Friday, June 27, 2008
India clinches first foreign deal with Ecuador to sell Dhruv
India, France to float joint venture to make SAMs
Field Marshal Sam Manekshaw passes away
WELLINGTON (TN): Former Army Chief Field Marshal Sam Manekshaw passed away at Military Hospital in Wellington, the Defence Ministry said on Friday. ( Watch ) The Padma Vibhushan and Military Cross awardee, who was admitted in the hospital for some time for "progressive lung disease", had slipped into a coma earlier in the day and the end came just after midnight at 00:30 am, the Defence Ministry said in a statement. Manekshaw, who had led India to victory in the 1971 Indo-Pak war, had developed "acute broncho pneumonia" with associated complications and his condition had been serious for the past four days. Manekshaw assumed charge of the Indian Army, as the 8th Chief of Army Staff, on June 07, 1969. Born in Amritsar, Punjab in April 1914, he completed his schooling in Amritsar and Sherwood College, Nainital. He then joined the first batch of 40 cadets at Indian Military Academy (IMA), Dehra Dun on 01 October 1932. He passed out of the IMA in December 1934 and was commissioned as a Second Lieutenant in the Indian Army. He held several regimental assignments and was first attached to the Royal Scouts and later to the 12 Frontier Force Rifles. Manekshaw succeeded General Kumaramangalam as Chief of Army Staff (COAS) in June 1969. For his selfless service to the nation, he was awarded the Padma Vibhushan in 1972 and was conferred with the honorary rank of Field Marshal in January 1973. He retired a fortnight later on 15 January 1973, after completing nearly four decades of military service.
HAL secures copter order from Peru
google_ad_client = 'businessstandard';
//google_ad_client = 'ca-businessstandard_js';
google_ad_width = 200;
google_ad_height = 200;
google_ad_format = "200x200_as";
google_ad_type = "text";
google_ad_channel = "";
//google_color_border = "FFFFFF";
google_color_border = "F7F7F7";
//google_color_bg = "FFFFFF";
google_color_bg = "ffffff";
//google_color_link = "639ACE";
google_color_link = "0253B7";
google_color_text = "000000";
google_color_url = "D63431";
//google_skip = adsenseSkip;
The orders for the 5.5-tonne class (dry weight 3.3 tonne) ALH, christened Dhruv, are for two heli-ambulances to be used by the country's health services.
This is the first international civilian contract bagged by the PSU.
According to sources, the craft has been priced around Rs 40 crore apiece, 10-15 per cent lower than similar machines in its class.
The interiors of the ALH ambulances to be delivered to Peru will be done up in Europe. HAL is in talks with a few firms specialising in interiors and other accessories typically required by heli-ambulances.
"The reason for interiors being done in Europe is that there are no firms in India specialising in heli-ambulance interiors," an HAL source added.
Earlier, supply and service contracts with the Myanmarese and Chilean governments fell through either because of political pressure or competitor's lobbying.
The contract with the Nepal Air Force is said to have run into rough weather when "technical problems" were detected in one of the two ALHs sold to the country in 2004.
HAL sources said that ALH had impressed the Chileans with its manoeuvering ability and user-friendly avionics.
"HAL even flew down four aircraft to Chile and put them through paces. The successful trials prompted the Chilean government to consider the possibility of buying a few choppers. Pressure from government quarters in the US , however, forced Chile to cancel the order and root for Canadian Bell Helicopter's Bell 412, despite the price advantage offered by HAL," the source added.
An undeterred HAL targeted other countries in South America buoyed by its clear price edge over Bell and Eurocopter. HAL displayed the chopper at international aero shows in Singapore, Paris, Dubai, and Farnborough (UK).
The effort is now translating into customer enquiries. HAL has over the past year received enquiries from the national air forces of 35 different countries for the ALH, coupled with requests for demonstrations, according to industry sources. More contracts are clearly within reach for a chopper which made a lacklustre debut in the autumn of 1992, and later, laid low by US sanctions in 1998.
ALH comes in different configurations "but the copter can be adapted to any role and hence should have a good market," according to Ratan Shrivastava, director of Frost & Sullivan's Aerospace & Defence practice (South Asia and West Asia).
Many of the prospective customers who evinced interest in the indigenously developed all-terrain chopper are air forces from Latin America, Africa, West Asia, South East Asia and a few Pacific Rim nations.
While HAL has gone about developing the chopper with customary self-effacement, ALH has not been short of publicity after series production started in 2002. The first lot of variants of the chopper were delivered to the three Indian defence services and the Coast Guard in March that year.
