- Biotechnology & Genomics
- Defence Acquisitions
- Defence Production
- Disruptive developments
- GREEN! GREEN! GREEN!
- Indian Manufacturing and Technologies
- International Best Practices
- IT Hardware & Software
- Market Fundamentalism & Neoliberalism
- R & D
- Sci-Fi & Fun Stuff
- VISTAS BHARAT
- Report of the Forum on High-Tech Defence Innovation
- Programme 5th Meeting of Forum on High-Tech Defence Innovation
- NEED FOR NETWORK OF DEFENCE ACQUISITIONS, TECHOLOGY CUM R&D UNIVERSITIES IN INDIA
- Science and Technology for the Society
- US report on the Impact of Defence Offsets on Its Defence Industrial Base
Follow me on TwitterMy Tweets
Copyright.Smita Purushottam and VISTAS-भारत (2014). Unauthorized use and/or duplication of this material without express and written permission from this blog’s authors and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Smita Purushottam/ approved blog authors and VISTAS-भारत with appropriate and specific direction to the original content.
5th Meeting of the Forum on High-Tech Defence Innovation
Vision for an Indian S & T Advancement Strategy
Institute for Defence Studies & Analyses
Seminar Room 1, 26th November, 2014, 1000 hrs- 1400 hrs
- Special Address
- Report of 2nd & 4th Forum Meetings
Panel 1: Indian Industry:
- R & D vs. Licensed Production : Industry’s contribution to Innovation Ecosystem
- India First: Measures to Promote Indian Industry- Industry’s expectations
- Any other issue of concern
Panelists for Round 1: Weaponry: planes, subs, naval weaponry, etc.
- R.K. Tyagi, Chairman, HAL
- Commodore Mukesh Bhargava (Retd), Vice President, International Defence & Aerospace Business Flight Systems BU, L & T
- Shri Rahul Chaudhry, CEO, Tata Power SED
- Admiral Verma, CMD GRSE
Panelists for Round 2: ICT technologies
- Shri Sanjay Nayak, Chief Executive Officer & Managing Director, Tejas Networks
- Shri Rajiv Mehrotra, Founder and CEO, VNL; Chairman of the Shyam Group of companies
- Shri Sridhar Nadupally, Chairman and Managing Director, Saankhya InfoTech Ltd.
- Shri Ashok Atluri, CMD, Zen Technologies
- Vishwa Kayargadde, Saankhya Labs
Panel 2: Government/Governance
- The Science State and role for Indian State
- RDA or DPP?
- Weapons mix
- Any other issue
- Admiral Shekhar Sinha, former CISC and C-in-C West
- Shri Ajay Bharti, Swadeshi Jagran Manch
- Vice Admiral Raman Puri, former CISC
- Bharat Karnad, Research Professor in National Security Studies at the Centre for Policy Research, New Delhi
- (Retd) Kamaljit Singh Jassal, IDS HQ
Panel 3: Innovation eco system
- R & D
- Valley of Death
- Incubation of High-Tech SMEs
- Role of State
- Any other issue
- Mr Vishnu Dusad, MD Nucleus Software,iSPIRT
- B.M. Suri, BARC
- Nilesh Dhande Founder & VP-Corporate Strategy , Uniken: “Towards integrated co- innovation for faster technology acquisition”.
- A.S. Rao, former Adviser, DSIR
- Shri Sanjay Aggarwal, Managing Director -CBS
- Shri Sabyasachi Dasmohapatra, CEO, Global Innovation & Technology Alliance (GITA)
Vote of Thanks
The Hindu article “Research in frontier areas of science and technology” on IITM’s achievements is great, we do need to celebrate what we have. But there is so much scope for more. China has whole Universities dedicated to many of these specializations, and the US has a Defence Acquisitions University which teaches you the ropes for defence acquisitions.
And just look at the courses on offer!!! I am salivating! Mind boggling! This is the kind of expertise that leads to well founded decisions in defence acquisitions. Of course, the US has a different approach to acquisitions, it starts with R & D, and then development and then acquisitions. We OTOH start with acquisitions, we don’t start with indigenous production processes at all!
