strategic partnerships in indian defence industry: single engine ... - Bitly

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CONTENTS A TIMES OF INDIA PRESENTATION l MANAGING EDITOR VISHESH PRAKASH

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DEF EXPO 2018 The annual defence extravaganza 'DefExpo' is being held in Chennai from April 11-14 with an aim to showcase India as a major hub of defence production in the world

l ASSISTANT EDITOR POOJA MADHOK l EDITORIAL TEAM YASMIN TAJ DIPIKA RATHI KAMINI KULSHRESHTHA l CHIEF GRAPHIC EDITOR MUKESH ARORA l DESIGN TEAM SUSHIL DUBEY (COVER EXECUTION), DINESH VIST, ASHOK SHARMA

THE 30 AEROSPACE: FUTURE

MARKETING l NATIONAL VERTICAL HEAD SHWETA ARORA [email protected] l PROJECT COORDINATOR PEEUSH SRIVASTAVA [email protected]

WORKFORCE

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The recent standoff with North Korea has suddenly brought to fore an often considered but not mentioned openly topic— Nuclear warfare

l PRODUCTION COORDINATION MUKESH MALIK UTTAM ACHARYA

Published by: Rajeev Yadav for the proprietors, Bennett, Coleman & Co. Ltd., at Times House, 7 B.S.Z. Marg, New Delhi and printed by him at Amar Ujala Publications Ltd., C - 21 & 22, Sector - 59, Noida - 201301, (UP) - India All rights reserved with M/s Bennett, Coleman & Co. Ltd. Reproduction, in whole or part, without written permission of the publisher is prohibited. Infringement of any of the above conditions can lead to civil and criminal prosecutions. DISCLAIMER: Great care has been taken in the compilation and validation of information, and every effort has been made to ensure that all information is up-to-date at the time of going to press. The publishers are not responsible for errors, if any, and their consequences.

RELEVANCE OF NUCLEAR WARFARE

STRATEGIC PARTNERSHIPS IN INDIAN DEFENCE INDUSTRY: SINGLE ENGINE AIRCRAFTS FOR IAF

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It is imperative that the SP policy is implemented at the earliest, especially for single engine aircrafts

2018 Copyright © Bennett, Coleman & Co. Ltd Pictures used in the magazine are for representational purposes only.

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Aerospace and defence manufacturing can be a suitable and desired career path for the engineering talent pool of India

34 BLOCKCHAIN REVOLUTION IN STRATEGIC SECTORS While people are beginning to recognise the impact of cryptocurrencies such as bitcoins, etherium and the like, the underlying blockchain technology developed to validate these transactions is perhaps far more widespread and useful

A NEW ERA FOR INDIA’S SATELLITE AND SPACE DEVELOPMENT India is well on its way to master modern space technology and its various applications. A good sign, indeed

DEFENCE INDUSTRIAL PARTNERSHIP: ARE WE REALLY READY? Advent of technology and global economic environment has changed the face of warfare since World War-II

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38 INDIAN NAVY: MODERNISATION AND THE CHALLENGES Apart from ensuring the primary task of maritime security, naval ships sail across the oceans to promote peace and harmony, and yet face challenges that need to be taken care of

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COVER STORY

DEF

EXPO 2018 2 | ET Aviation & Defence | April 2018

THE ANNUAL DEFENCE EXTRAVAGANZA ‘DEFEXPO’ IS BEING HELD IN CHENNAI FROM APRIL 11-14 WITH AN AIM TO SHOWCASE INDIA AS A MAJOR HUB OF DEFENCE PRODUCTION IN THE WORLD. A REPORT... r [email protected] efExpo 2018 will, for the first time, project India's defence manufacturing capabilities to the world. This is reflected in the theme for the Expo, which is ‘India: The Emerging Defence Manufacturing Hub’. DefExpo 2018, which is being held in Chennai between April 11-14 will brand India as a defence exporter of several defence systems and components for all three services Army, Navy and the Air Force. While showcasing strengths of India's substantial public sector, it will also uncover India's growing private industry and spreading MSME base for components and sub-systems. Taking the military exhibition to South India comes at a time when the Defence Ministry has decided to set up a defence production corridor between

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Theme 2018 To brand India as a defence exporter of several defence systems and components for all three services - Army, Navy and the Air Force

Perfect timing Taking the military exhibition to South India comes at a time when the Defence Ministry has decided to set up a defence production corridor between Chennai and Bengaluru

Growth prospects The Expo will be a way to promote private companies and MSMEs

Chennai and Bengaluru in order to link the small-scale and medium-scale industries at Mysore, Coimbatore, Salem and Tiruchirappalli with the big players in the defence manufacturing segment. This is one of the two defence production corridors announced by the Finance Minister in the latest budget, the other one being in Uttar Pradesh. DefExpo 2018 will brandish Hindustan Aeronautics Ltd's various flying platforms including the domestically designed and manufactured fourth-generation Light Combat Aircraft (LCA) - Tejas, and Advanced Light Helicopter - Dhruv, which have both civil as well as combat variants. Other highlights would be Light Combat Helicopter for which IOC was received recently, and Dornier civilian aircraft for which DGCA clearance was received and which is

April 2018 | ET Aviation & Defence | 3

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likely to be inducted for regional connectivity purposes. Apart from HAL's platforms, the Expo will also promote domestic private industry and aero-components industry. As the DefExpo is being held on seashore, along the East Coast road enroute Chennai to Mahabalipuram, it provides Indian Navy to brand its domestic design and manufacturing capabilities. India will proudly present its Naval designing capabilities in shipbuilding. India is one of the few countries of the world with capabilities to design a naval vessel from scratch to finish. India will also physically showcase, along the shoreline, several frigates, corvettes and other ships. The 4 | ET Aviation & Defence | April 2018

exhibition will also unveil India's capabilities in manufacturing Scorpene class submarine. Naval shipyards in public sector including Mazagon Docks, GRSE, Goa Shipyards, Hindustan Shipyard and private shipyards will bring to view their capabilities in manufacturing and servicing ships. Kattupalli shipyard of L&T is only 40 km from Chennai and visitors to DefExpo can easily visit the same. It is relevant to mention that Indian shipbuilding is marked with growing indigenisation levels and ‘float’ of ships built in India have nearly 90% indigenous components. There is growing demand for Indian built vessels from many countries in South

Asia, ASEAN and Africa and DefExpo will be a perfect stage to unfold the might of India's shipbuilding capabilities. As regards land systems, India will unveil its 155mm Advanced Towed Artillery Gun (ATAG) in DefExpo. This is the first time that India has its own ATAG which has been designed and developed by DRDO in partnership with Kalyani Group, Tata Power and OFBs. India also proposes to showcase its tank making capabilities, including MBT Arjun, T90 and T-72, and Bridge Laying Tanks (BLTs) with a span of over 70 feet among others. India will also be showcasing 155mm artillery gun ‘Dhanush’.

DefExpo will also provide an opportunity to showcase India's plans for putting India on the global map of small arms manufacturing with its decision to manufacture about 7.5 lakh assault rifles, 3.5 lakh carbines and about 40,000 LMGs. As Commodore Sujeet Samaddar (NM Veteran), said, “DefExpo is a traditional platform of bringing together users and vendors. It also showcases the developments and technologies across the world and highlights the advances that the Indian defence industry has made in the last few years. DefExpo provides essential opportunity for the Indian suppliers to connect with the global arenas in

GIVEN THE FOCUS ON HIGHLIGHTING INDIA AS AN EMERGING DEFENCE PRODUCTION HUB, DEFEXPO 2018 HAS EARMARKED AT LEAST HALF THE SPACE FOR DOMESTIC EXHIBITORS THIS TIME AROUND

furthering and strengthening their businesses.” India will also showcase its missile and rocket manufacturing capabilities. Besides, Akash Missile system will be a major attraction at DefExpo. Pinaka rockets will also be highlighted during the show. Given the focus on highlighting India as an emerging defence production hub, DefExpo 2018 has earmarked at least half the space

for domestic exhibitors. This will make DefExpo 2018 the biggest ever opportunity to show their capabilities and integrate with the global supply chain of defence manufacturing. Emphasis is being given to welcome delegations from countries which have shown keen interest in India's weapon systems and platforms. DefExpo 2018 will provide a boost to overall defence April 2018 | ET Aviation & Defence | 5

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THE PARTICIPATING COUNTRIES IN THE DEFEXPO THIS YEAR INCLUDE, MAJOR DEFENCE MANUFACTURING NATIONS LIKE USA, UK, RUSSIA, FRANCE, ISRAEL, KOREA, AND SWEDEN, ALONG WITH TOP OFFICIALS FROM THE DEFENCE FORCES

manufacturing capabilities in the country and to its export potential. In what can be termed as a unique initiative, the Government of India (MoD) has proposed an open challenge for solutions to the problems from innovators, students, professionals, participants and foreign nationals who are attending DefExpo 2018. The topics of the problems include, ‘Ejection mechanism for helicopters’; ‘Nap of the Earth/Valley Flying using auto pilot due to GPS signal corruption in hilly areas/high rise buildings’; ‘Auto identification of Drone/UAVs’; and ‘Location based tactical messaging collaboration platform’. The participating countries in the DefExpo this year include, major defence manufacturing nations like USA, UK, Russia, France, Israel, Korea, Sweden, 6 | ET Aviation & Defence | April 2018

among others. Several of the delegations participating in the DefExpo are expected to be at the ministerial level. Several top service officers (Army/Navy/Air Force) are also participating in the DefExpo 2018. Talking about how DefExpo helps in the growth of the defence industry in India, Ankur Gupta, Vice PresidentCommercial & Business Development of a helicopter and engine manufacturing company, stressed, “DefExpo is the flagship event of the Indian defence

sector. It provides an opportunity and a platform for Indian companies to showcase their wares to the user (armed forces) as well as come up-to-date with the progress made in the global arena. It is heartening to see that a special dispensation has been made to make the event ‘affordable’ for MSMEs. DefExpo also serves as a platform for the industry stakeholders to not only share their views with the relevant authorities (MoD, Service HQs), but also to exchange notes among themselves.

