Battlelines are set to be drawn among top global players and their Indian partners for a $20-$25-billion Indian Air Force order to make multi-role fighter jets in the country.
US, Swedish, French and Russian manufacturers and their Indian partners, which include Anil Ambani, the Tatas and the Mahindras, are likely to be locked in a tough fight to bag the mega deal for around 250 fighter jets.
The requirement is for single-engine multi-role fighter jets, which has narrowed the choice to two options — Lockheed Martin’s F16 Block 70 and Saab AB’s Gripen E.
However, France’s Rafale fighter jets and Russia’s MiG 35, both of which have twin engines, are trying to remain in the fray.
The makers of the Rafale and MiG jets have been arguing that twin engines are safer than the single-engine jets and India should club a separate order for 53 naval jets with the IAF order for the Make-in-India initiative to be more viable.
Lockheed has a joint venture with Tata Advanced Systems Ltd to make spares for its transport aircraft.
Sources said the venture could be upgraded for the fighter jet contract, which seeks local production with an Indian partner.
Sweden’s Saab has a deal with the Mahindras for designs, which sources said could be extended if the Gripen jet is chosen.
MiG and Sukhoi have worked with state-run HAL for long to make their fighter series in India.
Recently, French manufacturer Dassault signed a deal with Anil Ambani’s Reliance Aerostructure to make the parts of Rafale fighter jets in the country.
Besides lobbying and negotiations on discounts, a deciding factor for the mega deal will be the effort put in by the competing nations and their equations with India at present.
Sources said the Indian and US governments were already in talks over Lockheed’s offer to sell the F16 version. Lobbying by the French and the Swedish has also gone up several notches.
Russia has for sometime been piqued by India for choosing western armament companies over its own products.
It has reportedly shown its displeasure by holding joint military exercises with Pakistan and expects New Delhi to make up by giving it lucrative arms orders.
Trump hurdle ::
One problem for Lockheed is American President Donald Trump’s own Make in USA policy, which could run against its desire to set up a factory in India.
Officials, however, feel this may not be a hurdle as the Indian order is over and above what Lockheed is manufacturing at its US factories.
The foreign entity winning the order will have to eventually hand over the technology to the joint venture, which will make the jets in India.
The transfer of technology and the manufacturing experience are expected to enhance India Inc’s technological muscle and ability to fulfil hi-tech arms contracts as well as export defence products.
India wants to award defence contracts worth as much as $250 billion to Indian or joint venture manufacturers, making armaments ranging from fighter jets, submarines, artillery guns and missiles to drones, sniper rifles and night visions.
Over the years, India brought in a “Buy and Make (Indian)” policy in its defence purchases to increase the participation of local industry. This was necessary as India was turning into the world’s top arms importer, which brought with it problems such as a strain on the country’s forex resources and the availability of spares in times of war.
The policy, which was initiated by the previous UPA government and later tweaked by the current BJP-led government, allows Indian firms to tie up with foreign multinationals, acquire technology and build arms in the country.
Source:-Telegraph
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