Reproducing the DAU courses below for those who do not wish to click! They are impressive, na?
|ALL||ALL Training courses||FE||Facilities Engineering|
|AUD||Auditing||IND||Industrial/Contract Property Management|
|BCF||Business, Cost Estimating, and Financial Management||IRM||Information Resource Management|
|CMA||Contract Management – Air Operations||LOG||Logistics|
|CMM||Contract Management – Manufacturing||PMT||Program Management|
|CMQ||Contract Management – Quality||PQM||Production, Quality, and Manufacturing|
|CMS||Contract Management – Software||RQM||Requirements Management|
|CON||Contracting||SAM||Software Acquisition Management|
|COR||Contracting Officer’s Representative||STM||Science and Technology Management|
|ENG||Engineering||SYS||Systems Planning, Research, Development and Engineering|
|EVM||Earned Value Management||TST||Test and Evaluation|
|ACQ 101||Fundamentals of Systems Acquisition Management||DL||YES||25||10-Jul-2014|
|ACQ 120||Fundamentals of International Acquisition (FIAC)||DL||YES||19||01-Aug-2014|
|ACQ 130||Fundamentals of Technology Security/Transfer (FTS/T)||DL||YES||12||10-Jul-2014|
|ACQ 201A||Intermediate Systems Acquisition, Part A||DL||YES||25||10-Jul-2014|
|ACQ 201B||Intermediate Systems Acquisition, Part B||YES||YES||34||09-Jul-2014|
|ACQ 202||Intermediate Systems Acquisition, Part A||DL||N/A||0||10-Jul-2014|
|ACQ 203||Intermediate Systems Acquisition, Part B||YES||N/A||0||09-Jul-2014|
|ACQ 230||International Acquisition Integration||YES||YES||40||30-Jul-2014|
|ACQ 265||Mission-Focused Services Acquisition||YES||YES||23||09-Jul-2014|
|ACQ 315||Understanding Industry (Business Acumen)||YES||YES||37||09-Jul-2014|
|ACQ 370||Acquisition Law||YES||YES||29||09-Jul-2014|
|ACQ 401||Senior Acquisition Course||YES||YES||80||09-Jul-2014|
|ACQ 403||Defense Acquisition Executive Overview Seminar||YES||YES||0||09-Jul-2014|
|ACQ 404||Systems Acquisition Management Course||YES||YES||41||09-Jul-2014|
|ACQ 405||Executive Refresher Course||YES||YES||74||09-Jul-2014|
|ACQ 450||Leading in the Acquisition Environment||YES||YES||31||09-Jul-2014|
|ACQ 451||Integrated Acquisition for Decision Makers||YES||YES||25||09-Jul-2014|
|ACQ 452||Forging Stakeholder Relationships||YES||YES||25||09-Jul-2014|
|ACQ 453||Leader as Coach||YES||YES||27||09-Jul-2014|
|AUD||All DCAA Auditing Courses||DL||N/A||06-Aug-2012|
|AUD 1113||Orientation to DCAA||DL||N/A||0||10-Apr-2014|
|AUD 1121||Briefing Contracts||DL||N/A||0||10-Apr-2014|
|AUD 1122||Accounting System Survey||DL||N/A||0||10-Apr-2014|
|AUD 1126||Adequacy of Proposals||DL||N/A||0||10-Apr-2014|
|AUD 1142||Progress Payments||DL||N/A||0||10-Apr-2014|
|AUD 1150||Technical Indoctrination||YES||N/A||0||10-Apr-2014|
|AUD 1221||Basic Flowcharting||DL||N/A||0||10-Apr-2014|
|AUD 1231||Intermediate Contract Auditing||YES||N/A||0||10-Apr-2014|
|AUD 1249||Agreed-Upon Procedures||DL||N/A||0||10-Apr-2014|
|AUD 1261||Scanning Guidance||DL||N/A||0||10-Apr-2014|
|AUD 1265||APPS Performance Support Module||DL||N/A||0||10-Apr-2014|
|AUD 1269||Working Paper Documentation||DL||N/A||0||10-Apr-2014|
|AUD 1271||Permanent Files||DL||N/A||0||10-Apr-2014|
|AUD 1283||Fraud Awareness||DL||N/A||0||10-Apr-2014|
|AUD 1541||Cost Accounting Standards||YES||N/A||0||10-Apr-2014|
|AUD 1570||CAS—Administration and Coverage||DL||N/A||0||10-Apr-2014|
|AUD 1571||CAS 401, 402, and 405||DL||N/A||0||10-Apr-2014|
|AUD 1572||CAS 403, 410, 418, and 420||DL||N/A||0||10-Apr-2014|