Inputs from both these activities are of immense help whilst the policies are formulated. A good example of such an output is the recently unveiled ‘Defence Production Policy’.” The Expo will seek to promote the domestic private industry and aerocomponents industry at a time when the government is looking to reduce dependence on imports and instead, increase abilities to manufacture for forces within the country as part of ‘Make in India’ initiative. April 2018 | ET Aviation & Defence | 7

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An Insight

r Shubhojit Bhattacharya

RELEVANCE OF

NUCLEAR WARFARE

he emergence of nuclear weapons played a critical role in national security of almost all nations as we stepped into the last two decades of the 20th century. There have been massive advances in the fields of warfare due to the technological developments made. However, at the same time, there has been no large-scale strategic conflict since the Second World War. One may possibly safely speculate that it is the emergence of nuclear weapons, rather than the learnings of the Second World War which led to a stabilising effect on superpower relations by making any conflict unacceptably costly. But the dynamic

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world order scenario does give credence to the fact that the composition of a nation’s nuclear forces and its strategy for their employment may be different in the 21st century. It would thus not be incorrect to connect these geopolitical developments along with the technological advances made in the field of weaponry to do a vital rethinking of the expectations and requirements for nuclear weapons in the arsenal of the nations. WHY NUCLEAR WEAPONS?

The basic requirement of nuclear weapons for any nation is to deter potential adversaries from an attack on its

THE RECENT STANDOFF WITH NORTH KOREA HAS SUDDENLY BROUGHT TO FORE AN OFTEN CONSIDERED BUT NOT MENTIONED OPENLY TOPIC – NUCLEAR WARFARE

8 | ET Aviation & Defence | April 2018



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provide an assured retaliatory capability to convince any adversary that aggression or coercion would be met with a response that would be certain, overwhelming, and devastating. While there has been some discussion of single weapon strikes against isolated targets, most of the attention in nuclear strategy has been and is directed toward large-scale engagements. This may not be true in the future. The role of nuclear weaponry as the ultimate deterrent to aggression and the ultimate destructive force in combat will likely lead to the retention of at least some nuclear forces for decades to come. However, the composition of any nuclear arsenal will definitely undergo significant modifications to respond to changing conditions, changing military needs, and changes in confidence in the nation’s ability to maintain credible nuclear forces without nuclear testing or large-scale production of weapons. Options for precision delivery of nuclear weapons may reduce the requirement for high yield. Lower yield weapons could be produced as modifications of existing weapon designs, or they could employ more rugged and simpler designs that might

sovereignty or its vital interests. Conventional weapons technology has progressed in a manner so as to suggest that, by the year 2020, precision long-range conventional weapons may be capable of performing some of the missions currently assigned to nuclear weapons. There, however, do exist cases whereby one can argue that certain specific targets maybe destroyed only by using nuclear energy. However, here too, precision targeting can greatly reduce the nuclear yield required to destroy such targets. The tangible advantages of lower yields include a highly-reduced collateral damage, as well as the possibility that such weapons could be maintained with higher confidence and at a lower cost than our current nuclear arsenal. An integrated defence strategy includes diplomacy and conventional forces with nuclear weapons being a


THE ROLE OF NUCLEAR WEAPONRY AS THE ULTIMATE DETERRENT TO AGGRESSION AND THE ULTIMATE DESTRUCTIVE FORCE IN COMBAT WILL LIKELY LEAD TO THE RETENTION OF AT LEAST SOME NUCLEAR FORCES FOR DECADES TO COME

component of that. The role of the nuclear weapons will continue for posterity as it will always be a supreme instrument of a military force. It is the dynamic nature of the global geopolitical environment and the relentless advances made in military technology globally, which suggest that the position of nuclear weapons in the national security policy of any nation will definitely evolve with time. But somehow, nuclear war planning today remains similar in many respects to what it was during the Cold War. The basic plan would be focused on a massive counter-attack strategy that would aim to eliminate the ability of an adversary to inflict further damage to national interests. Nuclear weapons

be developed and maintained with high confidence without nuclear testing and with a smaller nuclear weapons complex than as envisioned to be required to maintain the current nuclear forces of any nation. Relevance in the present era Globally, there have been plans for the deployment of the next generation of strategic forces by 2020, including replacements for the ongoing Intercontinental Ballistic Missiles (ICBMs) in most countries, the concept of a nuclear submarine armed with the latest nuclear weaponry, and the fact that all modern day aircrafts


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are now considered to be capable of delivering nuclear weapons as a norm. It takes at least a decade to deploy a new technology, and if research and development are required, additional time may be needed. For such a key component of national defence, it is not sufficient to merely demonstrate that new systems work. There must be sufficient time to shake out the inevitable problems associated with new systems so as to make them dependable beyond reasonable doubt. Time must also be allowed for the negotiation of treaties or other international agreements that support the new force structure, and that preclude the marginalisation of our forces by either a massive breakout or any other action that would reduce the effectiveness of our forces. THE FUTURE

It would be safe to presume that nuclear stockpiles have steadily decreased worldwide, largely due to the ageing of the technology and also partly due to the maturing of the thought processes guiding their usage. There has been a perceptible loss in interest with regards to nuclear weapons from


think tanks to academia, and it has taken a back-seat priority in government policymaking as well. This begs the question of why nuclear weapons remain relevant today. The beginning of the nuclear age was in a frenzy. There existed no yardstick and there was no guiding parameter. Soothsayers and politicians held sway and stockpiles were created with little or no logic for the same. But gradually, as requirements and challenges crystallised, the rationale for the quantities got questioned and stockpiles were brought under control. The thought process now in vogue is to maintain a modern stockpile, while at the same time, reducing it to the lowest possible for national security needs. As long as international rivalries exist and mutual mistrust prevails no self-respecting nation would dwindle down its nuclear stockpile below justifiable limits as it will always remain as the final level of deterrence, if not for using, at least for brandishing so as to get the respect it considers due. Similarly, not having a nuclear stockpile would simply impact the stature of the nation in the global hierarchy and dwindle its standing in



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the overall scenario affecting it economically, in trade as well as otherwise. THE INDIAN CONTEXT

Nuclear warfare in the Indian context India's nuclear doctrine came into vogue when it was announced in August 1999. It was more of a declaratory form if not in its operational variation and has undergone some changes since it was first announced The Indian nuclear doctrine was officially released in January 2003 Nuclearisation has had unanticipated significances for the India's security scenario India is likely to continue stressing nuclear disarmament as a way of resolving the problems of nuclear proliferation


Indian leaders have generally considered nuclear weapons at best a necessary evil. In fact, it is the growing nuclear threats and a progressively unaccommodating global nuclear order which have forced New Delhi to move towards a declared nuclear arsenal in the 1990s. The obvious displayed discomfort with the subject has defined the manner in which India has viewed nuclear weapons. Much of the Indian debate about nuclear weapons between the 1960s and the 1990s largely revolved around whether India should go nuclear, not what India should do with nuclear weapons. The maturity of thought came about only in the 1980s when some forward thinking Indian strategists such as K. Subrahmanyam and General K. Sundarji started writing about what nuclear weapons might be useful for. The leadership in India, political and strategic, did not have any clear notion of what these weapons were all about and how they could effectively be used to further national policy in any manner. When the analogy for analysis had to be extended to other countries, the Indian view was simple negating the very thought of their capability or even existence. If nuclear weapons are essentially political weapons, not usable in fighting wars, the logic of missile defenses seems difficult to understand.

