down the line when the capital military stock being inducted now will have to be replaced. It would be a tragedy if we still have to bank on imports then. To indigenise truly, we will have to visualise the products we would need then and commence preliminary design and R&D work now in terms of Public-Private Partnerships with suitable foreign tie-ups at the earliest feasible. We must exploit the potential of Disruptive technologies.
Maj Gen (Dr) G D Bakshi SM, VSM (retd) The writer is a combat veteran of many skirmishes on the Line of Control and counter-terrorist operations in Jammu and Kashmir and Punjab. He subsequently commanded the reputed Romeo Force during intensive counter-terrorist operations in the Rajouri-Poonch districts. He has served two tenures at the highly prestigious Directorate General of Military Operations. He is a prolific writer on matters military and non-military and has published 24 books and over 100 papers in many prestigious research journals. He is also Executive Editor of Defence and Security Alert (DSA) magazine.
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LEVEL PLAYING FIELD
Maj Gen (Dr) Mrinal Suman AVSM, VSM (retd) The writer heads Defence Technical Assessment and Advisory Service (DTAAS) of Confederation of Indian Industry (CII). He did MSc in Defence Studies and Doctorate in Public Administration. He commanded an Engineer Regiment in the most hostile battlefield in the world i.e., the Siachen Glacier. He was awarded a gold medal for being 'the most outstanding engineer of the year'. He was the first Technical Manager [Land Systems] when the newly created Acquisition Wing was established in the Ministry of Defence in 2001. He has been closely associated with the evolution and promulgation of the new defence procurement mechanism.
highly insightful article on the actual status of the Holy Grailof a DIB in India. Till the opening of the production of components, assemblies and sub-assemblies to the private sector in 1991, defence industry remained the exclusive preserve of the public sector. By 2002, the private sector had emerged as a vibrant and dynamic force, especially in information technology, service sector and manufacturing fields. On the other hand, the public sector entities had stagnated and failed to deliver. Defence production was opened to the private sector in January 2002 with 100 per cent private equity with 26 per cent Foreign Direct Investment (FDI). The very fact that the proportion of defence imports has increased from the erstwhile 70 per cent to close to 74 per cent during the last decade attests to the failure of the current dispensation. The Kelkar Committee, constituted in 2004, had made many commendable recommendations. These seem to have fallen by the wayside. The Udyog Navratnas are yet to be identified. There is a total absence of an effective institutionalised interface between MoD, the services and the private sector. Resultantly, the private sector continues to be a peripheral player. Indias much overrated Defence Procurement Procedure (DPP) does not include a single word about the promotion of the private sector. All policy provisions are deliberately tweaked to perpetuate preferential treatment of the public sector. For example, to prohibit the private sector from participating in the Rs 10,000 crore Tactical Communication System, a new category called Make by DPSU was deceitfully invented. It is time India recognises the technological prowess of the private sector. The objective of achieving self-reliance in defence production will remain a pipedream unless the immense potential of the private sector is duly harnessed.
Private Sector and Development of a
Vibrant Defence Production Sector
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LEVEL PLAYING FIELD
Illustration: Harnessing potential of Public and Private Sectors
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INDIGENISATION
