IAF Splits $20 Bn Fighter Jet Procurement Into Two Programmes

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The Indian Air Force (IAF) Multi-Role Fighter Aircraft (MRFA) programme is being split into two parts under different procurement models to address the stated requirement of 114 jets, according to high-level military sources.

Under the revised procurement concept, the first part or phase of MRFA will involve the procurement of 54 foreign jets under the Buy Global (Manufacture in India) category of the Defence Acquisition Procedure (DAP), with the contract being awarded to a foreign OEM.

Of these, 18 will be procured in a flyaway condition from the OEM while 36 will be manufactured in India by a local partner selected by the OEM. This partner will be from the private sector.

The IAF is pushing for an early Acceptance of Necessity (AON) for Phase-I from the Defence Acquisition Council, and aims at issuing an RFP by the end of 2022.

Part-II of MRFA is not yet a programme but a concept, sources disclosed. It involves procurement of 60 jets from the Indian production partner selected by the OEM for Part-I. The Part-II procurement model will be Buy Indian, with the Indian production agency being the prime for the issuance of contract.

The IAF has bounced the revised plan off global OEMs interested in the acquisition. Boeing and Lockheed Martin of the US, Dassault of France, the Eurofighter consortium of Europe, Saab of Sweden and Sukhoi and MiG of Russia are in the IAF’s selection pool which involves eight fighter aircraft types.

The other significant shift in the MRFA programme is the rejection of the Strategic Partnership (SP) Model by the IAF.

By splitting the requirement, and with ambiguity after Phase-I, India could end up paying many times over for aircraft, reasoned another.