Decision soon on IAF's 126 fighters: Antony

Bangalore -- A decision will be taken "at the earliest" on a global tender to be floated by the Indian Air Force (IAF) for purchasing 126 combat jets, Defence Minister A.K. Antony said here Wednesday.

"The process is on. A decision will be taken soon, at the earliest," Antony stated at a press conference after inaugurating the Aero India 2007 international air show at the Yelahanka air force base on the outskirts of the city.

Defence production secretary K.P. Singh had said Tuesday that the decision would take six months but Antony's statement is an indication that this could happen sooner.

It is also in line with Antony's statement at an international seminar in New Delhi Monday that the IAF in the near future would get "a lot of equipment", that "many things are in the pipeline" and that it "would not be much difficult in getting adequate money".

Antony's statement Wednesday was also a clear indication that two US jets are very much in contention for the IAF order.

Replying to a question on whether there would be a paradigm shift in India's policy on largely relying on Russia for its defence requirements, Antony said: "Our policy is to purchase the best equipment the armed forces want. There is no bias against anyone but there will also be no favourable attitude toward anyone."

However, even if the tender is floated before March 31, the end of fiscal 2007, it would take at least five to 10 years before the first planes start arriving - if past precedent is anything to go by.

The IAF had in 2001 projected a requirement of 126 multi-role combat aircraft to replace its ageing fleet of Soviet-era Mig-21s and MiG-23s.

Requests for information (RFIs) were then sent out for four aircraft - the US F-16, the French Mirage 2000-5, the Russian MiG29M/M2 and the Swedish Grippen. In addition, the manufacturers of the US F-18 Super Hornet and the four-nation European Raffaelle also sent in their offers.

A request for proposal (RFP) was to have been sent out to the short-listed manufacturers in 2004 but this has not happened.

The IAF chief, Air Chief Marshal S.P. Tyagi, has gone on record saying India's new defence procurement policy (DPP) has been responsible for the delay.

The DPP, announced last year, contains three crucial elements: an offset policy, calculation of lifecycle costs and joint production.

Under the offsets clause, 30 percent of all defence deals worth over Rs.3 billion have to be reinvested in the country. A number of foreign defence contractors say this is not an issue as much as the manner in which the reinvestment is to be made.

US Ambassador David Mulford used the word "restrictive" while referring to the offsets clause at a press conference here Tuesday. According to the ambassador, the policy was very department-centric and should be made more broadbased to ensure true benefits for India's defence industry.

Antony indicated Wednesday this could be considered.

This apart, the calculation of lifecycle costs - the total cost of equipment from its purchase to its phasing out - could also prove to be a sticky point, while joint production would not be an issue, defence analysts say.