RUSSIA - INDIA Military Contracts

Federal Service for Military-Technical Cooperation Deputy Director said that Russia and India have agreed a draft contract for the joint development of the fifth-generation fighter aircraft, the Russian side is ready for its signing.

BENGALURU (India) (Sputnik) – Russia and India have agreed a draft contract for the joint development of the fifth-generation fighter aircraft (FGFA), the Russian side is ready for its signing, Federal Service for Military-Technical Cooperation (FSMTC) Deputy Director Vladimir Drozhzhov told Sputnik Tuesday.

"Russian and Indian experts agreed and initialed the draft contract on the design work on the creation of prospective multifunctional fighter. The Russian side is ready to sign the contract. We expect the decision of our Indian partners on this issue, " Drozhzhov said.

He noted that the volume of investments in the project was the subject of negotiations.

https://sputniknews.com/world/201702141050663783-russia-india-fighter-jet/

India's plans to buy strategic Russian weapons are in jeopardy  


India’s plans to procure strategic defence equipment from Russia including contracts of $5.5 billion for shipbuilding appear to be in jeopardy because Russian firms are unable to furnish the requisite guarantees from Indian banks owing to sanctions imposed by the US.

This has raised concerns in India over procurement of the S-400 missile shield as well, which is sorely needed to seal the country’s airspace with Pakistan, said people familiar with the matter.

Russia had in October last year signed an inter-governmental agreement with India for the sale of four Project 1135.6 class stealth frigates, two of which are to be made in India. The deal also involves creating shipbuilding infrastructure in India. Besides, Russia will be a key contender in an upcoming tender for a new class of conventional submarines under the P75I project of the Indian Navy. Both these projects seem to have hit a roadblock due to the US-imposed sanctions.

As per Indian rules, all foreign vendors of defence equipment need to furnish guarantees from designated Indian banks before bidding for any project.

However, with the US-imposed Specially Designated Nationals (SDN) sanctions on Russia’s United Shipbuilding Corporation, which were extended last year to include all entities attached to the company, Indian banks are not in a position to grant guarantees for the contracts.

“No Indian bank can deal with any entity on the SDN list as this will get them into major trouble with the US. As international transactions involve trade in dollars, no bank can afford to be noncompliant with the sanctions list,” an official told ET on condition of anonymity.

The matter can be resolved only if India amends its procurement rules to give Russian entities special exemption from the clause mandating bank guarantees, the people cited earlier said.

The last deal India signed with a Russian shipyard was to overhaul its Kilo class submarines at the Zvezdochka shipyard.

Two Indian submarines are already undergoing the life extension programme. However, Zvezdochka too was named in the extended list of sanctions by the US late last year.

One of India’s biggest deals with Russia till date, for the S-400 missile shield, too faces uncertainty due to the sanctions. Almaz-Antey, which manufacturers the cutting-edge missile shield, is also on the SDN list, making it impossible for Indian banks and even private sector companies that have other overseas interests to deal with it.

“India may need to change its rules to allow the Russian companies to furnish guarantees either directly from Russian banks or have some other arrangements if these projects have to go through,” the official said.

Asenior team from Russia is expected to discuss the matter with the Indian side later this month. Russia has traditionally been India’s largest military supplier, accounting for most major purchases by the air force, army and navy.

This position has, however, been strongly contested, with the US inking large deals in the past five years that have taken it to the top position.

India’s plans for military acquisitions in the future envisage mostly joint development and production of equipment domestically with assistance from foreign vendors.

Good opportunity to see where India stands. Is it a Russian ally, or a US stooge?

Svyatoslavich wrote:Good opportunity to see where India stands. Is it a Russian ally, or a US stooge?

Cant they just use a Rupee-Rouble transaction and not involve the U.S. Dollar?

Svyatoslavich wrote:Good opportunity to see where India stands. Is it a Russian ally, or a US stooge?

India is a nation of backstabbing whores in reality. They are so corrupt they can't remember something 20 years ago of Russia sticking its neck out for India.

Don't be surprised if the deals don't go through. Expect Russia to retaliate against India in form of cutting deals with India's enemies and pushing countries away from India (make deals with Sri Lanka and Bangladesh). And then watch India squirm as they know they are screwed with half of their equipment and will have to buy US and French which has massive strings attached.

