Rosoboronexport took part in the NAMEXPO 2013 - the first international naval exhibition and conference, which took place in India, in the port of Cochin from 23 to 27 September 2013. Under the auspices of the only state special exporter, the enterprises of the United Shipbuilding Corporation (USC) - the central design bureau of marine equipment "Rubin", the St. Petersburg Marine Engineering Bureau "Malachite", "Sudoexport", as well as the Scientific and Production Association "Mars" and the company presented their products. "Aquamarine".
The chief editor of the newspaper “Military Industrial Courier” talked in Cochin with the Deputy General Director of Rosoboronexport OJSC Viktor Mikhailovich Komardin.
"MIC": Viktor Mikhailovich, competition in the market of weapons and military equipment is constantly growing. What trends in Russian-Indian military-technical cooperation can be expected in the near future? Will there be a decline in the Russian share in the Indian arms market with a projected 40 percentage or will the share be stable?
- The Indian potential in the financial sphere and the challenges facing the Government of India on arms procurement are very large. And our export opportunities are limited. Physically, there are certain limits, given the large amount of work on our state defense order, which, of course, is a priority. And here it is not the equipment that is to blame, its quality and combat capabilities, but organizational issues. And India has very big needs and the most different wishes. In fact, our exports to India are constantly growing, but the growth of import needs on its part is even steeper. This is how a niche turns into which other countries go. Plus, India is always thinking about diversification, about relations with other states. Indeed, in the military-technical cooperation in the first place is politics. With whom you bargain, so you are not fighting accordingly. The line of India is in principle peaceful. Therefore, it is trying to strengthen and expand ties with various countries through the PTS. But at the same time, our share in absolute figures does not decrease, and key defense projects are being implemented precisely with Russia. But in relative numbers - and this is a game with statistics - it may look smaller. For example, if we were the only 40 years ago, but the volume was small, now the volume is much larger, but other players have appeared, and our share has decreased.
"MIC": I understand correctly, in terms of export volumes is growing, and the share in general should not be paid attention?
- Of course. Moreover, this factor is also very important. Russia accounts most of all industrial cooperation projects. We have practically created the Indian aviation industry - five of the largest plants of seven have been created by us. Not Americans, not French. On land topics, too, several factories built by us. This production and technological cooperation is the main guarantee of stability in the future.
Viktor Komardin, Deputy General Director, Rosoboronexport OJSC
"MIC": What is the fate of the Indian aircraft carrier "Vikrant"? Do we assist the Indian side in building this aircraft carrier? If we do, in what volume and under what conditions?
- Volumes and conditions - this is not so important. The fact is that all Indian projects, and now their 46, are built on Indian shipyards. They are all constructed on the basis of the participation of various shipbuilding firms at the request of the Indians. They themselves decide which system or unit to buy from whom. We are involved in about eight to ten projects. But partly even more - if you take individual units, systems. Including working on the "Wikrant". We do there one, second, third. But they make the whole ship themselves. If on a large scale, then we have everything that concerns the air group and aviation equipment, including aerofinishers.
"MIC": A few words about "Vikramaditye." No country in the world has ever had such a project like ours with India. When the transfer is expected, will he be able to arrive in India before the end of the year?
- There are graphics. We expect this to happen in the first quarter of 2014. November 15 we rent it on Sevmash. Then he will be put in order, after which he will go to India under his own power. I think that in January will arrive. Plus or minus.
"MIC": Tell me, please, about the upcoming tender for the submarines of the P-75 project. How do you assess Russia's chances of winning the tender?
- The tender has not yet been announced. We are all in the preliminary stage of the project. Indian experts involved in this project travel around the countries producing diesel-powered submarines and study the projects in terms of seaworthiness, weapons, noise and so on. Naturally, every country persuades and proves that their boat is better. Why? Because at the RFI (Request for Information) stage, it is possible to somehow indirectly influence the development of technical characteristics and requirements that will already be laid down in the second part, when they will be handing out invitations to the tender - RFP (Request for Proposal). This is very important, because depending on what characteristics will be incorporated in this RFP, you will immediately see who gets better and who gets worse. Therefore, we are now at the stage when we talk about our capabilities, about our air-independent installation, weapons, and explain why the project with our participation will be the best and most advantageous.
"MIC": And what is our advantage over other participants?
- Our obvious advantage in improved boat armament systems. Here we simply have no equal - and this is an absolutely objective assessment. In the rest - it is necessary to delve into the details.
