Manufacturing Details Stall Franco-Indian MMCRA Negotiations

[arp2041]

More than 10 months after India chose the French Rafale to meet its $15 billion medium multi-role combat aircraft (MMRCA) requirement, contract negotiations are mired in issues related to offsets, the transfer of technology and the role of Hindustan Aeronautics (HAL). The Press Trust of India quoted industry sources as saying that Dassault has requested from the Indian Ministry of Defence the freedom to decide the proportion of work to be done by HAL, versus private Indian companies. Last February, Dassault signed an MoU with Reliance Industry, India’s largest private-sector company, for collaboration in manufacturing.

At a French parliamentary hearing on December 4, Dassault Aviation CEO Charles Edelstenne expressed “relative optimism” about the progress of talks. “It’s a complicated country, the negotiations are tough, but there is a desire to wrap up on both sides,” he added. Of the 126 aircraft envisioned, 18 are to be delivered as flyaways and the rest to be manufactured in India, with final assembly by HAL.

An official told AIN that HAL needs to define a partner that will facilitate Tier 2 and 3 suppliers, or assume that responsibility itself. Proponents of HAL say that the government-owned company has far more experience in selecting suppliers for high-technology defense projects than private companies such as Reliance or Tata.

One vendor noted that since India lacks the appropriate level of avionics and engine production capability, “there is no clarity on how value can be added by Indian industry and 50-percent offsets absorbed.” The MMRCA project does not fall within the new and more liberal defense offsets policy that permits them to be sourced from adjacent sectors such as homeland security and commercial aviation.

Elections are looming in 2014, and while reports have indicated the contract could be signed early next year, the government, fearing reprisals from opposition parties, is unlikely to proceed unless matters are ironed out in the next few months. One defense official suggested to AIN that if decisions are deferred beyond the election, the MMRCArequirement might be cut to around 60 aircraft as newer solutions–such as the Indo-Russian fifth-generation fighter aircraft, and unmanned combat air vehicles–become available.

Manufacturing Details Stall Franco-Indian MMCRA Negotiations | idrw.org

 

[zaxcolix]

................ Dassault has requested from the Indian Ministry of Defence the freedom to decide the proportion of work to be done by HAL, versus private Indian companies. Last February, Dassault signed an MoU with Reliance Industry, India’s largest private-sector company, for collaboration in manufacturing.

Looks like HAL's reputation precedes it . In-spite of working in Aerospace since 1940 no one wants to work with it.

An official told AIN that HAL needs to define a partner that will facilitate Tier 2 and 3 suppliers, or assume that responsibility itself.....

As usual HAL walks into the negotiation without doing any homework and not defining its role and without any consideration for Tier 2 and Tier 3 vendors but looks like Rafael has done its homework.

HAL thought that like old times they would be 'gifted' the contract and they can take their leisure to figure out how to build it .

Strange that 'poor helpless' HAL with 'No Lobbying' has the power to stall the a 12 billion $ negotiations ........but no power to get budget for R&D sanctioned.

 

[Nishan_101]

So it means 200 Rafael final for IAF and IN will also look towards if Dassault developed the Rafael N(two seat)

 

[ironman1]

well it is better as if these stupid but important babudom paperwork will be sorted out even before the deal is done , that might infact save us months in long run ! thank dassault for sorting the prob for us !

 

[Mani2020]

once again HAL lives upto her reputation.....delays gonna hurt india

 

[zaxcolix]

...days of PSU monopoly are gone in India. There wont be any delay as private players are eager to jump in and prove themselves. IAF wants that too.

 

[Safriz]

Good,your children may see MMRCA in Indian skies...

 

[zaxcolix]

Good,your children may see MMRCA in Indian skies...

...thank you ....my children do not share my enthusiasm for defense but let them see the MMRCA in Indian skies soon

 

[Lyrical Mockery]

...thank you ....my children do not share my enthusiasm for defense but let them see the MMRCA in Indian skies soon

sadly, december 21 is not even a week away.

 

[arp2041]

@Abingdonboy @sancho @DrSomnath999 pls comment on this news, can the deal get delayed beyond this fiscal???

 

[Skull and Bones]

@Abingdonboy @sancho @DrSomnath999 pls comment on this news, can the deal get delayed beyond this fiscal???

If they're really serious, then all the ground work and negotiations with private ancillaries can be wrapped up within three months, before going for another round of negotiations with Dassault.

But with HAL officials involved, i really don't have much hope.

 

[ptltejas]

the private company may work in less price than HAL or may be some thing else reason........

 

[shree835]

Good,your children may see MMRCA in Indian skies...

Yes Indian Kid will see for sure …What about yours…?

 

[neehar]

no reliance please..theyll just eat away our money...........

 

[selvan33]

still not finalising indian production partners. please sell those all useless HAL shares to tata defence. surely they will do something better than HAL.