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India : MoD could shelve $2B private plane project
Publish Date : 23-Mar-2015
The Ministry of Defense (MoD) could shelve a $2-billion pilot which is floundering. The pilot involves the private industry for the production of a new fleet of transport aircraft for the Indian Air Force (IAF).The MoD is assessing the need as well as the bidding process.
The government plan to involve only the private industry in the replacement scheme to establish an alternate aviation industry apart from state-owned Hindustan Aeronautics Limited had failed to receive much response last year when just a single bidder emerged for the Avro replacement program an AirbusTata group offering the C295 medium transport airlifter.
The MoD has now formed a specialised committee to review the scheme and to see why other private players did not come up with bids for what was viewed as the largest project given completely to Indian players. Preliminary indicators are not looking positive for the Airbus-Tata partnership with a strong opinion that the tender will have to be rebid with a new set of conditions that would help other players to come in.
A forthcoming change in the buy Indian category of defence purchase policy that will have specialised rules for 'Make in India' could be used to move the project ahead for a re bid.Under the new set of regulations the lead for the project could be taken by the Indian firm , rather than the foreign vendor. But, IAF will have to convince the Mod on the need for 56 transport aircraft to replace its ageing fleet.