"MIC": Now India is in favor of creating joint ventures with foreign partners like BrahMosa. In your opinion, what systems, components could be produced by our countries as joint ventures in the field of naval forces? What are the most promising projects?
- Not exactly the right question. There are dozens of such systems on one ship. How it's done? India, which has financial capabilities, is interested in creating a modern military industrial complex. Buy ready now, as it was before, is not entirely appropriate. Therefore, in the summer of this year, another Indian regulatory document on the procurement of weapons - the Defense Procurement Procedure (DPP-2013, Defense Procurement Procedure) was issued. What it is? The Ministry of Defense recommends that, in the compulsory form, initial purchases be made from local Indian firms first. But Indian firms, if they themselves cannot produce the required samples, should already look for foreign partners for the organization of production in India. In the case when Indian firms themselves or on a subcontract with foreigners will not be able to offer anything, only then the Ministry of Defense will turn abroad. Therefore, now all decent shipyards and equipment manufacturers - engines, radar equipment, weapons - all ran on the main manufacturers of the respective units. For example, on diesel boats - to us, the Germans, the French. This is one aspect. The next aspect is offset, up to 40 percent offset. What does this mean? What you need to transfer technology and organize production in India with local firms for these units. We negotiated with more than 20 firms in the first days of the salon, and all of them mainly dealt with the purchase of Indian equipment for Russian platforms. A lot of companies came to get acquainted, exchange information and presentations.
"MIC": You can tell a little more detail about what topics were discussed at the negotiations with these firms?
- I would like to make a small clarification. Everyone thinks that a shipyard is responsible for the project. In fact, both the complexity of the project and the time for its implementation mainly depend on the manufacturers of the units and systems. Because the shipyard is first of all the formation of the ship hull. Next - filling. Location, weapons, installation of various equipment. These are all very important things. When a boat or a ship is being repaired, it is not the hull that the shipyard has built that is being repaired, but the units and systems are being repaired. It is they who fail. Therefore, hundreds of firms are behind the shipyards, and our task is to bring them together with Russian subcontractors.
Regarding the subject of negotiations with these companies, it is hydraulic systems for submarines, desalination plants, refrigerators, pumps, ventilation, diesel generators, fire protection systems, current repair issues, batteries. By the way, India has very good batteries of its own. In addition, the issues of creating repair facilities in various organizational options were discussed.
"MIC": That is, asking for a joint venture? What is the most popular form of cooperation?
- It all depends on the complexity. The first, simplest thing is to buy a license from us for money. We train their specialists in Russia for money and then under contract, when they repair, we certify their plots for money. They are buying money for non-standard equipment. For different systems, different things - everyone buys. And further the contract on sending of our experts to India. To help if something goes wrong. Then test equipment. This is the simplest in terms of organization.
But as practice shows, at the first stage, the repair is not very good, and the boat or the ship is the same as the first, the second repair. Everything must be done. Therefore, the second form of cooperation is the proposal to create a joint venture. Why? Because when there is a share of the Russian manufacturer there and in the management, he will immediately do it right, as he knows. He will have a sense of responsibility for quality. Further, when there is a significant number of Russian specialists on an ongoing basis, this is already a guarantee of quality. Under Indian law, in production only up to 26 percent of foreign participation, and in the field of after-sales service - up to 49 percent. Therefore, in terms of quality assurance, it is better when we create a joint venture with the Indians.
"MIC": The issue with the possible construction of the 11356 frigates of the project remains open. Is there any chance that the next series of frigates will be built by the forces of the Indian side?
- In shipbuilding, the first ship is the most expensive and with the biggest drawbacks, since at this stage there is actually piece goods. And when there is a long series - it’s cheaper, more efficient and better, especially at Yantar all production processes are fully developed. In principle, the Indian side can try to make them at home. But in this case, you need to buy a license, train specialists, purchase equipment for production. And this is an additional cost and plus the first ship, of course, with some flaws. And they will do it in 10-15 years. If you weigh everything, it’s necessary for the Indian the fleet? In addition, we can supply Indian units and systems to the frigates of Russian construction by offset, which will not affect the production time and will be fully consistent with the new procurement policy.
"MIC": What can be said about the outcome of the exhibition NAMEXPO 2013?
