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India Seeks Foreign Partner for Airlifter Plan

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India Seeks Foreign Partner for Airlifter Plan
http://www.defensenews.com/story.php?F=2922899&C=airwar

India is seeking a new foreign partner for its Multirole Transport Aircraft (MTA) program, a long-delayed cooperative effort launched in 2002 with Russia.
During the week of July 23, prime contractor Hindustan Aeronautics Ltd. (HAL), Bangalore, invited U.S. company Gulfstream, Alenia Aeronautica of Italy and Brazil’s Embraer to propose terms.
Responses are expected within two months, and eventually HAL will submit a plan to the Cabinet Committee on Security here.
Once approved, the plan would likely be funded in the next financial year by the Indian Air Force, the executive said.
What Went Wrong?
A senior HAL executive blamed the delay partly on Russia’s refusal to commit money, and said the deal was dead.
A Russian diplomat in New Delhi said no deal had been reached in several series of talks between Russia’s arms export agency, Rosoboronexport, and the Indian Defence Ministry. The diplomat did not indicate when the deal might be finalized.
India and Russia agreed in 2002 to create a 50-50 joint venture, with HAL contributing $300 million, and a coalition of Irkutsk Aviation and Industrial Association, llyushin Aviation Complex and Rosoboronexport an equal amount.
Under the proposed MTA program, Russia would buy 100 15-ton aircraft and the Indian Air Force 110, with an option for India to buy 100 more for the Indian Army and other security forces.
An Indian Defence Ministry official said the deal is not dead, but confirmed that Russia had yet to fund its half of the effort.
According to ministry sources, HAL’s search for other partners means the Indo-Russian MTA is unlikely to take off.
If the MTA program cannot be restarted with another foreign partner, the HAL executive said, then the Indian Air Force would seek a foreign plane to fill its needs.
“The program, if not started now, would in any case die its own death,” the executive said. “That is why it is important to go ahead with the program and co-produce with overseas partners, including the Western companies.”
 
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