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SOURCE: DAILY MAIL
Last month, Minister for Heavy Industries and Public Enterprises Praful Patel launched an outburst against the Indian Air Force’s deal to replace its 56 ageing Hawker Siddeley (HS) Avro 748 transport aircraft.
The attack seems to have hit its mark, as the Ministry of Defence (MoD) has quietly extended the date for submission of proposals, without giving any reason. The move has caused heartburn among the IAF as well as domestic private industry players.
The IAF had issued a Request For Proposal (RFP) to replace the aircraft on May 8, 2013 and the proposals were to be submitted by October 8, 2013, which was subsequently extended to December 8, 2013. The submission date has now been shifted to March 8, 2014, the information accessed by Mail Today revealed.
No response
The IAF confirmed the extension but did not respond to requests made regarding the cause. A senior MoD official, when contacted, said: “Mr. Patel may have his reason and beliefs for writing to the defence minister, but we cannot ignore his letter on this subject.”
Last month, while responding to Patel, Defence Minister A.K. Antony had ordered an ‘examination’ of the deal without committing to delay or hold it back. IAF officials then strongly rejected Patel’s claims in their meeting with the MoD, and were reportedly relieved that Antony had not delayed or held back the deal.
“It is rather unfortunate. Can anyone doubt that we need to replace these aircraft? Hope that the delay does not last beyond these three months. Whatever the procedures are, they have been followed and the deal cleared only after that. Need was to sensitise Mr. Patel and not retreat into a shell,” a source said.
The primary reason for opposition by Patel on behalf of the public sector undertakings (PSUs) lies in the nature of this deal. When in June 2011, the IAF indicated a need to replace these transport aircraft, a detailed examination was done in the MoD to evaluate the situation at the only Defence PSU capable of manufacturing and assembling aircraft in India, the Hindustan Aeronautics Limited (HAL).
It was then decided to acquire these aircraft from foreign Original Equipment Manufacturers (OEMs) who had to tie up with one or a consortium led by Indian private sector players and announce an Indian Production Agency (IPA).
The deal also involved the off-the-shelf purchase of 16 initial aircraft followed by manufacturing and assembling of the remaining ones in the IPA with a complete Transfer of Technology.
“The point being that while the HAL has its hands full, there is a pressing need to integrate and galvanise our private sector in the aerospace sector if India is to seriously pursue indigenisation,” said an MoD official.
Reacting to this, Air Marshal (Retd) P.S. Ahluwalia said: “The plan was to phase them out by 2015 towards maintaining flight safety and operational standards. So the case for replacing these planes is genuine. There is a lot of misinformation regarding participation of PSUs”.
Last month, Minister for Heavy Industries and Public Enterprises Praful Patel launched an outburst against the Indian Air Force’s deal to replace its 56 ageing Hawker Siddeley (HS) Avro 748 transport aircraft.
The attack seems to have hit its mark, as the Ministry of Defence (MoD) has quietly extended the date for submission of proposals, without giving any reason. The move has caused heartburn among the IAF as well as domestic private industry players.
The IAF had issued a Request For Proposal (RFP) to replace the aircraft on May 8, 2013 and the proposals were to be submitted by October 8, 2013, which was subsequently extended to December 8, 2013. The submission date has now been shifted to March 8, 2014, the information accessed by Mail Today revealed.
No response
The IAF confirmed the extension but did not respond to requests made regarding the cause. A senior MoD official, when contacted, said: “Mr. Patel may have his reason and beliefs for writing to the defence minister, but we cannot ignore his letter on this subject.”
Last month, while responding to Patel, Defence Minister A.K. Antony had ordered an ‘examination’ of the deal without committing to delay or hold it back. IAF officials then strongly rejected Patel’s claims in their meeting with the MoD, and were reportedly relieved that Antony had not delayed or held back the deal.
“It is rather unfortunate. Can anyone doubt that we need to replace these aircraft? Hope that the delay does not last beyond these three months. Whatever the procedures are, they have been followed and the deal cleared only after that. Need was to sensitise Mr. Patel and not retreat into a shell,” a source said.
The primary reason for opposition by Patel on behalf of the public sector undertakings (PSUs) lies in the nature of this deal. When in June 2011, the IAF indicated a need to replace these transport aircraft, a detailed examination was done in the MoD to evaluate the situation at the only Defence PSU capable of manufacturing and assembling aircraft in India, the Hindustan Aeronautics Limited (HAL).
It was then decided to acquire these aircraft from foreign Original Equipment Manufacturers (OEMs) who had to tie up with one or a consortium led by Indian private sector players and announce an Indian Production Agency (IPA).
The deal also involved the off-the-shelf purchase of 16 initial aircraft followed by manufacturing and assembling of the remaining ones in the IPA with a complete Transfer of Technology.
“The point being that while the HAL has its hands full, there is a pressing need to integrate and galvanise our private sector in the aerospace sector if India is to seriously pursue indigenisation,” said an MoD official.
Reacting to this, Air Marshal (Retd) P.S. Ahluwalia said: “The plan was to phase them out by 2015 towards maintaining flight safety and operational standards. So the case for replacing these planes is genuine. There is a lot of misinformation regarding participation of PSUs”.
