Now, use the privatised model of Space wholesale in the defence industrial sector

[Vikram-1, ignition!]

“This is a 100 percent designed in India rocket, a 100 percent made in India rocket, built by 100 percent Indian people, for India and for the world,” the 35-year old Pawan Kumar Chandana, founder CEO of Skyroot Aerospace, crowed about Vikram-1, after the first private sector rocket with all carbon composite airframe and 3-D printed liquid rocket engine for the final 4th stage, hit orbital speed of 28,000kms per hour, and injected several small satellites, including one of its own, a nano earth observation satellite, and a robotic arm package by another startup to collect space junk) into precise orbits. Chandana promised “high cadence” — meaning more frequent launches in the future to collect data, validate and improve design, and gain credibility in the global market for small satellite placements in Space. Modi demanded as many as 50 launches annually — exceptionally high from the government’s and ISRO’s perspective. Except, Musk’s Starlink launches a couple of low earth orbit satellites PER WEEK!! So if Skyroot means to challenge Starlink, Chandana and his team will have to up their game!

Vikram-1 epitomised a wholly “MADE in India” product — entirely designed, developed and produced in the country — and look where it it has got India!! A success in first attempt at orbital launch — something Elon Musk failed to do with his Falcon series! With a 1,000-strong workforce averaging 28 years of age, trained in-house, and led by Chandana who, had he remained in the heavily bureaucratised ISRO, would have still been a junior grade engineer instead of heading a billion dollar company! Instead of preventing highly motivated young engineers from frittering their talent, ISRO would be well advised to encourage the more venturesome amongst its staff to get out and become tech leaders for the larger good of the country, and to do the extra bit to help set them up for success. After all, not every young ISRO engineer has in him a budding entrepreneur; most are in government agencies for lifetime job security. But, even so, only 5% of the Skyroot workforce is of ISRO origin — so why the panic?

Further, this is the time to challenge Skyroot, which is on a high, to get into the hypsersonic regime for military rocket and missile systems — because it has all the tools, and to begin lifting low earth orbit satellites for the likes of Reliance Jio which means to have a constellation of some 1,200 LEO satellites to have a complete Space-based communications net, launched at a high rate.

Chandana’s “100%” claim, however, should clang like large Ayodhya temple bells in the ears and leave a mark on the brains of Prime Minister Narendra Modi and Defence Minister Rajnath Singh who, rather than helming “MADE IN INDIA” policy based on weapons systems of purely Indian design and manufacture, have been pushing the tired old policy of “Make in India” making it seem as if India had achieved something great and was delivering extraordinary results by SCREWDRIVERING — an apt description for license manufacturing, all manner of useless military hardware of foreign origin that are growingly redundant in the warfare of Artificial Intelligence-driven drone-quantum-cyber age! License production is no great shakes, there’s NO pride or creativity in it. It is the basic entry level stuff the ghastly Public Sector defence industry has stagnated in from the start in the late Sixties!

It is after the indigenous HF-24 Marut and its successor, HF-71/72 were shelved, that HAL began ASSEMBLING variants of the Mig-21 aircraft, MiG-27s, Jaguars, and the Su-30MKIs — some 3,500 aircraft in all, including 14 most high-value foreign fighter aircraft types, WITHOUT even a bit of reverse engineering or patenting or innovating anything! Like other DPSUs, HAL has a Zilch, Zero record! The ONLY indigenous innovation of note was the DARIN (Display Attack Ranging Inertial Navigation) avionics suite for the Jaguar low level strike aircraft, which HAL-DRDO developed but India did NOT benefit commercially from, why? Because the contract drafted and signed by the Defence Ministry reverted all rights and patents for improvements of the original avionics and onboard tech by India to the supplier of the original nav-attack system, Marconi-Elliott Avionics Systems Ltd of Britain, that’s why!

