Transport Aircraft of IAF - C-130J, C-17 Globemaster, C295: Updates & Discussions

Parthu

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Himanshu

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In rare action, India fines Lockheed for not fulfilling offset duties

Amid differences over fulfilling offset obligations, the defence ministry has encashed a part of the bank guarantee given by US aerospace manufacturer Lockheed Martin for a special operations aircraft deal.

The penalty – a little less than $ 5,00,000 – was imposed for alleged violation of terms and conditions for the Rs 4,000-crore deal that was signed in 2013.

Sources said that the penalty was imposed after the defence ministry was not satisfied with the quantum of offset obligations that Lockheed undertook in India, as per its commitment when the contract was signed. The company was mandated to undertake offset obligations – sourcing of parts and services from Indian companies – to the tune of $32 million annually but failed to meet these during execution.

Lockheed Martin, in response to a questionnaire by ET, said: “Lockheed Martin has been diligently discharging its offset obligations in India since 2009. This has delivered extensive economic benefits through investment, skills training, transfer of technology and exports. Our successful joint ventures in India have been a key part of helping India achieve its goal of developing an aerospace and defense supplier ecosystem and participating in the global supply chain. We are amicably working with the ministry of defence regarding the structure and discharge of our second C-130J offset obligation to complete the obligation within the offset contract’s performance period.”

The deal was for six additional C130J aircraft that had been ordered by the Air Force. The offset obligations for the first batch of six aircraft have already been met by the company and more than half the obligations for the second batch have also been executed.

Offset rules mandate the foreign companies invest at least 30% of the contract value in the Indian defence and aerospace sector. Lockheed, which has executed offsets for years since it sold the first batch of C 130Js, is in talks with Indian officials to resolve the matter, sources said.

Sources said that efforts are on to resolve the matter as there are differences between the company and the defence ministry on how to meet the offset guidelines. The matter could be solved ahead of the 2+2 dialogue between the foreign and defence ministers of the two countries in September. If not resolved, the US manufacturer could face penalties in addition of $ 2 million in the near future as well, sources explained.
 

R!cK

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We didn't even had the money to pay full price for 1 more and needed US politics to reduce the costs and make it affordable.

We should look at French, British or rent Malaysian operations of A400 MRTT instead, to deal with 2 requirements in 1 go (tankers and MTA replacement).

Wouldn't recommend introduction of another aircraft for Heavy transport just as yet. Not to mention the never ending list of problems faced by the current A400M operators. With hardly any global operations and very limited infrastructure development even for the existing C-17s, I think we should focus on more medium and small transports to fullfill our day to day requirements. The planned C295s are a welcome addition but the failure of MTA project leaves us with a glaring shortage in the medium segment, more C-130s or a well planned tie up with Embraer for a new version of KC-390 perhaps? This could give us a product that we can market in the Asian/African market.







 

Sancho

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With hardly any global operations and very limited infrastructure development even for the existing C-17s, I think we should focus on more medium and small transports to fullfill our day to day requirements

That would be a mistake, because not range or payload are the important factors, but size of the cargo hold and speed!
We are facing a potential 2 front war and need to be able to divert troops, vehicles, guns, or even helicopter from one border line to another ASAP. That's only possible with transport aircrafts, that can carry outsized loads and offer high speed as well => IL76, C17, A400 class of aircrafts. The strategic reach is only an optional benefit, but not the main one wrt the Indian threat scenario.
MTA would have come in between these heavy to medium class aircrafts, with the ability to carry at least some vehicles as well having higher speed than prop engined aircrafts. Sadly that's not an option anymore, which only increases the need for larger aircrafts and that's where the A400 class comes as a force multiplier. Follow the operations of RAF, French or Spanish air force A400s and you will see the huge benefit, this aircraft could give IAF.
 

Sancho

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So initial order will now be for 62 aircraft as opposed to 56, again crucially one of the earlier issues was that 40 (16 will come off the shelf) was felt too be too small an order to justify local assembly. ICG and navy have much larger requirements for MMMA-more orders assured

Too little too late, the government is sitting on this for more than 4 years now and all they achieved so far, is increasing the number from 56 to 62?
Just as UPA MoD, they hoped for more competition by foreign OEMs and Indian private industry participating, at least from 2015 onwards, it was clear that that's not happening. The logical choice would have been, to include HAL again, if they find a foreign OEM to team up with => competitive tender, lower costs, better position to negotiate. But then again, look at the Rafale disaster, or the Ka 226 G2G deal.

BSF had selected the C295 years ago, so that requirement could easily be added, just as 1 or 2 test bed platforms for DRDO. IN has a requirement for 9 MPAs, but it needs to be seen, if the C295 will fit the requirements?
Not to mention that the minute the government put a stop on the MTA development, the C295 should had been a logical replacement for at least a part of the AN 32 fleet too. So you could have easily pushed it to 70 to 100 aircrafts and negotiate a good deal around it.
 
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RISING SUN

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Final C-17 Heavy Jet Joins Indian Air Force In Q3 2019
The Indian Air Force will receive its final Boeing C-17 Globemaster III heavylift jet in the third quarter of 2019, sources have confirmed to Livefist, taking the fleet up to 11 aircraft. The last ‘white-tail’ from Boeing’s Long Beach, California facility, is currently being fitted with India-specific systems in San Antonio, Texas, and will join 81 Squadron, ‘Sky Lords’ in August-September 2019.