Though this is a wake-up call for Russia to get their business in order and make their banks more aggressive internationally. Maybe even lift the stupid sanctions on Iran. And forget about India's crying when dealing with Pakistan and others.

Svyatoslavich wrote:Good opportunity to see where India stands. Is it a Russian ally, or a US stooge?

I have read that the problems mentioned in the article is the precise reason why India is changing its legislation. We will know pretty soon.

In fact, only three of the eight Tu-142M aircraft inducted were airworthy when retired.

http://www.aviationanalysis.net/2017/03/indian-navy-retires-tu-142m-maritime-patrol-aircraft.html?m=0

Three of eight retired Tu-142Ms to flown to naval establishments as historical static displays. Decision to be taken on the others.

https://twitter.com/livefist/status/846404080771715074
I won't be surprised if Russia gets some of them back and some museum(s) in the USA acquires the type as well! IL-38SD MPA will probably stay, while the older IL-38s upgraded or retired. Unless a decision is made to order more, they'll get 12 P-8s from USA total:
http://www.janes.com/article/69129/indian-navy-retires-fleet-of-tu-142m-maritime- patrol-aircraft
Indian Navy’s naked underbelly that no amount of nostalgia can cover up http://www.dailyo.in/politics/indian-navy-submarines-asw-helicopters-warfare/story/1/16446.html

http://economictimes.indiatimes.com...lion-to-be-finalised/articleshow/59230103.cms

Defence minister Arun Jaitley will be leading a high-powered military delegation to Novosibirsk and Moscow this week, at a time when Russia is desperate to wrest back from the US its long-standing numero uno position in the lucrative Indian arms market.

Jaitley is slated to hold wide-ranging discussions with the Russian deputy PM Dmitry Rogozin and defence minister General Sergey Shoygu during the first India-Russia science technology commission and the 17th inter-governmental commission on military-technical cooperation during his visit from June 20 to 23. It comes just before PM Narendra Modi travels to the US on June 25-26 for his first meeting with US prez Donald Trump.

Though India has increasingly turned to the US for mega arms deals in recent years, Russia can take solace from the fact that defence projects worth around $10.5 billion are now on the verge of being finalised with it. These range from the acquisition of five S-400 Triumf advanced air defence missile systems, four Grigorivichclass frigates and 200 Kamov-226T light helicopters as well as the lease of a second nuclear-powered submarine after INS Chakra.




But India is yet to be convinced about the economic and technical viability of going in for the multi-billion dollar joint development and production of a fifth-generation fighter aircraft (FGFA) called the Sukhoi T-50 or PAK-FA with Russia.

As reported by TOI earlier, India will ink the long pending final R&D contract for the FGFA -it will require an estimated $25 billion to induct 127 such single-seat jets -only if there is extensive transfer of technology and “benefits“ for the indigenous plan develop its own advanced medium combat air craft (AMCA). “The cost-benefit analysis is still under way ,“ said a source.

But the news is much better on other fronts. With the joint venture on the $1 billion project to manufacture 200 Russian Kamov Ka-226T light utility helicopters in India finally firming up, sources said the RFP (request for proposal) for the project will be issued soon. “The JV will then submit its techno-commercial proposal,“ said a source.

Similarly , negotiations on the $5.5 billion acquisition of five S-400 Triumf systems, which can destroy hostile aircraft, stealth fighters, missiles and drones at ranges up to 400-km, are now in the final stages. “The deal should be finalized within this year. Three of the S-400 systems are meant for the west (read Pakistan) and two for the east (China) to plug gaps in our air defence coverage,“ said the source.

India, of course, is also on course to acquire the second nuclear-powered submarine on lease from Russia. Indian Navy had inducted the first Akula-II submarine, christened INS Chakra, on a 10-year lease from Russia in April 2012, under a secret $900 million deal inked way back in January 2004. Jaitley is being accompanied by defence secretary Sanjay Mitra, defence production secretary A K Gupta, DRDO chief S Christopher, BrahMos chief Sudhir Mishra as well as top military officials like Lt-Gen S K Patyal, Air Marshal R Nambiar and Vice Admiral G S Pabby , among others.

So we will soon know what's going to happen with FGFA

Well, it is June 23 and that would mean the conclusion of the trip.

