Manufacturing components with an Indian partner for the proposed $700-million initial gun order of 145 M777 howitzers is set to benefit 40 Inidan Defense firms.It is focused on localised defence production. Talk with corporates like L&T, Punj Lloyd, Ordnance Factory Board, Tata Power, Kalyani Group, Mahindra Group and others are ongoing. Emphasis is mainly on State-owned defence public sector undertakings and medium, small, and micro enterprises in the defence arena. This deal will involve technology transfer in India and ensure capability in technical skills.
The $14 billion Indian defence boost
Defying the US, India in this month inked the $5 billion acquisition of S400 systems from Russia This move of India to acquire the S-400, which has the ability to track multiple incoming targets, including aircraft, missiles and unmanned aerial vehicles, up to 400km in distance and 30km in altitude, can attract sanctions under the Countering America’s Adversaries Through Sanctions Act (Caatsa) passed by the US Congress on arms purchases from Russia. This has to been seen in the context of the acquisition of 36 Rafale systems from Dassault Aviation based out of France for $7.8 billion. The IAF has a sanctioned strength of 45 fighter squadrons. However, the IAF is currently operating only 35 squadrons, which includes 11 squadrons of legacy aircraft like MiG-21 M/Bis/Bison and MiG-27. These 11 squadrons are due for retirement between 2018 and 2022. In the same period, the IAF is projected to add only six to seven squadrons, resulting in a major shortage in squadron strength. ...
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