Scramble for huge India plane deal begins

NEW DELHI, Aug. 4 (UPI) -- The medium multirole combat aircraft project, valued up to $12 billion, is one of India's biggest defense deals and a mouth-watering prospect for the world's major manufacturers in these lean economic times.

The Indian air force's MMRCA project, first proposed in 2007, calls for acquiring 126 of these planes to modernize its operational fleet to augment the country's air defense. Published reports say the first 18 planes will be made by the winning bidder and the rest made under license in India.

These multi-role combat planes will be inducted beginning 2012.

The first of the flight evaluation trials of the various planes, competing for the contract, are set to start in India's southern city of Bangalore.

The city, besides being known as the global information technology outsourcing capital, is also a major Indian air defense and aeronautical industry center. The trial in the city will test the planes' capability in high humidity conditions before similar trials are held in other extreme climatic regions in the country.

The Indian Defense Ministry's evaluation trial invitations have been sent to six companies. They include the United States' Boeing, which makes the F/A-18 Super Hornet, and Lockheed Martin, makers of the F-16 Falcon.

The others are European Aeronautic Defense and Space Co. with its Eurofighter Typhoon, Russia with its Mikoyan MiG-35, Sweden's Saab AB JS-39 Gripen and France's Dassault Rafale.

In its April 2008 news release announcing the submission of bids on behalf of Lockheed and Boeing, the U.S. Embassy in New Delhi said the two companies "have unmatched experience in the kinds of new technologies which are of growing interest and importance for the U.S.-India defense partnership" and that the United States backs them "as reliable and desirable partners who can deliver the world's best technology to the world's largest democracy."

Boeing's F/A-18 will be the first contender to arrive in Bangalore followed by the rest, the Press Trust of India reported, quoting senior Indian air force officers.

"We are optimistic that the trials on Indian soil and conditions of all the six aircraft competing for the deal will be completed before April end next year," the officers said. The IAF would field a team of two test pilots each and other personnel, who would carry out the flight trials in the three locations that the air force has chosen, they told PTI.

After Bangalore, all competing planes would undergo vigorous high-altitude trials on the frigid Himalayas and over the rugged and arid desert state of Rajasthan for summer trials, PTI said.

The Times of India reported the planes will also undergo trials of weapons-testing in their respective countries.

The results of the trials are expected by the middle of next year. Commercial negotiations will commence later among the shortlisted companies before contract signing.

The companies have conducted a strong campaign to win the contract, Indian media reports say.

The Jerusalem Post in early July reported the United States pressured Israel Aerospace Industries to back out of a partnership with Swedish aerospace company Saab, which is offering its Gripen fighter for the Indian contract.

The report said the Israeli Defense Ministry ordered IAI to pull out because of Pentagon concerns that the U.S. technology would be integrated into the Gripen offered to India, even though Boeing and Lockheed themselves are also in the running for the contract.

"The stated concern was that Western technology in Israeli hands would make its way to the Indians," an Israeli official told the newspaper.