Indian M-MRCA Requirement

As toilet paper, certainly. Although Le Figaro is certainly a serious competitor ::)
 
From Defensenews:

India mulls big jump in French Rafale order

PARIS — India could buy up to 189 of the Rafale fighter jets currently being used by France to bomb Islamist militants in Mali, sources close to negotiations on the multi-billion dollar deal have told AFP.
The possibility of an additional 63 jets being added to an expected order for 126 was raised by India when Foreign Minister Salman Khurshid visited Paris last week, they said.
“There is an option for procurement of an additional 63 aircrafts subsequently, for which a separate contract would need to be signed,” a source said. “Presently the contract under negotiation is for 126 aircraft, but we are talking about the follow-up.”
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IAF Grappling With Free Fall In Fighters, Will Have to Fly Upgraded MiG-21s Till 2025
(Source: Times of India; published Oct 5, 2013)

NEW DELHI --- Just ahead of its 81st anniversary on October 8, the IAF has virtually sounded the red-alert over its fast-dwindling number of fighter squadrons. Confronted with the government's slow decision-making, fund crunches and Hindustan Aeronautics' sluggish performance, the force is now being forced to further stagger the already long-delayed retirement of its ageing MiG-21s and MiG-27s.

The grim situation can be gauged from the fact that IAF will continue to fly its 110 upgraded MiG-21 "Bisons" — of the total 260 MiG-21s still in its combat fleet — till 2025. Making this startling admission, IAF chief Air Chief Marshal (ACM) NAK Browne on Friday said, "We are authorized 42 fighter squadrons but, at present, we are much below that."

Though the primacy of airpower in shaping battles is undisputed, and both China and Pakistan are fast bolstering their fleets, the IAF is down to just 34 fighter squadrons (each has 16-18 jets) as of now.

So, even as plans are underway to upgrade airbases and advanced landing grounds for both the western and eastern fronts, there is a crippling shortage of modern fighters that can be deployed there.

With MiG-21 and MiG-27 squadrons slated for progressive phasing out over the 12th and 13th Plan periods (2012-22), IAF is desperate to ensure its long-standing new fighter induction plans are not derailed any further.

The topmost priority is the almost $20 billion MMRCA (medium multi-role combat aircraft) project to acquire 126 fighter jets, even as it will progressively induct the remaining 100 Sukhoi-30MKIs of the 272 such fighters contracted from Russia for around $12 billion.

The long-drawn MMRCA technical and commercial evaluation process began in August 2007, with the French Rafale fighter finally emerging the winner in January, 2012. But the contract — under which the first 18 jets are to be imported and the rest manufactured under licence by HAL over six years — is nowhere near being inked.

"The MMRCA and the first two squadrons of Tejas light combat aircraft (the indigenous fighter project sanctioned in 1983 but still to fully fructify) are very critical for us to maintain our deterrence capability. Otherwise, our force-levels will go down rapidly," said ACM Browne.

With the country headed for general elections, it's highly unlikely the MMRCA contract will be concluded in the ongoing fiscal. But the IAF chief said, "There is no back-up plan. The MMRCA is the only option, and it is highly doable. If we sign it by next year, the first MMRCA should come to us by 2017. We cannot delay it any further."

Even the long-term plan for co-developing the fifth-generation fighter aircraft with Russia is in the doldrums. It will take at least another year to ink the $11 billion "full design R&D contract" for the futuristic fighter, admitted ACM Browne.

As per the earlier timeline, IAF was looking to induct over 200 of these swing-role stealth fighters from 2022 onwards. But that may not be possible now. India will eventually spend around $35 billion on this project over the next 15-20 years, with each jet to be subsequently produced costing over $100 million.

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India to Finalise Rafale Deal This Fiscal Year: Report
(Source: The Economic Times; published Oct 17, 2013)

NEW DELHI --- India will finalise a $15 billion deal to buy 126 Rafale fighter jets from France's Dassault Aviation by March 2014, an Indian air force official said on Thursday, after the deal had been held up by differences over local manufacturing.

New Delhi picked the Rafale for exclusive negotiations in January 2012 after a bidding contest against Eurofighter Typhoon aircraft, made by a consortium involving EADS, Finmeccanica and BAE Systems.

But there were differences over the role of India's state-run Hindustan Aeronautics Ltd in manufacturing the jets.

Air Marshal S. Sukumar, deputy chief of air staff, told an aerospace conference the deal would be signed within the current financial year, according to a statement issued by conference organiser, the Confederation of Indian Industry.

Under the deal, Dassault is expected to send 18 ready-made jets and would manufacture the rest in India. Hindustan Aeronautics will be its lead partner.

