Government may shelve Indian Air Force’s $2 billion Avro replacement project

[Major Shaitan Singh]

The $2-billion pilot involving the private sector for manufacture of a new fleet of transport aircraft for the Indian Air Force is floundering and could be shelved by the Defence Ministry that is reviewing the requirement as well as the bidding process.

The government plan to involve only the private sector in the replacement programme to create an alternate aviation industry besides state-owned Hindustan Aeronautics Limited had not garnered much response last year when only one bidder emerged for the Avro replacement project – an Airbus-Tata consortium offering the C295 medium transport airlifter.

The defence ministry has now set up a specialised committee to review the programme and to evaluate why other private players did not come up with bids for what was considered as the largest project given entirely to Indian players. Preliminary indicators do not look positive for the Airbus-Tata alliance with a strong view that the tender has to be rebid with a new set of conditions that would make it easier for other players to come in.

An upcoming change in the buy Indian category of defence procurement policy that will have specialised rules for `Make in India’ could be used to push the project forward for a re bid. Under the new set of rules the lead for the project could be taken by the Indian company, instead of the foreign vendor.

However, IAF will have to convince the Defence Ministry on the requirement of 56 transport aircraft to replace its ageing fleet. While the UPA government had cleared the project, the Parrikar-led ministry has questioned the need for a replacement given that parallel projects for medium transport aircraft are already being pursued. While the AN 32 fleet is being upgraded, India has C-130 J airlifters in service and is expected to order them in greater numbers.

 

[he-man]

Courtesy the stupid HAL that raised objections through its retired members months back.

 

[IND151]

Hope MOD takes right decision.

 

[ni8mare]

question is do we need avro replacement ?

Courtesy the stupid HAL that raised objections through its retired members months back.

 

[sancho]

The $2-billion pilot involving the private sector for manufacture of a new fleet of transport aircraft for the Indian Air Force is floundering and could be shelved by the Defence Ministry that is reviewing the requirement as well as the bidding process.

The government plan to involve only the private sector in the replacement programme to create an alternate aviation industry besides state-owned Hindustan Aeronautics Limited had not garnered much response last year when only one bidder emerged for the Avro replacement project – an Airbus-Tata consortium offering the C295 medium transport airlifter.

The defence ministry has now set up a specialised committee to review the programme and to evaluate why other private players did not come up with bids for what was considered as the largest project given entirely to Indian players. Preliminary indicators do not look positive for the Airbus-Tata alliance with a strong view that the tender has to be rebid with a new set of conditions that would make it easier for other players to come in.

And another reality check for the decisiveness and fast tracking of the new MoD. After LUH, P75I, this is the 3rd large modernisation contract that is about to be scrapped! The benefit of having the FM as the DM for 6 month, all the Modimania and having the ease of governing with a full mandate, didn't gave Indian forces any improvement for the defence procurement.

 

[Bang Galore]

And another reality check for the decisiveness and fast tracking of the new MoD. After LUH, P75I, this is the 3rd large modernisation contract that is about to be scrapped! The benefit of having the FM as the DM for 6 month, all the Modimania and having the ease of governing with a full mandate, didn't gave Indian forces any improvement for the defence procurement.

What do you do in a single vendor situation? Especially if you have created it by barring HAL. How do you determine the best price? There is quite clearly the worry of the CAG.

 

[sancho]

question is do we need avro replacement ?

We certainly do, because IAF needs a a transport aircraft that is cheap to operate for it's logistical needs. India is a huge country and has a huge ammount of forces and bases that needs to be supplied with basic cargo or simple passenger transport. That is the low end that today the AN 32 mainly does and where the Avro is simply not capable enough. So by replacing the Avro, we are not replacing the limited capabilities of that aircraft, but the low end logistical side of the transport fleet.
The MTA is a class above that and more aimed on tactical transport roles, rather than simple logistcs. It's size and the 2 jet engines obviously will make it more expensive to operate compared to an AN 32 / C295 too. So we need 2 aircrafts at the low to mid level, but they need a comittee first to understand that it was silly to limit the avro replacement deal only to IAF, instead of combining the similar needs of different forces, just as it was silly to keep HAL out, when India needs real competition between state owned and privat industry, not the preference of one side only.

 

[Abingdonboy]

And another reality check for the decisiveness and fast tracking of the new MoD. After LUH, P75I, this is the 3rd large modernisation contract that is about to be scrapped! The benefit of having the FM as the DM for 6 month, all the Modimania and having the ease of governing with a full mandate, didn't gave Indian forces any improvement for the defence procurement.

Indeed, a govt that claims national security is a one of their key priorities they have done little to put their money where their mouths are. Still no OROP, still no new DPP, only a very modest increase in defence spending, still no Rafale deal, still no tri-service SOCOM, Cyber or space commands and deal after deal being scrapped/re-tendered.

The DM keeps bragging about how he has cleared 50,000 BPJs- so what?


They talk a big game but what have they actually changed? What actions have they taken that have had a tangible benefit on the military? Practically nil.

The MoD/DM scrapped the LUH/RSH deal and are now trying to dupe India by promising the replacments for the Cheetak/Cheetah that are killing Indian personel on a regular basis, are on their way!


They talk a big game but they have squandered their considerable mandate and the national security of India is no better off.

What do you do in a single vendor situation? Especially if you have created it by barring HAL. How do you determine the best price? There is quite clearly the worry of the CAG.

Because India has never undertaken a govt-govt deal?

 

[Bang Galore]

Because India has never undertaken a govt-govt deal?

This wasn't it. Once a tender has been called, it becomes difficult for the government to accept a sole vendor. Especially in this case where HAL has been kept out. Opens the government to the allegation of favouring the sole vendor.

 

[sancho]

Still no OROP

The recent statements on that are also pretty strange. Jaitley said he has provided the fundings and it's on MoD to pass it. Parrikar said recently at Headlines Today, that it's needs to be pushed through defence finance and then goes to Finance Ministry again. So not even that, that is only dependent on proper decisions of the ministers, is getting through in a fast and easy way.

 

[he-man]

Indeed, a govt that claims national security is a one of their key priorities they have done little to put their money where their mouths are. Still no OROP, still no new DPP, only a very modest increase in defence spending, still no Rafale deal, still no tri-service SOCOM, Cyber or space commands and deal after deal being scrapped/re-tendered.

The DM keeps bragging about how he has cleared 50,000 BPJs- so what?


They talk a big game but what have they actually changed? What actions have they taken that have had a tangible benefit on the military? Practically nil.

The MoD/DM scrapped the LUH/RSH deal and are now trying to dupe India by promising the replacments for the Cheetak/Cheetah that are killing Indian personel on a regular basis, are on their way!


They talk a big game but they have squandered their considerable mandate and the national security of India is no better off.


Because India has never undertaken a govt-govt deal?

Eye opener for modi bhakts,,india needs hardcore structural reforms and not more unplanned expenditure.
So far apart from clearing previous deals this government has done nothing.

In non defence sector the performance has been downright pathetic with no reform being passed.
Just old stuff like GST which was congress idea in first place and ironically stalled by bjp only,same goes for insurance bill.

This wasn't it. Once a tender has been called, it becomes difficult for the government to accept a sole vendor. Especially in this case where HAL has been kept out. Opens the government to the allegation of favouring the sole vendor.

They got to figure some way out.

 

[anant_s]

What do you do in a single vendor situation? Especially if you have created it by barring HAL. How do you determine the best price? There is quite clearly the worry of the CAG.

Well re-tendering is an option. If nobody quotes for tender, then questions can be raised on technical specifications, but scrapping the tender altogether, not only creates doubts on process of specification finalization but perhaps on intent of government too.

And another reality check for the decisiveness and fast tracking of the new MoD. After LUH, P75I, this is the 3rd large modernisation contract that is about to be scrapped!

i may be wrong here but it looks like DM is trying out too many things too quickly. I mean no one would object to Domestic production program, but he must understand and prioritize certain requirements that cannot be delayed any further and take a call even if it does not comply with Make in India theme. Let deals start moving in, technology input and maturing of domestic industry will automatically happen.

 

[Abingdonboy]

Eye opener for modi bhakts,,india needs hardcore structural reforms and not more unplanned expenditure.
So far apart from clearing previous deals this government has done nothing.

I've been saying it for a while now- the defence budget is sufficent in monetary terms but as a direct reuslt of mismanagment the military's modernisation efforts are in a complete shambles. Look at all defence deals pending today- CH-47F, AH-64E, A330 MRTT, M-777, Rafale, S-70B etc for one reason or another all of these deals are YEARS behind schedule and payments should have been made on all of them a long time back, instead the MoD has been RETURNING billions of USD every year to the Fin Min! This is criminal!!!

 

[he-man]

I've been saying it for a while now- the defence budget is sufficent in monetary terms but as a direct reuslt of mismanagment the military's modernisation efforts are in a complete shambles. Look at all defence deals pending today- CH-47F, AH-64E, A330 MRTT, M-777, Rafale, S-70B etc for one reason or another all of these deals are YEARS behind schedule and payments should have been made on all of them a long time back, instead the MoD has been RETURNING billions of USD every year to the Fin Min! This is criminal!!!

Which brings us to question

How will we manage to sign all these deals simultaneously??
Its not a troll question.

 

[Donatello]

And another reality check for the decisiveness and fast tracking of the new MoD. After LUH, P75I, this is the 3rd large modernisation contract that is about to be scrapped! The benefit of having the FM as the DM for 6 month, all the Modimania and having the ease of governing with a full mandate, didn't gave Indian forces any improvement for the defence procurement.

P75I...the submarine project, is scrapped?