MMRCA 2.0 RFP pushed to 2019
Uncertainty over the new strategic partnerships process is expected to delay progress

Art: Saurabh Joshi/StratPost

The Request For Proposal (RFP) for the second iteration of the Indian Air Force (IAF) search for fighter aircraft can not be expected to be issued before the middle of next year.

Even if an expression of interest is issued earlier, the most substantial challenge in the formulation of the RFP for 110 fighter aircraft is the incorporation of the industrial cooperation program under Chapter 07 of the Defence Procurement Procedure (DPP). Chapter 07 lays down the requirements for strategic partnerships with Indian companies and, published only last year, has never actually been implemented in any form before.

The next step in the process has to include the industrial program.

As such, although the defence ministry has appointed legal advisors and consultants (SBICAP) to assist with configuring the requirements and process of selection for strategic partnerships, much work remains to be done.

While it is not impossible that the IAF might have made some progress to achieve clarity on the technical parameters it will require from its selected aircraft, the formulation of the industrial and partnership program is outside its area of expertise.

It is also not clear who will be responsible for putting together the industrial and partnership program. “HAL has a vested interest, DRDO doesn’t want it to happen at all,” commented one bemused representative of a fighter aircraft manufacturer, who added, “IAF has no idea about industrializing the program. Nor is it the task of an air force.”

There are also serious doubts about the strategic partnerships concept. “It’s a political product not a practical policy. Such an acquisition process should be implemented to achieve the failed goals of the previous MMRCA. This should be used as way to bring HAL (Hindustan Aeronautics Limited) to the next level,” he said.

The new process still has to deal with the old, unresolved problems of the last MMRCA. “They still have to figure out what to do about guarantees and liabilities. They gave up on this the last time but they still have to find an acceptable solution, especially since the Indian strategic partner is expected to be the prime bidder. Do they expect us to transfer technology for them to absorb and manage? Who, then, will guarantee the aircraft? It’s a brand issue for us as well. Not to mention management and quality control. Expecting a new and inexperienced Indian company to effectively exercise control over aerospace manufacturing is an amazing display of naiveté,” he explained.

“Again, the same problem will arise of the aircraft being more expensive if produced in India. This was one of the reasons given for dropping the idea of license production of the previous MMRCA by HAL. This still has to be sorted out,” he concluded.

So what do you think?

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