- You need to understand that this is the first Indian marine exhibition and it is naturally small. But they have an idea - they have an independent exhibition on aviation in Bangalore (Aero India) and a mixed exhibition in Delhi (Defexpo) - sea and land. But given the importance of the marine component for the Indian military-industrial complex, they decided to organize a marine. The problem is that this exhibition was announced at the end of May, and it is very late. Nevertheless, we got together and did, while others did not. It speaks of attitude. The fact is that when the organizers in a country want to hold an exhibition, they also want it to be effective, to be covered in the press, to show the possibilities. And it all depends on foreign participation. So no one came at the state level like us. You do not see here the USA, Israel, Germany, Italy. I think this is very important. And on our stand it is written - RUSSIA. And it's not just that, red and white. Rosoboronexport is, Rostec is. All. Is this talking about something? And then conclusions are made ...
We offer various forms of cooperation with India.
As mentioned above, USC enterprises also took part in the Indian exhibition NAMEXPO 2013. The head of the division of the military-technical cooperation department of United Shipbuilding Corporation OJSC, Alexander Georgievich Segodin, kindly agreed to answer the questions of the editor-in-chief of the weekly "VPK".
"MIC": What are the prospects for Russian-Indian cooperation in the ship sector?
- It’s no secret that for many decades India has been a strategic and one of Russia's main partners in the MTC field.
Cooperation, which began in the middle of the last century, has a tendency to constantly evolve: from the delivery of samples of naval equipment, the transfer of licensed production to the joint design and construction at national shipyards of India.
Today, with the participation of Russian specialists, many ship projects are being successfully implemented in the Indian Navy. The main ones are projects such as 15, 15A, 15В, 25, 25А, 17.
A striking example of close cooperation, as well as an indicator of the high level of development of the Indian radio-electronic industry, is the development of a combat information management system (CICS) for the 17 project. This is a fundamentally new CICS, capable of solving the tasks of combat control not only of its own ship, but also of the entire ship formation.
Regarding the participation of USC in the first international naval exhibition and conference NAMEXPO 2013, it is too early to sum up and evaluate the results. I want to say, frankly, that the exhibition, in general, is small. But even in spite of this, our corporation, under the leadership of FSMTC of Russia, was pleased to have delegate participation in the work of the exhibition at the exposition of Rosoboronexport OJSC. Why?
Because for the shipbuilding industry this is an additional opportunity, a platform where you can meet with our Indian colleagues, talk with them, talk about the prospects of our cooperation and once again confirm the readiness of the Russian side to joint mutually beneficial cooperation. We are very interested in this cooperation. Especially our enterprises that are part of the United Shipbuilding Corporation.
For the last three or four years, representatives of the corporation have actively participated in almost all Russian-Indian events, which are being jointly implemented in Russia and here in India. In particular, work is actively underway in the so-called subgroups on shipbuilding and military-technical cooperation. These subgroups are established and cooperate within the framework of the Intergovernmental Commission of the Russian-Indian working group. And this is pleasant, because, firstly, there are many pilot projects that are in principle widely known. Including on the control of the highest leadership of the country.
These are projects such as Vikramaditya (Admiral Gorshkov), which we plan to complete by the end of this year according to the plan. These are other equally important projects. Of course, we are interested in the fact that a number of similar pilot projects will be in the future, we are openly talking about this. And we would like, there is nothing to hide, to receive the appropriate orders for our enterprises, in order to supply the Indian Navy with new modern ships.
Under the conditions of a large-scale rearmament program for the Indian Navy, Russian production facilities remain in demand. The United Shipbuilding Corporation plans to actively participate in the joint design and construction of warships and support vessels. At present, a package of proposals has been formed for the next decade and active work is underway to enter the announced tenders.
"MIC": What are we talking about?
- This is first of all the next three frigates 1135.6. Indian colleagues, sailors highly appreciate both the combat capabilities and the seaworthiness of these ships. And we will be happy to supply the necessary number of these ships for the Indian Navy. The only thing is to get an official application. We are ready to take an active part.
The next big topic is the construction and supply of MUH (self-propelled deep-water vehicles). Conducted a tender. Our enterprise, JSC ZS Zvezdochka, is actively involved in it, and if it comes to a contract, it is this enterprise that will be the builder of this device. And this is a huge program that requires not only the delivery of MUH. But, let's say, the creation of several mobile rescue complexes throughout India that would provide, if necessary, the rescue of submariners from sunken submarines.
