Posts

Showing posts with the label offsets

Dassault Reports Rafale Progress in India

Image
by  Neelam Mathews  -  April 19, 2018, 10:01 AM A model of a Rafale in Indian colors displayed on the Dassault stand at an Aero India show. (Photo: Neelam Mathews) The training of Indian pilots and maintenance personnel in preparation for delivery of Rafale fighters is in progress in France, Dassault Aviation chairman and CEO Eric Trappier told  AIN  in describing progress with the Indian air force contract for 36 Rafale fighters. He also commented on the latest Indian request for information (RFI) for more new fighters while visiting India as head of a delegation from the French Aerospace Industries Association (French acronym: GIFAS). However, Trappier made only passing reference to the financial and legal troubles that have recently beset the Reliance Group, Dassault’s partner in India for the Rafale contract.  In addition to the training in France, India is preparing a hangar at the Reliance Defence facility at Nagpur, where part...

Guest Column -DASSAULT RAFALE DEAL – IMPACT ON INDIA AND THE DEFENCE INDUSTRY

Image
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...

India Finally Confirms Rafale Deal

Image
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 ...

Paris Air Show 'Make in India' Push Means More Open Offsets

Image
Neelam Mathews June 15 2015 As part of the "Make in India" initiative, Tata Advanced Systems links up with Airbus to produce C-295 transports in country. Airbus said every one of its programs includes parts from India Defense manufacturing in India is undergoing a transition from a traditional buyer-supplier relationship to a more open and transparent one. Easing of licensing policy, an increase in foreign direct investment from 26 to 49 percent and a forecast that envisions a 10-fold increase in exports (presently at a miniscule 0.3 percent) are drivers propelling a defense sector currently riding high on the “Make in India” program. The initiative was launched and promoted widely by new Prime Minister Narendra Modi. An attempt to boost GDP, Make in India sees aerospace and defense (among other industries) as its focus to enhance skill development and build an efficient manufacturing infrastructure. Transparent policies and speedy implementation are also...

Opinion- Single-engine fighters- Make in India?

Image
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...

India Mulls More Changes To Defense Acquisition Rules

AIN DEFENSE PERSPECTIVE  »  APRIL 5, 2013 by    NEELAM MATHEWS April 5, 2013, 12:35 PM The  AgustaWestland deal in India for  AW 101 helicopters  that is being investigated after bribery allegations has prompted the Indian government to re-examine its already delayed defense procurement procedure 2013 ( DPP ). This is now focusing on “indigenization,” which defense minister  A.K.  Antony described recently as the “ultimate solution to the scourge of corruption.” In the interim, until the  DPP  2013 is released, amendments on revised offset guidelines will include preference for Indian suppliers for bids. The clause on application-based software for enterprise resource planning ( ERP ), for which Indian companies already have the skills, will be removed. To encourage system-based software development in civil and defense aerospace, high-end avionics, flight controls, flight control laws and Cat ...

EXCLUSIVE! OPINION -From Russia with Love

Image
Neelam Mathews Dec 25, 2012 Even as India signs for 42 more Sukhoi 30-MKIs which will take the total in the IAF  inventory to 270  along with 100 Migs and    plans to add Fifth Gen fighters,  is raising eyebrows on whether the MMRCA will really take off in its present form. Maybe the French will sell us the 50 Rafales their air force cancelled? Who knows? And one wonders, who cares, except the military. Slowly but steadily, it seems pretty clear we are turning back to Russia for our arms procurement. At least it looks like that even as contracts like the MRTT and LUH lie in cold storage.  We are told the kitty is empty to pay for the first installment of the MMRCA. We are also told HAL needs to be clear what it can and cannot do. We are informed Dassault wants to deal with a private partner that in turn seems to have little inclination nor the resources to tap tier 2 and 3 business which may or may not be available as yet in the country. So where do...