Obama signs military budget bill; Pak to get USD 2.3 billion

US President Barack Obama signed a USD 680-billion defence budget bill that provides USD 2.3 billion military assistance to Pakistan with tough condition to make sure that the funds are not squandered or diverted to affect the "balance of power in the region".

Obama said the Defence Authorisation Bill for 2010 eliminates some of the waste and inefficiency in the defence process that will better protect the nation, troops and save taxpayers tens of billions of dollars.


"The bill includes a commitment to the stability of Afghanistan and Pakistan, expanded programmes to keep nuclear weapons out of the hands of rogue states and terrorists, and a reformed system of defence acquisition to save taxpayer money," said House Majority Leader Steny H Hoyer.


The military aid money to Pakistan for the fiscal 2010 as mentioned in the bill has two major components USD 1.6 billion for the Coalition Support Fund and USD 700 million for the Pakistan Counterinsurgency Capability Fund.


For the USD 1.6 billion Coalition Support Fund, the bill would require that, before any more such money is spent, the Obama administration must certify that doing so is in the US national interest and will not adversely affect the region's balance of power.


India feels that the American assistance to Pakistan should be more focused on building counter-insurgency capabilities rather than conventional defence equipment which can be diverted for other purposes.

Rs 150 cr spent to buy speed boats by Maharashtra Govt

In the aftermath of 26/11 terror attacks, Maharashtra government has set aside Rs 150 crore to buy 28 hi-tech speed boats for patrolling the sea.

The first boat, equipped with bullet-proof jackets and sophisticated communication systems, was provided to the Thane (rural) police and was tested at the Versova creek on Ghodbunder Road in neighbouring Thane on Monday.


Thane Superintendent of police said, "We are expecting to get one more such boat and it would be used for coastal patrolling. Coastal belts like Utan and Pali fall under our jurisdiction."


The government has made a proposal for acquiring 28 such boats after the November 26 terror attacks, carried out by a group of ten terrorists who entered the city via the sea.


The boats, manufactured by Goa Shipyard Ltd, have a 550 horsepower capacity and will be equipped with bullet-proof jackets along with weapons.



The boats will have ultra-modern navigation tools and Global Positioning System (GPS) for constant communication with the police control room, Pandey said.

India, Israel sign USD 1.4 billion deal on air defence system

India has signed its biggest defence deal with Israel for the purchase of a state-of-the- art air defence system at a whopping cost of USD 1.4 billion (Rs 7,042).

Israel Aerospace Industries (IAI) has officially acknowledged that the defence deal between the two countries was inked on 27th February under which Israel will develop and manufacture seaborne and shore-based systems against missile attack on India, business daily 'Globes' reported.



The signing of the deal comes as India is in advance stage of testing of its own anti-missile shield. The Defence Research and Development Organisation (DRDO) has already successfully test-fired its advanced air defence (AAD) missile.



The two sides have agreed that part of the payment for the systems will be made during the development period and the balance will be paid during the 66 month delivery period, which is slated to begin 90 months from the date the advance payment is received, the report said.



As per the agreement, IAI has also undertaken to procure military or aviation products and services from India. It will invest in defence companies in India up to an amount equal to 30 per cent of the contract.



India is currently Israel's largest arms buyer

India begins aircraft carrier construction; to go in for more

Joining an elite club of nations capable of building large warships, India on Saturday began the construction of its first indigenous aircraft carrier at the Cochin Shipyard in Kochi and will go in for 2 to 3 more carriers in the heavier class.

Pressing a remote to lower the keel the ship's backbone into the construction dock of the shipyard, Defence Minister A K Antony said, "The Navy's carrier will showcase India's technological prowess and warships' building capabilities to the world. It will be the largest ever warship to be built in India."


The 40,000-tonne carrier will operate nearly 30 aircraft including the Russian MiG-29Ks fighters, Kamov-31 helicopters and the indigenous Light Combat Aircraft (LCA).


"This is a crucial milestone and an occasion to cherish in the shipbuilding traditions and maritime history of the nation. The culmination of this prestigious project, sometime in 2014, will transform India into an aircraft-building nation," Antony said.


He said that India will certainly produce more indigenous aircraft carrier, but in the heavier class category to meet the future challenges and needs of maritime security.



"We hope to operate two to three aircraft carriers simultaneously in the not too distant future," Mukherjee said.



"Our ever expanding maritime responsibilities require enhanced 'blue water' capabilities and to achieve this, integral air cover is a must. Our navy is one of the few carrier-operating navies worldwide," Antony said.


Among the naval powers of the world, only the US, Russia, France and the UK have carrier building capability. Even out of these four, UK is yet to build a carrier with a 40,000 tonne displacement.


India already possesses an aircraft carrier in the 29,000-tonne class, the INS Viraat bought from the British navy and it has seen 50 years of cumulative naval service.



