Indian MRCA competition
The Medium Multi-Role Combat Aircraft competition in India, also known as the MRCA tender, was a competition to supply 126 multi-role combat aircraft to the Indian Air Force. The Defence Ministry had allocated at 2008 prices for the purchase of these aircraft, making it India's single largest defence deal. The MMRCA tender was floated with the idea of filling the gap between its future Light Combat Aircraft and its in-service Sukhoi Su-30MKI air superiority fighter.
The contest featured six fighter aircraft: Boeing F/A-18E/F Super Hornet, Dassault Rafale, Eurofighter Typhoon, Lockheed Martin F-16, Mikoyan MiG-35, and Saab JAS 39 Gripen. On 27 April 2011, after an intensive and detailed technical evaluation by the IAF, it reduced the bidders to two fighters—Eurofighter Typhoon and Dassault Rafale. On 31 January 2012 it was announced that Dassault Rafale had won the competition due to its lower life-cycle cost. The deal had been reported to cost US$28–30 billion in 2014.
However, the deal stalled due to disagreements over production in India. Dassault refused to take responsibility for the 108 HAL-manufactured Rafales, as it had reservations about the ability of HAL to accommodate the complex manufacturing and technology transfers of the aircraft. Instead, Dassault said it would have to negotiate two separate production contracts by both companies. The Indian Defence Ministry instead wanted Dassault to be solely responsible for the sale and delivery of all 126 aircraft. In May 2013, The Times of India reported that negotiations were "back on track", with plans for the first 18 Rafales to be delivered in 2017. Another point of contention is a provision where Dassault was to reinvest 50 percent of the deal's earnings into India's defence sectors, either through purchases or technological expertise. In March 2014, the two sides were reported to have agreed that the first 18 aircraft would be delivered to India in flying condition and that the remaining 108 would be 70 percent built by HAL., it was reported that India and France expect to sign a contract by March 2015. On 13 April 2015, the defence minister Manohar Parrikar made an announcement that the M-MRCA tender is "effectively dead". India officially withdrew the 126-aircraft MMRCA tender on 30 July 2015.
On the joint press statement made by Prime Minister Narendra Modi's with President François Hollande, during his visit of France, the PM said that India will purchase 36 Rafales, This contract was finalised and all the 36 aircraft will arrive in India in flying condition. The agreed upon terms in April 2015 totaled US$8.8 billion for 36 airplanes costing $244 million each.
Background
Indian Air Force summary
The Indian Air Force is the air arm of the Armed Forces of India and has the primary responsibility of conducting aerial warfare, defending the Indian airspace, conducting strategic strikes inside enemy territory and providing aerial cover to ground troops. It is the fourth largest air force in the world, with a strength of more than 1,500 aircraft, including more than 750 combat aircraft.IAF sanctioned fleet size
The minimum sanctioned strength of the IAF is 39.5 squadrons of combat aircraft, with a healthy level of 44 squadrons. However, this level was achieved only in the mid-1980s with the acquisition of the Mirage 2000s, MiG-29s and Jaguars. In addition, most IAF aircraft were comparatively new at the time, being less than 10 years old. Most of the older aircraft would have become obsolete by the mid-1990s, with the rest needing replacement by 2010. However, these aircraft were not replaced, which led to frequent crashes and attrition losses. Reduction in force levels and phasing out of aircraft have meant that the IAF operates only 30 fighter squadrons as of January 2014. Even with the planned MMRCA procurement, the IAF will reach sanctioned strength only by 2017.Aging MiGs
Due to budgetary constraints—specifically, the economic problems in the early 1990s—the refurbishment of old planes and purchase of new ones was halted. Added to this was the disintegration of the Soviet Union, which led to severe shortage of aircraft spares, which rendered many of them unserviceable.The attrition was stemmed to some extent by extensive upgrade programs on the MiG-21, MiG-27, Jaguar and other aircraft in the mid-1990s. An aggressive program of upgrades was initiated. The MiG-21bis aircraft have been upgraded to MiG-21 Bison levels, Jaguars to DARIN III standards, and Mirage 2000s and MiG-27s were also upgraded. The MiG-23MF air defence interceptor was phased out in 2007 by the IAF. Further retirements of MiG-23BN ground attack aircraft began in March 2009. With decreased aircraft squadrons level, MiG-23s are set to be replaced by MRCA winner.
