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India, US agree on arms deal, but technology transfer remains key

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Rajat Pandit, TNN | Aug 9, 2014, 05.34AM IST

NEW DELHI: India and the US on Friday agreed to go in for co-development and co-production of advanced weapon systems, with Washington pushing New Delhi for early decisions on offers ranging from the next-generation Javelin anti-tank guided missiles (ATGMs) to unmanned aerial vehicles (UAVs).Modi-Chuk

But India will not jump headlong into any venture without first ensuring the US sticks to its promise to provide “ground-breaking technology” on par with its closest allies, even though the Modi government is keen to strengthen the moribund domestic defence production sector.

The decision to revive the floundering Defence Trade and Technology Initiative (DTTI) between the two countries, as also work towards the extension of the 10-year India-US defence framework, was taken after visiting US defence secretary Chuck Hagel held delegation-level talks with his Indian counterpart Arun Jaitley.
But India is still not fully convinced about the US as a reliable long-term, high-end defence supplier, given its propensity to impose sanctions and stringent export control laws. The US, however, believes it can effectively marry trade and technology, with benefits for both.

Stressing that “security, stability, freedom of sea lanes, economic development and energy” is in the interest of the two countries as well as the Asia-Pacific region, Hagel said the US wants to be a partner in India’s military modernization and recognises its needs to strengthen its defence-industrial base.
The US will be led by its under secretary of defence acquisition, technology and logistics Frank Kendall in the DTTI. The Indian points-man, in turn, will be the defence production secretary, which is a comedown from before since former national security advisor Shivshankar Menon earlier led the initiative. Jaitley, incidentally, accepted Hagel’s invite to visit Pentagon when he goes to Washington to attend the annual meetings of IMF and World Bank.

Of all the joint development and production offers, the US is especially keen to push the case for fourth-generation Javelin ATGMs, which even President Barack Obama has personally pushed with Modi. The Indian ATGM project, after all, is going to be worth over $2.5 billion. Javelin is in contention with the Israeli “Spike” tank-killing missiles to bag the project, as was earlier reported by TOI.

With the 1.13-million Indian Army grappling with a huge shortfall of 44,000 ATGMs of different types, the project involves an initial direct acquisition of the man-portable “tank killers”, with a strike range of 2.5km, followed by technology transfer to defence PSU Bharat Dynamics for large-scale indigenous manufacture. The Army is keen to equip all its 382 infantry battalions with third and fourth-generation ATGMs.

Comments

Vladimir Sikorski (Ulyanovsk. Russia) 3 hrs ago
In the 50’s and 60’s the Russians supplied us with their MIG’s, T-72 tanks and other weapons. The technology was transferred at that time. What happened after that. Were you guys able to develop further from that platform and make your own planes. No. The French transferred their Mirage aircraft technology in the 70’s and 80’s. Did you develop your own from that platform. No. It took 30 years to develop a 3rd generation aircraft called the Tejas. The Arjun tank was forced on the Army. So why do you Indians keep harping about technology transfer. Even after we give you all the books and manuals and the design features for a product, your paan chewing babu’s of the DRDO and the Defence Ministry are unable to develop anything over and above that. It is way better and cheaper to employ German and Japanese engineers and scientists, pay them well in India and they will develop your arms industry for you. You don’t have much time. World War III is round the corner.

Himanshu Agarwal (Location) replies to Vladimir Sikorski 54 mins ago Bronze : 189189 PointsWordsmith 1News King 1Frequent Flyer 2
Yeah probably India should focus of Developing worlds class universities and then investing similar amount to restructure and new-hiring in DRDO.

Jagdish Sinha (Patna. Bihar) 1 day ago
The USA now is willing to give all the technology India wants as it knows that the idiots in DRDO cannot duplicate or build on anything. The technology for the MIG and the T-90 tanks was transferred by Russia long time ago but we are still unable to build on it and innovate based on the earlier model. It took 30 years to build the Tejas. What a joke it turned out to be. The tech for the French planes was also provided, but just to upgrade the planes they spent billions and had to send them to France. Poor show India.

