Will Parrikar clear single-tender Avro replacement bid?

[Daedalus]

All eyes are on India's new Defence Minister Manohar Parrikar, who is set to chair his first Defence Acquisition Council (DAC) meeting in New Delhi on November 22.

Among the crucial decisions to be taken by Parrikar, the 13,000-crore ‘private sector only' Avro replacement project initiated by the UPA-2 regime would be the most-awaited one.

Aimed at encouraging the private sector to take major lead in India's aerospace and defence programmes, the project envisages the delivery of 56 medium transport aircraft to the Indian Air Force (IAF), under the ‘Buy and Make' category.

The decision to keep PSUs like aviation major Hindustan Aeronautics Ltd (HAL) at bay from the tendering process has already ran into trouble. The tender was issued during A K Antony's regime in May 2013 and was strongly opposed by some of his Cabinet colleagues as well.

First-time experiment runs into rough weather
The decision to keep PSUs like aviation major Hindustan Aeronautics Ltd (HAL) at bay from the tendering process has already ran into trouble. The tender was issued during A K Antony's regime in May 2013 and was strongly opposed by some of his Cabinet colleagues as well.

The tender had sought foreign OEMs (Original Equipment Manufacturers) to identify an Indian partner other than HAL, to supply 16 aircraft from their original facilities and provide ToT (Transfer of Technology) for manufacturing the remaining 40 aircraft by the Indian partner.

As per the tender, foreign OEM would remain as the main contractor and the Indian partner would only remain as a vendor. The contract, when finalised, will be signed between the OEM and the IAF. The tender has so far been extended several times with the foreign OEMs failing to identify a capable Indian partner.

As per the tender, foreign OEM would remain as the main contractor and the Indian partner would only remain as a vendor. The contract, when finalised, will be signed between the OEM and the IAF. The tender has so far been extended several times with the foreign OEMs failing to identify a capable Indian partner.

Finally, the Tata-Airbus consortium (Airbus Defence & Space and Tata Advanced Systems) now remain as the single vendor, offering the Airbus C295 as a replacement to the Avros.

‘Make in India' campaign in focus

Sources tell OneIndia that DAC can overlook the rulebook taking into account the ‘existing exceptional situation.'

If Parrikar uses this ‘special route' to bring in the Airbus C295, it might be seen as a deviation from Prime Minister Narendra Modi's strong ‘Make in India' pitch. However, those supporting Airbus C295 would argue that a major work share will be done in India thereby fulfilling PM's Make in India dream.

An official who was part of many mega procurements for Indian Navy told OneIndia that the government should back what the Services want. "There have been many instances of single-tender deals in the past as well and all such platforms have performed very well. We cannot have the Avro replacement go the Navy's mine-sweeper way. The IAF has gone by its wisdom and the nation should back it," says the official not wanting to be named.

Choose independent directors carefully, MoD told

We should be allowed to compete, says HAL

Will Parrikar clear single-tender Avro replacement bid? - Oneindia

 

[Hareeshu IA MBT]

We love move by Air force . They must follow the ways of Indian Navy to create manufacturer hub in India

 

[sancho]

A Hurdle for 'Make in India' Push in Defence: Why Air Force Plane Deal Was Put on Hold

...Prime Minister Narendra Modi is eager to "Make in India", but the private sector doesn't appear to be quite ready for it. So while Defence Minister Manohar Parrikar announced another big push today - clearing a proposal to acquire 814 artillery guns at a cost of Rs. 15,750 crore - the decision on the joint bid by Tata Sons and Airbus to replace IAF's AVRO cargo planes was quietly deferred.

A similar fate met the proposal to acquire an additional 106 Swiss Pilatus basic trainer aircraft for the IAF at an estimated cost of around Rs. 8,200 crore - for which the same companies had bid.

Officially, the reason is that the minister wants more time to study both proposals. But defence ministry sources said no other company had expressed interest in making the AVROs, which makes a single tender like situation for what is meant to be an open tender...

A Hurdle for 'Make in India' Push in Defence: Why Air Force Plane Deal Was Put on Hold


New government, new DM, same old problems! Lets see if he risks the single vendor solution and makes MoD open to disadvantages in negotiations with the foreign vendors.