Dassault had earlier expressed doubts about the ability of the local partner to make such a sophisticated fighter. Hindustan Aeronautics has been developing a light combat aircraft since the early 1980s with no success so far.

A spokesman for Dassault declined to comment. The French company is still hoping to finalise the deal by the end of the 2013.

India's government wants to encourage Indian companies to partner with foreign suppliers to reduce its reliance on imports and boost a domestic defence industry that is dominated by underperforming public sector companies.

A separate tender to buy and build 56 military transport planes at an estimated cost of 119 billion rupees ($1.9 billion) has been extended by two months, Sukumar also said. The Defence Ministry launched the tender in May to replace an ageing fleet of Avro jets.

The ministry had originally said the transport planes deal must be struck between a foreign supplier and an Indian private company. However, Heavy Industries Minister Praful Patel said last week that public-sector firms already making products for the armed forces should have been allowed to take part in the bidding.

The Defence Ministry has said it will look into Patel's complaint, potentially delaying the tender. Many of India's foreign arms purchases run into long delays because of accusations of corruption and bureaucratic complications.

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100% price escalation on Rafale fighter aircraft to Rs 1.75 lakh crore likely to dent IAF's strike capability
Sunday, Jan 26, 2014, 7:02 IST | Place: New Delhi | Agency: DNA


India’s biggest deal of procuring 126 medium multi-role combat aircraft (MMRCA) for $18 billion (Rs90,000 crore) has hit rough weather. Two years after French aircraft maker Dassault Aviation bagged the deal for its Rafale fighter jets on account of being the lowest bidder, its cost has now shot up by 100 per cent.

In January 2012, when Rafale was declared the winner, its price was quoted between $60-65 million (Rs373-Rs400 crore). A top defence ministry official said the price of a fighter jet made by Dassault could now cost $120 million (Rs746 crore). The second bidder, Eurofighter, had quoted $80-85 million (Rs497-Rs528 crore).

The price hike would mean that the deal would cost India nothing less than $28-30 billion (Rs1.75 lakh crore-Rs1.86 lakh crore),” said an Indian Air Force (IAF) official, who is privy to discussions of the cost negotiation committee.

The defence ministry headed by AK Antony has developed cold feet after the cost doubled compared to the original estimate. With the general elections just months away, Antony is unsure about the fate of the deal, a defence ministry official said. “As the negotiations continue, the cost is spiralling out of hand. It is a major worry,” he said.

An IAF official said that in 2007, when the tender was floated, the cost of the programme was $12 billion (Rs42,000 crore). When the lowest bidder was declared in January 2012, the cost of the deal shot up to $18 billion (Rs90,000 crore).

Eighteen of the 126 planes will be purchased directly from Dassault, while Hindustan Aeronautics Limited will manufacture the other 108 under a licence, at an upcoming facility in Bangalore.

The IAF, which is fighting its depleting combat strength, was banking on Rafale as this was going to be the force’s leading fighter plane for the next four decades. “With chances of the MMRCA deal getting inked appearing dim, there seems to be no solution to the immediate problem of shrinking squadron numbers as existing aircraft are forced into retirement,” said another IAF official.

The air force is seeking to replace its ageing MiG-21s with a modern fighter and MMRCA fits between India’s high-end Sukhoi-30MKIs and its low-end Tejas LCA lightweight fighter. The IAF has a sanctioned strength of 45 fighter jet squadrons. However, it only has 30 squadrons operational as old aircraft have been retired.
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Does anyone have an idea what the current agenda of the Indians is? Do they want to save money? Critizing the Russians for their plane, starting rumours that the Rafale will be more expensive...
 
http://www.defensenews.com/article/20140204/DEFREG03/302040016/India-Dassault-Rafale-Deal-Appears-Stalled

At issue is the Indian Air Force’s insistence that HAL provide guarantees on the delivery schedule for the Rafale aircraft. According to the tender, 108 of the 126 jets are to be license-produced at HAL.

HAL in turn has shifted the onus of providing guarantees to Dassault, which initially refused before agreeing to help HAL adhere to the delivery schedule.

However, HAL has failed to take responsibility and guarantee the work of its sub vendors, which includes state-owned companies, including Bharat Electronics Ltd. (BEL), which would supply auxiliary systems, the Air Force sources said.

At the same time, the framework governing work share has not been finalized because the Indian side wants a greater percentage of subsystems and auxiliary work in the license production deal. The French say HAL will need to absorb Western technologies, so the work share can increase only as the license production progresses, MoD sources said.

