Aerospace Diary

Posted by- Neelam Mathews April 20, 2013 PRESS RELEASE With the twin objective of infusing greater efficiency in the procurement process and strengthening the defence manufacturing base in the country, the Defense Acquisition Council, the apex decision making body of the MoD, took a series of decisions today,  including amendments to Defense Procurement Procedure (DPP). The Defense Minister AK Antony, who chaired the Council meeting, said the only way forward for the country is rapid indigenization of defence products, with both the public and the private sectors playing  pivotal roles in this endeavour. Antony said the government will make all efforts to create genuine level playing field for Indian manufacturing industries vis-à-vis Global Players. Following are the highlights of the amendments to the DPP-2011: 1.    Prioritisation of Various Categories for Capital Acquisitions under Defense Procurement Procedure Preference for indigenous pro...

OEMs Unhappy That Relaxed Indian Offset Policy Is Not Retroactive AINONLINE by    NEELAM MATHEWS July 12, 2012, 11:00 AM Recent upgrades to  India’s Defense Procurement Policy  ( DPP ) 2011 that are to be incorporated in  DPP  2012 could soon allow foreign vendors to buy from Indian companies assemblies that contain foreign content while getting credit for the entire assembly, as long as the content is paid for in rupees. The period of time allowed for the discharge of offset obligations is also being extended by two years, up to four, and that for the banking of offsets from five to seven years. A multiplier of factor 1.5 will be permitted through a non-equity route for offset obligations relating to direct exports, foreign direct investment, transfer of technology ( TOT ) or investment in kind. While the objective is to ensure establishment of a consistent, authoritative, empowered offsets agency serving as a ...

  Neelam Mathews Dec 6, 2011 There’s good news at the end of the year.   Tier 1 sub vendors can now discharge offset obligations on behalf of the main/prime vendor. The order comes into force with immediate effect starting Dec 3, 2011. “This will make life easier for OEMs,” says an Aerospace Diary reader. The industry is now looking for the new Offset Policy that will incorporate changes including bringing in multipliers, we learn.

Neelam Mathews June 18, 2011 A major change introduced by the MoD over the DPP 2011 for civil aerospace products elgible for defense offsets is that technical manuals, raw materials and training will no longer be considered.  Training aids including simulators, associated equipment, software and computer based training modules will remain. Expansion of what in a training institution is considered as offsetable. “The earlier definition was ambiguous as flying training institutions and technical institutions was a very wide descriptor which will now include CBT and simulator but training schools including training aircraft are out,” says an MoD official to Aerospace Diary. The amendment also includes the Design, Development, Manufacture, Upgrade of all types of fixed wing and rotary wing aircraft or their airframes,aero engines, avionics, instruments and related components. Other inclusions are Composites, forgings and castings, Guidance and Navigation equipment, te...

Posted by- Neelam Mathews Time- 1:00pm IST While detailed amendments on the Offset Policy are awaited, the Indian MoD has amended the list of civil aerospace products that are eligible for offsets. For the Defence Procurement Procedures (DPP) 2011, the civil aerospace products eligible for Offsets stands modified as per the following:- Ammended version Implication Annexure VI to Appendix D (Refer to Para 2.1a to Appendix D) §   All types of fixed wing as well as rotary aircraft including their air frames, aero engines,aircraft components and avionics. §   Aircraft design and engineering services. §   Technical publications §   Raw material and semi-finished goods. §   Flying training institutions and technical training institutions (excluding civil infrastructure). §   Design, Development, Manufacture, Upgrade of all types of fixed wing and rotary wing aircraft or their airframes, aero engines, avionics, i...

Neelam Mathews April 27, 2011 Time: 8:17 PM IST The Ministry of Defense is believed to have shortlisted two vendors- Dassault Aviation Rafale and Cassidian’s Eurofighter – for the Indian Air Force 126 Medium Multi Role Combat Aircraft bid. It is not clear how geo-politics will play a part as far as Boeing’s F/A/18 goes. India’s Cabinet Committee on Security (CCS) is also expected to meet on April 28 to clear the around $5.5billion order for ten C-17s. India expects to order around 16 more C-17s. The commercial bid for the contract expires on midnight of April 28. The down selected vendors will be asked to submit their revised offsets proposals by October/November this year. It is increasingly being understood the MMRCA project will accrue benefits of the soon-to be re-revised Defense Procurement Policy 2011, instead of the DPP 2006 it was originally covered under. DPP 2006 does not recognize banking of offsets, among other clauses. The re-jigged DPP 2011, announced in January ...

