Driven personally by
Parrikar, draft policy now before defence secretary
By Ajai Shukla
Business Standard, 20th Oct 16
The missing link in a number of crucial
defence procurements, especially the much-delayed Project 75I (referred to as
75-India) to build six conventional submarines for the navy, is close to being resolved.
Business Standard learns that the “strategic
partner” policy has been finalised. It is currently before the defence
secretary for clearance, after which it will be quickly cleared by Defence
Minister Manohar Parrikar, who has made the policy a personal mission. Then it
goes to the finance ministry, before final clearance by the cabinet.
The “strategic partner” policy spells out
guidelines for nominating private Indian defence firms as partners of choice
for building submarines, warships, fighter aircraft, helicopters, tanks, etc.
Foreign vendors selling India these platforms would be required to transfer
technology to the designated Indian “strategic partner”, which would manufacture
the platform in India, and support it through its service life.
The “strategic partner” policy was to be a
part of the Defence Procurement Policy of 2016 (DPP-2016). But reservations
within the ministry over the method of identifying partner companies forced the
issuance of DPP-2016 with a missing Chapter 6.
Now Chapter 6 --- the “strategic partner”
policy --- is close to being cleared.
Nobody is more pleased about this than the
navy, with Project 75I being held up for want of a strategic partner. The
ministry has favoured a proposal to build four Project 75I submarines at
Mazagon Dock Ltd, Mumbai (MDL), and the remaining two through the designated
“strategic partner”.
In Delhi on Tuesday, Vice Admiral GS Pabby,
the navy’s warship construction and acquisition chief, indicated that Project
75I could soon be globally tendered.
He revealed that the delay in the
“strategic partner” policy arose from “complications that needed to be sorted
out”, but were now almost resolved.
Business Standard learns the biggest hurdle
was a covenant the ministry needed to provide each strategic partner, stipulating
that the partner would automatically benefit from follow-on orders and other
benefits. Such a requirement had been spelt out in the VK Aatre recommendations
for identifying strategic partners.
However, ministry bureaucrats, eager to
bind the strategic partners with contracts and covenants, were less willing to
hold the ministry to responsibilities of its own.
Defence industry insiders believe the first
two major contracts that the promulgation of the “strategic partner” policy
would unleash are: a light fighter production line, and Project 75I.
Pabby confirmed on Tuesday that the six
Project 75I vessels would incorporate indigenous AIP, based on advanced “fuel
cell technology”, developed by the Defence R&D Organisation (DRDO). A
submarine equipped with AIP can remain underwater for long periods, making it
difficult for the enemy to detect them.
In contrast, submarines propelled by
traditional diesel-electric systems (like all of India’s submarine fleet,
including the Scorpenes currently being built) require to surface periodically
--- usually every 48-72 hours --- to recharge batteries. A surfaced submarine is
vulnerable to detection by the enemy.
The DRDO’s AIP system is being
productionised by an industrial partner, Larsen & Toubro. That would
provide L&T a significant advantage when the ministry selects a strategic
partner for submarine building.
Project 75I is regarded as crucial for the
navy’s operational credibility. Its submarine fleet is down to just 13 vessels,
against the 24 regarded as essential. Six Scorpene submarines being built at
MDL are running late, but should all be in service by the end of this decade.
The navy had kept open an option for DCNS
--- the Scorpene’s French vendor --- to provide AIP for the last two Scorpene
vessels. Today Pabby ruled out AIP for those.
Separately, Pabby declined comment on media
reports that India’s first nuclear ballistic missile submarine, INS Arihant, had
been commissioned into navy in August. However, hinting at an impending announcement,
he stated: “There will soon be an opportunity to talk about it”.
The Arihant has no naval operational role. It
operates under the Strategic Forces Command, lurking underwater for months at a
stretch, ready to fire nuclear tipped ballistic missiles at any enemy that ventured
to launch a “first strike” against India.
I think they should go for short fin barracuda immediately as it is the better sub on offer.... Germans are only engaged in leaks and industrial espionage against French and Italians to further their equipments be it subs or torpedoes... They are offering U 214 which is much inferior to U212 as it lacks the quietness and non magnetic steel of the latter. IN should go in for 12 short fins barracuda subs by making 1 at French yard followed by 6 at mazgaon and 5 at kattupalli yard of L&T.. This will help us build 2 lines on 2 different coastlines increasing competitiveness and reducing the time schedule of the subs induction into IN which should be completed in 10 years if the schedules are compressed. The building of the 1st sub at French yard will help Mazgaon and L &T specialists learn intricacies in sub building. There is no match to short fin barracuda except Virginia class which are US built , nuclear and above all not on offer. ....
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