i’ve never been much of a RAPTOR fan but this pic just blew me away (attachment)…

Deal to see Indian defense spending soar

NEW DELHI – In the past few years, India has emerged as one of the world’s biggest importers of military armament. And the South Asian country is just gathering steam.

Indian defense officials, who generally prefer not to be identified, have said that the Indian Air Force (IAF) should float within two months a long-delayed global tender for 126 multi-role combat jets in a deal believed to be worth close to US$10 billion.

“There are certain procedural issues that need to be resolved

before we float a request for proposal [RFP] for the aircraft,” said an official. “This should happen in a month or two.”

There are also indications that the Defense Ministry could fast-track the process by issuing an RFQ (request for quotation) instead of an RFP for the fighter-jet contract.

India’s import of military hardware and software will reach $30 billion within the next five years, the Associated Chambers of Commerce and Industry (Assocham) said in a recent study, “Private Sector Participation in Defense”.

The big deals include the 126 fighter jets, a variety of helicopters and long-range maritime spy aircraft. In the past three years, India spent as much as $10.5 billion, making it the largest arms importer in the developing world.

Big purchases include Israeli Phalcon radars in 2004 for $1.1 billion, and six French Scorpene diesel attack submarines for $3.5 billion in 2005.

The study has also recommended outsourcing for many defense activities to the domestic private sector. “The target of achieving 70% self-reliance in defense production 10 years ago has fallen short of the target by 40 [percentage points], as only 30% of defense production has become self-reliant until now,” Assocham said.

Nations lobby for fighter-jet contract
The race for the IAF order is seen to be between the US F-16 and F/A-18 Super Hornet and Swedish, French and Russian fighter jets. Intensive lobbying is in progress.

Swedish Foreign Minister Carl Bildt recently visited India and met with Prime Minister Manmohan Singh, Defense Minister A K Antony and External Affairs Minister Pranab Mukherjee. An agreement was signed to deepen defense ties. Discussions centered on a new contract for Swedish SWS Bofors 155-millimeter guns for the army and the JAS 39 Gripen fighter aircraft by Saab Avionics for the IAF.

Sweden, being a member of the 45-Nation Nuclear Suppliers Group, has adopted a flexible approach toward the India-US nuclear deal.

It is well known that Washington, with President George W Bush at the forefront of such efforts, is keen to leverage the deal that will allow India to access international nuclear-power technology, to enable the US to garner several defense contracts with India. Bush recently called Manmohan to assure him about the nuclear pact.

Communication at the highest level is an indication of the comfort level that the two countries now enjoy. It also makes it that much more difficult for any other nation in a competing business position.

The US is said to be looking at defense deals worth $30 billion over the next few years. In military aviation, the Indian armed forces are looking to seal deals for more than 500 aircraft, helicopters and unmanned aerial vehicles.

Among nations involved in arms deals with India, factors such as state-of-the-art technology, geostrategy and slush funds come into play. In a clear indication of behind-the-scenes dealings, an Austrian firm recently told the Indian Supreme Court that Russian armaments manufacturer Kazan Helicopters paid Rs290 million (more than $7 million) in kickbacks to swing a Rs1.8 billion deal to supply 16 Mi-17 helicopters.

Israel has overtaken France, the United Kingdom and other countries to become the second-largest defense supplier to India, with the value of its military arsenal close to $1 billion each year for the past three years.

Russia has managed to retain its position as India’s biggest defense partner, notching more than $1.5 billion a year because of the deeply entrenched relations between the two countries. But the US, the latest to join the fray, could well make things difficult for the established players.

India and the US inked a 10-year defense agreement in June 2005, “the New Framework for the US-India Defense Relationship”, signed by then defense chiefs Donald Rumsfeld and Pranab Mukherjee.

However, it could be at least five years before jet-fighter price negotiations are concluded and another five years before the first of the new aircraft start arriving, experts say.

The IAF is also procuring 40 Sukhoi multi-role jets from Russia as a stopgap measure.

The problem areas
The inability of the private sector to meet expectations is a cause for worry, according to Assocham. As far back as 2001, 26% foreign direct investment (FDI) was allowed in the defense sector.

The government has ruled out allowing multinational armament companies to go in for indirect offsets (investments in non-defense sectors such as the high-profit information technology industry) in defense deals worth more than Rs3 billion ($73 million). The bulk of the offsets business will be in the aerospace sector.

“Any company vying for supplying defense weapons to India will have to invest 30% of the order in Indian public- and private-sector companies,” Indian Defense Secretary Shekhar Dutt said last week.