India won a scrappy three-way joust against Qatar and Australia to grab the final airframe in March, though the win was still a bitter one — procedural red tap had constrained the Indian Air Force from procuring at least three of the last few jets to roll out of Boeing’s now shuttered heavy jet shop. Having to settle for just the one, India will be paying $262 million for the last jet.

Coming as the contract did months before India and the U.S. signed the foundational Communications Compatibility and Security Agreement (COMCASA), the last C-17, like the ten before it, will come without specific pieces of encrypted communication equipment, including the SINGCARS radio system, TACTERM secure voice terminal, and a handful of other pieces of kit. Theoretically, with COMCASA now signed, the Indian government could now choose to retrofit said equipment onto its American platforms should it choose to do so. Livefist can confirm that this remains a possibility on the IAF’s C-130Js and, especially its AH-64E Apache and CH-47F Chinook fleets that begin arriving three months from now. The Indian C-17s plug into the U.S. Air Force’s Globemaster III Integrated Sustainment Program (GISP) for infrastructure on the move.

While the contract for a single jet has underscored everything that is myopic and wrong about Indian defense contracting, the arrival of the last C-17 will likely only amplify the Indian Air Force’s heightened need for such jets. Since they began arriving in June 2013, the Sky Lords squadron has been deployed in all manner of logistical activity. The C-17’s unprecedented hauling capacity in Indian service has posed a challenge in terms of efficient use, though the IAF has managed to plug gaps through an incrementally evolved system that sees the C-17s operate frequently with in-service Ilyushin Il-76 jets, C-130J Super Hercules transports and An-32 tactical transports.

A senior Indian Air Force officer at the service headquarters in Delhi told Livefist, “It’s a pity we couldn’t contract for more of these jets. They’ve been in service for five years, and we’ve slowly learnt their true worth. There were hiccups initially, since there were times when the fleet would be engaged quite uneconomically. But that has completely changed now. The logistical flight matrix is still being evolved, but the C-17 has pride of place in the scheme of things. We could have definitely done with more aircraft — at least another squadron.”

India is meanwhile looking to take steps forward on a deal to buy and locally build Airbus C-295 aircraft to replace a large number of its old HS-748 Avro transports.
https://www.livefistdefence.com/2018/12/final-c-17-heavy-jet-joins-indian-air-force-in-q3-2019.html
 

Gautam

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India concludes price negotiations to acquire 62 C295 transport aircraft | Jane's 360
India's Ministry of Defence (MoD) has concluded price negotiations to acquire a total of 62 Airbus Defence and Space C295 medium transport aircraft (MTA) for the Indian Air Force (IAF) and the Indian Coast Guard (ICG).

IAF sources told Jane's on 28 March that the MoD's Contract Negotiation Committee (CNC) concluded consultations with Tata Advanced Systems Limited (TASL) - which is in a joint venture (JV) with Airbus for the MTA programme - to procure the 62 platforms for around EUR2.8 billion (USD3.15 billion).

They said the aircraft deal - which would include 56 platforms for the IAF to replace the service's ageing fleet of Avro 748M transports, and six for the ICG - is expected to be signed after a new Indian government assumes office following general elections set to begin on 11 April.

The MTA programme envisages the direct import of 16 C295s and the local assembly/licence-building of the remaining 46 aircraft at a facility set up by the JV near Bangalore. In keeping with the 2013 MTA tender, 24 of these will be imported in kit form for local assembly and include a 30% indigenous content. The level of indigenous content is then expected to double to 60% in the remaining 22 platforms.

Delivery of the first locally assembled C295 is expected to begin within 60 months of the contract being signed, industry sources said.

Senior IAF officers said that while the IAF's C295 version will fulfil its requirement for a tactical airlifter, the ICG variant is expected to operate as a multimission maritime aircraft.
 

Ashwin

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India concludes price negotiations to acquire 62 C295 transport aircraft | Jane's 360
India's Ministry of Defence (MoD) has concluded price negotiations to acquire a total of 62 Airbus Defence and Space C295 medium transport aircraft (MTA) for the Indian Air Force (IAF) and the Indian Coast Guard (ICG).

IAF sources told Jane's on 28 March that the MoD's Contract Negotiation Committee (CNC) concluded consultations with Tata Advanced Systems Limited (TASL) - which is in a joint venture (JV) with Airbus for the MTA programme - to procure the 62 platforms for around EUR2.8 billion (USD3.15 billion).

They said the aircraft deal - which would include 56 platforms for the IAF to replace the service's ageing fleet of Avro 748M transports, and six for the ICG - is expected to be signed after a new Indian government assumes office following general elections set to begin on 11 April.

The MTA programme envisages the direct import of 16 C295s and the local assembly/licence-building of the remaining 46 aircraft at a facility set up by the JV near Bangalore. In keeping with the 2013 MTA tender, 24 of these will be imported in kit form for local assembly and include a 30% indigenous content. The level of indigenous content is then expected to double to 60% in the remaining 22 platforms.

Delivery of the first locally assembled C295 is expected to begin within 60 months of the contract being signed, industry sources said.

Senior IAF officers said that while the IAF's C295 version will fulfil its requirement for a tactical airlifter, the ICG variant is expected to operate as a multimission maritime aircraft.
Four years since DAC cleared the single bid. At last :giggle:
 

Gautam

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Four years since DAC cleared the single bid. At last :giggle:
At last indeed. Remember the DRDO MMA presentation ? I watched that with a healthy degree of skepticism, wondering if we can even complete the deal ever. Well, happy to be proven wrong.
Who knows maybe the Airbus A330 deal for AWACS India maybe completed soon too.