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India's Biggest $25 Billion Defence Deal to Crash Land

salarsikander

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By Pradip R Sagar

Published: 24th Apr 2016 04:03:54 AM

India.jpg


NEW DELHI: India has a record of sour defence deals. While the Rafael deal with France to buy 36 fighters jets at nearly `60,000 crore is stuck over a year despite announcement made by PM Narendra Modi during his Paris visit in April 2015, India’s biggest defence buy with its old military hardware partner Russia threatens to crash. It is thrice bigger than the French deal and concerns 127 Fifth Generation Fighter Aircraft (FGFA) costing over $25 billion. `1,500 crore, which India has already paid for preliminary design of the aircraft, may go down the drain. It is the IAF—despite desperation to strengthen its combat fleet—that has put its foot down, citing differences with Russia, the co-developer of the FGFA project.

In an internal communication to the Ministry of Defence, the Air Headquarters has flagged at least 15 objections to the Fifth Generation Fighter Aircraft (FGFA), ranging from fighter’s unreliable engine, poor stealth features, and inadequate radar to its high cost overrun. The letter sent last month has virtually grounded the entire program.

“Under the present scenario, only a political call can revive the program,” a highly placed source said.

In fact, IAF went further to slam Russians for not giving access to the developed prototypes of the aircraft to its pilots. Moreover, it also expressed apprehension that the Russians would not share critical design information with India because they have deliberately reduced the Indian work share despite India’s huge expenditure on the preliminary design. India’s work share in FGFA research and development and other aspects of the multi-billion dollar project at the moment is nearly 10 per cent, even though Delhi is bearing 50 per cent of the project cost.

In 2007, the Congress-led UPA government had signed an inter-governmental agreement with Russia to co-develop the next generation FGFA. It was followed by the $295 million (`1,483 crore) preliminary design contract (PDC) in December 2010. The overall FGFA project cost for making all the 127 fighters in India was pegged at around $25 billion.

The preliminary design stage of the FGFA programme was completed in June 2013 based on a contract signed in December 2010 with the Russian side.

As per the Inter-Governmental Agreement (IGA) signed in October 2007, Hindustan Aeronautics Limited (HAL) is the designated implementation organisation from the Indian side. HAL is supported by agencies, including Defence Research and Development Organisation (DRDO) and Council for Scientific and Industrial Research (CSIR).

The programme requires further $6 billion towards its research and development contract. Defence Minister Manohar Parrikar-led defence acquisition council has to give its approval for the R&D contract. It is believed that the delivery of FGFA to the IAF will begin only after nearly eight years from the start of the R&D contract.

“The ministry is in a dilemma over the future of the program after resistance from the IAF. But simultaneously, the Indian government has already spent a sizeable amount of Rs 1,500 crore on the program. And if the program does not make, spent money might go in waste,” said an official. This deal created controversy during 2011, when a clause was inserted in violation of the defence procurement policy to give contract to Russia to provide International Private Leased Circuit (IPLC) bandwidth connectivity between Bangalore-Moscow-Irkutsk to lay communication lines between the two partners.

IAF’s depleting combat strength has been a cause of concern as it is down to 34 fighter squadrons against 42 of its authorised strength based on certain projections in the next couple of years. IAF is getting four squadrons of Su-30 and subsequently indigenously built Light Combat aircraft Tejas is expected to fill the critical requirement of the force.

Collision Course

■ IAF claims developed engine of FGFA was not reliable

■ Inadequate radar and stealth features

■ Huge cost over-run

■ India’s reduced share. Lack of participation by IAF in the design phase

■ IAF apprehensive that Russia will not share technology

@Abingdonboy @wiseone2
 
@salarsikander

Two points

1 There is a thread running on this topic

2 India will get this plane ; it might get delayed but we will get it

In case of Rafale deal we heard at least 100 stories of the deal getting cancelled

Indian media loves to write stories ; we cant stop them
Hi,

Sir This is not some media paid news is it ? IAF seriously concerned about depleting sqd strength then delay in tejas and Rafael drama and now this.

Russians are deliberately doing this, perhaps expressing their displeasure with how India is cozying up with USa and all
 
Hi,

Sir This is not some media paid news is it ? IAF seriously concerned about depleting sqd strength then delay in tejas and Rafael drama and now this.

Russians are deliberately doing this, perhaps expressing their displeasure with how India is cozying up with USa and all

This is not Russian news ; this is Indian media news ; rather than Indian media mischief

http://tass.ru/en/defense/865863
 
Yes that is right ; nothing has changed suddenly
in a month for this Negative news to come now

Pak fa is under development

Pak fa will happen ; no matter what ; these paid news crooks can go to hell
That remains to be seen, judging by the Rafel drama and all other dealings with russians. I am a bit skeptical about this one too
 
By Pradip R Sagar

Published: 24th Apr 2016 04:03:54 AM

India.jpg


NEW DELHI: India has a record of sour defence deals. While the Rafael deal with France to buy 36 fighters jets at nearly `60,000 crore is stuck over a year despite announcement made by PM Narendra Modi during his Paris visit in April 2015, India’s biggest defence buy with its old military hardware partner Russia threatens to crash. It is thrice bigger than the French deal and concerns 127 Fifth Generation Fighter Aircraft (FGFA) costing over $25 billion. `1,500 crore, which India has already paid for preliminary design of the aircraft, may go down the drain. It is the IAF—despite desperation to strengthen its combat fleet—that has put its foot down, citing differences with Russia, the co-developer of the FGFA project.

