PCS PRELIMS 2012 results and combined mark list of all candidates

pcs prelims combined markslist

CURRENT ACCOUNT DEFICIT (CAD)

 The current account deficit (CAD) in a country's balance of payments measures the gap between import and export of goods, services and transfers.

This deficit is not necessarily a bad thing. Developing countries may run a CAD in the short term to increase local productivity and exports in the future. But in the long run, a current account deficit can sap economic vitality.

 HOW IS CAD FUNDED?

A deficit in the current account is funded by various capital inflows, including portfolio investments, external commercial borrowings, foreign direct investments and NRI deposits. nadequate resources to finance CAD may put pressure on the local currency.

WHAT IS THE IDEAL WAY TO FUND IT?

The best way to fund the current account deficit is through non-debt creating long-term inflows such as foreign direct investments. Volatile inflows like portfolio investments, sometimes referred to as hot money, could threaten the stability of the external sector balance sheet.

WHAT HAS BEEN INDIA'S EXPERIENCE?

Of late, India's current account deficit has widened to nearly 4% of GDP. At the same time, there have not been adequate capital inflows and this has led to a significant weakening of the rupee vis-a-vis the US dollar. As a result, the Reserve Bank of India has had to sell its stock of dollars to meet the dollar demand.

WHY ARE REGULATORS AND POLICYMAKERS CONCERNED?

Because there is very little that can be done to restrict the current account deficit as prices of essential items of imports are rising and exports are not picking up. A CAD not higher than 2.5% of India's GDP is considered prudent. The challenge before the government is to devise policies that will boost exports and reduce unnecessary imports such as those of gold.

How bank loans turn bad

WHAT IS A BAD LOAN?

An account is termed as a bad loan or NPA when a borrower fails to pay his bank monthly-equated installment. According to banking rules, a loan is classified as an NPA when the EMI, principal or interest component, is not paid within 90 days from the due date. When an asset ceases to generate any income, it's termed as a bad loan. There are classifications of loans — standard, sub-standard, doubtful and loss assets. In order to ensure that banks are not affected due to defaults, regulator RBI has mandated them to make provisions or set aside money when an account turns bad.

WHAT'S A STANDARD A/C?

If the borrower pays his dues regularly it is classified as a standard account. The RBI has asked banks to make provisions also for standard loans. Provision on all types of standard loan is 0.40% of the loan amount.

WHAT IS A SUBSTANDARD ASSET?

An asset is sub-standard when it remains as a bad loan for a period less than or equal to 12 months. In such loans, the net worth of the borrower or the market value of the security charged is not enough to ensure entire recovery of the dues. The provision to be set aside for sub-standard loan is 15% of the overdue amount.

WHAT IS A DOUBTFUL ASSET CATEGORY?

When an asset remains in the sub-standard category for 12 months it is classified as doubtful asset. Recovery of the full value of the overdue is highly questionable and mostly improbable.

WHAT IS A LOSS ASSET?

A loss asset is when a bank acknowledges that there is little or no value in retaining the account on its book and ideally, such loans should be written off. The RBI has mandated banks to provide 100% for the outstanding dues.

IS IT POSSIBLE TO UPGRADE AN A/C FROM AN NPA TO STANDARD CATEGORY?

When a borrower pays arrears of interest a interest rate is lowered.nd principal, the account can be upgraded from an NPA category to a standard loan category. Often banks restructure a loan account by giving borrowers more time to repay dues and at times

What is a 'White-label ATM'?

What is a white-label ATM?

Most automated teller machines (ATMs), or machines that dispense cash, are owned by banks. But ones that are owned and operated by non-banking companies are called while-label ATMs (WLAs). They function just the same way as any other bank-run ATM.

Why did the RBI permit them now?

So far, banks have deployed almost 87,000 ATMs across India. Although they are free to put up ATMs anywhere, there is still a huge scope for setting up more ATMs in non-urban and nonmetro cities.

So, the RBI has allowed non-banking companies to deploy white-label ATMs to expand their reach in rural India. However, non-banking companies entering this market will have to maintain a certain ATM ratio between rural and urban India. The RBI is yet to prescribe the ratio.

How does the customer benefit?

As the ATM network expands, more and more people will have easy access to cash as any customer with an ATM card can access white-label ATMs. However, the RBI norm allowing five free ATM transactions will not be applicable at these ATMs.