Neelam Mathews April 20, 2011 Time: 11:15 P.M IST Even as the Offset policy guidelines were expanded to include civil aerospace, internal security and training in January, further additions are now expected. “There will be changes (to be announced) in April,” Minister of State for Defense M.M Pallam Raju told Aerospace Diary at the 2 nd National Manufacturing and Innovation Summit. This was reaffirmed by Vivek Rae, Director General Acquisitions, who said the MoD was “modifying offset guidelines in the near future.” The “revised” procedures in the DPP 2011 will include transfer of technology, which Raju confirmed was “a ticklish issue,” but needed to be addressed. It is also likely that the offsets banking time-lines will be extended from two to five years. Raju was emphatic that the Medium Multi Role Combat Aircraft (MMRCA) order would not be covered under the DPP 2011. When asked if not including the around $10billion project under DPP 2011 would be counterproductive to help ...

Feb 2011 Neelam Mathews With the recent release of the Defence Procurement Procedures 2011 (DPP 2011) document, Defence Minister A.K. Antony reiterated that the intent of the revised policy was to expand India’s defence industrial base, encourage indigenous production and reduce imports. “The changes aim at simplification of procedures, speeding up procurement and enhanced benefits to the Indian defence industry. Keeping in view the strategic importance of the ship building sector… Our singular objective is to provide a level-playing field to the public sector units, shipyards and private sector, as well as promote indigenization”, Antony said. With over 65% of India’s defence equipment having been acquired from the former Soviet Union with no commitment to life cycle costs or offsets, over the years, efforts have been made to introduce a series of changes to the procurement policy framework with the main aim of including offsets and to give Indian industry a boos...

News March 3, 2011 FUNDING &POLICY NEW DELHI — Another update to India’s new Defense Procurement Procedures (DPP 2011) is expected in the first week of April. Major changes will involve the technology-transfer clause. The policy will include technologies listed by the Defense Research and Development Organization that will be accepted as offsets. Currently, technology transfer from foreign vendors doing business with India is mandatory and cannot be charged for in India’s biggest defense procurement — the Medium Multi-Role Combat Aircraft (MMRCA) program to buy 126 fighters. “The move is welcome,” says one vendor. “In the past, the inability of the Indian government to clarify its policy on offset and technology transfer has rendered Indian technology companies directionless.” But serious concerns remain. “There is an urgent need to establish a framework [ensuring vendors will] transfer these technologies only to those Indian companies that have mature intellectual pr...

Aerospace Daily Jan 14. 2011 India Confirms MMRCA Ineligible For New Offset Policy Jan 13, 2011   By Neelam Mathews NEW DELHI Indian Defense Minister A.K Antony says the defense ministry’s new, more liberal offset policy will not be applicable to the country’s largest defense procurement, the Medium Multi-Role Combat Aircraft (MMRCA), quashing the hopes of many vendors. Program offsets require foreign vendors to provide work for Indian industry up to a certain percentage of the program’s value. The $11 billion MMRCA project was viewed as a potential major boost to India’s still-maturing defense industry. “The new policy will be applicable to requests for proposals issued from January 2011 onwards,” Antony says. “This is a big disappointment,” says Puneet Kaura, executive director of Samtel Display Systems. “We see it as an opportunity lost. We would have...

Funding and Policy Aerospace Daily & Defense Report Jan 07 , 2011 , p. 08 Neelam Mathews NEW DELHI — India’s ministry of defense has expanded the list of projects that foreign vendors can use to fulfill their defense offset obligations, to include domestic security and civil aerospace work. The policy change is part of the ministry’s long-awaited Defense Procurement Procedures (DPP) for 2011, which took effect Jan. 1. While the change is being hailed by foreign vendors who have found Indian defense offset requirements onerous, some analysts say the ministry’s original intention with the policy — to help build an indigenous defense industry — may now be undermined. Boeing and EADS would expect to benefit from the new policy, given that they already have products in the civil aerospace and internal security markets. “This is clearly a very forward-looking policy change [and] a positive step toward broaden...

DPP 2011 released Neelam Mathews The ministry of defense has released its DPP 2011. It has expanded the list of products Eligible for Discharge of Offset Obligations from defense products to products  for internal security and  civil aerospace products. A quick list includes- Internal Security • Arms and their ammunition including all types of close quarter weapons. • Protective Equipment for Security personnel including body armour and helmets. • Vehicles for internal security purposes including armoured vehicles, bullet proof vehicles and mine protected vehicles. • Riot control equipment and protective as well as riot control vehicles. • Specialized equipment for surveillance including hand held devices and unmanned aerial vehicles. • Equipment and devices for night fighting capability including night vision devices. • Navigational and communications equipment including for secure communications. • Specialized counter terrorism equipment and gear, assault platforms, ...