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Air India Divestment: What Is In It For TATAs?

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Air India Divestment: What Is In It For TATAs?

The conglomerate to get 141 aircraft, 8 brand logos, lucrative routes

New Delhi: Tata Sons’ subsidiary Talace which emerged as the highest bidder for national carrier Air India will among other assets such as human resources get more 140 aircraft as well as 8 logos. Accordingly, Talace quoted an enterprise value of Rs 180 billion for 100 per cent equity shareholding of Centre in Air India along with that of Air India Express and AISATS.

Consequent to the acquisition, the TATAs will own 100 per cent stake in Air India as also 100 per cent in its subsidiary Air India Express and 50 per cent in the joint venture Air India SATS.

Notably, after the transaction, Tata Sons will have two full service carriers — Vistara and Air India — along with two low cost airlines — Air India Express and Air Asia India — and a ground and cargo handling company AISATS.

In terms of fleet, TATAs will get Air India’s 117 wide-body and narrow body aircrafts and Air India Express’s 24.

A significant number of these aircrafts are owned by Air India.

A Large Network

It will also get to operate these aircraft on over 4,000 domestic and 1,800 international routes.

“Air India provides a unique and attractive international footprint. More than 2/3rd of Air India’s consolidated revenues comes from international market,” Tata Group said.

“It is the number one player from India in the international market having a strong footprint across geographies like North America, Europe and Middle East with attractive slots and bilateral rights.”

Air India’s frequent flyer programme has more than three million members.

Besides, the conglomerate will get a total talent pool of Air India and Air India Express which stands at 13,500 including both permanent and contractual employees. Furthermore, eight brand logos would be transferable to the TATAs which they have to retail for a period of five years.

Financials And Non-Core Assets

TATAs will need to take care of the Rs 200 million loss per day that the company suffers.

In addition, there is a three-year business continuity clause in the agreement. Nonetheless, TATAs will be given full operational control of the divested entities.

On the other hand, the transaction does not include non-core assets including land and building, valued at Rs 147 billion, which are to be transferred to GoI’s Air India Asset Holding Limited (AIAHL).

According to N. Chandrasekaran, Chairman, Tata Sons: “At the Tata group, we are delighted to be declared as the winner of the bid for Air India. This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline.”

“It will be our endeavour to build a world-class airline which makes every Indian proud. On this occasion, I would like to pay tribute to J.R.D. Tata, pioneer of Indian aviation, whose memory we cherish.”

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’


NEW DELHI: India tested its nuclear capable K-4 submarine-launched ballistic missile (SLBM), designed to have a strike range of 3,500 km, for the second time in six days on Friday. The missile test, as the one conducted on January 19, was undertaken from an undersea platform in the shape of a submersible pontoon off the coast of Andhra Pradesh according to a report by Rajat Pandit of TOI.

The solid-fuelled K-4 missile is being developed by DRDO to arm the country’s nuclear-powered submarines in the shape of INS Arihant and its under-development sister vessels. INS Arihant, which became fully operational in November 2018 to complete India’s nuclear triad, is currently armed with the much shorter K-15 missiles with a 750 km range.

“The K-4 is now virtually ready for its serial production to kick-off. The two tests have demonstrated its capability to emerge straight from underwater and undertake its parabolic trajectory,” said a source.

India has the land-based Agni missiles, with the over 5,000-km Agni-V inter-continental ballistic missile now in the process of being inducted, and fighter jets jury-rigged to deliver nuclear weapons. But INS Arihant gives the country’s deterrence posture much more credibility because nuclear-powered submarines armed with nuclear-tipped missiles are considered the most secure, survivable and potent platforms for retaliatory strikes.

Once the K-4 missiles are inducted, they will help India narrow the gap with countries like the US, Russia and China, which have over 5,000-km range SLBMs. The K-4 missiles are to be followed by the K-5 and K-6 missiles in the 5,000-6,000 km range class.

