Defence Expo 2022 deferred, experts say may hamper India’s image

However, defence industry sources said there were lingering concerns about Russian and Ukrainian participation in the event after the war began last week. An industry executive mentioned that the cancellation so close to the event projects India as an “unreliable” player, and such perceptions matter.

The executive mentioned that many international companies had already invested millions of dollars for bringing their equipment, setting up the stalls, bookings, and ensuring that top executives were present for the event. “Now, all that money and effort is wasted.”

The government should have worked around the situation, the executive said. The major foreign players were unhappy, and India has “lost face” by postponing the event.

However, government sources said there were some concerns about hosting Russian, Ukrainian and American players at the same venue due to which they had to cancel the event. They stressed that the reason for the cancellation was a spillover of the situation in Ukraine.

“The defence ministry had booked all the 12 domes at the Helipad Exhibition Centre. The preparations at the site were completed and since the last few days, helicopters, battle tanks, aircraft and military equipment had started arriving for the event. We have not been informed about the postponement of the event,” said Kamlesh Gohil, head of K&D Communications that manages operations of HEC.

According to the list of exhibitors shared on the DEFEXPO mobile application, some of the Russian players expected to participate were Rosoboronexport JSC, United Engine Corporation, United Shipbuilding Corporation, Almaz-Antey Air and Space Defence Corporation, High Precision Weapons JSC, and Technodinamika JSC. Even Ukrainian firms like Spetstechnoexport and Motor Sich JSC were expected to participate.

Interestingly, this is the second big event to get postponed in the state this year. The 10th edition of the Vibrant Gujarat summit in January was similarly postponed indefinitely due to the then prevalent Covid situation. The impact of postponement of DefEXPO 2022 just five days before the event will translate into huge losses for five- and four-star hotels where over 5,000 rooms are estimated to have been booked.

“Everybody associated with DefEXPO is going to face losses. This includes vendors, suppliers and hospitality partners. The losses are more for hotels because we have perishable inventory and cannot replace those dates with something else. We have given bookings by refusing other businesses. The postponement, which has come five days ahead, will dent us more as we have already made preparations to host guests and have paid vendors and suppliers,” said S Jayakrishnan, General Manager of Novotel, a five-star property in Ahmedabad that was completely booked for the event.

“These rooms were sold out over a month ago,” he added. There are over 20-odd hotels marked five stars in Ahmedabad and Gandhinagar. This includes the new hotel in GIFT City.

It was the first time Gujarat was hosting the DeFEXPO. The event was expected to provide some impetus to the defence manufacturing that is currently at a nascent stage with a handful of players. The Aerospace and Defence Policy 2016, announced by the Gujarat government, has attracted little attention from defence manufacturers.

Gujarat Governor Acharya Devvrat, in his speech in the Gujarat Assembly on March 2, said the state has attracted an investment of Rs 591.46 crore through four units in the aerospace and defence sectors and the government has provided an assistance of Rs 12.39 crore to these units. While L&T Manufacturing is the biggest player making “K9 Vajra-T” – the self-propelled Howitzer Guns, Jaivel Aerospace Pvt Ltd at Sanand and Unique Forge (Guj) Pvt Ltd are among the few success stories in this sector for Gujarat. While Dholera SIR is being promoted as a destination for defence industries, some of the players like ABG Shipyard, Reliance Naval and Engineering LTD and Alcock Ashdown that used to build ships and boats for the Indian Navy and Coast Guard have turned sick and suspended operations.

DefEXPO’s postponement comes after Defence Minister Rajnath Singh reviewed the preparations along with senior officials on February 20. Thereafter, Minister of State for defence Ajay Bhatt and Gujarat Chief Minister Bhupendra Patel reviewed the preparations at Gandhinagar on February 22. The duration of the expo was also increased by a day after the Covid situation eased in the country.

Officials said the industries and mines department of the Gujarat government and iNDEXTb (an investment promotion arm of the state government) were coordinating agencies in the state for DefExpo 2022. The Sardar Vallabhbhai Patel International Airport at Ahmedabad was one of the main points from where the military equipment for DefEXPO was to reach the venue. The airport, which is undergoing recarpeting of its runway, remains closed for nine hours from 9 am to 6 pm. The MoD had asked the recarpeting, which is due to finish only by May 31, 2022, to be halted temporarily between March 9-14, so that the airport could remain open for flight movements throughout the day during this period, sources said.

Apart from the Helipad Exhibition Centre at Gandhinagar, seminars and B2B meetings were scheduled to be held at Mahatma Mandir located a kilometer away. Static displays and live performances, including live demonstrations, were to be held on Sabarmati Riverfront where a viewing deck was also set up.

Foreign defence manufacturers, including Rafael Advanced Defence Systems, Israel Aerospace Industries Ltd, Northop Grumman Corporation, Boeing, Lockheed Martin, Airbus, among others have taken up space at the helipad grounds for their respective exhibits. Over 1000 exhibitors from 70 countries are expected to participate during the event. Indian players in defence sector like Larsen & Toubro Ltd, Ashok Leyland Ltd, Tata Advanced Systems Ltd, Mahindra Defence Systems Ltd, Adani DefenceSystem and Technologies Ltd Kalyani Group, Armoured Vehicles Nigam Ltd, Avadi, Chennai, Advanced Weapoms and Equipment India Ltd, Cochin Shipyard, Mazagon Dock Shipbuilders Ltd, Garden Reach Shipbuilders and Engineers Ltd. are among those who were expected to display their products at the exhibition that will have a “India pavilion” and a “Gujarat pavilion.”