Monday, February 7, 2011

Why India-US defence deals have become big business


C130 J Super Hercules Experts believe Indian-US defence co-operation is just beginning to take off
Hitting the tarmac at the Hindon airbase near the Indian capital, the C130 J Super Hercules is the Indian Air Force's latest acquisition.
It is one of six military transport aircraft ordered from the US in a deal worth almost $1bn.
Aimed at enhancing the special operations capacity of the Indian armed forces, it is the first major US defence sale to India in over 10 years.
For the American manufacturer Lockheed Martin, the arrival of its fleet is a step forward.
"The Indian government is slowly expanding its scope to different avenues to acquire different products," says its Chief Executive, Roger Rose.
"With the C130 J, we will be here for 30 years and we expect to expand in other areas as well."
This week, Lockheed Martin is taking part in the Aero India show in Bangalore, where some of the top aircraft manufacturers from around the world will display their latest wares.
Economic opportunity India is looking to spend more than $50bn over the next five years to modernise its armed forces, including a $10bn deal to buy 126 new fighter jets.
Lockheed is hoping it will win the country's biggest defence contract and sell its F-16IN Super Viper combat aircraft.

Start Quote

Puneet Kaura
While the US is entering the Indian market, we are also getting access to some state-of-the-art technologies which will be to the benefit of our customers”
End Quote Puneet Kaura Samtel Display Systems executive director
With the US economy still recovering, it is countries like India that present an opportunity to American firms.
On a mission to turn warming political ties into business, US Commerce Secretary Gary Locke is visiting India this week.
With him are leaders of 24 US companies, including major players in defence and nuclear power.
It comes shortly after Washington ended most restrictions on sensitive technology exports to Delhi.
Secretary Locke is hoping to seize on the opening and boost American exports to India. And by promoting hi-technology goods, Mr Locke wants to create more job opportunities back home.
His trip is the first by a US cabinet member to India since President Obama's visit in November.
"When President Obama came to India and said I want to seek India's help in creating jobs, what he did not say is that one Boeing or another company's aircraft we buy produces 10,000 jobs in the US," says Dr Amit Mitra, the secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI).
He adds that India is a big job creator in the US, a reason why Mr Locke is making stops in Delhi, Mumbai (Bombay) and Bangalore to cut more deals.
As more American businesses hope to enter the hi-tech sector in India, it is local companies like Samtel Display Systems that want to benefit as well.
'New collaborations' At its manufacturing lab in the outskirts of Delhi, technicians are mounting and testing electrical units.
Samtel Display Systems factory India is eager to acquire more technological know-how
Samtel develops cockpit display systems for military and commercial use.
The company's Executive Director, Puneet Kaura, says better trade relations between the US and India means it can get its hands on technology that has been so far inaccessible due to export restrictions.
"While the US is entering the Indian market, we are also getting access to some state-of-the-art technologies which will be to the benefit of our customers," said Mr Kaura.
"This wasn't happening before and with this new change I think the scenario will look very different in coming years. It would be in the form of new business opportunities, new collaborations on the technology front and redefining the future as we move forward."
India is fast transforming itself from a regional power to a global giant. Its rapid growth has managed to grasp the attention of many Western economies including America.
By forging closer defence and trade ties, it is now becoming a key market for the Obama administration's National Export Initiative (NEI), which aims to double US exports in five years.
But while it is helping the American economy to recover, India hopes that better trade relations will also be beneficial for its own local companies, many of which share Mr Kaura's eagerness to acquire up-to-date equipment from overseas.

Cambodia calls for UN buffer zone at Thai border

 
Cambodia's prime minister has called for a UN buffer zone in a disputed area on its border with Thailand.
Hun Sen made the appeal as Cambodian and Thai troops exchanged fire around the 11th-Century Preah Vihear temple for a fourth day.
At least five people were killed in clashes over the weekend and thousands of civilians have fled the area.
UN Secretary General Ban Ki-moon has called on both sides to "exercise maximum restraint".
It has been the most sustained fighting between the two neighbours in years.
The clashes have claimed the lives of two soldiers and a civilian from Cambodia, one Thai soldier and a Thai civilian - though the two countries' media have reported differing casualty figures.
Each country accuses the other of encroaching on its territory and of firing first.
The Cambodian government says a Thai bombardment has damaged a wing of the ancient temple - but Thai officials have reportedly rejected the claim.
'Self-defence' Mr Hun said on Monday that the confrontation was "threatening regional security".