By December, the Army is set to take delivery of the weapon-fitted version of ALH. Over 75 helicopters were delivered to the Army by end-2007, while 10 more operate in the civilian space. HAL plans to produce a maximum of 23 units annually.
Heli-ambulances have attracted interest in the domestic market too, according to Wing Commander C D Upadhyaya, chief test pilot with HAL's rotary wing. Though, the cost of operating the chopper has been a deterrent to purchase plans taking off. "Every time, we are stuck with the same question – who will pay for it? But, now there appears to be some discussions on the issue with a few insurance firms."
Industry experts note that overall the helicopter is still priced a few crores at the higher side. Besides, ALH critics feel that the machine is yet to create a turbulence in the global markets by way of high conversion rate (customer enquiries translating into actual sales).
Saturday, June 21, 2008
China army intrudes into Sikkim, retreats in 1 hr
New Delhi: In yet another incident of Chinese transgressions into Indian territory, the People's Liberation Army (PLA) personnel entered up to a kilometre of Indian territory in Sikkim and returned to their territory after spending some time there.
The transgression took place recently in the Finger Area, which came to limelight in the wake of Chinese claims over the 2.1 sq km of land in north Sikkim, sources said on Wednesday.
The recent move of the PLA seems like an effort on the Chinese part to assert their claims over the area.
Seeking to downplay the incident, Indian Army sources said these transgressions were "a routine affair" in which the PLA personnel violate India's perception of the 4,057-km long Line of Actual Control (LAC) with China.
The PLA men drove light motor vehicles and later returned to Chinese territory, sources said.
Though it was believed until recently that the Chinese have reconciled to the idea of Sikkim being a part of India, there have been at least 65 incidents of transgressions reported in the last six months by PLA personnel into the Finger Area of the State, sources said.
Also, there have been reports of over 150 transgressions by the PLA across the LAC last year.
During the recent visit of India's External Affairs Minister Pranab Mukherjee to Beijing, the Chinese reportedly stunned him by raising the issue of Finger Area.
However, Defence Minister A K Antony and the Indian Army establishment have been repeatedly downplaying the transgressions as "misconception over the LAC" on the part of China.
"Just as the Chinese keep transgressing into the Indian territory as per their perception of LAC, Indian Army too keeps patrolling the areas under its control along the LAC," Antony had said recently.
Though ITBP claimed that the present transgression took place in an area that was not under their control, officials said they were not in a position to confirm or deny the incident.
Sunday, June 15, 2008
Army to train officers for US-style war in space
5th generation fighter aircraft will fly in march next: Adviser
Testing times for troops on Line of Control
On the night of May 9, a large group of jihadist infiltrators had cut their way through the barbed wire and concertina rolls that make up the fence, near the town of Samba. The wiring had been slashed at least 30 places.
Officers listened with disbelief, as soldiers stationed at an observation post just 200 metres away insisted they had seen and heard nothing. But all this summer, similar events have been playing themselves out all along the Line of Control.
In 2003, when a ceasefire went into place in Jammu and Kashmir, India used the opportunity to build a three-layer fence along the troubled border with Pakistan. Work was completed on some 720 kilometres of the LoC and on the 197 kilometre border in Jammu.
Even as work on the fence ploughed ahead, infiltration dropped year on year, and violence levels fell drastically across Jammu and Kashmir.
But now a fresh wave of infiltration, executed using increasingly sophisticated techniques and tactics, is testing India’s counter-infiltration posture once again.
Ever since January, as first reported in The Hindu on Friday, at least half a dozen skirmishes have taken place along the LOC.
In most cases, the fighting has been provoked by jihadist groups located alongside Pakistan Army positions just before attempting to cross the LoC.
Equipped with global positioning satellite navigation systems to locate their final destinations, infiltrators have been able to do away with their traditional dependence on the guides and traffickers who often betrayed cross-LoC movements to Indian forces. Infiltrators are also equipped with encrypted satellite-phone systems and sophisticated fence-cutting equipment.
Firing, officers serving in the region say, has most often taken place in an effort to distract Indian forward positions.
Such incidents are not altogether new. In January, 2007, for example, Border Security Force troops at Matkula, near Jammu, came under attack from jihadists from across the LoC. However, the intensity of this year’s clashes and their frequency has been worrying.
Unlike Jammu, northern Kashmir has seen no skirmishes on the LoC, bar one incident last month in Tangdhar.