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Air Vice Marshal A K Tiwary VSM (retd) The writer commanded a MiG-29 Squadron in late 80s. His various command and staff appointments like Chief Operations Officer at a major Wing, operational planning at Command level, Director Concept Studies at Air HQ, Command of a major flying base, Head of the Training Team (Air) at Defence Services Staff College and Senior Directing Staff (Air) at National Defence College have conferred a rich practical experience. The air staff course at DSSC Wellington (TN), Command and Air War Course at the Air University, Maxwell Airbase, Montgomery (USA), all inducted and accelerated his interest in air war studies. After premature retirement he now flies as Commander on Boeing 737-800 NG.
n insightful article on reforms needed to promote indigenisation for the Air Force requirements. The writer suggests that the responsibility for Indigenisation should be completely vested with IAF. DGAQA should play the advisory role to coin specifications and schedules. DGAQA should be fully responsible for quality control. IAF should be authorised to task DRDO, PSUs and Private Industries for import substitution. A National Policy should be formulated to encourage Indigenisation and Import substitution by Private Industry and Academic Institutions by providing: Tax holidays in substantial measure, Finance Import substitutes and partake development cost, Grant export license, Allow transfer of technology to civil sector and provide export market information. An R&D Group should be formed in IAF with SDI, ASTE, ADE, CABS and ASIEO as constituents.
DefenceIndustryReforms:Aviation
The direct linking of industry with user calls for some organisational structure to be created within IAF, to interact with the DRDO Labs, PSUs and private sector to catalyse and accelerate the pace of indigenisation. Most importantly, the responsibility of indigenisation cannot continue to be vested with TC Aero or DGAQA particularly for aviation items. Indigenisation of any such item, will demand, a day to day and sustained interaction between the user and the prospective vendor
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CHALLENGES AND OPPORTUNITIES
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Cmde Sujeet Samaddar NM (retd) The writer retired as the Principal Director Naval Plans. He served NOVA Integrated Systems - A TATA Enterprise as Vice President (Operations) until October 2011. He is presently Director and CEO, ShinMaywa Industries India Limited.
n invaluable article that provides in-depth research and insights into the defence Procurement Process, Procedures and Practice and provides an industry perspective. The writer contends that the way forward is to promote the Buy and Make Indian procedure to be the default procedure. Buy Global acquisitions should be the last resort as the MoD and the Indian regulatory framework leak like a sieve in the monitoring of offset contracts and no real capacity is being built through this process. On the other hand in Buy and Make Indian categorisations, foreign OEMs will have no choice but to engage with Indian industry, both DPSUs and Private, to win projects in India. Since these are competitive no Indian Prime will ever accept loading the commercials with ToT costs as that would be lose-lose for both foreign OEM and Indian Prime. Therefore, the Non-recurring Expenditure burden would have to be mostly borne by the foreign OEM and hence the induction of technology would be cheaper and faster. Forming JVs with Indian partners will build Indian capacity and open the route for India to become part of the global supply chain for the aerospace and defence industry. This would also promote Indian industry to innovate, something it cannot do as a mere offset partner.
Defence Procurements, Policy,
Procedure, Process and Practice:
An Industry Perspective
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Factor Prime Contractor Accountability for Product Support National Vision Business Model Termination Brand Ownership Valuation Sustenance
Licensed Production Model as (Buy and Make with ToT) OEM OEM
JV / Sub-contract Model (Buy and Make Indian) Indian JV / SPV Indian JV/ SPV