Swami Vas (Hong Kong) 103 Followers1 day ago Gold : 19.5K19495 PointsInfluencer 7Wordsmith 7Networker 2
PULSE OF INDIA: The fact that India is unconvinced of the reliability of US as a trustworthy defence supplier is absolutely understandable and perfect, considering the past experiences where the US had utterly failed to keep its promises on some important deals. So, it is only right for India to insist that all major deals should be fair and wherever appropriate include transfer of technology which was rightly pinpointed by the Prime Minister. The US belief that it can “effectively marry trade and technology” benefitting both is simply yet another striking example of marriage of convenience! The defence needs of India are indeed varied and important, some even urgent, but the Indian requirements are also huge and long-standing. Thus, it is important for India to ensure continuity in the supply chain which can only be achieved by establishing manufacturing facilities within the country. The keenness of US to strike deals with India on the latest weapons is also equally understandable, especially considering the money-value of the deal as well as its own role as a leading defence equipment exporter but the US should know that from now on all deals with India will have to be on a win-win situation basis! However important or urgent the defence needs are to modernize its armed forces, India should indeed not hurry or plunge into any deals without knowing the depth! India is the largest democracy in the world followed by the US but whether they have been truly friendly or why the US has failed to extend a hand of friendship befitting that status are debatable issues. But one thing is for certain which the world should know that the 21st Century India presently under Modi leadership is going to be a power to be reckoned with! (cc: BJPCALL-LC / PMO /MOD)

Krishna Jha:22 hours ago US Is the leader in front line technology. Before signing any agreement we must ask for TOT. Why to reinvent the wheel. As our limitations to re engineer MIG has been unsuccessful but translating blue more..

 

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Antony recommends CBI probe into DRDO recruitment scam

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IBN – LIVE

Press Trust of India
Nov 17, 2013 at 06:25 pm IST

Defence Minister AK Antony has recommended a CBI probe into an alleged recruitment scam in DRDO where several senior officers including two of its former chiefs are under the scanner.
The Defence Minister has recommended a CBI probe into the alleged recruitment scam in which two former DRDO chiefs and a former Chief Controller of the organisation are under scanner for allegedly giving jobs to their kins in alleged violation of rules and regulations, sources said on Sunday.
The vigilance wing of the Defence Ministry had been investigating the alleged wrongdoings in recruitment in the premier defence research agency for over a year.

Recently, a Director-rank officer of the DRDO was under scanner for his alleged role in an appointment made against the laid down procedures and was suspended hours before his retirement from service in May.
The official, a senior scientist, was suspended by the department as an inquiry was pending against him in a recruitment-related case where he allegedly recruited his own daughter in the organisation.
The matter had come to light after the Central Vigilance Commission (CVC) recommended action against two DRDO officials for their alleged role in the case.
The official suspended was involved in promotion and selection of scientists in the organisation.
The CVC had also recommended review of the appointment of the scientist’s daughter who is now working in DRDO as a ‘Scientist C’.

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Antony recommends CBI probe into DRDO recruitment scam

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Deccan Herald

New Delhi, Nov 17, 2013 (PTI):
Defence Minister A K Antony has recommended a CBI probe into an alleged recruitment scam in DRDO where several senior officers including two of its former chiefs are under the scanner.

The Defence Minister has recommended a CBI probe into the alleged recruitment scam in which two former DRDO chiefs and a former Chief Controller of the organisation are under scanner for allegedly giving jobs to their kins in alleged violation of rules and regulations, sources said here today.

The vigilance wing of the Defence Ministry had been investigating the alleged wrongdoings in recruitment in the premier defence research agency for over a year.

Recently, a Director-rank officer of the DRDO was under scanner for his alleged role in an appointment made against the laid down procedures and was suspended hours before his retirement from service in May.

The official, a senior scientist, was suspended by the department as an inquiry was pending against him in a recruitment-related case where he allegedly recruited his own daughter in the organisation.

The matter had come to light after the Central Vigilance Commission (CVC) recommended action against two DRDO officials for their alleged role in the case.

The official suspended was involved in promotion and selection of scientists in the organisation.

The CVC had also recommended review of the appointment of the scientist’s daughter who is now working in DRDO as a ‘Scientist C’.

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Antony recommends CBI probe into DRDO recruitment scam

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INDIAN EXPRESS

PTI : New Delhi, Sun Nov 17 2013, 18:20 hrs
Defence Minister A K Antony has recommended a CBI probe into an alleged recruitment scam in DRDO where several senior officers including two of its former chiefs are under the scanner.

The Defence Minister has recommended a CBI probe into the alleged recruitment scam in which two former DRDO chiefs and a former Chief Controller of the organisation are under scanner for allegedly giving jobs to their kins in alleged violation of rules and regulations, sources said on Sunday.

