THE HIMALAYAN TALK: PALASH BISWAS TALKS AGAINST CASTEIST HEGEMONY IN SOUTH ASIA

THE HIMALAYAN TALK: PALASH BISWAS TALKS AGAINST CASTEIST HEGEMONY IN SOUTH ASIA INDIA AGAINST ITS OWN INDIGENOUS PEOPLES

PalahBiswas On Unique Identity No1.mpg

Thursday, July 8, 2010

Tata Advanced System (TASL) in joint venture with Lockheed

Tata Advanced System (TASL) in joint venture with Lockheed

Govt for 74 pc FDI in defence to overcome obsolescence



Troubled Galaxy Destroyed Dreams - 515

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.com/

Govt for 74 pc FDI in defence to overcome obsolescence!100% foreign direct investment in defence is bizzare says the defence minstry!



The defence and aerospace arm of Indian conglomerate Tata Group has forged a joint venture with Lockheed Martin Corp (LMT.N) to make defence equipment and aircraft parts, the Economic Times reported on Thursday.Unlisted Tata Advanced Systems has sought the Indian government's approval for the venture in which Lockheed will have a 26 percent stake, while the remaining will be held by the Indian partner, the newspaper said.
Citing the proposal submitted by Tata to the government, it said Lockheed would invest 428 million rupees ($9 million) and Tata would put in 1.22 billion rupees.

ndia has said it will go for calibrated FDI liberalisation in sectors like defence and retail amidst the US demand for opening different segments for foreign investors.
He said that his government's initiatives like simplification and consolidation of the FDI policy would go a long way in improving business environment in India.
FDI is not allowed in multi-brand retail, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also in single-brand retail,
At present 26 per cent FDI is allowed in defence sector.

Sharma also met the US Trade Representative Ron Kirk and the two leaders agreed to enhance opportunities for bilateral trade and investment to create jobs in both the countries.

"Kirk urged India to address longstanding impediments such as investment caps, agricultural market access barriers, high tariffs, intellectual property rights and the need for continuing regulatory streamlining and transparency," the USTR spokesman Matthew Lawrence said in a statement.

Sharma was leading an official and industry delegation for the second meeting of the Forum co-chaired by Tata Group Chairman Ratan Tata and Honeywell Inc CEO Dave Cote.

The meeting was also attended by Finance Minister Pranab Mukherjee and Deputy Chairman of Planning Commission of India Montek Singh Ahluwalia.

The US official delegation included Secretary of State Hillary Clinton, Treasury Secretary Timothy Geithner, Commerce Secretary Gary Locke, US Trade Representative Ambassador Ron Kirk and Director of National Economic Council Larry Summers.

Sharma also welcomed the CEO Forum initiative on the launching of a $1 billion venture capital/private equity fund for clean energy technology development projects.

He also lauded the initiative of the Forum to establish a joint Indo-US Drug Discovery Fund and said the move would enhance the research and development efforts.

Sharma and Kirk also reviewed the implementation of the India- US Trade Policy Forum Framework for Cooperation on Trade and Investment singed in March 2010.


Commerce and Industry Minister Anand Sharma, who participated in the Indo-US CEOs Forum yesterday, said: "(In) defence and retail trade. We favour calibrated (foreign investment) liberalisation on account of domestic sensitivities."


With its weaponry facing rapid obsoletion, the government today proposed to raise FDI in defence production to 74 per cent, saying it would help ensure technology transfer and funds to effectively replace imports, estimated at over $8 bn.The commerce ministry, in a note sent to the cabinet secretariat, has suggested that global defence firms be permitted to set up manufacturing units in India with 100% FDI. As of now, India allows a maximum of 26% FDI in defence sector.

"There need not be any commitment on procurement and these enterprises would have to participate in the RFP [request for proposal] to qualify for financial bidding. In case of such firms, we should permit 100% FDI under FIPB/CCEA approval," the note says.
According to the commerce ministry, the move would reduce the role of illegal arms agents.

"For future RFPs, the country could impose a condition that the successful bidder set up system integration in India. The successful bidder should be allowed to bring equity through FDI," the note says.
"There can be concerns about passing of equipment or designs to enemy countries. This possibility exists even in case of imported equipment. In case of indigenous equipment, we can control production better," the note says.

Defence ministry officials said such a move would not be accepted. A senior private sector official said the proposal has no "validity" without MoD approval.


Mooting a discussion for raising FDI from 26 per cent in defence production to the same level as telecom sector, the Industry Ministry also sought to allay security concerns and impact on domestic players, saying effective checks could be put to tackle any "suspect" company.

Leading industry chamber CII, which had earlier asked the government to limit FDI to 49 per cent only, declined comments while no reaction could be obtained from FICCI.

