Jan 10, 2014

India May Close Interim MMRCA and MRTT Deal Soon

Speculation is growing that contracts for the long-delayed medium multi-role combat aircraft (MMRCA), as well as the multi-role tanker transport (MRTT), could soon be signed. However, the MMRCA pact might cover only the supply of 18 Dassault Rafale aircraft from the French production line, leaving further negotiations for the remaining 108 required to be concluded by the new government. India announced its choice of the Rafale in January 2012. But negotiations subsequently stalled over offsets, the transfer of technology and the role of Hindustan Aeronautics (HAL).

Delays in procurement are taking a toll on military force levels as Indian Air Force (IAF) squadrons deplete. This has resulted in pressure on the Ministry of Defense to increase the pace for awarding pending contracts. A government code of conduct prevents any contracts being awarded within 45 days of an election. The national election is expected to be called by March, also the end of the financial year.

Following lengthy discussions, HAL is thought to have now agreed with Dassault on the question of Tier 1 suppliers, including aerostructures.

An IAF official said that a new refueling tanker is a priority. A meeting between the Indian MoD and Airbus on the A330 MRTT that was delayed last year has been scheduled for mid-January.

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