Short Term no capacity building as driven partner Royalty and License Fee One Off and at discretion of OEM OEM As an OEM Product. Manufactured Under license from OEM Short and dependent upon Product life cycle Confined and limited to immediate Business opportunity on pure financial terms No scope as LP may be competitor to OEM. Offsets may not go to LP. ToT extremely limited and contractually driven Su30MK; AJT
Long Term genuine capacity building through participation as driving partner Joint Revenue Generation for Growth and profit sharing through dividends with investments Not possible due contractual and business commitments Joint with Indian Industry Partner (IIP) Branded as a Joint OEM-IIP Product. Longer sustenance and for more products, including Design and Engineering to meet India specific requirements Larger and more comprehensive, stable and sustained relationship 50 per cent indigenous content and in the interest of both companies to be cost and technologically competitive to do utmost to reduce production cost and increase technical features for second sale to exiting customer or open new markets LPD: Radars for the Indian Navy
Relationship
Indigenisation
Precedence
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PLACES OF VULNERABILITY
n Prisons and Corrections we need out of the box thinking and methodology to capture and hold, analyze and neutralise the process which leads an inmate to Radicalization, to violent extremism. Patrick T Dunleavys book The Fertile Soil of Jihad paints a coherent picture of the Radicalization process in the prisons. Prisons are places of vulnerability highly unsettling environments in which individuals are more likely than elsewhere to explore new beliefs and associations. An understanding is needed to capture the groups and individuals, operations and behaviour within the prison walls. To detect, markers for conversion and construction of prediction maps of capabilities, inside and outside the prison walls. Critical observation of movement needs to be mapped, of cell-to-cell, zone-to-zone.
Radicalization in Prisons
The columnist is an Intelligence and Terrorism Analyst, Clinical Psychologist and Clinical Hypnotherapist based in South-East Asia. She has also received training in specialsed areas including counter-terrorism, intelligence and tactical operations. She specialises in cognitive learning processes and neural pathway response and how these factors apply to specialised trainings. She is an expert in the field of non-verbal micro and macro expression for deception and detection and also using non-verbal assets for psychological self-assessment in conjunction with Emotional Intelligence to enhance the human mind, personality, image and spirit. She is a member of ICPA (International Corrections & Prisons Association), IACSP (International Association for Counter-Terrorism and Security Professionals) and a member of APA (American Psychological Association), APP (Association of Professional Psychologists), UK Certified Hypnotherapist and General Hypnotherapy Register.
Dr Rupali Jeswal
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DISRUPTIVE TECHNOLOGIES
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Rear Adm (Dr) S Kulshrestha (retd) The writer has held the post of Director General Naval Armament Inspection at the NHQ prior to his superannuation. He is an ardent exponent of indigenisation and self-reliance in the field of military weapons.
he Indian Navy's efforts at indigenisation of naval technologies, over the past five decades have resulted in building of nearly 80 per cent of warships within the country, in its four Defence Public Sector Undertaking (DPSU) shipyards. At present, Indian Navy has placed orders for 47 warships with shipyards, 44 of which are being built in Indian shipyards and is planning to induct at the rate of five to seven ships a year over the next five years. The Navy has also been encouraging the entry of private sector into arms development. The Arihant project is a good example of publicprivate cooperation in defence production. While the Navy is proud to be a builders navy the fact remains that the shipyards still import gas turbines, engines, gear boxes, hydraulic systems, sensor and weapon packages etc. which take away between 75 per cent to 55 per cent of the cost of the ship to foreign vendors. The writer makes a strong case for developing and fielding Disruptive technologies and questions the value of Offsets in creating a DIB.