The third topic is very important. This is, of course, participation in the tender for submarines of the P-75 project. The Russian side has been working on this topic for a long time. In my memory, if I'm not mistaken, this topic first appeared in 1999. A large number of presentations, technical consultations were held, responses to requests for information were prepared and sent to the Indian side for consideration - a lot of meetings and conversations. And, unfortunately, the Indian side still has not announced a tender.
"MIC": Worse than the Russian bureaucracy can only be Indian?
- May be. Of course, we do not understand this situation, we would like certainty and clarity in this matter. Moreover, our Indian colleagues are well aware that the Russian side is ready to deliver the submarines for the Indian Navy on time, with proper quality and with the characteristics that will be indicated in the project, in full. Once again we say: the Russian side is very interested in this topic and is waiting for an official invitation from the Indian side to participate in the tender.
Planning to participate in the tender for the supply for the Indian Navy of the series of these submarines, OJSC “USC”, together with the design bureau - OJSC “TsKB MT“ Rubin ”, offers the most modern project -“ Amur-1650 ”, on the basis of which the submarine P will be created -75.
Submarine Amur-1650 is equipped with a powerful and balanced weapon system, including anti-ship missiles and the possibility of their salvo launch. It is capable of solving a new task for non-nuclear submarines - the destruction of ground objects by long-range cruise missiles. JSC TsBB MT Rubin is currently completing tests of a bench sample of a fundamentally new engine for non-nuclear submarines - an air-independent power plant (VNEU), which can be installed on Amur-1650 submarines. Availability VNEU is one of the conditions of the tender of the Government of the Republic of India. A similar program of the VNEU in India could successfully develop together with the Russian design offices.
And the fourth theme is the ships providing rescue and deep-sea diving operations. A huge tragedy has recently occurred in the Indian Navy. We have repeatedly and at all levels expressed our condolences to the Indian sailors. This is a very big trouble. Especially since many of my colleagues personally knew these submariners well, they knew this crew. Our friends died. This is a tragedy that is difficult to explain.
Proceeding from this, the Russian side, as one of the pilot projects, offers various forms of mutually beneficial cooperation in ships providing rescue and deep-sea diving operations. This can be both joint design and licensed construction, and construction in the Russian Federation and the supply of these vessels for the needs of the Indian Navy. We have such ships. With great functionality. Unfortunately, experience shows that the Indian Navy also needs such ships.
Actually, the main projects that we, the Russian side, in particular, United Shipbuilding Corporation OJSC and our enterprises, could offer and are very interested in promoting these products to the Indian market. We hope that these topics are also relevant and interesting for our Indian colleagues. We are ready to cooperate.
"MIC": And one more question that I would like to touch upon is the service and maintenance of the life cycle of ships.
- The development of cooperation in the medium and long term with the Indian customer, USC, is associated with the implementation of a new approach to the formation of a list of offers and services. First of all, this is the creation of joint ventures for servicing the supplied and previously delivered TDC throughout the entire life cycle.
It is not a secret for anyone that the most difficult issue in our relations with Indian partners is the quality assurance of after-sales service, prompt delivery of spare parts, implementation of a set of measures to maintain the required technical readiness of ships. On this issue, the Russian side has many complaints from the Indian Navy.
In order to improve the post-warranty service of previously exported ships, as well as to establish direct relations with Indian partners, it is advisable to consider the possibility of providing USC with the right to carry out foreign trade in the part concerning comprehensive service maintenance of previously supplied naval equipment for the entire range of military products produced and developed by enterprises integrated in the JSC "OSK".
More than 100 shipyards, design bureaus and shipyards have been integrated into USC OJSC. Thus, the corporation has all the necessary resources, production facilities for the repair and modernization of naval equipment, the manufacture of components and spare parts, as well as the scientific and technical potential for training specialists of foreign customers to carry out such work.
In addition, the provision of the right of foreign trade activities will allow USC OJSC:
In my opinion, the proposed new model of Russian-Indian relations in one of the largest shipbuilding corporations, USC, in terms of maintenance of Russian-made ships in service with the Indian Navy, will help strengthen the partnership and strengthen the friendly ties of our countries.
NAMEXPO 2013 Cochin, India
The Russian side at the exhibition discussed with the Indian state and private manufacturers of naval technology concrete steps to enhance cooperation. In particular, one of the promising areas of cooperation is the joint design and production of new ships. “We are working closely with Indian partners in the naval sphere and we expect that the opening of a new specialized salon will be a good platform for demonstrating our potential. Today, India sets ambitious goals to strengthen the national naval forces and Russia as a strategic ally is ready for full cooperation to effectively implement these plans, ”said Rosoboronexport Deputy General Director Viktor Komardin, who led the company’s delegation at the exhibition.
