MMRCA Indian tender: three years of fruitless negotiations
January 31 marks exactly three years from the date of the announcement of the results of the MMRCA tender. A few years ago, the Indian armed forces expressed their intention to acquire new fighters and had long since chosen the desired aircraft. Nevertheless, negotiations on the future contract have been going on for three years, but so far have not led to its signing. Throughout all past time, the customer and supplier of aircraft technicians can not agree on the specific terms of the contract. At the end of last year, the epic with the supply of fighters received its continuation.
The MMRCA (Medium Multirole Combat Aircraft) tender was launched in 2007. His goal was to purchase 126 medium multipurpose fighters for the Indian Air Force. Applications for the competition were filed by six aircraft manufacturers. In particular, the Russian industry offered the Indian military MiG-35 aircraft. In 2011, the "finalists" of the competition were identified - the French Dassault Rafale aircraft and the European Eurofighter Typhoon. The final result of the tender was announced three years ago. The Indian Air Force chose the French fighter. Shortly thereafter, negotiations began on a future contract, which for various reasons continues to this day.
At the very end of last year, Indian Defense Minister Manohar Parrikar made an important statement regarding the current situation in the negotiation process. According to the minister, there are certain difficulties that make it difficult to conclude a contract and start supplying aircraft. First of all, they are connected with the position of the French side, which does not wish to undertake certain obligations offered by the Indian military. In addition, M. Parrikar expressed a very interesting thesis about the prospects for the purchase of aircraft for the Indian Air Force. If it is decided to abandon the purchase of Rafale fighter jets, then, according to the Minister, the Indian Air Force will be able to purchase an additional batch of Su-30MKI planes.
An important feature of the December statements of M. Parrikar is the fact that for the first time since the beginning of the tender MMRCA, a high-ranking Indian official acknowledges the existence of problems in the negotiation process on a future contract. Nevertheless, the very fact of the appearance of such statements cannot yet be regarded as a kind of signal, after which the situation should change radically. In addition, we should not forget the statements of the Indian Minister made during the negotiations with his French counterpart in early December last year. Then M. Parrikar argued that negotiations on the future contract will be completed soon.
A few days after the press conference of M. Parricar, new reports appeared in foreign media about possible options for further developments around the long-suffering contract. Thus, according to the Indian edition of The New Economic Times, the Indian Ministry of Defense is already considering the possibility of refusing to continue negotiations with France. By refusing Dassault to buy its equipment, the Indian military will buy Russian Su-30MKI planes. It should be noted that the corresponding publication was published without any references to official sources in the Indian military.
A little later, the Indian Air Force was forced to comment on media reports. The press service of the Air Force did not confirm the published information about the possible rejection of the purchase of "Rafale" in favor of Su-30MKI.
The main problem hindering the signing of the contract is disagreement about the approach to the production of ordered aircraft. Indian Air Force want to buy 126 fighters. In this case, 18 machines are supposed to be purchased in finished form, and the remaining 108 should be built by the Indian company HAL. Thus, the contract involves the transfer of all necessary technologies and documentation, so that an Indian company will be able to engage in the licensed construction of fighters.
Earlier it was reported that the proposal of the Indian Air Force is not fully satisfied with the company Dassault. French aircraft manufacturers, taking into account the requirements of customers, offered to sign two contracts. In accordance with the first in France, the first batch of 18 aircraft will be built, and the second will stipulate the conditions and procedure for the construction of the remaining fighters at the Indian plant. The fact is that Dassault does not want to take full responsibility for the production of aircraft in India. These disagreements were one of the reasons that the parties have not been able to sign the contract in three years.
At the beginning of last year, financial problems were added to disagreements regarding the organization of production. Initially, in 2007, it was estimated that approximately 126 billion US dollars would be spent on the purchase of 12 aircraft. By the beginning of 2012, the estimated contract value had risen to 18 billion. In January, 2014, the company Dassault announced a change in prices for its products. Previously, the cost of one aircraft was approximately 65 million dollars, and the new price reached 120 million. Thus, the approximate value of the contract should exceed 30 billion dollars.
To date, the Indo-French negotiations are deadlocked and are unlikely to be able to get out of it while maintaining the existing positions. India wants to buy modern aircraft and establish their own production, and France refuses responsibility for cars built in India, at the same time raising the price of them. As a result, the positions of the parties simply do not allow finding a common language and in the near future to complete an order of protracted negotiations.
While officials and merchants are trying to find a way out of the current situation, specialists and the public again discuss a possible contract for the supply of Rafale fighter jets. In the Indian press, there were again calls to abandon the contract with the French company and continue cooperation with Russia. In light of recent events, the Su-30MKI fighter, mentioned by M. Parrikar, can be considered a good alternative to the French car.