Incubating Technologies Today For
A Vibrant DIB Tomorrow
1. Creating a Vibrant Domestic Defence Manufacturing Sector A CII-Boston Consulting Group report 2012. 2. ibid 3. Ibid.
4. Brauer Jurgen and Paul Dunne. Arms Trade Offsets and Developments June 2005. 5. ibid
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DISRUPTIVE TECHNOLOGIES
6. Baskaran A. The Role of Offsets in Indian Defence Procurement Policy in Arms Trade and Economic Development: Theory, Policy and cases in Arms Trade Offsets. Jurgen Brauer. New York. NY: Routledge 2004. 7. ibid 8. Keefe, John C. Disruptive Technologies for Weapon Systems: Achieving the Asymmetric Edge on the Battlefield. The WSTIAC Quarterly 7. No 4: 1-5.
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STRATEGIC AUTONOMY
Brig Rahul Bhonsle (retd) The writer is an army veteran presently Director of Sasia Security-Risks.com Pvt Ltd, a South Asian security risk and knowledge management consultancy. His most recent book is, "Securing India: Assessment of Security and Defence Capabilities".
ndia had a head start vis a vis China as far as indigenous defence production is concerned with a vast base of Ordnance Factories which kept Commonwealth forces going during the Second World War. Today, despite pious protestations to the contrary, we are the biggest importer of arms while China has made impressive strides in indigenisation. There is unlikely to be any change in status of indigenisation at least till the end of 14th Five Year Plan (2022-2027) unless effective remedial measures are undertaken now. This would also imply that strategic autonomy will remain elusive for India till 2030 or so. This cannot be and should not be accepted. The writer advocates the clear enunciation of a strategy for indigenisation and synergisation of the efforts of various ministries, the Armed Forces, the academic institutions and the DRDO.
FastTrackIndigenisation
StrategyforIndia
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STRATEGIC AUTONOMY
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PRIORITISATION
T
Cmde Ranjit Bhawnani Rai (retd) The writer is a former Director Naval Intelligence and Director Naval Operations. Presently he is Vice President of Indian Maritime Foundation, New Delhi.
he Navy has claimed it is becoming a Builders Navy but only on the back of PSUs and the nation needs to be a shipbuilding nation as in the past. All shipyards have recently received licenses to build warships and have inadequate civil orders but for shipbuilding to survive and thrive in this economic downturn the Ministry of Defence will have to open the competition and not nominate orders to its PSU yards if India is to gain as a shipbuilding nation. Indigenous shipbuilding which boosts the nations industrial base and provides widespread employment is an imperative. Regrettably, after Independence shipbuilding along with aviation were classified as Strategic Industries and private sector was denied inroads into this sector which policy lasted till the 1980s and is still subject to licensing. Historically, maritime nations have risen with shipbuilding and industrialisation at the core of their economies to become exporters of ships and ancillary equipment. The Indian Navy even issued a publication to revitalise Indian shipbuilding in 2005 and proposed a Maritime Commission to co-ordinate efforts, but only progress has been made to encourage warship building and FDI in private shipbuilding is awaited and even joint ventures have been delayed. The Public Sector defence shipyards have cornered 36 of the current 42 warship and Coast Guard OPV orders, worth Rs 42,000 crore at costs higher than normal. Indigenous shipbuilding which boosts the nations industrial base and provides widespread employment is an imperative.
NAVAL AND MERCHANT SHIPBUILDING:

ANIMPERATIVEFORARISINGPOWERLIKEINDIA TOADDCLOUTTOINDIA'SINDUSTRIALRISE
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PRIORITISATION
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PERFORMANCE-BASED LOGISTICS
Making Smart Procurement Decisions

ife Cycle Costing (LCC) is a tool which empowers the acquisition / procurement managers to make more informed decisions by enabling them to incorporate costs and benefits that occur over the lifetime of a product into their procurement decisions. To mitigate LCC evaluation challenges, the next step would be to move towards a Performance-Based Logistics (PBL) approach. The significance of PBL is that the OEM / supplier is compensated not on promise of performance nor on its cost: compensation is based on the actual performance of the product. PBL was introduced by the US Department of Defence (DoD) in 2001 for weapon system acquisition and logistics management. PBL was made mandatory the same year - its initial guidance was promulgated by the office of Secretary of Defence. The potential annual savings to the US DoD just from reduced inventory holding and transportation is estimated to range from US$ 2.8 - 3.7 billion annually.
The columnist is President and Chief Executive Officer, New Ventures, Reliance Industries Limited and Distinguished Fellow, Observer Research Foundation. Earlier he was Vice President and Country Head, Boeing Defence Space and Security and had also served as Managing Director of Boeing Commercial Airplanes in India. Prior to Boeing he worked for Raytheon and with NASA Ames Research Center in various multidisciplinary engineering fields. He has his PhD in Aerospace Engineering from Wichita State University in Kansas and his MBA from City University in Washington. He served as Chairman of the Defence Committee of the Association of Chambers of Commerce and Industry of India (ASSOCHAM). He also served as the Chairman, Defence Equipment Committee, AMCHAM and is on the panel of the FICCI Defence Task Force. He had the distinct honour of representing 2,500 companies as Regional President of the Indo-American Chamber of Commerce, the only US-India bilateral chamber. In April 2012, he has been appointed as Chairman of the Indo-US Strategic Dialogue by the Indo-American Chamber of Commerce. The columnist has recently been appointed Co-Chair of the FICCI Homeland Security Committee along with Mr Gopal Pillai, Former Home Secretary, Government of India.
Dr Vivek Lall
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PERFORMANCE-BASED LOGISTICS
EVOLUTION and the way forward
Dr Rajiv Nayan The writer is a Senior Research Associate at the Institute for Defence Studies and Analyses (IDSA), New Delhi since 1993, where he specialises in export control, non-proliferation and arms control. He was a Visiting Research Fellow at Japan Institute of International Affairs, Tokyo, where he published his monograph Non-Proliferation Issues in South Asia.
uring the British period, ordnance factories were established to do some military related work. To manufacture guns and ammunition, the first ordnance factory was set up at Cossipore in 1801. In 1942, the Council of Scientific and Industrial Research was set as an autonomous body. In 1947, some technical development establishments came up. Some of these technical development establishments became laboratories of Defence Research and Development Organisation (DRDO) later. Before 1950, India had only 19 ordnance factories. At present, the Indian DIB refers to 39 Ordnance Factories geographically spread in 24 different Indian locations, eight public sector defence undertakings and increasing number of large, medium, small and micro undertakings from the private sector. Also, more than 50 defence laboratories are considered part of the DIB. The Indian government adopted a policy of permitting 100 per cent Indian private sector participation and 26 per cent Foreign Direct Investment. As of May 7, 2012, 181 Industrial Licenses / Letters of Intent were given to the private sector companies to manufacture defence items. An in-depth analysis of the evolution and the way forward for Indias DIB.
IndiasDefenceIndustryBase
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EVOLUTION and the way forward
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PRIVATE SECTOR AS PANACEA?
Pathikrit Payne The writer is an alumnus of S Rajaratnam School of International Studies at Nanyang Technological University, Singapore. He was previously associated with The Sunday Indian magazine and is presently a Senior Researcher with a New Delhi based think tank.
he symbiotic relationship between defence industrial innovation and its positive impact on overall industrialisation and economic development remains pertinent to this day. In spite of much lip service for greater self-sufficiency in the indigenous production of defence equipment, reality is that Indias defence establishments are still very reluctant to allow the Indian private sector to play a bigger role in the manufacturing of defence equipment in India. Yet it is thanks to Indias Private sector that in less than seventeen years, from the verge of bankruptcy India broke into the trillion dollar club. It is surprising that for a country of Indias size and industrialisation, its ordnance factories manufacture a mere 1,00,000 INSAS 5.56 mm assault rifles and another 6,000 7.62 mm SLRs per year. Given the fact that India has an estimated 1.3 million personnel in its armed forces in addition to a near 2 million state police personnel and another near 8,00,000 Central Armed Police Forces, modernising Indias entire force engaged in defence and maintenance of law and order with at least a modern assault rifle would thus take decades. The void in most cases is filled by ad hoc purchase of mostly AK series of rifles from countries like Bulgaria. It is shocking that a country which manufactures 4.7 million cars per year (almost entirely in the private sector) cannot produce more than a hundred thousand rifles a year. There is no reason to believe that L&T or Tatas or Mahindras or even Reliance, which are known all over for their project management skills and their ability to execute critical turnkey projects in record time would not be able to make a quality rifle for India.
Finding Nemo - Can India
ever come up with its own defence industrial base?
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DEPENDENCE CONUNDRUM
Neither here nor there