Clearly, missile defenses are needed only if one assumes that nuclear weapons are going to be used. India, at the best, has pursued a policy of ‘mix-and-match’ or as some prefer calling it ‘pick-and-choose’. How effective it has been or considered is a question best left unanswered. INDIA’S NUCLEAR DOCTRINE: THE SHIFTING GOAL POST

The first time India’s nuclear doctrine came into vogue when it was announced in August 1999. It was more of a declaratory form if not in its operational variation and has undergone some changes since it was first announced. Produced by the National Security Advisory Board (NSAB), a group of non-governmental experts, its status remained somewhat suspect in view of the lack of any official stamp. Correctly, the government did formally claim that this doctrine was not the official doctrine. Thus, when the Indian nuclear doctrine was officially released in January 2003, in many ways it struck the chord with some of the main elements of the 1999 doctrine. Important differences did emerge but that was more of government polity than policy. The winding path of the stands taken up by varying personalities in the corridors of power only lend credence to the tale of confusion. INDIA’S NUCLEAR CAPABILITIES

There is no certainty of India’s nuclear capabilities. India is thought to have anywhere up to but not beyond 100 nuclear warheads. If sources and unconfirmed reports are to be believed,

these are reportedly kept de-mated, with components in the hands of different agencies. This does ensure a greater safety for the nuclear assets and reduces the likelihood of accidents and inadvertent use of nuclear weapons. But there exists a lobby which questions the correctness of this mode as well as the feasibility of keeping weapons and delivery vehicles separate as also the smoothness and speed of integrating them. At the same time, the possibility that most of this stockpile appears intended to feed India’s indigenously-built fast breeder reactors also cannot be ruled out. India is also developing a sea-based deterrent in the form of a nuclearpowered ballistic missile submarine. The First of these missile submarines, the Arihant, has been launched, though it will be some time before it joins the deterrent force. Two more submarines of the same type are planned. What missile they will carry is unclear, with contradictory reports in the media. It is also unclear how New Delhi will deal with the command and control issues that are raised by these platforms, including the prime issue of how to keep these weapons de-mated in a submarine. Just like any other nation, nuclearisation has had unanticipated significance for the India’s security scenario. That the military balance in the sub-continent has been affected in ways more than one is something which cannot be wished away or not considered. THE FUTURE FROM THE INDIAN CONTEXT

India is likely to continue stressing nuclear disarmament as a way of resolving the problems of nuclear proliferation. Though India’s disarmament drive is sometimes seen a cynical ploy to divert attention from its unwillingness to accede to the NPT, a good number among India’s political and administrative elite appear sincerely committed to the goal of a nuclearweapon-free world. This may very well be because no serious cost-benefit analysis has been undertaken within the government of the implications of nuclear disarmament on India’s security interest. If so, it would not be the first time: India originally supported both the NPT and the CTBT without realising the full import of these treaties on India’s security.

INDIA FACES NO EXISTENTIAL INSECURITIES AND IS A FAIRLY CONFIDENT AND SECURE STATE THAT DOMINATES ITS REGION. INDIAN POLITICAL AND ADMINISTRATIVE SYSTEMS ARE RISK-AVERSE. THUS, THERE IS LITTLE DOMESTIC POLITICAL OR INTERNATIONAL REASONS TO EXPECT RAPID CHANGES IN INDIA'S NUCLEAR POLICY

India eventually refused to accede to either treaty. Nevertheless, India does strongly support a Nuclear Weapons Convention with the objective of eventual comprehensive nuclear disarmament. Even after openly declaring itself as a nuclear weapon state, India has reiterated its commitment to comprehensive nuclear disarmament. Obviously, nuclear disarmament is unlikely in the immediate future. In the meantime, India faces some key nuclear arms control challenges in the next couple of years. The most immediate of these issues are those related to the Comprehensive Test Ban Treaty (CTBT) and the Fissile Material Control Treaty (FMCT). India’s nuclear policy has evolved gradually rather than dramatically. This is unlikely to change. Indian leaders and

the political and administrative system are cautious and risk-averse. India faces no existential insecurities and is indeed a fairly confident and secure state that dominates its region. Thus, there is little domestic political or international reasons to expect rapid changes in India’s nuclear policy. But just as it is cautious in advancing its nuclear weapons arsenal, it will also be cautious in advancing on the nuclear arms control and disarmament agenda. India is unlikely to sign either the CTBT or the FMCT, should they be presented to New Delhi in the next couple of years. On the other hand, India is also unlikely to stage more nuclear tests or hugely increase its nuclear arsenal. Over the next decade, India should be expected to gradually increase the size of its arsenal and make it more robust and reliable, with some 6,000 km plus range ballistic missiles and possibly one or two submarines capable of firing long-range ballistic missiles. India has sought BMDs for over a decade. Though it is possible that India might buy a BMD system or develop one indigenously, it is unlikely that such systems will be deployed in the next few years. India can also be expected to campaign vigorously for nuclear disarmament. New Delhi can also be expected to continue to worry about the negation of its conventional military deterrent, but it is unlikely that it will find a solution to this puzzle either in the immediate future. —The author is Lt. Col (Retd), Indian Army April 2018 | ET Aviation & Defence | 15

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Strategic Partnership r Colonel KV Kuber uoting from an Indian Ministry of Defence report of the Committee of Experts, "The overarching responsibility of the political executive and consequently the decisive voice in the field of Foreign and Defence Policy is axiomatic in democratic polities. The Indian Armed Forces understand and respect this position. So, in spite of their concerns in some areas which they perceive as vulnerable, including a policy that scholars have termed as 'strategic restraint', in the wider national interest, they adjust their war fighting doctrines to such limitations, and herein, lies the rub. There is a justifiable criticism that India lacks coherent strategic thought. Although the number of strategic thinkers has grown they are unable to influence policy. The political executive of various shades has also not built up cadres of strategic thinkers to

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It is imperative that the Strategic Partnership policy is implemented in letter and spirit and the acquisition process is started at the earliest, especially with regards to the single engine aircrafts for IAF

STRATEGIC PARTNERSHIPS IN INDIAN DEFENCE INDUSTRY: SINGLE ENGINE AIRCRAFTS FOR IAF 16 | ET Aviation & Defence | April 2018

THE IMPORTANCE OF SINGLE ENGINE FIGHTERS ASSUMES IMPORTANCE FROM AN INDUSTRY ANGLE TOO, BESIDES THE OPERATIONAL REQUIREMENT THAT A CREDIBLE DEFENCE DEMANDS. THE AEROSPACE SECTOR NEEDS A PUSH

provide continuity. Internal social divisions and the structure of the Indian polity is such that there are continuous internal confrontations and only in time of crisis and war that everyone comes together, unfortunately to relapse into business as usual once the crisis abates. Unless a national consensus develops and an institutional framework put in place, adequate military power will not be generated. Whereas primacy has to be accorded to the policy makers in strategic planning taking into account domestic compulsions (including resource

allocations), and international relations, sometimes translating into greater reliance on diplomatic efforts and defensive postures, the balance of advantage however needs to shift to the armed forces in the matter of the choice of the characteristics of defence systems and equipment based on user preference and tactical and operational doctrines. Modernisation is not merely induction of new types of equipment, but a mix of strategy and security perceptions and optimum use of hardware to achieve stated national objectives. Services should lead the initiative for modernisation." Somehow, the bureaucracy misses this point and continues to delay if not derail major programmes. Now or never - transformation in national thinking, with national interest, for national progress are manifest in the progressive policies adopted by the government. Is this enough or will this dream fade away, only to awaken the nation to reality with a wee bit of help from our neighbours, who are ever helpful in contributing to our national unity. A well-conceived, widely debated, extensively deliberated policy on strategic partnerships, by the MoD, is on the verge of being allowed to gather dust, driven by excessive caution the bureaucracy may impose. That China threatens to reinforce Dokalam and maintain a sizable force is already in public domain. Do we need threats to act or do we need a jolt to be awakened? Can we not act before it is too late? Of the identified disciplines, the most promising one, single engine aircrafts, is at large. A sector that has an ability to energise domestic industry and create value, globally, is the aerospace sector, both commercial and military. Importance of the Single Engine Fighters assumes importance from an industry angle too, besides the operational requirement that a credible defence demands. IAF has highlighted the criticality of depleting squadrons of fighter aircrafts; the current inventory of 11 squadrons of MiG-21 & MiG-27, already on an


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the generic capability requirements and allow free competition, would once again bring all major aircraft manufacturers into play, well rewind MMRCA and restart. The non-stake holders will try their best, the stake holders have to persist. The preamble to the DPP 2016 as well as the Strategic Partnership policy, highlights the spirit of procurementscapability building. It is time to weed out the noise from non-stake holders as well as from state-owned enterprises engaged in protecting their turf; just go ahead with national requirement of creating capabilities, building eco-system and host infrafacilities in the complete value chain. Fear, if any of the state-owned HAL, is mitigated by the intent of the IAF for procuring 123 Tejas LCA aircrafts. Given India's current strength of 35 squadrons, there shall still be a gap of six-seven squadrons even (if and when) after HAL delivers the current order. Notably, HAL has delivered five Tejas aircrafts till date out of initial 40 ordered in 2005. Over and above the LCA programme, HAL has the responsibility to deliver the next generation aircraft i.e., AMCA for the

extended life shall be going out of service by 2022. With the widening gap, IAF has acknowledged the need for co-existence of LCA, single-engine and twin-engine fighter aircrafts to have a balanced fleet with different applications and budgets. Medium Multi-Role Combat Aircraft (MMRCA), the mother of all competitions world-wide, pursued between 2005 and 2015 resulted in 18 | ET Aviation & Defence | April 2018

Dassault Rafale being selected in the twin-engine multi-role category, with 36 fighter crafts being acquired by the country in fly-away condition. With the first deliveries expected in 2019, the final deliveries spans across 15 years for India. On the Single Engine side, Light Combat Aircraft (LCA) programme has been pursued by IAF in collaboration with Hindustan Aeronautics Limited (HAL). Of the 40 LCAs ordered in 2005, HAL has delivered the first five. Delays and technical specifications notwithstanding, LCA is a matter of pride for India and HAL shall ensure its successful induction in the IAF. However, given IAF's current strength of 32 squadrons, there is significant gap requiring a single engine programme with global Original Equipment Manufacturers (OEM), under Make in India. The vintage MiGs are only growing older by the day to make the IAF more vulnerable while the requirement to replace the MiGs has been engaging the attention of the nation for more than a decade and a half. Any delay in acquisition of new aircrafts may jeopardise the nation's preparedness. Looking at this exigency, probably the

government, in May 2014, announced the direct acquisition of 36 Rafale Aircrafts. This was supposed to be followed by the acquisition of 13-14 squadrons of Single Engine Fighter crafts including the indigenously developed Tejas LCA. Acquisition process for Single Engine Fighter crafts should have been the first to go to market, given the criticality of depleting number of serviceable squadrons with the IAF. Also, IAF and the MoD have gained immense knowledge in the run up to the MMRCA competition. The single engine fighter aircraft programme aimed induction by 2023 with final deliveries by 2030. This has the potential to become the mother of all initiatives in Make in India, the ecosystem could span across the geography of the nation, with multiple spin-off benefits. If there was one lesson from the MMRCA experience it was not to repeat the MMRCA experience. Therefore, ''it would be prudent for the IAF to resist demands from bureaucratic establishment to reinvent the wheel and go generic once again." Argument professed by some (non-stake holders), to list out

