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— General Manoj Pande, Indian Army Chief

 
 
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My compliments to SP Guide Publications for informative and credible reportage on contemporary aerospace issues over the past six decades.

— Air Chief Marshal V.R. Chaudhari, Indian Air Force Chief
       

Market Outlook - Bright & Exciting

Issue: 01-2012By Air Marshal (Retd) V.K. Bhatia

If 2011 proved to be an eventful year for the IAF in terms of new acquisitions, year 2012 promises to be even more exciting with the year expected to begin on a high note

In his recent New Year ‘message’, the Chief of the Indian Air Force (IAF), Air Chief Marshal N.A.K. Browne while praising the men and women in blue for their professional calibre, commitment and achievements and wishing them continued success in all their endeavours stated, “Over the past one year, the IAF has taken confident strides on the path of transforming itself into a multi-spectrum force.” The IAF is indeed taking big steps to continue to upgrade its capabilities to be able to fully address India’s emerging and future security concerns. He was obviously referring to recent acquisitions of some big ticket acquisitions such as the airborne warning and control system (AWACS) and the C-130J Super Hercules ‘special operations’ aircraft.

If 2011proved to be an eventful year for the IAF in terms of new acquisitions, 2012 promises to be even more exciting with the year expected to begin on a high note in the very first month of January itself. The winner of the IAF’s decade-long competition for its high-voltage medium multirole combat aircraft (MMRCA) programme, valued at roughly $20 billion ( Rs. 1,00,000 crore), is likely to be announced in the third week of January, with contract being signed before the end of the current financial year on March 31. The final step for the “mother of all defence deals” will bring to a close one of the longest and most dramatic competitions in the history of aerospace contracting.

But the rest of 2012 promises to be no less actionpacked. Aircraft contracts that are scheduled to be awarded during the year include the billion dollar deal for 197 reconnaissance and surveillance helicopters (RSH) for the Indian Army and the IAF with two helicopters left in the race — the Eurocopter AS550 Fennec and the Russian Kamov Ka-226 Sergei. A contract for 22 attack helicopters will be awarded to Boeing for its already selected AH-64D Block III Apache Longbow assault helicopters. In the heavy-lift category, the fight is still on between the Boeing CH-47 Chinook and the Russian Mi-26 T2, but the winner is likely to emerge soon with the contract being awarded later in 2012.

The Indian Government will also soon conclude a $1.2 billion ( Rs. 6,000 crore) follow on deal for six more Lockheed Martin C-130J Super Hercules ‘special operations’ aircraft to augment the already inducted into service six aircraft in No. 77 Squadron based at Hindon near Delhi.

Another crucial contract to be awarded before the end of the current financial year is the $565 million ( Rs. 2,825 crore) deal for 75 basic trainers to Swiss airplane maker Pilatus for the PC-7 Mk2 which had been delayed following a protest by Korean Aerospace Industries (KAI) of South Korea. It is vital for the IAF to conclude the contract as soon as possible, considering the compounded adverse affect the IAF is facing in its overall flying training programmes owing to the absence of an operational basic trainer in its inventory.

There are good indications for some more big ticket follow on and new orders to be inked in the current year, especially in the field of force-multipliers. Leading the pack could be the follow on order for two additional AWACS systems (combination of Russian IL-76 aircraft and the Israeli Phalcon radar and control system). Revived plans to add six flight refueller aircraft (FRA) to the IAF’s existing fleet of six (IL-78 MKI) is progressing rapidly. Competing for the contract valued in excess of a billion dollars, are the EADS’ Airbus A330 multi-role tanker transport (MRTT) and Rosoboronexport IL-78 (Mk 90). The latest reports suggest that both competing aircraft have been flight evaluated last month at the IAF’s Gwalior air base, giving further credence to the possibility of announcing the winner during the current year itself i.e. before the end of 2012.

Capital acquisitions, which would continue to accrue in 2012 from the ongoing projects from foreign sources, include the Russian Mi-17 V-5 where the order book has further swelled to a total of 139 units. A great deal of activity can be witnessed on the home front too with continuing inductions of a variety of systems being produced indigenously. These include the frontline air dominance fighter Su-30 MKI, of which the IAF has till now received close to 190 fighters out of a total order of 272 and additional ALH Dhruv helicopters. The IAF has also placed orders for 48 Tejas LCA jet fighters (eight already in service) which will continue to be inducted from the limited series production under way at HAL, Bangalore. Orders have also been placed on HAL for supplying to the IAF 65 light combat helicopters (LCH), still under development and 72 HJT-36 Sitara aircraft. For its ground-based air defence, the IAF will start getting the Israeli Spyder (18 systems on order) and the indigenous Akash surface-to-air missiles (SAMs) with an order worth eight squadrons till now.