Def Min clears Rs 12,000 cr proposal for 56 aircraft
In a meeting of the Defence Acquisition Council (DAC) headed by Defence Minister A K Antony, the IAF proposal to issue a global tender for procuring these aircraft was cleared, Defence Ministry sources said here.
The first 16 aircraft will be procured off-the-shelf from foreign vendors who will have to partner with a local private or public sector firm, they said.
The next 16 aircraft will have to have 30 per cent indigenous component while the remaining 24 planes will have 60 per cent locally-procured and produced items.
Asked why the state-run Hindustan Aeronautics Limited (HAL) was not be involved in the project, they said the PSU was already burdened with projects such as the SU-30MKI production and upgrades of IAF aircraft fleet including the Mirage, MiG 29 and Jaguar aircraft.
HAL has a vast helicopter division and will also be involved in the forthcoming M-MRCA project for producing 126 combat aircraft, the sources said.
They said the 56-aircraft project would help in developing a domestic aerospace industry and capability to undertake such projects.
Who else if not HAL ? 3 conglomerates with some serious financial backing come into my mind.
1. Mahindra Aerospace, part of the Mahindra group, rumoured to be considering buying Beechcraft.
2. Tata-Lockheed Martin Aero Structures, JV between Tata group and LM to manufacture C-130J components.
3. L&T Cassidian, primarily meant to supply defence electronics, may capitalize on the opportunity for a large project like this.
-Currently neither of the companies have an aircraft assembly line in India.
-All three are capable of raising large amounts of funds and enjoy a very high investor confidence.
-Tata Group and L&T have already made significant inroads in the defence sector as sub-vendors for DRDO and DPSU's and have continuously for the past decade expressed a desire to play an aggressive role in the defence equipment market should there be a policy change.