The 6,000-ton INS Arihant, which is propelled by an 83 MW pressurised light-water reactor at its core, in turn, is to be followed by INS Arighat, which was launched in 2017. The next generation of nuclear submarines, currently called S-4 and S-4*, will be much larger in size.





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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%

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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%


India has received clearance to upgrade 84 Sukhoi Su-30MKI fighter jets, which will result in 78% indigenization after the upgrade

In a significant step towards bolstering its military might with indigenously developed technology, India is poised to witness its Russian-origin Sukhoi Su-30MKI fighter jets evolve into a domestic platform. Speaking at a recent lecture.

The upgrade program is being led by Hindustan Aeronautics Limited (HAL) in partnership with the Indian Air Force and other partners. The upgrade is expected to cost US$7.5 billion.

The Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) for the upgrade. The upgrade is part of India’s efforts to improve the capabilities of its primary fighter aircraft, it refers to as the “Super Sukhoi”.

This initiative is a part of a larger effort by the Indian Air Force to modernize its ageing fleet. Air Chief Marshal Chaudhari asserted the critical role of an offensive air force as demonstrated in current global conflicts and emphasized India’s move towards an indigenized arsenal. To this end, the IAF has been proactive, from upgrading its Mirage 2000 to enhancing its MiG-29 fleet.

In summary, the IAF’s commitment to updating their combat forces with the latest technology, including shifting to fifth-generation fighter jets, ensures operational preparedness and a strong deterrence capability. The gradual indigenization of its air fleet marks a pivotal shift in India’s defence landscape, reducing dependency on foreign imports and fostering technological sovereignty.





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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace

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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace


According to unconfirmed reports, Armenia is a top contender for an export order for Akash SAM system manufactured by Bharat Dynamics Limited (BDL).

While there is no official confirmation because of the sensitivities involved, documents suggest that the order for the same has already been placed the report further added.
There are nine countries, in turn, which have shown interest in the indigenously-developed Akash missile systems, which can intercept hostile aircraft, helicopters, drones and subsonic cruise missiles at a range of 25-km. They are Kenya, Philippines, Indonesia, UAE, Bahrain, Saudi Arabia, Egypt, Vietnam and Algeria reported TOI.

The Akash export version will also be slightly different from the one inducted by the armed forces. The 100-km range air-to-air Astra missiles, now entering production after successful trials from Sukhoi-30MKI fighters, also have “good export potential”, said sources.

Akash is a “tried, tested and successfully inducted systems”. Indian armed forces have ordered Akash systems worth Rs 24,000 crore over the years, and MoD inked a contract in Mar 2023 of over Rs 9,100 crores for improved Akash Weapon System

BDL is a government enterprise under the Ministry of Defence that was established in 1970. BDL manufactures surface-to-air missiles and delivers them to the Indian Army. BDL also offers its products for export.

Akash Weapon System

The AWS is a Short Range Surface to Air Missile (SRSAM) Air Defence System, indigenously designed and developed by Defence Research and Development Organisation (DRDO). In order to meet aerial threats, two additional Regiments of AWS with Upgradation are being procured for Indian Army for the Northern borders. Improved AWS has Seeker Technology, Reduced Foot Print, 360° Engagement Capability and improved environmental parameters.

The project will give a boost to the Indian missile manufacturing industry in particular and the indigenous defence manufacturing ecosystem as a whole. The project has overall indigenous content of 82% which will be increased to 93% by 2026-27.

The induction of the improved AWS into the Indian Army will increase India’s self-reliance in Short Range Missile capability. This project will play a role in boosting the overall economy by avoiding outgo of precious foreign exchange to other countries, increasing employment avenues in India and encouraging Indian MSMEs through components manufacturing. Around 60% of the project cost will be awarded to the private industry, including MSMEs, in maintaining the supply chain of the weapon system, thereby creating large scale of direct and indirect employment.





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