DTN News: U.S. Department of Defense Contracts Dated April 30, 2012

DTN News: U.S. Department of Defense Contracts Dated April 30, 2012

 Source: U.S. DoD issued No. 328-12 April 30, 2012

(NSI News Source Info) TORONTO, Canada - April 30, 2012: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued  April 26, 2012   are undermentioned;

CONTRACTS

AIR FORCE

            Lockheed Martin Corp., Orlando, Fla., is being awarded a $156,578,150 firm-fixed-price modification contract for three enhanced integrated cockpit systems trainers, four weapons systems trainers, one loadmaster fuselage trainer, five loadmaster part task trainers, and eight enhanced cargo handling systems.  These devices are utilized to provide training to aircrews and maintenance crews for the C-130J aircraft.  These training devices will support the missions for Air Mobility Command, Air Combat Command, and Air Force Special Operations Command.  The locations of the performance are Tampa, Fla.; Cote de Liesse, Montreal; and Quebec, Canada.  Work is to be completed by March 31, 2016.  ACS/Simulators Division, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8621-11-C-6288, P00007).

            Qualis Corp., Madison County, Ala., and Spectrum Comm., Inc., Newport News, Va., are being awarded a $77,000,000 cost indefinite-delivery/indefinite-quantity with cost-plus-fixed-fee and cost reimbursement task orders contract to procure operational test and evaluation services to support Air Force Operational Test and Evaluation Center in accomplishment of operational test and evaluation activities.  The locations of performance are Kirtland Air Force Base, N.M. Eglin, Air Force Base, Fla.; Peterson, Air Force Base, Colo.; and Edwards, Air Force Base, Calif.  Work is to be completed by Oct. 31, 2017.  AFOTEC/A-7K, Kirtland Air Force Base, N.M., is the contracting activity (FA7046-12-D-0100 and FA7046-12-D-0200).

            DRS-Sustainment System, Inc., St Louis, Mo., is being awarded a $41,808,966 hybrid fixed-price incentive (firm target), firm-fixed-price indefinite-delivery requirements type modification contract for contractor logistics support, Level III performance based logistics contract in support of the Tunner 60K loader program.  This contract has one basic ordering period plus a one-year option.  The location of the performance is West Plains, Mo.  Work is to be completed by Aug. 31, 2013.  WR-ALC/GRVKBA, Robins Air Force Base, Ga., is the contracting activity (FA8519-12-D-0002).

            DRS-Sustainment System, Inc., St. Louis, Mo., is being awarded a $21,261,187 hybrid fixed-price incentive (firm target), firm-fixed-price indefinite-delivery requirements-type modification contract for overhaul of the tunner aircraft cargo loaders in support of the Tunner 60K loader program.  The location of the performance is West Plains, Mo.  Work is to be completed by Aug. 31, 2013.  WR-ALC/GRVKBA, Robins Air Force Base, Ga., is the contracting activity (FA8519-12-D-0002-0004).

            Raytheon Integrated Defense Systems, Sudbury, Mass., is being awarded a $15,485,267 cost-plus-award-fee, firm-fixed-price and cost-plus-fixed-fee contract for the Surveillance Radar Program.  The location of the performance is Sudbury, Mass.  Work is to be completed by Nov. 9, 2012.  ESC/HSIK, Hanscom Air Force Base, Mass., is the contracting activity (FA8722-05-C-0001 P00083).

            The Boeing Co., Newark, Ohio, is being awarded a $11,873,224 cost-plus-award-fee contract to provide for Minuteman III Guidance System repair.  The location of the performance is Newark, Ohio.  Work is to be completed by Apr. 30, 2013.  OO-ALC/AFNWC/PKME, Hill Air Force Base, Utah, is the contracting activity (F42610-99-D-0006-0064).

            Northrop Grumman Space and Missions Systems Corp., San Jose, Calif., is being awarded a $10,360,820 firm-fixed-price modification contract to procure spare hardware to support the Airborne Sigint Intelligence Payload Increment 1 software development task.  A total of 26 unique spare items are to be procured.  The hardware is required to repair and maintain lab and flight test support equipment during the Increment 1 development effort and future upgrade programs.  The location of the performance is San Jose, Calif.  Work is to be completed by April 15, 2014.  Reconnaissance Systems Wing, Wright-Patterson Air Force Base, Ohio, is the contracting activity (BOA FA8620-08-G-3007 DO-000303).

            TASC, Inc., Andover, Mass., is being awarded a $9,600,001 cost-plus-fixed-fee and level of effort modification contract to exercise the option to continue space control architecting, modeling, and simulation activities for the space control architecture development program through April 2013.  This will enable continued space control architecture development in support of offensive and defensive counterspace, space situational awareness, and command and control mission areas.  The location of the performance is El Segundo, Calif.  Work is to be completed by May 1, 2013.  Space and Missile System Center, Space Superiority Systems Directorate, Los Angeles Air Force Base, El Segundo, Calif., is the contracting activity (FA8819-09-C-0001 modification P00028).

            Lockheed Martin Corp., Newtown, Pa., is being awarded an $8,403,514 fixed-price incentive firm contract for on-orbital operations support of the GPS IIR/IIR-M satellite constellation.  Support to be provided will be daily technical support, data evaluation and trendin, anomaly resolution, spacecraft processor software maintenance and continuing space segment to the control segment interface.  The location of the performance is Newtown, Pa.  Work is to be completed by Jan. 31, 2013.  Space and Missile Systems Center, Peterson Air Force Base, Colo., is the contracting activity (FA8823-12-C-0001).

            Lockheed Martin Corp., Newtown, Pa., is being awarded an $8,403,514 fixed-price incentive firm contract which will provide on orbital operations support of the GPS IIR/IIR-M satellite constellation.  Support to be provided will be daily technical support, data evaluation and continuing space segment to the control segment interface.  The location of the performance is Newtown, Pa.  Work is to be completed by Jan. 31, 2013.  Space and Missile Systems Center Peterson Air Force Base, Colo., is the contracting activity (FA8823-12-C-0001).

            Booz Allen Hamilton, Inc., Herndon, Va., is being awarded a $7,862,905 cost-plus-fixed-fee, indefinite-delivery and requirements contract, survivability/vulnerability technology, which will perform research and development in order to complete threat and vulnerability assessments, irregular warfare recommendations for position papers on threat topics and foreign media and open source analysis reports.  The location of the performance is McLean, Va.  Work is to be completed by April 29, 2012.  ESG/PKS DTIC, Offutt Air Force Base, Neb., is the contracting activity (SP0700-03-D-1380, Delivery Order: 0461).

NAVY

            Marathon Construction Corp., Lakeside, Calif. (N62473-12-D-0244); Nova R M F, Napa, Calif. (N62473-12-D-0245); Reyes Construction, Inc., Pomona, Calif. (N62473-12-D-0246); R.E. Staite Engineering, Inc., San Diego, Calif. (N62473-12-D-0247); and Manson Construction Co., Seattle, Wash. (N62473-12-D-0248), are each being awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award construction contract for construction and renovation of various waterfront facilities at various locations predominantly within the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility (AOR).  The maximum dollar value, including the base period and two option years, for all five contracts combined is $99,000,000.  Marathon Construction is being awarded task order 0001 at $2,627,777 to repair concrete and fendering at Pier 7 at Naval Base, San Diego, California.  Work for this task order is expected to be completed by May 2013.  All work on these contracts will be performed predominantly within the NAVFAC Southwest AOR including, but not limited to, California, and is expected to be completed by April 2015.  Contract funds in the amount of $2,647,777 are obligated on this award and will expire at the end of the current fiscal year.  This contract was competitively procured via the Navy Electronic Commerce Online website with nine proposals received.  These five contractors may compete for task orders under the terms and conditions of the awarded contracts. The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.

            RQ Construction, L.L.C., Carlsbad, Calif., is being awarded a $64,397,300 firm-fixed-price contract for the design and construction of approximately eight multi-story and/or single-story reinforced concrete masonry unit buildings on pile foundations with structural steel framing, reinforced concrete foundation and floors, reinforced masonry walls and brick veneer at 2D Combat Engineer Battalion Complex at Marine Corps Base, Camp Lejeune.  Construction will include administrative space, storage space, drive-through equipment maintenance bays, communications/electronic equipment repair, secure weapons armory with covered weapons cleaning area, indoor simulated marksmanship trainer, showers and locker areas.  Sustainable design principles will be included in the design and construction in accordance with Executive Order 13123 and other laws and executive orders.  Facilities will meet a minimum of Leadership in Energy and Environmental Design Silver ratings and comply with Energy Policy Act of 2005.  The contractor shall provide all labor, supervision, engineering, materials, equipment, tools, parts, supplies and transportation to perform all work described in the request for proposal.  This contract contains options, which, if exercised, will bring the total value of the contract to $69,683,000.  Work will be performed in Jacksonville, N.C., and is expected to be completed by July 2014.  Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via the Navy Electronic Commerce Online website with 29 proposals received.  The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Va., is the contracting activity (N40085-12-C-7719).

            Harris Corp., RF Communications Division, Rochester, N.Y., is being awarded a $25,829,777 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee/cost-plus-incentive-fee contract for Joint Tactical Radio System (JTRS) soldier radio waveform software in-service support for the network enterprise domain under the Joint Program Executive Office, JTRS. This five-year contract includes no options.  Work will be performed at the contractor’s facilities in Rochester, N.Y., and is expected to be completed April 29, 2017.  Contract funds will not expire at the end of the current fiscal year.  This contract was competitively procured via Request for Proposal N66001-11-R-0043 published on the Federal Business Opportunities website, and the SPAWAR e-Commerce Central website, with four offers received.  The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-12-D-0043).

            USA Environmental, Inc.*, Oldsmar, Fla., is being awarded $25,321,817 cost-plus-fixed-fee task order 0004 under a previous indefinite-delivery/indefinite-quantity cost-plus-fixed-fee contract (N62470-11-D-8007) for munitions and explosives of concern removal at the former Vieques Naval Training Range and former Naval Ammunition Support Detachment, Puerto Rico.  Work will be performed in Vieques, Puerto Rico, and is expected to be completed in October 2014.  Contract funds in the amount of $6,500,000 are obligated on this award and will expire at the end of the current fiscal year.  One proposal was received for this task order.  The Naval Facilities Engineering Command, Atlantic, Norfolk, Va., is the contracting activity.

            BAE Systems, Information and Electronic Systems Integration, Inc., Nashua, N.H., is being awarded a $20,596,718 modification to a previously awarded cost-plus-fixed-fee contract (N00019-10-C-0070) for technology maturation efforts in support of the next generation jammer, which will replace the aging ALQ-99 tactical jamming system.  Technology maturation efforts include research in support of future development of airborne electronic attack capability from a tactical-size airborne stand-off/mod-escort platform.  Specifically, the contractor will mature and provide a concept demonstrator (CD) design and mature critical technology elements required to support CD design.  Work will be performed in Nashua, N.H. (39 percent); Melbourne, Fla. (25 percent); Cincinnati, Ohio (14 percent); Lansdale, Pa. (14 percent); and Baltimore, Md. (8 percent).  Work is expected to be completed in April 2013.  Contract funds will not expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

            Northrop Grumman Systems Corp., Integrated Systems - Eastern Region, Bethpage, N.Y., is being awarded a $20,220,599 modification to a previously awarded cost-plus-fixed-fee contract (N00019-10-C-0072) for technology maturation efforts in support of the next generation jammer, which will replace the aging ALQ-99 tactical jamming system.  Technology maturation efforts include research in support of future development of airborne electronic attack capability from a tactical-size airborne stand-off/mod-escort platform.  Specifically, the contractor will mature and provide a concept demonstrator (CD) design and mature critical technology elements required to support CD design.  Work will be performed in Linthicum, Md. (55 percent), and Bethpage, N.Y. (45 percent), and is expected to be completed in April 2013.  Contract funds will not expire at the end of the current fiscal year.   The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

            ITT Corp., Clifton, N.J., is being awarded a $20,175,204 modification to a previously awarded cost-plus-fixed-fee contract (N00019-10-C-0071) for technology maturation (TM) efforts in support of the next generation jammer which will replace the aging ALQ-99 tactical jamming system.  The TM efforts include research in support of future development of airborne electronic attack capability from a tactical-size airborne stand-off/mod-escort platform.  Work will be performed in Clifton, N.J. (59 percent); Amityville, N.Y. (21.8 percent); Bohemia, N.Y. (11 percent); Irvine, Calif. (4.9 percent); and Langley, Va. (3.3 percent).  Work is expected to be completed in April 2013.  Contract funds will not expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River Md., is the contracting activity.

            APIC Corp.*, Culver City, Calif., is being awarded a cost-plus-fixed-fee modification to a previously awarded Section 845 other transaction agreement (N00421-03-9-0002) with a not-to-exceed ceiling price of $16,000,000.  This modification provides for Phase V Network Enable Wavelength Division Multiplexing-Highly Integrated Photonics (NEW-HIP) technology maturation efforts.  Efforts will address the advancing system-level technology readiness level; manufacturing readiness level advancement for both the digital and analog network components; and link testing of digital and analog links using the application-specific components developed under the Navy NEW-HIP Program.  Work will be performed in Culver City, Calif. (69.75 percent); Albany, N.Y. (18.14 percent); Honolulu, Hawaii (11.30 percent); Eagan, Minn. (.43 percent); and Woodland Hills, Calif. (.38 percent).  Work is expected to be completed in February 2013.  Contract funds will not expire at the end of the current fiscal year.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity.

            The Boeing Co., St. Louis, Mo., is being awarded a $12,002,634 firm-fixed-price delivery order against a previously issued basic ordering agreement (N00019-11-G-0001) for supplies and services associated with Engineering Change Proposal 6038 for the F/A-18E/F aircraft.  Supplies include 42 R2/R3 retrofit kits for the AN/APG-79 active electronically scanned array radar radomes.  Work will be performed at the Marion, Va. (57 percent), and St. Louis, Mo. (43 percent), and is expected to be completed in August 2015.  Contract funds will not expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

            IAP World Services, Inc., Cape Canaveral, Fla., is being awarded an $11,800,592 firm-fixed-price, indefinite-delivery/indefinite-quantity modification to previously awarded contract (N40080-07-D-0470) for base operating support services at Naval Air Station Patuxent River; Webster Outlying Field; and Solomons Recreation Center.  This contract includes options, if exercised, which would bring the cumulative value f this contract to $84,392,015.  Work will be performed in Patuxent River, Md. (91 percent); Solomons, Md. (5 percent); St. Inigoes, Md. (2 percent); and Point Lookout, Md. (2 percent). Work is expected to be completed by November 2012.  Contract funds in the amount of $8,918,272 will expire at the end of the current fiscal year.  The Naval Facilities Engineering Command Public Works Department, Patuxent River, Md., is the contracting activity.

            Huntington Ingalls Industries, Inc., Pascagoula, Miss., is being awarded a $11,497,083 modification to previously awarded contract (N00024-06-C-2304) to exercise an option for fiscal 2012 class services in support of class product fabrication, delivery, engineering, engineering support and integrated logistics support of the Zumwalt Class (DDG 1000) destroyer.  Work will be performed in Pascagoula, Miss. (95 percent), and Gulfport, Miss. (5 percent), and is expected to be completed by October 2012.  Contract funds will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

            Bilbro Construction Co., Inc.*, Escondido, Calif., is being awarded at $7,321,712 firm-fixed-price task order 0006 under a previously awarded multiple award construction contract (N62473-09-D-1653) for design-build renovation of Watkins Hall, Building 245, at Naval Support Activity Monterey.  The renovations include repairing/replacement of mechanical, plumbing, and electrical systems.  The mechanical repairs include removal of the existing heating, ventilation, and air conditioning (HVAC) system, chilled water and pneumatic control systems and replacement with a more efficient HVAC system and chilled water and direct digital controls systems.  Plumbing repairs include removal and replacement of existing domestic hot water tank/heat exchanger unit pump and connecting the HVAC pneumatic control system to the compressed air piping system serving laboratories.  Also provide drain for existing emergency shower/eyewash units and upgrades to meet the current safety standards.  Electrical repairs include evaluating the existing electrical power distribution, lighting, upgrades to meet the current electrical and energy codes and standards.  The option, if exercised, provides for re-painting and re-carpeting all offices.  This contract includes options, if exercised, which would bring the cumulative value to an estimated $7,396,512.  Work will be performed in Monterey, Calif., and is expected to be completed by November 2013.  Contract funds in the amount of $7,321,712 will expire at the end of the current fiscal year.  Eight proposals were received for this task order.  The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.

            Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $7,516,372 modification to the previously awarded fixed-price-incentive-firm target F-35 Lightning II JSF Low Rate Initial Production IV Sustainment contract (N00019-09-C-0010).  This modification provides for the procurement of 1,198 active matrix liquid crystal displays, a diminishing manufacturing source part, for all low rate initial production variants.  Work will be performed in Fort Worth, Texas, and is expected to be completed in May 2012.  Contract funds in the amount of $4,230,468 will expire at the end of the current fiscal year.  This contract combines purchases for the Air Force (29.8 percent); the Marine Corps (14.4 percent); the Navy (12.1 percent); and the Cooperative Program Participant (43.7 percent).  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

*Link for This article compiled by Roger Smith from reliable sources U.S. DoD issued No. 328-12 April 30, 2012
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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DTN News - WHITE HOUSE NEWS: Japanese Prime Minister Yoshihiko Noda Visits White House

DTN News -  WHITE HOUSE NEWS: Japanese Prime Minister Yoshihiko Noda Visits White House
Source: DTN News - - This article compiled by Roger Smith from reliable sources Time
(NSI News Source Info) TORONTO, Canada - April 30, 2012: Japanese Prime Minister Yoshihiko Noda was meeting Monday with President Barack Obama, looking to reaffirm Japan's strong alliance with the U.S. and boost his leadership credentials as his popularity flags at home.

Noda, who came to power in September and is Japan's sixth prime minister in six years, faces huge challenges in reviving a long-slumbering economy and helping his nation recover from the worst nuclear crisis since Chernobyl.

His Oval Office meeting and working lunch with Obama, to be followed by a joint news conference and then a gala dinner hosted by Secretary of State Hillary Rodham Clinton, could offer Noda some brief relief from domestic woes. The two sides are determined to show that U.S.-Japan ties are as close as ever, particularly after the assistance from the U.S. lent following the massive March 2011 earthquake and tsunami that triggered a meltdown at a nuclear plant.

The U.S. alliance with Japan, the world's third-largest economy, is at the core of Obama's expanded engagement in Asia — a diplomatic thrust motivated in part by a desire to counter the growing economic and military clout of strategic rival China.

Their meeting takes place during a delicate time in U.S.-China relations, as the two world powers reportedly negotiate an asylum deal for a blind Chinese legal activist who escaped from house arrest. Activists say he is under the protection of U.S. diplomats in Beijing, but U.S. officials have yet to comment on the diplomatically sensitive case.

Obama and Noda are expected to say they want to strengthen the U.S.-Japan security alliance. The U.S. has about 50,000 troops in Japan, and both sides never tire of saying that their defense cooperation underpins regional peace and security.

Days before Noda's visit, the U.S. and Japan announced an agreement on shifting about 9,000 Marines stationed on the Japanese island of Okinawa. The plan would spread U.S. forces more widely in the Asia-Pacific as part of a rebalancing of U.S. defense priorities after a decade of war in Iraq and Afghanistan.

It is a move also aimed at easing what Okinawans view as a burdensome U.S. military presence and goes some way to ameliorate a long-term irritant in bilateral relations. But there's still no timetable and the plan faces opposition in Okinawa and in the U.S. Congress.

Among other issues for discussion Monday will be North Korea's recent failed rocket launch and expectation it could soon undertake its third-ever nuclear test, democratic reforms in Myanmar and the international pressure on Iran over its nuclear program.

Noda is the first Japanese leader to be hosted at the White House since his Democratic Party of Japan, which had an initially awkward relationship with Washington, came to power in the fall of 2009. The party had at first favored a foreign policy more independent of the United States.

Noda is seen in Washington as capable and practical, and the Obama administration will be hoping he can weather his political problems and stick around longer than his immediate predecessors. His poll numbers have dwindled to below 30 percent as he pushes an unpopular rise in a consumption tax to tackle Japan's vast national debt and looming social security crisis to cope with the nation's aging population.

No breakthroughs on trade were anticipated at Monday's summit. In November, Noda signaled Japan's interest in the Trans-Pacific Partnership, a pact under negotiation by nine nations and a key plank in U.S. trade strategy to crank up its exports to support America's fragile recovery after the global slowdown.

While Noda is believed to be personally supportive of declaring Japan's intent to join the talks, he faces opposition at home, even within his own party. The pact could demand an assault on the heavy subsidies enjoyed by Japan's farmers.

Noda also faces an uphill battle to persuade Japan to restart dozens of nuclear power plants that were idled as a safety precaution after the meltdown at the Fukushima Dai-ichi plant after last year's quake and tsunami. The plants were a source of about one third of Japan's power needs, and last week Japan reported its largest annual trade deficit ever, after decades of surpluses, as oil and gas imports grow.

U.S. companies are major players in Japan's nuclear sector, and the White House may be looking for reassurance that the plants will go back on line. Japan is likely interested in natural gas exported from the U.S.

*Link for This article compiled by Roger Smith from reliable sources Time 
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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DTN News - INDIA ECONOMY NEWS: Struggling Coalition Leaves Indian Economy In The Doldrums

DTN News - INDIA ECONOMY NEWS: Struggling Coalition Leaves Indian Economy In The Doldrums
*It didn't go unnoticed that the best news for the beleaguered Indian economy last week came not from the markets but the Gods via the weatherman
*India’s position dips in geopolitical index owing to corruption, misgovernance - IANS
*Report: India's treasury lost $210 billion in coal scandal - LA Times
*'The Mother Of All Sweetheart Deals' - Outlook India
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Dean Nelson, Delhi - Telegraph UK  
(NSI News Source Info) TORONTO, Canada - April 30, 2012: As India's once 'miraculous growth' story took a dark twist – Standard & Poors downgraded its outlook to 'negative' while Moody's blamed the ruling Gandhi family for the political paralysis behind faltering growth – the country's Met Office offered one silver lining. It ruled out the possibility that the monsoon rains would fail.

While Dr Manmohan Singh's government has lurched from one crisis to another and serious differences within his coalition have placed almost all reforms on hold, fear of a failed monsoon is the one thing which unites his fractious cabinet and Indian business leaders alike.

In the past few weeks temperatures in New Delhi have plummeted, raising concerns that the searing heat and dust needed for a torrential monsoon will not come, causing crops to fail and inflation to soar once again.

If the weathermen's forecast is correct, India's problem remains a longer term one. How to revive a 'flagging' growth rate of 7pc back towards the double-digit figure the country had in its sights barely two years ago.

According to S&P and Moody's, the root cause of the disappointing performance lies in the country's government. S&P said last week that India's rating could deteriorate further if "the external position continues to deteriorate, growth prospects diminish or progress on fiscal reforms remains slow in a weakened political setting."

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Moody's appeared to lay the blame for India's plight at the feet of the Gandhi family which controls the Congress Party, the leading group in the governing coalition. Sonia Gandhi and the party's heir Rahul Gandhi "blew their chance" to revive a programme of reforms in parliament by wasting their time campaigning in the Uttar Pradesh state elections, in which the party was humiliated and the government further weakened.

Prime minister Manmohan Singh had hoped to introduce a series of foreign investment and tax reforms to further open up the country's markets and make it an easier place for foreign and domestic companies to do business. But plans have been mothballed because the governing coalition partners cannot agree.

Plans to reduce government spending on fuel and other subsidies have been halted, while the widely quoted $1 trillion India must spend on upgrading infrastructure from roads to power plants has yet to leave the government's coffers.

A general air of gloom was compounded when the government's chief economic advisor Kaushik Basu warned a Washington think tank not to expect any reforms until a stronger government is elected after the 2014 elections. "We are going through a difficult year. (After 2014), you would see a rush of important reforms and after 2015 India would be one of the fastest growing economies of the world. The new government, if in a majority, would start with the reforms in a big way because there is a sense that it needs to pick up," he said.

In the meantime foreign investors are rejecting India in favour of rivals, while major Indian companies are spurning domestic opportunities in favour of investing overseas, says Subodh Agrawal of Mumbai and London-based Euromax Capital.

He claims clients are afraid of investing in India because they believe its government's decision-making has become increasingly unpredictable. The proposal to allow the government to make retroactive tax demands – after its courts rejected a $2bn tax demand to Vodafone over its acquisition of the mobile operator Hutchison – had made it impossible to sell India to prospective investors.

"S&P and Moody's have been kind to India. Its [real] forecast is doom and doom," he adds.

Jatinder Mehra, a director of the Essar Group, one of India's biggest business houses, says the government has depressed growth by over-reacting to inflation and focusing on curbing demand rather than solving supply problems.

Essar was a major partner in Vodafone India and has also been targeted by the government along with other companies whose 2G mobile phone operator licenses were revoked following corruption allegations. Essar has denied the allegations.

"The Indian economy is in slowdown mode. Last year growth dipped below 6pc, but we have seen 9pc. There is growth but it is slowing down," he says.

Vital investment in the country has contracted and consumption dipped following a series of anti-inflation measures taken in 2010-2011 which pushed interest rates beyond 14pc and reduced liquidity. "Instead of solving the supply constraints, demand was controlled through monetary initiatives, high interest, low liquidity, reduced investment and consumption," Mr Mehra explains.

Government attempts to appease lobby groups have also caused significant problems for the economy. The high inflation it was responding was in fact fuelled in part by welfare programmes for the poor which raised demand without tackling supply bottlenecks, the Essar executive says.

Environmentalist demands to halt coal mining in forest areas have affected the operation and opening of new power stations. "Essar has power plants, we have coal mines, but opening them is an issue," Mr Mehra says. The government's failure to stand up to environmental groups is harming development.

Deepak Talwar, a leading lobbyist and investor in India's hotel sector, says the government is in denial. Official measures to curb inflation have made finance prohibitively expensive and brought infrastructure projects to a standstill. His own hotel investments have been affected.

"The Reserve Bank of India kept raising interest rates and the government doesn't have the strength to say this is wrong for the economy. If you are not a group A borrower you are probably borrowing at 16pc – every project will be affected by that," he says.

The investment needed in roads is not happening because the government is not signing off projects, which means it still takes up to 48 hours for a good truck to drive 1,700 kilometres from Mumbai to Delhi. The problem, Mr Talwar says, is not in the fundamentals of the Indian economy, but in the political leadership above it. Smaller coalition partners are exploiting a gap between the government's real power centre, the Gandhi family, and the administration led by Prime Minister Dr Manmohan Singh.

Poor co-ordination between the Congress Party's political leadership and the government and lack of clear direction is creating a power vacuum. Mr Talwar's solution is to fill it with a Gandhi. "The political leadership must take over the executive. If Sonia Gandhi was prime minister, everyone would fall into line. Or Rahul Gandhi could become prime minister and get this story over with."

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*Link for This article compiled by Roger Smith from reliable sources  By Dean Nelson, Delhi - Telegraph UK  
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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