Cecil Victor The writer has covered all wars with Pakistan as War Correspondent and reported from the conflict zones in Vietnam, Laos and Cambodia in South East Asia as well as from Afghanistan. He is author of India: The Security Dilemma.
icense produced self-reliance was supposed to be a temporary phenomenon to help Indian defence scientists to acquire hands-on competence. Self-reliance was clearly intended to be a stepping stone to that more desirable goal of self-sufficiency in major weapons platforms. It has now become the norm that perpetuates dependency on Foreign suppliers. Indias attempt at creating a viable military industrial complex has been chequered. Scientific manpower became trapped in the license produced syndrome which prevented the application of innovation, upgradation and finally reproducing new varieties of products obtained from foreign source. It was only in shipbuilding that the Naval Design Bureau covered itself with glory. The Bofors scam generated a stasis that has lasted a quarter of a century.
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homeland security
Book review
Jihadi Tentacles
The Fertile Soil of Jihad
Reviewed By Dr Rupali Jeswal
Patrick T Dunleavy
The Fertile Soil of Jihad

Terrorism's Prison Connection
160 pages; 6" x 9"; Notes; Bibliography; Index Clothbound Published: September 2011 ISBN: 978-1-59797-548-3
atrick T Dunleavy is the former Deputy Inspector General for New York State Department of Corrections and author of The Fertile Soil of Jihad - a book about terrorism recruitment inside the prison, where it starts, how it develops and the belief where one cell ends another begins. The book is a portrayal of a prisoners capabilities and using the inside environment to work for their own agenda outside the prison walls. http://www.amazon.com/Fertile-Soil-Jihad-Terrorisms-Connection/dp/1597975486 The author is a highly accomplished Law Enforcement Professional; he worked as part of an elite team of investigators for more than 26 years, infiltrating criminal enterprise, contract murder conspiracies and negotiating for the release of hostages.
He was a key figure in Operation Hades, a four year joint investigation conducted by United States law enforcement and intelligence agencies that probed the radical Islamic recruitment movement for jihad from both inside and outside the prison walls. He is not only a prolific writer but his first hand experience with radicalization in American prisons and the vivid details of his investigations is an eye-opener for all Law Enforcement Agencies. His exploration in how the prison subculture fosters radicalization is food for thought, not just restricted to America but globally as the issue of radicalization in prison, transcends all borders. Since the publishing of his book, September 2011, Mr Dunleavy continues to write and speak out on current events and issues related to radicalization and terrorism, which can be viewed at his website www.patrickdunleavy.com In the past weeks, I have been in touch with the author regularly and found him to be most gracious in his attitude and very approachable. He is not only well armed with wits and expertise but with humility and with a great sense of commitment, in his personal and professional life. While reading The Fertile soil of Jihad and further diving into his published written materials, I have enhanced and enriched my own understandings tremendously and know that all who read his book would feel the same as I did. The Fertile Soil of Jihad - starts with the Abdel Nasser Zaben, a young Palestinian, arrested for kidnapping and robbery in 1993 and in the consecutive years America witnesses the call and attacks of jihad and war on terrorism begins. Aftermath of 9/11 irked the law enforcement and intelligence agencies to take upon the information from 1999 of how Middle Eastern inmates in the American prison system were recruiting to produce jihadist who would progress to use acts of terrorism in America. The combing through, leads the investigating team to the same man Abdel Nasser Zaben arrested in 1993 and Dunleavys fast paced recount of events starts.
Potomac Books, Inc