|AUD 1573||CAS 404 and 409||DL||N/A||0||10-Apr-2014|
|AUD 1574||CAS 414 and 417||DL||N/A||0||10-Apr-2014|
|AUD 1575||CAS 406, Cost Accounting Period||DL||N/A||0||10-Apr-2014|
|AUD 1576||CAS 408 and 415||DL||N/A||0||10-Apr-2014|
|AUD 1577||CAS 407, Standard Costs for Direct Material and Labor||DL||N/A||0||10-Apr-2014|
|AUD 1578||CAS 416, Accounting for Insurance Costs||DL||N/A||0||10-Apr-2014|
|AUD 1579||CAS 411, Acct. for Acquisition of Cost of Material||DL||N/A||0||10-Apr-2014|
|AUD 1580||CASB Disclosure Statements||DL||N/A||0||10-Apr-2014|
|AUD 1601||FAR 31, Allowable and Unallowable Costs||DL||N/A||0||10-Apr-2014|
|AUD 1602||Allowable Costs with Restrictions (Non-Employee)||DL||N/A||0||10-Apr-2014|
|AUD 1603||Allowable Costs with Restrictions (Employee)||DL||N/A||0||10-Apr-2014|
|AUD 2311||Defective Pricing||DL||N/A||0||10-Apr-2014|
|AUD 4035||Quantitative Methods Refresher||YES||N/A||0||11-Apr-2014|
|AUD 6115||Effective Report Writing||YES||N/A||0||10-Apr-2014|
|AUD 6220||Auditor Interview and Interpersonal Reactions||YES||N/A||0||10-Apr-2014|
|AUD 6240||Oral Presentation Workshop||YES||N/A||0||10-Apr-2014|
|AUD 8414||DDI Leadership Skills||YES||N/A||0||11-Apr-2014|
|AUD 8564||Administration and Management of Audits for Supervisors||YES||N/A||0||10-Apr-2014|
|AUD 8611||EEO for Supervisors||DL||N/A||0||21-Jun-2011|
|AUD 8655||Human Resources for Supervisors||DL||N/A||0||21-Jun-2011|
|AUD B4121||Statistical Sampling||YES||N/A||0||22-Jan-2014|
|AUD S5651||Retrieving and Analyzing Electronic Data Using SAS||YES||N/A||0||11-Apr-2014|
|BCF 103||Fundamentals of Business Financial Management||DL||YES||26||10-Jul-2014|
|BCF 106||Fundamentals of Cost Analysis||DL||YES||37||10-Jul-2014|
|BCF 107||Applied Cost Analysis||YES||YES||30||09-Jul-2014|
|BCF 204||Intermediate Cost Analysis||YES||YES||67||09-Jul-2014|
|BCF 205||Contractor Business Strategies||YES||YES||30||09-Jul-2014|
|BCF 206||Cost Risk Analysis||YES||YES||22||09-Jul-2014|
|BCF 207||Economic Analysis||YES||YES||28||28-Jul-2014|
|BCF 209||Acquisition Reporting for MDAPs and MAIS||YES||YES||26||09-Jul-2014|
|BCF 215||Operating and Support Cost Analysis||YES||YES||30||09-Jul-2014|
|BCF 220||Acquisition Business Management Concepts||DL||YES||27||10-Jul-2014|
|BCF 225||Acquisition Business Management Application||YES||YES||28||09-Jul-2014|
|BCF 301||Business, Cost Estimating, and Financial Management Workshop||YES||YES||61||09-Jul-2014|
|BCF 302||Advanced Concepts in Cost Analysis||YES||YES||66||09-Jul-2014|
|CMA 211||Government Flight Representative (GFR)||YES||YES||24||09-Jul-2014|
|CMA 221||Government Ground Representative (GGR)||YES||YES||24||09-Jul-2014|
|CMA 231||DCMA Aviation Safety Officer (ASO)||YES||YES||12||09-Jul-2014|
|CMM 100||Surveillance Implications of Manufacturing and Subcontractor Management||YES||YES||55||09-Jul-2014|
|CMQ 101||Government Contract Quality Assurance Fundamentals||YES||YES||67||09-Jul-2014|
|CMQ 220||Root Cause Analysis (RCA)||DL||YES||14||14-Aug-2014|
|CON 090||Federal Acquisition Regulation (FAR) Fundamentals||YES||YES||133||09-Jul-2014|
|CON 100||Shaping Smart Business Arrangements||DL||YES||16||10-Jul-2014|
|CON 121||Contract Planning||DL||YES||12||10-Jul-2014|
|CON 124||Contract Execution||DL||YES||13||10-Jul-2014|
|CON 127||Contract Management||DL||YES||10||10-Jul-2014|
|CON 170||Fundamentals of Cost and Price Analysis||YES||YES||76||09-Jul-2014|