The aircraft of Russian production in a number of parameters has an advantage over the French fighter. There is a certain superiority in flight data and combat qualities. In addition, the Su-30MKI is half the price of the French Dassault Rafale. The construction of one such aircraft in Indian enterprises costs about 56 million dollars. After last year’s increase in the value of the French aircraft, the price advantage of the Russian becomes undeniable. However, Su-30MKI has one feature that can prevent its ordering. The MMRCA tender had as its goal the selection and purchase of medium-sized fighters, and Su-30MKI belongs to the heavy class. From this can follow certain technical and tactical limitations that will not allow to change plans for the purchase and operation of equipment.
In the context of the latter News negotiations between India and France are sometimes recalled by recent events in Europe, which may well be an additional reason for prolonging consultations. Currently, official Paris refuses to transfer to Russia the Mistral-type landing ship ordered by it (the first of two under construction). The reason for this is the current Ukrainian crisis and the position of Moscow. The French leadership claims that there are currently “no conditions” for the transfer of the ship.
According to popular belief, Paris is pulling a ship because the American leadership is putting pressure on it. Unwilling to spoil relations with one of the main partners, the leaders of France are forced to quarrel with Russia. One of the consequences of the current situation with landing ships may be the loss of reputation. Now France is among the five largest suppliers of weapons and military equipment. However, the refusal to transfer ships for political reasons may hit her image as a reliable partner. Seeing such a precedent, potential customers may refuse to purchase French products and turn to other suppliers.
It cannot be excluded that the Indian Ministry of Defense is not only well aware of the situation around the Mistrals, but also drew the appropriate conclusions from it. It is possible that now the Indian military will be wary of their partners, given the possible risks of a political nature.
Last year, the company "Dassault" raised the prices of their aircraft, but the requirements of the Indian Air Force regarding the number of purchased equipment remained the same. In this regard, the Indian Ministry of Defense has every reason to take measures to reduce the total value of the contract. One of the tools of such work can be various statements by high-ranking officials hinting at a possible termination of negotiations and the purchase of equipment produced outside of France.
Anyway, M. Parrikar was forced to admit that the negotiation process on possible future deliveries of Dassault Rafale fighter jets faces certain difficulties. Moreover, he had to talk about the possibility of purchasing aircraft of other types. All this may indicate that for three years the parties have not been able to agree and form mutually beneficial terms of the contract. This means that the contract for the supply of Dassault Rafale aircraft is unlikely to be signed in the near future. Moreover, the very possibility of such a transaction raises more and more doubts.
On the materials of the sites:
http://business-standard.com/
http://economictimes.indiatimes.com/
http://ria.ru/
http://vz.ru/
http://bmpd.livejournal.com/
The MMRCA (Medium Multirole Combat Aircraft) tender was launched in 2007. His goal was to purchase 126 medium multipurpose fighters for the Indian Air Force. Applications for the competition were filed by six aircraft manufacturers. In particular, the Russian industry offered the Indian military MiG-35 aircraft. In 2011, the "finalists" of the competition were identified - the French Dassault Rafale aircraft and the European Eurofighter Typhoon. The final result of the tender was announced three years ago. The Indian Air Force chose the French fighter. Shortly thereafter, negotiations began on a future contract, which for various reasons continues to this day.
At the very end of last year, Indian Defense Minister Manohar Parrikar made an important statement regarding the current situation in the negotiation process. According to the minister, there are certain difficulties that make it difficult to conclude a contract and start supplying aircraft. First of all, they are connected with the position of the French side, which does not wish to undertake certain obligations offered by the Indian military. In addition, M. Parrikar expressed a very interesting thesis about the prospects for the purchase of aircraft for the Indian Air Force. If it is decided to abandon the purchase of Rafale fighter jets, then, according to the Minister, the Indian Air Force will be able to purchase an additional batch of Su-30MKI planes.
An important feature of the December statements of M. Parrikar is the fact that for the first time since the beginning of the tender MMRCA, a high-ranking Indian official acknowledges the existence of problems in the negotiation process on a future contract. Nevertheless, the very fact of the appearance of such statements cannot yet be regarded as a kind of signal, after which the situation should change radically. In addition, we should not forget the statements of the Indian Minister made during the negotiations with his French counterpart in early December last year. Then M. Parrikar argued that negotiations on the future contract will be completed soon.
A few days after the press conference of M. Parricar, new reports appeared in foreign media about possible options for further developments around the long-suffering contract. Thus, according to the Indian edition of The New Economic Times, the Indian Ministry of Defense is already considering the possibility of refusing to continue negotiations with France. By refusing Dassault to buy its equipment, the Indian military will buy Russian Su-30MKI planes. It should be noted that the corresponding publication was published without any references to official sources in the Indian military.