The Air Force, having suffered delays from HAL, is adamant that the delivery schedule is followed. Air Force sources say the delay in procurement of the fighter will severely affect the fleet strength of the force. The service had to search for a fighter aircraft in the overseas market because the homegrown light combat aircraft, proposed to replace Russian MiG fighters, is more than 15 years behind schedule.
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MoD mulls downsizing Rafale contract

Wednesday, 2 July 2014 - 7:55am IST | Place: New Delhi | Agency: DNA
Pradip R. Sagar

As the French foreign minister Laurent Fabius met Indian political leadership, including prime minister Narendra Modi, pressing for sealing the multi-billion Rafale combat aircraft deal, New Delhi has raised serious concerns over the cost escalation of the fighter jet deal. Struggling to pay the heavy cost of the deal, the ministry of defence (MoD) is considering an option of down-sizing the deal from 126 to 80 fighter jets.

According to officials, who are privy to the development, defence ministry has asked the French government to revise the price structure because the deal has gone much beyond the expected lines. And during course of negotiations with the Dassault, which manufactures Rafale jets, the defence ministry has been asking for price revision. Due to difference of opinion, the cost negotiation committee, which was set up in February 2012 to work out the modalities for the deal, has not been able reach conclusion and the committee is yet to submit its report to the ministry.

Officials claim that in 2007, when the tender was floated, the cost of the programme was $12 billion. When the lowest bidder was declared in January 2012, the cost of the deal shot up to $18 billion (Rs1.08 lakh crore). And now with inclusion of transfer of technology, life cycle cost and creating assembly line, the deal has virtually cross whopping $20 billion.

A top official told dna that if the government signs the deal in the next couple of months, it has to pay advance payment of at least $1.5-2 billion (Rs.9- 12,000 crore) to Dassault. And for the newly-elected BJP-led NDA government will have to compromise on other defence equipment, as major chunk of defence budget will go in for the advance payment. And it is also believed to understand that new government is also not comfortable with the life cycle cost method adopted by the previous UPA-II government and even a senior BJP leader and former finance minister Yashwant Sinha had objected to the life cycle criteria.

"Cost escalations and disagreements over production sharing with Hindustan Aeronautics Limited(HAL) has led to the delay in freezing the contract. French have been asked to re-look at the price factor,"said an officer.

IAF officials maintain even if the deal is signed by the end this year, first lot of Rafale aircraft will arrive India by 2017. And by the time, IAF has to phase out its MiG 21 squadrons.

The air force is seeking to replace its ageing MiG-21s with a modern fighter and MMRCA fits between India's hig-end Sukhoi-30MKIs and its low-end Tejas LCA lightweight fighter. The IAF has a sanctioned strength of 45 fighter jet squadrons. However, it only has 30 squadrons operational as old aircraft have been retired.

Eighteen of the 126 planes will be purchased directly from Dassault, while Hindustan Aeronautics Limited will manufacture the other 108 under a licence, at an upcoming facility in Bangalore.
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Rafale Deal Hits Rough Weather

(Source: Times of India; published Jan 12, 2015)

NEW DELHI --- India plans to take a final call, one way or the other, on the gigantic $20 billion MMRCA (medium multi-role combat aircraft) project to acquire 126 French Rafale fighters before Prime Minister Narendra Modi visits France and Germany in April.

Sources said the defence ministry is now hopping mad with French aviation major Dassault's continuing refusal to take "ownership" of the 108 Rafale fighters which are to be manufactured by Hindustan Aeronautics Ltd (HAL) in India with transfer of technology after the first 18 jets are delivered off-the-shelf to IAF.

The MoD is also upset with Dassault's attempts to "change the price line", which led to its selection over the Eurofighter Typhoon as the L-1 (lowest bidder) three years ago, by deciding the "costing" for HAL on its own. "It will amount to a de facto hike in the L-1 price," said a source.

If Dassault continues to renege from its earlier commitments, refusing to be "fully compliant" with the original RFP (request for proposal), India will be left with no option but to scrap the entire MMRCA project despite having invested almost a decade in the selection process. Incidentally, the defence procurement policy and Central Vigilance Commission guidelines do not allow the L-2 (Typhoon) to re-enter the negotiations.

As was first reported by TOI, even though 90% of the draft contract is ready, the finalization of the complex MMRCA project has been stuck for almost a year now due to Dassault's reluctance to stand guarantee for the fighters to be made in India in terms of liquidity damages and production timelines.

Sources said defence minister Manohar Parrikar has written to his French counterpart Jean-Yves Le Drian that India was still awaiting the "empowered" delegation he had promised to send to resolve the imbroglio. The two ministers had decided to "fast-track" the negotiations during talks in New Delhi on December 1.

"The ball is firmly in the French court. India cannot allow any violation of the RFP in such a mega project, nor can it afford to let the negotiations drag on endlessly. A final call has to be taken, one way or the other," said the source.

