India to buy 60-63 Rafales jets off the shelf from France; MMRCA deal off:

[salarsikander]

This is an opportunity for both Eurofighter and Rafale to make a pitch of "make in India", select their own partners and make a direct pitch to MoD and GoI

The offer with the maximum offset and lowest price gets the new deal

And wait for another 10 years ?

 

[doublemaster]

Present deal was much easier to establish than the previous one which had to make in India. Would have been great if old one was worked out. Especially when rafale would have been in difficult times.

 

[PARIKRAMA]

Now looks like MoD willing to go for 100 tejas and so can reduce the next batch order (if we go for) from 124 to 90 something jets or less . So Migs can be pulled out of service .By that time of 100 tejas or at least previously rumoured 80 in total can be done when Tejas 2 enters production .

i believe Teja is now enterming what is known as Mk1 to Mk1.5 stage where certain upgrades closer to Mk2 version may be reworked into Mk1 itself (hence Mk1.5). Certainly it makes sense if the LCA Mk1.5 at least 4 -5 Squadrons are ordered ncz then it gives the breather space for MK2 plan. I am not sure if Mk1.5 should do 1:1 replacement of Mig21. As i believe Mk1.5 should be max 5 squadrons and training purpose perhaps another 1 squadron but Mk2 should be closer to 8-10 squadrons.Thereby showing a carrot to HAL too.

Except Submarine nuclear reactor . Which I guess will be drawn out from Akula . We had very detailed discussion on this before few weeks ago .

You are correct as i also assume akula 190 MW design (OPK650) but K15 caught my fancy perhaps bcz of size (its smaller) K15 reactor is rumoured to be at 50MW so its 3 units together powering upto 150 MW. But then thats for a different thread so i will stop about that here only.

 

[Ind4Ever]

i believe Teja is now enterming what is known as Mk1 to Mk1.5 stage where certain upgrades closer to Mk2 version may be reworked into Mk1 itself (hence Mk1.5). Certainly it makes sense if the LCA Mk1.5 at least 4 -5 Squadrons are ordered ncz then it gives the breather space for MK2 plan. I am not sure if Mk1.5 should do 1:1 replacement of Mig21. As i believe Mk1.5 should be max 5 squadrons and training purpose perhaps another 1 squadron but Mk2 should be closer to 8-10 squadrons.Thereby showing a carrot to HAL too.


You are correct as i also assume akula 190 MW design (OPK650) but K15 caught my fancy perhaps bcz of size (its smaller) K15 reactor is rumoured to be at 50MW so its 3 units together powering upto 150 MW. But then thats for a different thread so i will stop about that here only.

How did I missed that. Thanks man . I forgot to mention a point of ManPar .
These are his words : Tejas can be inducted in numbers. But not IN CURRENT configuration but with improvements ."
I was wondering what me ment by that . May be 1.5 is the answer as we already tested satisfied with Tejas performance. That's a lot of confidence boost . Wonder what it might be . By few weeks we can expect some clear picture I guess . And he said it too that in few weeks clear details will be available

And ya SSN reactor is done deal . We will go for Akula blue print when it's avail with in the country . Now we will get second hand old SSN as 2nd lease which will be for full patrol duty and chakra can be utilised for study .Let's leave it here . And focus on decoding our PM/DM mind

French might agree to 30% offset for Make in India initiative !!! Indian and French source .

As reported before talks have already began in France . Between Hollade , Hal officials , dassault official, PMO MoD... Some insight into the deal .... !!!

The over USD 6 billion deal for 36 Rafale jets is likely to have a 30 percent offset clause valued at nearly USD 2 billion that the Indian private industry will be eyeing.

Even though speculation had risen whether the clause would be included in the government to government deal, Indian as well as French sources said that there will at least 30 per cent offset clause.


Representational image. AFP

Offset policy was first introduced as part of the Defence Procurement Procedure (DPP), 2005, under which a foreign company has to invest back a portion of the deal into India.

The DPP, 2013 indicates that the objective of the Defence Offset Policy is to leverage capital acquisitions to develop Indian defence industry by fostering development of internationally competitive enterprises.

