*New Delhi:* Bemused by Chief of Defence Staff (CDS) Gen Bipin Rawat’scommentslinkthatIndia will stagger the purchase of 110 fighter jets, foreign companies areset to approach the Indian Air Force (IAF) for clarity on what happens tothe mega-contract under which planes are to be built in India through astrategic partnership.
Industry sources said that a staggered purchase hands an advantage to theFrench firm Dassault Aviationlink,which already has a contract for 36 fighters, the Print has reported.
They also said that there is no scope for actual Make in India in astaggered purchase process unless one is talking about assembling kits ofsome number of aircraft in the country. This is contrary to the earlierplan to manufacture them through a strategic partnership.
The Print had reported in August 2019 that there is a growing viewlinkinthe government and the IAF that rather than focusing on pure numbers interms of squadron strength, more thought should be given to the capabilityof the systems.
——————————*What the firms say about the CDS’ comments*
The firms in contention told ThePrint that they are “confused” by the CDS’comments.
“This is really confusing. If the CDS says there will be staggeredpurchase, then what happens to the Request for Proposal (RFP) for 110fighters that we have been waiting for? Will there be any RFP,” a seniorofficial of a foreign firm in the race for the IAF contract told ThePrint.
Another official of a different firm questioned what happens to the Make inIndia initiative.
“There will be no Make in India possible for a limited number of fighters,”the second official said underlining that a large order would helpcompensate for the hard work and the investment that one will have to putin for Make in India.
A representative of a third Original Equipment Manufacturer (OEM) said thatthere needs to be clarity on what exactly India is looking at so that thecompanies can offer that as per the demand.
“It makes no sense to come out with an RFP for 110 or 114 fighters when theinside thinking is that the purchase needs to be staggered,” therepresentative said.
All the company officials that ThePrint spoke to said that they will seekclarifications from the IAF.——————————*Advantage Rafale*
Industry sources said that it is a clear advantage for Dassault Aviation,which bagged a Euro 7.878 billion deal in 2016 to supply 36 Rafale fightersin the fly-away condition. The first set of four Rafales is set to land inIndia by April or May this year.
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Rafale had initially won the mega IAF contract for 126 fighters but thedeal could not go through because of a web of issues – primarilydifferences in cost between the French and HAL.
And then in a surprising move, the Modi government announced its intentionto buy 36 Rafales in 2015.
There has been speculation for a while that India will be buying at least36 more Rafale fighters once the earlier ordered jets begin gettinginducted into the IAF.
There is a thinking in the government that 36 more Rafale along with the 83LCA IA and Mark II versions equipped with modern and long-range missilesand systems will help in shoring up the IAF’s strength.
Incidentally, Gen Rawat had touched upon Rafale during his interaction withjournalists Monday.
“Why do you think only 36 Rafales were bought,” Gen Rawat had saidexplaining why according to him it makes sense to buy in a staggered manneras it would reduce the cost and also staggered servicing.
On whether this meant that more Rafales could be bought, the CDS saideverything depended on what the requirements are.
Defence sources said that additional Rafale would be cheaper than the oneordered in 2016.
This is primarily because a large component of the Euro 1,700 million paidfor India Specific Enhancements will come down as the majority of the costwas for Research and Development, modification and certification.
Also, the cost of setting up base and training will also come down. Indiahad paid for setting up two bases for just 36 aircraft. These bases caneasily accommodate more aircraft.
