Assignment

DEFENCE PURCHASING & SUPPLY

By: -

The Main Issues and Drivers for

Change in the Defence Environment

Since the inception of modern India, it always been surrounded by enemy

states like Pakistan, China, etc. In the spam of 70 years, India fought 5

wars with its neighbors.

India. The various governments led by leaders with various personalities,

outlook and aspirations also had visible impact on these policies.

The developments in Indias immediate neighborhood over the past

decade have led India to take a close look at her foreign and security

policies. There is a widely-sensed need for the rapid modernisation of the

Indian armed forces, which is being reflected in some of the key initiatives

that have been taken up by the Indian government so far (such as Make in

India), so as to address the complex security challenges that emanate

from its hostile neighborhood.

However, the pace of modernisation of the Indian armed forces over the

years has been rather slow, and technologically, they are not where they

should have been. Indigenous development of modern defense hardware

continues to remain a concern and Indian policy aspiration for defense

self-sufficiency remains largely elusive. The Indian defence industry

suffers from major policy, structural, and cultural challenges that beset a

military-industrial complex that continues to struggle in terms of

delivering modern defence hardware that could have added to the greater

Indian defence indigenisation and production.

Experts see a number of systemic flaws in the Indian defence

establishment and civil-military relations, which present major challenges

for Indias military modernisation aspirations. As Indias defence

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requirements are likely to increase in the foreseeable future because of

the dynamic security environment, indigenous development of modern

defence hardware and technology is likely to remain a top priority.

As India is an aspiring great power (and it is believed that great powers

have great arms industries), its ability to acquire autarky and self-

sufficiency in terms of the development of advanced defence hardware

and technology to fulfill the requirements of its armed forces would be

crucial so as to address to its national security concerns.

Modernisation of the IAF

Though we are a fairly balanced force they also have shortages,

reducing force-levels and gaps in our inventory, which are being

addressed with all urgency and governmental support. IAFs

modernisation plan, aims to sustain and enhance its operational potential

and consolidate the specified force levels through judicious and cost-

effective replacements and up gradation of existing resources. It is a

gradual, but transformational modernisation. The approach is three-

pronged preserve upgrade and acquire. All fleets, including transport

and helicopters, with residual life, are being upgraded to contemporary

standards; so also is operational and maintenance infrastructure and

logistic tools. The planned acquisitions are across-the-board and include

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platforms, weapons, sensors, and equipment; spread over the next 10-15

years.

To run through some of our programs, the MiG-27 and Jaguar upgrades are

almost done; the MiG 29, Mirage 2000 are being negotiated and the IL-76,

AN-32, and the helicopter fleets will follow. Capabilities of UAVs will also

be enhanced. Airfield and maintenance infrastructure are also being

enhanced in a phased manner.

The response to RFP for the MMRCA is expected soon. The Hawk AJTs have

been inducted. The first AWACS will be with us this year end. Additional

Dorniers, Boeings and upgraded Cheetah will soon join the fleet. The

contract for C-130Js has already been signed and contracts will soon be

signed for Mi-17 1Vs, ALHs, armed ALHs and additional FRA. The 1st LCA

Sqn may be operational in IOC configuration by 2010. IAF also seeks new

helicopters to replace the Chetaks and a new heavy-lift heptr. Inter-

Government Agreements have been signed for the 5th Generation Fighter

and Medium Transport Aircraft with the Russian Govt.

Air defence will be significantly strengthened with modern weapon-

systems and sensors, including the AWACS & Aerostats. Integration of civil

radars will commence this year, for gap-free surveillance of the entire

Indian airspace. Force-multipliers, air dominance fighters and a

converged, secure Combat Communications Network including the

IACCS and later the ODL will fundamentally alter the IAFs Air Defence

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doctrine. For effective command & control, extended reach and to reduce

the sensors-to-shooter loop, we are laying due emphasis on Networks and

Space, which are essential next steps.

Challenges

The Hardware Technological Challenges

Technology is at the core of an air force acquiring and assimilating it is

our primary challenge. The lack of it curtails national options, impacting

postures and doctrines. Denial and selective availability of technology are

all enmeshed in international relations. As long as operationally feasible,

the IAF supports the national quest for indigenisation. So it is

recommended that acquisition of core-technologies and core-

competencies and developing emerging technologies. Also recommend a

collaborative and participative approach of partnerships between users,

DRDO, the Industry, the Government and foreign vendors. In these

multiple partnerships, we believe that the user must be the captain. We

strongly support the Governments endeavor to transform our current

buyer-seller relationships to joint-ventures, co-development, and co-

production.

Maintenance Challenges

While our response to technological challenges will determine the shape

of things to come, maintenance challenges determine how long they last

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and their cost-effectiveness. Maintainability, which includes logistical

issues, is, therefore, crucial. IAF is proactive on this and has energized

interaction with vendors and entered into long-term spares and repair

contracts. We have also put our materials management and equipment

accounting on-line.

The People and Organisation

While the hardware is important, it is converted into capabilities by

people. Aerospace power requires highly-skilled and impeccably trained

personnel. Also, in aviation, optimum performance usually lies close to

safety margins, which brings in the concern of costs both in human and

material terms. Attracting quality youth, training and retaining them is

another of IAFs challenges. Inculcating qualities of leadership and

innovativeness and ushering in meritocracy and productivity are

important on our agenda. However, the expanding civil aviation sector

exerts a huge pull on this resource and we are doing our best to blend

personal aspirations with organizational compulsions. We need

Government support to make this happen. Updating of skills is an

associated challenge, for which international exposure has been very

useful. But in the long run we might need an Air University. Again, if our

manning is adequate, we would be able to send our people on sabbaticals

of higher learning.