Another industry chamber Assocham said it is a strategic and sensitive sector and opening up FDI from 26 per cent to 74 per cent straightaway "will not be a prudent step".

Increasing FDI cap from 26 per cent to 49 per cent as advocated by some industry associations "will not really help us in getting the best technology partners to invest in India... (by this) we may be accused by posterity of doing too little and too late," the discussion paper said.

"The established players in the defence industry should be encouraged to set up manufacturing facilities... in India with FDI up to 74 per cent," it added.

Commerce and Industry Minister Anand Sharma has said that 74 per cent FDI in defence production, flagged in the concept paper of his ministry, cannot be taken as its "view", because the issue is open for national debate.


"Let me (make it) clear that it is not a DIPP (Department of Industrial Policy and Promotion) view. It is a discussion paper," Sharma said.


The DIPP, under his charge, had said in the discussion paper on May 17 that for the country to have state-of-the-art technology, "we have to permit anything above 50 per cent, if not 100 per cent." It had even said that 100 per cent FDI would be desirable.


The minister said that the decision on hiking foreign direct investment in the defence sector would be taken "only after taking on board the views of the defence establishment."


Under the present policy, 26 per cent FDI is allowed in defence. Industry chambers like CII and Assocham have suggested that the cap be revised to 49 per cent.


The defence establishment has so far been opposing any hike beyond the 26 per cent threshold. However, it is willing for case-to-case permission up to 49 per cent, as in the case of the Indo-Russia joint venture for BrahMos missile production.


Sharma said the discussion paper has been floated to have a "nationwide debate, where all the stakeholders, industry, civil society or defence establishments give their views."


However, in line with the DIPP paper, the minister underscored the need for India to become a global leader in technology development and innovation.


"We are very clear that we need to be more innovative and forward-looking when it comes to defence production," he said.




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A TEJAS FOR NAVY

The Indian Navy's LCA (Pic: courtesy mail today)

INDIAN NAVY TEJAS (LCA) UNVEILED - An IDC Report (New)

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(Note: Articles removed from this section may be found in our 'What's Hot' page under the title 'Previous Stories'.)

Disclaimer      Copyright

 
http://www.indiadefence.com/
State-owned oil firms may opt to revise petrol prices every fortnight to reflect changes in the global oil market in the free pricing regime that kicks in from next week.As The Tata group's defence and aerospace arm, Tata Advanced System (TASL), has forged a joint venture with US-based defence major Lockheed Martin Corporation, makers of the legendary F-16 fighter jet, for manufacture of defence equipment and aircraft parts.

However,

State-run Indian Oil Corp (IOC), the country's biggest oil retailer, does not want fuel prices to be revised very often, its chairman B.M. Bansal said on Thursday.


Indian state-run refiners hope to work out rules for setting market-driven prices of fuel across the country by mid-July, two sources directly involved in the process said on Wednesday.


Last month, India granted autonomy to oil firms to fix retail prices of gasoline and raised prices of diesel, kerosene, and cooking gas. It also said that diesel prices would eventually be market-determined but gave no time frame. IOC owns 10 plants in India with a combined capacity of 1.2 million barrels per day.





Petrol prices were freed from government control last month resulting in a Rs 3.50 per litre hike in rates in Delhi, but modalities of subsequent retail price adjustments were left to the industry to deliberate and decide.

Sources said Indian Oil, Bharat Petroleum and Hindustan Petroleum today began consultations on modalities like the frequency or interval at which prices will be revised and if the PSUs should have uniform rate that would change on same date.

Private firms Reliance Industries, Essar Oil and Royal Dutch/Shell too are being consulted in the exercise.

Sources said most retailers favour fortnightly revisions in retail rates to reflect changes in cost of raw material (crude oil), but the nation's largest oil firm IOC was at variance, wanting rates not to be revised too often.

Those in favour of a 15-day cycle for price adjustment argue that oil firms already have a mechanism of calculating the desired fuel prices on 1st and 16th of every month. Also, rates of aviation turbine fuel (ATF), which was freed from Government control in 2002, change with cost every fortnight.

But IOC does not want frequent price changes, saying a fixed date for revision may lead to hoarding at pump end.

The BJP-led NDA Government had in 2002 decontrolled petrol and diesel prices and rates from April 1, 2002, were revised every fortnight for almost 21 months. The practice was stopped a few months before the May General Election in 2004, and controls were back when the when UPA came to power.

Sources said modalities are likely to be finalised by next week and pump rates would be revised accordingly.

An Empowered Group of Minister headed by Finance Minister Pranab Mukherjee had on June 25 decided to free petrol and diesel prices from government control. While petrol was being decontrolled with immediate effect, the implementation of the same in diesel was put on hold for the time being.

