The
government’s privatisation bid in defence equipment production is most welcome. Considering the
country’s total annual hi-tech armament requirement, India needs at least half
a dozen strong defence manufacturing companies which can initially work as
partners of original equipment suppliers. Hi-tech defence manufacturing is not
easy. The operational performance of the country’s biggest defence
manufacturing company, public sector Hindustan Aeronautics Limited (HAL), over
the years, may be a good example. HAL
has been rapped for inordinate delays in the delivery of Tejas and Sukhoi
aircraft to the Indian Air Force (IAF). Also, the cancellation of the
$20-billion MMRCA (medium multi-role combat aircraft) project to acquire 126
fighters from Rafale was blamed by the political masters on HAL’s incapability
to handle such a project. Since the government is the sole client of defence
gears, the domestic private manufacturers should work together with the
government as well as foreign partners. India is the world’s largest defence
weapons importer. The foreign suppliers are largely private companies. For
decades, India did not allow its private sector’s entry into armament
manufacturing on security grounds. Although, India had no problem in regularly
importing arms, ammunitions and security devices from foreign private
manufacturers. The country distrusted its private sector as an unsafe source
for modern defence gadgets. The logic is difficult to digest.
However,
while selecting private sector partners in armament production, the government
must examine thoroughly their financial and technical capabilities to ensure
that supplies keep quality standard and delivery schedule. As a sole buyer in
an armament procurement deal with a foreign supplier, it must have a say in the
selection of a domestic part-manufacturing partner of the overseas defence
supplier. Unfortunately, by its own official admission, this principle was
lately overlooked by the government in the Rafale deal for unknown reasons. It is difficult to understand how did the
government accept Dassault Aviation’s choice of a local cash-strapped defence
manufacturing novice — Anil Ambani group-led Reliance Defence — as the private
Indian offset partner in the Rafale deal.
Going by the Indian government’s version, Reliance Defence was chosen by
the French suppliers. It may have been an ignorant act on the part of the
French manufacturer-suppliers, but how could the government accept such a
questionable choice, especially given the group’s poor financial condition and
market reputation, in one of its major war plane purchase contracts in decades?
The
Rafale war plane purchase deal was negotiated and clicked between the two
governments. In case the Indian government was not too comfortable with
Reliance Defence’s participation in the supply contract of such a high-profile
lethal defence equipment supply deal, it could have at least raised the issue
with the French government. After having signed a $8.7-billion deal for two
Rafale squadrons (36 planes) in September 2016 as an emergency purchase to
arrest the worrying slide in the IAF’s strike capabilities, the India government’s oblivious attitude
towards the status of Dassault’s Indian private partner is inexplicable. The 36
fighter planes are supposed to be with the Indian Air Force by September 2022.
As it stands now, IAF would appear to be the weakest in terms of strike
capability among the country’s three defence forces. It would be a small but
very important acquisition by IAF. Over a decade ago, India floated a global
tender for 126 multi-purpose strike places that failed to materialise.
Poor
attention and low annual budget provision by successive governments have landed
IAF in a critical situation in terms of fire power. Over the years, its
operational squadron strength got depleted to 34 from 39. The government’s approved strength of IAF’s
squadrons is 42. In the recent decades, more than 50 percent of India’s MiGs
have crashed. Defence experts say due to its reliance on a fleet of ageing
Russian-made MiG and French Mirage fighters, India is vulnerable in the skies.
Almost half of India’s fighters are due to retire in 10 years — from the start
of 2015 until 2024. The 36 Rafales from France and 32 Su-30 MKIs from Russia
are expected to partly cover the depleted strength of IAF. The country’s air
force wing should have at least another 70-80 strike planes to keep its 42
squadrons humming with activity. It is important that all major arms import
contracts should have local manufacturing and technology transfer provisions.
And, to ensure that such deals become successful, India’s private sector
aspirants looking forward to partner with foreign manufacturer-suppliers should
be seen as financially and technically dependable for such collaborative
efforts. The government may invite some of India’s top hi-tech enterprises such
as the Tata group, Larsen & Toubro, BHEL, Mahindra and Mahindra and
Kirloskar’s to chalk out a road map for private participation in high-end
defence manufacturing.
It
is not India’s strategic interest to remain forever import dependent on defence
equipment. The growing military strength of neighbouring China and Pakistan
pose a major challenge to India’s defence forces. India shares 3,323 km of its
land border with Pakistan. This border runs along the States of Gujarat,
Rajasthan, Punjab and Jammu & Kashmir. The Indo-Pakistan border has varied
terrain and distinct geographical features. The land border with China is
4,056-km long. It traverses five Indian states: Jammu and Kashmir, Uttarakhand,
Himachal Pradesh, Sikkim and Arunachal Pradesh. The rising strategic
relationship between Pakistan and China adds to pressure on India’s defence
preparedness. China is flying locally built fourth-generation J-10 fighters and
testing two fifth-generation stealth fighter jets. Meanwhile, Pakistan is
upgrading its Lockheed Martin (LMT.N) F-16 fighter planes and also using JF-17
warplanes that were developed with China. Some of India’s private sector
engineering firms are of global standard. The earlier the government induce
them to hi-tech defence manufacturing the better it is for the country. (IPA Service)
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