Tag: Nirmala Sitharaman

Nirmala Sitharaman defends procuring 36 Rafale jets, says IAF infrastructure did not allow more: report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government procured 36 Rafale fighter aircraft from France in 2015, instead of the 126 negotiated by the UPA government, as Indian Air Force’s (IAF) infrastructure and other technical requirements did not allow for greater induction, said defence minister Nirmala Sitharaman in an interview with The Indian Express, amid the Rafale deal controversy.

The Congress has been alleging massive irregularities in the deal and has attacked the government claiming that the Air Force required 126.

The Modi government inked a government-to-government deal with France for the purchase of 36 Rafale jets at a cost of Rs 58,000 crore. The delivery of the aircraft will start from September 2019.

Here are the key highlights of the defence minister’s interview with The Indian Express:

• On the order of 36 Rafale aircraft, Sitharaman said, “Every time you induct one squadron (standard fleet of 18 aircraft), there is a requirement for a lot of other paraphernalia to come in. Given a set of parameters, if you quickly want to induct, two is the ideal.”

IAF Air Chief Marshal BS Dhanoa had earlier defended the government’s decision on procuring 36 Rafale jets instead of the 126. He said there have “emergency” acquisitions in the past and the purchase of 36 Rafale jets (two squadrons) will help the force deal with the situation.

“Air Force Technical Details will tell you, that for any emergency-based induction, it is always two squadrons and not more than that. So that justifies why we settled for two. Because in ready, flyway condition, that is all you can induct, otherwise you have to spend a lot more on creating other paraphernalia for bringing in,” Sitharaman said.

• The Congress had alleged that Prime Minister Narendra Modi and Reliance Group chairman Anil Ambani “acted in collusion” over the Rafale jet contract. On this, Sitharaman said, all procedures will be followed as applicable for any offset discharge.
  

  “Isn’t that a decision of a commercial enterprise to take on their own? I have nothing to do with it, I have not prompted them, not led him, not told them, I have not instructed them, so why am I be worried by what he would tell me? It may be A, B or C, it may be 70 different partners, it may be buying a product, they may be investing, it may be buying a service, so where am I in it?” she said.

• At the beginning of the month, India signed a path-breaking agreement with the US which will allow Indian defence forces to receive military-grade communications equipment from the US and ensure access to real-time encrypted information.

In order to pump up the defence sector further, Sitharaman said India is willing to consider the third defence foundational agreement, BECA (Basic Exchange and Cooperation Agreement) with the US and has the US government for its text.

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2+2 dialogue: US, India seal military communications pact, plan more exercises

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India and the United States signed an accord on secure military communications that both sides hailed as a breakthrough on Thursday, possibly opening the way for sales of sensitive US military equipment to India.

The pact was signed after US Defense Secretary Jim Mattis and Secretary of State Mike Pompeo met Indian Foreign Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman for talks aimed at deepening political and security ties.

The world’s two largest democracies have drawn closer in recent years, seeking ways to counter-balance China’s spreading influence across Asia, notably in Pakistan, Southeast Asia and the Indian Ocean.

Before coming to India, Pompeo held talks in Islamabad with Pakistan’s new government and generals, aiming to smooth over tensions after President Donald Trump took a tough new line towards Pakistan over longstanding accusations it is not doing enough to root out Afghan Taliban fighters on its territory.

The presence of US troops in Afghanistan has heightened US sensitivity to the rivalry between nuclear-armed India and Pakistan. Washington and New Delhi share concerns over Pakistan-based anti-Western and anti-Indian Islamist militant groups.

The Communications Compatibility and Security Agreement (COMCASA) that was signed on Thursday had been stalled for years because of India’s concerns that it would open up its communications network to the U.S. military.

Pompeo said the accord was a “major step” forward that officials have previously said would allow the US to transfer high-tech equipment such as armed surveillance drones. New Delhi has been seeking the drones to monitor the Indian Ocean where China, a close ally of Pakistan, has been making repeated forays in recent years.

India and the United States also agreed to open a hotline between their foreign heads and hold joint exercises involving the air force, navy and the army off the eastern Indian coast in 2019, the Indian government said.

“The momentum in our defence partnership has imbued a tremendous positive energy that has elevated India-US relations to unprecedented heights,” Sitharaman said.

A senior US defence official said the United States had only signed similar pacts with fewer than 30 other countries.

“It not only allows us to be more interoperable with India, but it allows India to be more interoperable across its own systems…most significantly, it opens up a range of defense technologies to India,” Joseph Felter, deputy assistant secretary of defense for South and Southeast Asia, told a small group of reporters.

Felter said that by signing the agreement some Indian weapon systems would see an immediate increase in capabilities, including the C-130 and C-17 aircraft.

The United States has emerged as India’s second largest arms supplier, closing $15 billion worth of deals in the past decade.

Experts believe the signing of the COMCASA agreement could also reduce the chances of the United States imposing sanctions on India for looking to buy Russian S-400 surface-to-air missile systems.

