The Chief of Naval Staff, Admiral Nirmal Verma, PVSM, AVSM, ADC, released a Study on Building India’s Navy: Force Requirements and Indigenous Capability during the inaugural session of International Seminar and Exhibition on Naval Armaments, NAVARMS 2010, organised by Confederation of Indian Industry (CII) at Manekshaw Centre on 24 November 2010.
The study identifies the gaps between the capabilities of the Indian Naval Industry and Indian Navy’s requirements. The study also suggests how these gaps can be bridged. Contrary to the common belief that Indian industry is incapable of delivering sophisticated systems and equipments, the study has found that the Indian industry does have the capability, competency and capacity to deliver high technology systems, products and modules provided some definitively encouraging measures are undertaken to promote the domestic naval industrial complex.
Key Findings
· India is destined to take its place in the emerging global world order as a regional power and a global interlocutor. Therefore, enhancing the national capacity for new technology ship construction and aircrafts/helicopters is must.
· In 1964, Indian Navy was authorised a force level of 140 ships and submarine. But, even after 4 decades naval force level hovers at best around the 130 ships and submarine mark with about 40 % of the force level equipped with vintage weapons, sensors and communications.
· Naval Defence Industry is dominated by Public Sector Industries. The private sector is now clearly willing and able to establish equivalent or better capabilities at their cost and this must be encouraged.
· There is a demand of more than 7 ships every year for the Navy and another 5 ships per year for the Coast Guard. Public Sector Shipyards, going by their previous record, alone cannot deliver 12 ships per year.
· Equal opportunity for the private sector is a must to achieve the force levels that the Navy seeks to achieve.
· Single vendor bidding and nomination route for awarding Naval projects to Defence Public Sector Units does not lead to real pric discovery and should be done away with.
· Indian Private Sector is poised to take up big naval projects and contribute its share to achieve broader maritime objectives of effective sea power and national goals of peace, prosperity and security
· Issuing collective requirement of the defence forces, for instance total number of radars required by all the services, would present a clear and coherent picture to the industry of the addressable opportunity and provide stimulus to private industry to invest in the Greenfield areas.
· The Buy and Make (Indian) categorization is the best vehicle to promote indigenous naval industry, manufacture and global sourcing but requires final integration in India. MoD must declare its intent that all future acquisitions would preferably be from the Buy and Make (Indian) Route.
· The Indian Navy and the DGNAI also must come forward and share their requirements with Indian industry which CII can facilitate so as to make all stakeholders be on the same page to prepare a capture plan that would truly transform Indian naval industry.