Without showing even this iota of innovative spark, generally the same shameful pattern of innumerable other DPSUs, lemming-like, bolting together military hardware from imported CKD (complete knock down) kits and SKD (semi knock down) kits, followed. Thus, the Avadi Heavy Vehicle factory, for instance, has been mechanically putting together first the British Vickers-Armstrong tank — “Vijayanta” and, later, a succession of Soviet/Russian tanks, including now the T-90 Bhishm’s, and soon the Sprut light tank (?) — Bye! Bye! Zorawar LT, and armoured personnel carriers and, only as a sideline, the locally-designed Arjuna main battle tank (because the army prefers Russian tanks that Arjuna, incidentally, beat handily in every test trial, in every weather condition and terrain from the high deserts of the Aksai China to the Thar in Rajasthan)!! It is a pattern repeated ad infinitum by all DPSUs — the reason why I long ago labelled the defence public sector units useless and a national drain on scarce resources (including at a seminar called by the DPSU labour unions in Bengaluru, many moons ago). Needless to say, the complicity of the armed services in this wretched state of affairs is marked!

Modi took the credit for the success of Skyroot Aerospace, and deservedly so. The fact is — and I have said this on umpteen occasions, there has been no other Prime Minister with so sure and remarkable an instinct for technology, something his record bears out, given his successes in digitalising governance (without however, as mentioned in previous posts, ridding the system and processes of bureaucratic interference and widespread corruption). He disregarded the advice, he confessed, during his congratulatroy call to Chandana, against taking “the bold step of privatising the space sector but he kept going”. Calling the Skyroot’s rocket launch a “defining moment” he added: “It shows government has to have complete faith in India’s youth and give them work.”

Fine, Modiji, so why doesn’t your government take the equally bold step I have been urging of transferring most conventional weapons procurement to the private sector that can be relied on to produce higher quality military goods more efficiently than the DPSUs? If you trusted Chandana and his cohort to produce the goods, which they did in trumps, why are you and Rajnath Singhji against having private sector majors — Tata, Mahindra, Godrej Aerospace, L&T to open competing production lines for India’s own Tejas combat aircraft — a facility accorded them with the follow-on aircraft — AMCA (advanced medium combat aircraft, when they first need to cut their teeth on Tejas production)? And, why is your government seeking a German diesel submarine for billions of euros for the navy when, by navy’s own account, it developed the nuclear powerered ballistic missile subs of the Arihant class alongwith L&T? Why is the entire conventional inventory of weapons the armed services are still procuring from the public sector and abroad, not being farmed out instead to the Indian private sector to produce — which they are entirely capable of doing, and to do so without the lassitude shown by the Mazgaon Dockyard Ltd DPSU that failed to bring the Scorpene production in on time and at cost? Worse, it is being rewarded for its manifest deficiencies by also getting the contract for the HDW 214 project!

And by favouring the GE 404/414 engine for the Tejas, instead of investing in and handing over the entire Gas Turbine Research Establishment to the private sector to revive and realise the Kaveri jet engine, and to produce a power plant with a consortium approach used for AMCA which many leading companies were willing to undertake, your government has guaranteed the end of Tejas — with Washington turning off the engine supply at will, as has already happened. Had you banked on the private sector to deliver the engine 5 tears ago, Modiji, the Tejas’d have had a home-grown jet engine by now and escaped the malign clutches of external powers working to advance their interests, not India’s. It is a conclusion that holds just as well for France, whose promised cooperation to get the Kaveri over the ‘hot section’ and other bumps, proved to be a sham, a ruse to delay and eventually to sell the IAF its old and antiquated M88 engine which, predictably, the air force has fallen for.

How does any of this make sense, Modiji, with what you really believe, assuming Skyroot was in your mindscape not a flash in the pan?

And finally, Mr Prime Minister, the talent in the country does not require you or the government to “give them work” as you put it. They have it in them to do what they want to do. Rather, the young do need the government to trust and believe in them, and in their talent — which you say you do, and to give them the “opportunity”, their head to experiment, to innovate, to create, to patent new technologies and, per chance, to fail, and otherwise to surge the country forward. All the government really needs to do in the situation, dear Modiji, is for your regime to do the irreducible minimum — make venture capital available and such capital intensive infrastructure, like launch pads for use, but otherwise to get out, and stay out, of their way!!