Analysis

Once again the temple of Preah Vihear has found itself in the middle of a nasty border squabble. Artillery, rocket and small-arms fire broke the peace on Monday morning - as well as an overnight ceasefire.
The Cambodian authorities say that Preah Vihear has been seriously damaged - and that a wing of it has collapsed. They've warned the UN's cultural body, Unesco, that the World Heritage site is under attack.
Thailand has denied that it's targeting the temple - and accused Cambodia of turning the religious monument into a military base.
Both sides have accused the other of opening fire first - and both have written to the UN Security Council. There, the approaches divide. Cambodia wants third-party intervention - while its larger neighbour insists the two countries should be able to work it out between themselves.
"We need the United Nations to send forces here and create a buffer zone to guarantee that there is no more fighting," he said during a university graduation ceremony in the capital, Phnom Penh.
"We will go to the UN Security Council whether you like it or not."
Mr Hun noted that Cambodia had contributed to UN missions in Africa, according to quotes on Xinhua.
He had already asked the UN Security Council to help stop what he called Thailand's "repeated acts of aggression" against his country, and asked for an emergency meeting of the Security Council.
Thailand sent its own letter to the Security Council to protest against "repeated and unprovoked armed attacks by Cambodian troops".
The Thai foreign ministry reiterated on Monday that Thai troops had acted in "self-defence".
"Thai troops had exercised maximum restraint and used force only as necessary, in a manner proportionate to the threat against them," a ministry statement said.
"Additionally, fire was directed only at military targets from where the attacks were launched by Cambodian troops."
The foreign ministry also said more than 6,000 Thais from the border area had been evacuated.
Thai nationalists At the UN, Mr Ban's office said he was "deeply concerned".
Map
"The secretary-general appeals to both sides to put in place an effective arrangement for cessation of hostilities and to exercise maximum restraint," it said.
No injuries were reported after the latest, brief exchange of fire on Monday.
The International Court of Justice ruled in 1962 that the Preah Vihear temple belonged to Cambodia.
Thailand accepts Cambodia's sovereignty of Preah Vihear, however the land surrounding the temple is still disputed.
In 2008, Cambodia was awarded Unesco World Heritage status for the temple, which further angered Thailand.
The most recent tension was sparked last week, when a Cambodian court sentenced two members of a Thai nationalist movement to up to eight years in prison after finding them guilty of espionage.
The two were among seven Thai politicians and activists charged with illegal entry by Cambodia after crossing into a disputed border area in December.
The case has outraged Thai nationalists.
Members of the People's Alliance for Democracy (PAD), known as the "yellow-shirts", have been staging protests in Bangkok, urging the government to take a tougher line over the border issue.

Robot X-47B stealth bomber test flight

New X-47B unmanned stealth bomber The X-47B stealth bomber takes off for its first test flight
Military chiefs in America say a new, unmanned stealth bomber has carried out its first test flight.
The X-47B jet is being designed by weapons manufacturer Northrop Grumman for the US Navy.
It was in the air for 29 minutes during its maiden flight and reached an altitude of 5,000 feet.
Officials say it will help form part of a new generation of unmanned drones and works like a smaller version of the B-2 Stealth Bomber.
As such it would be very different from the current fleet of remote controlled military planes like the Predator and Reaper.
Designing a tailless, fighter-sized unmanned aircraft from a clean sheet is no small feat
Janis Pamiljans VP Northrop Grumman
Instead the X-47B would be virtually invisible to radar and fly at much faster speeds than those older, propeller driven machines.
£395 million contract In a statement Captain Jaime Engdahl, a programme manager for the warplane, said: "Today we got a glimpse towards the future as the Navy's first-ever tailless, jet-powered unmanned aircraft took to the skies."
The flight was primarily designed to test the jet's guidance and navigation systems and the aerodynamic control of the tailless design.
It was controlled from the ground by a joint team of the company's engineers and Navy specialists.
X-47B stealth bomber Northrop is building the bomber as part of a £395 million contract signed in 2007.
Janis Pamiljans is vice-president of Northrop Grumman's Aerospace Systems sector.
"Designing a tailless, fighter-sized unmanned aircraft from a clean sheet is no small feat.
"Commitment, collaboration and uncompromising technical excellence among the Navy [and] Northrop Grumman made today's flight a reality.
"We are indeed honoured to have given wings to the Navy's vision for exploring unmanned carrier aviation."
Although it will be several years before the X-47B is ready for operations officials say it should have its first test flight from an aircraft carrier in 2013.