However, large-scale infiltration has taken place there too, in a build-up Indian intelligence analysts believe is directed at hitting election campaigning later this year.
Between March and May, intelligence officials believe, at least 16 infiltrating groups, altogether between 100 and 120 terrorists, crossed the LoC along the Keran-Karnah-Gurez arc. Most made the crossing in March and April, when snow damage to the fencing along the LoC was yet to be repaired. Just eight of the infiltrating groups were interdicted by Indian border patrols.
Crossing the fence is difficult but far from impossible. In northern Kashmir and parts of Poonch, altitude and terrain make secure, year-round fencing more fantasy than fact. Infiltrators use mountain gullies and ravines where fences cannot be laid, and monitor patrol movements, to pick the best time to cross.
But even in Jammu, where favourable terrain has allowed India to run twin layers of two-metre high barbed wire and rolls of concertina wire along a concrete foundation, the fence can be penetrated and often is.
Each Border Security Force company made up of 120 men is meant to guard a stretch of approximately 5 km. On average, half a company’s strength is on leave, tied up in training, or committed to non-combatant duties. That means between 50 and 60 men must take turns through eight-hour stretches. No small ask.
Moreover, the peace along the LoC has also led to some lowering of guard. Anti-tank ditches in the Jammu sector have been dry for over a year and a half now, depriving India of a second layer of counter-infiltration defences.Strategic context
Conventional wisdom has it that Pakistan needs the LoC ceasefire to hold more than India, since its northern army reserve is denuded by Islamabad’s own internal wars in the North West Frontier Province.
But some experts fear the Pakistan Army is preparing to address just that weakness, though its efforts to negotiate an end to its feud with the jihadists. Earlier this month, the eminent Pakistani journalist Ahmad Rashid reported that General Kiyani had decided not to retrain or re-equip troops to fight the counter-insurgency war the Americans are demanding on Pakistan’s mountainous western border. Instead, Mr. Rashid wrote, the bulk of the Army will remain deployed on Pakistan’s eastern border and prepare for possible conflicts with traditional enemy, India.
Should Pakistan scale back the counter-terrorism campaign in its north-west, Pakistan’s severely-depleted Northern Army reserve would revive.
Pakistan’s Army could take a more aggressive posture along the LoC, confident that it could hold its own against punitive Indian actions.
'Fifth generation fighter aircraft in 2009'
Saturday, June 14, 2008
With no Carrier for MiG29s, Navy to build a mock-up
Navy plans to ditch Dhruv helicopters
A senior navy official told HT, “The ALH has a long way to go before the programme matures sufficiently for it to undertake basic naval roles such as search and rescue (SAR) and communication duties.” He said the helicopter’s ASW (anti-submarine warfare) version developed by HAL still falls short of naval expectations.
Navy officials said that the ALH lacks the desired endurance for mission requirements. The navy is also not satisfied with the chopper’s rotor blade folding mechanism for storage on warships and its payload capacity. The navy has launched a global hunt for new ASW helicopters to replace its ageing fleet of Sea King helicopters.
However, HAL remains buoyant about domestic helicopter sale prospects with the defence ministry entrusting it with the task of developing light utility helicopters for the army and the air force. The ministry has allocated Rs 435 crore for this. The defence public sector undertaking is focusing aggressively on the helicopter business and plans to set up a new helicopter division in Bangalore.
Thursday, June 12, 2008
India sets up cell to protect space-based assets
The space cell, under the aegis of the Integrated Defence services headquarters is to act as a single window between armed forces, Department of Space and Indian Space Research Organisation (ISRO) to work out measures to protect India's space-based assets.
Announcing its setting up at the unified Commanders Conference here, Defence Minister A K Antony said while India remains committed to non-weaponisation of space, emergence of offensive counter space systems and anti-satellite weaponry posed new threats which had to be countered.
Antony said new threats to space-assets were also emerging from building of new class of heavy lift and small boosters and improved array of military space systems in the country's neighbourhood.
The minister's announcements comes in the wake of India recently putting into orbit a number of specialised satellites including the nations first ever dedicated military satellite this year.
In months to come, ISRO has a busy schedule with plans to launch even more sophisticated satellites.
During the two-day conference, top armed forces commanders are discussing plans to utilise satellite imagery to boost security and intelligence.
The new dedicated military satellite launched recently will give Indian security experts a wider eye to keep a tab on areas surrounding the borders, as well as the seas and plans are already afoot to make these satellites linked to Army,
Navy and Air Force's network centric warfare capabilities now under development. Satellite imagery has recently assumed importance in the wake of unearthing of China's secret underground nuclear submarine pens, as well as its new range of such underwater vessels.