India signed its first offset contract of more than $5 million under the new rules in March last year when it purchased Israeli Elta medium-powered ground radars. The company placed orders from private Indian companies Larsen and Toubro and Astra Microwave of Hyderabad.

To take advantage of offsets in aerospace, Bharat Forge Ltd, already a global player in the auto-components sector, is setting up a Rs3.5 billion Center for Advanced Manufacturing in Pune, Maharashtra state. The plant is scheduled to commence production next April.

However, despite the broad picture provided by the Assocham study, defense procurement continues to be mired in delays.

The Parliamentary Standing Committee on Defense recently said that the formalities of several deals should be completed by September. These include 197 helicopters for an estimated $700 million for which US firms Textron and Eurocopter are bidding. Though the initial formalities have been completed, the deal has yet to be cleared.

The decision to procure 400 upgraded towed 155mm guns at an estimated $3 billion is on hold despite an unprecedented four performance trials.

“Failure to complete major armament deals is leading to a cut in the acquisition budget,” observed the committee. “There is a need to allocate more funds for new schemes.”

Fight now and pay later

* Plans to buy four state-of-the-art MiG 29 fighters – each costing more than
Rs. 1.6 billion
* Current undeclared Eelam War IV costliest phase of the whole conflict
* Lack of transparency and accountability main cause of skyrocketing war bill

By Iqbal Athas

* It was past 2 a.m. last Monday when the well equipped Sri Lanka Air Force (SLAF) Beechcraft was on patrol over the skies of Trincomalee. Such patrols over North and East have become a routine after the Liberation Tigers of Tamil Eelam (LTTE) demonstrated its air strike capability. Suspecting it to be a LTTE aircraft, a Sri Lanka Navy patrol directed fire at the reconnaissance plane. However, it did not hit the target. Though a case of mistaken identity, it still demonstrated one fact – if troops were alert on the ground for any air threat, so was the Navy at sea.
* On May 13, Army troops began a search operation in the Wilpattu National Park. One team moved inland from the western coastal side. Another advanced in a westerly direction from the park border on the outer fringe of Anuradhapura district. The two teams met up at Kokmottai, the scene of a gory Tiger guerrilla massacre of wildlife enthusiasts last year. Later, the two teams advanced southwards and were due to end their search yesterday. With the operation coming to a close, it became clear reports that the Tiger guerrilla Air Wing used a concealed area in the wildlife park to take off and land their aircraft were false. There was not even a trace of such activity. Nor was any sign of a makeshift runway or a cleared patch located.
* A delegation from the Board of Airline Representatives, a body comprising all airlines operating through Colombo, met Tilak Collure, Secretary to the Ministry of Ports and Aviation, on Thursday. They dropped a bombshell. None of the airlines was officially informed, certainly not in writing, about the decision to close the Bandaranaike International Airport (BIA) from 10.30 p.m. to 4.00 a.m. every day beginning May 10. Like all others, they have learnt of it only through the media. They raised issues over the safety of Sri Lankan air space and operations at the airport. Their concerns spoke clearly about the sorry state of affairs at the BIA and the poor workings of the Airport and Aviation Services (Sri Lanka) Limited (AASL).
The delegation may have to meet Government representatives again before their grievances are heard. This is because Chamal Rajapaksa, the new Minister of Ports and Aviation, assumed office only this week. Moreover, Mr. Collure is due to be replaced shortly as Secretary.
The Sunday Times gave the man who took the decision to shut down the airport for five and half hours daily, Chairman Chandima P. Rasaputra, a set of questions. These included queries on the need for the closure, the losses incurred and other issues including the concerns raised by the Board of Airline Representatives. Though he agreed to provide the answers in the public interest, they were not received. Mr. Rasaputra, an IT expert, who has spent many years in the United States, has been associated with the BIA only for the past 16 months. That is after the presidential elections in November 2005.
* A leading Asian airline has lodged a strong protest with the International Air Transport Association (IATA) about a complaint from one of its pilots. The pilot had alleged that his aircraft came under ground fire sometime after he had taken off from the Tamil Nadu airport of Chennai and was heading towards an Asian capital. The incident is said to have taken place on the night of April 26 when a Tiger guerrilla aircraft attempted to carry out an attack on the SLAF base in Katunayake. There were reports then of gunfire being directed at a commercial aircraft in the skies over Vavuniya though, it was far beyond range. The Sunday Times learnt that IATA is now conducting a full investigation into this complaint. Its findings, industry sources warn, could lead to strictures on Sri Lankan authorities and may compel even insurance companies to take a fresh look at issues arising from the guerrilla air threats.