22841 Quicksilver Drive, Dulles, VA 20166
Published by:
In The Fertile Soil of Jihad, the readers sensation is further amplified, brilliantly, by Patrick Dunleavys use of analogy to Dantes first canto Inferno (Hell), of his 14th century epic poem The Divine Comedy. The pace of the book is fast, ever developing and magnetic by virtue of its authors consummate power of analysis and narrative. Meticulously arranged for any reader to grasp the unfolding of events within the primed walls of prisons, it is a book with a case to learn from, for all those who are in Police, Intelligence and Prison and Correctional Services. This effort of Patrick Dunleavys will assist us in understanding not why? things happen but most importantly HOW? things happen. The authors keen observational, analytical and rhetorical skills will lead the reader to microscopic details, showing the holes in our system and what must be anticipated and what can be used as a counter-measure to prevent radicalization in prison taking place. In the end, the book leaves us with a foresight with our own thinking pattern changed to Expect the Unexpected and work towards anticipating and reinventing counter-measures for prevention, leaving aside basic assumption and false positives.
The insulated yet permeable environment of prison leads this same young man, Abdel Zaben, seemingly a common criminal, to swear his allegiance to Osama bin Laden and he embarks on his path to recruit and convert selectively other young minds to the cause of jihad.
80
In prison, time often works to the great advantage of the convict. Mainstream society often forgets the most heinous of criminals once they are locked away. But the terrorist never forgets and knows how to manipulate the system.
In Dunleavys words In his testimony before the United States House of Representatives Committee on Homeland Security on The Threat of Muslim American Radicalization In US Prisons June 15, 2011, he stated:
81
homeland security
Book review
"The task force investigation also found that although the initial exposure / conversion / indoctrination to extremist jihadi Islam may begin in prison, it often matures and deepens after release through the contacts on the outside that the inmates made while they were serving their sentences in prison." He also noted: Despite appearances, prison walls are porous. It is easy for outside influences to access those on the inside and for inmates to reach from the inside out. The problem of prison radicalization often begins at the county jail level and continues on through the state prison system and the post release period. Law enforcement agencies should cast aside the notion that there is such a term as Self-radicalization. Radicalization by definition means to change fundamentally and a change takes place due to an insertion. This insertion can be in any form and as Mr Dunleavy, author of The Fertile soil of Jihad eloquently conveys: The constant interaction that occurs within a prison negates that (Self-radicalization). There is always a facilitator, an influence, or a catalyst. Be that literature, another cellmate or a clergy.
Prison radicalization, unfortunately, is not unique to the United States, this is an issue plaguing many countries and many are conducting research, building case studies and reinventing countermeasures. India lacks literature on Prison Culture and subcultures and the knowing of holes in its fabric, it may have.
This book will give us a picture of real-life events that took place in the American prisons and how the negative ripple effect was followed outside the prison walls. Even our best practices are on foundations of other professionals trials and errors and the findings of it, so to read this book and understand the mechanics of human capabilities within prison confinement is a lesson to learn from and utilise it in formulating effective counter-measures. Evidence suggests that Prison and Correctional facilities have been and are increasingly becoming congregations where terrorists and organised criminals establish channels of communication and co-operation and more importantly recruit new members. Here a systematic capturing and analysis of the social processes within detention facilities can enhance intelligence and law enforcement agencies understanding of the groups operation and behaviour. Terrorists and organised crime-related inmates are very sophisticated in using the correction environment to their advantage. Incarceration is part of the game for these inmates: it is a time to rest, recoup and recruit. They are model inmates. They are careful to deflect any attention to their schemes and communication strategies.
Police and correction professionals need immersion in the intelligence operations and strategies of their respective agencies. This linkage will result in the production of mutually beneficial intelligence tools and operations.
To prevent cognitive-sabotage officials must use their own interpretative lens in their own facilities using this book as a tool of knowledge because what assumptions were appropriate yesterday can easily be null today, misleading us.
Dr Rupali Jeswal
The reviewer is an Intelligence and Terrorism Analyst, Clinical Psychologist and Clinical Hypnotherapist based in South-East Asia. She has also received training in specialsed areas including counter-terrorism, intelligence and tactical operations. She specialises in cognitive learning processes and neural pathway response and how these factors apply to specialised trainings. She is an expert in the field of non-verbal micro and macro expression for deception and detection and also using non-verbal assets for psychological self-assessment in conjunction with Emotional Intelligence to enhance the human mind, personality, image and spirit. She is a member of ICPA (International Corrections & Prisons Association), IACSP (International Association for Counter-Terrorism and Security Professionals) and a member of APA (American Psychological Association), APP (Association of Professional Psychologists), UK Certified Hypnotherapist and General Hypnotherapy Register.
82

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Maj Gen (Dr) G D Bakshi SM, VSM (retd)

De fence Forces a nd St atec ra f t

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August 2012 Defence AND security alert

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An ISO 9001:2008 Certified Magazine

A R T I C L E S defence production: enhancing public-private cooperation 08

Lt Gen Kamal Davar PVSM, AVSM (retd)

buyer to a builders Indian military

crafting a vibrant defence industrial base for India

private sector and development of a vibrant defence production sector

defence industry reforms: aviation

defence procurements, policy, procedure, process and practice: an industry perspective

incubating technologies today for a vibrant DIB tomorrow

C O L U M N S radicalization in prisons Dr Rupali Jeswal

F E A T U R E S book review: the fertile soil of jihad

neither here nor there

making smart procurement decisions Dr Vivek Lall

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