This is the first time that Indian defence commanders reviewed in depth the security implications of the build up of Chinese nuclear submarine fleet.
Presided over by Chairman, Chiefs of Staff Committee, Admiral Sureesh Mehta and attended by Army and Air Force chiefs and commanders from the strategic forces command and the Andaman Nicobar tri-service Command, the conference will also review the country's nuclear preparedness.
Along with space cell, Antony also announced setting up of Defence Informatics Centre (DIC) on the pattern of the National Informatics Centre.
DIC will cater to e-governance of the armed forces, the defence ministry and other associated organisations, the minister said.
Govt hints at doubling defence expenditure
Russia starts building new missile frigate for Indian Navy
IAF’s Sarang Helicopter Display Team Adjudged ‘The Best’ at Berlin Air Show
Tuesday, June 10, 2008
Pakistan agents 'helping Taleban'
A leading US think-tank has accused members of Pakistan's intelligence service, the ISI, of aiding Taleban fighters in neighbouring Afghanistan.
In a new report, funded by the Pentagon, the Rand Corporation said individual Pakistani agents had provided intelligence to insurgents.
Pakistan has always denied such allegations in the past.
The Rand report says Pakistani sources tipped off the Taleban about the movement of Afghan and foreign forces.
This had undermined several American and Nato operations, the report said.
The Rand report also said that some of the ISI staff gave the Taleban financial help and organised medical care for wounded militants.
Last month, Nato criticised negotiations between Pakistan's new government and the Taleban, saying cross-border attacks in Afghanistan were on the rise.
Pakistan's army has swapped prisoners with the Taleban and cut troop numbers in a tribal area near Afghanistan, stirring growing alarm in the West.
Nato and the US say such deals have led to "safe havens" for the Taleban and al-Qaeda along the border.
Monday, June 9, 2008
India to launch Light Combat Aircraft Tejas by 2010
"All aircraft systems, specifically the avionics system, flight control system and air conditioning system of Tejas were tested extensively during the trials and functioned satisfactorily on ground as well in flight," the source said, adding, a total of seven flights of four hours duration were flown at Nagpur on two prototype aircraft PV2 and PV3. The tests included flights at 200 meters above the ground with a speed up to 1000 km per hour.
"It was the first time that the Tejas flew a non-stop distance of about 1, 000 km from Southern Indian city of Bangalore to Nagpur. This was possible due to the presence of external fuel tanks on the aircraft which were integrated recently. This was also the first time that the Tejas aircraft had been flown at such high ambient temperature conditions. A first look at the test data indicated that all the trial objectives were met satisfactorily," the source informed. The successful completion of the trial marked a significant step towards attainment of all important initials operational clearance and subsequent induction into the squadron service with the IAF. Tejas is now planned for delivering precision guided bombs in the deserts of Western Indian state of Rajasthan, later this year.
Indian Navy to seek global bids for upgrading choppers
'We will soon be issuing the RFPs (Request for Proposals) for the mid-life upgrade of the Sea King and Kamov-28 helicopters,' the official said.
'The refurbishment will involve replacing the engine, the avionics, the mission computer, the radar system and missiles,' the official added.
The navy operates 14 Sea King and 12 Kamov anti-submarine helicopters. In addition, the Sea Kings are also used for reconnaissance, search and rescue operations, and for ferrying personnel and supplies.
The Indian Navy bought the Sea Kings from Britain's Westland Helicopters in the late 1980s but found it difficult to operate them in the wake of the sanctions imposed by the US after the Pokhran-II nuclear tests in 1998 as these prevented the sourcing of original parts from the manufacturer.
The Indian Navy then attempted to obtain from local industry components for gearboxes, rotor systems, sonar systems and electronics items for avionics. However, these fell short of reliability requirements and led to some limitations in the machine's anti-submarine warfare operations.
While this problem did not exist in the case of the Russian-origin Kamovs, these machines are also due for a mid-life upgrade
India's Sensex slumps on oil fear
Bombay's Sensex index closed 506.08 points down at 15,066.10, having earlier fallen 4.4% and slipped below 15,000 for the first time since March.
Other Asian indexes, including Japan's, South Korea's and Taiwan's, also fell.
Oil prices have surged to record levels, fanning fears that they will keep climbing and hurt world growth.