While the non-banking company won't be allowed to charge a customer directly for the transaction, the costs are expected to be displayed upfront on the screen. It is likely that the bank may recover the transaction charge from the customer separately.

What is the response so far?

As of now, many companies, such as Muthoot Finance and Prizm Payments, have shown interest in setting up these ATMs. It is likely that ATM manufacturers, such as NCR, Diebold and AGS, may also apply for setting up these dispensers themselves. Worldwide, white-label ATMs are in use in Canada and some African and European countrie

Regional Rural Banks

What are regional rural banks?

In the early 70s, there was a realisation that the even after nationalisation there were cultural issues which made it difficult for commercial banks, even under government ownership, to lend to farmers. To address this issue, the government set up a working group to suggest alternatives for institutional finances to the rural sector. Accepting the recommendations of the committee, the government promulgated the Regional Rural Banks Ordinance on September 1975, which was replaced by the Regional Rural Banks Act 1976. The Act allowed the government to set up banks from time to time at places where it considers necessary. Each bank carries on banking business within local limits specified by the government notification. The regional rural banks (RRBs) were owned by the central government, the state government and the sponsor bank who held shares in the ratio of 50,15 and 35%.

Why are they in the news?

The Reserve Bank of India in its discussion paper on grant of bank licences to corporate houses said that if corporates were keen on improving financial inclusions, they could look at taking over some of the weaker RRBs and strengthen them through capital and technology infusion.

Is this likely to happen?

There are several impediments. Firstly, the RRB Act will need to be amended. Secondly, there will be resistance from employee unions and state governments. Thirdly, corporates themselves may not be inclined to get into rural banking where the payback may take many more years.

What is the status of RRBs now?

The worst appears to be behind the RRBs, a large number of which were in the red for most of the previous decades. The process of consolidation through amalgamation of RRBs is now almost complete, resulting in a decline in the total number of RRBs to 84 as on August 31, 2009 (which includes a new RRB set up in the Union Territory of Puducherry). The process of recapitalisation of RRBs with negative net worth as on March 31, 2007, is also almost complete, with 27 RRBs fully recapitalised with an amount of Rs 1,796 crore as on July 31, 2009. The assets in the consolidated balance sheets of RRBs have increased by 16.5% in March 2009 to Rs 1.46 lakh crore.

They now open no-frills accounts and issue general credit cards. An RBI working group on technology in RRBs has observed that RRBs could not remain isolated from the technological developments sweeping the banking sector. The group has set a target date of September 2011 for all RRBs to move to a core banking solution platform.

A look at inflation targetting

Goldman Sachs in a recent report suggested that the Reserve Bank of India should set a formal inflation'target' for increasing transparency in monetary policyand anchoring inflation expectations. 

WHAT IS INFLATION TARGETING?

A central bank announces a mediumto long-term inflation 'target' and its subsequent monetary and interest rate policies are aimed at keeping inflation around this target.

Since the 1990s, many central banks in advanced and emerging economies have adopted explicit inflation targets as the most important goal of their monetary policy.

The central banks that do not set explicit targets tend to signal a comfort level of inflation. The US Federal Reserve followed this system until last year, indicating a long-run preference of 1.5%-2%. In January, in a significant shift, the Fed said it will target a long-run inflation of 2%.

HOW DOES AN EXPLICIT INFLATION TARGET HELP?

Economist say an explicit inflation target helps increase monetary policy transparency and predictability, besides anchoring inflation expectations.

For example, if the central bank of a country has an inflation target of, say, 2% and the actual inflation is more than this, market participants will know that the central bank will tighten monetary policy to rein in inflation.

In a reverse scenario, the bank will loosen monetary levers. This way the monetary policy becomes more predictable. And because of the predictability of action, inflation expectations are also tempered.



WHY HASN'T EVERY CENTRAL BANK ADOPTED EXPLICIT INFLATION TARGET?

The Federal Reserve of the US adopted an explicit inflation target only this year after extensive debate, suggesting that such an approach may not necessarily suit every country.

The support for inflation targeting is based on the view that if a central bank ensured price stability though an explicit inflation target, then there would be financial stability because market participants would act in a particular way.

