30 septembre 2012 7 30 /09 /septembre /2012 12:00

http://www.bharat-rakshak.com/IAF/Images/3400-2/AVROS.jpg

source bharat-rakshak.com

 

September 28, 2012 Saurabh Joshi - stratpost.com

 

The program was for the procurement of 56 aircraft of which 16 would be delivered off the shelf by a foreign manufacturer and 40 were to have been manufactured in India. Indian industry has found the order to be too small to justify the capital expenditure.

 

The Indian Air Force (IAF) program to replace its Hawker Siddeley 748M Avro transport aircraft with one manufactured by domestic private industry is proving to be a non-starter.

 

After more than a year of discussion, it now appears that Indian industry has decided not to step up with bids to build the replacement aircraft, in partnership with foreign manufacturers, because of the financial infeasibility of the project.

 

The program envisages the procurement of 56 aircraft of which 16 would be delivered off the shelf by a foreign manufacturer and 40 were to have been manufactured in India. The procurement was stipulated to have been under the ‘Buy and Make Indian’ channel under the Defense Procurement Procedure (DPP), for which only Indian companies could be the lead bidders, in collaboration with foreign manufacturers. The idea was also to encourage domestic private industry to get involved in the program, to the exclusion of Hindustan Aeronautics Limited (HAL).

 

In fact, at one point there was also a plan to form an Indian industry consortium for the purpose, with the Tata Group nominated to lead as the Production Agency.

 

But after scrutiny, Indian industry has found the order to be too small to justify the capital expenditure they would incur in setting up a line in India. Over the past couple of months, StratPost has heard the desired minimum order to number from a low of at least 120 aircraft to around 200, between two and a half to almost four times the present requirement.

 

At present, the capital expenditure required of Indian industry for the order expected to be worth USD 2 billion is between USD 200 million to USD 250 million. They figure that at the completion of the order, their EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) would come to only about USD 150 million. Back of the envelope calculations, keeping in mind margins of 20 to 30 percent, indicate an ultimate revenue of around USD 80 million.

 

This, they feel, is too small a figure to justify the expenditure and a bid, especially in the absence of any clarity on how the domestic manufacturing line would be employed after the completion of the delivery of the order for the 56 aircraft.

 

Now, with Indian industry failing to see the business case for the program, it is likely that the IAF and the Ministry of Defense would make the program ‘Buy and Make Global’ and throw open the tender to foreign manufacturers to bid, something that is expected to take place over the next month or so.

 

Some of the aircraft that were under consideration for the replacement of the Hawker Siddeley 748M Avro fleet include the EADS CASA C-295, the Alenia Aeronautica C-27J Spartan and the Saab 2000.

Partager cet article

Published by RP Defense - dans Asia & Pacific
commenter cet article

commentaires

Présentation

  • : RP Defense
  • RP Defense
  • : Web review defence industry - Revue du web industrie de défense - company information - news in France, Europe and elsewhere ...
  • Contact

Recherche

Articles Récents

  • Operation Market Garden commemorated 70 years on
    21 sept. 2014 British Army This weekend sees the 70th anniversary commemorations of Operation Market Garden, one of the most notable military operations of World War Two, being held at Arnhem in the Netherlands. Airborne forces of the British, Dutch,...
  • Saab Wins LEDS-50 MK2 Launch Order
    Sep 17, 2014 ASDNews Source : Saab AB Saab has been awarded a contract for their latest advanced Softkill solution, the LEDS-50 MK2. The contract amounts to the value of MSEK 48 (R74 million). The contract is from an undisclosed customer. The LEDS-50...
  • MKU Introduces 6th Generation Armour Technology
    Sep 16, 2014 ASDNews Source : MKU MKU has introduced its 6 th Generation armour technology - Polyshield V6 . The new technology reduces the weight of the armour of a helicopter by up to 40% and is almost 30% thinner than standard solutions. The reduced...
  • Lockheed Martin and AEC to Establish Sniper Pod Support Facility in Saudi Arabia
    Sep 16, 2014 ASDNews Source : Lockheed Martin Corporation Lockheed Martin [NYSE: LMT] and Advanced Electronics Company (AEC) will establish a Sniper ® Advanced Targeting Pod (ATP) Expanded Repair Capability facility in the Kingdom of Saudi Arabia – the...
  • The Future USNS Fall River Delivered
    Sep 16, 2014 ASDNews Source : US Navy The Navy accepted delivery of Joint High Speed Vessel, the future USNS Fall River from the Austal USA shipbuilder, Sept. 15. The delivery marks a major milestone, the official transfer of the vessel from the shipbuilder...
  • V-22 Flight Tests Validate 'Hot and High' Capability for Rolls-Royce AE 1107C Engines
    Sep 18, 2014 ASDNews Source : Rolls Royce Flight tests have validated a new engine upgrade for Rolls-Royce AE 1107C engines powering V-22 aircraft, maximizing "hot and high" capability up to 6,000 feet of altitude and 95°F. The enhanced capability is...
  • Drone Aviation Completes Delivery of Advanced Day/Night Optics Package to State Agency Customer
    Blimp in a Box®-100 aerostat system Sep 17, 2014 ASDNews Source : Drone Aviation Corp. Drone Aviation Holding Corp., a developer of specialized lighter-than-air aerostats and tethered drones, today announced that its wholly owned subsidiary Drone Aviation...
  • Textron Systems G-CLAW Precision Guided Weapon Achieves Successful Live-Fire Demo
    Sep 16, 2014 ASDNews Source : Textron Textron Systems Weapon & Sensor Systems, a Textron Inc. (NYSE: TXT) business, announced today its G-CLAWTM precision guided weapon successfully completed a live-fire demonstration recently at the U.S. Army’s Yuma...
  • Exelis Receives $8 M Army Order for Night Vision Equipment
    Sep 12, 2014 ASDNews Source : Exelis Exelis (NYSE: XLS) has been awarded a contract valued at $8 million to provide the U.S. Army with Generation 3 night vision equipment . The award is under the U.S. Army-managed OMNI VIII indefinite-delivery, indefinite-quantity...
  • NATO launches Industry Cyber Partnership
    From left to right: The official launch of NATO’s Industry Cyber partnership; Ambassador Sorin Dimitru Ducaru, NATO Assistant Secretary General for Emerging Security Challenges; Kusti Salm, Estonian Ministry of Defence; Mr Chris Gibson, Director Computer...

Catégories

Partager cette page Facebook Twitter Google+ Pinterest
Suivre ce blog