If the MMRCA project is indeed scrapped, it will bring to an end the mega fighter selection process launched by India way back in August 2007. This "mother of all defence deals" had global aviation majors salivating at the prospect of bagging the lucrative deal.

After extensive field trials by IAF test pilots, Swedish Gripen, Russian MiG-35, American F/A-18 'Super Hornet' and F-16 'Super Viper' were ejected out of the high-voltage competition.

Subsequently, the commercial bids of the two remaining contenders -- Eurofighter Typhoon (EADS), backed by UK, Germany, Spain and Italy, and French Rafale (Dassault) - were opened in November 2011.

Rafale was then declared the winner in January 2012, having beaten the Typhoon both on direct cost of acquisition as well as "life-cycle costs'' of operating the fighters over a 40-year period with 6,000 hours of flying. But the final commercial negotiations with Dassault have progressed at a glacial pace since then.

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As an engineer, I don't blame Dassault. In fact, I think they are being smart. If I'm responsible, then I had better have control. But they want to make me responsible over something over which I don't wield any control? No thanks, I have too much experience being in that position from management, where I'm responsible but have no control over the program.
 
Given the less-than-stellar track record of the Indian industry, i would tend to agree ???
 
It's not as if Dassault didn't know about the exacting Transfer-of-Technology, offset (domestic content) and per-unit price requirements going into the competition. All of the MMRCA competitors would have been very challenged to meet them. Dassault was probably counting on winning other competitions (or domestic orders) to meet their per-unit price commitments not to mention a certain Rupee to Euro exchange rate.
 
Original Terms Have to Be Met In Rafale Jet Deal: Parrikar

(Source: Times of India; published Jan 13, 2015)

NEW DELHI --- India on Monday said France would have to adhere to the conditions specified in the original tender for the $20 billion MMRCA (medium multi-role combat aircraft) project, even as defence secretary R K Mathur left for Paris amid the deadlock over the mega deal for 126 Rafale fighters.

"The RFP (request for proposal) terms have to be met... they cannot be diluted," defence minister Manohar Parrikar told a television channel. Ruling out any comeback by the fighters which lost out in the MMRCA race, he added, "How can another plane be considered when the L-1 (lowest bidder, the Rafale) has been determined."

As reported by TOI earlier, finalization of the complex MMRCA project has been stuck for almost a year due to French aviation major Dassault's refusal to stand guarantee for the 108 Rafale fighters to be manufactured by Hindustan Aeronautics Ltd (HAL) in India with transfer of technology after the first 18 jets are delivered off-the-shelf to IAF.

Apart from this refusal to take responsibility in terms of liquidity damages and production timelines for the jets to be made in India, the MoD is also upset with Dassault's attempts to "change the price line" that had led to Rafale's selection over the Eurofighter Typhoon as the L-1 three years ago.

Sources said Mathur, on a two-day visit to France, will discuss a wide range of issues, including the need for Dassault to stick to the terms and conditions laid down in the original MMRCA tender or RFP floated in August 2007.

India wants to take a final call on the MMRCA project before Prime Minister Narendra Modi visits France and Germany in April. If Dassault does not honour its commitments made in its bids submitted to the RFP, India may be left with no option but to scrap the entire MMRCA project despite having invested almost a decade in the selection process.
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Interestingly, a few months after the Super Hornet was knocked out, I was speaking with some of the Boeing team - although they would never admit to it formally, off the record they were quite happy to have not won. They reckoned it would have been an extremely painful program to have tried to satisfy. I wonder if Dassault would agree...
 
Media Release from Dassault:

India to Announce Its Intention to Acquire 36 Rafale Aircraft Rapidly
(Source: Dassault Aviation; issued April 10, 2015)

PARIS --- Dassault Aviation, which is the Indian Air Force supplier for more than 60 years, is honored of the repeated trust of the Indian Government and welcomes its intention to finalize the acquisition of 36 Rafale aircraft at conditions that will allow to meet rapidly the security needs of India.

Dassault Aviation is grateful to the Indian Authorities to be given the opportunity to pursue and extend their partnership and underlines its pride in contributing to Indian defense and sovereignty.

“Just as we are delivering the first upgraded Mirage 2000, I am delighted by the decision of the Indian Authorities which gives a new impetus to our partnership for the next decades and comes within the scope of the strategic relationship gathering France and India”, declared Eric Trappier, Chairman and CEO of Dassault Aviation.

With more than 8,000 military and civil aircraft delivered to 90 countries over the past 60 years, and having logged nearly 28 million flight hours to date, Dassault Aviation can offer recognized know-how and experience in the design, development, sale and support of all types of aircraft, from the Rafale fighter to the Falcon range of high-end business jets, as well as military unmanned air systems. In 2014, Dassault Aviation reported revenues of €3.68 billion, with around 11,600 employees.