|CON 200||Business Decisions for Contracting||DL||YES||25||10-Jul-2014|
|CON 216||Legal Considerations in Contracting||DL||YES||23||19-Aug-2014|
|CON 232||Overhead Management of Defense Contracts||YES||YES||86||09-Jul-2014|
|CON 234||Joint Contingency Contracting Course||YES||YES||64||09-Jul-2014|
|CON 237||Simplified Acquisition Procedures||DL||YES||6||10-Jul-2014|
|CON 243||Architect-Engineer Contracting||YES||YES||35||09-Jul-2014|
|CON 244||Construction Contracting||YES||YES||32||19-Aug-2014|
|CON 251||Fundamentals of Cost Accounting Standards—Part II||YES||YES||30||09-Jul-2014|
|CON 252||Fundamentals of Cost Accounting Standards||YES||YES||52||09-Jul-2014|
|CON 260A||The Small Business Program, Part A||DL||YES||10||10-Jul-2014|
|CON 260B||The Small Business Program, Part B||YES||YES||17||09-Jul-2014|
|CON 270||Intermediate Cost and Price Analysis||YES||YES||68||09-Jul-2014|
|CON 280||Source Selection and Administration of Service Contracts||YES||YES||97||09-Jul-2014|
|CON 290||Contract Administration and Negotiation Techniques in a Supply Environment||YES||YES||96||09-Jul-2014|
|CON 334||Advanced Contingency Contracting Officer’s Course||YES||YES||39||09-Jul-2014|
|CON 360||Contracting for Decision Makers||YES||YES||81||09-Jul-2014|
|CON 370||Advanced Contract Pricing||YES||YES||74||09-Jul-2014|
|COR 206||Contracting Officer’s Representatives in a Contingency Environment||YES||YES||3||09-Jul-2014|
|COR 222||Contracting Officer’s Representative Course||YES||YES||32||09-Jul-2014|
|ENG 102||Fundamentals of Systems Engineering||DL||N/A||0||10-Jul-2014|
|ENG 204||Applied Systems Engineering in Defense Acquisition, Part I||DL||N/A||0||11-Aug-2014|
|ENG 205||Applied Systems Engineering in Defense Acquisition, Part II||YES||N/A||0||11-Aug-2014|
|ENG 301||Leadership in Engineering Defense Systems||YES||N/A||0||11-Aug-2014|
|EVM 101||Fundamentals of Earned Value Management||DL||YES||18||10-Jul-2014|
|EVM 201||Intermediate Earned Value Management||YES||YES||60||09-Jul-2014|
|EVM 262||EVMS Validation and Surveillance||YES||YES||58||09-Jul-2014|
|EVM 263||Principles of Schedule Management||YES||YES||22||09-Jul-2014|
|FE 201||Intermediate Facilities Engineering||DL||YES||18||10-Jul-2014|
|FE 301||Advanced Facilities Engineering||YES||YES||40||27-Sep-2013|
|GRT 201||Grants and Agreements Management||YES||YES||23||09-Jul-2014|
|IND 105||Contract Property Fundamentals||YES||YES||64||09-Jul-2014|
|IND 205||Contract Government Property Management Systems and Auditing Concepts||YES||YES||52||09-Jul-2014|
|IRM 101||Basic Information Systems Acquisition||DL||YES||34||15-Aug-2014|
|IRM 202||Intermediate Information Systems Acquisition||YES||YES||79||14-Aug-2014|
|IRM 304||Advanced Information Systems Acquisition||YES||YES||36||09-Jul-2014|
|LOG 101||Acquisition Logistics Fundamentals||DL||YES||27||10-Jul-2014|
|LOG 102||Fundamentals of System Sustainment Management’||DL||YES||25||10-Jul-2014|
|LOG 103||Reliability, Availability, and Maintainability (RAM)||DL||YES||22||10-Jul-2014|
|LOG 200||Intermediate Acquisition Logistics, Part A||DL||YES||32||10-Jul-2014|
|LOG 201||Intermediate Acquisition Logistics, Part B||YES||YES||32||09-Jul-2014|
|LOG 204||Configuration Management||DL||YES||18||10-Jul-2014|
|LOG 206||Intermediate Systems Sustainment Management||DL||YES||27||09-Jul-2014|
|LOG 211||Supportability Analysis||YES||YES||28||09-Jul-2014|
|LOG 215||Technical Data Management||DL||N/A||0||10-Jul-2014|
