[Defense Diplomacy] Defense FDI relaxed, Navy War-room leak, Exercise Komodo

SubscribeDiplomacy69 Comments

Mrunal's Economy Course
  1. D1: Exercise Komodo
  2. D2: Defense FDI reformed
  3. D3: Navy War-room leak & Transfer of Technology contracts

D1: Exercise Komodo

  • @Indonesia (28th March to 3rd April) 2014
  • Navies of many countries: India, Indonesia, USA, China, Russia etc.
  • India has sent INS Sukanya with Chetak helicopter.

This exercise will benefit in future operations for:

  1. Humanitarian Assistance
  2. Disaster Relief, civilian rescue
  3. Oil Leakage Control
  4. Sports and Social Interaction among defence personnel.

D2: Defense FDI reformed (Sep 2014)

Reforms In the Defense Sector FDI in India
Old policy New policy
FDI 26%
  • 49% govt. approval
  • Above 49% also allowed, if access to ‘ modern and state of art technology’
FII banned
  • 24% automatic approval
  • Allowed FPI, FII, QFI, NRI, foreign venture capital investment.
  • Only 24% because hot money and sometimes hard to trace real owners.
JV Single Indian resident to have 51% share NO such requirement
Duration Three years lock-in period on foreign investor. No such requirement.


Who approves what?
Investment limit Approving agency
Upto 1200 crore FIPB
>1200 crore CCEA
>49% FDI CCS (cabinet committee on security)

Challenges in Defence FDI

  1. 49% FDI means the foreigner still can’t get management control of the Joint ventures with Indian companies.
  2. Hence they’ll be hesitant in transferring the proprietary technology to India.
  3. This was the same reason why old policy did not attract large investmnt.
  4. Secondly, Government has yet to notify what constitutes “modern and state of art technology”, (because there more than 49% FDI permitted, and foreign companies may get attract to invest and transfer secret technology.)

D2: Defense Procurement:

Defense Acquisition Council (DAC) is chaired by Defense Minister.
This DAC cleared following proposals (in August 2014):

  1. Stopped the tender process to import helicopters for army. (perhaps don’t want to burn hands again like UPA did with AgustaWestland)
  2. Instead, Government will now buy 400 desi helicopters from Hindustan Aeronautics Ltd. for moving men and material in border region.
  3. Will induct 118 new (Desi) Arjun tanks.
  4. Will produce Self Propelled (SP) guns to mount on  Arjun tank- this will give us advantage in swift desert battles in Rajasthan and Western Border.
  5. Will upgrade six submarines.

D3: Navy War-room leak & Transfer of Technology contracts


  1. What do you know about the Navy War room leak case? What is the present status?
  2. What are your views on transfer of technology (ToT) contract?

What is Navy war room leak?

  • This is about spy scandal in purchase of Scorpene submarines from France.
  • Directorate of Naval operations in New Delhi is known as Navy war room.
  • Ravi Shankaran, a retired Naval officer cum London-based arms dealer cum relative of then Navy chief Arun Prakash.
  • Ravi acquired certain sensitive documents from Navy war room, and leaked them to Thales (French company that makes Scorpene submarines).
  • Another middleman Abhishek Verma helped transferring money.

Year 2005:

  • Then Defence minister Pranab Mukharjee approved the deal.
  • Navy conducts a secret inquiry, dismisses three officers but nothing reported to courts or CBI.
  • Media exposes the scam. CBI starts inquiry but at turtle speed.

Year 2007

  • Prashan Bhushan filed PIL.
  • Delhi HC orders CBI to make haste.
  • CBI interrogates Ravi’s partners, and finds out Ravi escaped India without any valid travel documents. He may be hiding in UK, Sweden or some other European country.
  • CBI locates him in UK, gets an arrest warrant.
  • Ravi surrenders to London court.
  • British Secretary of State signs Ravi’s extradition treaty.
  • Ravi challenges it in London court.
March 2014
  • London high court rules in favour of Ravi, that he cannot be extradited to India.

Transfer of technology (ToT) contract?