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Apparently, India has agreed to buy more pre-assembled in France whilst they still negotiate the licence production deal.
 
http://www.flightglobal.com/news/articles/india-ends-mmrca-fighter-acquisition-415408/
 
http://news.yahoo.com/india-france-sign-rafale-agreement-modi-093314517--finance.html
 
https://www.flightglobal.com/news/articles/dassault-to-work-with-india-to-build-on-new-rafale-a-421190/
 
And so the saga continues...

No Rafale Deal Unless Price Is Right: Parrikar
(Source: Business Standard; published Feb 18, 2016)
By Ajai Shukla

NEW DELHI --- Defence Minister Manohar Parrikar bluntly stated on Thursday that negotiations for buying 36 Rafale fighters from French aerospace vendor, Dassault, were deadlocked on the issue of price, and that no deal would be signed until the price was right.

Well-informed defence ministry sources that are close to the negotiation say there is a wide gulf between the two sides. "The difference between what France is demanding and what India is willing to pay is too large to bridge easily - about 25 per cent."

Business Standard understands that Dassault has quoted about Rs 91,548 crore, while Indian negotiators are refusing to go above Rs 68,499 crore.

Parrikar told India Today TV: "Price is the problem which has to be resolved. Unless I get the right price, I cannot sign."

Debunking recent media articles that a deal was imminent, most recently in Hindustan Times on February 11, Parrikar said ironing out the remaining issues would take "a few months".

Pressed on the question of time-frame, Parrikar responded: "You can't commit yourself to a time, because this is not a negotiation for a few hundred crores. This is thousands of crores. I should not… put a time line on my price negotiation."

On January 25, during his visit to Delhi, French President Francois Hollande declared after signing an inter-governmental agreement for the supply of 36 Rafales, "There are some financial issues that will be sorted out in a couple of days…" It now appears he may have been speaking figuratively.

On January 27, French ambassador to New Delhi, Francois Richier, put a deadline of four months for the price to be negotiated.

On Thursday, Parrikar also confirmed that India had demanded offsets worth 50 per cent of the deal value, and that Dassault had agreed to that condition.

"We have resolved all the other issues. There were terms of guarantees, there were terms of supply, there were terms of how it will be done", said Parrikar.

The defence minister denied that the window was open for buying more Rafale fighters, beyond the 36 being currently negotiated. "As of now, the negotiation is for 36 (fighters). There are many possibilities, but this deal is for 36", he said.

When Prime Minister Narendra Modi, on a visit to Paris last April, requested for 36 Rafales, New Delhi and had Paris agreed the price would be less than what Dassault had quoted in response to the Indian tender of 2007 for 126 medium multi-role combat aircraft (MMRCA). Of those 126 fighters, the first 18 were to be supplied in "flyaway condition", i.e. fully built. Since 36 Rafales are now being bought in "flyaway condition", their per-piece price must be lower than what Dassault quoted for those 18 fighters.

The Indian Air Force had chosen the Rafale on January 31, 2012, in India's tender for 126 MMRCA aircraft. However, in protracted price negotiations that followed, the defence ministry found problems in Dassault's financial bid. Eventually, Modi chose to abandon the MMRCA tender, and instead buy 36 Rafales over-the-counter.

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Strange Rafale Deal and Other Murky Acquisitions
(Source: NewsClick India; posted February 19, 2016)
By D. Raghunandan

Decision making in India as regards military equipment acquisitions has always been opaque, murky and somewhat enigmatic. The apparent arbitrariness of decisions and technology choices, not to mention actual skullduggery, has long opened the doors to suspicion and all manners of conspiracy.

In an effort to make the process more transparent and hopefully less open to doubts about corruption, a Defence Procurement Policy with set procedures has been in place now for several years, having gone through multiple revisions supposedly to improve the policy framework and keep pace with changing technological and arms trade scenarios in India and around the world.

However, given the bureaucratic tangle that is the dominant characteristic of governance in India, not excluding in military matters, and notwithstanding the supposed supremacy of the political leadership, the successive avatars of the Defence Procurement Policy have only added more complexity and haziness, making decision-making even more tardy and opaque.

Labyrinthine and ineffective acquisition process

The deal to acquire Rafale fighters from France is the most recent example of the notoriously labyrinthine, expensive and ultimately ineffective defence acquisition process in India. The long-pending deal for outright purchase of 36 fighters from France through a government-to-government agreement, the muddled final outcome of an even longer and more tortured process to acquire 126 Medium Multi-Role Combat Aircraft (MMRCA), was expected to be clinched during French President Francois Hollande’s recent visit to India as chief guest at the Republic Day Parade, but was not, due to still pending financial negotiations.