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As the hardware changes, new capacities and capabilities are generated

that sometimes radically alter the way we do business. And it is hard to do

things differently with the old processes, interfaces and organisational

structures. Keeping pace and adapting to the changes, as an organisation,

is another challenge.

Future Opportunities

Shape of Things to Come

Ideally, modernisation should be evolutionary and continuous. Yet, for a

variety of reasons the IAF has in the past modernised in spurts, often as a

reaction to circumstances. Today, the IAF is in throes of a most

comprehensive modernisation, as I described earlier. We call it

transformational, for it will change everything dramatically. Being based

on long-term perspective plans, most of it is already crystallised. Yet, a lot

remains to be determined; many new capabilities are still short of the

decision stage. At this juncture, if we are able to synchronise these plans

with national security objectives, we would really have utilised this

opportunity well. From that arises another opportunity that must be seized

and that is the formal enunciation of long-term national security

objectives, strategies, as well as technology roadmap and indigenisation

strategies.

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Much also depends upon the way aerospace power will develop in the

future. Beyond the MMRCA and FGFA, with their 40-year lives, we are at

2060. It is not easy to guess the shape of aerospace power then. Would

the accent shift to unmanned flight, to missiles; or would air be more of

space. Technological advances are sure to revolutionise military affairs in

future too. Despite the unpredictabilities, it is certain that the need for

application and transportability of national power hard and soft and

thus for aerospace power, with enhanced fundamentals, would remain.

Nations that lack it will seek it, as also will non-state agencies. Aerospace

power is bound to proliferate. We also expect aerospace power to

permeate the national security apparatus more completely, including for

homeland security. IAF foresees greater specialisation; tailored capabilities

for each occasion; an increased dependence on unmanned vehicles;

greater accent on force enhancers; particularly the intangible ones, such

as quality of people and their skills.

Networking and assimilation of space, both interdependent, are already

the way forward and can tilt the balance considerably. A quiet space race

is the current reality and weaponisation, a distinct possibility. Perhaps

more than any other, it is air power that is most significantly enhanced by

the integration of space-enabled capabilities, for there are essential

similarities. Evolving into an aerospace force is thus a logical progression.

But, it is getting crowded up there and we need to act fast. Certainly,

space empowers all, and the IAF supports tri-service initiatives. Yet, any

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fledgling capability requires residing in an appropriate parent capability.

Air Power, or the IAF, are the closest such capability, or organisation

suitable to host and nurture military space. Indias rising status and

acceptability are an opportunity for us to push for creating an adequate

military space capability.

Since IAF requires a comprehensive capability, its future in the long-term,

will largely mirror the future of aerospace power itself. Though this path is

invariably influenced by leading nations, India and countries like it, must

be selective and seek creative variations, both in terms of hardware and

doctrine.

Outward Orientation

We find that our international interactions are increasing. Leading nations

want to engage us and probably seek to include us in their calculations.

Smaller nations look up to us for support, assistance and training. UN

commitments are also considerable. We could ignore these opportunities,

or we could use them to build Indian influence, generate goodwill and

reap multiple dividends.

Synergies

Just as every tool has a place in the toolbox, every discipline too has its

own niche. At the edges of our competencies in complex tasks we often

confront impossibilities or failure. If we traverse the boundaries of our

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discipline into neighbouring or related ones, we can, in concert with them,

achieve our aims. In other words, there are other organs of national power

and we must learn to use them and interface with them effectively. Such

synergy creates desired effects, perhaps at lesser cost and in quicker

time. This calls for wisdom, knowledge of other disciplines and lack of

parochialism. The future also brings with it the opportunity for creating

synergies and national capabilities.

I feel, therefore, that the trick lies in perfecting internal core-

competencies, identifying complimentary capabilities in other

organisations, developing effective interfaces and training to create and

employ a new, enhanced hybrid. We are convinced that such jointness is

the way forward and that core competencies of each Service, indeed of all

organs of national power, must be synergised to generate the required

effect and capability. A capability-based approach from development to

employment will encourage an inter-disciplinary integration and the

coming together of all organs of national power. At the end, it is people

that make an institution or system work. The best ones can be rendered

ineffective for want of skills and commitment and vice-versa. Essentially,

we believe jointness and synergy have less to do with new structures and

ownership, but depends upon joint thinkers, planning, capability creations,

as well as joint training and execution. Perhaps it is better to grow in an

evolutionary manner.

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Similarly, it is also imperative that military and civil aviation integrate, to

take advantage of each others capacities, for better efficiency, cost-

effectiveness and for greater options. We have already made available 19

of our front-line air fields for civil air traffic and also allowed transit

through Air Force controlled air space, to save time and fuel. IAF has also

proposed the flexible use of air space; and the process for integration of

civil and AF radars has begun.

Beyond generating national synergies, aerospace technologies are so

expensive, cutting-edge and hard to develop, that I dare say, our quest of

these increasingly encourages joint-ventures and sharing of knowledge &

resources between nations, and accord opportunity to forge international

synergies.

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