|LOG 235||Performance-Based Logistics||DL||YES||19||10-Jul-2014|
|LOG 340||Life Cycle Product Support||YES||YES||40||09-Jul-2014|
|LOG 350||Enterprise Life Cycle Logistics Management||YES||YES||90||09-Jul-2014|
|LOG 365||Executive Product Support Manager’s Course||YES||N/A||80||09-Jul-2014|
|PMT 251||Program Management Tools Course, Part I||DL||YES||20||10-Jul-2014|
|PMT 257||Program Management Tools Course, Part II||DL||YES||43||10-Jul-2014|
|PMT 304||Advanced International Management Workshop||YES||YES||39||09-Jul-2014|
|PMT 313||Advanced Technology Security/Control Workshop||YES||YES||33||09-Jul-2014|
|PMT 352A||Program Management Office Course, Part A||DL||YES||22||10-Jul-2014|
|PMT 352B||Program Management Office Course, Part B||YES||YES||119||09-Jul-2014|
|PMT 400||Program Manager’s Skills Course||YES||N/A||77||09-Jul-2014|
|PMT 401||Program Manager’s Course||YES||YES||470||09-Jul-2014|
|PMT 402||Executive Program Manager’s Course||YES||YES||146||09-Jul-2014|
|PQM 101||Production, Quality, and Manufacturing Fundamentals||DL||YES||16||10-Jul-2014|
|PQM 201A||Intermediate Production, Quality, and Manufacturing, Part A||DL||YES||12||10-Jul-2014|
|PQM 201B||Intermediate Production, Quality, and Manufacturing, Part B||YES||YES||35||09-Jul-2014|
|PQM 203||Preparation of Commercial Item Description for Engineering and Technical Personnel||DL||YES||6||10-Jul-2014|
|PQM 301||Advanced Production, Quality, and Manufacturing||YES||YES||76||09-Jul-2014|
|RQM 110||Core Concepts for Requirements Management||DL||YES||19||10-Jul-2014|
|RQM 310||Advanced Concepts and Skills for Requirements Management||YES||YES||38||09-Jul-2014|
|RQM 403||Requirements Executive Overview Workshop||YES||YES||8||09-Jul-2014|
|RQM 413||Senior Leader Requirements Course||YES||N/A||2||09-Jul-2014|
|SAM 301||Advanced Software Acquisition Management||YES||YES||32||09-Jul-2014|
|STM 202||Intermediate S&T Management||YES||YES||20||09-Jul-2014|
|STM 303||Advanced S&T Management||YES||YES||25||09-Jul-2014|
|SYS 101||Fundamentals of Systems Planning, Research, Development, and Engineering||DL||YES||35||10-Jul-2014|
|SYS 120||Defense Standardization Workshop||YES||YES||14||09-Jul-2014|
|SYS 130||Specification Selection and Application||YES||YES||10||09-Jul-2014|
|SYS 202||Intermediate Systems Planning, Research, Development, and Engineering, Part I||DL||YES||9||10-Jul-2014|
|SYS 203||Intermediate Systems Planning, Research, Development, and Engineering, Part II||YES||YES||37||09-Jul-2014|
|SYS 302||Technical Leadership in Systems Engineering||YES||YES||68||09-Jul-2014|
|TST 102||Fundamentals of Test and Evaluation||DL||YES||18||10-Jul-2014|
|TST 204||Intermediate Test and Evaluation||YES||YES||64||09-Jul-2014|
|TST 303||Advanced Test and Evaluation||YES||YES||32||09-Jul-2014|
India is rich not only in cultural values, heritage and knowledge power, but also in having tremendous sources of natural energy. Furthermore, in the last decade India has embarked on the development of Science & Technology on a Global Front. Nowadays, we are heavily dependent on technology for our daily routines, for example telephones, television, transportation…etc. Having one of the biggest knowledge pools in the world – which is acknowledged by the international community, what important is to utilize this rich source of the knowledge in a correct manner to empower the nation in the real sense.
