Our pseudonymous analyst Mark is back with his take on the story so far of the IAF’s quest for fighter aircraft. He last contributed a much talked-about two-part analysis of the MMRCA tender in April 2012.
Defence Minister Manohar Parrikar has completed one year in office but defence preparedness and military modernisation continue to require his urgent attention, says Brigadier Gurmeet Kanwal (retd) in an annual report card.
Dassault can wait to have their way in the MMRCA negotiations knowing the aversion of the IAF and defense ministry to a re-tender, unless the defense ministry walks away from the table itself, first.
The India-Japan Joint Working Group (JWG) have held preliminary meetings to initiate the process for acquisition of the ShinMaywa US-2i amphibious aircraft for the Indian Navy.
In a statement issue today, the company said it was left ‘with no other option but to invoke arbitration through Counsel’. It said this came after it made several requests to the defense ministry for invoking bilateral discussions as provided in the contract.
These changes are skewed to favor and encourage defense industry in India, some of which appear to have been influenced by reactions to corruption scandals. Do have a look at the list of changes, copied and pasted, verbatim, from the defense ministry press release.
The program was for the procurement of 56 aircraft of which 16 would be delivered off the shelf by a foreign manufacturer and 40 were to have been manufactured in India. Indian industry has found the order to be too small to justify the capital expenditure.
Life Cycle Cost was not a consideration in the earlier contest, in which the Airbus A-330 MRTT was selected over the IL-78, before the tender was withdrawn. This time the factor is expected to be a key determinant of the acquisition cost of the two aircraft.
StratPost tweeted facts about the Indian Air Force (IAF) tender for 126 Medium Multi Role Combat Aircraft (MMRCA) and the participating aircraft last week. Here they are on a single page, for easy reference. And please feel free to add any more in the comments. They will be updated on this page.
Minister of State for Defense Mallipudi Mangapati Pallam Raju: “There is tremendous potential for enhancing the defense industry cooperation between the two sides, particularly in the context of defense offset policy, the scope of which has recently been increased.”
Assuming both surviving vendors, the four-nation Eurofighter consortium and France’s Dassault, had managed to match the budget of INR 42,000 crore in their own currency when they submitted their bids, today that amount would escalate to over INR 50,000 crore.