Any news? Seems quiet.

miketheterrible wrote:Well, it is June 23 and that would mean the conclusion of the trip.

Any news? Seems quiet.

http://economictimes.indiatimes.com/news/defence/india-russia-finalise-deal-on-frigates-s-400-missile-system-kamov-helicopters/articleshow/59291809.cms


The more concrete step before signing of final deal has been taken , s 400 and fgfa in any case won't be signed before marchy 2018

Viktor wrote:

Svyatoslavich wrote:Good opportunity to see where India stands. Is it a Russian ally, or a US stooge?

I have read that the problems mentioned in the article is the precise reason why India is changing its legislation. We will know pretty soon.

New Delhi (Sputnik) — Under the arrangement, the Indian finance ministry has waived off banking guarantee clause for Russian firms which is mandatory for securing defense contracts in India. In place of the bank guarantee, the Indian government has accepted a sovereign guarantee from Russia.


https://sputniknews.com/military/201706021054252336-india-sanctions-projects-russia/

Pinto wrote:

Viktor wrote:

Svyatoslavich wrote:Good opportunity to see where India stands. Is it a Russian ally, or a US stooge?

I have read that the problems mentioned in the article is the precise reason why India is changing its legislation. We will know pretty soon.

New Delhi (Sputnik) — Under the arrangement, the Indian finance ministry has waived off banking guarantee clause for Russian firms which is mandatory for securing defense contracts in India. In place of the bank guarantee, the Indian government has accepted a sovereign guarantee from Russia.


https://sputniknews.com/military/201706021054252336-india-sanctions-projects-russia/

India Relaxes Clause to Get Russian Defence Deals Going

https://www.pressreader.com/india/economic-times/20170602/281569470688948

MOSCOW, June 26. /TASS/. A contract on supplies of Russia’s Project 11356 frigates to India may be inked in three or four weeks, President of the United Shipbuilding Corporation Alexei Rakhmanov said on Monday.

"We are in the final stage of discussion with our customer on the fate of the fourth and fifth warships. I think we will tell you about this in the coming three or four weeks," Rakhmanov said.

Director for International Cooperation and Regional Policy at Russia’s State Corporation Rostec Viktor Kladov said earlier that the planned contract for the delivery of Project 11356 frigates for the Indian Navy would be implemented under the "two plus two" formula: two frigates are to be built in Russia and delivered ready-for-use to India and the other two would be constructed by the Indian shipbuilding industry at one of the national shipyards.


More:
http://tass.com/defense/953293

Price negotiations are on for a ship that can be used for rescue operations on nuclear submarines as well

https://theprintbeta.in/2017/06/28/indian-navy-in-talks-to-get-underwater-rescue-ship-from-russian-shipyard-that-built-most-of-its-submarines/

St Petersburg: The Admiralty Shipyards in Russia has produced most of the submarines that are in the Indian Navy – from the Foxtrot class that has been retired, to the Kilos that still form the bulk of the fleet. The Russian shipyard is now in advanced talks with the Indian Navy for an underwater rescue vessel that can be the difference between life and death for the crew of a crippled submarine.

The top executive of the Admiralty shipyard told The Print that price negotiations are currently on with the Indian Navy for a new rescue vessel with the two sides having overcome all other technical issues. The Igor Belousov class rescue vessel will be designed for rescue operations on conventional and nuclear-powered submarines – a fleet that is set to grow exponentially over the next decade in the Indian Navy.

“There were some technical issues that we have discussed and overcome. Now we are discussing the pricing. We are hopeful that we will soon win the contract,” Alexander Buzakov, Director General of the Admiralty shipyard, said.

The Russian ship is designed to carry out rescue operations – providing air and supplies to a crippled submarine as well as operating vessels close to it – up to a depth of 1000 meters. Designed to operate in rough seas up to sea state 7, the Russian Navy has one such rescue ship operational and is likely to order four more for its fleet.

India has a dire need for a submarine rescue vessel and for years has operated without adequate rescue gear in case of an accident at sea. After two major accidents on-board submarines in the preceding years raised eyebrows, the Navy last year finally ordered two British-made submersibles that can be used for rescue operations. The James Fisher Defence submersibles can rescue 16 sailors at a time from a depth of 16 meters, but need a vessel to be operated from.