Majority of the Indian population is stationed in rural areas and this rural community plays a vital role in the sustainability of the urban areas. Rural areas need basics like electricity, employment, food…etc. If the science and technology is adopted by our modern society, why not it can also be utilized to empower the rural sectors of the country?
Today, the daily consumption of power of mega and metro cities enjoy power is sufficient for under privileged rural and/or coastal areas for at least one week. The needless usage of technology by modern society is actually usurping the rights of our brothers and sisters in the rural areas. If we share the technology with our brothers and sisters in the rural community, we will help them to not only sustain but to live a quality life and enjoy the same comfort level which we have.
We have large coastal areas. Just like European countries, if the water turbines are placed across the coastal line, we can have continuous power supply generated through these water turbines and sufficient for coastal communities. The wind turbines should also be stationed at various places which can produce power that can be utilized to provide basic electricity to the villages. Also, many villages are now having solar panels and bio-gas plants for the purpose of providing electricity for street lighting. New ways should be innovated by which the society – as a whole, can be benefitted. For example, I am a space scientist, so I will comment that utilizing space technology and remote sensing applications can be beneficial in monitoring the agriculture, urban planning, observing rich heritage of the country, health monitoring, preparing mitigation guidelines for the disaster risk reduction, telemedicine…etc. There are many more applications of the present technologies, in each sector, which can benefit the society, contributing in the development of the country.
The focus on utilization of Science & Technology for development will not only help to empower the rural sector of the country, but also create a greater impact as the growth engine for the development of the country. Also, this will trigger healthy competition amongst the states within the country to be the model state through development in education, growth of commercial activities and industrial development, strengthening the rural communities, showcasing the hidden treasure of rich heritage and culture…etc. Above all of these, the real actions in this direction will bring the communities together for the harmonious growth and the ancient adage – “Vasudhaiva Kautumbakam” will be seen in the country in real sense.
– R. Ghadawala
The 16th Annual Report to Congress on the Impact of Offsets in Defence Trade has the following to say:
- Between 1993-2010, US firms agreed to $78.08 billion worth of Offsets out of defence exports worth $111.59 billion, or nearly 70%. Technology transfer was among the top 3 offset categories.
NEGATIVES FOR US:
- The report however warned that Offsets would “limit future business opportunities for U.S. subcontractors and suppliers, with negative consequences for the domestic industrial base. Other kinds of offsets, such as technology transfers, may increase research and development spending and capital investment in foreign countries for defence or non-defence industries, thereby helping to create or enhance current and future competitors to U.S. industry….”
Which is exactly the point of Offsets, that they should help in boosting the defence industrial base and wean developing countries off the need to keep importing in perpetuity.
POSITIVES FOR US:
- However the report also notes – ‘anecdotal information obtained from industry suggests that “cutting edge” or nascent technologies under development in the United States are less likely to be transferred to foreign companies in fulfillment of offset obligations than are mature technologies’.
- Also, Offsets involving technology transfers were only $985.0 million, equivalent to only 0.24% of total US R&D spend.
- The report further notes “Despite the capabilities that may accrue to foreign firms resulting from offset agreements signed with U.S. industry, purchases from foreign firms do not represent a significant share of DOD’s total purchases. Purchases of defence manufactures from US sources by DOD totaled $102.46 billion out of total purchases of $106.80 billion in 2010, with purchases from foreign entities only $4.34 billion, or 4% of the total.
- Moreover, the US recorded ‘an overall net gain … a positive $7.2 billion in added “input” opportunities for the U.S. industrial base, and a net gain of 22,553 in employment opportunities created or sustained during the 2009-2010 period’.