It also aims to do it by augmenting capacity for research, design and development related to defence products and services besides encouraging development of synergistic sectors like civil aerospace and internal security.

The offset clause will work out to be around USD 2 billion. During the government to government talks, the offset obligation will also be finalised, defence sources said.

They pegged the deal at over USD 6 billion including the cost of the 36 aircraft, armament and spares.

Sources pointed out that previous government to government sale route also had offset clauses.

"The private sector will substantially gain from the offset part of the Rafale deal," a senior executive of a leading corporate group said.

The criticism against the government to government deal between India and France for 36 Rafale jets was that it does not bring manufacturing and jobs to India.

Sources said the government is likely to insist Dassault Aviation, the manufacturers of Rafale, to rope in the Indian private sector, a global chain supplier to Dassault and its associates.

Defence Minister Manohar Parrikar had yesterday insisted that the deal for 36 Rafale jets does not mean that 'Make in Indian' programme has been set aside.

He said everything will depend on the quantum of the jets that India would eventually be interested in, besides the 36 and the terms and conditions agreed to once the negotiations start.

ONE THING IS FOR SURE . WE ARE MOVING FROM LEAN AND MEAN AIRFORCE TO BIGGER AND BETTER AIRFORCE ..

Remember these words ?

"We will make Indian Armed forces in such away that any country must not dare to look into our eyes "

From defensive to offensive defence !!!

 

[The_Sidewinder]

@The_Sidewinder wtf ? Roller coaster ride once again

I say bring it on. There wont be just 36.Rafales to be honest. IAF is not a rag tag airforce that GOI will cap such a high.end aircraft to just two squadrons. When DM talked about .other aircrafts as options, that to keep Franch govt on their toes. No sane govt will let go any opportunity to sell such a high no of highly priced birds. A larger export order only enhances Rafales reputation. GoI will aqcuire minimum 5-6 squadrons. LCAs will make up rest of the no for now. Dassault were playing a hardball on TOT issue which is a masnufacturers wet dream, its golden goose. Now that opportunity seems gone. So dessault will try hard again to gain the leaverage through MAKE IN INDIA. I can bet a fortune on it.
Bro Rafales are coming & they will come in numbers.

About Tejas Improvement, a better radar with minimum 150 km range is a must. By commiting Rafale to a private player, it opens up opportunity for setting up.additional assembly line. We can certainly buy LCA Mki in quantity (100+) & letter upgrade them to Mkii status. With lower rcs & better weapons package, it can certainly be a game changer over Indian skies.

 

[Thorough Pro]

after 10 years of painful pregnancy punctuated by periodic spells of euphoria and orgasm the out come is just a silent stinky whiz of air. LOL

Poor Indian government don't have money to afford the mother of all defence deals, and poor Indian fan boys tch tch tch

 

[Dillinger]

Let's keep heli carrier out for moment . But how are you sure IN not interested in Rafale M for our next flat top carrier ? When Indian Navy have legally asked for RFI on Rafale M from dassault ? Which they have already submitted reply with IN recently if I may recall or if I am not wrong during later half of January 2015 ... CONFORMED BY DASSAULT chief himself.

Indian Navy Submitted an RFI to Dassault about the Rafale M Carrier Capable Variant


Dassault Aviation chief executive officer Eric Trappier announced yesterday during a press conference that the French company has replied to a request for information from the Indian Navy on the naval Rafale M single-seat carrier-capable variant of its fighter.

Indian Navy Submitted an RFI to Dassault about the Rafale M Carrier Capable Variant

Mig 29 K is a capable and most successful candidate too. But when IN can get more capable jet like Rafale M what's wrong with that. As of now 36 Rafale will be bought by IAF . Anyway we will have infrastructure for its maintenance purpose in India for sure . So logistics will be taken care of .


Wonder how you claim Rafale won't be operated on Vishal when Navy shown keen interest on them . Later conformed by assault Aviation chief executive officer Eric Trappier announced yesterday during a press conference.