Requirements
The IAF projected a requirement for about 126 aircraft in 2001, when the strength was at 39.5 squadrons. There is an option for an additional 74 aircraft. Initial requirements appeared to be for a 20-ton class fighter aircraft with the Mirage 2000 as the strongest contender. However, the 20-ton MTOW limit requirement was later removed. The IAF required replacements for its frontline strike aircraft like the MiG-27 and Jaguar, which were anticipated to retire by 2015. India's future 5th-generation aircraft, the Russo-Indian Sukhoi/HAL FGFA and the indigenous Medium Combat Aircraft at the time did not appear to be viable for induction anytime soon.The Indian government is to buy the first 18 aircraft directly from the manufacturer. The remaining fighters will be built under license with a transfer of technology by HAL.
The IAF was keen on buying the Mirage 2000–5, after it was impressed by the Mirage 2000's capabilities during the Kargil War. However, due to the upcoming manufacture of the Dassault Rafale and lack of orders, the Mirage production lines were to be closed down. French officials stated that they could be kept open if India had made a firm commitment. However, the Indian Government decided to go in for a multi-vendor tendering process. Requests for Information were issued in 2004. The RFIs were initially sent to four vendors: Dassault, Lockheed Martin, Mikoyan, and Saab.
Due to the tendering process and delay in issuing the RFIs, Dassault decided to remove the Mirage 2000-5 from the bidding process and enter the Rafale in its place. The MiG-35 was entered in place of the prototype MiG-29OVT. The Eurofighter consortium entered the Typhoon into the competition. The Boeing F/A-18E/F Super Hornet also joined the tendering.
Bidders
Six aircraft were bid for the order – the Swedish Saab Gripen, Eurofighter Typhoon, French Dassault Rafale, Russian Mikoyan MiG-35, and the American F-16IN and F/A-18IN Super Hornet. Previously, Mikoyan and Dassault have been regular suppliers of aircraft for the Indian Air Force and in terms of transfers of technology, licensed production in India, personnel training, supply of spare parts, maintenance, and upgrading.Dassault Rafale
The Dassault Rafale is a French twin-engined delta-wing agile multi-role fighter aircraft designed and built by Dassault Aviation. The Rafale was brought in as the replacement for the Mirage 2000-5 that was originally a competitor for the tender, after the production lines for the Mirage closed down, as well as the entry of much more advanced aircraft into the competition.The Rafale has the advantage of being logistically and operationally similar to the Mirage 2000, which the IAF already operated and used with great success during the Kargil War in Operation Safed Sagar. This would require fewer changes in the existing infrastructure of the IAF, which reduces costs. Moreover, being 100% French also provided Dassault a distinct edge over its competitors on the issue of technology transfer. Dassault claims that the Rafale has an advantage over many of the competitors because it is not subject to ITAR restrictions.
While not included in the MRCA requirement, the French fighter has more configurations of potential interest for the IAF: a carrier-based version and a capability for nuclear strategic strike. Both of these particular versions are in use in the French Armed Forces. At present however the Rafale M uses a catapult system and the nuclear strike use is earmarked by others jets of the IAF. On 26 June 2012, it was revealed that the Rafale M could be used on a STOBAR aircraft carrier without any modification of the planes or installation of catapults on the flight deck.
The French government has cleared full technology transfer of the Rafale to India, including that of the RBE2-AA AESA radar which will be integrated into the Rafale by 2010 and also the transfer of software source code, which will allow Indian scientists to re-programme a radar or any sensitive equipment if needed. Without the software source code, the IAF would have to specify mission parameters to foreign manufacturers to enable configuration of their radar, seriously compromising security in the process.
Dassault has also offered to fit the GTX-35VS Kaveri engine into the Rafale, which if chosen, would greatly improve commonality with the HAL Tejas that will enter service into the IAF by 2010. Concerns have been raised about cost issues as well as potential sales to Pakistan, which has also expressed interest in the Rafale. However, no such jets have been sold to Pakistan. India and France have recently agreed to "go beyond a buyer-seller relationship". On 31 January 2012 Rafale was declared the winner of the MMRCA competition, beating Eurofighter Typhoon on cost.
Eurofighter Typhoon
The Eurofighter Typhoon is a twin-engine multi-role canard-delta air superiority fighter aircraft, designed and built by a consortium of European aerospace manufacturers through Eurofighter GmbH.Eurofighter is offering the Tranche-3 Typhoon for the Indian requirement, equipped with the CAESAR AESA radar. EADS has invited India to become a partner of the Eurofighter Typhoon programme if the Typhoon wins the contract, and will be given technological and development participation in future tranches of the Typhoon. Bernhard Gerwert, CEO of EADS Defense Department, elaborated that if India becomes the fifth partner of the Eurofighter programme, it will be able to manufacture assemblies for new Eurofighters.
In January 2010, EADS offered to include thrust vectoring nozzles with the Typhoon's EJ200 engines for India. Thrust vectoring will improve operational capabilities, and reduce fuel burn by up to 5% and increase thrust while supersonic cruising by 7%.