POINTS OF INTEREST FOR POLICYMAKERS
- Interestingly, one discovered that the analytical report is written in pursuance of a US Defence Production Act, whose existence one was unaware of. The Defence Production Act has helped the US develop a number of new technologies and composite materials and has also hand-held startups to commercially produce technologies they could not have done on their own.
- The Defence Production Act also enjoins on the government to very closely scrutinise foreign investment proposals in the United States. It is under the provisions of this Act that some Chinese Investments have been denied in the US.
- The point is, even as many countries have benefited from leveraging Defence Offsets, India is probably not among them. This has to change.
- The above also imply that negotiating defence offsets is a tough business, but other countries have succeeded and India too needs to stick it out.
- The other point is, the US, the quintessential free marketer, has a wide variety of industrial promotion policies to help maintain its technological and industrial edge and fend off foreign competition. All countries follow policies that are conducive to promoting their own domestic industrial base. As this Livemint article (“An economic roadmap for India”) points out – it is not healthy that India has failed to nurture its manufacturing base: “The fact that India has moved from an agricultural economy to a service-driven economy with almost no growth in industry is not a virtue; it is an outcome of policies that have hampered manufacturing and mining. With production costs rising in China, international buyers are looking for alternative sourcing destinations for manufactured products. If India, with its large labour force, is to seize this opportunity, it must nurture its industrial sector”.
Other factoids that it would be useful for our policymakers to be aware of:
- “DOD is willing to use reliable foreign suppliers when such use offers comparative advantages in performance, cost, schedule, or coalition operations. DOD has negotiated bilateral Reciprocal Defence Procurement Memoranda of Understanding (RDP MOUs) with 21 countries” – based on these MOUs, the US has made blanket public interest exceptions to the Buy American Act for 20 of these countries, as a result of which, their “products are evaluated on the same basis as domestic products in competitive DOD procurements.”
- The US also conducts a Dialogue with other countries on Limiting the Adverse Effects of Offsets in Defence Procurement. It has set up an interagency team to study the issue and report to Congress. The team concluded that other industrialized nations are also very concerned about offsets in defence procurement.
- The European Union (EU) Defence Procurement Directive in August 2011 was a very significant event in defence offsets. But even in Europe the Code states that offsets will not exceed the value of the procurement contract (100 percent offset limit).
- 100% is way above the highly diluted 30% offsets provided in India, and even this we have been unable to implement.
TIME TO LAUNCH AND IMPLEMENT OFFSETS IN DEFENCE PRODUCTION AND THE AEROSPACE INDUSTRY!
SO PAPA DON’T PREACH
(On Defence Offsets)
“We have the “once-in-a-century” opportunity to get it right when it comes to changing how we buy defence equipment.” Honourable Diane Finley, PC, MP, Minister of Public Works and Government Services, Announcing the Defence Procurement Strategy, Ottawa, Ontario, February 5, 2014
The High Tech Forum on Defence Innovation, which comprises experts in various fields related to enhancing indigenous high-tech capabilities, had concluded that Defence Offsets provide a huge opportunity to kick start India’s defence industrial base.
Successfully leveraging defence purchases to build indigenous capabilities is a worldwide trend. On the VISTAS-भारत Facebook page we had mentioned many countries implementing 100% Offsets – not just the 30% provided in our own laws. Some countries even apply 400%!
So first of all, “Papa Dont Preach!” 30% is not too Onerous considering how many countries practice 100% and above. 100 percenters:
Canada is insisting on 100% REAL Offsets. Check out our earlier post on the subject – because of their “consistent” insistence, both Boeing and Dassault are either “promising offsets for Canadian industry worth 100 percent of the purchase contract value, or providing full transfer of aircraft technologies to the Canadian government, with no restrictions”.
Contrast this with the tough stance reportedly being taken with India on the MMRCA offset clause. India should straightaway jack up Defence Offsets to 100% at least and derive the maximum out of this once in a century opportunity. India is also right to insist that lifecycle costs and not just the initial purchase price, should be taken into account while calculating Offsets, as lifecycle costs can be extremely high.
Now, Canada has just overhauled its defence procurement strategy to strengthen indigenous high-tech defence industry and take advantage of the fact that “Defence-related industries are unique in that governments are essentially the only customers, and have flexibility under international trade agreements to favour domestic suppliers.”