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About Bharat Karnad

Senior Fellow in National Security Studies at the Centre for Policy Research, New Delhi, he was Member of the (1st) National Security Advisory Board and the Nuclear Doctrine-drafting Group, and author, among other books of, 'Nuclear Weapons and Indian Security: The Realist Foundations of Strategy', 'India's Nuclear Policy' and most recently, 'Why India is Not a Great Power (Yet)'. Educated at the University of California (undergrad and grad), he was Visiting Scholar at Princeton University, University of Pennsylvania, the Shanghai Institutes of International Studies, and Henry L. Stimson Center, Washington, DC.
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14 Responses to Now, use the privatised model of Space wholesale in the defence industrial sector

  1. Kartik's avatar Kartik says:

    Sir,

    I want to ask something which is off – topic-

    There is an old interview of Netanyahu in which he highlighted the nuclear danger posed by Iran and Pakistan to whole world.

    It seems that Israel is trying to neutralize the nuclear danger from Iran by actively facilitating and pushing America into war with Iran without caring about any collateral damage to America

    By same analogy, will Israel use india for it’s own purpose to neutralize the nuclear threat from Pakistan ?

    It seems that in future Israel wants a full blown war between india and Pakistan which ends with nuclear exchanges so that international community takes away Pakistan nuclear weapons. It doesn’t care if india receives collateral damage in this.

    Is Mossad infiltrating into RAW, India media ecosystem, government and rss also ?

    Aren’t we too close to Israel —to the point where it could be dangerous for us ?

    Ex CIA agent John Kiriakou has explained Israel dirty tricks in details in many interviews.

    Please answer my questions in detail sir. I think we will be trapped in a very dangerous situation.

  2. Abc's avatar Abc says:

    still I will say funding is the main problem. This govt is hell bent on looting from poor and middle class to give to rich and in destroying scientific temperament of the nation. Hence whether private or public sector doesn’t matter.

    After modi came to power in total tax revenues of Central govt 50-55 percent came from corporates and wealthy and rest 40-45 from the poor and middle class. Today that revenue share is exactly opposite. This is the crux of all issues in our country

  3. RBB's avatar RBB says:

    “something his record bears out, given his successes in digitalising governance” ” – This is very inaccurate. Man Mohan Singh started the biometrics based Adhar Card project in 2009 which formed the basis of digialization which was the aim of Mr. Singh. The first 100 Adhar Cards were distributed in 2010 in Maharashtra, Mr. Modi was the CM of Gujarat, he took a big jab at Adhar Card and said this was to legitimaize the infiltrators (read Muslims from Bangladesh). He also tweeted that this was a political gimmick. His BJP went to the Supreme Court to stop the Adhar Card but somehow did not obtain stay order on the issuance of the Adhar Cards. By 2014 when Mr. Singh lost the election millions of Cards were issued.

    Realizing he would loose the momentum and will loose the opportunity to jump on the bandwagon and claim credit, he instructed BJP lawyers to wind up soon without pursuing vigorously. In Dec 2017 Supreme Court upheld the Adhar Card and cited Rajiv Gandhi who during the 1985 Orissa drought had said unfortunately only 15 paisa out of 100 reached the beneficiaries and the Adhar Card will make each and every paisa reach the beneficiary . From there on the Modi govt siezed on this opportunity and started claiming the digitalization as his own without acknowledging it was Man Mohan Singh’s brainchild and his ultimate aim was digitalization.