The United States has imposed sweeping sanctions on Russia, under which any country engaged with its defence and intelligence sectors could face secondary US sanctions.

However, a new defence bill proposes giving the U.S. president authority to grant waivers when national security interests are at stake.

Felter said the issue of a potential S-400 purchase by India did not come up during talks. Later, Pompeo told reporters the United States was not seeking to punish India for its proposed purchase.

The United States is also pushing countries to halt oil imports from Iran after Trump withdrew from a 2015 deal between Iran and six world powers that was intended to stall Tehran’s developing nuclear capabilities.

India is Iran’s top oil buyer after China, and it is seeking a waiver from the United States.

Ahead of the talks in New Delhi, a senior U.S. State Department official said the United States was engaged in “very detailed conversations” with India over Washington’s request to completely stop India’s oil imports from Iran.

“We’re asking all of our partners, not just India, to reduce to zero oil imports from Iran and so I’m confident that will be part of our conversation with India,” the official told reporters accompanying Pompeo.

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India, US ink COMCASA after inaugural 2+2 dialogue, say officials

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India and the US on Thursday inked a long-negotiated pact under which critical and encrypted defence technologies will be provided to the Indian military by the Americans, officials said.

The ‘Communications, Compatibility, Security Agreement (COMCASA)’ was signed after the first two-plus-two talks External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman had with US Secretary of State Michael R Pompeo and Defence Secretary James Mattis.

The COMCASA will facilitate India to obtain critical defence technologies from the US, and access critical communication network to ensure interoperability among the US and the Indian armed forces.

It will also allow the installation of high-security US communication equipment on defence platforms being sourced from the US, officials said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

2+2 dialogue: Indo-US strategic partnership could get a leg up on September 6

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is gearing up for the highest level engagement with the United States this year, the inaugural 2+2 dialogue. The discussions will focus on further elevating India’s strategic and defence partnership, trade, US sanctions on Russia and Iran, counter-terrorism and wider discussions on regional and global issues.

US President Donald Trump’s decision to accept India’s Republic Day invite could depend on how successful this dialogue is.

What Is 2+2 Dialogue? 

Simply put, 2+2 dialogue means bringing together foreign and defence ministers of both India and the US and making all four of them sit across the table to streamline foreign policy and defence cooperation.

The US holds 2+2 dialogues with a select group of countries including Japan and Australia. Diplomatic sources say this indicates the special relationship India shares with the US.

Secretary of state Mike Pompeo will hold a one on one discussion with external affairs minister Sushma Swaraj and secretary of defence James Mattis will have a one on one discussion with defence minister Nirmala Sitharaman.

All four leaders will then sit together at the Ministry of External Affairs to discuss the entire bilateral partnership.

Chairman of the joint chief of staff committee Joseph Dunford will also be in New Delhi on September 6.

Discussions On Trade

Bilateral trade in goods and services stands at $126.1 billion with a trade deficit of $27.9 billion which Donald Trump wants India to correct. There will be comprehensive discussions on US tariffs on aluminium and steel and United States Trade Representative’s (USTR) decision to review GSP(Generalised System of Preferences) benefits to India.

Source told CNBC TV18 that India and US may be working on a trade package to sort out these issues. “We are in the process of listing out issues which are relevant to both sides in terms of market access,” a government official said. “We hope we can work out something which is reasonable.”

Officials would also like to emphasize that India has managed to reduce the trade deficit by $1.5 billion and perhaps for the first time India has become an importer of oil and gas from the US.

“In this calendar year we would have imported 2.5 billion worth of oil and gas from the US and we would like the US to acknowledge that”, said people familiar with the matter.

Discussions On Iran

India would like to sensitise both Pompeo and Mattis that India is an energy reliant country and 83 percent the country’s energy needs are met by imports and 25 percent of our total oil imports come from Iran.

Officials would also like to tell the US that Indian refineries are dependent on certain kind of crude. India would be hoping for a waiver before US embargo on Iranian oil kicks in on November 4.

Defence Partnership

The US granted India the ‘major defence partner’ status in 2016. Recently India got STA1 authorisation from US department of commerce which would allow a license-free export regime for 90 percent of dual-use items.

Discussions on early conclusion of communications and security agreement, the appointment of naval liaison in Bahrain and establishment of a hotline between defence ministers’ are likely to take place during 2+2.

Both are the countries are also expected to hold comprehensive discussions on the military to military cooperation, defence preparedness, maritime domain awareness and co-development.

Road Ahead For Import of S400 Air Defence System

India has been asking US for a waiver from sanctions on Russia so as to allow import of the S400 air defense system. Sources say this is not on the agenda for 2+2 but India may convey that the US should keep in mind the larger strategic relationship while taking any decision on a waiver for allies.

Discussions on Indo-Pacific

India would like to understand how the new US administration sees the Indo-Pacific relation. India sees this as a growth corridor for the next 20-30 years and would like to explore ways to ensure peace and security in the region, sources said.