However, the recent global financial crisis has dented this view somewhat. The financial crisis happened even while there was price stability.

Moreover, in many developing countries, apart from price management, the central banks also have to keep an eye on development issues, which means they have to worry about growth, spread of organised finance and ensure financial stability. An inflation centric approach could militate against these equally important roles of the central bank.

WHAT PATH DOES THE RBI FOLLOW?

In a big country like India that is gradually opening its door, the RBI has to worry about growth given the large-scale poverty, ensure a stable exchange rate, adequate foreign exchange reserves and provide stable financial markets.

Though these goals are not contradictory, at times the central banks need flexibility on the inflation side to adjust one of these objectives.

For instance, although inflation is running well above its comfort rate of around 5%, the RBI can still cut rates to stimulate growth as that is now being seen as a more pressing concern than price stability.

If the RBI was committed to an explicit inflation target of 5%, it would be in no position to relax the monetary policy.

GDP+: A better gauge of wellbeing

All these years, gross domestic product, or GDP, has proved to be a trusted measure of output and, hence, growth. But increasingly it is being felt that this economic gauge doesn't measure things such as inequality or environmental degradation or quality of life. Beginning Tuesday, India will host the Fourth OECD WorldForum in New Delhi that will deliberate a superior measure of development. 

IS GDP A PERFECT GAUGE OF DEVELOPMENT?

GDP, as a measure of development, has increasingly come under fire for using only economic capital to measure economic progress. For instance, it doesn't measure household chores done by members — cooking, washing and taking care of children. Same for welfare services offered by the government. Similarly, GDP per capita does not reveal how equitably a country's income is distributed. Besides, it does not reveal the impact of pollution or environmental degradation.

WHAT IS A 'GDP+' INDICATOR AND WHAT WILL IT INCLUDE?

Efforts are on to include social, human as well as natural capital along with monetary steps to reach a more 'wholesome' development tracker. Some economists have called this modified measure as GDP+. Apart from mere income generation, the measure will try and capture other material conditions such as jobs, earnings and housing. It will also try and capture quality of life, education, gender equality, personal security and subjective well-being, viewed as crucial parameters to gauge progress of a society.

WHY SHOULD ENVIRONMENT DEGRADATION BE CONSIDERED?

For sustainable development for future generations, inclusion of natural capital in accounting is increasingly being given more importance. Natural disasters can severly set back a country from its economic path as was witnessed in the aftermath of the tsunami in Japan. The UN's Statistical Commission recently included Environmental-Economic Accounts as part of GDP measure.

WHERE DOES THE WORLD STAND ON GDP+?

The Organisation for Economic Cooperation and Development has been trying to work out a broader measurement for 10 years through continued deliberations on conditions, varied country experiences and methodology. The Delhi forum is the fourth meeting on this agenda after Italy, Turkey and South Korea. However, developing countries such as India and China have some reservations on an GDP+ indicator as they feel that concerns in emerging nations differ from established economies and developed countries can misuse the measurement to limit their economic growth.

National Investment Board

WHAT IS NATIONAL INVESTMENT BOARD?

It is mechanism mooted by the finance ministry to speed up investment decisions in the govt. It will be headed by the prime minister and have ministers from key ministries such as finance, and law and justice as its members.

DOES IT HAVE AN OVERRIDING ROLE?

It has been envisaged as an empowered standing committee of the Cabinet under the chairmanship of the prime minister that will exercise the power of the government.

What is the difference between branch and subsidiary in foreign banks?

After the global economic crisis, India has been encouraging foreign banks to operate through subsidiaries, a move that promises to provide regulatory comfort to the government.

WHAT IS SUBSIDIARISATION OF FOREIGN BANKS?

The conversion of a foreign bank with branch presence into a subsidiary is called subsidiarisation. This arrangement protects Indian capital and operations from external economic shocks as such outfits follow local guidelines.

HOW IS IT DIFFERENT FROM THE CURRENT STRUCTURE?

At present, most foreign banks operate as branches or representative offices of the parent. Unlike branches, locally incorporated subsidiaries are separate legal entities. They have their own capital base and board of directors. In the case of branches, parent banks are, in principle, responsible for their liabilities.

HOW IS INDIA ENCOURAGING SUBSIDIARISATION?

Last week, Finance Minister Pranab Mukherjee proposed tax neutrality for this route. Existing laws require overseas lenders to pay up to 30% of the market value of their assets as capital gains and stamp duty while converting branches into a new entity. Besides, the RBI had, in its discussion paper, supported incentives for setting up subsidiaries, including liberal branch expansion and allowing raising of rupee resources by issuing non-equity capital instruments in form of hybrid instruments and subordinate debt. Current regulations allow foreign banks to raise resources only from their parent body or head office through Innovative Perpetual Debt Instruments.

BUT WHY ARE FOREIGN BANKS RELUCTANT?

Because they first want absolute clarity on the proposed tax neutrality, branch licensing policy, priority lending norms and listing guidelines. At present, it's not easy for foreign banks to acquire branch licences. On an average, the RBI issues about 14 branch permits to all foreign banks every year. Also, the priority sector limit for foreign banks is pegged at 32% against 40% for domestic banks. But foreign banks want a more liberal limit.

Integrated Guided Missile Development Program

The Integrated Guided Missile Development Program (IGMDP) was a Ministry of Defence (India)program for the research and development of a comprehensive range of missiles. The program was managed by the Defense Research and Development Organization (DRDO) and Ordnance Factories Board in partnership with other Indian government research organizations.^[1] The project started in early 1980s and ended in 2008 after these strategic missiles were successfully developed. The last major missile developed under the program was the Agni 3 intermediate-range ballistic missile which was successfully tested on 9 July 2007.^[2]

On 8 January 2008, the DRDO formally announced the successful completion of the IGMDP.^[1] It added that the strategic integrated guided missile program was completed with its design objectives achieved since most of the missiles in the program had been developed and inducted by the Indian armed forces.^[3]

Dr. Abdul Kalam, who conceived and worked on this program, later also became the President of India.

History

Main article: Guided Missiles of India#History

By the start of 1980's, DRDL had developed competence in the fields of propulsion, navigation and manufacture of materials. Thus, India’s political and scientific leadership, which included Prime Minister Indira Gandhi, Defence Minister R. Venkataraman, V.S. Arunachalam (Scientific Advisor to the Defence Minister), decided that all these technologies should be consolidated.

This led to the birth of the Integrated Guided Missile Development Programme. Dr. Abdul Kalam, who had previously been the project director for the SLV-3 programme at ISRO, was inducted as the DRDL Director in 1983 to conceive and lead it. While the scientists proposed the development of each missile consecutively, the Defence Minister R. Venkataraman asked them to reconsider and develop all the missiles simultaneously. Thus, four projects, to be pursued concurrently, were born under the IGMDP:

• Short range surface-to-surface missile (code-named Prithvi)
• Short range low-level surface-to-air missile (code-named Trishul)
• Medium range surface-to-air missile (code-named Akash) and
• Third-generation anti-tank missile (code-named Nag).

The Agni missile was initially conceived in the IGMPD as a technology demonstrator project in the form of a re-entry vehicle, and was later upgraded to a ballistic missile with different ranges.^[1] As part of this program, the Interim Test Range at Balasore in Orissa was also developed for missile testing.^[5]

Hurdles

Main article: Guided Missiles of India#Diplomatic and Technological Hurdles

After India test-fired the first Prithvi missile in 1988, and the Agni missile in 1989, the Missile Technology Control Regime (then an informal grouping established in 1987 by Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) decided to restrict access to any technology that would help India in its missile development program. To counter the MTCR, the IGMDP team formed a consortium of DRDO laboratories, industries and academic institutions to build these sub-systems, components and materials. Though this slowed down the progress of the program, India successfully developed indigenously all the restricted components denied to it by the MTCR.

Prithvi missile system

Main article: Prithvi missile

Test flight of the Prithvi SS-150

Missile	Type	Warhead	Payload (kg)	Range (km)	Dimension (m)	Fuel/Stages	Weight (kg)	In service	CEP (m)
Prithvi-I	Tactical	Nuclear, HE, submunitions, FAE, chemical	1,000	150	8.55X1.1	Single stage liquid	4,400	1988	30-50
Prithvi-II	Tactical	Nuclear, HE, submunitions, FAE, chemical	350-750	350	8.55X1.1	Single stage liquid	4,600	1996	10-15
Prithvi-III	Tactical	Nuclear, HE, submunitions, FAE, chemical	500-1,000	350-600	8.55X1	Single stage solid	5,600	2004	10-15

The Prithvi missile (from Sanskrit पृथ्वी pṛthvī "Earth") is a family of tactical surface-to-surface short-range ballistic missiles (SRBM) and is India's first indigenously developed ballistic missile. Development of the Prithvi began in 1983, and it was first test-fired on February 25, 1988 from Sriharikota, SHAR Centre, Pottisreeramulu Nellore district, Andhra Pradesh. It has a range of up to 150 to 300 km. The land variant is called Prithvi while the naval operational variant of Prithvi I and Prithvi II class missiles are codenamedDhanush (meaning Bow). Both variants are used for surface targets.

The Prithvi is said to have its propulsion technology derived from the Soviet SA-2 surface-to-air missile.^[6] Variants make use of either liquid or both liquid and solid fuels. Developed as a battlefield missile, it could carry a nuclear warhead in its role as a tactical nuclear weapon.

The initial project framework of the IGMDP envisioned the Prithvi missile as a short-range ballistic missile with variants for the Indian Army, Indian Air Force and the Indian Navy.^[7] Over the years the Prithvi missile specifications have undergone a number of changes. The Prithvi I class of missiles were inducted into the Indian Army in 1994, while Prithvi II with an extended range were being inducted in 2006. Prithvi III class has a longer-range of 350 km, and was successfully test fired in 2004.

Agni missile system

Main article: Agni missile system

Missile	Project	Type	Warhead	Payload (kg)	Range (km)	Dimension (m)	Fuel/Stages	Weight (kg)	In service	CEP (m)
Agni-I	IGMDP	Strategic	Nuclear, HE, penetration, sub-munitions, FAE	1,000	700-800	15X1	Single stage solid	12,000	2002	25
Agni-II	IGMDP	Strategic	Nuclear, HE, penetration, sub-munitions, FAE	750-1,000	2,000-3,000	20X1	Two and half stage solid	16,000	1999	30
Agni-III	IGMDP	Strategic	Nuclear, HE, penetration, sub-munitions, FAE	2,000-2,500	3,500-5,000	17X2	Two stage solid	44,000	2011	40
Agni-IV	Agni-IV	Strategic	Nuclear, HE, penetration, sub-munitions, FAE	800-1,000	3,000-3,500	20X1	Two stage solid	17,000	Tested
Agni-V	Agni-V	Strategic	Nuclear, HE, penetration, sub-munitions, FAE	1,500 (3-10 MIRV)	5,500-5,800	17X2	Three Stage solid	50,000	Tested
Agni-VI	Agni-VI	Strategic	Nuclear, HE, penetration, sub-munitions, FAE	1,000 (10 MIRV)	8,000 - 10,000[9]	40X1.1[9]	Three Stage solid	55,000[9]	Under Development

The Agni missile (Sanskrit: अग्नि, Agnī, root of English ignite) is a family of Medium to Intercontinental range ballistic missiles developed by DRDO of India. The initial Technology demonstrator version had a range of 1500 km but were based on a solid and a liquid stage making for long preparation before firing. Learning from this the production variants of Agni are solid fuel based to allow for swift retaliation against adversaries.^[10] Indian government stated in its official press release that its nuclear and missile development programmes are not Pakistan-centric. That the Pakistani threat is only a marginal factor in New Delhi's security calculus and Agni is at the heart of deterrence in the larger context of Sino-Indian equation.^[11] Missiles of Agni series are developed by DRDO and manufactured by Bharat Dynamics Limited.

While the Agni-I, Agni-II and Agni-III were developed under the IGMDP, Agni-IV, Agni-V and Agni-VI are under development as independent projects pursuant to the policy changes made by the DRDO after the end of the IGMDP in 2008.

Trishul missile system

Trishul (Sanskrit: त्रिशूल, meaning trident) is the name of a short range surface-to-air missile developed by India as a part of the Integrated Guided Missile Development Program. It has a range of 9 km and is fitted with a 5.5 kg warhead. Designed to be used against low-level (sea skimming) targets at short range, the system has been developed to defend naval vessels against missiles and also as a short range surface to air missile on land. Guidance consists of three different guiding beams, with the guidance handed over progressively to a narrower beam as the missile approaches the target.

According to reports, the range of the missile is 12 km and is fitted with a 15 kg warhead. The weight of the missile is 130 kg. The length of the missile is 3.1 m.^[12]

Development costs of the missile touched almost US$70 million to the taxpayers.

India officially shut the down Trishul Missile project on February 27, 2008.^[13] The program, one of the five missiles being developed by Defense Research and Development Organization as part of the Integrated Guided Missile Development Program, has been shelved. Defence Minister George Fernandes indicated this in Rajya Sabha (upper house of parliament), when he said the Trishul missile had been de-linked from user service, though it would be continued as a technology demonstrator.

Akash missile system

Akash (Sanskrit: आकाश meaning Sky) is a medium range surface-to-air missile developed as part of India's Integrated Guided Missile Development Program to achieve self-sufficiency in the area of surface-to-air missiles. It is the most expensive missile project ever undertaken by the Union government in the 20th century. Development costs skyrocketed to almost US$120 million which is far more than other similar systems.^[13]

Akash is a medium-range surface-to-air missile with an intercept range of 30 km. It has a launch weight of 720 kg, a diameter of 35 cm and a length of 5.8 metres. Akash flies at supersonic speed, reaching around Mach 2.5. It can reach an altitude of 18 km. A digital proximity fuse is coupled with a 55 kg pre-fragmented warhead, while the safety arming and detonation mechanism enables a controlled detonation sequence. A self-destruct device is also integrated. It is propelled by a solid fuelled booster stage. The missile has a terminal guidance system capable of working through electronic countermeasures. The entire Akash SAM system allows for attacking multiple targets (up to 4 per Battery). The Akash missile's use of ramjet propulsion system allows it to maintain its speed without deceleration, unlike the Patriot missiles.^[15] The missile is supported by a multi-target and multi-function phased array fire control radar called the 'Rajendra' with a range of about 80 km in search, and 60 km in terms of engagement.^[16]

The missile is completely guided by the Radar, without any active guidance of its own. This allows it greater capability against jamming as the aircraft self-protection jammer would have to work against the high power Rajendra, and the aircraft being attacked is not alerted by any terminal seeker on the Akash itself.

Design of the missile is similar to that of the SA-6 with four long tube ramjet inlet ducts mounted mid-body between wings. For pitch/yaw control four clipped triangular moving wings are mounted on mid-body. For roll control four inline clipped delta fins with ailerons are mounted before the tail. However, internal schema shows a completely modernised layout, including an Onboard computer with special optimized trajectories, and an all digital Proximity fuse.

The Akash system meant for the Army uses the T-72 tank chassis for its launcher and radar vehicles. The Rajendra derivative for the Army is called the Battery Level Radar-III. The Air Force version uses an Ashok Leyland truck platform to tow the missile launcher, while the Radar is on a BMP-2 chassis and is called the Battery Level Radar-II. In either case, the launchers carry three ready-to-fire Akash missiles each. The launchers are automated, autonomous and networked to a command post and the guidance radar. They are slewable in azimuth and elevation. The Akash system can be deployed by rail, road or air.

The first test flight of Akash missile was conducted in 1990, with development flights up to March 1997.

The IAF has initiated the process to induct the Akash and Trishul surface-to-air missiles developed as a part of the Integrated Guided Missile Development Program. The Multiple target handling capability of Akash weapon system was demonstrated by live firing in a C4I environment during the trials. Two Akash missiles intercepted two fast moving targets in simultaneous engagement mode in 2005 itself. The Akash System's 3-D central acquisition radar (3-D car) group mode performance was then fully established.

In December,2007 Indian Air Force completed user trials for the Akash missile system. The trials, which were spread over ten days were successful and the missile hit its target on all five occasions. Before the ten day trial at Chandipur, the Akash system's ECCM Evaluation tests were carried out at Gwalior Air force base while mobility trials for the system vehicles were carried out at Pokhran. The IAF had evolved the user Trial Directive to verify the Akash's consistency in engaging targets. The following trials were conducted: Against low flying near range target, long range high altitude target, crossing and approaching target and ripple firing of two missiles from the same launcher against a low altitude receding target.^[19] Following this, the IAF declared that it would initiate the induction of 2 squadrons strength (each squadron with 2 batteries) of this missile system, to begin with. Once deliveries are complete, further orders would be placed to replace retiring SA-3 GOA (Pechora) SAM systems.^[20][21] In February 2010, the Indian Air Force ordered six more squadrons of the Akash system, taking orders to eight of the type. The Indian Army is also expected to order the Akash system.