The vigilance wing of the Defence Ministry had been investigating the alleged wrongdoings in recruitment in the premier defence research agency for over a year.

Recently, a Director-rank officer of the DRDO was under scanner for his alleged role in an appointment made against the laid down procedures and was suspended hours before his retirement from service in May.

The official, a senior scientist, was suspended by the department as an inquiry was pending against him in a recruitment-related case where he allegedly recruited his own daughter in the organisation.

The matter had come to light after the Central Vigilance Commission (CVC) recommended action against two DRDO officials for their alleged role in the case.

The official suspended was involved in promotion and selection of scientists in the organisation.

The CVC had also recommended review of the appointment of the scientist’s daughter who is now working in DRDO as a ‘Scientist C’.

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Nearly 700 scientists quit DRDO in six years, says Govt

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NEW DELHI, December 5, 2012 – THE HINDU

Scientists install a DRDO-developed bio-toilet in the icy vastness of Siachen. File photo: DRDO

Nearly 700 scientists have resigned from India’s premier military research body DRDO in little less than six years from 2007, Defence Minister A K Antony said on Wednesday.

In a written reply to a question in the Rajya Sabha on resignation of scientists from Defence Research and Development Organisation(DRDO), Mr. Antony said a total of 637 scientists resigned during 2007-2011 and 50 scientists up to October 31 this year.

Scientists who had resigned have either cited personal or domestic reasons for leaving DRDO, Mr. Antony said.

However, it is assumed that increased opportunities or incentives available in other organisations and industries are the main reason of such resignation, he added.

On incentives taken as corrective measures to restrict resignation of scientists from DRDO, Mr. Antony said excellent infrastructure facilities have been created at work places and residential complexes and two additional increments have been given on promotion to each grade.

To another question, Mr. Antony said DRDO is a subordinate organisation under Defence Ministry and does not enjoy any special powers or autonomy because of its strategic nature of work.

Asked whether DRDO enjoys a huge amount of autonomy because of its strategic nature of work, he said, “DRDO is a subordinate organisation under the Department of Defence( R&D) in Defence Ministry and is governed by central government rules and regulations.

“Therefore, DRDO as an organisation does not enjoy any special powers or autonomy because of its strategic nature of work.”

Revised delegation of financial powers of Director General of DRDO was carried out in 2010 to address a long standing requirement and was done after due process and deliberation, he said.

“The process of exercise of these powers has been further rationalised and a corrigendum has been issued by Department of Defence (R&D) on November 21, 2012 as a partial modification to the earlier financial powers,” the minister added.

____________________________________________________________

Question and Answer in  RAJYA SABHA

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
RAJYA SABHA

QUESTION NO 1295
ANSWERED ON 05.12.2012

Resignation of scientists from DRDO

1295 SHRI DILIPBHAI PANDYA

Will the Minister of DEFENCE be pleased to satate :-

(a) whether it is a fact that about 650 scientists have resigned from their posts in Defence Research and Development Organisation (DRDO) during the last five years;

(b) if so, the year-wise and post-wise details thereof;

(c) whether low emoluments in DRDO are the reasons for their resignation; and

(d) if so, what corrective steps are taken / proposed to be taken by Government to persuade the scientists not to resign?

ANSWER

MINISTER OF DEFENCE
(SHRI A.K. ANTONY)

(a) A total of 637 scientists have resigned during 2007-2011 and 50 scientists upto 31st October 2012.

(b) Year-wise and post-wise details are given below:-

Post Year
2007 2008 2009 2010 2011 2012
(as on 31st October 2012)
Scientist ‘B’ 166 78 41 38 58 35
Scientist ‘C’ 86 58 18 18 21 12
Scientist ‘D’ 13 8 2 2 5 3
Scientist ‘E’ 2 5 1 3 1 –
Scientist ‘F’ 6 1 3 2 1 –
Total 273 150 65 63 86 50

No Scientist ‘G’, Scientists ‘H’ and Distinguished Scientist have resigned during 2007-2012.

(c) Scientists who had resigned have indicated their personal / domestic grounds as the reasons for leaving DRDO. However, it is assumed that increased opportunities / incentives available in other organizations / industries is the main reason of such resignation.