 

[Abingdonboy]

A Hurdle for 'Make in India' Push in Defence: Why Air Force Plane Deal Was Put on Hold


New government, new DM, same old problems! Lets see if he risks the single vendor solution and makes MoD open to disadvantages in negotiations with the foreign vendors.

If the new DM went for the single vendor deal (the only option on the table really) then it would be quite a departure from the past wouldn't it sir? The past GoI/DM wouldn't touch these deals with a barge poll and would stall them indefinitely.

 

[SanjeevaniButi]

If the new DM went for the single vendor deal (the only option on the table really) then it would be quite a departure from the past wouldn't it sir? The past GoI/DM wouldn't touch these deals with a barge poll and would stall them indefinitely.

I don't think Sancho is bothered with such facts. ....... He will tell you how this is how Modi sells the nation to private companies ..... and how DM is corrupt for doing this.

 

[ARPANET]

I don't think Parrikar has the necessary "DEFENSE BACKGROUND" to clear such a deal

 

[jugad]

I don't think Sancho is bothered with such facts. ....... He will tell you how this is how Modi sells the nation to private companies ..... and how DM is corrupt for doing this.

Ten years of Anthony saga and nobody gives a shit .Enter few nationalist business minded people- everyone goes gaga

 

[sancho]

If the new DM went for the single vendor deal (the only option on the table really) then it would be quite a departure from the past wouldn't it sir? The past GoI/DM wouldn't touch these deals with a barge poll and would stall them indefinitely.

Lol, are you trying to sell a "forced" single vendor situation as a policy improvement by him? Look at the facts buddy and unbiased by your dislike of Antony.

- former DM Antony purposly extended the time for bids, because only TATA showed interest in teaming up with foreign vendors
- former DM Jaitley purposly extended the time for bids, because only TATA / Airbus responded to his RFP
- current DM Parrikar (silently) delays a decision to evaluate options, because only TATA / Airbus responded to his RFP

So we are facing the same problem of low interest of the private industry from the start and all DM's tried to avoid for a single vendor situation, by the simple fact that it puts the MoD in disadvantage against the foreign vendors, with no leverage on cost reduction or industrial advantages that all DM's aim to.

What you try to put as a good thing now, is just the sad result that not even a DM (Jaitley) with the full support of the PM and the Make in India PR agenda of his party, was able to increase the interest of privat Indian industry players. So a forced decision for a single vendor situation might solve IAFs immediate problem, but puts MoD in disadvantage and doesn't solve the problem of too little participation of the privat industry.
And while this is sad in this tender, it's even worse in the NMHR tender, because a single vendor situation with Sikorsky, leaves us with no chance to improve the US ToT policy, since they know we have no alternative.

 

[sancho]

I don't think Sancho is bothered with such facts. ....... He will tell you how this is how Modi sells the nation to private companies

On the contrary, I am all for facts, that's why I alway look and show both sides, unbiased from party politics, preference for a certain force and surely from media hype or PR. That's why I can give the new MoD credit for the speed up on bureaucracy level or for scrapping the minesweeper for irregularities, while I criticize the delays of LUH or SSK procurements because of defence unrelated issues.
That's why I criticized that former DM Antony kept out HAL from the start in this tender, instead of letting them compete with privat players for team ups with foreign partners and let the better bid decide who wins, while I don't stop to point out the FACTS,...

....that he and not the NDA started the new policy of inviting private players to the defence sector
....that he he introduced the "Buy and Make (Indian)" policy, under which even today the Avro replacement tender is running
... that he faced the same problems in the tender as the NDA DM's since may


So if being open minded, stating facts, as well as giving credit and criticism where it's due is my wrong doing, then I'm guilty!

 

[ARPANET]

....that he and not the NDA started the new policy of inviting private players to the defence sector

I think let's get the FACTS right!!

Who started the FDI in Defense - ABVP Govt. (26%)

Who initiated bringing Private companies in Defense - NDA (with the Navratna policy, Tata, L&T, Godrej, all involved in crucial projects like - BrahMos, Arihant, multiple rocket launchers).

