Aerospace Diary

Neelam Mathews April 16, 2015 Following India’s delayed decision on the Medium Multi Role Combat Aircraft (MMRCA), a process initiated in 2000, the announcement by Prime Minister Narendra Modi on the first day of his trip to France on Apr 13, for an ‘in principle’ clearance for the outright purchase of 36 Rafales in flyaway condition, is being seen as a game changer in the way defense procurement will now be done in India. The buy includes life cycle support and 50% offsets, AerospaceDiary learns While India is expected to exercise its option clause for 18 Rafales in future for outright buys that will take its Rafale squadrons to three, in a recent interview by IBN7 with Defense Minister Manohar Parrikar clearly indicated a desire to produce a single-engine fighter on Make in India basis. According to Parrikar the original deal for 126 is valued at approximately $14.50 billion, which leaves a large amount of money to consider the single-engine fighter. We are guessing it wi...

Neelam Mathews Jan 7, 2014 While many have been skeptical about the MMRCA contract - not without reason- AerospaceDiary is hearing there is a CCS today to view the contract/project. This could not be confirmed from an official source. Should this come through, India's defense industry, hopefully, will get the much needed push- given that all issues related to the DPP are cleared with sane thinking. Hopefully vested interests will not stall the project. We are hearing the MMRCA is quoted in international circles as one of the best evaluations done on a military project.

Neelam Mathews March 4, 2013 Defense Queries Answered Today (Verbatim) in Lok Sabha on- HAL- So what’s new? More Excuses? Hindustan Aeronautics Limited (HAL) has taken up indigenous production of SU-30 MKI fighter aircraft, Light Combat Aircraft (LCA), Advanced Jet Trainer (Hawk), Intermediate Jet Trainer (IJT), Advance Light Helicopter (ALH), Light Combat Helicopter (LCH), Light Utility Helicopter (LUH) and Dornier-228 for the defence forces. Dornier-228 program has been as per schedule. There have been some delays in deliveries in respect of production programs of other aircraft. In the initial stages of the projects, delays were due to additional re-work on jigs in Hawk, late receipt of drawings from Russia for Su-30 MKI, integration issues of Integrated Architecture and Display System (IADS) with Shakti engine and other new items in respect of ALH and design and development issues relating to IJT and LCA. The certification of IJT was also delayed due to an accid...

Neelam Mathews Oct 5, 2012 The much talked about and discussed C-130J Weapons System Trainer (WST ) has arrived, Air Chief Marshal NAK Browne confirmed to Aerospace Diary today. A Lockheed Martin official had confirmed to us during a recent trip to the US that the simulator would be in India by the end of the year.   The WST will be placed in Hindon airbase where a MiG-21 simulator exists that is being moved away. There has been criticism in the past regarding the exclusion of the WST as part of the offsets. According to an article in 2010, “Had the WST been part of the C-130J contract, Lockheed Martin would have been liable - in accordance with Defense Offset Policy, to pay 30 percent of the cost of the simulator as offset. ” This is brushed away by a former IAF official who says: “Who would have thought in bygone days of needing a simulator for training for a transport aircraft? Things have changed with hi-technology now….It was an honest mistake.”   Aerospa...

Neelam Mathews Aug 2, 2012 The cry  for making amendments to the offset policy retroactive is getting louder as many in the industry feel the very concept of making changes to offsets in the past will prove worthless and not give the Indian industry a boost as major projects including the MMRCA are already covered under older policies. Time and again, the government has made it clear, it will not do so. But these are changing times. Who would have thought there would be such a radical change in the government thinking that it would one day even consider allowing a 'private sector only'  project without DPUs involvement as in the case of the replacement of the Avros? The solution is so clear and simple that one is surprised it hasn’t been implemented nor discussed.  “Offset amendments have taken place to improve offsets and boost Indian industry. Take the MMRCA for instance. If commercial bids (MMRCA) were opened in November last year, the offset polic...

India’s Procurement Policy Remains A Challenge FARNBOROUGH AIR SHOW  »  JULY 12, 2012 by    NEELAM MATHEWS July 11, 2012, 6:05 AM Boeing has expressed in no uncertain terms to  AIN  the pain of having to honor offsets in India and the challenge of managing a constantly shifting policy landscape. The growing Indian defense budget  ($44 billion by 2016) may be attractive but it would seem that the trials and tribulations being faced by initial winners such as Boeing could be a significant downside for the foreseeable future. “The biggest challenge is the defense procurement policy [ DPP ],” Christopher Chadwick, president of Boeing Military Aircraft, told  AIN . This is not just a Boeing challenge but an industry issue…The intentions of the Indian government that the Indian industry should grow, we support,…but the speed [of acquisition] cannot absorb the offsets.” Defense procurements in India call for an...

Posted by- Neelam Mathews June 21, 2012 India’s first “MAKE Program has been approved by the Ministry of Defense as part of its impetus to indigenisation by finalizing two development partners for Tactical Communication Systems (TCS). Alongside, Bharat Electronics in the public sector, MoD has selected a Special Purpose Vehicle (SPV) Company formed by three private sector defence majors. Led by L&T, the SPV includes Tata Power SED and HCL Infosystems Limited. Among the few programs currently classified in the "Make" category, TCS is the first one to have reached this stage of finalisation of development partners and also the first-ever program where three major private sector companies have come together to form a consortium, under the leadership of one company, setting aside individual interests to synergize their capabilities, with a common goal of developing an Indian solution for this strategically important program. FICCI says it believes that this approach dem...

Aviation Week & Space Technology Feb 14 , 2011 , p. 36 Neelam Mathews Bengaluru Leithen Francis Bengaluru Massive offset demands expected to help spur India’s industrial wherewithal Printed headline: Building Project India’s aerospace industrial growth strategy is about to get a major shot in the arm, with the government planning to spend more than $80 billion on procurement in 2011-15, triggering a huge inflow of offset deals by the winners. The activity is also causing the industry to restructure, with streamlining efforts and consolidation on the horizon as businesses shift focus from serving the local market to becoming globally viable players. India’s Defense Offsets Policy mandates that 30-50% of a contract total be plowed back into the domestic aerospace industry. New Delhi hopes that after years of unsuccessfully trying to get the aerospace industry to stand on its own two feet, this surge in activity will ...

Aerospace Daily & Defense Report (PDF) - Jan 12, 2010 NEW DELHI — India’s cancellation of the contract for six A330 inflight refuelers on Dec. 30 is worrying international companies, which complain that transparency is decidedly lacking in Indian defense procurement. Russia’s Ilyushin IL-78 was disqualified as having an incomplete bid, and price negotiations started with EADS last year. The finance ministry — after price negotiations were being finalized — objected to the higher price quoted by EADS, and the Russian bid was accepted. The Russians did not change their bid, instead including five extra engines and depot-level servicing under the original price. India’s Defense Procurement Procedure permits the second lowest price (L2) to be considered if the lowest price (L1) is rejected. Interestingly, in January 2009 the Russian bid was 1.05 billion euros (without the extra five engines and maintenance). This price had inflated 384 percent since 2004, when India purchased six IL-78...