Confusion prevailed in New Delhi even while president Hollande was still in India, as Government spokespersons first said an Inter-Government Agreement (IGA) had been signed, but later recanted and said only an MoU had been signed, and tried to explain away the embarrassment by claiming the MoU nevertheless marked an important step. An MoU towards an Agreement towards a Deal! Both governments clearly want to garner whatever headlines and brownie points can be garnered by making repeated announcements, first by India declaring it had selected the Rafale, then by Hollande and PM Modi in Paris during the latter’s visit, and then by both during the former’s visit to India. Yet the deal still seems far away and getting mired in uncertainty by the day.

There may even be more to this than simple confusion, going by other recent moves and announcements by the Modi government, especially by the increasingly headstrong Defence Minister Manohar Parrikar. These suggest that some new thinking about military hardware procurement may be underway and unfolding gradually. And the portents are from happy.

Whimsical decision

The abrupt decision mid-2015 by the Modi Government to drastically scale down the MMRCA acquisition from 126 to a mere 36 Rafale aircraft came as a total surprise. More so the reason Manohar Parrikar advanced, stating that the financial burden was way too much and would hamper other Indian military modernization plans, and that the earlier decision to acquire 126 aircraft was “unviable” and “not necessary,” further suggesting that it had been taken by the previous UPA government without adequate consideration of all the factors. “I also feel like having a BMW and Mercedes. But I don’t because I can’t afford it. First I can’t afford it and second I don’t need it. So, 126 Rafales was economically unviable. It was not required.” (Interview to Indian Express, May 31, 2015).

The Defence Minister, with all the authority that position carries, stated that the new decision to acquire only 36 Rafales in fly-away condition was taken to meet “the urgent requirement” of the Indian Air Force and the fighters would be used only for “strategic purposes” since they were not, in any case, a replacement for the retiring MiG-21, the gap left by which would be filled by the indigenous LCA.

To sum up, Mr.Parrikar’s contention was that the earlier decision was completely wrong, that the Rafales were not really required, but that the 36 Rafales were purely a stop-gap arrangement, only to help the IAF overcome immediate aircraft shortages.

The Minister perhaps felt that his remarks would help clear the air, bring in more transparency, and bolster his image and that of his government as being bold, unafraid, decisive and unhesitant about taking tough decisions. In fact, the explanation, if taken as a true reflection of the government’s considered opinion, is an astonishing indictment of the entire institutional mechanism of defence procurement and, after years of periodically revised and structured defence procurement policies, moves in the retrograde direction of re-establishing arbitrariness and whimsy as key decision-making parameters in defence acquisition.

Are we to now understand that all those years the IAF took to analyze its current status and future requirements, framed its General Staff Qualitative Requirements (GSQR) based on which it issued the global tender or Request for Proposals (RfP) were all not thought through and a waste of time?

Earlier the IAF had framed its requirements for a multi-role combat aircraft (MRCA), then revised this to a “medium” or MMRCA based on its requirement for a multi-role aircraft (Dassault calls Rafale an “omni-role” fighter) with a stress on its deep-penetration strike function in a slot between the lighter MiG-21 or Tejas primarily playing an interceptor role and the heavier SU30-MKI for air superiority. Did the IAF really err in this assessment of its requirement? By what process did Raksha Mantri (RM) revise this requirement and decide that it was “not necessary”? Was the IAF fully on board, did the Defence Acquisition Council get to hear different opinions? Or was it purely a financial decision, in which case RM’s remarks quoted above were incorrect? In fact, even after the RM’s announcement of curtailing Rafale purchase to 36 or 2 squadrons’ worth, the IAF Chief reiterated the requirement for at least 6 squadrons or 108 MMRCA fighters!

IAF in trouble again

This decision leaves the IAF once again in a bad position. LCA Tejas, even the avowedly underpowered Mark1, is still several years away from induction and serious work on Mark-2 has barely begun. The redoubtable MiG-21s are virtually finished, and the few remaining aircraft are on their last legs and will certainly take the lives of a few more young pilots before that chapter is finally closed. The medium strike aircraft, whether Jaguars or MiG-27s, and the earlier MCRA such as the Mirage 2000 are also on the way out --- they are ageing, have already been upgraded to prolong their usefulness and life, are too few in number and facing numerous problems of their own.

The IAF once again has (or soon will have, if the Rafale deal finally comes through) a couple of squadrons of one type of aircraft, along with a few squadrons of so many different aircraft types. As repeatedly underlined in these columns, this is putting a great strain on IAF ground personnel who have to service and maintain so many different aircraft types, and carry a mind-bogglingly diverse inventory of spares. With just two squadrons of Rafales, therefore, the Indian Air Force will continue to be, not a well-organized and efficient force with a few types of aircraft for well-defined roles, but like a zoo with a few animals of each type for onlookers to look at and admire!

