Why India-US defence deals have become big business

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.

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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.

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

Guy De Launey BBC News, Phnom Penh

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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".

"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

Newsbeat technology reporter 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.
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

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.

Budget Delay Hurts USN Shipbuilding, Maintenance

Life under a continuing resolution (CR) already is causing problems inside the U.S. Department of the Navy, and the prospect of operating for an entire year under a CR is sending chills throughout the service.

"That we're still operating under a continuing resolution is a nightmare" that affects every appropriations category, one senior Navy official said. "We've operated under a CR before, but never for this long, and certainly not by the time we're submitting the next year's budget."

A full year of a CR would cause "a severe funding shortfall," said a Navy source.
Among the worst effects is the disruption and uncertainty, one former Navy official said.
"With all that uncertainty, they have to make cuts, and they need to start making them now," the former Navy official said. "They can't plan on getting money. They have to start actions now."
Navy budget director Rear Adm. Joe Mulloy is charged with keeping calm amid the budget storm. Dealing with a few months of the CR can be managed, but problems grow as the second quarter of the fiscal year begins in January.
"We can hold our breath," Mulloy said Feb. 3. "Typically, a lot of contracts are not designed to be let in the first quarter of the fiscal year. But when we go into the second quarter and there's still the potential of a yearlong CR - which has never happened to the entire Department of Defense - you reach a point where you're limited by dollars and by quantity.
"And the dollars become extremely difficult in the operations and maintenance world, and in the manpower costs," Mulloy said. "You have inflation, pay raises, the cost of doing business, along with some programmatic growth - more maintenance, more operations, more whatever. So you end up rolling over, in the Navy's circumstance, $4.6 billion between '10 and '11, the delta [difference] of what I'm short. About $1.5 billion of that is price growth - just the cost of buying fuel, buying things - and the rest of it is all parts of programmatic growth. More ships in maintenance, a full year of more ships being deployed, and aircraft maintenance and all that."
The cash crunch will hit several accounts especially hard, said the senior Navy official: personnel, shipbuilding and other procurement. Among the effects, he said, are:
■ Yearlong support and maintenance contracts for base operations can't be signed. "Hundreds of contracts have been broken into short installments."
■ Personnel travel has been cut by 25 percent.
■ Hiring freezes have been put in place in the Marine Corps and Navy.
■ Security clearance investigations have been curtailed.
■ Permanent-change-of-station orders are being slowed.
Other effects of prolonging the CR, the Navy source said, would be:
■ Cancellation of 29 surface ship overhauls.
■ Deferred maintenance on aircraft, aircraft engines and equipment.
■ Deferred certification of weapons.
■ Cuts in training and exercises, ship and aircraft operations, and combat support and combat service support.
Navy aviation accounts aren't severely affected by the spending limitations, as the service asked for about $1 billion less for aircraft in 2011 than in 2010. The only problem area might be the purchase of E-2D Advanced Hawkeye airborne control aircraft, but that isn't scheduled to happen until the summer.
The shipbuilding accounts, however, could take a hard hit.
One of the chief problems with managing shortfalls in the shipbuilding accounts, Mulloy said, is that Congress appropriates monies for specific ship programs rather than for shipbuilding as a whole. That prevents the service from shifting money between shipbuilding programs. "I'm about $6 billion out of whack in ship construction," Mulloy said.
For 2011, the service wants to spend money on a new aircraft carrier, a second Virginia-class submarine, a new destroyer and the upcoming refueling overhaul of the aircraft carrier Abraham Lincoln.
About $1.7 billion is available for a new amphibious ship - the Navy received that much for a 2010 ship - but the service doesn't need one in 2011. But without the specific authority to move money between ship accounts, the Navy's hands are tied.
"I have dollars in the wrong place," Mulloy said.
This was to have been the first year since 1989 that the Navy hoped to order two submarines. A contract to start work on one was awarded in January to General Dynamics, but no money is available for the second sub. GD agreed, however, to hold the price for the second ship until March 21, so if the money comes by then, the Navy can still take advantage of the price benefits of ordering two at a time.
But the impacts on ship maintenance won't be cured that fast if the CR continues, as the fleet looks for overhauls that can be put off. None have been canceled so far.
But if enough shipyards don't get that maintenance work and similar work on 70 aircraft and 290 aircraft engines is deferred, up to 1,300 private sector jobs might be lost, the Navy source said.
"This is a nightmare," said the senior Navy official. "It has to be fixed."