These are among some of the significant events that go to show that Tiger guerrilla air strike capability, demonstrated with four different sorties within just over a month, has caused concerns both for the Government and in many other sectors. Last week’s Situation Report which dealt with the Government’s moves to acquire top of the range MiG-29 aircraft drew the attention of even President Mahinda Rajapaksa.
A MIG -29 in flight

During a meeting with Editors and senior editorial management staff of print and electronic media, he declared, “the addition of MiG-29 fighter jets was not thought of after the LTTE attacks.” He added: “It was part of the planned development of the ADS (Air Defence System), which envisaged a shift from MiG-21 (a reference to MiG-27 since the SLAF does not have and never had MiG-21) to MiG-29. This was not a sudden case of using a Mercedes Benz against a Bullock cart, as had been commented he said.” See box story on this page for the statement from the President’s Office.

In his remarks, President Rajapaksa, who is also the Minister of Defence and Commander-in-Chief of the Armed Forces, has formally confirmed that the purchase of MiG-29s is very much on the cards though “it was not thought of after the LTTE attacks.” He has said that it was part of a “planned development of the Air Defence System” and added that it was a shift from MiG-27s to MiG-29s. In other words, the plan is to phase out the MiG-27s with MiG-29s. It is not for The Sunday Times to offer advice or opinion on which type of aircraft or Air Defence systems should be procured. That is the prerogative of the Government after it obtains expert advice from the Sri Lanka Air Force and other knowledgeable quarters. However, there are aspects that have to be pointed out in the national interest since it is public funds that are used for such procurements and to prosecute the ongoing undeclared Eelam War IV. It is in this spirit that previous Air Force procurements were highlighted.
A MIG -29 UB trainer

The Government, it is clear, would not make a decision to “phase out” its newly acquired MiG-27s with state-of-the-art MiG-29s without the full endorsement of the Air Force. It is they who assess the threat perceptions posed by the LTTE Air Wing and the counter measures necessary. It is they who execute the air war. Did they make such a threat assessment? Did they feel it was now necessary to “phase out” the MiG-27s that soon so MiG-29s could be acquired? What was the urgency for a hurried “phase out”? These and other questions become more relevant since the moves to acquire MiG-29s were “not thought of after the LTTE attacks.” In other words, it had been decided much earlier. The question that begs answer therefore is why four MiG 27s were procured only last year at a heavy cost? This is particularly if there were plans to “phase out” the MiG-27s with MiG-29s only months later. Delivery of these MiG-27s took place only in December, last year. They have been barely used for five months. As revealed last week, two of them became non operational but one has been repaired. The other awaits the arrival of spares under the warranty.

The Sunday Times of December 3, 2006 declared in a front page report that the purchases of four MiG-27 ground attack aircraft and overhaul to seven others now with the Air Force have raised a number of questions. The report revealed that four MiG-27 aircraft were purchased for US$ 2,462,000 (or Rs 265,896,000) each. Thus, the four MiG-27s cost US$ 9,848,000 or Rs 1,063, 584,000. That is one billion, sixty three million five hundred and eighty four thousand rupees. This deal was put through by Sri Lanka’s Ambassador to Russia, Udayanga Weeratunga.

The Sunday Times reliably learns that the Air Force wants to procure four new MiG-29SM multi role combat aircraft. This model has the ability, among others, to carry guided air-to-surface missiles, TV and laser guided bombs. This is on a pre-arranged credit from Russia lasting anything between seven and ten years. Thus, it would be a successive Government that would meet the payment obligations if the deal goes through. Though the final price is yet to be determined, the negotiations are taking place in Colombo. The average price of a MiG-29SM is said to be US$ 15 million (or Rs 1,665 million) each. In addition, the Air Force also wants to acquire a new MiG-29UB trainer at the same price, a spares package, an UAV system, brand new helicopters, overhaul and upgrade existing helicopters. The total cost of the entire deal, Air Force sources say, is estimated at US$ 145 million (or Rs 16,095,000 million). That is without the cost for missiles for the MiG-29s. That is sixteen billion and ninety five million rupees. The Government proposes to conclude the deal through the state-owned company Lanka Logistics and Technologies Limited. It is headed by Defence Secretary Gotabhaya Rajapaksa.

Thus, the total cost for the MiG-27s procured last year (Rs 1,063,584,000) and the estimated (Rs 16,095,000,000), all for Air Defence related costs brings the total to a Rs 171,183,844,800. In other words, it is staggering over Rs 17.1 billion (Rs 17,158,584,000).