The 45,000-tonne Admiral Gorshkov aircraft carrier was purchased from Russia in 2004 and has been re-christened as INS Vikramaditya and is likely to join Indian Navy in 2012 after repair and refit in the Russian shipyard Sevmash.


The uncertainty, conflict and threats from maritime terrorism, piracy, narcotics, smuggling and low-intensity conflict were perpetrated by both state and non-state actors, he said, adding "the security of the sea lanes and offshore infrastructure will have to be ensured for sustainable development".



Designed by the Navy's Design Organisation since January 2003 after the government sanction came, the project had gained stream in 2006 when the construction of the warships' building blocks began.


The shipyard has already completed about 8,100 tonne of work with steel, developed by DRDO and produced by SAIL.


"The Project-71, as the integrated aircraft carrier is called in the Navy parlance, was initially sanctioned Rs 3,260 crore by the government, but the project cost was likely to increase as the warship construction progressed," Cochin Shipyard's (CSL) Chairman and Managing Director Commodore (retired) M Jitendran told reporters earlier in the day.


Jitendran said the CSL had already built around 400 blocks of the total 874 blocks that would form the fully constructed carrier when it would be delivered in 2014.


He said the Navy and the CSL had jointly designed the carrier, but taken help from Russia's NBD for the aviation aspects of the warship and Italy's Fincantieri for the propulsion system integration.


Asked about the carrier's contract, Jitendran said they were expected to complete work on the warship by December 2010 and launch it into the water, but the delivery would take place on schedule in the middle of the next decade.


On plans for construction of heavier aircraft carrier in the future, he said the CSL currently did not possess the construction dock to build warships heavier than 40,000 tonnes, but if the government intended to give it the orders, expanding the shipyard was possible.



India 'safe' in the hands of armed forces: Antony


Addressing a function in Kochi after laying the keel of India's first Indigenous Aircraft Carrier (IAC), he said this was his last public function as the Defence Minister.


He said, "when I look back, I feel satisfied that I tried my level best to protect national interest and security. I got total support and cooperation from all my colleagues."


Stating that rapid industrial growth was increasing country's dependence on sea route he said "this necessitates security of our sealink communication and offshore infrastructure".


"The task of defending seafront security of the offshore installations and safeguard of the sealines make the task extremely challenging".


" Indian Navy has to take the lead in safeguarding the nation's vital security interest," he said.


Praising the Indian Naval designers, he said they proved that they could design a world class aircraft carrier.



Neither Chief Minister, V S Achutanandan, nor any of his Cabinet colleagues attended the function.


Replying to a query, Antony said "there is no proposal with the government to privatise the Cochin Shipyard Ltd."



He added that any such move would be opposed.

India signs defence, security agreements with Qatar

Giving a strategic depth to their bilateral ties, India and Qatar signed agreements on defence and security addressing maritime security and sharing of intelligence to prevent terrorist activities.

The defence cooperation agreement includes issues of maritime security, while the pact on security and law enforcement would cover issues like common threat perceptions and sharing of data.



The agreements were signed as Prime Minister Manmohan Singh arrived in Doha from Muscat on a two-day visit to this energy rich Gulf country.



Singh met Qatar's Prime Minister Sheikh Hamad bin Jassem bin Jabr al Thani for talks on enhancing trade, defence and energy cooperation.



Singh would call on Qatar's Emir Sheikh Hamad bin Khalifa al Thani on Monday, who is also hosting a private lunch for the Prime Minister and his wife Gursharan Kaur.



Earlier, Singh, accompanied by a high-level delegation, held wide-ranging discussions with the Omanese leadership on enhancing trade, economic and energy ties.



In Doha, the Prime Minister was received by Qatar's Minister of State for Foreign Affairs Ahmad Bin Abdullah

Al-Mahmoud and the Council of Ministers. He was also presented a guard of honour.



An additional 2.5 million tonnes would be shipped under the same contract from January, but Petronet LNG Ltd, which imports LNG from Qatar, needs to tie up a similar quantity to fill the gap after the capacity of its Dahej import terminal in Gujarat is doubled to 10 million tonnes by March next year.

State-run gas utility GAIL India's proposal to set up a mega petrochemical plant in joint venture with Reliance Industries also figured during the discussion.

The GAIL-Reliance joint venture had earlier this year sought rich gas from Qatar, which holds world's third-largest gas reserves, for the petrochemical plant, but Doha had made no commitments, saying all its current production was tied up.

Singh would call on the Emir of Qatar Sheikh Harmed bin Khalifa al Thani, who is also hosting a private lunch for the Prime Minister and his wife Gursharan Kaur on Monday afternoon.



PM for cooperation with Gulf nations to ensure stability



Concerned over criminal and terrorist activities in India and the oil-rich Gulf, Prime Minister Manmohan Singh has said the two sides should work closely to ensure "a stable and prosperous region".