Central banks across the globe have warned that interest rates may have to rise as they look to keep inflation under control, despite the fact that economic growth is slowing in key nations such as the US and UK.
Indian traders now fear that any increase in interest rates could crimp demand and hasten a slowdown in corporate earnings growth.
"We are one of the weakest markets in emerging markets and any weakness in global markets will be just used as another excuse to hammer our market down," said independent analyst, Deepak Singh.
In May, Indian inflation stood at 8.2%.
'Heavy pounding'
Crude oil prices surged at the end of last week, with New York light, sweet crude putting in its biggest ever daily jump of $11 on Friday.
On Monday, oil prices slid slightly, though this did little to ease concerns.
Reliance Industries, one of India's biggest firms, was one of the main losers in Bombay, as was Infosys Technologies.
Software firms, which derive more than half their revenue from the US, were also buffeted on signs the US is headed for stagflation - simultaneous high inflation and recessionary conditions.
Some Indian traders now fear that many foreign institutional investors, faced with increased problems at home and an unwillingness to take on extra risks, will sell their emerging market holdings and leave the market.
According to official figures, foreign funds have sold shares worth $879m (£445m) in the four days to Thursday, taking total outflow in 2008 to $4.8bn.
Mr Singh said the figures showed that foreign investors were "queuing up to exit" the Indian market.
Other countries also saw their shares slump, and Japan's main Nikkei 225 index slid 2.1% and Taiwan's Taiex lost 1.8%.
"Asian markets are certainly in for a heavy pounding over the next few weeks," said independent economist Andy Xie.
Saturday, June 7, 2008
India, China jostle for influence in Indian Ocean
HAMBANTOTA, Sri Lanka - This battered harbor town on Sri Lanka's southern tip, with its scrawny men selling even scrawnier fish, seems an unlikely focus for an emerging international competition over energy supply routes that fuel much of the global economy.
But just over the horizon runs one of the world's great trade arteries, the shipping lanes where thousands of vessels carry oil from the Middle East and raw materials to Asia, returning with television sets, toys and sneakers for European consumers.
These tankers provide 80 percent of China's oil and 65 percent of India's — fuel desperately needed for the two countries' rapidly growing economies. Japan, too, is almost totally dependent on energy supplies shipped through the Indian Ocean.
Any disruption — from terrorism, piracy, natural disaster or war — could have devastating effects on these countries and, in an increasingly interdependent world, send ripples across the globe. When an unidentified ship attacked a Japanese oil tanker traveling through the Indian Ocean from South Korea to Saudi Arabia in April, the news sent oil prices to record highs.
For decades the world relied on the powerful U.S. Navy to protect this vital sea lane. But as India and China gain economic heft, they are moving to expand their control of the waterway, sparking a new — and potentially dangerous — rivalry between Asia's emerging giants.
China has given massive aid to Indian Ocean nations, signing friendship pacts, building ports in Pakistan and Bangladesh as well as Sri Lanka, and reportedly setting up a listening post on one of Myanmar's islands near the strategic Strait of Malacca.
Now, India is trying to parry China's moves. It beat out China for a port project in Myanmar. And, flush with cash from its expanding economy, India is beefing up its military, with the expansion seemingly aimed at China. Washington and, to a lesser extent, Tokyo are encouraging India's role as a counterweight to growing Chinese power.
Among China's latest moves is the billion dollar port its engineers are building in Sri Lanka, an island country just off India's southern coast.
The Chinese insist the Hambantota port is a purely commercial move, and by all appearances, it is. But some in India see ominous designs behind the project, while others in countries surrounding India like the idea. A 2004 Pentagon report called Beijing's effort to expand its presence in the region China's "string of pearls."
No one wants war, and relations between the two nations are now at their closest since a brief 1962 border war in which China quickly routed Indian forces. Last year, trade between India and China grew to $37 billion and their two armies conducted their first-ever joint military exercise.
Still, the Indians worry about China's growing influence.
"Each pearl in the string is a link in a chain of the Chinese maritime presence," India's navy chief, Adm. Sureesh Mehta, said in a speech in January, expressing concern that naval forces operating out of ports established by the Chinese could "take control over the world energy jugular."
"It is a pincer movement," said Rahul Bedi, a South Asia analyst with London-based Jane's Defense Weekly. "That, together with the slap India got in 1962, keeps them awake at night."
B. Raman, a hawkish, retired Indian intelligence official, expressed the fears of some Indians over the Chinese-built ports, saying he believes they'll be used as naval bases to control the area.