Freeing of petrol price resulted in a Rs 3.50 per litre hike in petrol price while diesel rates were raised by an ad-hoc Rs 2 per litre instead of Rs 3.80 per litre increase required to align them with international market.

Also, domestic LPG prices were increased by Rs 35 per 14.2-kg cylinder and kerosene rates hiked by Rs 3 per litre to cut government's fuel subsidy.

We are entering into a security partnership with India: German envoy


The European Aeronautic Defence and Space (EADS) has initiated a deal with Indian Air Force (IAF) for providing 126 Multi Role Combat Aircraft (MRCA) worth over 10 billion dollars.
Briefing media persons here on Tuesday, German Ambassador to India Thomas Matussek said this deal not only heralds Germany entering into a security partnership with India on commercial note, but was also significant from a joint security exercise point of view.
"We have decided that we wanted to enter into a real security partnership with India. It's not a by-a-client relationship but security partners with four native countries with the cutting edge technology for the next 20-30 years to come. So, it goes way beyond a commercial relationship," he added.
Bernhard Gerwert, CEO of Military Air Systems, EADS (Defense and Security), said they had a successful meeting with the IAF and he is hopeful of encouraging response from the Indian Ministry of Defence within a few weeks.
"We have official request from the Indian Air Force, from the Indian MoD (Ministry of Defence), in particular, for so-called multi-role capabilities. Eurofighter is a true multi role fighter aircraft. This means that the pilot can switch between air-to-air and air-to-ground combat roles at the push of a button, in-flight without having to return to the base. As part of our response to the RFP, we have submitted a comprehensive ToT and offset proposal which would act as a catalyst in the development of an independent, world class defense and aerospace industry in India," Gerwert added.
If the IAF approves and the Defence Ministry decides to buy this highly modern and futuristic aircraft, then it would be the fifth production base for the Euro fighter along with Germany, Spain, Italy and Britain. (

Tata Advanced System (TASL) in joint venture with Lockheed

8 Jul 2010, 0250 hrs IST,Anindya Upadhyay,ET Bureau
NEW DELHI: The Tata group's defence and aerospace arm, Tata Advanced System (TASL), has forged a joint venture with US-based defence major Lockheed Martin Corporation, makers of the legendary F-16 fighter jet, for manufacture of defence equipment and aircraft parts.


TASL, a wholly-owned subsidiary of Tata Sons, has sought the government's approval for the joint venture in which Lockheed will have a 26% stake through a subsidiary while the Indian partner will hold the rest.

The new company, Tata Aerostructures Ltd, will design, develop and manufacture aerospace and aerostructure products.

The proposal submitted by TASL to the Foreign Investment Promotion Board, or FIPB, says Lockheed Martin's wholly-owned subsidiary, Lockheed Martin Aeroframe Corporation (LMAC), will invest Rs 42.82 crore into the proposed venture for the 26% stake.

The Indian partner will bring in Rs 121.87 crore in the venture that is also looking to export advanced technology systems to other countries.

There is an export potential of $200 million (Rs 920 crore) over a period of five years, the Tata group said in its proposal.

Currently, foreign direct investment in defence sector is capped at 26% requiring prior government approval.

TASL's proposal comes in the backdrop of the government mulling an increase in the FDI limit for the defence sector.

The department of industrial policy & promotion (Dipp), which formulates FDI policy in the country, has recently floated a discussion paper that suggests an increase in FDI in defence to 74% sans any commitment on local procurement.

Indian industry, however, has lobbied for a more conservative increase in overseas investment. Industry bodies CII and Ficci had suggested FDI up to 49%.

http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/Tata-Advanced-System-TASL-in-joint-venture-with-Lockheed/articleshow/6140910.cms

RIL ready for methane mission
                                                                                                                                                    
OUR SPECIAL CORRESPONDENT
                                                
                                                           

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Mumbai, July 7: After making a play for shale gas in the US, Reliance Industries Ltd (RIL) has turned homewards to tap into another unconventional source of energy — gas trapped in coal bed seams.
                                                                                                                                                                                                                                                                                                   
The company has floated a tender inviting expressions of interest from companies that supply equipment to develop coal bed methane blocks (CBM). Reliance Industries has five coal bed methane blocks in the states of Madhya Pradesh, Rajasthan and Chhattisgarh. The company hopes to extract gas from these blocks and expects to drill 100 wells in the next five years to a depth of up to 1,700 metres.
                                                                                                                                                                                                                                                                                                   
RIL is also inviting expressions of interest for the development of onshore exploration blocks that were awarded by the government under oil block auctions Nelp II and Nelp V. The company has issued the tender on behalf of itself and its partners for these blocks that include Oil and Natural Gas Corporation, Okland Offshore Holdings, Hardy Exploration and Production (India) Inc and Tullow India Operations Ltd. The deadline for submission of expressions of interest is July 21.
                                                                                                                                                                                                                                                                                                   
