India finalises contract with American GE for 99 aircraft engines

[God of Death]

India finalises contract with American GE for 99 aircraft engines


The only thing left before India signs the estimated $800 million deal with GE Aviation for 99 GE-F414 engines now, is the clearance from the Cabinet Committee on Security (CCS).

The Price Negotiation Committee (PNC), which was set up late 2010 after GE had nipped Eurojet to become the lowest bidder, has recently finalised the deal after having surpassed all the hurdles before it and the file is now expected to go to the CCS anytime.

The PNC, comprising representatives from the Indian Air Force (IAF), the Navy, the Ministry of Defence (MoD), Hindustan Aeronautics Limited (HAL), Aeronautical Development Agency (ADA) and the Defence Research Development Organisation (DRDO) negotiated with GE and the US government for over 15 months before coming to a conclusion.

GE had been, in September 2010, declared the lowest bidder over Eurojet’s EJ200 to power the Mk-II version of India’s Light Combat Aircraft (LCA)—tejas–but there were a lot of issues that had to be resolved before the PNC could finalise the contract details.

Euroject, sources said, had actually quoted a lower price but had not included a lot of things in their quotation—allowing GE’s proposal to be considered the most viable.

The PNC though stuck to its stand that it would not be a viable move for India and has finally convinced the US against such a payment. Two other important issues that were dealt with by the committee were, GE wanted India to sign the deal with one of its subsidiaries and not with it, citing various reasons and GE wanted India to agree to pay liabilities in case the IAF used aircraft powered by these engines to carry nuclear weapons

and in case that crashed in Pakistan.

India was not keen on both the propositions. “...We had cleared the engine that was proposed by GE and not any of its subsidiaries for us to consider that.We wanted the company which responded to the RFP to be responsible,” a source from ADA said, adding that GE has been conviced to even drop the clause that requires us to pay liabilities.

The decision to finalise the contract, sources said, was taken in a meeting held on January 22 and that the MoD is waiting for an occassion to announce the same.

When the deal comes through, which sources said is very likely to be cleared by the CCS, GE would ship 18 engines that could be straight away used and the remaining will be manufactured by HAL as it gets versed with the required technology, besides, GE will also help India integrate the engine with the airframe of the LCA.

India finalises contract with GE for 99 aircraft engines

 

[Tshering22]

Guess the Tejas mk2 is taking shape.. hence the contract got cleared.

 

[Bl[i]tZ]

Guess the Tejas mk2 is taking shape.. hence the contract got cleared.

+1 There are only 40 LCA Mk.1 aircraft on order. We had purchased 24 IN20 engines for installation on the first 20 production aircraft. The Tejas Mark II will be equipped with the GE F414 engine. The IAF has committed to procuring an initial 83 Tejas Mk2s, so 99 engines makes sense.

 

[pmukherjee]

GE wanted India to agree to pay liabilities in case the IAF used aircraft powered by these engines to carry nuclear weapons
and in case that crashed in Pakistan.

These guys really think of every thing and some very weird things, don't they? With conditions like these it is a wonder that any contract gets finalised at all.

 

[Hulk]

These guys really think of every thing and some very weird things, don't they? With conditions like these it is a wonder that any contract gets finalised at all.

I agree duniya kee thekedari lene kii adat hai jiske karn they are loosing business.

 

[Bl[i]tZ]

India was not keen on both the propositions. “...We had cleared the engine that was proposed by GE and not any of its subsidiaries for us to consider that.We wanted the company which responded to the RFP to be responsible,” a source from ADA said, adding that GE has been conviced to even drop the clause that requires us to pay liabilities.

Both were dropped, that's what matters.

 

[Kazhugu]

$80+ million for a single engine...or am I missing something ?

 

[Bang Galore]

$80+ million for a single engine...or am I missing something ?

Yup, Maths! 800/99 = 8+ million approx.

 

[Tshering22]

[

These guys really think of every thing and some very weird things, don't they? With conditions like these it is a wonder that any contract gets finalised at all.

See the thing is these sort of contracts were agreeable to nations that had no economy, no structure of their own. Either them or demographically and nationally same countries what we commonly group as "the West". With USSR gone, most countries became comfortable operating in US comfort zone so these types of contracts were famous. But after WOT began and recession happened, coupled with massive growth in Asian and Latin American economies, this was seen as a roadblock to independent usage.

The logic is very simple: You go to a general store for say, some batteries. You ask for them to the storekeeper. Once you pay its full price upfront, does the shopkeeper have the right to dictate to you how you use those batteries?

Even if once or twice, the shopkeeper manages to dictate, do you think he would continue to get business no matter how advanced his product is?

What's the use of super-duper advancement when you cannot use it without your seller's nod? This was one thing that our governments expressed clearly; they said, "we don't take military aid, we pay full amount for what we buy, and after we buy, you have no right to tell us how to use it. Take it or leave it."

This attitude must have been noted by other countries like Brazil who have started looking into this aspect.

 

[T90TankGuy]

GE wanted India to agree to pay liabilities in case the IAF used aircraft powered by these engines to carry nuclear weapons

and in case that crashed in Pakistan.


i was so shocked at reading this. will someone please tell them we do not drag any and everyone to court at a drop of a hat.

 

[Ammyy]

And American still think that we will bought their fighters ????

 

[Sadhu]

After reading this report i wonder Can Tejas carry a nuclear Missile ? I mean can it crash in pakistan accidently while carrying a live nuclear warhead which it took out just for a fresh air coz u see we have no enemy in that region expect u know who????

 

[My-Analogous]

After reading this report i wonder Can Tejas carry a nuclear Missile ? I mean can it crash in pakistan accidently while carrying a live nuclear warhead which it took out just for a fresh air coz u see we have no enemy in that region expect u know who????

And same thing vise versa, but difference is that we don't have to pay any thing

 

[ARCHON]

120 kn plus ... its gonna supercruiseeeeeeeeee

 

[God of Death]

120 kn plus ... its gonna supercruiseeeeeeeeee

When Tejas will come out with AESA and other stuff it will be strategic surprise.

---------- Post added at 11:58 PM ---------- Previous post was at 11:56 PM ----------

And India will build these engines in India itself.