I never said that the IN is "not interested" in the Rafale; I stated that it would not be feasible for the IN to operate the Rafale-M in light of the fact that they already have 2 fixed wing combatants (with the the N-LCA yet to be inducted) in their carrier air-wing. So, as I said, the IN will either have to stick to the Mig-29K for the foreseeable future (in which case the Vishal will have to be a hybrid- STOBAR+CATOBAR- design much like the projected Chinese carrier) or the IN will have to undertake an expensive restructuring of the air-wing; it is because of these reasons that I am quite sure that the IN will not end up operating the Rafale of its carriers. The forces have issued many RFIs over the years, but interest in a platform hardly translates to any modicum of surety that the platform will be acquired.

At the moment that IN's budget leaves no space for additional capex, furthermore, the IN has its own share of committed liabilities as well as projected acquisitions (since my job tilts me towards the financial angle I would enjoin you to take a look at their books too) and thus is in no position to strain said budget in the foreseeable future.

Now does this mean that a restructuring of the air-wing is impossible? No, it very well could occur, but the IN is only likely to pay the attendant price if the reward is similarly disproportionately large- a generation jump in the deployed platform.

 

[The_Sidewinder]

after 10 years of painful pregnancy punctuated by periodic spells of euphoria and orgasm the out come is just a silent stinky whiz of air. LOL

Poor Indian government don't have money to afford the mother of all defence deals, and poor Indian fan boys tch tch tch

lol...

No wonder you are happy.

 

[uparyupari]

As I said, they also offered to transfer the entire M2K production likne to India in 2001. It was our stupidity not to grab the offer with both hands.

Your statement that Dassault hasn't agreed to manufacture its aircrafts anywhere else "in it entire history" is very very wrong.

BTW, how many fighters have they produced, between the Mirage-III family and the M2K?

Seems like they have agreed to manufacture every aircraft they made since the 1960s, outside.

I know, I was talking about their 2001 offer.

You are avoiding the question. HOW many aircraft's has dassult built outside France after 1963 ?

Offers mean NOTHING. Especially if they are designed to ensure that its too expensive for anyone to consider it seriously.

See its clear that PM Modi one on one had clearly stated that India is very interested in Rafale and would like to make the entire MMRCA tender of 189 birds purchase work. But certain complexities like
1. the actual cost of TOT transfer (setting up the unit and supply tie ups)
2. the cost of production by HAL (higher cost quoted 2.7 times French produced rafales in terms of manhours)
3. In ability at present to absorb certain hitech like example GaN modules in Aesa radar (Semiconductor industry maturity still not upto that level)

Thus it was very clear that previous government when they realised all this sat on the process for 2+ years as they realised that the potential is immense under 50% offset but perhaps the present defence aero complex may still need more maturity to undertake such a epic technological upliftment required for Rafale.

Translated all this would add cost to Rafale production in India by HAL under MMRCA.
So the alternative is to do away MMRCA and perhaps produce Rafale under Make in India via tie up with Dassault thru G2G route.

the critical question: How will rafale produced by Reliance tie up or any private/ JV tie up would be cheaprer.
The answer is very very simple.
1. offset clause would be 30% not 50% stipulated under MMRCA
2. TOT of critical tech would not be forced upon (straight forward drop in cost)
3. Most importantly it would be ASSEMBLED (via kits) in the Reliance facility (perhaps in Gujarat)
4. The deal may be seeing complementary positions by Ambani brothers - Mukesh taking the assembly and ANil perhaps the MRO or may bewhatever they can share together cohesively.
5. 30% offset means certain localisation which Dassault needs to stick through in letter and spirit (not just simulators) and here comes the push from France government to adherance and review part
6. Weapons package also partially would include indian partners + the MRO business.

This plan is what i believe PM Modi had clearly talked with President Hollande but without taking Reliance 's Name.

Now President Hollande was impressed with 2 points
1. India's wishes to buy Rafales in good numbers
2. It wants hollande meaning French government help as it feels Dassault keeps personal corporate interests first whereas India- france both governments think much beyond that and takes position due to strategic partnership we share together

Of course its a very good news for Hollande as now unemployment and Dassault orders would certainly mean that it is french government which saved Dassault from losing the biggest deal of its lifetime and Hollande position (political) is strengthened with such a good lucrative deal. By reciprocating to PM modi's discussion positively and nudging according to the plan, Make in India is also satisfied. IAF is also kept happy and all the tangles of MMRCA is avoided.