RIL has already achieved commercial production of 60 million standard cubic metres per day (mmscmd) in the deep sea KG-D6 basin and now wants to tap unconventional sources of energy where it might not have to splash out huge sums of money to hunt for gas.
                                                                                                                                                                                                                                                                                                   
So far it has entered in two joint ventures in the US — with Atlas Energy and Pioneer — to develop shale gas. Sources say the company is engaged in talks with another shale gas player in the United States. If that deal materialises, it will be RIL's third joint venture for shale gas. RIL declined to comment on this potential venture.
                                                                                                                                                                                                                                                                                                   
The fact that RIL intends to develop gas (methane) trapped in the surface of coal is significant as there has been very little extraction from these CBM blocks which were awarded in auctions held in 2001 and 2003.
                                                                                                                                                                                                                                                                                                   
While replying to questions on CBM projects, petroleum minister Murli Deora had told the Lok Sabha in late April that commercial production of CBM had started in July 2007 at Raniganj (Bengal) where S.K. Modi-owned Great Eastern Energy Corporation Ltd has been exploring the gas block. In 2009-10, 38.40 million standard cubic metre of gas was produced from Raniganj, twice that produced in the previous year. Great Eastern Energy is listed on the London Stock Exchange Alternative Investments Market.
                                                                                                                                                                                                                                                                                                   
Deora had said in April that based on the current estimates and status of planned field development, CBM production in the country was likely to touch 7.41 million standard cubic metre per day in 2012-13. The CBM policy was approved in 1997 to tap this unconventional source of energy.
                                                                                                                                                                                                                                                                                                   
Twenty-three CBM blocks have been awarded in the first three rounds of auction. The fourth round was launched recently with an offer of 10 blocks covering nearly 5,000 sq kms.
                                                                                                                                                                                                                                                                                                   
In all, 26 blocks have been awarded — two of them under nomination basis to ONGC — and the estimated resources in these blocks amount to 1,480 billion cubic metres.
                                                                                                                                                                                                                                                                                                   
In March, the government was reportedly concerned over the slow pace of development of these coal bed methane blocks. It had mulled the idea of taking back the undeveloped CBM blocks from investors and hiving them off as coal mining projects.
                                                                                                                                                                                                                                                                                                   
The coal ministry also debated on simultaneous exploitation of coal and CBM in a single block. It even proposed vertical separation of land tracts for CBM and coal mining by different developers.
                                                                                                                                                         
*


http://www.telegraphindia.com/1100708/jsp/business/story_12659016.jsp

RBI to review inflation, GDP outlook on July 27: Dy governor

Reserve Bank deputy governor K C Chakraborty said here on Thursday that the apex bank will offer its assessment of inflationary trends and economic growth forecast in the forthcoming monetary policy review.

"On July 27, the Governor's policy will say what is the assessment of the Reserve Bank (on inflationary trends and economic growth forecast). Wait for sometime," Chakraborty told reporters here when asked for his comments on the higher GDP forecast by the International Monetary Fund.

The International Monetary Fund today upped its growth projection for the domestic economy to 9.5 percent this year from its April forecast of 8.8 percent, stating that favourable financial conditions and robust corporate profits will accelerate economic expansion.

Chakraborty and another deputy governor Usha Thorat were in the city to attend the RBI board meeting, which was chaired by Governor D Subbarao.

05 January 2010

    Defence committee recommends privatisation of DPSUs; FDI limit may be raised upto 49%

   

05 Jan 2010 8ak: DNA reports that a high powered committee constituted to look into the defence spending has recommended numerous reforms such as increasing the foreign direct investment (FDI) limit in the defence sector to 49% and divestment of defence public sector units (DPSUs).

The defence expenditure review committee (DERC) set up by the Congress-led United Progressive Alliance government is headed by former secretary (defence finance) V.K. Misra and has former senior officers of all three arms of the armed forces. The committee recommends:-

  1. Increasing the FDI limit in defence sector to 49% from 26% and also called for a case by case waiver up to 74% and 100%.
  2. That the government to encourage the private sector to take over foreign defence firms and establish a self- governing wealth fund to facilitate this activity.
  3. The committee also recommends on increasing the financial power of the defence minister up to Rs 500 crore.
  4. The committee has suggested in initiating some structural changes within the Ministry of Defence to improve efficiency and reduce red-tape.
  5. The committee also recommends time-bound disinvestment process of PSUs for ensuring accountability, transparency, and efficiency.
  6. The government should immediately adopt the Rama Rao committee report, which looked into reforms needed in DRDO and indigenous projects must be closely examined every 18 months.

Advocating the cause of private sector participation in defence DERC says that a platform had been created where the defence PSUs should be prepared to compete strongly with the private sector in areas where

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