Among the models with high potential in the Indian market are the frigates of the 11356 project, which for a long time have been successfully operated by the Indian Navy, the diesel-electric submarine Amur-1650 and various ship-based weapons systems.
Rosoboronexport also held talks with partners from Southeast Asia, where potential customers show high interest in patrol boats and ships of the 22460 project, frigates "Cheetah 3.9", coastal missile systems "Bastion" and "Bal-E", ship-based anti-aircraft missile systems, artillery systems, as well as anti-ship missiles. In addition, various options for integrated monitoring systems of the coastal zone and their individual elements, in particular, coastal over-the-horizon “Sunflower-E” surface wave radar, have great export potential.
Over more than a 45 summer period of Russian-Indian naval cooperation for India, over 70 warships have been built. At present, Russia is providing assistance in designing and equipping the national development ships being built in India with Russian systems and equipment. Among them are destroyers of projects 15А and 15В, frigates of project 17 and aircraft carrier of project 71. In addition, at the moment, the Sevmash Production Association, which is part of the USC, is completing the tests of the Vikramaditya aircraft carrier.
Rosoboronexport OJSC - a unique Russian state intermediary for the export and import of the entire spectrum of final products, services and technologies for defense and dual use, is part of Rostec Corporation. The holding is one of the leading companies in the global arms market. It accounts for more than 80 percent of exports of Russian weapons and military equipment. The geography of military-technical cooperation of Russia is about 70 countries of the world. Rosoboronexport interacts with more than 700 enterprises and organizations of the military-industrial complex of Russia.
Russian Technologies State Corporation (Rostec) - Russian corporation, established in 2007 year to promote the development, production and export of high-tech industrial products for civil and military purposes. It consists of 663 organizations, of which eight holding companies are currently formed in the military-industrial complex, five - in civilian industries. Rostec organizations are located on the territory of 60 subjects of the Russian Federation and supply products to markets in more than 70 countries of the world. Rostec's revenue in 2012 amounted to 931 billion rubles, net profit - 38,5 billion rubles. Tax deductions to the budgets of all levels exceeded 109 billion rubles.
Tender for submarine project P-75 will be announced at the end of the year
India intends to arm new non-nuclear submarines (NNS) with BrahMos supersonic missiles. In this regard, as the American Weekly Defense News notes, the Indian Ministry of Defense requires that submarines R-75 submitted to an international tender be armed with Russian-Indian BrahMos missiles. The cost of the tender, under which a contract will be signed for six new NNS with an air-independent power plant (VNEU), is estimated at 12 billion dollars. It is planned to announce at the end of this year. In connection with the country's demand for the Ministry of Defense to include conditions for the introduction of new BrahMos missiles into armaments, Western companies will face strong competition from Russian submarine manufacturers. DCNS (France), Navantia (Spain) and HDW (Germany) companies will be among the western participants of the upcoming tender. The Amur-type naval submarines proposed for the tender by the Russian side require minor modifications for the use of BrahMos missiles. On the part of the western bidders, no one commented on the situation on the possibility of deploying Russian-Indian missiles on their submarines. The six new naval submarines that will be procured for the Indian Navy are subject to the limitations of the missile technology control agreement, which limits the proliferation of missiles with a range over 300 kilometers. Missiles "BrahMos" with a range of less than 300 kilometers are manufactured in India and are best suited for new submarines, said the representative of the Ministry of Defense of India. New submarines will have travel speeds in the surface position of 12 nodes and in the submerged position - 19 nodes. They will be able to sail from 50 to 60 days in the surface position and 20 – 30 days in the submerged position at a four-speed travel speed. Two of the six ordered NNS will be manufactured at the company's shipyards - the tender winner, and four boats will be built under license at the national shipyards. After the Indian Navy lost a Russian-built submarine Sindhurakshak, the number of naval submarines in the fleet was reduced to 11 units. Next year it is planned to withdraw from service the obsolete NNSs built by the German company HDW, and therefore the number of groups of Indian non-nuclear submarines will be reduced to seven units by the year 2015. For India, such a number of submarines is considered unacceptable, since the Chinese Navy has more than 60 naval submarines.