The above interview of Hollande very much makes me feel that this path is what the both leaders have planned.

On top cherry picking would be incase this is actually realised than rumoured Baracuda N reactor help is provided (K15 reactor) which definitely would be potentially the game changer for the N sub project for bigger subs ( this reactor is 150 MW). Not really sure if we would like that reactor help or not as Russian help is already there in 83Mw Arihant. I expect if Hollande convinces a good price route for this Make in India rafale then may be we will see 6 more scorpenes order too..

This my friend is my gut feeling. PM Modi will definitely make some Juggad and ensure 8 years of MMRCA is not wasted but perhaps custom fitted to support his make in India initiative.

G2G also means the foreign govt. politicians gets to pocket the kick back and offer Indian more sweetener to make that happen.

 

[PARIKRAMA]

G2G also means the foreign govt. politicians gets to pocket the kick back and offer Indian more sweetener to make that happen.

Not really true.
You see first time when NDA came into power, the former PM Atal Behari Vajpayee (a man whom i respect a lot for his truthful nature not ideological background) wa very keen to be part of history books and he initiated a lot of things (Nuclear Pokhran, Bus travel to Pakistan, Kargil incursion by Mushraff fightback, Naming LCA Tejas, Golden Quadrilateral (a project thot by Rajiv Gandhi but Vajpayee implemented it) and famous snubbing of Modi for Raj Dharma for 2002 riots, Pravasi Bharatiya, etcetc. Even though Bangaru Laxman or George Fernandez or various other netas of BJP (like ertswhile Late Pramod Mahajan) may have indulged in personal gains the fact remains the PM Vajpayee himself remained a man of integrity and never indulged into corruption. On top he was bounded by the coalition politics yet NDA government (now or earlier both)had far less issues as compared to UPA 1 and 2.
Judging Modi's record as CM (as i was posted in Gujarat for a good time so i had read all local gujarati newspapers too), he is free from Corruption as of now. his hold over the key ministries via close friend Arun Jaitley (a lawyer) and DM Parrikar is well known (MP being IIT guy is well respected by Modi for his logical approach), means he keeps corruption taint as far from himself as possible. I do believe not all NDA MPs have an impeccable record so certainly certain cabinet and perhaps NDA MPs will behave stupidly and corrupt themselves. BUT since MOdi wants to have a bigger legacy then Vajpayee i am sure he would acoid a corruption scam regime like UPAs and hence i dont see any kickbacks or Bofors like scandal chance. Simple reason being, he is smart enough to know it is people of India who made him PM and if he is tainted Congress would make sure he does not get a second term. At present unless certain vested interests destroy NDA with communal statements and work, Modi will remain in power surely for 2 terms. The 1st term performance and patience of people will reward him 2nd term but after that is purely based on performance and perhaps lack of a opposition political leader in true sense (Raga will always remain a prince not sure if he will become king just in position or in true sense).
The only difference bcz of which ppl will feel he is corrupted or tainted or like you stating kickbacks is this cabinet would not sit on proposals forever. It will say Yes or No which is good. better have a decisive government over others who may stagnate or choke the whole policy making and paralyse the nation. So far defence sector had benefitted in 11 months. But other areas of economy as well as parliament needs urgent more attention. They have to make it work properly over adjournments and foollish gossiping of namecalling /tainting/dharnas....if we want a proper economic revival decisions have to be made with least possible delay in time and minimum corruption at all levels.

BTW Euro had a resolution under which all parties indulging in lobbying has to declare all such processes and money spent.. i highly doubt Hollande would take any kickbacks or allow his cabinet to be stained by corruption allegations. He has enough problems already domestically so its not gonna happen again.

Thus, even though your fear is correct but i doubt if it may turn out to be true. If in case it does turn out to be true then even God cannot save our country from repeated disasters brought upon by Men who got corrupted by power.