"We cannot take them at face value. We cannot assume their intentions are benign," said Raman.
But Zhao Gancheng, a South Asia expert at the Chinese government-backed Shanghai Institute for International Studies, says ports like Hambantota are strictly commercial ventures. And Sri Lanka says the new port will be a windfall for its impoverished southern region.
With Sri Lanka's proximity to the shipping lane already making it a hub for transshipping containers between Europe and Asia, the new port will boost the country's annual cargo handling capacity from 6 million containers to some 23 million, said Priyath Wickrama, deputy director of the Sri Lankan Ports Authority.
Wickrama said a new facility was needed since the main port in the capital Colombo has no room to expand and Trincomalee port in the Northeast is caught in the middle of Sri Lanka's civil war. Hambantota also will have factories onsite producing cement and fertilizer for export, he said.
Meanwhile, India is clearly gearing its military expansion toward China rather than its longtime foe, and India has set up listening stations in Mozambique and Madagascar, in part to monitor Chinese movements, Bedi noted. It also has an air base in Kazakhstan and a space monitoring post in Mongolia — both China's neighbors.
India has announced plans to have a fleet of aircraft carriers and nuclear submarines at sea in the next decade and recently tested nuclear-capable missiles that put China's major cities well in range. It is also reopening air force bases near the Chinese border.
Encouraging India's role as a counter to China, the U.S. has stepped up exercises with the Indian navy and last year sold it an American warship for the first time, the 17,000-ton amphibious transport dock USS Trenton. American defense contractors — shut out from the lucrative Indian market during the long Cold War — have been offering India's military everything from advanced fighter jets to anti-ship missiles.
"It is in our interest to develop this relationship," U.S. Defense Secretary Robert Gates said during a visit to New Delhi in February. "Just as it is in the Indians' interest."
Officially, China says it's not worried about India's military buildup or its closer ties with the U.S. However, foreign analysts believe China is deeply concerned by the possibility of a U.S.-Indian military alliance.
Ian Storey of the Institute of Southeast Asian Studies in Singapore said China sent strong diplomatic messages expressing opposition to a massive naval exercise India held last year with the U.S., Japan, Singapore and Australia. And Bedi, the Jane's analyst, added "those exercises rattled the Chinese."
India's 2007 defense budget was about $21.7 billion, up 7.8 percent from 2006. China said its 2008 military budget would jump 17.6 percent to some $59 billion, following a similar increase last year. The U.S. estimates China's actual defense spending may be much higher.
Like India, China is focusing heavily on its navy, building an increasingly sophisticated submarine fleet that could eventually be one of the world's largest.
While analysts believe China's military buildup is mostly focused on preventing U.S. intervention in any conflict with Taiwan, India is still likely to persist in efforts to catch up as China expands its influence in what is essentially India's backyard. Meanwhile, Sri Lankans — who have looked warily for centuries at vast India to the north — welcome the Chinese investment in their country.
"Our lives are going to change," said 62-year-old Jayasena Senanayake, who has seen business grow at his roadside food stall since construction began on the nearby port. "What China is doing for us is very good."
Tuesday, June 3, 2008
Amid economic slowdown, signs of new world order
Countries such as China and India are now big enough to help guide the global economy. In the past, a sharp downshift in the US and Europe would decisively slow the rate of global growth.
This time, emerging markets appear poised to grow collectively by 6.7 percent this year, according to recent forecasts by the International Monetary Fund. As a result, the IMF sees world gross domestic product (GDP) growing 3.7 percent, even though the US might experience a recession.
The US economy remains the world's mightiest. But even for Americans, this new economic order has immediate implications:
•Policymakers at the Federal Reserve must worry about upward price pressures for food and fuel – driven largely by rising demand in developing nations. That problem calls for tighter monetary policy, while the domestic consumer slump calls for the opposite policy.
•Demand for US exports from these new markets is providing a helpful cushion for growth, yet trade tensions could be an issue in the US presidential election.
•Money from emerging markets is playing an increasingly important role in the US financial system.
"We have a new pecking order in the world economy in terms of influence on global growth and economic power," says Michael Cosgrove, an economist in Dallas. "[Historically] we would see oil prices fall with a slowdown in the US and Europe…. That no longer holds."
The dynamism of the "BRIC" bloc – Brazil, Russia, India, and China – is not new, but their stunningly rapid rise in this past decade is now being tested in the laboratory of tough times.
For consumers and workers worldwide, what's playing out is a tug of war between two opposing problems.