Nag missile system

Main article: Nag Missile

Nag Missile

Nag (Sanskrit: नाग meaning cobra) is India's third generation "Fire-and-forget" anti-tank missile. It is an all weather, top attack missile with a range of 3 to 7 km.

The missile uses an 8 kg tandem HEAT warhead capable of defeating modern armour including ERA (Explosive Reactive Armour) and composite armour. Nag uses Imaging Infra-Red (IIR) guidance with day and night capability. Mode of launch for the IIR seeker is LOBL (Lock On Before Launch). Nag can be mounted on an infantry vehicle; a helicopter launched version will also be available with integration work being carried out with the HAL Dhruv.

Separate versions for the Army and the Air Force are being developed. For the Army, the missiles will be carried by specialist carrier vehicles (NAMICA-Nag Missile Carrier) equipped with a thermal imager for target acquisition. NAMICA is a modified BMP-2 IFV licence produced as "Sarath" in India. The carriers are capable of carrying four ready-to-fire missiles in the observation/launch platform which can be elevated with more missiles available for reload within the carrier. For the Air Force, a nose-mounted thermal imaging system has been developed for guiding the missile's trajectory. The missile has a complete fiberglass structure and weighs around 42 kg.

Nag was test fired for the 45th time on March 19, 2005 from the Test Range at Ahmednagar (Maharastra), signalling the completion of the developmental phase. It will now enter production phase, subject to user trials and acceptance by the Indian Army.

Further versions of the missile may make use of an all-weather Milli Metric Wave (MMW) seeker as an additional option. This seeker has reportedly been developed and efforts are on to integrate it into the missile.

Other developments

There were a number of failures and successes, which led to an expansion of the program in the 1990s, to develop the long range Agni missile, a ballistic missile (codenamed Sagarika (missile)), which would be the naval version of the Prithvi, and an inter-continental-ballistic-missile (codenamed Surya missile) with a range of 8,000-12,000 km.^[22]

In 1998, the Government of India, signed an agreement with Russia to design, develop, manufacture and market a Supersonic Cruise Missile System which has been successfully accomplished by 2006. BrahMos is a supersonic cruise missile that can be launched from submarines, ships, aircraft or land. At speeds of Mach 2.5 to 2.8, it is the world's fastest cruise missile and is about three and a half times faster than the American subsonic Harpoon cruise missile. BAPL is contemplating a hypersonic Mach 8 version of the missile, named as the BrahMos II. BrahMos II will be the first hypersonic cruise missile and is expected to be ready by 2012-13. The laboratory testing of the missile has started.^[23]

According to a statement by Dr. S Prahlada (DRDO Director), new missile and weapons systems would henceforth be developed in five-year programs and include both Indian private industries as well as foreign partners to lower costs. Further development work on Nag and Surya missile would continue independently.^[24] In addition, the DRDO is also developing a laser-based weapon system as part of its ballistic missile defense program to intercept and destroy missiles soon after they are launched towards the country.^[25]

Since 2008, follow on strategic projects are being either pursued singly (e.g. the Agni project) whereas tactical systems could involve joint ventures with foreign partners.^[26]

India is said to be in the intermediate stages of developing a new cruise missile, Nirbhay (Sanskrit: निर्भय meaning fearless). The subsonic Nirbhay is said to be 6 m in length with a 520 mm diameter, weigh 1,000 kg and have a 1,000 km range with a speed of 0.7 mach. The technology demonstrator flight is planned for end-2009.^[27]

In September 2008, Indian scientists developed a path-breaking technology that has the potential to increase the range of missiles and satellite launch vehicles by at least 40%.The enhanced range is made possible by adding a special-purpose coating of chromium metal to the blunt nose cone of missiles and launch vehicles. This would add-up on the stated range.^[28]

A new tactical missile that will fill the gap between the Pinaka rocket system and the Prthvi series of missile has been developed. The first successful test of the missile was carried on 17 July 2011. The 150 km range missile has been named Prahaar. Each Road mobile launcher is designed to carry six missiles.