In an internal communication to the Ministry of Defence, the Air Headquarters has flagged at least 15 objections to the Fifth Generation Fighter Aircraft (FGFA), ranging from fighter’s unreliable engine, poor stealth features, and inadequate radar to its high cost overrun. The letter sent last month has virtually grounded the entire program.

“Under the present scenario, only a political call can revive the program,” a highly placed source said.

In fact, IAF went further to slam Russians for not giving access to the developed prototypes of the aircraft to its pilots. Moreover, it also expressed apprehension that the Russians would not share critical design information with India because they have deliberately reduced the Indian work share despite India’s huge expenditure on the preliminary design. India’s work share in FGFA research and development and other aspects of the multi-billion dollar project at the moment is nearly 10 per cent, even though Delhi is bearing 50 per cent of the project cost.

In 2007, the Congress-led UPA government had signed an inter-governmental agreement with Russia to co-develop the next generation FGFA. It was followed by the $295 million (`1,483 crore) preliminary design contract (PDC) in December 2010. The overall FGFA project cost for making all the 127 fighters in India was pegged at around $25 billion.

The preliminary design stage of the FGFA programme was completed in June 2013 based on a contract signed in December 2010 with the Russian side.

As per the Inter-Governmental Agreement (IGA) signed in October 2007, Hindustan Aeronautics Limited (HAL) is the designated implementation organisation from the Indian side. HAL is supported by agencies, including Defence Research and Development Organisation (DRDO) and Council for Scientific and Industrial Research (CSIR).

The programme requires further $6 billion towards its research and development contract. Defence Minister Manohar Parrikar-led defence acquisition council has to give its approval for the R&D contract. It is believed that the delivery of FGFA to the IAF will begin only after nearly eight years from the start of the R&D contract.

“The ministry is in a dilemma over the future of the program after resistance from the IAF. But simultaneously, the Indian government has already spent a sizeable amount of Rs 1,500 crore on the program. And if the program does not make, spent money might go in waste,” said an official. This deal created controversy during 2011, when a clause was inserted in violation of the defence procurement policy to give contract to Russia to provide International Private Leased Circuit (IPLC) bandwidth connectivity between Bangalore-Moscow-Irkutsk to lay communication lines between the two partners.

IAF’s depleting combat strength has been a cause of concern as it is down to 34 fighter squadrons against 42 of its authorised strength based on certain projections in the next couple of years. IAF is getting four squadrons of Su-30 and subsequently indigenously built Light Combat aircraft Tejas is expected to fill the critical requirement of the force.

Collision Course

■ IAF claims developed engine of FGFA was not reliable

■ Inadequate radar and stealth features

■ Huge cost over-run

■ India’s reduced share. Lack of participation by IAF in the design phase

■ IAF apprehensive that Russia will not share technology

@Abingdonboy @wiseone2
Anyone who has watched the Rafale saga go from "unworkable" to all but done should know that where there is a will, there is a way. If the IAF wants the FGFA they will get it but between then and now there will be a LOT of paid misinformation.
 
Anyone who has watched the Rafale saga go from "unworkable" to all but done should know that where there is a will, there is a way. If the IAF wants the FGFA they will get it but between then and now there will be a LOT of paid misinformation.
Again this is based around the 'PERCEPTION' that is available. There is hell of a difference btw something that will be available and is available !
 
Hi,

Sir This is not some media paid news is it ? IAF seriously concerned about depleting sqd strength then delay in tejas and Rafael drama and now this.

Russians are deliberately doing this, perhaps expressing their displeasure with how India is cozying up with USa and all
The LCA and Rafale "dramas" are all but addressed in the past 6 months, soon enough attention will switch to the FGFA and something will be worked out. As it stands there is no real rush from the Indian side- 300+ MKIs are being inducted and the IAF wants to balance it out with the light and medium fighters and then may start looking to the MKI's replacement in a couple of years.

If everything fails with the FGFA the AMCA will be accelerated and Dassualt will be roped in as an industrial partner.

Again this is based around the 'PERCEPTION' that is available. There is hell of a difference btw something that will be available and is available !
"Perception" is subjective, some try to paint all Indian defence deals as impossible and then one day they suddenly aren't. India hasn't become the world's largest arms importer by not buying anything!

IF the Indian side want to progress with the FGFA it will progress one way or another.
 
India hasn't become the world's largest arms importer by not buying anything!
That is debatable, the big ticket price items that significantly add to your capability are still yet to be bought, buying bullets and guns wont make of a difference.
 
Problem is twofold. First is slow progress on this issues related to this project between Russia and India and second is the reluctance of IAF to go for this aircraft as they have shown reservations on this project time and again.
 
This make in India thing is really hurting Indian procurements. France and Russia both seem very weary of it. Tech transfers are expensive and complicated.
Best they opt for over the shelf delivery followed with gradual infrastructure and overhaul tech transfers. If OEM doesnt have to transfer manufacturing technology, deals will be cheaper and less complicated.
Pakfa hasnt entered serial production yet, of coarse it will have problems before that but I doubt Indians can make any complaints on reliability and stealth when their pilots don't yet have access to the jet. Seems like just presure tactics to get more out of the Russians.
 
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