"Piracy, criminal activities and terrorism on our seas and land threaten the Gulf countries and India as well," Singh, on his maiden visit to the region, said addressing the Indian expat community in Muscat on the second day of his three-day visit to Oman and Qatar.



The Gulf region is part of India's "extended neighbourhood," and the largest source of the country's energy supplies, Singh said.



"The Gulf region is an area of great importance to India. It is part of our extended neighbourhood, and home to five million Indians. It is the largest source of our energy supplies," he said.



The Prime Minister, whose first stop on the visit was Oman, on Saturday evening held delegation level talks with Deputy Prime Minister Sayyid Fahd Mahmoud Al Said. He met the nation's Sultan Qaboos bin Said on Sunday afternoon.



He said "there are many reasons for us to work closely together with Oman to ensure a stable and prosperous region."



Lauding the contribution of the Indian expat community, Singh said annual remittances from Oman to India were more than USD 780 million.

"This is a reflection of your ties with the motherland and your confidence in India," Singh said.

The Government, he said, was alive to the welfare of the non-resident Indian community citing the memorandum of understanding with Oman on labour mobility, protection and welfare of workers signed on Saturday.

The Ministry of Overseas Indian Affairs is in the process of establishing Overseas Indian Community Welfare Funds in all Indian Missions in the Gulf, besides the Overseas Workers Resource Centre, a toll free helpline, has been established for Indian workers in the Gulf, Singh said.

An Overseas Indian Facilitation Centre provides opportunities for expats to invest in India.

The Prime Minister said destinies of the Gulf countries and India are closely interlinked, with large number of Indian expats based in the region acting as a "bridge between us".

"We have had a tradition of trade and civilisation contracts through the sea over many centuries. The large Indian community in Oman (numbering over 550,000) serves as a bridge between us, contributing to wealth and prosperity for both Oman and India," Singh said.

India, he said, was undergoing a major transformation. "Our economy is expanding rapidly. New opportunities for our youth are emerging every day. Our Government has embarked on the largest education, social welfare, skill development and employment generation programmes in the history of our country."

India's total non-oil trade with Oman, which was less than USD 200 million in 2000, has gone up seven fold to around USD 1.4 billion this year and Singh projected it to go up to USD 2 billion in near future.(AM-10/11)

Cabinet to consider easing FDI in defence production

As part of the drive to shore up investor confidence and give thrust to manufacturing, government will consider relaxing rules for foreign direct investment in defence production, Commerce and Industry Minister Kamal Nath said.

The issue would be taken up by the Union Cabinet in the near future, Kamal Nath said on Tuesday.


"India can become a great manufacturer of defence items. So, we will like to see some easing up there," the Minister told reporters on the sidelines of a meeting organised by business chambers with visiting Belgian King Albert II.


He said the Cabinet would consider options to provide new thrust to the manufacturing sector.



Besides, streamlining the procedures for FDI would be on the government agenda.



Currently, 26 per cent of FDI is permitted in the defence sector.


Nath said despite troubles in the world economy, India continued to attract FDIs and the target of USD 35 billion for 2008-09 fiscal would be achieved.


In September this year, FDI inflows went up by 259 per cent to USD 2.56 billion, against USD 713 million in the same month last year.



For April-September period this year, the inflows went up to USD 17.21 billion from USD 7.25 billion in the comparable period a year ago, showing a rise of 137 per cent.


The government has made concerted efforts in the last few weeks to limit the impact of shrinking global credit on the Indian economy.


The Reserve Bank has injected liquidity in excess of Rs 260,000 crore, besides reducing the overnight lending rates.



The prices of aviation turbine fuel have been cut along with scrapping of the import duty.


The banks are considering lowering interest rates as well.

Russia to set new record with 8-billion-dollar arms sales in 2008

Russia already has several contracts ready to ship its military hardware to Venezuela, Saudi Arabia and several other countries. Alexander Fomin, the chairman of the Russian official delegation at Farnborough International Airshow, said that Russia was currently conducting defense cooperation talks with Saudi Arabia. The country is interested in buying Russian transport and battle choppers and air defense system
It was previously reported that Rosoboronexport, Russia’s major defense export corporation, was working on a four-billion-dollar contract with Saudi Arabia. The preliminary arrangement to purchase arms from Russia was achieved in November 2007 during Putin’s meeting with Saudi Crown Prince Sultan bin Abdel Aziz Al Saud in the Kremlin.

Russia also conducts active defense cooperation talks with Venezuela.

“We have several contracts with this country and we plan to sign more of them in the future,” Alexander Fomin said.

Russia also plans to deliver about 70 airborne radars Zhuk-ME for MiG-29 jet fighters of the Indian Air Force.

The Federal Defense Cooperation Service of the Russian Federation said that export shipments of Russian arms and military hardware in 2008 would set a new record for the country and bring the profit of over 8 billion dollars. Last year Russia sold arms in the sum of $7.4 billion. Aviation still takes the lead in the export shipments.