    Mr Modi and BJP have stolen credits of all the past governments. In November 8th 2023 issue THE ECONOMIST ran an article headlined “Narendra Modi and the art of claiming credit” -Below are excerpts:

    “If it’s election season in India, it’s time for giveaways. At a rally on November 4th in Chhattisgarh, one of five states holding elections this month, Narendra Modi, the prime minister, announced that a pandemic-era scheme to provide 5kg of free grain a month to 800m of India’s poorest people would continue for the next five years. As someone who had grown up in poverty, Mr Modi said, it was his sacred duty to care for the poor.

    No doubt. But it was also his legal obligation. The National Food Security Act (NFSA ), passed by the previous, Congress-led, government in 2013, entitles poor Indians to monthly rations of 5kg of wheat and rice at subsidised rates of 2-3 rupees (2-4 cents) per kilo. Mr Modi’s “announcement” was pretty much a restatement of that legal reality. This provides a good llustratrion of his political method. He and his Bharatiya Janata Party (BJP) are brilliant at claiming credit for things, justifiably or otherwise.”

    • Frankly, it is disingenous for the Economist to argue that Modi has claimed credit for the successes of previous regimes. Isn’t this pretty normal in any democracy? (Trump claiming responsibility for +ve economic indices the Biden Admin left behind — decreased debt exposure, low inflation, etc?). True, Aadhar was started during Manmohan Singh’s time. But its extension, and other significant achievements — the UPI, direct subsidy transfers to the poor with new bank accounts that Modi pushed for — the chief means of lifting 300 million out of poverty, Rupay, etc. and visibly more and better infrastruture — highways, airports, railways — surely these can’t be wished away, and were no part of the Congress party’s record in office.

  4. Email from Lt. General Anil Chait (Retd), former Chief of the Integrated Defence Staff

    Dear Mr Karnad

    1. Absolutely -Skyroot needs to be complimented. What an achievement.

    2. As a part and investor in the defence and space eco system, I still do not see the demand which can spur the growth in sync with our enthusiasm. While the roadmap is clear, concrete outcomes to shape the implementation strategy needs more assurance. 

    3. This capital intensive and high-risk domain demands proof of repeated success to establish credibility for generating assured revenue. We hope that the target of building one rocket every month and its successful deployment occurs

    Best wishes

    Anil Chait 

  5. Email from Lt General A.K. Singh (Retd), former GOC, I Corps & Lieutenant Governor, Andaman & Nicobar

    Anil makes a valid point. How do we ensure assured success (orders) after a product has sufficiently proven itself, that remains the key. No amount of policy pronouncements or the seminar circuit is an adequate substitute. ‼️

  6. Aditya Mishra's avatar Aditya Mishra says:

    @BharatKarnad

    Professor Karnad

    Sir, this is a little off-topic, but I wanted to ask for your perspective on the protests currently taking place in Delhi.

    Do you see these protests as being genuinely centered on education reforms and student grievances, or do you think they have evolved into something broader perhaps even an attempt to challenge or weaken the Modi government or to say a regime change operation, similar to how protests eventually developed into political movements in Nepal and Bangladesh?

    One thing that seems to have broad agreement, even among people with differing political views, is that the Education Minister has lost a great deal of public confidence and that many believe he should step down. However, I’m more interested in the bigger picture. What do you think the likely end result of these protests will be? Will they lead to meaningful reforms in the education system, remain a limited issue, or develop into a wider political movement?

  7. Mr. A's avatar Mr. A says:

    One Interesting thing is that Mr. Modi is the Minister In-Charge of Department of Space . I think for similar success to be replicated in Defence , Mr. Modi should become the Defence Minister in the next Cabinet Reshuffle and implement the same set ideas in MOD that he did in DOS. I think he will straighten out the ministry once he sees the malaise and rot present there.

  8. inquisitivelyenchanting11e653bbf2's avatar inquisitivelyenchanting11e653bbf2 says:

    Greetings sir.

    No question here but just want to share the joy of this good day and amazing achievement by our brother in ‘space’.

