Commercial Bids for MMRCA Likely to be Opened In Mid-Oct

September 23, 2011 defense-aerospace.com

(Source: Financial Express; published Sept. 23, 2011)

With the commercial bids of two contenders shortlisted for the $10.4-billion order for 126 Medium Multi-Role Combat Aircraft (MMRCA) expected to be opened in mid-October, the government on Thursday said the economic growth in the country and rest of Asia would drive the Indian aerospace industry’s growth.

According to minister of state for defence MM Pallam Raju, “there exists a lot of potential for the Indian industry, not only in the defence sector but also in the civil aerospace sector. Maintenance, repair and overhaul (MRO) activities will further propel the growth of aerospace industry’’.

The minister was speaking at the inaugural session of 6th International Conference on ‘Energising Indian Aerospace Industry: Emerging Opportunities, Enduring Partnerships’, organised by the Centre for Air Power Studies (CAPS).

Other key drivers and enablers are huge domestic demand, defence offsets, information technology prowess of Indian industry and track record of honouring intellectual property rights, he added.

Chief of Air Staff Air Chief Marshal NAK Browne observed that the Indian Air Force (IAF) expects life long commitment from the Indian industry for its short-term and long-term requirements. “We cannot keep relying on the foreign original equipment manufacturers forever. Therefore, Indian industry has the support of the IAF, as it is ready to lead the race.”

By giving a special emphasis to the importance of Indian private sector industry’s participation in major upcoming projects, he said that IAF expects a larger participation in the Multi-Role Transport Aircraft (MTA) project.

Responding to a query on the acquisition schedule of the MMRCA, the air chief said, “We have a meeting of the Defence Acquisition Council on October 7 where some of the issues are going to be discussed. Once those issued are cleared, hopefully, by the middle of the month, we should be in a position to open the bids.’’ Browne was talking to mediapersons on the sidelines of the conference. On the offset value of the deal, he said, ‘‘Offsets for this programme amount to R20,000 crore plus and these are going to be in service for over a period of 13 years.’’

To a query on comparison between the Fifth Generation Fighter Aircraft (FGFA) and MMRCA, he said, “These are two different kinds of aeroplanes. While the MMRCA does not have stealth features and super-cruise capability, the FGFA has all that.’’

FGFA has recess armament base where all the missiles and weapons are located inside the aircraft, which gives it a certain amount of stealth potential, he said. India is developing the FGFA in a joint venture with Russia.