The MiG-29 multi role combat aircraft, identified as Fulcrum by the NATO (North Atlantic Treaty Organisation), is Russia’s answer to western combat aircraft. According to Wikipedia internet encyclopedia, the history of MiG-29 started in 1969 when the then Soviet Union learned of the US Air Force’s ‘FX’ programme, which resulted in the F-15 Eagle. The Soviet leadership soon realized that the new American fighter would represent a serious technological advantage over all existing Soviet fighters. The MiG 21 ‘Fishbed” was agile by the standards of its day, but had deficiencies in range, armament and growth potential. The MiG-23 (NATO name Flogger), developed to match the F-4 Phantom II, was fast and had more space for fuel and equipment, but lacked in maneuverability and dog fighting ability. What was needed was a better-balanced fighter with both good agility and sophisticated systems. In response, the Soviet General Staff issued a requirement for a “Advanced Frontline Fighter”. Specifications were extremely ambitious, calling for long range, good short-field performance (including the ability to use austere runways), excellent agility, Mach 2 plus speed and heavy armament. Thus the MiG-29 was born.

Thus it is quite clear that the MiG-29 was the result of the battle for air supremacy by two most powerful world powers then. The question is whether any flying or non flying wizard is trying to equate a non state actor like the LTTE, with only some light aircraft and make out that they would acquire advanced combat aircraft? At present, the LTTE is known to have only the Czech-built Zlin Z-143 light aircraft.

This explains the comparison in last week’s Situation Report. It is like buying a brand new Mercedes Benz to knock down a bullock cart. As things stand today, there is no information from any intelligence agency, either local or foreign, that the LTTE is in possession of highly advanced fighter jets. It only has a fleet of light aircraft, known to be ten. Hence, did whoever promoting the MiG-29 package deal think well ahead of any future LTTE acquisitions? Do they sincerely believe that the LTTE will in future acquire fighter jets used by conventional air forces of sovereign governments? The answers will never be known for there is no transparency in military procurements amounting to millions or billions of rupees. Here again it must be emphasized that the costs for missiles, be it heat seeking, radar or laser guided are in addition to purchase costs of the MiG-29 fighters. One of the missiles being considered for purchase is the medium range infra red guided air-to-air missile.

Despite veiled personal threats and insidious attempts at intimidation directed at me, it must be said in the public interest that the ongoing undeclared Eelam War IV has become the costliest phase of all separatist wars. The reasons are many and none of them can be detailed out. Suffice to say they include a lack of any transparency and the absence of proper, careful assessment of urgent military needs. This indeed has been a malaise that has accompanied successive phases of the separatist war.

The recent procurement of MiG-27s and the intended purchase of MiG-29s clearly illustrate the case. These developments are taking place at a time when the economy is taking a bad turn, the rupee equivalent to the dollar is deteriorating and the people who sustain the war effort are forced to pay more and more for their daily livelihood.

Last week I pointed out that four different air raids within just over a month have caused more panic and concern in the country’s defence establishment than four different phases of the separatist war – the last being the ongoing undeclared Eelam War IV. To illustrate how the cost of war has been rising, I quoted some figures. Errors have crept into some of the prices mentioned in US dollars and their equivalents in Sri Lankan rupees. I repeat the paragraphs in question with the correct amounts:
“According to highly placed Army sources, the price of a 120mm mortar shell is US dollars 148 (or Rs 16,428), 81mm high explosive mortar shell US $ 74 (or Rs 8,214), 152 mm cannon shell US $ 295 (or Rs 32,745). These are some of the ordinance that is regularly expended.

“In addition, a 14.5 mm twin barrel ammunition for type 82 gun used by the Navy costs US $28,080 (or Rs 3,116,880) each. In most instances, procurement of military items will have to be after cash is paid upfront. One leading supplier to Sri Lanka backed out from selling military hardware until such time outstanding dues, said to exceed over US $ 200 million (over Rs. 22 billion) is settled. This has forced the Government to turn to another agency in the same country.”

It is therefore very clear that not only living costs that are on the rise. The cost of the ongoing undeclared Eelam War IV, for which the public will be compelled to pay more, is rising equally faster. This is despite the new policy of fight now with foreign equipment and pay later – a burden that will fall on the next Government, whichever that may be.

MiG 29 was on the skyline

The President’s office on Wednesday issued the following official statement:

“MIG 29 – NO KNEE JERK REACTION – PRESIDENT

The decision to purchase MIG 29 fighter jets for the Sri Lanka Air Force is part of the plans to modernize the Air Force and have a good Air Defense System (ADS). It was not a knee-jerk reaction to the LTTE’s recent air attacks, President Mahinda Rajapaksa, told Editors and Media Heads at Temple Trees today.

