[""The fine print of what has been agreed (in the Modi-Hollande
summit) is not with me yet," he said."
A defence deal is concluded with a foreign country, and the Defence
Minister confesses to the media, and no less, that he is not in the
loop!
That's truly extraordinary, of course, only if we overlook the basic
fact that Modi is at the helm of affairs.

Apart from that the decision to purchase outright 36 Medium Multi-Role
Combat Aircrafts (MMRCA) without bothering about the provision for
technology transfer to the state-owned HAL simply makes a mockery of
the "Make in India' slogan.
This is apart from the cost aspect.

And, on top of that, we're told: "Holding that "nitty-gritties" are
not worked out at the PM-level, he [i.e. the Defence Minister] said
***India and France would now hold discussions on the future course of
action*** [emphasis added]"
So all these talks about the "bold decision" and "outright purchase"
are just a lot of hot air?]

http://epaperbeta.timesofindia.com/Article.aspx?eid=31804&articlexml=Govt-to-bypass-MMRCA-project-14042015010001

Apr 14 2015 : The Times of India (Mumbai)
Govt to bypass MMRCA project
rajat pandit
New Delhi:


Further Rafale Deals Will Also Be Govt-To-Govt: Parrikar

The Modi gov ernment has sounded the death knell for the deadlocked
$20 billion MMRCA (medium multi-role combat aircraft) project to
acquire 126 fighters, which was dubbed the "mother of all defence
deals" around the globe after competition for it was launched by the
previous UPA regime in 2007.

Defence minister Manohar Parrikar on Monday also made it clear that if
India goes in for additional French Rafale fighters, after the
outright purchase of 36 jets decided during the ModiHollande summit in
Paris last Friday , it will also be through government-to-gov ernment
deals.

The stalled final negotiations with French aviation major Dassault for
the MMRCA project, in which Rafale emerged the winner in January 2012
after a hotlycontested open global competition, had envisaged the
induction of 126 fighters - the first 18 through direct acquisition
from France, with the rest to be made by Hindustan Aeronautics in
India after transfer of technology .

Even though Parrikar did not utter the words "scrap" or "cancel" in
connection with the MMRCA project, he used enough analogies to stress
exactly that. "A car cannot travel on two roads at the same time. The
other road (MMRCA) had a lot of problems," Parrikar said.

But the minister did not specify how many additional Rafales would be
acquired after the first 36 Rafales are inducted directly from France,
which itself is likely to take well over two years. But the number now
will certainly not be as much as 126 fighters, with Parrikar holding
it would "financially be a very steep slope to climb".

But he added that "all options are being kept open", including the
`Make in India' component for additional Rafales if required.

Holding that "nitty-gritties" are not worked out at the PM-level, he
said India and France would now hold discussions on the future course
of action. ***"The fine print of what has been agreed (in the
Modi-Hollande summit) is not with me yet," he said.*** [Emphasis
added.]

Concurrently , the Modi government is also trying to improve the
serviceability of the 272 Sukhoi-30MKIs contracted from Russia for
over $12 billion. It is just 55% for the 200 Sukhois inducted till
now. The DRDO-HAL combine is also being pushed for faster induction of
120 indigenous Tejas light combat aircraft. "The gap can be filled,"
said Parrikar.

"Prime Minister Modi has taken a bold decision (to bypass the stalled
MMRCA project). Instead of going through the RFP (request for proposal
or global tender) route, where there was lot of confusion and chaos,
it has been decided to go for the G2G route. My personal opinion is
that in certain areas of defence, especially of strategic
(non-nuclear) equipment, the G2G route is much better," he added.

The final negotiations for the MMRCA project with French aviation
major Dassault had stalled for over an year now due to the company's
continuing refusal to take "full responsibility" for the 108 jets to
be made by HAL as well as a stiff hike in their production costs here,
as reported earlier by TOI.

"It had gone into a loop or a vortex. A decision had to be taken to
break the vortex since IAF's operational requirement (the force is
down to just 34 fighter squadrons) was becoming steeper day-by day .
The qualitative selection (of Rafale in the MMRCA contest) was already
done," said Parrikar.

The minister, in fact, pointed to the Defence Trade and Technology
Initiative between India and the United States to stress that the G2G
route was much better in acquiring high-end military hardware.

India, incidentally , has inked deals worth over $6 billion with the
US for 12 C-130J Super Hercules and 10 C-17 Globemaster-III aircraft
without any open tender or competition.

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