selvan33
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France will have to accept India’s binding conditions in MMRCA deal
France will have to accept India's conditions in the almost $20 billion MMRCA (medium multi-role combat aircraft) project if it wants to eventually bag the contract to supply 126 Rafale fighters to the IAF.
Defence ministry officials on Monday made it clear that French firm Dassault Aviation could not back out of the conditions specified in the original tender or RFP (request for proposal) since they were "binding" on it.
Negotiations between MoD and Dassault have been proceeding at a slow pace for over a year now in the already long-delayed MMRCA project, under which the first 18 jets are to come in "flyaway condition'', with the rest 108 fighters being manufactured under licence by Hindustan Aeronautics over six years.
The major bone of contention has been Dassault's demand that it will be responsible only for the first 18 jets, while HAL will have to shoulder responsibility for the other 108 fighters after the kits for them are supplied to the defence PSU. MoD, however, has rejected this contention, holding that Dassault will be responsible for the execution of the entire project.
With this imbroglio holding up matters for the last few months, the two sides on Monday finally decided to keep aside their differences on this issue for now while moving ahead on other matters like pricing and support services. "It's a very complex project...negotiations for it will take time," said an official.
It was in January last year that Rafale had been selected over Eurofighter Typhoon - the two had earlier outclassed the American F/A-18 `Super Hornet' and F-16 `Super Viper', the Russian MiG-35 and Swedish Gripen in extensive field trials - for the final commercial negotiations since it had emerged as the L-1 (lowest bidder) both in terms of life cycle costs and direct acquisition costs.
http://timesofindia.indiatimes.com/...itions-in-MMRCA-deal/articleshow/19451623.cms
An aircraft deal turning sour
Complex defence contracts often lead to wrangling between buyers and sellers. Of all the big buyers of big-ticket weapon systems, India has the most cumbersome purchase process. Very often, even after a particular item has been selected, contractual bottlenecks lead to further delays. The latest example is the ambitious 126 medium multi-role combat aircraft (MMRCA) contract, under which the French fighter plane Rafale was selected last year. Now this deal has run into an air pocket.
Under the purchase plan, Dassault, Rafale’s manufacturer, was to provide 18 planes in a “fly-away” condition. The remaining 108 planes were to be manufactured in India by Hindustan Aeronautics Ltd (HAL). Dassault was to provide the complete kits for the planes. Trouble arose when Dassault said it could not be held responsible for delays and other problems, if they arose, with the planes built in India. The government of India would have none of it. It wants the French firm to assume responsibility for all the planes.
Part of the problem in this case is that HAL has a record that does not inspire confidence among the ultimate users of the equipment. There is a long history to this subject. At the policymaking level, however, priorities change and issues like self-reliance in defence manufacturing come into play. The government, of course, has larger issues to consider. For example, in case of a war, will the French, or for that matter other countries, supply India with spares? It is at that level that indigenous manufacturing abilities gain salience.
Where the government has got it wrong is in confusing the public sector with indigenous manufacturing ability. There is no reason why private sector firms that are interested in such projects should not be involved. In fact, if HAL is made to compete with other domestic firms, perhaps its operational efficiency will improve. The end goal is, and should be, the quick delivery of this much-delayed equipment essential to India’s security.
http://www.livemint.com/Opinion/fqkvJNRD83qsDgEfulY3cP/An-aircraft-deal-turning-sour.html
France will have to accept India's conditions in the almost $20 billion MMRCA (medium multi-role combat aircraft) project if it wants to eventually bag the contract to supply 126 Rafale fighters to the IAF.
Defence ministry officials on Monday made it clear that French firm Dassault Aviation could not back out of the conditions specified in the original tender or RFP (request for proposal) since they were "binding" on it.
Negotiations between MoD and Dassault have been proceeding at a slow pace for over a year now in the already long-delayed MMRCA project, under which the first 18 jets are to come in "flyaway condition'', with the rest 108 fighters being manufactured under licence by Hindustan Aeronautics over six years.
The major bone of contention has been Dassault's demand that it will be responsible only for the first 18 jets, while HAL will have to shoulder responsibility for the other 108 fighters after the kits for them are supplied to the defence PSU. MoD, however, has rejected this contention, holding that Dassault will be responsible for the execution of the entire project.
With this imbroglio holding up matters for the last few months, the two sides on Monday finally decided to keep aside their differences on this issue for now while moving ahead on other matters like pricing and support services. "It's a very complex project...negotiations for it will take time," said an official.
It was in January last year that Rafale had been selected over Eurofighter Typhoon - the two had earlier outclassed the American F/A-18 `Super Hornet' and F-16 `Super Viper', the Russian MiG-35 and Swedish Gripen in extensive field trials - for the final commercial negotiations since it had emerged as the L-1 (lowest bidder) both in terms of life cycle costs and direct acquisition costs.
http://timesofindia.indiatimes.com/...itions-in-MMRCA-deal/articleshow/19451623.cms
An aircraft deal turning sour
Complex defence contracts often lead to wrangling between buyers and sellers. Of all the big buyers of big-ticket weapon systems, India has the most cumbersome purchase process. Very often, even after a particular item has been selected, contractual bottlenecks lead to further delays. The latest example is the ambitious 126 medium multi-role combat aircraft (MMRCA) contract, under which the French fighter plane Rafale was selected last year. Now this deal has run into an air pocket.
Under the purchase plan, Dassault, Rafale’s manufacturer, was to provide 18 planes in a “fly-away” condition. The remaining 108 planes were to be manufactured in India by Hindustan Aeronautics Ltd (HAL). Dassault was to provide the complete kits for the planes. Trouble arose when Dassault said it could not be held responsible for delays and other problems, if they arose, with the planes built in India. The government of India would have none of it. It wants the French firm to assume responsibility for all the planes.
Part of the problem in this case is that HAL has a record that does not inspire confidence among the ultimate users of the equipment. There is a long history to this subject. At the policymaking level, however, priorities change and issues like self-reliance in defence manufacturing come into play. The government, of course, has larger issues to consider. For example, in case of a war, will the French, or for that matter other countries, supply India with spares? It is at that level that indigenous manufacturing abilities gain salience.
Where the government has got it wrong is in confusing the public sector with indigenous manufacturing ability. There is no reason why private sector firms that are interested in such projects should not be involved. In fact, if HAL is made to compete with other domestic firms, perhaps its operational efficiency will improve. The end goal is, and should be, the quick delivery of this much-delayed equipment essential to India’s security.
http://www.livemint.com/Opinion/fqkvJNRD83qsDgEfulY3cP/An-aircraft-deal-turning-sour.html
), the past indeginious procurement have had massive delays forexample the LCA TEJAS multirole aircrafs/l'avion and the Arjun(gen 3++) mbt is still not in full production as we expected given the delay. I mean you cannot simply put the onus on Dassault Aviation , when the inde military's indeginious production is abysmal given the timings not being met and this is not to say that I do not have confidence in the military industry but simply pointing out that the outrage being made by indienne is stupid and a tad bit hypocritical.
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