 

[uparyupari]

Not really true.
You see first time when NDA came into power, the former PM Atal Behari Vajpayee (a man whom i respect a lot for his truthful nature not ideological background) wa very keen to be part of history books and he initiated a lot of things (Nuclear Pokhran, Bus travel to Pakistan, Kargil incursion by Mushraff fightback, Naming LCA Tejas, Golden Quadrilateral (a project thot by Rajiv Gandhi but Vajpayee implemented it) and famous snubbing of Modi for Raj Dharma for 2002 riots, Pravasi Bharatiya, etcetc. Even though Bangaru Laxman or George Fernandez or various other netas of BJP (like ertswhile Late Pramod Mahajan) may have indulged in personal gains the fact remains the PM Vajpayee himself remained a man of integrity and never indulged into corruption. On top he was bounded by the coalition politics yet NDA government had far less issues as compared to UPA 1 and 2.
Judging Modi's record as CM (as i was posted in Gujarat for a good time so i had read all local gujarati newspapers too), he is free from Corruption as of now. his hold over the key ministries via close friend Arun Jaitley (a lawyer) and DM Parrikar is well known (MP being IIT guy is well respected by Modi for his logical approach), means he keeps corruption taint as far from himself as possible. I do believe not all NDA MPs have an impeccable record so certainly certain cabinet and perhaps NDA MPs will behave stupidly and corrupt themselves. BUT since MOdi wants to have a bigger legacy then Vajpayee i am sure he would acoid a corruption scam regime like UPAs and hence i dont see any kickbacks or Bofors like scandal chance. Simple reason being, he is smart enough to know it is people of India who made him PM and if he is tainted Congress would make sure he does not get a second term. At present unless certain vested interests destroy NDA with communal statements and work, Modi will remain in power surely for 2 terms. The 1st term performance and patience of people will reward him 2nd term but after that is purely based on performance and perhaps lack of a opposition political leader in true sense (Raga will always remain a prince not sure if he will become king just in position or in true sense).
The only difference bcz of which ppl will feel he is corrupted or tainted or like you stating kickbacks is this cabinet would not sit on proposals forever. It will say Yes or No which is good. better have a decisive government over others who may stagnate or choke the whole policy making and paralyse the nation. So far defence sector had benefitted in 11 months. But other areas of economy as well as parliament needs urgent more attention. They have to make it work properly over adjournments and foollish gossiping of namecalling /tainting/dharnas....if we want a proper economic revival decisions have to be made with least possible delay in time and minimum corruption at all levels.

BTW Euro had a resolution under which all parties indulging in lobbying has to declare all such processes and money spent.. i highly doubt Hollande would take any kickbacks or allow his cabinet to be stained by corruption allegations. He has enough problems already domestically so its not gonna happen again.

Thus, even though your fear is correct but i doubt if it may turn out to be true. If in case it does turn out to be true then even God cannot save our country from repeated disasters brought upon by Men who got corrupted by power.

I did not say Modi is corrupt or will take kickback.

I said it will provide the FOREIGN politicians to take kickback from the company and provide favours to India for giving them that opportunity.

 

[PARIKRAMA]

I did not say Modi is corrupt or will take kickback.

I said it will provide the FOREIGN politicians to take kickback from the company and provide favours to India for giving them that opportunity.

Oh i replied in both sense domestically as well as foreign. French may be better to deal than other Euro or Russian counterparts. i hope your statement does not turn out to be correct...

 

[skybolt]

 

[Ind4Ever]

Breaking news on Tejas now !!!

DM :" Jas ki maar bhi kaafi hai (Tejas packs a PUNCH) And it's better than Mig21 but has certain limits. Mig21 will be replaced with Tejas or any other single engine fighters . Pushing DRDO&HAL to induct 5/6+ SQUADRONS in the next 4/5 years . This is possible by pushing HAL to its full potential. Which we are doing now. "

However some interpreted this means impending doom for the Tejas project, A Top officials dismissed it by clarifying that the was "just keeping all options open" to make "NUMBERS " with the IAF which is down to just 34 fighters Sq when 44 needed .