IN THE CASE OF SINGLE ENGINE FIGHTERS, WITH ESTABLISHED RELATIONSHIPS, THE STRATEGIC PARTNERSHIP PROCESS CAN BE FURTHER ACCELERATED BY JUST GOING STRAIGHT TO THE PARTNERSHIPS AFORE

IAF, resumption of talks on the FGFA notwithstanding. Two global OEMs have opened their cards on the Single Engine Programme. Saab has reinforced their commitment to full transfer of technology in respect of Gripen NG, and Lockheed Martin has offered shifting their entire F-16 production line to India. Saab has further offered its services to partner in the development of AMCA & LCA Mk-II, in line with the requirements of the MoD. The two foreign OEMs have also announced their partners in India; Saab with Adani Group & Lockheed Martin with Tata Advanced Systems and inked relevant MoUs. The two companies have also started taking the first steps towards indigenisation by engaging with the local ecosystem. But, they

need intimate understanding of each other's attitude, aptitude, best practices, value proposition and would be a result of sustained interactions. Pre-positioning is mandatory for any meaningful response, since both sides need to be prepared. The acquisition process has a queer pitch; the response time for the participating industries, from the issue of EOI/RFI, is something like a six months or less(during which time they are expected to create all possible relationships and prepare for a detailed response); while the process thereafter can be indefinite. Industry has played its role in adapting to the speedy response from the government by forging relationships, will the GoI reciprocate? Notwithstanding any technical differences between the two aircrafts, these are the best offers with committed government support than in any of the past acquisition cases. Delayed decision would push the nation to once again accept terms and conditions imposed by overseas sellers. We must change the destiny of Indian industry by allowing creation and sustenance of an eco-system, and not reduce it to one of waiting over the wings for some offsets related work. This is a golden period in Indian industrial progress; it is like now or never! It is imperative that the Strategic Partnership Policy is implemented in letter and spirit and the acquisition process on all four platforms is started at the earliest. In the case of Single Engine Fighters, with established relationships, the process should further speed up by just going straight to the partnerships afore. A limited tender competition has the resilience to transform itself into a strategic partnership with all the capabilities sought in terms of technologies and an enabled ecosystem. We can do it this time! —The author is an Indian Army veteran April 2018 | ET Aviation & Defence | 19

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Mission Space

A NEW ERA FOR INDIA’S SATELLITE AND SPACE DEVELOPMENT India is well on its way to master modern space technology and its various applications. A good sign, indeed


r Gautam Sharma ndia has acquired eminence in world-class space science. New space technology is being used for telecommunications, broadcasting, weather monitoring and to provide information related to agriculture, water resources, minerals and forest, to mention just as few. What originated from an intergovernmental organisation under the United Nations to provide satellitebased maritime communications, 'Inmarsat' focused on the safety of crew and ships. India was part of this thirtyseven-year-old organisation's transition into a corporate entity. Inmarsat and the Department of Space (DoS) share a common heritage and focus on contributing to the development of satellite communications in India. The Indian Space Research Organisation (ISRO) launched an ambitious plan to build new joint

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ventures with private companies to significantly accelerate the introduction of new technologies in the ecosystem. This took place in a joint seminar organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) last year, which attracted players from Russia, the United States, the UK, Japan, Thailand and many other countries. Currently, the focus is to offer Global Satellite Phone Services (GSPS) in India, especially to India's industry, government and, in the near future, to the citizens of India. In future, the focus is to look into strengthening relationships with India's satellite and space manufacturing ecosystem, which would help India's time-to-market for innovative products and also be costeffective for the global customer base. The plan is to also work for opportunities in smart city projects


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THERE HAVE BEEN MANY DISCUSSIONS IN INDIA IN RELATION TO SATELLITE COMMUNICATIONS. THIS PROVIDES THE VERY POSITIVE SIGNAL TO ALL PLAYERS IN THE DOMESTIC AND GLOBAL SATELLITE INDUSTRY THAT INDIA'S SPACE MARKET IS POISED FOR GROWTH

including projects on Internet of Things (IoT) solutions for solar plants, railways and agricultural monitoring. In the last several months, there have been many discussions and deliberations in India in relation to satellite communications. This provides the very positive signal to all players in the domestic and global satellite industry that India's space market is poised for growth. The openness of the debates and the focus on how to help the progress of the Indian space segment, also by increasing the availability of services and strengthening the domestic manufacturing ecosystem, are positive signs denoting growth. As part of the overall development in the satellite industry and applications, India will soon allow airlines to offer


In-Flight Connectivity (IFC) to passengers. With the aim at establishing the appropriate regulatory framework for the introduction of IFC in India, the Department of Communications (DoT) asked the Telecom Regulatory Authority of India (TRAI) to conduct a policy consultation on the matter. TRAI has produced a well-informed consultation document and received suggestions from many stakeholders. Last year, TRAI held an open house discussion which attracted three different segments interested in the issue—the airlines industry and its supply ecosystem, the satellite and the telecom industry. TRAI is soon likely to produce recommendations to the DoT

which will then proceed to finalise India's IFC policy.

The provision of IFC will be an important breakthrough for the Indian airline industry, as it continues to grow domestically and internationally, in competition with foreign airlines already offering such a service. The sense of urgency with which the DoT and TRAI are working on the issue is encouraging. India has an open-market economy where technology plays a central role and this should create a favourable environment for offering airline passengers the connectivity they wish for. The latest GX global satellite network operating in Ka-band has been built with aviation industry in mind. India is being envisioned as a very competitive market for IFC. It is a great idea to know the possibility for airlines to choose between different services and providers in the future. The introduction of IFC in India should be based on technology and spectrum neutrality feel the industry insiders. This means adopting a policy that is agnostic regarding which satellite spectrum bands can be leveraged to serve airlines and passengers. This will foster innovation,

future-proof the policy and encourage competition. The talks are already on with government authorities and local partners to develop synergies towards introduction of these new services. It

would be a great idea to serve Indian customers and Indian airlines at home and across the world. —The author is the MD of a company that enables maritime communications


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Expert Speak

Defence industrial partnership: Are we really ready?

Not self-reliant Despite all claims to achieve 70% indigenisation, India held the top spot for world arms import in 2013 and second largest till now

Make in India India's ‘Make in India’ initiative will pave the way for defence industry to realise its dream for self reliance and sustenance

Advent of technology and global economic environment has changed the face of warfare since World War-II r Maj Gen (Dr) Bhupinder Yadav (Retd) echnology is a great leveller with equal access to all; it will provide a different developmental model, which is equitable, inclusive and based on good governance and a culture of empathy. The Indian Defence Industrial base has been dominated by DRDO/DPSU/OFB since inception. They never focussed on technology development or upgradation on their own. Overloaded with assured orders due to nomination, resorting to 'copy-paste' production and charging the nation on cost plus basis with no accountability, have made the country dependent on import. Despite realisation, the half-hearted attempts to

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create a domestic defence industrial base is one of the missed opportunities, with extended deadlines and glaring inefficiencies that became the hallmark of the defence public sector units' functioning. It is a matter of concern, despite all boast and claims to achieve 70% indigenisation by successive governments in the last 30 years, India held the top spot for world arms import in 2013 and second largest till now. In the year 2016, India along with Saudi Arabia, UAE, China and Algeria have emerged as the top importers of arms and military services during the five year period of 2012-2016, as mentioned by SIPRI report. These countries accounted for 34 per cent of all global imports with India leading with 13 per cent for all arms imports, spending $55,923 million. However, India’s arms sales declined by 1.2 percent in 2016 as compared to 2015. India purchased 14 per cent of arms and military service from the US and 68 per cent from Russia during 2012-2016. Any selfrespecting Indian won't

Bringing change

feel proud of such an achievement. IMPORT OF DEFENCE EQUIPMENT

This is mainly due to the inertia of the Ministry of Defence and the stranglehold of the defence public sector units. Over-governance promoted conservative, cautious and risk-averse organisational culture, with procedures being paramount and outcomes secondary. Consequently, the PSUs have drifted from monopolist to bit-player due to regulatory protection relative to private-sector rivals. It is unfortunate that in the name of security, we have been using imported equipments but not letting our private sector manufacture. Although the private sector is said to have been allowed entry into defence production in 2001, it has not got any

big-ticket orders till date. Despite the rhetoric and the claimed intent to push through the procurement cycles to reduce the monopoly of the defence public sector units and to allow a meaningful role for the private sector, the status quo continues. Although, the recent initiatives are slowly revealing some of the major challenges and constraints, we hope the government will facilitate building indigenous capabilities. The 'Make-in-India' policy, is potentially a turning point in India's endeavour to have a robust homegrown private defence industrial base. India's ‘Make in India’ initiative will pave the way for the defence industry to realise its dream for self reliance and sustenance. However, the big question is, ‘Are we serious?’ All the

