Monday, December 19, 2011

Minister of Defense replies in Parliament- Dec 19, 2011

Posted by- Neelam Mathews
Dec 19, 2011


Contracts have been signed with M/s Thales, France, along with M/s Hindustan Aeronautics Limited (HAL) for upgrade of the Mirage 2000 aircraft of the Indian Air Force, with M/s HAL for upgrade of the Jaguar aircraft and with M/s RAC-MiG Russia for upgrade of the MiG-29 aircraft. These contracts are under implementation.
The cost of the contract for upgrade of the Mirage 2000 with the M/s Thales, France is Euro 1470 million while the cost of the contract with HAL is 2020 crores.  The upgrade of the aircraft is expected to be completed by mid 2021.  The cost of upgrade of the MiG-29 aircraft is USD 964 million and it is expected to be completed by 2016.  The cost for upgrade of the Jaguar aircraft is Rs.3113.02 crores and the aircraft are expected to be upgraded by December 2017.

Formation of Joint Ventures have been put on hold by the Ministry till formulation of suitable guidelines regarding the manner in which Joint Venture partner can be selected for such ventures.  This is being done in order to ensure complete transparency in the selection of partner for Joint Ventures.  Guidelines will also cover the terms and conditions of such Joint Ventures so that interest of PSUs can be fully safeguarded and their ability to provide service to Armed Forces is not constrained in any manner.
All DPSU shipyards are being modernized to enhance their Capacity & Capability to deliver ships faster.
Private shipyards participation is also being encouraged to meet the requirement of Navy & Coast Guard.


Ordnance Factory Board (OFB) has been committed and perseverant in its efforts to make products of Ordnance Factories market oriented.  However, the civil/export market is explored by OFB only after fulfilling the requirements of Defense Forces.
OFB has been engaged in civil/export activities in accordance with the Government procedures.  Some of the major products exported by OFB in the last few years are:
·        Brake Parachute Sukhoi.
·        Card 5.56mm SS109.
·        Brake Parachute Jaguar.
·        Cable JWD-1.
·        Cart 5.56 x 45 mm INSAS.
·        AK 630M and Fog Signals among others.
·        105MM Artillery ammunition.
·        84mm Ammunition.
In the domestic civil sector also OFB has been supplying axles to Indian Railways, special grade aluminium to ISRO etc.


The contract for civil construction works of 8.802 Km (8802 M.) Rohtang Tunnel to provide all weather road access to Leh (Ladakh) was awarded to M/s Strabag-Afcon (JV) on 24th September, 2009 at a cost of Rs.1458.06 Crore.  The total progress of Rohtang tunnel achieved as on 11.12.2011 is 2475 M. in heading and 486.10 M. in benching.
The expenditure involved so far is Rs.568.60 Crore.  The advantages of this tunnel are as under :
(i)                 Round the year connectivity to Lahul & Spiti Valley.
(ii)               The distance between Manali and Lahul-Spiti Valley will be reduced by 46 Km.


The Andaman & Nicobar Islands are strategically located over-looking the eastern access into the Indian Ocean and Bay of Bengal, they have a long coastline needing constant surveillance.  Instances of illegal poaching by foreign fishermen have been noticed in recent times.  Measures to contain the menace include strict action against the poachers, diplomatic initiatives with their Governments and enhanced surveillance and patrolling by our security agencies in the islands.


Defense equipment/weapons are supplied by various countries which include Russia, USA, Israel, France, United Kingdom etc.
The ‘Make’ procedure was incorporated in the Defense Procurement Procedure (DPP) in 2006 to encourage indigenous development.  Besides, the Government has included a new categorization ‘Buy & Make (Indian)’ in the DPP in November, 2009 to encourage indigenous production in the country. These measures are expected to promote indigenous design, development and manufacture of defense equipment both in public and private sector.
Government constantly reviews the security scenario and accordingly decides to induct appropriate defense equipment/platforms.  This is a continuous process undertaken through procurement from various indigenous as well as foreign sources to keep the armed forces in a state of readiness to meet any eventuality.  Divulging further details in this regard would not be in the national interest.
With a view to achieve greater self-reliance in Defence Production, Government has announced a Defense Production Policy in January, 2011.

Defense equipment are being imported as per the operational requirements of the Armed Forces.  Several steps are being taken by the Government to promote manufacture of defense equipment within the country.  In all procurement cases, the feasibility of indigenous development is explored before buying the equipment from the global market.  Transfer of technology is also sought to enable the manufacture of the equipment indigenously. Defense Production Policy has been announced in January, 2011 to encourage indigenous manufacture of defense equipment.  ‘Buy and Make (Indian)’ and ‘Make’ categories have also been introduced in the Defence Procurement Procedure.
The Defense Research and Development Organisation (DRDO) is engaged in design & development of strategic, complex and security sensitive systems for our Armed Forces.  It has developed a number of systems with state-of-the-art technology.  These include missiles, unmanned aerial vehicles, combat aircraft, propellants & explosives, detonators, communication systems, etc.  A number of DRDO developed systems have been productionised and inducted into the Armed forces.
DRDO is developing a missile defense shield for the country.

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