Union government makes policy switch to make full fighter jets in India
- In Reports
- 11:56 AM, Jun 28, 2024
- Myind Staff
Unsatisfied with incremental Make in India efforts in defence procurement, the Union government has shifted policy to stipulate that it will purchase up to 114 Multi-Role Fighter Aircraft (MRFA) exclusively from a vendor willing to establish a manufacturing facility in India for the entire aircraft.
It also wants the transfer of technology and full production in India in a joint venture with a local partner.
A new global tender incorporating these conditions is expected to be issued soon. This significant policy shift is likely to further delay the acquisition of MRFA. Currently, India has 31 squadrons of fighter jets, which falls short of the sanctioned strength of 42 squadrons.
A large number of fighter aircraft parts purchased earlier are already being manufactured in India as part of offset obligations. However, this marks the first instance where the government will mandate the complete manufacturing of aircraft in India, coupled with technology transfer requirements.
Valued at approximately $20 billion, the MRCA (Multi-Role Fighter Aircraft) contract is regarded as one of the largest defence deals globally in recent times. Aircraft competing for the contract include Dassault’s Rafale, Boeing’s Super Hornet F/A-18, SAAB’s Gripen, Lockheed Martin’s F-21, the Russian MiG-35, and the Eurofighter Typhoon.
Sources said that the French company Dassault, manufacturer of the Rafale, previously considered the frontrunner for the contract, is reluctant to transfer technology for production in India. Despite India already purchasing 36 Rafale jets for the Indian Air Force, the government is poised to proceed with acquiring an additional 26 Rafale Marine jets to replace the aging MiG-29s currently deployed on INS Vikrant and INS Vikramaditya.
The Union government has been encouraged by its achievement in persuading US company GE Aerospace Defence and Systems to manufacture fighter jet engines in India in collaboration with the state-owned Hindustan Aeronautics Ltd.
Under the agreement signed during Prime Minister Narendra Modi’s recent visit to the US, GE will transfer 80% of the technology related to its F414 jet engines. These engines will power the Mk2 version of India’s domestically-developed Light Combat Aircraft.
The government has raised the sectoral cap on foreign direct investment (FDI) in defence to 74%, aiming to position the country as a hub for defence manufacturing.
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