That's a DF loop. It's not used in the game by default and DF is generally simulated by the random map contacts you get.
It's raised animated in both SHIII and SHIV mods though. I suppose it might eventually make it to SHV as well. It doesn't do anything other than spin in the game - I don't think there is any mechanism in the game to make actual DF functional as it would've been in reality.
[edit] Nope, not radar. Just a direction finder to catch the exact bearing from which radio signals are coming from (from ships at sea for example).
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