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India is likely to increase its purchase of combat aircraft and may further augment its most prestigious tender of the 126 medium multi-role combat aircraft (MMRCA) for a staggering $11 billion. The winner of this lucrative tender is expected to receive additional orders since Indian negotiations with the French aircraft manufacturer Dassault Aviation for the upgradation of Mirage-2000 fighters are tottering.
As per the Indian Air Force (IAF) officials, Dassault has declined to reduce its quote of $2.1 billion for extending the service life of the IAF’s 51 Mirage-2000 aircraft by fitting new radars and avionics. The Indian Defence Ministry as well as IAF feels that the price is exorbitant. The cost per aircraft works out to be over $40 million and the upgradation will not involve the changing of airframes and engines.
The Indian Defence Ministry and the IAF feel that although Dasault has been high on the books of India, the recent years have seen the relations deteriorate over the lack of maintenance and supplies for the Mirage fleet and a reasonable quote for its upgradation. Dassault is currently trying to resolve the situation.
On the other hand, under the MMRCA deal, each aircraft will cost India about $87 million which is inclusive of the cost of technology transfers as well as capital costs for setting up a manufacturing unit in India. Hence, additional MMRCA’s will cost significantly less than the original price.
The Indian Defence Ministry is of the opinion that the Mirage-2000 fleet can serve the IAF as of now. Once six squadrons (126 aircraft) of MMRCAs have entered IAF service, an additional two squadrons of MMRCAs would be built to replace the 51 Mirage-2000 fighters indicating in a 40 per cent hike in MMRCA’s numbers.
Dassault Aviation realizes that the current refusal from India will apparently affect Dassault’s role in the race for MMRCA for which it is fielding its Rafale fighter aircraft.The other contenders for the MMRCA will stand to gain further orders from India if India does not opt for the upgradation of the Mirage-2000 fleet from Dasault.