Indian Defense
TATA Sons Wins The Bid For Acquiring National Carrier Air India For Rs 180 Billion
DIPAM Secretary Tuhin Kanta Pandey said: “Over 200 queries asked seeking clarifications, revisions to share purchase agreement”
The Indian government announced on Friday that TATA Sons has been chosen as the winning bidder to take over state-run carrier Air India, bringing an end to years of negotiations to privatise the financially ailing airline.
TATA Sons, the holding company for the autos-to-steel TATA conglomerate, bid Rs 180 billion ($2.40 billion) for the government’s 100% stake in Air India, a finance ministry official told reporters.
On October 4, a panel of ministers led by Home Minister Amit Shah authorised the bid, according to Pandey.
Financial proposals submitted by the salt-to-software conglomerate and SpiceJet promoter Ajay Singh were opened a few days ago and evaluated by the Cabinet Secretary-led Core Group of Secretaries on Disinvestment.
The offers were compared to the reserve price, and TATAs was the top bidder.
In the opening remarks and presentation by DIPAM, Tuhin Kanta Pandey said: “The FM had said in her Budget speech that the Govt of India aims to complete the Air India divestment in FY22. The competitive process has been carried out in a transparent manner.”
He added: “Bidders had to quote min 15% of enterprise value for cash consideration. Bidders were to quote max 85% of quoted enterprise value for retained debt.”
Key Takeaways From The Air India-TATA Agreement
TATA Sons’ winning bid of Rs 180 billion ($2.4 billion) for Air India was more than the federal government’s reserve price of Rs 129 billion, DIPAM Secretary said, adding that the Centre will get Rs 27 billion in cash from TATAs for the sale of its whole share.
Notably, TATAs’ winning proposal of Rs 180 billion includes taking over Rs 153 billion in debt and paying the remainder in cash, according to DIPAM Secretary. The central government has imposed constraints on TATA.TATAs, according to the DIPAM Secretary, are not permitted to transfer the Air India trademark and logo for a period of five years. After five years, they may only be transferred to Indians.
TATAs will have to retain all the staff of Air India for one year. However, the group can subsequently offer a voluntary retirement scheme (VRS) in the second year, the Aviation Secretary was quoted as saying by PTI.
TATA Group-Air India Relationship
The link between the TATA Group and Air India dates back to 1932, when famous businessman and India’s first commercially certified pilot JRD TATA founded the national airline. The original service provided a weekly airmail service from Karachi to Madras via Ahmedabad and Bombay.
The airline quickly grew to include passenger planes, and in 1938 it began international flights.
With the addition of Columbo to its list of destinations, the airline’s name was changed to TATA Air Services, and then to TATA Airlines.
During World War II, the famous airlines performed support flights for the British Royal Air Force in Burma.
After the war, the airline changed its name to the now-iconic Air India.
The Union government then became interested in Air India and purchased a 49 percent share in it.
Soon after, the government seized control of the airline from TATA Sons and nationalised it under the Air Corporations Act in 1953.
Indian Defense
INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’
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.
Indian Defense
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.
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.
Indian Defense
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).
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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