The government is dwelling on a review of the government entities in defence production to make them competitive and ready for partnerships

decisions would have their pros and cons, but India needs to think from all perspectives to take the best decision for its future. MAKING THE ELEPHANT DANCE

There is a need to ensure that the DPSUs are not nominated for projects by default or design. India needs to develop the entire eco-system and a robust supply chain as it is in the auto sector. The same must be for manufacturing the defence platforms involving tiered suppliers for the component and materials with a lifecycle product support to maintain, repair, overhaul and upgrade the platform. There is already an extra capacity and infrastructure in existence with OFB/DPSU and the relevant questions are:  Why national resources need to be unnecessarily spent on creating additional infrastructure privatesector to build helicopters, aircrafts, tanks and small arms, etc.?  Why don't we privatise all DPSUs to become publicly listed so that they can choose their own partners from the country's private-sector?  And most importantly, why should April 2018 | ET Aviation & Defence | 25


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ABOUT 90% OF THE MAJOR DEFENCE EQUIPMENTS PRODUCED IN INDIA AT PRESENT ARE UNDER LICENSE FROM FOREIGN FIRMS. THEY DO NOT PROVIDE THE COMPLETE 'KNOW-HOW' OF PRODUCT DESIGN WHICH IS A MAJOR PART OF THE VALUE OF A PLATFORM

evaluations, assessing technical capabilities and then getting involved in lengthy conversations on pricing and delivery, the process is not only long, but is fraught with the many perils of working in the defence sector. In the recent years, Indian private industries are contenders for several defence 'Make' projects, such as Tactical Communication System (TCS), Battlefield Management Systems (BMS) and Futuristic Infantry Combat Vehicles (FICV). They are still in the early stages of procurement despite taking double the estimated time. OEMS’ CONCERNS

the government be manufacturing and is it time to bite the bullet and go in for privatisation of DPSU/OFB? It is understood that the government is dwelling on a review of the government entities in defence production to make them competitive and ready for partnerships and joint ventures. However, keeping the past history in view, it remains to be seen if the government will make the 26 |ET Aviation & Defence | April 2018

elephant dance. SELECTING PARTNERS

The strategic partnership policy intends to identify the private defence companies which can forge a joint venture with foreign companies to build major equipment. Selecting an Indian private company for a mega project is a long process. From inviting bidders to starting financial

About 90 per cent of the major defence equipments produced in India at present are under license from foreign firms. They do not provide the complete 'know-how' of product design which is a major part of the value of a platform. Consequently, the desired level of indigenisation is not achieved, examples being SU30, T-90 and 84mm rocket launchers that remain dependent during their lifecycle for maintenance and upgradation, which is quite expensive. OEMs clearly indicate their unwillingness to transfer the technologies to Indian companies unless there is substantial improvement in the IPR and a technologically safe environment in India. Another important factor that

has influenced the OEMs’ reluctance to transfer critical technologies to India is the technology export experiences the US, European and Japanese have had with China. Analysing from the OEMs’ perspective, entering into a manufacturing arrangement for codevelopment/co-production, subcontracting, contract manufacturing and licensed production, etc., which may require a transfer of technology, poses significant legal and commercial risks as tabulated. Some of the other IPR and related risks rated highest by the OEMs are:  Illegal sharing of software codes, blueprints, specifications, industrial designs, trade secrets and confidential know-how  Patent and design infringement  Piracy and copyright violations  Counterfeiting of products and components manufactured from blueprints, algorithms of OEMs  Indiscriminate production of licensed technologies  Indiscriminate copying of processes and proprietary frameworks  Non-payment of royalties and licence fees  The larger share of the ownership likely to remain with the Indian partner, taking control of the business and thus, conflict of interest  A nominated partner may fail to absorb the technology in the right way

due to lack of expertise. In view of the above, OEMs insist that Indian partner selection needs to be based on its ability to absorb technology, financial capability, experience in managing joint development arrangements and strong ethical and governance standards and not nominated by the government. NEAR-TERM OPPORTUNITIES: A PERFECT STARTING

More than half-a-dozen mega projects, collectively worth over `3.5 lakh crore, remain stuck at different stages without the final contracts being inked. They range from Future Infantry Combat Vehicles (FICVs), light utility

helicopters and naval multi-role choppers to new-generation stealth submarines, Mine Counter-measure Vessels (MCMVs) and Fifth-generation Fighter Aircrafts (FGFA), to name a few. In addition, there is a scope to launch at least 8-10 ‘Make in India’ programmes every year. These projects, collectively worth over `1 lakh crore or one percentage point of India's GDP, can deliver a boost to the indigenous industry, particularly the development of indigenous electronics and spurred job creation. The indigenous platforms can deliver their true force multiplier effect. Defence sector indigenisation has a



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OEMs. Hopefully, some of the measures will be adopted in national interest to establish a competitive defence industrial base and devolve more freedom and powers to the private sector to enter the fray and be equal partners in making the ‘Make in India’ dream successful.

Ways through which the ‘Make in India’ dream can be made possible Create conditions conducive for the private industry to take an active role in this endeavour

THE WAY FORWARD

Enhancing potential of Indian industry in indigenisation, broadening the defence R&D base and manufacturing of defence equipment can be facilitated by the government through several policy measures As we go along, the industry has to plan for global outreach for their products and explore external markets

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potential to create over a quarter million jobs, save about 10 Billion USD in foreign exchange, over the next decade, besides building national capability, and capacity to support platform and equipment

requirements, across the spectrum of technologies. There is a great need to create an ecosystem that will allow Indian companies and professionals to learn, innovate and export back to the

Achieving substantive self-reliance in the design, development and production of equipment required for defence in a reasonable time frame is possible. There is a need is to create conditions conducive for the private industry to take an active role in this endeavour. Enhancing potential of Indian industry in indigenisation, broadening the defence R&D base and manufacturing of defence equipment can be facilitated by the government through several policy measures. Giving weightage to indigenous products in the acquisition process apart from increasing the participation of the private sector – these changes once incorporated will also somewhat enhance absorption of world-class technologies making India a starting place for cutting-edge innovation.

ABOUT 90% OF THE MAJOR DEFENCE EQUIPMENTS PRODUCED IN INDIA AT PRESENT ARE UNDER LICENSE FROM FOREIGN FIRMS. THEY DO NOT PROVIDE THE COMPLETE 'KNOW-HOW' OF PRODUCT DESIGN WHICH IS A MAJOR PART OF THE VALUE OF A PLATFORM These changes will create an impact on the business strategies of companies as under:  Level playing field for domestic firms with DPSUs  Encourages Indian companies to begin design and development within the country  Encourage domestic and foreign players to collaborate to absorb technology  OEMs need to reorient India strategy  OEMs to provide support in lifecycle support and upgrade. As on near-term basis, Indian defence market is attractive, but as we go along, the industry has to plan for global outreach for their products considering that there are no assured orders on long-term basis and external markets need to be explored. With the increasing pressure of production costs and reduction in military's demands,

the civilian and military production processes are compelled to converge along the entire range of technology hierarchy to achieve economies of scale. This change is evident as systemisation of production becomes a universal technique with widespread use of computer-aided design and robotics leading to automated manufacturing processes. Flexible or lean manufacturing techniques which were successfully innovated in the Japanese motor car industry are being incorporated in military production because of lower unit demands and higher technological and cost competitiveness.

—The author is MD at a research company assisting the Indian aerospace and defence market April 2018 | ET Aviation & Defence | 29

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Staying Ahead

AEROSPACE: The future workforce

Aerospace and defence manufacturing can be a suitable and desired career path for the engineering talent pool of India


r Aravind Melligeri he aerospace industry in India is witnessing a radical change. With Prime Minister's 'Make in India' aligned with the aerospace industry's growth and global players setting their eyes on India, the country is set to be a major contender in aerospace globally. To meet this rapid growth, it is critical for aerospace workplaces to continue to evolve and adopt global standards. New trends are reshaping traditional methods of working. Major advances in robotics, artificial intelligence, analytics, Internet of things and machine learning are ushering in a new age of automation in the industry. A digital workplace has now become the foundation that defines this new age. There is a demand for new approaches and streamlined processes. There are also cultural shifts happening in workplaces with organisations becoming people centric with a collaborative ethos.