  • These Scorpene Submarines were to be acquired under transfer of technology (ToT) contract.
  • Meaning, the seller company (Thales, France) will not only sell the “product” (submarine), but also handover the technology of its critical components.

But, until now the problem was= Seller Company [Original equipment manufacturer/OEM] would demand

  • That we must pay them additional license fees/royalty for such tech.transfer. and OR
  • That our local companies (Defence factor/DRDO etc) CANNOT export or sell items produced with such technology.

But, Defense Procurement Procedure (DPP) 2013 has fixed this issue (atleast in theory!)

DPP-2013 says that:

  1. The TOT should be provided without licence fee
  2. There should be no restriction on domestic production, sale or export- of any items manufactured with help of such ToT technologies.

Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR) for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.

Pratik Nayak's Full course on Art & Culture @Unacademy Plus

Mrunal recommends

69 Comments on “[Defense Diplomacy] Defense FDI relaxed, Navy War-room leak, Exercise Komodo”

  1. I read some aspirants preparing for mains asking how to start preparation as time is less, following was my reply and this reply is not open to criticization but follow up questions are most welcome :)

    “First revise what you read in prelims, Practice answer writing on random questions i.e atleast start from 500 words now and pick up pace as you proceed. Dont waste more hours on current as you will fizzle out rather prepare very famous topics (Mars orbiter, food subsidy wto et al). GS paper 1 will take time i.e history + geograpgy (Prepare it time bound i.e max 20 days). Paper 2 will take less time (Laxmikanth, IR , and again some very famous topics from internet like RTI ) IR is available in every current magazine with a special section . Paper 3 is more prelims centered, I can give you a book list which can be helpful. paper 4 to masha allah, i.e only few points from a single book and you are done with GS . Optional and essay has to covered extensively but again time bound say 30 days max (as i assume you are aware with bigger concepts of it) . Most Toppers in past years have wasted 1 month after prelims as they have an idea before prelims what upsc demand and what exactly they have to go through . Read this line from syllabus ” The nature and standard of questions in GS will be such that a well educated person will be able to answer them without any specialized study” . I assume syllabus of mains is with you , even if you dont have it is available in notification. “

    1. Give book list……minimum……manageable within 60 days……

      1. Anwar if i give you a straight run down of books to be studied for clearing upsc, i may be the biggest fool and upsc dont welcome fools . Go through the syllabus . please mention topic which you havent covered before , best sources to be covered that too in short frame will be posted in below comments . happy reading .

    2. Hey caligula watching ur suggestions to our fellow aspirants from the past 1 month

      i hope you will respond to my queries and give me suggestions

      —–im still finding it diffcult to complete paper 1 syllabus prepared from books like norman lowe,goh chenlong and current topics related to climatic cond like polar vortex(though in january) and many more could you suggest any more books or sources so that it could be better for upsc mains pov

      ——when it comes to int relations is there any strategy or whatever you call when we write in the mains

      ——also i have almost every soft copy of the imp books for upsc prepared with them only but lately realised and bought every book. during starting days of my preparation i have a misnomer that only way to compete(becoz to serve my country ) with delhiwalaa(with full respect) is to go electroniic way. wasted lot of time but i still fear that something is missing in my preparation.is this e-study spur from past few months is good or bad from your pov tell me sincerly.
      Also my other way of thinking is to completely stick to hindu or indian express and magazines like yojana,epw or tell mee and give up searching topics in internet what you personally suggest plz broo

      am I preparing up to the upsc level or what mrunal or some other site providing matter more than enough for upsc becoz bro when i practice writing essays and few questions everyday i do recheck from sites but im getting around 50-60% content of what they provide
      also notes that i make from newspaper and magazines dont have depth of this extent mrunal. few days back i decided to subscribe current affair notes from delhi but restrained myself buying it becoz i still believe that my notes is far better than them

      really im in dilemma am i moving in correct directions or any deviation
      bro plz help meee

      waiting for ur reply dude

      from prateeklucky94 gmail com

      1. For paper 1 please watch roman saini video, on his youtube channel . i guess the title is demolish upsc in 100 days. his video series on art n culture (though he have not completed the series) are very useful . He advises ncert for many topics, which i guess will create more panic , so dont worry you have already covered many topics in prelims. now you need material for polishing them . so it goes like this, prepare for art and culture first (roman videos), note everything what he says . come to medieval section , pls pls only read some limited topics (but comprehensively ) again roman will mention those topics in that 100 days video. modern is from same source you read in prelims but also try to solve past years questions . geography i would say ask for best gs coaching notes of any institute from your known person. geo is vast, you have to cover it in short frame. in addition read ncert of 11th class (only ncert to be read). environment any sarkari book whether nios or ugc(because you have to be socialistic) . dont dig topics that are for optional students. control your breath while running a marathon, do not panic, do not run fast, dont stop. cherish what you accomplished (syllabus)

      2. International relation goes like this; you are a well educated,learned external affair minister(not a bjp or congress but neutral) . Relation of any country with India is having a timeline . there are number of files for each country containing each event. you have to give a speech of 15 mins .obviously you wont mention each and every event. your speech will start from , historic relation between both countries (that has prolonged from years and arent going to change in short time) for example , hostility with pakistan is since independence, issue with china. recent development on the issue. plus some recent pacts treaty which are huge (upon which CIA start inquiring :D ) . The purpose is not to master the subject but having knowledge of subject , so that the speech goes long way, is understood by common man and pm (upsc) lauds your speech watching on his laptop , sitting in his comfortable chair enjoying cup of tea with snacks .

  2. Thank you very much sir. Because of your guidance i was able to secure a government job.


  3. I sincerely appreciate your work rajtanil, you have to dig huge topics first and then mold it in mrunal format (sharp and succinct )

  4. caligi,it would be really helpful if you or mrunal would grade the current topics as most important,middle level and low level.if it is done then we can concentrate on current topics.HAIL MRUNAL,HAIL CALIJI.

    1. Hermit, the topic that takes most news coverage and have a bigger timeline, can be considered utmost important . They should be covered in any circumstance , comprehensively . Mains examination are more tilted towards students . As this is the selection process while prelims remain the elimination process. If you are preparing for next year, you have to cover as many topics possible starting from most important. If you are preparing for mains, you have a specific short syllabus now, in your hands. Believe me the current questions (more than 90% in paper 2 and 3) will be those topics that you have covered, mid day meal, rti , lokpal etc etc . But only the master (who championed points on these topics)and true fighter (who wrote fantastic answer) will be welcomed for interview . I hope you got my point . its my personal opinion that grading topics from high to low priority will be controversial plus mrunal is doing his job, so that everything should be available on this website not that everything should be learned from this website.

  5. Self Propelled (SP) guns ……….???????

  6. koi batayega ki ye UPSC waale prelims ka result kab denge???

    1. or may be next friday.

      1. or Friday after the next Friday

    2. Ha, upsc wale batayenge

    3. Or next to next Friday

  7. Hi mrunal

    Why the content on yellow tab is not visible?… Kindly rectify soon.

  8. Bakhtiyar Khilji was such a bad person

  9. I hav given prelims this year . it went avg scoring around180 on answer key basis i want to prepare GS mains from delhi but i am confused in to opt for which institute.can someone from here please guide me between vajirao,shriram,vajiram,als …on the account of study nd personal care hey give to there students.suggenstions will be highly appriciated.

  10. cant see my comments

    1. Hii caligula,please advice me from where to prepare ethics paper….Thanks!!!

      1. Hi Rohit, i tried to post gs p4 strategy many times as comment, but the page still doesnt show. Anyways it is a 601 words note which i shall divide into few comments, lets c what happens .
        1/3 ) The word ‘aptitude’ mentioned in paper in 4 title i.e ethics integrity and aptitude has nothing to do with logical reasoning or syllogism or maths or comprehension. The paper will test an aspirant’s mental pressure handling ability in capacity of an administrator . I still wonder what are UPSC exact answer and on what basis they choose best answer. You will be given various terminologies like commitment, conviction and other attributes of an administrator, you have to write upon these plus your method of working under different conditions(merits , demerits of an action taken) .