Counter-Terrorism

India would like to gauge the US administration’s views on the new government in Pakistan as Mike Pompeo would be arriving in Delhi after visiting Islamabad. It also expects wide-ranging discussions on counterterrorism and India hopes to urge the US to designate more terror entities.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India, China agree to expand military ties after defence talks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India and China have agreed to expand their military ties and enhance interaction to ensure peace on their common border, India said after a meeting between the old rivals’ defence ministers.

Relations between the Asian giants were strained last year over a 73-day military face-off in a remote, high-altitude stretch of their disputed Himalayan border.

But the neighbours have over recent months been working on mending ties and visiting Chinese Defence Minister Wei Fenghe told Indian Prime Minister Narendra Modi this week that their countries’ friendship dated back to ancient times.

On Thursday, Wei had extensive discussions with his Indian counterpart, Nirmala Sitharaman, the Indian government said.

“It was decided to expand the engagement between their armed forces relating to training, joint exercises and other professional interactions,” the government said in a statement issued late on Thursday.

The ministers also discussed their border and agreed to implement “confidence building measures” to ensure the maintenance of peace, including the early operationalisation of a hotline between their armed forces, India said.

India and China fought a war in 1962 and the unresolved dispute over stretches of their 3,500 km (2,200 miles) border has clouded relations ever since.

But the two big Asian economies share similar positions on a host of issues including concern about US tariffs and Chinese President Xi Jinping and Modi agreed in April to improve relations.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China defence minister meets Indian PM as ties warm further

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chinese Defence Minister Wei Fenghe praised relations with India, describing them during a meeting with Prime Minister Narendra Modi as a friendship dating back to ancient times, as relations between the two countries warm further.

Chinese President Xi Jinping and Modi agreed in April to open a new chapter in ties, just months after a dispute over a stretch of their high-altitude Himalayan border rekindled fears of war.

Wei told Modi that China and India had a long-standing friendship, China’s Defence Ministry said in a statement late on Tuesday.

He said Modi’s trip would deepen security exchanges, strengthen mutual trust, help protect peace on their border and make a positive contribution towards developing their partnership, the ministry said.

Wei is also scheduled to meet Indian Defence Minister Nirmala Sitharaman, where they will further discuss the border, the statement said.

Hundreds of troops from both sides were deployed in 2017 on the Doklam plateau, near the borders of India, its ally Bhutan, and China after India objected to Chinese construction of a road in the Himalayan area in their most serious standoff in years.

There is still deep mistrust between the two giant neighbours over their festering border dispute, which triggered a brief war in 1962.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nirmala Sitharaman calls upon startups to develop weapons

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Defence Minister Nirmala Sitharaman on Saturday called upon startups to develop technologies and weapons for the Indian armed forces.

“We (Ministry of Defence) want you to provide Indian solutions to problems faced by the armed forces. By indigenisation, India doesn’t need to import many of the products that we do,” Sitharaman told startups in this tech hub.

“India wants its sectors disrupted through technological advancements,” she said at the launch of “Defence India Startup Challenge”, a national contest for startups to develop arms and technologies for the defence sector.

“Indigenisation has been a priority for India, however, we did not indigenise sufficiently enough,” the Minister added, addressing a gathering of 200 startups, incubators and defence officials at the Hindustan Aeronautics Limited (HAL) Convention Centre in the city centre.

Through the contest, startups, small and medium-sized enterprises (SMEs) and individual researchers and academic institutions can take part in 11 different categories of creating technologies and products that can be used by the armed forces.

The 11 categories in which the startups and researchers can develop products or solutions include building see-through armour for the army, development of 4G-based tactical Local Area Network for the Navy, and laser weaponry and unmanned surface and underwater vehicles development for the Air Force, among others.

Select few startups will also receive a funding of up to Rs 1.5 crore through the Ministry for developing their ideas, and given access to test their products.

As part of the event, a Bengaluru-based firm Tonbo Imaging has been given an order to make night fire control system for Russian-made grenade launcher AGS-30.

“The Ministry will ensure the startups working on their ideas get the orders,” Sitharaman said.

Noting that unmanned drones with missiles are the envy of many countries, the Minister added it is not beyond India’s capacity to develop them.

The Defence Ministry, on the occasion, also tied up with five business incubators to promote and support the startups, including Centre for Innovation Incubation and Entrepreneurship with Indian Institute of Management (IIM), Ahmedabad; Society for Innovation and Entrepreneurship with the Indian Institute of Technology (IIT) Bombay; T-hub startup incubator in Hyderabad; ‘Forge’ incubator in Coimbatore; and IIT Madras.

“The contest is in line with the Innovations for Defence Excellence (IDEX) scheme announced by Prime Minister Narendra Modi earlier in April during Defence Expo in Chennai, to promote innovation and entrepreneurship in defence sector,” an official statement said.

The competition will also give a fillip to the country’s innovation potential and create networks for collaboration between defence sector and startups, it added.

Over 200 startups, 50 SMEs and 12 business incubators took part in the defence-business gathering.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow