An AEW would be a costly modification to undertake.VERTRep certainly. However the news item even mentions another configuration (one that had slipped my mind); as an AEW a/c. Now that is interesting since we have'nt heard about the design freeze on IAC 2 and IAC 3. STOBAR or CATOBAR?
Apart from the utility of Ospreys on the projected LPD (or LCH) series. We have to wait and see what eventually transpires.
Moreover.. the osprey's "repute" is not all rosy.
Its speed advantage does not apply too much to India's requirements.
for an AEW, whether STOBAR or CATOBAR.. a Helicopter based AEW platform such as one based on the Sea-king or Merlin makes better sense.