Source based news about LM offer
(first reported about the meeting in The Hindu newspaper)
- Meeting between Marilyn Hewson and FM Arun Jaitley happened last week for over 20 mins
- LM latest discussion suggested that India become the global MRO for F16
- The assembly line transfer will be completed in less than 3 years
- The first F16 will roll out by 3.5 years from the date of signing the FMS deal from Indian assembly line
- The F16 will be customized as India wants and will sport indigenous weapon systems like Astra BVR
- Indian order will be further divided into exclusive access to the following
- 75% of the F16 order will be eligible for F35 purchase under reduced rates post 2022
- 66% of the F16 order will be eligible for a new fighter F22 E (exports) post 2020-22. to be purchased by only handful of nations (5 in numbers as of now with Japan and India and 3 others with limited purchases)
- The export version of F22 E will be first lucrative point of technology being shared between USA for Japan 5th gen program and India's AMCA.
- There would be senate approvals required and the export version will have downgraded specs but potency of the F22E vs F22 is not yet defined.
- India will need the foundation agreements adherence completely.
- It was noted that F16-F35-F22E the whole deal structure has evolved a lot but still need more concrete terms on the same.
- FM AJ assured that PM NaMo and DM MP will be appraised about the whole deal structure and he hoped that LM will provide India with a 'meaningful' and 'substantial' technology transfer in any aircraft deal.
- FM AJ discussed the above discussion points with DM MP.
- DM MP has told LM representative of what his expectations are ..
- To a pointed question about what is the real chance of F22E as it has been in news for some time, LM folks defined that they are studying market prospects and believe India and Japan alone can consume around 150 such devices and net 5 country potential as of now stands close to 250 odd numbers. This number may be further expanded when more Nato allies join in for the F22E orders.
- LM was cited a recent example that an aircraft major is willing to invest in domestic engine program. So what is the possibility that LM also does the same and makes a family of Engines which can power all the 3 (F16,F35 and F22E) thereby getting India a high indigenous number.
- LM reply to this was they need to study more to understand if such an arrangement can be made or not as they feel all 3 jets required too much different class of engines.
- A family of engines supporting all different types of fighter jets and which can also power our AMCA program is one of the key points which India is looking at.
- Also India explicitly asked for Radar, Stealth, Communication, Reduced detection capabilities, RAM technology and armaments to be completely shared with partial codes for any meaningful offer.
- Again on this point, LM needs clarity from US government and Senate.
- To a pointed question on weapon customization, LM said present US weapons latest versions would be supplied and Indian weapon customization can be done. To this DM MP clearly asked without codes being shared how can India configure Astra and NG ARM etc and recertify the plane.. LM did not reply to that.
It looks like DM MP wont agree for the LM deal at present structure due to uncertainity and lack of clarity on terms.
F22E is like a carrot dangled for the fact that India has not fallen for the F35.
India is very close to freezing FGFA project investments and release the funds. Talks are already going on for PAKFA stage 1 some numbers for procurement in 2021-25 period before stage 2 FGFA is made in Indian assembly line. The efforts seems to undercut this PAKFA stage 1 numbers by pitching in F22E
One thing what is clear is that despite of public campaigns by LM and Saab, DM MP seems a man who had not fallen for such facade and is bargaining hard to see how much willing LM, Saab and perhaps Boeing is in reality willing to offer a good economical package to India. With terms as desired by India and are agreeable to Indian side without giving up control, access and shelling out a blank cheque.
@Abingdonboy @anant_s @MilSpec @Vergennes @Taygibay @Nilgiri @Stephen Cohen @BON PLAN @dadeechi @others