Identically the original plan was for 6 sq each for mmrca and Tejas to replace 10 squadrons of Mig21&Mig29 .

Parrikar said "In next 4/5 years we can add about 6 sq, if we push HAL , Which am doing" ( Cracking the wipe )

Tejas MK2 with more powerful specs ll only enters service from 2021 .

So DM pushing for Dr do and HAL to fire all its cylinders when country really needed them . Which is now. Or else We ll look for some other single engine fighter to fill the gap to replace Mig27 (May be Gripin)

For Tejas it's months not years

(TYPICAL TOI CRITICS with half baked potato knowledge on tejas for misinterpreting DMs comment ) Defence minister Manohar Parrikar said “some other single-engine, lighter fighter” other than the home-grown Tejas (above) could also be considered for a "Make in India" project to replace the obsolete MiG-21s.
Text resize:AAA

NEW DELHI: India's defence R&D establishment will have to fire on all cylinders to fast-track the meandering Tejas light combat aircraft, which is still not fully operational or combat ready, if it does not want the Narendra Modi government to critically re-examine the entire project.

The Tejas project, in fact, may even get some competition in the light-weight fighter category. Defence minister Manohar Parrikar said "some other single-engine, lighter fighter" other than the home-grown Tejas could also be considered for a "Make in India" project to replace the obsolete MiG-21s.

Restricting the acquisition of expensive twin-engine French Rafale fighters to just 36 for now, instead of the original plan for 126 MMRCA (medium multi-role combat aircraft), Parrikar stressed he was trying to plug operational gaps in airpower by improving serviceability of "heavy-weight" Sukhoi-30MKIs as well as "pushing" the DRDO-HAL combine to deliver Tejas faster.

READ ALSO: Tejas achieves another accomplishment in Ladakh

"Don't compare Rafale, a top-end fighter, to MiG-21s, which we will phase out in about six to 10 years. The replacement for MiG-21s will be Tejas or some other single-engine, lighter aircraft. Tejas ki maar bhi kaafi hai (Tejas packs a punch) and it's much better than a MiG-21, but has certain limitations," said Parrikar.

Though some interpreted this to mean impending doom for the Tejas project, a top official dismissed it by clarifying the government was "just keeping all options open" to make "numbers" with IAF down to just 34 fighter squadrons when 44 are needed. "There could be scope for a single-engine fighter, which would be much cheaper than Rafale, somewhere between the capabilities of Rafale and Tejas," he said.

Incidentally, the original plan was that six squadrons each of MMRCA and Tejas would replace the existing 10 Mig-21 and four MiG-27 squadrons. Parrikar, on his part, said, "In the next four to five years, we can add about six LCA squadrons if we push HAL, which I am doing."

DRDO-HAL will certainly need to be pushed on the Tejas project since it's critical for self-reliance in defence production. The first Tejas was handed over to IAF on January 17 but it was in "initial operational configuration (IOC)", which signifies its airworthy but not combat-ready. The pilot training and maintenance manuals are also still not ready, delaying its actual induction into IAF.

READ ALSO: India finally gets indigenous LCA Tejas

The fighter's final operational clearance (FOC), with integration of all weapons like guns, laser-guided bombs and BVR (beyond visual range) missiles as well mid-air refuelling capability, is likely to be delayed beyond the re-revised deadline of December 2015.

The Tejas Mark-II version which the IAF actually wants — with more powerful engines, airframe changes, weight and drag reduction — will begin to come in only by 2021 or so. So, Parrikar will need to do a lot of pushing if he wants swifter deliveries of the multi-role fighters.

For LCA Tejas, it’s now about months, not decades - TOI Mobile | The Times of India Mobile Site

 

[PARIKRAMA]

Make in India: Rafale deal may take off as a joint venture between French and Indian firm - Mannu Pubby

NEW DELHI: The government could ask France's Dassault Aviation to rope in an Indian partner to jointly manufacture the next batch of its Rafale fighters in the country as a condition for landing the remainder of the contract, a move it hopes will fulfil the 'Make in India' dimension that could not be met in its off-the-shelf purchase of 36 planes last week.