    American surveillance sats have been invited by T Rehmaan sahab in Bng through starlink. It is time, we commercialise this and:

    1. kick out the Americans from South Asia and take the lead in satellite services.
    2. Utilise this momentum for C4ISR.
    3. Develop the best hypersonic missiles in the world. (DRDO chairman had said that the Brahmos NG was quite expensive. Maybe skyroot can help ease the cost!).

    It is a good day in the Bhartiya story and I am happy. Thanks for the post sir.

    Jai Hind!

  9. Email from Col. Ajai Shukla (Retd)

    ON THE DANGERS OF REPLACING PUBLIC SECTOR MONOPOLIES WITH PRIVATE SECTOR ONES

    We are assuming (falsely) that the private sector is inherently more effective and productive than the public sector. Therefore, giving guaranteed large scale orders to the private sector, rather than to the public sector, is (falsely) seen by us as a panacea that will unlock all those development successes that are proving elusive for the public sector because of their intrinsic incompetence, laziness and structural flaws (false assumption). 

    Where we are correct, is in the belief that public sector monopolies on weapon systems development deny those agencies — whether the DRDO, DPSUs or the successors to the OFB — suitable incentives to spur on the development of high tech weaponry. But then we go wrong in concluding that the solution lies in replacing public sector monopolies with private sector ones. The private sector companies entering defence systems development are as self-serving and predatory as any in the public sector. They skillfully marshal the “proven failure” argument to ensure future monopolies come to them, not to the public sector. But, at the end of it all, just as it is the lack of competition for the public sector, it will be the lack of competition to the new private sector entrants that will enable them to manipulate the system and get away — for lack of any alternatives for MoD decision makers.The solution lies in institutionalising ferocious competition that brings in all aspiring weapon systems developers and forces them to compete on a relatively level playing field. I say relatively because the public sector advantage that stem from their having come into the game earlier, can never be accurately gauged or compensated for. But if the private sector is that much more efficient and capable then the public sector dinosaurs, they should be able to find a way forward. And what the private sector skilfully avoids is any discussion of their advantages vis-a-vis the public sector in decision-making, deployment of funds and human resource management.
    LET THE GAMES BEGIN!!

  10. bharat karnad

    To:  Ajai · Wed, Jul 22 at 9:39 AM

    Ajai,

    I am confounded by your argument! DPSUs don’t measure up by any metric. Because unlike in the private sector which is driven to maximise profits by cutting down on waste and unproductive labour practices,among other things, and there is accountability for projects, the public sector works on govt time fuelled by the carreerist “chalta hai” attitude of the babu, the management protected by Article 311 of the Constitution, and the workforce by cushy deals that labour union deals have extracted from the govt. This does not mean talent and merit is missing in DPSUs — most of the American defence majors who have set up shop in India have recruited from among the DPSU workforce. But that innovation is rarely rewarded in the bureaucratised setup. Reason for Chandana and others escaping ISRO to start Skyroot. And Chandana is not an exception on the start-up scene.

    A solution for the “ferocious compeition” you seek was outlined in my 2015 book — Why India Is Not a Great Power (Yet). It proposed, as you may recall, dividing the DRDO labs, the Ordnance factories, and all DPSUs into two nearly capability-wise equal complexes to be led by the two most versatile and proven industrial houses — L&T and Tata, who would be free to trim the fat in the managerial ranks and the workforces of these organisations, and to compete for all military procurement — with the armed services required to source their requirements only from one or the other of these defence-industrial complexes. It will bring in economies of scale in a big way and optimise use of resources. Moreover, when bidding for military contracts from these two complexes, the concerned service would be mandated to give greater weightage to the bid with the larger indigenous tech component even if it isn’t L1. It will build in an incentive for rapid indigenisation, because to continue losing bids because of its higher foreign component and, performance-wise, marginally higher tech,  will not make commercial sense. Incidentally, both complexes will be in on every procurement programme, and the govt will fund development up to the prototype stage. The selection is when the indigenous element becomes crucial.

    WHY WILL THIS NOT WORK?

    Regards,

    Bharat

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