DefPro : India Should Ensure Arms Deals Are Not One Way Traffic

Source :     DefPro
News By :   Deba R Mohanty, Senior Fellow in Security Studies
                 Observer Research Foundation (ORF)


With French Dassault Aviation’s Rafale now qualifying for the final round of negotiations with the government for its 126 fighter aircraft, most expect the final $10.3 billion deal to be clinched in a few months from now. The final cost will be decided through tough negotiations and once a figure is arrived at, this will be sent to the Cabinet Committee on Security for clearance.

It is useful to examine the deal on six parameters. First, the need for a large acquisition. It is now amply clear that the gap between a fast depleting (it could go down to 22 odd squadrons by 2018-18) fleet and what is required is increasing by the day-while the sanctioned fleet is 39.5 squadrons, successive air chiefs have hinted the ideal strength to be somewhere close to 45 squadrons. If the obsolescent quotient of the Indian Air Force (IAF) fleet strength crosses even 50 per cent (ideally, a typical fleet ought to possess 30 per cent state-of-the-art, 40 per cent current generation and 30 per cent ageing fleet), the capability of the air force will be severely hit. 

One may cite enough reasons for numerical deficiencies, but the hard fact is that India needs about 180-200 fighters in the next 10 years, especially in the current generation category, in order to remain modern, robust and battle-worthy. The 126 Medium Multi-Role Combat Aircraft (MMRCA) deal with Dassault, thus, needs a prudent follow-on order by 2017 at the latest.

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MMRCA - BAE Systems may cut Thyphoon price

Source : Reuters/IDRW

British defence company BAE Systems is looking at all options to win back a $20 billion tender with the Indian air force, the company’s chief executive told the Financial Times on Tuesday.

“I will be discussing with our partners what we do next. In my view, all options are on the table,” BAE Chief Executive Ian King was quoted by the FT as saying. 

India preferred a bid from France’s Dassault aviation last month, after competing with BAE to secure a 126 aircraft contract.

Dassault’s Rafale fighter jet undercut BAE’s Eurofighter Typhoon, an Indian government source told Reuters when the contract was agreed.

The FT cited King as saying BAE was considering reducing the price of the Typhoon, but needed to consult with its partners in Germany, Italy and Spain on the best options open.

Beyond the Rafale deal

Source : The  Hindu

India’s decision to select Dassault Aviation of France to supply 126 Rafale multi-role fighters caps a process that began in 2007 to replace the Indian Air Force’s ageing MiG-21s and augment its fleet of Sukhoi 30MKIs. Given the size of the contract — which, at upwards of $10 billion, is the largest defence deal struck by India — the acquisition of the Medium Multi-Role Combat Aircraft (MMRCA) was viewed in many quarters as a purchase in which political and strategic considerations would, or even should, play a role. Such a view was bolstered by the fact that each of the six competing aircraft originally short-listed had a lot to offer, the differences between them lying more along the perimeter than in the core. 

That technical and commercial factors prevailed over extra-contractual considerations became evident when the competition, following a slew of technical tests, was narrowed to two — the Rafale and the Typhoon, produced by a consortium of four European countries. Clearly, the selection process was uninfluenced by the United States administration, which had lobbied hard in favour of Boeing’s F/A-18 and Lockheed Martin’s F-16, suggesting that the acquisition of either was an important element in forging a closer strategic relationship. The rejection of the U.S.-manufactured aircraft underlined that we had, as one commentator wryly but wrongly noted, “settled for a plane, not a relationship.”

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MMRCA : Sarkozy promises technology transfer in fighter jet deal

Source : IANS

French President Nicolas Sarkozy Tuesday said the multi-billion dollar deal for Dassault Aviation to supplyIndian Air Force (IAF) will come with “important technology transfers”. advanced combat jets to

In a statement from his office, Sarkozy hailed the Indian government’s decision to select the French firm in an estimated $10.4 billion jet fighter deal. He said his government will back Dassault in its talks to finalise the order.

“The negotiation of the contract will begin very soon and has the full support of the French authorities. It will include important technology transfers guaranteed by the French government,” the president said.

“This announcement comes following competition that was at a very high level, was fair and transparent and which opposed two European finalists.”

He said the Rafale was chosen “thanks to the competitiveness of the global cost of the aircraft over its lifetime”.

“The realisation of the Rafale project will illustrate the depth and scale of the strategic partnership between France and India.”