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Stagnant, traditional roles are also expected to disappear over time. Before organisations adapt their business models and human resources to these emerging trends, there is a need to understand and curtail the existing challenges. This will ensure that there are no cracks in the foundation when workplaces finally embrace the future. A primary issue being faced by the Indian aerospace industry is the lack of skilled human resources. The backbone of any industry is their human resources and the capabilities they bring to the workforce. A niche industry like aerospace with a zero error policy, requires a highly skilled and effective workforce that can act as a differentiator. This will help aerospace companies meet the growing demands and stay ahead of the competition. Countries like France have dedicated private schools such as Institut Superier de l'Aeronautique et de l'Espace (ISAE), Ecole Nationale de l'Aviation Civile (ENAC) in Toulouse and Ecole Nationale Superieure de Mecnique et


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A NICHE INDUSTRY LIKE AEROSPACE WITH A ZERO ERROR POLICY, REQUIRES A HIGHLY SKILLED AND EFFECTIVE WORKFORCE THAT CAN ACT AS A DIFFERENTIATOR. THIS WILL HELP AEROSPACE COMPANIES MEET THE GROWING DEMANDS AND STAY AHEAD OF THE COMPETITION

d'Aerotechnique (ENSMA) in Poitiers to train engineers and as the industry showed growth, they received substantial interest from their government as well. Even though the Indian Government has promoted the aerospace industry, it is still not considered as a prime career choice by the millennials. Job fairs, in-school presentations and internships are a great way to encourage students to pursue a career in aerospace. Social media campaigns which are directed towards students and parents will definitely help change the ambivalent attitude towards the industry. The existing curriculum also has to be


updated so that the graduates can be industry ready. Even though India is now being considered as the global hub for aerospace manufacturing with their quality of products, low cost labour and competitive prices, the existing talent pool is unable to meet the growing demands. Training and development plays an integral role as the employees have to be upskilled at regular intervals to stay relevant and meet global quality standards. There is a need to have effective HR strategies to attract, nurture and retain the right talent. Also, women in aerospace are mostly limited to just

non-technical roles such as administration, programme management and finance. They are quite underrepresented in the core technical areas. Aerospace companies should include diversity as a part of their core values to encourage more women to aspire for a career in this field. The global workforce is rapidly ageing. The aerospace workforce that existed in Western countries is growing older and the organisations that hired it are looking overseas to fill the vacancies that will be left. Globalisation, improved connectivity and the lowering of trade barriers

have ensured that countries such as India can make the most of this opportunity. The government and the aerospace manufacturers of India ought to take note of this and work towards the training and skilling of the youth accordingly. Millennials need to be drawn towards the sector. The IT bubble is eventually set to burst, with lay-offs and hiring freezes across the sector. Aerospace and defence manufacturing can be a suitable and desired career path for the engineering talent pool of India in light of this. Millennials do not want to wait for decades to accomplish tasks and that is something aerospace manufacturers have to bear in mind. They need to develop programmes with clear milestones and deliverables. The Indian aerospace industry has caught the world's attention and workplaces are now striving to achieve global technical and manufacturing capabilities. Good capabilities can minimise costs and increase efficiencies while maintaining the high standard of quality and delivery. Along with cost advantages, workplaces can also provide high volumes of production with the assistance of efficient technology. It is now evident that companies need to become even more efficient to stay on top. They could optimally utilise mature technologies in new and different ways, develop new approaches for existing challenges or start exploring new cutting-edge technologies and solutions. It is essential for aerospace workplaces to incorporate radical thinking, new technologies and efficient business models. By prioritising innovation and people, aerospace workplaces will be prepared to fly through any turbulence. —The author is CEO and Founder of global aerosystem and aerostructure manufacturing company


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Future Forward

BLOCKCHAIN revolution in strategic sectors While people are beginning to recognise the impact of cryptocurrencies such as bitcoins, etherium and the like, the underlying blockchain technology developed to validate these transactions is perhaps far more widespread and useful

solving each puzzle takes substantial computational power) on those who attempt to tamper with the ledger. Originally designed as an accounting system for bitcoins, blockchain technology is now being used to leverage many applications. Industry players in agriculture, shipping, aviation and retail have begun to take notice of its potential to improve business processes. For example, IBM and Walmart have partnered with Tsinghua University in China to use blockchain technology to track food procurement, from farm to fork, digitally. People have only begun to explore the varied applications of blockchain and the technology and its varied applications are not as widely known in India yet. In the strategic defence and aerospace sector, it can be used to immutably record transactions, settle accounts, track component installations, and most importantly, monitor procurement of goods and technologies related to the manufacturing of arms, armaments and weapons of mass destruction (WMD). RELEVANCE IN DEFENCE SECTOR

Applications in cyber security such as ensuring traceability of sensitive files is one of the more obvious uses of

(MRO) can also use blockchains to track the current configuration and health of each equipment on a platform. Utilising blockchain to create a single, secure, and continuously updated record of configuration allows for the virtual representation of the platform and tracking any flaw in the system directly to its point of origin. During every maintenance or overhaul cycle, a new block will be created to reflect repairs or replacement of parts and assemblies. For example, each part or component of an aero engine can have its own tokenised serial number within the blockchain, which can be used to track the number of hours it has flown, idled, started and shutdown,

Nascent stage People have only begun to explore the varied applications of blockchain and the technology and these are not as widely known in India yet

Huge potential India has the opportunity to become a pioneering force in the application of blockchain technology to the strategic sector

r Chiraag Samaddar

Cleaner process

alk to someone about blockchains, and you will most likely hear them mention the bitcoin valuation explosion of the last year. At its core, a blockchain is a digitised, decentralised, public ledger system. Instead of storing and accounting transaction data on a central server database, it is encrypted, and shared with each member on the network. These time-stamped data 'blocks' are recorded and added to the database in chronological order, allowing participants to keep track of all transactions. The blocks are 'chained' together as every block contains data on the contents of the previous block. If anyone wants to cheat the system by trying to erase or forge an entry, they will need to solve an encryption 'puzzle' not only for that block where the data was first lodged, but every subsequent block, each of which will require a new sequence of puzzles for their systems to solve. As a result, blockchain networks greatly reduce the probability of compromise due to their 'decentralised' nature and by imposing significant computing costs (as

Blockchains can significantly reduce the paper work and manual inspection requirements, thereby addressing potential falsification issues

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blockchains in the strategic defence sector. However, this technology has many more far-reaching applications across the physical and digital supply chain. Integrating blockchain technology with satellite communications provides a means to manage information whilst maintaining crypto security without the need to trust third-party systems and hardware facilitating the communication. 'Defense Advanced Research Projects Agency' (DARPA) of the US Department of Defence is already seeking proposals to "Create a secure messaging and transaction platform that separates the message creation, from the transfer (transport) and reception of the message using a decentralised messaging backbone to allow anyone anywhere the ability to send a secure message or conduct other transactions across multiple channels traceable in a decentralised ledger." So far as manufacturing is concerned, tracking the purchase of hundreds of thousands of parts from a global web of sub-suppliers is difficult and costly. Utilising blockchain technology would enable instant monitoring and tracking of all parts, components assemblies from various suppliers around the world. Maintenance, Repair and Overhaul

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Relevance of blockchain technology in defence sector Applications in cyber security such as ensuring traceability of sensitive files is one of the more obvious uses of blockchains in the strategic defence sector Integrating blockchain technology with satellite communications provides a means to manage information whilst maintaining crypto security Utilising blockchain technology would enable instant monitoring and tracking of all parts, from various suppliers around the world

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its performance parameters, its replacement schedule, spares consumed and the source, the name of the engineer who installed the component, etc. Such applications are already being put in practice by OEMs such as Boeing. Lockheed Martin recently announced plans to integrate blockchain into its supply chain for risk management, to maintain data integrity, and to streamline problem discovery process. Meanwhile, Boeing has implemented IBMs Watson Internet of Things (IoT) driven blockchain technology to create its aircraft's 'digital twin' to anticipate and mitigate problems before they occur. IN EXPORT CONTROL

Efforts to control the spread of sensitive technologies which can be used to create WMDs consists of a fragmented system of international agreements, informal multilateral arrangements and convoluted national legislation. Export licensing, economic sanctions and mandating corporate compliance and due diligence programmes are some of the tools used to enforce policy directives. The pervasiveness of inherent implementation gaps in global trade has made it increasingly difficult to keep sensitive technologies and dual use items safe from proliferators. Unsurprisingly, enforcement practices are sometimes exploited by shell companies and intermediaries to camaflaouge illicit production and procurements under a maze of transactions which are near impossible to trace until it is too late. Blockchains can significantly reduce the


paper work and manual inspection requirements, thereby addressing potential falsification issues. Information such as export control classification numbers, end-users and end-use information, and other relevant information can be uploaded to a regulatory blockchain network authority. As this information now exists on a distributed ledger, it can easily be verified by enforcement agencies. One of the many advantages of a blockchain technology is that it enables mutually distrustful parties to collaborate without needing a trusted third party. In cases like export control where multiple entities across countries are involved, all parties can be sure that the data is not being tampered with and the data is collectively owned by all of them. Thus, utilising blockchain to track the movement of components can curb unauthorised parties from obtaining export-controlled goods fraudulently and help identify licenced suppliers who may be diverting their goods to non-state

actors. For the system to be effective, the blockchain system must include all actors in the supply chain; producers, sales firms, logistics and shipment, and insurers.

the network. This is called a '51 per cent attack'. However, actually being able to manipulate 51 per cent of the nodes to validate a fraudulent transaction is virtually impossible. >> As the size of a given blockchain ledger grows, so do the network and computational resources required to maintain it. CONCLUSION

CHALLENGES

Despite the wealth of benefits seemingly being offered by the adoption of blockchain technologies, it is not yet perfect. Given the massive number of players involved in the supply chain, inevitable diseconomies of scale are to be expected. Users need to be aware of potential shortcomings: >> Blockchains are only as efficient as the number of nodes available on the network to verify transactions; >> Blockchain may be prone to error if data is recorded incorrectly. A blockchain 'oracle', can be used to verify data entry. An oracle is a third-party service independent of the blockchain. The oracle submits the information to a blockchain to be used by smart contracts; >> An attack on database integrity does not need to alter information on the entire chain. If more than half the nodes are modified to accept the change, it will be recognised as trustworthy by rest of

