Aerospace Diary

Neelam Mathews March 28, 2018 India's LCA, also known as the Tejas, has suffered delays and technical issues. (Photo: Neelam Mathews) PS- The RFI for fighters was released soon after the story was published (no connection!) Watch this space for more analysis. Indian military fighter procurement is fast becoming a comedy of missed deadlines. A commitment to manufacture the indigenous Light Combat Aircraft (LCA) as opposed to producing a foreign design in the country has led to a series of reversals on procurement for the Indian Air Force’s fighter requirements. The delays in decision-making come against a background of the IAF’s depleted squadrons and the need to replace aging aircraft such as the MiG-21. The Indian Navy, too, is awaiting the release of a r  equest for p  roposal for 57 fighters for its aircraft carriers, for which it has issued a r  equest for i  nformation (RFI). This followed delays to the single-engine, tailless delta LCA (Tejas) that i...

Authors:  Bharat Anand Partner & Kabir Bogra  Associate Partner Khaitan &  Co  With the conclusion of the contract for supply of 36 Rafale Medium Multi-Role Combat Aircraft (MMRCA) to the Indian Air Force (IAF) for approximately $8.8 billion, the focus of the discussion has now shifted to what the deal means for India and the development of the Indian defence sector. In terms of the immediate prospects for the defence industry, the deal offers limited scope for the defence industry. The “fly away” nature of the aircraft imply implies that no part of the manufacture of the aircraft would be undertaken in India. However, the defence industry can hope to play some part in the two MRO centres and the 50% offset that France has committed for the deal. While the offsets alone would constitute business worth at least 3 billion Euro (approx. INR 22,000 crore), it is a far cry from the aspirations of the industry to participate in the manufa...

Neelam Mathews and Chris Pocock Sept 23 2016 French Defence Minister Yves Le Drian (left) signed the inter-governmental agreement on the Rafale with Indian Defence Minister Manohar Parrikar. More than four years after the Dassault Rafale  was chosen  for its Medium Multi-Role Combat Aircraft (MMRCA) requirement, India has signed an inter-governmental agreement with France worth €7.87 billion for 36 aircraft. The deal was inked in Delhi today by the defense ministers of both countries. It specifies details of the contract, including timelines. However, the support, logistics and 50 percent offsets package will be signed in a few months, a senior MoD official told  AIN . While the agreement has an option clause for 18 more Rafales, it is unclear whether more of the French jets will eventually be manufactured or assembled in the country, under the terms of the “Make In India” policy. The  original  MMRCA  requirement ...

by  Chris Pocock  and Neelam Mathews  - April 15, 2015, 4:45 PM This model of the Rafale in Indian Air Force markings was displayed at the last Aero-India show. (Photo: Neelam Mathews) The new Indian government’s decision ‘in principle’ to  buy 36 Rafale combat aircraft  direct from the Dassault production line in France, announced by Prime Minister Narendra Modi on April 10, appears to spell the end of the medium multi-role combat aircraft ( MMRCA ) acquisition process. Speaking on Indian television two days later, defense minister Manohar Parrikar acknowledged that the protracted delay in closing the  MMRCA  deal, caused largely by difficulty in agreeing terms and conditions for licensed production of the Rafale in India, had not served India well. Under the  MMRCA  plan, the Indian Air Force ( IAF ) would have received its first squadron of 18 Rafales from France, 12 single- and six twin-seaters. A further 108 woul...

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...

by  Chris Pocock  and Neelam Mathews     March 26, 2015 The first two Indian air force Mirage 2000s to be upgraded were handled by the Dassault Flight Centre at Istres air base in France. (photo: Dassault Aviation) In a ceremony at Istres airbase in southern France on March 25, the Indian Ambassador to France accepted the first two Indian Air Force (IAF) Mirage 2000 fighters to be upgraded by Dassault and Thales. It has been agreed that the rest of the IAF fleet will be upgraded by HAL in Bangalore – a fact that the leadership of Dassault and Thales were keen to point out, in view of the long delays in sealing a licensed production deal for the Rafale. After a two-year development phase, the first flight of the upgraded Mirage 2000 I/TI took place at Istres on October 5, 2013. Today’s ceremony is the result of the excellent understanding between the Indian and French partners and of our commitment to India,” said Eric...