All the things you are stating were INITIATED by Vajpayee Govt.

P.S. I think our CREDIBLE friend is going PARTISAN now

 

[SanjeevaniButi]

On the contrary, I am all for facts, that's why I alway look and show both sides, unbiased from party politics, preference for a certain force and surely from media hype or PR. That's why I can give the new MoD credit for the speed up on bureaucracy level or for scrapping the minesweeper for irregularities, while I criticize the delays of LUH or SSK procurements because of defence unrelated issues.
That's why I criticized that former DM Antony kept out HAL from the start in this tender, instead of letting them compete with privat players for team ups with foreign partners and let the better bid decide who wins, while I don't stop to point out the FACTS,...

....that he and not the NDA started the new policy of inviting private players to the defence sector
....that he he introduced the "Buy and Make (Indian)" policy, under which even today the Avro replacement tender is running
... that he faced the same problems in the tender as the NDA DM's since may


So if being open minded, stating facts, as well as giving credit and criticism where it's due is my wrong doing, then I'm guilty!

While you are at it , also credit the CONgress for Right to Education and right to Food Bill.

Why was the private players prevented in the defense sector from 1947 ? ?

Let me give you a better analogy. First you arrenst somebody on a False charge, then you Free him and declare yourself a HERO ........and retards cheer you on.

 

[Abingdonboy]

On the contrary, I am all for facts, that's why I alway look and show both sides, unbiased from party politics, preference for a certain force and surely from media hype or PR. That's why I can give the new MoD credit for the speed up on bureaucracy level or for scrapping the minesweeper for irregularities, while I criticize the delays of LUH or SSK procurements because of defence unrelated issues.
That's why I criticized that former DM Antony kept out HAL from the start in this tender, instead of letting them compete with privat players for team ups with foreign partners and let the better bid decide who wins, while I don't stop to point out the FACTS,...

....that he and not the NDA started the new policy of inviting private players to the defence sector
....that he he introduced the "Buy and Make (Indian)" policy, under which even today the Avro replacement tender is running
... that he faced the same problems in the tender as the NDA DM's since may


So if being open minded, stating facts, as well as giving credit and criticism where it's due is my wrong doing, then I'm guilty!

Sir, I'm not actually saying that the present situation is ideal nor am I saying that the present GoI has in anyway made the situation any better -if they were sensible they'd have listened to the industry concerns about only 40 units being built in India making this deal almost unviable and thus combined the needs of the BSF, CRPF, ICG and IAF for this bird so that up to 100 (if not more) could be manufactured in India. This would have attracted serious interest from around the world's aviation firms. Alas this wasn't done. It is fair to say though that the GoI cannot be blamed for Antonov's decision not to take part (Ukraine crisis).

All I am saying sir, is that given the situation the MoD/IAF now face- a single vendor situation, would you consider it s success or failure if the new DM cleared the deal. On the one hand the single vendor situation makes the deal far from optimal but this is a pressing requirement for the IAF and thus meeting the needs of the forces has got to be the highest concern.

My only point about the past GoI/DM is that we know for sure they would have let this deal remain in stasis indefinitely as a single vendor situation would have induced an immediate "no" from them.

 

[Tshering22]

A Hurdle for 'Make in India' Push in Defence: Why Air Force Plane Deal Was Put on Hold


New government, new DM, same old problems! Lets see if he risks the single vendor solution and makes MoD open to disadvantages in negotiations with the foreign vendors.

Those in the MOD who oppose should be asked to leave or be transferred elsewhere that has nothing to do with defence. The government has a strong majority and has nothing to worry, unlike the useless regime of until past year.

Moreover, if they perform as per people's expectations, the NDA needn't worry about winning the 2019 election at all.

I pray that Parikkar does this.

Like I said elsewhere, there are enemies within the MOD that need to be cleansed before India can rise as a military power.

 

[jha]

Unless Avro and An-32 replacements are clubbed together and make the deal a bigger one, I dont think many companies will try to invest.

 

[Krate M]

The major issue is the insider information that ratan tata got as a board member of HAL, that can be used for alleging corruption. That is the problem and not single vendor situation.
But the C295 is a good platform, might even be used for AWACS.