(d) The following incentives have been granted as corrective measures to restrict resignation of scientists from DRDO:-

• Two additional increments on promotion to each Grade.
• Up to six variable increments on promotion granted on fast track.
• Professional update allowance to all scientists.
• Fast track promotions through assessments.
•Opportunity to acquire higher qualifications at reputed institutes viz. IIT’s / IISc, etc. as DRDO sponsored candidate.
•Young Scientists, Scientist of the Year and other DRDO Awards in recognition to their contributions, etc.
• Excellent infrastructure facilities have been created at work places and residential complexes.

Government is making all efforts to grant Performance Related Incentive Scheme (PRIS) to DRDO scientists at par with scientists of Department of Atomic Energy (DAE) and Indian Space Research Organisation (ISRO).

 

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‘Strategic nature of work doesn’t give DRDO special powers’

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Last Updated: Wednesday, December 05, 2012, 17:43 ZEENEWS.COM

New Delhi: DRDO is a subordinate organisation under Defence Ministry and does not enjoy any special power or autonomy because of its strategic nature of work, Defence Minister A K Antony told the Rajya Sabha on Wednesday.

In a written reply to question whether DRDO enjoys a huge amount of autonomy because of its strategic nature of work, he said, “DRDO is a subordinate organisation under the Department of Defence R&D in Defence Ministry and is governed by central government rules and regulations.

“Therefore, DRDO as an organisation does not enjoy any special powers or autonomy because of its strategic nature of work.”

Revised delegation of financial powers of DG of DRDO was carried out in 2010 to address a long standing requirement and was done after due process and deliberation, he said.

“The process of exercise of these powers has been further rationalised and a corrigendum has been issued by Department of Defence (R&D) on November 21, 2012 as a partial modification to the earlier financial powers,” Antony said.
In reply to a question on resignation of scientists from DRDO, he said, “A total of 637 scientists have resigned during 2007-2011 and 50 scientists up to October 31, 2012… Scientists who had resigned have indicated their personal or domestic grounds as the reasons for leaving DRDO.”

However, it is assumed that increased opportunities or incentives available in other organisations and industries are the main reason of such resignation, he added.

On incentives taken as corrective measures to restrict resignation of scientists from DRDO, he said excellent infrastructure facilities have been created at work places and residential complexes and two additional increments have been given on promotion to each grade.

Replying to a query on ‘One Rank One Pension’ for the ex-servicemen, Minister of State for Defence Jitendra Singh said, “Substantial improvements have been made in the pensions of the Armed Forces personnel after 2006. However, improvement of pensionary benefits is an ongoing process.”

He also said that the recommendations of a government committee, headed by Cabinet Secretary, have been accepted by the government and are in the process of implementation.

PTI

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DRDO scientist suspended hours before his retirement

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Express news service : New Delhi, Sat Dec 01 2012, 04:02 hrs
The DRDO Friday suspended a senior scientist, Dr Arun Kumar, just three hours prior to his superannuation for alleged irregularities in recruitment.

The Central Vigilance Commission had passed strictures against Kumar in August as well as asked the Defence Ministry to reconsider his daughter’s appointment as scientist ‘C’ by the DRDO. Another senior official, Dr Neelam Bhalla, had accused Kumar of favouritism.

However, an internal panel had given Kumar a clean chit in June 2012, stating that “no favour or undue advantage was given to his daughter”.

The DRDO spokesperson refused to comment but Dr W Selvamurthy, Chief Controller R&D for Life Sciences confirmed Kumar’s suspension.

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CBI to grill MoD officials in Tatra case

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New Delhi, April 26, 2012, DHNS:
The Central Bureau of Investigation (CBI) is likely to quiz Defence Ministry officials in connection to the alleged irregularities in the supply of all-terrain tatra trucks to the Army.

Sources said the CBI has zeroed in on at least six Defence Ministry officials.

Besides, the CBI is planning to question BEML CMD V R S Natarajan once again, sources said, adding that the investigating officers were not convinced with Natarajan’s responses in the previous grilling session.

Meanwhile, the CBI has once again questioned Vectra Chairman Ravinder Rishi and some of his associates in connection with the surreptitious deal. The probe agency however clarified that besides Rishi, none of the persons questioned till now, is an accused in the case. “They are being questioned just to clarify facts of the case,” CBI officials said.

Tatra Sipox UK, owned by Rishi, had inked a deal with BEML in 1997, which was in alleged violation of defence procurement rules that specified “procurement should be done directly from original equipment manufacturer only.” The central probe agency has alleged that since Tatra Sipox UK was not the original manufacturer of the all-terrain trucks, the rule for defence procurements was violated.