The Russian shipyard said that the concerns India had about housing the British submersible with the Igor Belousov class rescue ship have been resolved.

“The Indian side wanted to know if additional rescue equipment could be added to the ship. We have now confirmed that the British submersible vessel can be integrated,” Buzakov said.

The vessel is important for India given its plans to operate a fleet of at least 6 nuclear-powered attack submarines and an equal number of nuclear-armed submarines in the coming years. The lack of a rescue vessel has been sorely felt. During the extensive sea trials last year of the INS Arihant – India’s first nuclear missile-armed submarine – a Russian naval vessel had to be engaged as backup in case of any emergency.

(The correspondent is in Russia on the invitation of the state owned United Shipbuilding Corporation)

India at present has more than 150 Mi-17 V5 helicopters, the last of which were delivered in January 2016. Most of the Mi-8s have, however, been phased out while some of the Mi-17s are still flying.


India and Russia hope to conclude a contract to purchase an additional 48 Mi-17 V5 medium lift helicopters by the end of this year, an official in Moscow said.

Aleksandr Mikheev, CEO of Rosoboronexport, the state agency for exporting defence equipment from Russia, said price negotiations are to start by August.

“We are holding negotiations with a view to sign a contract for 48 Mi-17 V5 helicopters. In July-August, we are starting price and contract negotiations within the framework of the applicable Indian procedure and we hope that we will reach agreement before the end of this year,” Mikheev told this visiting IANS correspondent.

“Our Indian partners know the programme very well. They have more than 300 helicopters belonging to the Mi-8 and Mi-17 family,” he added.

India at present has more than 150 Mi-17 V5 helicopters, the last of which were delivered in January 2016. Most of the Mi-8s have, however, been phased out while some of the Mi-17s are still flying.

The Mi-17 V5 is based on the Mi-8 airframe and is one of the most advanced aircraft of the Mi-8/17 family.

The helicopters are equipped with night vision technology, all-weather radar, a new PKV-8 autopilot system and a KNEI-8 avionics suite.

The sturdy choppers have been the mainstay of the Indian Air Force in a number of humanitarian assistance and disaster relief operations.

The choppers were also deployed during the 2008 Mumbai terror attack when it enabled commandos of the National Security Guard to rapel down to the Chabad House in Colaba where a few of the attackers were holed up. They are also said to have been pressed into service during the surgical strikes carried out on Pakistani terror launch pads across the Line of Control in Jammu and Kashmir in September 2016.

The chopper’s TV3-117BM turboshaft engines are rated at 1,900 hp each, giving it a greater service and hovering ceiling, and have proved efficient in the tough mountain terrain of the Himalayas.

Mikheev added that India and Russia are also discussing the modernisation of the Sukhoi SU-30MKI fighters.

“During a period of 15 years, we have fulfilled all our obligations to the Indian party, the HAL. We have supplied about 200 aircraft under the licence agreement and are offering the new developments of our design bureaus,” Mikheev said.

“Moreover, the Indian Air Force has some requirements for improvement of performance and operational characteristics, mainly with regard to avionics and electronic warfare systems, as well as updates of weapon systems by both Indian and Russian companies,” he added.

Asked about the S-400 Triumf long range air defence missile system, a contract for which was signed during Russian President Vladimir Putin’s visit to India last year, Mikheev said negotiations were on.

“As of today, we are carrying out technical consultations with the Indian party. We have already shown our equipment in both the field-testing, range-practice conditions,” he said.

“Rosoboronexport is performing all the work aimed at signing of the contract as soon as possible, based on the feedback from the Indian party,” he said, adding: “I’d like to note that today the Indian party does not have any such systems as the S-400.”

The deal is estimated to be worth over $5-billion (over Rs 32,000 crore).

The missile system, which has been deployed in Syria, where Russia is targeting the Islamic State, can destroy incoming hostile aircraft, missiles and even drones at ranges of up to 400 km and will prove to be a game changer for India, experts said.

http://www.hindustantimes.com/india-news/india-russia-likely-to-ink-deal-for-more-mi-17-v5-choppers-this-year/story-GDX2IFC9FXTFqdxv9bbIRP.html

https://ria.ru/amp/defense_safety/20170817/1500538276.html