And even this is still shrouded in uncertainty. Last year, RM said only the financial aspects needed to be ironed out, and this would be done in 2-3 months. Many months have gone by, and it was announced during President Hollande’s visit that the “final negotiations” would take a further few months!

This is indeed a strange way to conduct a procurement process. When “L1,” i.e. the lowest bidder among technically suitable candidates is selected, this is normally supposed to include full consideration of the cost aspect as well. Or it should! But the way India conducts tender evaluations and contract finalization, “final price negotiations” are conducted after L1 has been selected and thereafter, prolonged negotiations take place over base price, life-cycle costs, spares and maintenance, offsets etc. Surely, all of these should have been part of the tender documents and should have been factored-in when comparing the bids?

In India, this adds yet another enormously frustrating, time-consuming process to an already stretched-out procedure, adds further cost to the final deal, not to mention the additional burden heaped on the IAF and the added risk to national security. More bureaucracy, more confounding procedures, more delays, more cost! When the MMRCA deal was first spoken about, the total cost for 126 aircraft, the “mother of all defence deals” was estimated to be around $10-12 billion. Today India is buying 36 Rafales for around the same amount!

Dassault is pushing for higher price obviously because India has already declared its choice in favour of the Rafale. With no serious domestic manufacture in India possible since only 36 aircraft are being bought, offsets too become difficult and spares too will have to be bought outright, all pushing costs up further.

To add to all the confusion, RM Parrikar recently said that a few more squadrons worth of MMRCA may be added to the IAF, which may or may not be Rafales but some other aircraft!

When the MMRCA acquisition was in the process of being delineated, 6 aircraft had been short-listed, of which 4 had been rejected as not meeting the essential requirements. The Eurofighter Typhoon and the Rafale were both subjected to rigorous field tests under different conditions under which the IAF operated, after which Rafale was selected. So if additional Rafales are not being contemplated, which other aircraft will match the requirements? If just any other aircraft will do, then why was such a strict short-listing done earlier? More questions, no satisfactory answers.

Fake in India?

With the MMRCA tender having been scrapped, all the earlier aspirants for what was expected to be a humongous deal are hovering in the Indian skies once again. Since the Modi government seems keen to push its ‘Make in India’ campaign, and there is no scope for manufacture of Rafales in India with just 36 aircraft being bought, international aviation majors are sensing an opportunity. Boeing is running full-page ads in newspapers once again, asking why any country should be interested in a partnership with a $5 billion firm (Saab) when a $75 billion firm (Boeing) is offering its services? Readers may remember that Boeing had earlier offered its capable but 30 year-old F/A18 and is now pushing this for co-production under the Modi Government’s much touted ‘Make in India’ banner.

Saab continues to push its Gripen, the Eurofighter is ever present, and many other aircraft majors are sure to soon start circling the skies.

Nor are they alone. Indian engineering majors such as Tatas, L&T and johny-come-lately Reliance are racing to form partnerships with foreign aviation companies to ‘Make in India.’ And just last week, the indefatigable RM Manohar Parrikar declared that soon India will start making fighter aircraft in India through the private sector, obviously with international partners. As everybody knows, and as many commentators including retired senior Air Force officers have pointed out, none of these Indian firms have the necessary capabilities to contribute to development of aircraft systems and they can and will remain only assemblers or sub-contractors.

As argued earlier in these columns, India needs a well thought-out strategic programme to acquire independent design-development capability which will not come through co-production alone. India has had a long history of licensed production but, in the absence of a concerted plan, has failed to build such capability. ‘Make in India’ is just an offer to provide cheap labour, and does not even realize that there is a shortage of skilled workforce for an advanced aviation industry. At present, only defence PSUs can provide even such facilities and effort can, and should, then be made to convert manufacturing know-how to design-development capacity.

Unfortunately, the powers that be have not learned this lesson even the hard way. When PM Modi visited Russia recently, he was accompanied by a bevy of these Indian private sector engineering majors hoping to snare a contract for ‘making in India’ the Kamov 226 light utility helicopters being negotiated with Russia. All of them returned empty handed because, much to the discomfiture of the Indian government and largely ignored by the pink press and corporate media, Russia said it would work with the public sector Hindustan Aeronautics Ltd (HAL)!

Artificial methods to grandfather sweet deals for chosen Indian corporates, with whatever other gratifications are on offer, are no way to build genuine independent capability to develop and manufacture advanced defence hardware.

‘Make in India’ should only be about some people making money. It should be a route to self-reliance, which it is not under the present dispensation.

-ends-
Click to expand...
 