South Korea To Deploy Guided Imaging Rockets On Border Islands

SEOUL - South Korea plans to eventually deploy precision-guided rockets jointly developed with the United States on islands near the disputed western sea border with North Korea, the Joint Chiefs of Staff (JCS) said Feb. 4.

A U.S. Navy AH-1W attack helicopter launches a Low-Cost Guided Imaging Rocket during a May 2010 test at the Point Mugu sea range. An official said Feb, 4 that South Korea will soon deploy the rockets near its disputed sea border with North Korea. (U.S. Navy)

The deployment of the Low-Cost Guided Imaging Rocket (LOGIR) is aimed at thwarting a possible infiltration by North Korean combat hovercraft in the western waters of the Korean Peninsula, a JCS spokesman said.

"Recent intelligence indicates that North Korea has forward-deployed its high-speed hovercraft to a naval base near the Northern Limit Line (NLL)," the spokesman said. "If that's true, there is a limit for us to responding to it only with coastal artillery guns. So we're considering the deployment of the 70mm guided rocket to the border islands."
Previously, the local Chosun Ilbo newspaper reported that South Korean and U.S. intelligence authorities have detected construction work being done for a base in the Koampo area in Hwanghae province, just 50 to 60 kilometers from South Korea's Baengnyeong Island, one of the five islands near the NLL. The base is presumed to be able to accommodate up to 70 hovercraft, and each of the air-cushion vehicles can carry a platoon and travel up to 90 kilometers per hour across water and mud flats, according to the report.
North Korea has rejected recognizing the NLL, drawn up by the U.S.-led United Nations Command at the end of the 1950-53 Korean War, making occasional provocations near the border.
In March 2010, South Korea said its patrol ship Cheonan was torpedoed by a North Korean submarine near the border. Forty-six sailors were killed. The North also fired about 170 shells from its coastal artillery pieces and multiple rocket launchers in November onto Yeonpyeong Island, killing four people, including two South Korean Marines.
Since then, South Korea has vowed to fortify the islands by deploying more troops and high-tech weapons, such as the Israeli GPS-guided Spike missile and the Swedish ARTHUR artillery-finding radar.
The 60-billion-won LOGIR project was signed by the U.S. Naval Air Warfare Center and South Korea's Agency for Defense Development (ADD) in 2007.
The joint project aims to equip the 2.75 inch (70mm) unguided air-to-air or air-to-ground rocket, or Hydra 70, with a precision-guidance system, an infrared-ray-image sensor with a rocket motor and wings.
The first test-launch of the rocket system was successfully made in June.
The weapon is schedule to begin service by 2014, and the U.S. Navy is expected to buy about 30,000 LOGIRs, according to the ADD.
Meanwhile, as part of efforts to boost its defenses against North Korea's possible artillery attacks on the border islands, the South Korean military has ordered more ARTHUR weapons locating systems from Swedish defense group Saab under a contract worth nearly $69 million, according to Seoul's Defense Acquisition Program Administration and the supplier.
The new batch of ARTHURs will be manufactured by LIG Nex1, an electronic weapons maker in South Korea, with technical assistance from Saab.
The South Korean Army first ordered six ARTHURs in 2007.
"We are delighted to have received this important additional order from South Korea that further proves our customer's confidence in the capabilities of our weapon locating system, Arthur," said Micael Johansson, senior vice president and head of Saab's Electronic Defense Systems business.
The ARTHUR is a stand-alone, C-band, medium-range weapon-locating system that detects and locates enemy fire using a passive phased-array antenna technology for optimized battlefield performance.