Iran unveils missiles, satellites as warning to foes


Mohammad Ali Jafari
Iranian Revolutionary Guards commander Mohammad Ali Jafari speaks during a press conference in Tehran on February 7, 2011 where he announced that Iran is mass producing a ballistic missile capable of travelling at a speed three times faster than that of sound and hitting targets on high seas. – AFP Photo
TEHRAN: Iran showed off new missile and satellite technology on Monday, and told its enemies it had “complete domination” of the entrance to the oil-rich Gulf.
As part of Iran’s annual revolution celebrations, a time traditionally marked by new technological and military advances, President Mahmoud Ahmadinejad unveiled locally-made satellites while a senior commander showed off mass produced missiles.
“We should reach a point where we will be able to provide our knowledge and technology in the aerospace field to other countries,” Ahmadinejad said in a speech, unveiling the satellites he said were for scientific purposes, and showing film of a satellite-carrier rocket.
Although Iran is not engaged in any military conflict, it is on constant alert against possible attacks from the United States and Israel which have not ruled out possible pre-emptive strikes to stop Tehran getting nuclear weapons.
Iran says it has no intention of making nuclear bombs and that its atomic programme, which is the subject of US, European and UN sanctions, is entirely peaceful.
In 2009, Iran launched a domestically-made satellite into orbit for the first time, a step that increased the West’s fear that the Islamic Republic is seeking to build a nuclear bomb and missile delivery systems.
The chief commander of the Revolutionary Guards, Mohammad Ali Jafari, said the new mass-produced missile would be able to target enemies at sea.
“Its speed is three times greater than the speed of sound and it cannot be traced and deactivated by enemies,” official news agency IRNA quoted Jafari as saying.
Another Guards commander, Ali Fadavi reiterated Iran’s threat to close the Strait of Hormuz, the narrow channel through which 40 per cent of the world’s seaborne oil trade passes.
“The Persian Gulf and the Strait of Hormuz are under the complete domination of the Revolutionary Guards … and it would be blocked in case of a threat,” he said, according to the semi-official Mehr news agency.
Foreign analysts say Iran would be reluctant to take such a drastic step as it would cut off its own oil exports.

Iran Mass Producing New Anti-Ship Missiles

TEHRAN - Iran is mass producing a new ballistic missile that can travel at more than three times the speed of sound and hit targets on the high seas, top commanders said on Feb. 7.
Cmdr. Mohammad Ali Jafari, who heads the elite military force, the Revolutionary Guards, said the missile - named "Persian Gulf" - had a range of 300 kilometers.
"Iran is mass producing a smart ballistic missile for sea targets with a speed three times more than the speed of sound," state news agency IRNA quoted Jafari as saying about the new missile.
He said the missile was "undetectable and can't be neutralized by enemies," without specifying the name. "It has very high precision in destroying targets," Jafari added.
"As the enemy's threats will likely come from the sea, air and by missiles, the Guards have been equipped with capabilities to neutralize the enemy's advanced technology," he said, according to another Iranian news agency, ISNA.
Iran's missile and space programs have sparked concern in the West that such advanced technologies, combined with the nuclear know-how which the nation is acquiring, may enable Tehran to produce an atomic weapon.
Tehran denies its nuclear program has military aims.
The new missile can be fired "from surface ballistically and can hit enemy vessels from a high altitude," Amir Ali Hajizadeh, head of the Guards' air force wing told Fars news agency.
"The missile is named Persian Gulf ... its warhead will carry 650 kilograms of explosives," he said, adding that the missile was powered by solid fuel and designed by the Guards.
Footage on state television showed the missile being fired atop a mobile launcher from a desert terrain.
The announcement of the new missile comes as Iran holds celebrations to mark the 32nd anniversary of its Islamic revolution that toppled the U.S.-backed shah.
Iran uses the run-up to the Feb. 11 anniversary to tout its scientific and technological achievements.
In a separate function, Iran unveiled four new home-built satellites and engines of a rocket.
Meanwhile the head of naval Guards' naval forces, Ali Fadavi, issued a warning that Iran will hit back if it came under attack.
"The Islamic republic has the ability of blocking the Strait of Hormuz if threatened," Fadavi told Mehr news agency.
"We will deliver a very firm response if any powers do the slightest thing to hurt the security of the region."
Iranian military officials regularly warn of blocking the Strait of Hormuz - the route through which 40 percent of world's oil supply by sea passes - in case Iran comes under attack.
The U.S. and Israel have never ruled out the option of military strikes against Iran to stop its nuclear program.