Since advanced nations are constantly brandishing the WTO against us – we must at least take advantage of the flexibilities provided for the defence sector. Wasn’t the WTO meant to facilitate our industrial development? But we had to withdraw the Preferential Market Access Policy for private sector procurements which would have benefited our manufacturing industry.
Thus, many countries have leveraged Offsets to become part of the sophisticated global high-tech aerospace supply chain. But at every turn we have failed to leverage our civil and military aircraft purchases and our considerable air travel market to build our own aerospace industry which can be part and parcel of an exciting high-tech global supply chain.
India also needs to develop the MRO market. A presentation by HAL is being posted which outlines the full potential of the market that can be exploited by Indian firms.
The next post will be on the subtle propaganda on the reputation and capabilities of Indian industry, and the myths being propagated in this regard. This helps only non-Indian firms. Since defence markets are under pressure worldwide, it is essential for OEMs to corner the growing Indian defence market and ensure Indian companies, which have won massive tenders abroad, are disregarded in their own country.
SUMMARY OF DEVELOPMENTS IN CANADA
2008: Canada establishes the Canada First Defence Strategy (CFDS) which provides stable long-term funding and a roadmap for the modernization of the Canadian Forces over a 20-year period.
2013, February: Canada issues the excellent report “Canada First: Leveraging Defence Procurement Through Key Industrial Capabilities”– the document starts with Canada First! This is what we have been advocating all along – INDIA FIRST! In Canada they call Offsets the Industrial and Regional Benefits (IRB) policy: the report mentions ‘A main source of revenue for Canadian industry relates to the government’s long-standing Industrial and Regional Benefits (IRB) policy — often referred to generically as an “offsets” policy— that requires winners of major defence contracts to spend the equivalent of the dollar value of contracts (which are often awarded to foreign firms) in support of Canadian industry’.
2014, February 05: Canada launches new Defence Procurement Strategy (DPS), with the following goals:
- Companies bidding on defence and security contracts have to provide 100 percent Offsets. They are insisting Canada get full value for any procurement from Dassault and Boeing.
- Deliver the right equipment to the Canadian military in a timely manner;
- Leverage Canada’s purchases of defence equipment to create jobs and economic growth in Canada; and
- Companies bidding on major defence and Coast Guard procurements have to prove that their bids support “Key Industrial Capabilities (KICs) and other productivity drivers, including industrial and technological high-value activities, for example, “technology transfer”.
- “Implement an enhanced Export Strategy to support international sales opportunities and “participation in global value chains“” (Note: this is our key goal also).
This is our once in a century chance to get things right too. Let us fulfill India’s promise!
This – “Why China will fight for a global climate deal next year” is good news for the Planet. Time for everyone to realise together that we have only one planet! We see no sign of effective international action, so fusion technology, massive afforestation and use of green technologies will have to offset national emissions. Moreover, the transition to a high-tech growth model (below), which we in this Forum also envisage for India, will lead to a reduction in the more polluting industries:
“China has started to establish innovation-based development. It is adjusting its economic structure, and no longer pursuing development at the cost of the environment. This new development path means that China has to lower its total energy consumption and change its energy framework to support further adjustments to its economic structure”
“China’s leaders know that an effective treaty on climate change in 2015 is essential to the country’s development, says IPCC China expert Wang Chunfeng.
It isn’t hard to see that China’s motivation is genuine. First, China is suffering badly from the adverse effects of climate change. Over the last hundred years, the annual average rise in temperatures in China has been higher than the global average…Since the 1990s, China has suffered annual average economic losses of over 200 billion yuan (US$32 billion) as a direct result of extreme weather events, and an annual average death toll above 2,000. ..The latest reports from the Intergovernmental Panel on Climate Change (IPCC) predict that rising temperatures will grow more pronounced, adverse impacts will intensify and damage from extreme weather events in China will get even more serious.
Second, there is no contradiction between the direction of China’s economic development and tackling climate change…” as
“China has started to establish innovation-based development. It is adjusting its economic structure, and no longer pursuing development at the cost of the environment. This new development path means that China has to lower its total energy consumption and change its energy framework to support further adjustments to its economic structure.”