Blockchain is still considered a nascent technology and firms are only beginning to test its potential. Furthermore, it is not restricted technology and variants of the source code can be found on open source forums such as GitHub. Hence, India has the opportunity to become a pioneering force in the application of blockchain technology to the strategic sector. Logistics heavy and data driven organisations such as MoD, MHA, MEA, the Department of Space, the Director General of Foreign Trade, to name a few, should consider adopting this decentralised cryptographic ledger technology. At the international level, participating countries of trade control coalitions such as the Nuclear Suppliers Group, Wassenar Arrangement, Australia Group and Missile Technology Control Regime can greatly benefit from blockchain's impact on reducing fraud and diversion. By shifting to a

multilateral and decentralised ledger system, the 'trust' component placed on a third party can be replaced with an architecture which is computationally secure. However, serious efforts need to be taken by policymakers to develop a firm understanding of civil and private sector implementations of blockchains. Formulating acceptable multilateral intergovernmental assurances, and export licensing procedures concerning blockchain technology is necessary to reduce uncertainty surrounding the new technology. The existing laws and regulations related to export controls are not designed to take advantage of blockchain technology. Policymakers must hurry to preempt potential roadblocks by putting in place a robust legal and regulatory framework, leveraging the secure benefits of this technology, otherwise authorities may find themselves caught offguard. While the jury may be out on whether the 'Bitcoins Bubble' is set to burst, blockchain-based applications are here to stay. The technology needs to be incorporated in the strategic aerospace and defence sectors in terms of compliance, manufacturing and even maintenance in the near future. —The author is Asst Director (Aero and Def) FICCI, New Delhi April 2018 | ET Aviation & Defence | 37

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Deep Mission r Air Marshal M Matheswaran (Retd)

INDIAN NAVY: MODERNISATION CHALLENGES AND AIRCRAFT CARRIERS APART FROM ENSURING THE PRIMARY TASK OF MARITIME SECURITY, NAVAL SHIPS SAIL ACROSS THE OCEANS TO PROMOTE PEACE AND HARMONY, AND YET FACE CHALLENGES THAT NEED TO BE TAKEN CARE OF


s the Navy celebrated its 46th Navy Day on December 4, 2017, there were serious concerns about its force structure and the slow pace of its modernisation process. That the modernisation process of the other two services was equally of serious concern made it worse in the context of budget allocation and prioritisation. Unlike the Air Force and the Army, the Navy serves a multi-dimensional purpose, particularly for an emerging power like India. Apart from ensuring the primary task of maritime security, naval ships sail across the oceans throughout the year to promote peace, harmony, goodwill, and project power. Navy's role in humanitarian and disaster relief missions is one of its strongest roles that enhance the country's international relations and image. In the context of all these roles, the size of India's naval force structure needs to be commensurate with its rising global power image. Given the hierarchical nature of the international system, great powers and emerging great powers have to be conscious of the importance of their military power and its effectiveness. Given the acute competition for a share in the budget pie, the Indian Navy faces considerable challenges. Much like the Air Force, the Navy is equally capital intensive, time critical, and hence, needs long-term planning, financial commitment, and

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implementation. Ship building is a long-time activity and needs major investments of time, capital, and design knowledge to prevent obsolescence and operational irrelevance. Hence, the importance of long-term plans such as the 30-year ship building plans assume major relevance in the context of rigid adherence to timelines and implementation. Unfortunately, our plans are conspicuous for nonadherence, inconsistency, and nonimplementation. Navy's force structure is complex and needs right balance between surface, sub-surface, and aerospace capabilities. While submarines provide a very potent and critical capability to major navies, it is important to recognise the fact that modern navies and armies become sitting ducks without their integral aerospace capabilities. Recent controversies with respect to Indian Navy's aircraft carrier requirements have the potential of putting its force structure balance in complete disarray. The Navy has planned for a force structure of 200 ships by 2027, which is inclusive of 120 capital ships. Attainment of this objective looks almost impossible, given the disruptions and delays in ship and submarine building plans and the delays in indigenous aircraft carrier plans. Currently, the navy has about 145 ships, with barely 70 capital ships. With a number of ships and submarines falling due for replacement, and inadequate budget

Holistic plan The Navy is capital intensive, time critical, and hence, needs long-term planning, financial commitment, and implementation

Balanced growth Navy's force structure is complex and needs right balance between surface, sub-surface, and aerospace capabilities

Future uncertain With many ships and submarines falling due for replacement, and inadequate budget allocations, the Navy will find it difficult to meet its modernisation plans

April 2018 |ET Aviation & Defence | 39


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allocations, the Navy will find it difficult to meet its modernisation plans. Navy needs a strength of at least three carriers in order to maintain an optimum two carrier task force structure. MOD bureaucracy seems to have taken the view that the aircraft carrier is wasteful for India on account of its exorbitant costs, as it entails a large number of support ships in the carrier task force, and the view that increasing role of UAVs and its possibility of replacing the manned fighter aircraft makes the aircraft carrier irrelevant. The former Defence Minister reportedly supported this view and has pushed for changes in the modernisation plans. There are serious


flaws in this approach, and it can be very detrimental to India's maritime security and prowess. Firstly, everyone agrees that the Indian Navy's current submarine force structure is alarmingly small and mainly obsolete. There is no doubt that the submarine strength and quality needs urgent attention and beefing up. India needs at least 25 conventional submarines, in addition to its nuclear deterrence submarines. However, it would be imprudent to drop the plans on aircraft carrier programmes on account of the primacy for submarines. Similarly, the view that UAVs would replace manned fighter aircraft is a fallacy. Manned fighter aircraft will continue to dominate the skies and aerospace force structures in the 21st century.

Carrier battle groups, along with submarines, are essential for India's maritime security, particularly in its roles and responsibilities as a great power. Rise of China, accompanied by its fast paced military modernisation, its aggressive territorial and maritime actions, and its dominant politico-economic strategies such as the BRI, has given rise to serious concerns across the world, more so in our region. China's strategic collusion with Pakistan with programmes such as the CPEC corridor and Gwader port development, its string of pearls strategy, and its increasing economic and developmental activities in India's neighbourhood are clearly aimed at marginalising India's relevance in Asia and the world. China's naval capability is expanding at a significant pace. In April this year, China launched its second and fully indigenous carrier called ‘Type 001A’, a 65000 ton carrier that can operate 40 aircraft, and is likely to be inducted into PLAN by 2019-20. The third carrier, ‘Type 002’ with 80000 ton displacement, is reportedly under construction. The PLAN is likely to operate three to four carriers by 2025, and plans to complete the construction of six carriers, including two nuclear powered 100000 ton Super Carriers by 2030. Simultaneously, it has developed J-15 carrier based aircrafts, and the fifth generation J-31 should complete its development by 2025. China's supply of eight submarines to Pakistan is a matter of serious concern. It is most likely that China would be operating four aircraft Carrier strike

Moving towards strengthening India’s maritime power Indian Navy's current submarine force structure is alarmingly small and mainly obsolete. There is no doubt that the submarine strength and quality needs urgent attention and beefing up India needs at least 25 conventional submarines, in addition to its nuclear deterrence submarines Carrier battle groups, along with submarines, are essential for India's maritime security, particularly in its role as a great power Navy needs a strength of at least three carriers in order to maintain an optimum two carrier task force structure



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groups by 2030. It is no rocket science to realise that South China Sea and the Western Pacific can barely accommodate more than one carrier strike force, and hence, the obvious conclusion is that PLAN's two carrier strike forces are destined to operate in the Indian Ocean and the Arabian Sea; thus achieving China's long cherished dream of dominating the Indian Ocean. PLAN's naval capabilities will be bolstered by China's increasing space assets and capabilities. The ‘Beidou 2’ global navigation system will be operational by 2020, and will have very significant economic, technological, and commercial impacts and influence on South East Asia and the Asia-Pacific. These developments clearly spell trouble for India, unless the Indian Navy's plan for Two Carrier Strike forces is implemented in a well-planned and time bound programme.


THE INDIAN NAVY HAS OPERATED AIRCRAFT CARRIERS FOR MORE THAN HALF A CENTURY. HENCE, FROM AN OPERATIONAL PERSPECTIVE, THE NAVY HAS IMMENSE SKILL LEVELS THAT CAN BE EASILY SCALED UP TO MEET THREE CARRIER MANNING LEVELS It must be remembered that unlike PLAN, the Indian Navy has operated aircraft carriers for more than half a century. Hence, from an operational perspective the Navy has immense skill levels that can be easily scaled up to meet three carrier manning levels. Here, China faces huge challenges in the short term, and they are conscious of it. This advantage will vanish if our strategies are misplaced. Aircraft carriers are capital intensive, but a well planned programme will boost Indian ship building industry, create a huge cluster of MSMEs, increase skill levels, and provide thousands of highly skilled jobs in both private and public

sectors – a perfect opportunity for realising multiple objectives of ‘Make in India’ and ‘indigenisation’. More importantly, it will result in a cascading positive impact on R&D, maritime awareness, academia, and engineering. The aircraft carrier will continue to remain the main capital ship of great powers’ navies in the 21st century. India will do well to remember this. —The author is AVSM VM Phd (retd) and a former Deputy Chief of Integrated Defence Staff, HQs IDS


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Taking Off

IoT AND DISRUPTIVE TECHNOLOGIES IN COMMERCIAL AVIATION

r Dheeraj Kohli irlines were among the first organisations to get on board the data bandwagon; however, many have found the volume difficult to manage. Even today, the volumes of data being generated, stored and processed is growing exponentially. Such data, whether it is coming from on-board sensors, aircraft maintenance records, passenger data, and/or route schedules has been critical to helping airlines discover important insights, which in turn have led airlines to improve the efficiency and quality of service. The Internet of Things (IoT) represents a natural extension to this, presenting great promise to the commercial aviation industry for its ability to absorb large volumes of data, connected directly to how the customer is using it, and leverage that data to drive decision-making processes. There are several areas, in particular, that IoT holds great potential for the aviation industry, including reduced fuel consumption, more efficient allocation of resources, decrease in unplanned downtime through real-time predictive maintenance, optimisation of customer service and improved route planning.