Maybe again...

http://www.janes.com/article/60779/india-aims-to-conclude-rafale-deal-by-june
 
Dassault Aviation ready to sign Rafale deal, ball in India's court

REUTERS/DENIS BALIBOUSE

Dassault Aviation is ready to sign a contract with India at any moment, but the ball is in India's court, chief executive Eric Trappier told French daily Les Echos in an interview published on Tuesday.

The Indian defence ministry said in April protracted talks to buy 36 French Rafale fighter jets were nearing the finish line.

"We are ready to conclude (the sale) at any moment, the ball is in the Indian government's camp," Trappier was quoted as saying.

Asked about reports in Indian media that a bank guarantee was required for the deal, he said that was not the case since the deal was already guaranteed by the French state.

Asked about business jets, Trappier said: "Business jets are a good barometer of the global economy, and, this year, it will be difficult."

(Reporting by Ingrid Melander; Editing by Mark Potter)
Click to expand...

Source
 
It seems it's for Friday the 23rd of September (2016...).

One among all the articles from today about this :

http://images.tribuneindia.com/news/nation/cabinet-panel-clears-final-rafale-draft/298906.html

The origin of the information is the french Agence France Presse (French Media Agency) from "India's Defence Ministry sources".

Edit :

"A(n India's) Government source told Reuters" too :

http://in.reuters.com/article/india-defence-rafale-jet-deal-idINKCN11R1W7
 
Done :

https://www.youtube.com/watch?v=o8xle1idnYg

https://www.youtube.com/watch?v=pbfb_0VHm-g
 
https://www.flightglobal.com/news/articles/aero-india-lockheed-powers-up-india-f-16-pitch-434158/

Lockheed is still pushing the Block 70.
 
Rafale in India: supreme court : Amid Rafale Row, Supreme Court To Hear Request To Put Jet Deal On Hold

The Supreme Court has agreed to hear a plea next week, seeking a stay on the Rafale fighter jet deal between India and France.
A bench of Chief Justice Dipak Misra and Justices AM Khanwilkar and DY Chandrachud considered the submissions of advocate ML Sharma that his plea be listed for urgent hearing.
In his petition, Mr Sharma has alleged discrepancies in the fighter jet deal with France and sought a stay on it.
Mr Sharma has claimed in his plea that the inter-government agreement to buy 36 Rafale fighter jets must be quashed as it was an "outcome of corruption" and not ratified by Parliament under Article 253 (Parliament has power to make any law for implementing any inter-government agreement) of the Constitution.
Click to expand...

Also
India's highest judicial authority has said it will urgently consider an application for the suspension of the agreement [for] corruption" and [because the Rafale contract was not] ratified by Parliament as required by Article 253 of the Constitution,"
Click to expand...

Source:
NDTV.com
Les Echos.fr
 
Well, if India supreme court starting reviewing past, present (and probably future) arm deals, for boats, tanks, aircrafts, in India and elsewhere, then... I wish them good luck. Then again, those crumbling MiG-21 will probably keep killing pilots for the next centuries or millenia to come. Or maybe they should start buying quadcopters out of the closest kid shop. no corrupt bargains this way.
 
Well, waiting for the judgment on the (at least) treacherous, arrogant, infamous and short-sighting bad Frenchs :

https://timesofindia.indiatimes.com/india/iaf-quietly-making-preparations-to-welcome-rafale-jets/articleshow/65741485.cms
https://indianexpress.com/article/india/first-rafale-for-india-being-flight-tested-in-france-only-one-will-arrive-custom-made-5345837/
 
And a little more from IAF :

http://www.defense-aerospace.com/article-view/release/195902/indian-air-force-leak-details-rafale-acquisition-costs.html
 
The "MKI" is now flight tested in France. First prototype is tested in France right now with all the specific mods while the 35 other will be modified directly in India. Test flight planned for 5 years. Conversion should in theory start thereafter (in India).

No link right now but it's in the press already

Enjoy!
 
TomcatViP said:
The "MKI" is now flight tested in France. First prototype is tested in France right now with all the specific mods while the 35 other will be modified directly in India. Test flight planned for 5 years. Conversion should in theory start thereafter (in India).

No link right now but it's in the press already
Click to expand...

Deltafan said:
https://indianexpress.com/article/india/first-rafale-for-india-being-flight-tested-in-france-only-one-will-arrive-custom-made-5345837/
Click to expand...
 
Well, the bad Frenchs are not bad for everybody everywhere, even in India… :

https://www.youtube.com/watch?v=HvwlicP4WHg&feature=youtu.be

But the politicians are the same, everywhere, even in India...
 
The range and loitering figures displayed 12:00 are quite strange.

A clever assumption would also have been for them to ask how much the IAF would pay on the market today for a similar package of performances (airframe and weapon systems) since this is at the heart of the polemic.
 

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