        1. idk, whats wrong with the comment section . tried several time . lol part 1 will be suspense of a stammering comedian , which might frustrate , if this comment get posted i will try to post it below another topic, With heading in capital letters , “hey rohit read it here” , in the newest topic posted by mrunal .

          1. Hii caligula ,thanks for replying….i missed those comments :-( …but i’m not able to see your msg now….I don’t know why this happening..even i was also not able to see my msg too…..If this problem is persisting, then can you mail me at rohitbarthwal06@yahoo.com…Thanks!!!

    2. hey caligula,please suggest study plans for environment topics..
      will be very thankful if you can mail me your suggestions at singh_ajit@aol.in

  11. Plz koi muje bataye ki csat aur gs ke preliminary ki tayari karne ke liye upsc ke

  12. upsc cut off for gen 214
    result in second week of oct
    confirm news

    1. No it’s 237 , confirmed result tmrw @ communist

  13. Please notify me of new posts and follow-up comments by email.
    Thank you

  14. doing a gov. job, is it possible to get prepration for civil services. if yes HOW?

  15. @communist– r u robert vadra jisse sab kuchh phle hi pta chal jaata h ? ..lol…

  16. hey communist …how did u knw…source tho batao…….??

  17. Under Modi government, life of civil servants gonna very tough….!!

  18. I want to ask what is std method of reading the hindu news paper..to read n make a daily note..to cut n paste in copy ..or underline of that article on paper..is reading articles helps in pre exam also..?..as i m hindi medium aspirant so upto what limit i should use hindu paper..plz help and dnt ignore..

  19. UPSC CSP 2014 result

    IFS 2013 – 03.10.13
    Result date – 02.08.13 (friday)

    IFS 2014 – 22.11.14
    Result date – ?

    This friday, means today itself, i guess..
    Fingers crossed..
    No insider info

  20. Different betn M0, M1, M2 and M3 money supply???????????

    1. Refer ncert macro economics initial chapters. Book available online.

    2. INDIAN ECONOMY by Ramesh Singh
      Page No – 12.23 (stock of money)

  21. IBPS PO Hall tickets are out.

  22. When will u give current affairs for CGL 14 exm.

  23. @Communist

    Confirm news should be backed with genuine source.So could you please disclose the anonymous source

  24. confirm news from upsc exam dept OS

    cse 2014 result on oct 10

    gen 214
    obc 196
    sc 182
    st 176

    gen 229
    obc 208
    sc 190
    st 181

  25. Hello Mrunal , i am not scoring enough in this PT , so want to know about next strategy , as you suggest normally . One more important thing is that i want to buy that Spectrum BHUGOL ( GuideBook ) …i have option to buy new one around 2014 edition in rupees 450 and 2013 edition in rupees only 250 ..so which should i buy as you can guess– i have become ” Dhobhi Ka Kutta ” … please reply as soon as possible … i am going to continue my journey … thanks

  26. confirm news from upsc exam dept OS

    cse 2014 result on oct 10

    gen 214
    obc 196
    sc 182
    st 176

    gen 229
    obc 208
    sc 190
    st 181

    1. Hi communist ,

      is ur source reliable ? Plz tell coz dere r lot of rumors n not able to conc.

    2. he…communist how do u know the about such a detail?……plz give the authentic/believable source….

    3. What bogus news are you spreading dude……stop this jazz..as if upsc called u up n told u this is the cut off….non-sense

      1. True…..who has asked him about the cutoff anyways…..if you really want to help others post some material…time is less and even if someone clear prelims there will not be any chance of clearing mains

        People follow mrunal site but dont learn from him. He never post anything until he is 100% sure.

        Besides if it would have been so easy to get access to the inside information the delhi coachingwallas would have been the first one to access to it.

        But people will not learn and this is the story of every year……..

    4. dumbass…y dont u just take ur ass back to china!!

      1. hahahaaa……. :D firestarter rightly said bro … hey communist pls dont simply spread ur baseless….ill-manufactured news…..

  27. in that case, I am out of the race.

  28. Cut off are
    192 gen
    173 obc
    158 sc
    146 st

  29. hey! can anyone me the meaning of access to ‘modern and state of art technology’

Leave a Reply

Your email address will not be published. Required fields are marked *