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Government may shelve Indian Air Force’s $2 billion Avro replacement project

Discussion in 'Indian Air Force' started by tusharm, Mar 20, 2015.

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  1. tusharm

    tusharm Captain FULL MEMBER

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    Government may shelve Indian Air Force’s $2 billion Avro replacement project | Defenceradar News


    [​IMG]


    The $2-billion pilot involving the private sector for manufacture of a new fleet of transport aircraft for the Indian Air Force is floundering and could be shelved by the Defence Ministry that is reviewing the requirement as well as the bidding process.

    The government plan to involve only the private sector in the replacement programme to create an alternate aviation industry besides state-owned Hindustan Aeronautics Limited had not garnered much response last year when only one bidder emerged for the Avro replacement project – an Airbus-Tata consortium offering the C295 medium transport airlifter.

    The defence ministry has now set up a specialised committee to review the programme and to evaluate why other private players did not come up with bids for what was considered as the largest project given entirely to Indian players. Preliminary indicators do not look positive for the Airbus-Tata alliance with a strong view that the tender has to be rebid with a new set of conditions that would make it easier for other players to come in.

    An upcoming change in the buy Indian category of defence procurement policy that will have specialised rules for `Make in India’ could be used to push the project forward for a re bid. Under the new set of rules the lead for the project could be taken by the Indian company, instead of the foreign vendor.

    However, IAF will have to convince the Defence Ministry on the requirement of 56 transport aircraft to replace its ageing fleet. While the UPA government had cleared the project, the Parrikar-led ministry has questioned the need for a replacement given that parallel projects for medium transport aircraft are already being pursued. While the AN 32 fleet is being upgraded, India has C-130 J airlifters in service and is expected to order them in greater numbers.

    Source : Economic Times
    Government may shelve Indian Air Force’s $2 billion Avro replacement project | Defenceradar News
     
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