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Skeletons tumble out of Tatra-tainted Natarajan’s closet

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FRIDAY, 20 APRIL 2012 00:16 PNS | NEW DELHI HITS: 263 – The Pioneer

Under VRS Natarajan, PSU giant BEML was involved in large scale irregularities that went beyond Tatra truck deal. The CBI on Thursday registered an FIR against him for cheating and criminal conspiracy in hiring a consultancy firm without tendering process.

The noose is fast tightening around Natarajan, who has been Chairman and Managing Director of defence PSU BEML for almost a decade, with the CBI set to more cases following sanction for prosecution granted by the Defence Ministry.

At least six complaints of alleged financial misdemeanour by Natarajan is under CBI scanner.

After registering a case against Natarajan and Director of Coimbatore-based Astral Consultants CS Srivatsan for allegedly tweaking tenders to favour the private firm by cheating BEML, the CBI conducted searches at the official and residential premises of the duo at Bangalore and Coimbatore.

Natarajan, Srivatsan and other unnamed persons have been booked under Section 120-B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code and certain provisions of the Prevention of Corruption Act.

The case related to award of contract for the implementation of Enterprises Resource Planning Project in the public sector undertaking during 2004-09.

According to the CBI FIR, Natarajan and Srivatsan were part of alleged criminal conspiracy to award work worth Rs40 crore to Astral Consultants.

“It is alleged that the accused persons were parties to a criminal conspiracy entered amongst themselves at Bangalore and other places during 2004-09 to cheat M/s BEML in the matter of award of different works relating to the implementation of Enterprises Resource Planning Project in M/s BEML causing wrongful loss to M/s BEML and wrongful gain to others,” a CBI spokesperson said here.

Teams of CBI officials reached the Bangalore-residence of Natarajan, residence of Srivatsan, besides Coimbatore office of Astral and took into their possession some “incriminating” documents related to the tendering process and communications exchanged with the company, CBI sources said.

Natarajan is already facing CBI heat for his suspected role in a separate case regarding alleged irregularities in the procurement and supply of Tatra all terrain vehicles to Army. Natarajan has not been named so far in the Tatra procurement scandal case but the agency suspects that he was the mastermind of the entire scam.

The agency suspects that Natarajan in collusion with Vectra boss Ravi Rishi renewed the deal between BEML and UK-based Tatra Sipox in 2003, four years before the same was to be renewed, for supply of the all terrain vehicles to the Army. Tatra Sipox, according to the CBI FIR, was an intermediary firm and not an original equipment manufacturer. The original manufacturer of the Tatra trucks is Tatra Venus and defence procurement rules provide for procurement from OEMs only.

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Money laundering in Tatra truck deal: ED tightens noose on Ravi Rishi

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Jagran Post -Posted on: 13 Apr 2012, 12:21 PM

New Delhi: After being interrogated by the CBI for his alleged role in the Tatra truck deal, the NRI businessman Ravi Rishi now has to face the heat from the Enforcement Directorate (ED), which is tightening its noose around him.

The ED has filed a case against Rishi under the Prevention of Money Laundering Act (PMLA) and is mulling to recover the blackmoney from the accused. After going through the FIR filed by the CBI and the other documents, the ED officials have now decided to look into the case from the perspective of alleged money laundering.

According to sources, the links of the Tatra truck deal have been traced to England, Czech Republic and Slovakia. Earlier, in order to ascertain the original price of the supplies and detection of blackmoney earned by Rishi during the sale of trucks to the BEML, the CBI had sought help from the ED.

On the lines of the CBI, the ED has also made Rishi, BEML, Army and Defense Ministry officials as accused in the money laundering case.

Rishi has been accused of entering into a conspiracy with the officials of the Defence Ministry, Army and BEML in signing an agreement with England based company Tatra Sipox. As per the agreement, Tatra Sipox had purchased components of trucks from Czech Republic and Slovakia and supplied it to BEML at double price.

Later, the BEML manufactured trucks from these parts and supplied them to the Army which in return made the payment to Tatra Sipox.

According to the investigating agency, a share of the blackmoney earned by Rishi in the deal was distributed to the officials of the Army, Defence Ministry and BEML. The ED is now looking for the officials involved in the scam to freeze their properties.