A

REDUCING FUEL CONSUMPTION

Fuel costs represent one of the highest incurred expenses for any airline. A major potential application of IoT in the Aviation Industry is reducing the operational expenses incurred by reducing an aircraft’s fuel consumption. Pratt & Whitney’s Geared Turbo Fan (GTF) engine, launched in 2015, is an ideal illustration of how IoT makes this possible. The GTF engine is fitted with close to 5,000 sensors which can generate up to 10 GB of data per second. Why collect such vast amounts of data? The GTF


engine uses these large pools of data to construct artificial intelligence, which in turn, predicts the demands of the engine in order to adjust thrust levels. Consequently, GTF engines have demonstrated a drop in fuel consumption by up to 15 per cent, as well as reducing emissions and engine noise. The application of IoT can also expedite route planning. Better navigation paths reduce total miles flown, lower emissions and noise, and improve access to airports. In this way, the combination of flight data management and fleet optimisation is also made possible by the application of IoT. PREDICTIVE MAINTENANCE

Needless to say, for an asset-heavy industry like the Aviation Industry, downtime of aircrafts can lead to hefty losses in revenue. With the help of sensors and connectivity, the IoT is reshaping traditional manufacturing and industrial processes, which can be best described as a paradigm shift from ‘repair and replace’ to ‘predict and prevent.’ This new IoTenabled maintenance is known as predictive maintenance. Specifically, predictive maintenance is the process of monitoring data from an equipment or product based on a pre-defined set of monitoring parameters. Such continuous monitoring of data can predict anomalies in the system that, in turn, can help initiate maintenance activities before a malfunction. This helps to reduce the breakdown or down-time of the equipment. Today, aircrafts have sensors attached on important components and machinery, such as the engines, wings, valves, and landing gear. The data collected by these sensors can then be analysed in real time to identify symptoms of failure or malfunction and address them in a timely and preventive manner. OPTIMISATION OF CUSTOMER SERVICE

The application of IoT is not restricted to the body of


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the aircraft alone. There is significant scope for its usage in buildings such as airports too. There are airlines which are already harnessing a range of data to enhance the travel experience for its passengers. They have launched mobile-driven initiatives in partnership with airports such as London Gatwick, which combines live data from the airport’s systems with Google indoor maps and passenger booking details, location and flight time to provide personalised instructions and updates for passengers. These include check-in reminders, directions to bag drop, departures and gate location, plus real-time gate and baggage-belt push notifications sent directly to the mobile phones of the passengers. The utilisation of IoT technologies offers numerous ways in which customer service and flyers’ experience can be enhanced. Smart baggage tracking, automated check-ins, the use of biometrics to decrease waiting time in queues—disruptive technologies can be utilised to reduce the stress and hassle of flying, and more importantly, provide passengers with more time and

THE APPLICATION OF IoT CAN ALSO EXPEDITE ROUTE PLANNING. BETTER NAVIGATION PATHS REDUCE TOTAL MILES FLOWN, LOWER EMISSIONS AND NOISE, AND IMPROVE ACCESS TO THE BUILDINGS SUCH AS AIRPORTS

money to spend on retail, such as food or merchandise. FUTURE WISE

There is an ever-increasing demand for aircrafts globally, particularly in markets such as the AsiaPacific and the Middle-East. The question that airlines need to ask themselves is how can revenues be maximised in the light of growing competition? The answer may lie in adopting disruptive technologies to improve operational efficiency and optimise customer service. The Aviation Industry has a good head start when it comes to utilising leading edge technology. The key to future success for players in this space is to embrace the next generation of disruptive technologies such as IoT. This will bring to light bigger opportunities for the airlines of tomorrow where making data-driven decisions can help them sail through any turbulence. —The author is VP & Global Head, Travel & Transportation in an IT company



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News bytes

GOVERNMENT PAVES WAY FOR `60,000 CRORE DEAL TO BUY 83 TEJAS FIGHTER JETS he government has paved the way for the manufacture of T 83 indigenous Tejas Mk-1A Light Combat aircraft by Hindustan Aeronautics Limited in a deal which is likely to be worth close to `60,000 crores. This would be among the largest ever deals the government has sanctioned for the domestic arms sector and is a huge boost for the government's 'Make in India' defence manufacturing programme. It is also the biggest endorsement yet for the Tejas fighter which has been in the process of development for more than three decades and entered Squadron Service with the Indian Air Force just last year. With no other firm competing for this contract, the Request for Proposal (RFP) issued by the Defence Ministry will almost certainly translate into a tender for the supersonic fighter jet. At the moment, the first Tejas squadron of the Indian Air Force is operating five Tejas jets in what is known as the Initial Operating Capability or IOC configuration. This variant does not have the full scale capabilities the Air Force expects. Another 15 jets in this configuration are presently on the assembly line. A further 20 jets in Final Operating Configuration or FOC will be manufactured once the fighter completes a series of protracted trials that are presently being undertaken. Though this configuration is acceptable to the Indian Air Force, it still falls short in key technology and capability areas which the Mk-1A variant will overcome.

The MK1-A will operate a state of the art AESA or Active Electronically Scanned Phased Array radar. This radar can beam radio waves electronically over a large area ahead of the jet to detect several targets on the ground or in the air simultaneously. The Tejas Mk-1A will also feature enhanced electronic warfare capability which will include a jammer to confuse the radars of enemy jets or surface-to-air missile systems. This jammer will either be mounted externally on the wing of the jet, or will be partially recessed within the fuselage of the fighter. Finally, the Tejas Mk-1A will be far more maintainable than the variant of the jet presently in service. This will be done through the incorporation of dozens of small modifications suggested by Indian Air Force engineers and pilots. This is a priority area for the IAF which wants guarantees that the Tejas will have a high availability rate whenever it is needed for missions. The order for Tejas fighters comes at a time when the government is considering the acquisition of a second, larger class of single-engine fighters in a deal likely to be worth upwards of $10 billion for more than 100 fighters. The two main competitors for this deal, Lockheed Martin of the US and Gripen International of Sweden are pitching their F-16 Block 70 and Gripen E/F fighters respectively.

BEL CROSSES `10,000 CRORE LANDMARK TURNOVER

INDIA GETS ACCESS TO STRATEGIC OMAN PORT FOR MILITARY USE, CHABAHAR-GWADAR IN SIGHT

avratna Defence PSU Bharat Electronics N Limited (BEL) has achieved the landmark turnover of more than `10,000 Crore

a strategic move to expand its footprint in the Indian Ocean Ifornregion, India has secured access to the key Port of Duqm in Oman military use and logistical support. This is part of India's maritime

(provisional and unaudited) during FY 2017-18, sustaining double digit growth over the previous year's turnover of `8,825 Crore. Some of the flagship projects executed during the year include Integrated Air Command and Control System (IACCS), Weapon Locating Radar (WLR), Hand Held Thermal Imager (HHTI), Akash Weapon System (Army), Naval Fire Control System, Integrated Communication System, 3-D Tactical Control Radar (TCR), Electronic Warfare Systems, L-70 Gun Upgrade, Electronic Voting Machines (EVM) and Voter Verifiable Paper Audit Trail (VVPAT). BEL's Chairman & Managing Director, Gowtama MV, said: "The focus on indigenisation for selfreliance has continued with more vigour, besides capacity building, expansion and enhanced outsourcing to SME sector. Also, BEL has been able to maintain good order acquisition this year. These efforts will complement BEL to sustain growth, capitalise future opportunities and consolidate market leadership in the Defence business."

strategy to counter Chinese influence and activities in the region. This was one of the key takeaways of Prime Minister's visit to Oman where he met Sultan of Oman, and an annexure to the Memorandum of Understanding on Military Cooperation was signed between the two countries. Following this pact, the services of Duqm port and dry dock will be available for maintenance of Indian military vessels. The Port of Duqm is situated on the southeastern seaboard of Oman, overlooking the Arabian Sea and the Indian Ocean. It is strategically located, in close proximity to the Chabahar port in Iran. With the Assumption Island being developed in Seychelles and Agalega in Mauritius, Duqm fits into India's proactive maritime security roadmap. Recently, Duqm has seen a rise in Indian activities. In September last year, India deployed an attack submarine to this port in the western Arabian Sea. A Shishumar-class submarine entered Duqm along with naval ship INS Mumbai and two P-8I long-range maritime India gets access to strategic Oman port for military use, reconnaissance aircraft. The naval units were on a month-long deployment with the aim of enhancing surveillance and cooperation. India and Oman noted that the MoUs on cooperation in maritime security and between Coast Guards of the two countries has provided a firm foundation for deepening institutional interactions.


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