Sources familiar with the matter said there were initial discussions in the government on whether to press the French firm to sign up an Indian partner and form a joint venture company in which the local firm could own up to 51 per cent stake and this firm could execute the contract to supply the remaining planes.

The sources insisted that these were initial discussions and there was no certainty a final plan would have these contours.

The Indian partner, according to these discussions, would not be restricted to state-run Hindustan Aeronautics Ltd (HAL), potentially opening up the field for private players to step into the lucrative defence and aerospace business. A consortium approach, in which a group of Indian private companies come together with HAL to constitute the Indian ownership, was also being spoken of during these discussions, the sources said, adding that the entire plan was nebulous and could undergo major changes.

The matter will be taken forward after Prime Minister Narendra Modi returns from his foreign visit, the sources said. They requested anonymity because of the sensitivity of the issue.

The selection of Dassault to supply 126 Rafale fighters to the Indian Air Force took place during the UPA regime in 2012, but the deal got bogged down by controversies and political indecision. After weeks of uncertainty and amid intense speculation that the BJPled administration could even cancel the contract, Modi, during a visit to France last week, pulled a surprise and signed the purchase of 36 planes off-the-shelf in a direct government-to-government deal, effectively junking the old UPA deal while retaining the vendor.

However, the official announcement last week made no mention about what happens to the remaining planes, prompting speculation in some quarters whether the government could look at fresh competitive bidding.

But sources said the thinking in South Block was that it did not make sense to buy planes from a new vendor as that would saddle the Air Force with a 'mix and match fleet' and having to operate multiple platforms, which was cumbersome and operationally inefficient. Besides a fresh competitive bidding scenario would take years, severely delaying the Indian Air Force's plans to raise its flying strength up to 42 fighter squadrons.

This will effectively rule out the possibility of fresh competitive bidding for the remaining contract, which was also indicated by Defence Minister Manohar Parrikar on Monday when he said a government-to-government route was better to acquire strategic defence platforms rather than competitive,global bidding.

NUMBER COULD BE REVISITED

Sources said that while the original requirement of 126 fighters for the air force stands, this number could be revisited in the coming days after a reassessment. A higher number of planes could encourage the French side, which could otherwise have reservations on ceding the controlling stake in the Indian joint venture, to set up a production base for the jets. Such an approach could counter criticism that the new Rafale deal does not give much to India in terms of technology transfer and production capabilities. Going about the remainder of the contract though the joint venture route could give the Indian private sector a chance to partake of the government's defence spending and develop manufacturing expertise in an area that has largely been the preserve of staterun firms.

The scrapping of the old Rafale deal, along with the cancellations of similar projects, is an indication that the L1, or lowest bidder based competitive bidding process, which was initiated by the UPA regime is on the way out. Some defence experts say the lengthy process of global competition has led to the stalling of many critical military acquisitions after these got bogged down by accusations of manipulations in testing or discrepancies in commercial proposals.

Officials also say that the view within the government is that the L1 system - choosing the cheapest product after it passes the basic technical evaluation - is not ideally suited to acquiring strategic and cutting edge systems for the military.

While the L1 process was promoted by the UPA government, most military acquisition plans did not see the light of day under the process. These include two attempts to buy light helicopters for the army, a proposal to purchase aerial refuelers for the air force and plans to acquire much-needed artillery systems.

The trend to cancel or do away with projects under competitive bidding continues with the NDA government with the cancelling of the light helicopter contract last year that saw Eurocopter and Kamov making it to the final zone. Most mega projects cleared by the UPA - C-17 transporters, P-8I planes for the Navy, C-130J special operations aircraft - were government-to-government purchases.

The last large tender cleared by competitive bidding was to purchase trainer aircraft from Swiss firm Pilatus in 2012. However, that too ran into trouble as the BJP government reduced the order and gave a large chunk of it to HAL.


Make in India: Rafale deal may take off as a joint venture between French and Indian firm - The Economic Times


@Ind4Ever
See what i discussed with you yesterday the same story is being now said...