He said there were reports of the LTTE obtaining light aircraft long before its recent air attacks, leading to some talk of a proper ADS, but nothing had been done. However, despite these earlier reports some now say the LTTE’s aircraft had been purchased from the Rs. 250 million allegedly given to it during the election campaign.

President Rajapaksa said that only after the present government was elected that new radar equipment was obtained and work begun on establishing a proper ADS. “We are now continuing with the work of improving and strengthening the ADS”, he said.

The President stressed that contrary to many reports the addition of the MIG 29 fighter jets was not thought of after the LTTE attacks. It was part of the planned development of the ADS, which envisaged a phased shift from *MIG 21(sic) to MIG 29. This was not a sudden case of using a Mercedes Benz against a bullock cart, as had been commented, he said.

He said the Defence Authorities had worked out a means of responding to the LTTE’s present air capability and other threats by air.

Commenting on questions about the closure of the Bandaranaike International Airport for some hours at night, President Rajapaksa said this had mainly be done at the request of **Srilankan Air, (sic) which was the only airline with regular night operations. He added the decision to restrict night operations at the airport had been a plus point for Sri Lanka with the representatives of insurance companies who arrived here to assess the situation.

So far they had not intimated any decision to increase the insurance premium on civil aviation services, the President said.”

NOTE:
*The Sunday Times has learnt that the reference in this official statement to MiG 21 is erroneous. The Sri Lanka Air Force has never had on its inventory any MiG-21, which is of Vietnam war vintage. The reference is to the MiG 27.

** No airline styling itself “Srilankan Air” operates from Sri Lanka. The reference, The Sunday Times was able to ascertain, is to the national carrier, Srilankan Airlines.

Thousands Flee New Jersey Wildfire Ignited by Flare From F-16

By ALAN FEUER and RICHARD G. JONES
Published: May 16, 2007

A flare dropped by an F-16 fighter jet at a bombing range in southern New Jersey ignited a wildfire yesterday that burned thousands of acres of brush and pine forest, closed highways, forced thousands of residents to flee and damaged some homes, state officials said.
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The New York Times

By late last night, about 12,000 acres along the border of Ocean and Burlington Counties had burned, firefighters said, and only 10 percent of the fire had been contained. About 2,500 people had been forced from their houses, and three senior citizens’ homes also had been evacuated, officials said.

The blaze began shortly after 2 p.m. when an F-16 flying on a routine training mission from an air base in Atlantic City dropped a flare at the Warren Grove Gunnery Range in Ocean County, said Lt. Col. James Garcia, a spokesman for the New Jersey Air National Guard. The warplane was attached to the 177th Fighter Wing, based at the Atlantic City airport, and was practicing the use of a self-defense system in which flares are fired as decoys to mislead heat-seeking missiles, Colonel Garcia said.

The flames spread quickly from the range to the surrounding pinelands, forcing the evacuations in Barnegat, Stafford, Woodland and Little Egg Harbor Townships. About 500 people were asked to spend the night in shelters set up at Southern Regional High School in Manahawkin and at a middle school in Barnegat, officials said. Fire officials said that about 1,000 local, state and federal firefighters were battling the blaze. One of their jobs was to set small fires that were intended to destroy flammable materials in the path of the flames.

“This is one of the larger fires we’ve had for quite a few years,” said Maris Gabliks, chief of the New Jersey Forest Fire Service. Chief Gabliks said that warm temperatures, low humidity and high winds fueled the blaze. Brenda Schoeneberg, 46, of Warren Grove, said the authorities arrived at her house about 3 p.m. and told her she had 10 minutes to flee. She stuffed some photos, her medications and insurance papers in the car and drove away. By nightfall, she had returned.

“I panicked,” she said.

Late last night, Angela Kyme, 43, of Warren Grove, was still at home, where she stood staring at the tree line. She said she heard the fire alarms in town go off around 3 p.m.

“Then I went outside and looked up and saw the dark clouds,” she said. “It was pretty scary.”

New Jersey State Police officials said that Routes 72 and 539 were closed and that Exits 63, 67 and 69 on the Garden State Parkway were also shut down to help with the evacuation. Some of the roads might remain closed through this morning’s rush, they said.

Three years ago, another F-16 accidentally fired eight rounds from a high-powered 20-millimeter cannon through the roof of Little Egg Harbor Intermediate School, just three miles south of the range. The incident took place at night, and no one was hurt; the damage to the school was minor.

In 2002, errant practice bombs at the range sparked a small fire that burned about 11,000 acres. Another fire that started at the range destroyed 1,600 acres of the pinelands in 1999.