Defense Technology International - June 2008 - (Page 28)

DISPATCHES GLOBAL GOLD RUSH Companies seek local partners for business boom in India NEELAM MATHEWS•NEW DELHI I ndia’s defense procurement policy on offsets is intended to leverage the country’s military buying power to acquire advanced technology. The o sets requirement, coupled with the scheduled release in May of India’s Defense Procurement Policy 2008, which outlines procurement plans and expenditures, has many companies intensifying e orts to ﬁnd local partners so they can bid on contracts. With $30 billion in procurement slated for the next ﬁve years, India seeks to develop its defense industry by mandating that up to 50% of the value of contracts be in the form of o sets. India has a number of major projects planned or underway, notably the $10-billion Medium Multirole Combat Aircraft (MMCA) program (DTI October 2007, p. 22). “A major challenge for us is gaining access to necessary technology, as hardware is the core of the air force,” says Air Chief Marshal Fali Homi Major, chief of the Indian air force. Although many experts question the economic value of licensing military production to India, companies and government agencies are moving to take advan- Boeing’s F/A-18 ﬁghter is a candidate for the Medium Multirole Combat Aircraft program. tage of business opportunities in India. “Technology is playing an increasing role in military hardware. We would be happy to share this with India’s defense industry,” says A.J.D. Pawson, head of Defense Export Services, a U.K. government organization that promotes business for British manufacturers. “We want to participate in India’s industrial growth,” says Stefan Zoller, CEO of EADS Defense and Security. “We are aware that expectations are high for technology transfer, and are o ering cutting-edge products.” EADS has been talking with the Electronics and Radar Development Establishment of India’s Defense Research and Development Organization (DRDO) to co-develop active electronically scanned array (AESA) radar for the Tejas Light Combat Aircraft program. Defense Procurement Policy 2006 speciﬁed technology transfer on AESA radar as one element of the request for proposals (RFP) sent to bidders for the MMCA program, calling for 126 new ﬁghter aircraft. Tata and EADS Defense and Security recently announced plans to partner on the army’s $1-billion advanced tactical communications system project. An RFP was sent to more than 40 companies in 2007, and contracts are expected later this year. As the program lead, Tata is responsible for product development and delivery. EADS will be responsible for network architectural design and integration. Raytheon, which signed a memo of understanding with Precision Electronics Ltd. to jointly develop and provide communications technology for the military, is responsible for radio systems design, precision electronics, ruggedizing, production support, integration and security. Tata Group formed two subsidiaries last year to capitalize on defense spending and o sets requirements—Tata Advanced Systems and Tata Industrial Services. Their partnerships include: Sikorsky Aircraft. Manufacture of S-92 helicopter cabins in India. The air force is buying 12 VIP/utility helicopters to replace Russian Mil Mi-8s. Boeing. Manufacturing worth more than $500 million. This covers products across Boeing’s product line, including components for the F/A-18E/F fighter, which Boeing is submitting for the MMCA. Urban Aeronautics. The Israeli company will manufacture and market UAVs based on its Fancraft vertical takeo and landing technology. Israel Aerospace Industries. Develop, manufacture and support a range of products, including missiles, UAVs, radars, electronic warfare and homeland security systems. Thales. Supply optronics for the MMCA, as well as technology for current and future airborne platforms. Not everything is available to India, though. While the navy is exploring the purchase of six Northrop Grumman E-2C maritime patrol aircraft, it wants the more advanced radar in the E-2D, which will be ready by 2011, but hasn’t been cleared for export. Northrop Grumman o cials say an E-2C platform upgrade may be possible. U.S. government technology-export clearances may pose challenges to the deal, says Tom C. Trudell, manager of international business development at Northrop Grumman. But how much India can participate in the program via o sets is also a question. “It will not be economical to produce just six aircraft in India,” he says. I • • BOEING • • • 28 DEFENSE TECHNOLOGY INTERNATIONAL JUNE 2008 AviationWeek.com/dti http://AviationWeek.com/dti

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Defense Technology International - June 2008 Contents Around the World Science Watch Tech Watch Basic Black Self-Defense Fire-Resistant Perfezione Hyperspeed Trial Big Sky Cashing In Digital Links Hang Ten Sea Change Programs Update Two Steps Back Direct Hit Staying Power Potent Stinger Do No Harm Guard Duty The Net Cutting Edge First Person In Review Insight

Defense Technology International - June 2008

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