Neelam Mathews                March 27, 2015 Time, you old Gypsy man, will you not stay, Put up your caravan Just for one day? All of us with an association with the defense industry know that the 1920 lyrics still hold good today. The fact is MoD is running out of time. While the intent is clear to move procurement forward, there seems to be a clear hiccup and lack of understanding in the bureaucrat arena on the DPP 2013 clause that requires Indian companies to be the prime. Rather paradoxically, this is the very reason that will hold defense manufacturing from taking off for large projects. Take the Avro replacement. While OEMs will conveniently absolve themselves from the liability clause, one doubts Indian companies with little maturity and experience can take on liability of the equipment. One should learn from the MMRCA where in a reverse case, is the major reason Dassault is unwilling to take ...

Neelam Mathews June 23, 2014 Looks like it's good news all the way. Either ways, whether the MMRCA is signed or not at Farnborough Air Show, it is pretty clear, things are moving at a fast pace in the corridors of power. Clearing the MMRCA deal fast is being viewed as a way to showcase India and the fact the new government is open to business, AerospaceDiary learns. The question is, one hears whether the announcement should be made in the country or at a global forum Two main issues still need to be cleared, we learn. And while not all defense contracts can be signed this year- given the empty state of coffers, some like the MMRT might see the light of day. The ill-fated 197 LUH could be rebid. Those sceptical of India and defense exports might be in for a surprise once the 49% and 74% FDI for transfer of production comes in. Hopefully, 'on a case to case basis ' won't follow the route the Congress Govt swore by! So here's to hope and good days ahead. ...

AIN DEFENSE PERSPECTIVE  »  MAY 30, 2014 by    NEELAM MATHEWS Arun Jaitley, India’s new defense and finance minister, meets Air Chief Marshal Arup Raha. (Photo: Indian MoD) May 29, 2014, 3:55 PM A lack of decision-making on large Indian defense procurement deals in the past two years is expected to end with the swearing-in of the new government headed by Prime Minister Narendra Modi. Changes in procurement and offset policies are also expected. Major projects that are in the final stage of processing and require a signature for conclusion include the 126-aircraft  medium multi-role combat aircraft ( MMRCA ) won by Dassault Aviation’s Rafale ; the Airbus A330 multi-role tanker transport ( MRTT ); and naval multi-role helicopters. While these are likely to be signed this financial year, a crash crunch could hold other decisions until next year. To fast-track some projects, the Ministry of Defence has proposed an approxim...

AIN DEFENSE PERSPECTIVE  »  JANUARY 10, 2014 by    NEELAM MATHEWS India chose Dassualt's Rafale for its medium multi-role combat aircraft in 2012. (Photo: Neelam Mathews) January 9, 2014, 8:15 AM With national elections looming in India, speculation is growing that contracts for the long-delayed medium multi-role combat aircraft ( MMRCA ), as well as the multi-role tanker transport ( MRTT ), could soon be signed. India announced  its choice of the Rafale  in January 2012. But negotiations  subsequently stalled  over offsets, the transfer of technology and the role of Hindustan Aeronautics ( HAL ).  Delays in procurement are taking a toll on military force levels as Indian Air Force ( IAF ) squadrons deplete. This has resulted in pressure on the Ministry of Defense to increase the pace for awarding pending contracts. A government code of conduct prevents any contracts being awarded within 45 day...

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 Jan 2, 2014 While nothing can ever be confirmed in the world of defense procurement in India till the ink dries on paper, it is becoming increasingly clear that a basic contract will be signed with Dassault Aviation in the next 45 days for the MMRCA. This is simply because the 45 day election morotarium starts on Feb 15, we are being told. HAL will be in the picture as the RFP clearly says, and we are also hearing some large private companies are in the picture for supplying aerostructures. Even as the AgustaWestland deal has been cancelled, a source tells us: “The government wants to ensure Dassault gets the contract so that the deal cannot be questioned by subsequent governments.” We are also hearing internal discussions on the basic contract have been completed by the IAF.

AIN DEFENSE PERSPECTIVE  »  OCTOBER 11, 2013 by    NEELAM MATHEWS India will receive its first 10 C-17s by next year. Six more are expected to be ordered. (Photo: Indian Air Force) October 11, 2013, 12:25 PM The Indian Air Force ( IAF ) has expressed concern that major aviation-related defense procurements will be delayed following the sudden death of Arun Kumar Bal, Ministry of Defense chief negotiator for air acquisitions. “It will take around three months for his replacement. This is a setback for anything the  IAF  is acquiring,” Air Chief Marshal  NAK  Browne told  AIN . One such acquisition is the approximately $20 billion contract for 126 Rafale fighters the service ordered from Dassault Aviation to fill its need for a  medium multi-role combat aircraft ( MMRCA ) . A contract signing had been expected by the end of this year, but this “will also be delayed,” said Browne. Furthermore, the j...