First is the weakness in the US and some other advanced nations as a housing slump and related credit squeeze hits households. That's dragging GDP growth down on all continents.
Second is inflation, a symptom of the strength of emerging nations. Their demand for commodities explains much of the surge in fuel and food prices worldwide. It's this problem that is, at present, taking center stage as a global worry.
"The good news here is that the standard of living for a lot of people is improving," says Mr. Cosgrove, publisher of the EconoClast newsletter. But for now, "the bad news is that it pushes up prices."
What's changed in the world economy is not just the rate of growth of countries labeled developing or emerging. It's also the size of their economic output.
"What's different this time is that the emerging market economies have been growing so rapidly that they've emerged," says Ed Yardeni, an economic forecaster at Yardeni Research in Great Neck, N.Y. "They've become very large."
More....
Torpedo all set for user trial
“We are developing two types of torpedoes. The lightweight anti-submarine torpedo is currently under production. The heavyweight Varunastra requires more user trials before it can be inducted into the Navy. It will undergo extensive trials by the end of this year and will be ready for production in 2009,” a senior NSTL official, who was visiting DRDO facilities in Orissa, told the Hindustan Times. A torpedo, on entering water, performs pre-programmed search patterns, detects and homes in on targets and explodes on impact to destroy/damage them.
A heavyweight torpedo like the Varunastra is fired from a submarine or ship. “This torpedo is wire-guided. In other words, the guidance wire acts as a medium for communication of data between the torpedo and the firing platform (ship or submarine). The wire is also a medium to communicate data to guide the torpedo towards the target during the underwater run,” the NSTL official said. “DRDO has developed guidance wire spools for wire-guided torpedoes like Varunastra. This system has undergone sea trials and performed satisfactorily. DRDO has also developed an onboard instrumentation system for torpedoes.”
The official added that the instrumentation system performs pre-launch communication, monitors health of the torpedo and stores torpedo parameters online.
Despite the strides made in the indigenous production of torpedoes, the Indian Navy still suffers from a handicap: how to train submarine or ship crew in torpedo firing. Use of real torpedoes for training is cost prohibitive, so naval officials train with practice torpedoes. For this purpose, NSTL has designed, developed and produced a ‘drill and practice torpedo’, which is the equivalent of an Italian torpedo, currently available with the Indian Navy. The indigenous drill and practice torpedo is available at one-sixth the cost of an imported torpedo.
Gorshkov will be ready for delivery by 2012: Russia
India plans huge 'liberty' statue
The statue will be of the Maratha warrior king Shivaji, considered a hero in Maharashtra for his defiance of Mughal and British forces.
The statue will be built on a man-made island, which will include a library, a museum and an amphitheatre.
Critics say the project is too expensive at more than $4.5m.
They say that the government of the western Indian state faces more pressing problems, such as a food, water and power crisis in addition to a high suicide level among farmers.
Vishal Dhage, a state government official, said the statue would be about the same height as the Statue of Liberty - which, with plinth included, stands at 305ft (92.69m).
Mr Dhage said the state had been planning the statue for more than three years and had been working on different short-listed sites.
Officials hope the new statue will rival the Statue of Liberty
A state-government-appointed committee selected the off-shore site near Marine Drive, which is also known as the Queen's Necklace because of its line of street lights.
Officials say technical issues surrounding the building of the island have still to be worked out.
But Chief Minister Vilasrao Deshmukh visited the site on Monday and reiterated promises that the statue would eventually be erected.
Mr Deshmukh said that when it was completed, the statue would be an important tourist spot, with sound and light shows to explain the importance of the warrior king.
Officials say the statue will be in bronze and may be built by a sculptor specialising in Shivaji statues.
Hero
There are several statues of Shivaji riding a horse with a sword in his hand at important locations in Mumbai, which is now India's financial and film capital.
King Shivaji is an icon adopted by the militant right-wing Maharashtra group, Shiv Sena, which says more should be done to promote the rights of "local" people in the state rather than "outsiders".
Moves to erect the statue have been described as a ploy to win local support ahead of elections next year.
Shivaji reigned from 1674 to 1680.
His exploits against the Mughal army made him a hero in his lifetime and a deity in western India after his death.
His army - though much smaller than those of his enemies - was known to employ guerrilla tactics.
He built several hundred forts in Maharashtra including sea forts.
Shivaji died in his forties and Maratha influence was then drastically reduced in western India.
more.....