A little later, the Indian Air Force was forced to comment on media reports. The press service of the Air Force did not confirm the published information about the possible rejection of the purchase of "Rafale" in favor of Su-30MKI.
The main problem hindering the signing of the contract is disagreement about the approach to the production of ordered aircraft. Indian Air Force want to buy 126 fighters. In this case, 18 machines are supposed to be purchased in finished form, and the remaining 108 should be built by the Indian company HAL. Thus, the contract involves the transfer of all necessary technologies and documentation, so that an Indian company will be able to engage in the licensed construction of fighters.
Earlier it was reported that the proposal of the Indian Air Force is not fully satisfied with the company Dassault. French aircraft manufacturers, taking into account the requirements of customers, offered to sign two contracts. In accordance with the first in France, the first batch of 18 aircraft will be built, and the second will stipulate the conditions and procedure for the construction of the remaining fighters at the Indian plant. The fact is that Dassault does not want to take full responsibility for the production of aircraft in India. These disagreements were one of the reasons that the parties have not been able to sign the contract in three years.
At the beginning of last year, financial problems were added to disagreements regarding the organization of production. Initially, in 2007, it was estimated that approximately 126 billion US dollars would be spent on the purchase of 12 aircraft. By the beginning of 2012, the estimated contract value had risen to 18 billion. In January, 2014, the company Dassault announced a change in prices for its products. Previously, the cost of one aircraft was approximately 65 million dollars, and the new price reached 120 million. Thus, the approximate value of the contract should exceed 30 billion dollars.
To date, the Indo-French negotiations are deadlocked and are unlikely to be able to get out of it while maintaining the existing positions. India wants to buy modern aircraft and establish their own production, and France refuses responsibility for cars built in India, at the same time raising the price of them. As a result, the positions of the parties simply do not allow finding a common language and in the near future to complete an order of protracted negotiations.
While officials and merchants are trying to find a way out of the current situation, specialists and the public again discuss a possible contract for the supply of Rafale fighter jets. In the Indian press, there were again calls to abandon the contract with the French company and continue cooperation with Russia. In light of recent events, the Su-30MKI fighter, mentioned by M. Parrikar, can be considered a good alternative to the French car.
The aircraft of Russian production in a number of parameters has an advantage over the French fighter. There is a certain superiority in flight data and combat qualities. In addition, the Su-30MKI is half the price of the French Dassault Rafale. The construction of one such aircraft in Indian enterprises costs about 56 million dollars. After last year’s increase in the value of the French aircraft, the price advantage of the Russian becomes undeniable. However, Su-30MKI has one feature that can prevent its ordering. The MMRCA tender had as its goal the selection and purchase of medium-sized fighters, and Su-30MKI belongs to the heavy class. From this can follow certain technical and tactical limitations that will not allow to change plans for the purchase and operation of equipment.
In the context of the latter News negotiations between India and France are sometimes recalled by recent events in Europe, which may well be an additional reason for prolonging consultations. Currently, official Paris refuses to transfer to Russia the Mistral-type landing ship ordered by it (the first of two under construction). The reason for this is the current Ukrainian crisis and the position of Moscow. The French leadership claims that there are currently “no conditions” for the transfer of the ship.
According to popular belief, Paris is pulling a ship because the American leadership is putting pressure on it. Unwilling to spoil relations with one of the main partners, the leaders of France are forced to quarrel with Russia. One of the consequences of the current situation with landing ships may be the loss of reputation. Now France is among the five largest suppliers of weapons and military equipment. However, the refusal to transfer ships for political reasons may hit her image as a reliable partner. Seeing such a precedent, potential customers may refuse to purchase French products and turn to other suppliers.
It cannot be excluded that the Indian Ministry of Defense is not only well aware of the situation around the Mistrals, but also drew the appropriate conclusions from it. It is possible that now the Indian military will be wary of their partners, given the possible risks of a political nature.
Last year, the company "Dassault" raised the prices of their aircraft, but the requirements of the Indian Air Force regarding the number of purchased equipment remained the same. In this regard, the Indian Ministry of Defense has every reason to take measures to reduce the total value of the contract. One of the tools of such work can be various statements by high-ranking officials hinting at a possible termination of negotiations and the purchase of equipment produced outside of France.
Anyway, M. Parrikar was forced to admit that the negotiation process on possible future deliveries of Dassault Rafale fighter jets faces certain difficulties. Moreover, he had to talk about the possibility of purchasing aircraft of other types. All this may indicate that for three years the parties have not been able to agree and form mutually beneficial terms of the contract. This means that the contract for the supply of Dassault Rafale aircraft is unlikely to be signed in the near future. Moreover, the very possibility of such a transaction raises more and more doubts.
On the materials of the sites:
http://business-standard.com/
http://economictimes.indiatimes.com/
http://ria.ru/
http://vz.ru/
http://bmpd.livejournal.com/
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