Monday, June 2, 2008
Light combat aircraft hot weather trial successful
Nagpur (PTI): The much-awaited hot weather trial phase of prestigious Tejas Light Combat Aircraft (LCA) programme went off successful between Bangalore and Nagpur, defence sources said on Friday.
The progarmme got underway on Thursday with a flawless ferry flight of prototype vehicle-3(PV-3) and this was the first operation ferry flight of Tejas with external drop tanks which are intended to enhance the range/radius of action of aircraft, a defence release said.
In the event, the fuel system functioned perfectly, paving the way for more such long range ferry flight and out station trials. The LCA was ferried from Bangalore to Nagpur in about an hour's flying time and reached the destination with more than adequate fuel.
Over the next one week, the aircraft would be subjected to hot soaks on the ground followed by representative flight profiles at low and medium attitudes to check proper functioning of all on board systems under conditions of extreme heat which prevails in Nagpur.
The successful completion of these trials would thus mark a significant step towards attainment of all important initials operational clearence(IOC)and subsequent induction into the squadron service with the Indian Air Force, the release added.First consignment of uranium from Russia arrives
The cylinders, that reached here on Wednesday and stored in safety chambers, would be constantly monitored for uniform temperature and other safety aspects, station project director K C Purohit told reporters today.
He said another batch of 163 cylinders would arrive from Russia in the coming months.
The enriched uranium fuel is in the form of final fuel assembly and it will be loaded in to a reactor by October, he said.
He said works on two Russian reactors called VVER-1000 were progressing and it was likely to be commissioned by January 2009.
The two reactors would use enriched uranium as fuel and light water as both moderator and coolant.
While Russia is supplying the design and all the equipment for the two reactors, Nuclear Power Corporation of India Limited (NPCIL) is building the units.
IAF reopens old airbase in Ladakh region
An AN-32 transport aircraft carrying Air Officer-in-Chief Western Air Command Air Marshal P K Barbora landed at the unpaved runway at 0850 hours after flying from Chandigarh.
The flight signalled IAF's intention to re-operationalise the airbase which could give New Delhi a capability to keep an eye on the strategic Karakoram highway linking China and Pakistan.
The airbase is almost a stone's throw away from the Aksai Chin area of Jammu and Kashmir which the Chinese have occupied since 1959. The base is located at an altitude of 4,960 metres near the base of Karakoram Pass, still held by India on the old silk trading route to Yarkand in China.
Now IAF is also planning to revive airfields in Chushul and Fukche in eastern Ladakh, also along the Sino-Indian border, sources said.
Set up during the Sino-Indian conflict in 1962, the base was operated with American-supplied Fairchild Packets. It had to be closed down suddenly in 1966 when an earthquake caused loosening of the surface soil, making the area unsuitable for fixed wing aircraft.
"As part of moves to bolster aerial and land reconnaissance capability in the strategic region, army units carried out repair work on to make the airbase operational again," IAF sources said.
"Regular operations by AN-32 aircraft will be initiated in due course," they said.
Radar-fitted Tejas this year
Currently in the production stage, the radar-fitted Tejas is expected to roll out this year itself, say sources. So far, the HAL has developed five prototypes and two technology demonstrators of the aircraft. This is now being followed by the limited series production (LSP). A prototype is similar to a laboratory version while and LSP comes straight from the production lines in the factory. Making LSPs is the next stage in aircraft production.
At present, the first under the LSP series, LSP-1, has already rolled out and LSP-2 is expected to be flying within less than a month. LSP-3 is expected to come out within this year and would be fitted with the radar mechanism. The radar will help in making precise hits.
"With a radar, the pilot can identify the target with more accuracy and also determine the range before it hits. Moreover, the present aircraft have already been fitted with laser-powered pods (LDPs) to drop bombs with accuracy," said a source. This makes it among one of the best aircraft of its kind in the world, added the source.
Tejas, which is being built jointly by HAL and Aeronautics Development Agency - an arm of the defence research and development organisation (DRDO) - is in Nagpur since two days. The prototype aircraft, PV-3, was flown from Bangalore on Thursday while the PV-2 was flown on Saturday.
The prototypes are undergoing various tests before aircraft of the final make is inducted into the Indian Air Force (IAF). This will be followed by tests on LSPs, after which Tejas will get the much awaited initial operational clearance (IOC) followed by a final operational clearance. Once the configuration is finalised, regular production would begin.
There are plans to make eight aircraft in the LSP series which will also undergo certain tests too, and the final version to be used by the IAF will be based on the LSPs. Tejas is expected to be inducted into the IAF by 2010.