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Thursday, 21 March 2019

INTERIM ACQUISITION OF SECOND HAND MIRAGE 2000 TO BOLSTER IAF CAPABILITY

Meeting IAF’s Demand for Combat Aircraft Cost-effectively


The IAF is clearly unhappy with the delay in the Tejas induction. The 1983 concept is starting to bear fruit today, but is miles short of operational deployment in significant numbers. The Rafale induction has been cut down to 36. Considering the steep payout involved in obtaining this aircraft — which is plainly giving the RM Ms Nirmala Sitharaman sleepless nights, why not bolster the IAF with more Mirage 2000 aircraft, the Almighty’s gift to the IAF?

An easy way out is to acquire from a financially strapped Greece its nearly three squadrons of Mirage 2000 aircraft. The Hellenic AF operates 45 Mirage 2000s — 20 EGM/BGM variant and 25 “5 Mk-II” version.The difference between the Greek EGM/BGM and the 5-Mk II Mirage 2000 is fleeting; post upgrade, they would be identical. Greece also has some 150-odd F-16s. So Athens might willingly sell its Mirages, what with the Greek govt being pushed by EU creditors to repay the outstanding national debt. The upgrade of the Indian fleet of Mirage 2000 costs roughly $43 million per aircraft. Additionally, Qatar might sell off of its 9 Mirage 2000s which India can buy.

That totals 54 planes, more than doubling IAF’s Mirage 2000 fleet of 49. Furthermore, India will not have to invest in any infrastructure or training pilots or technicians. The Modi govt should approach Athens with a deal it cannot refuse, say, $60 million per aircraft plus all the stores, spares, and weapons holdings available for another $100 million. India will have to pay $2.8 billion for the Greek Mirages and an addition one billion $ for the Qatari deal. India will have to pay less than $4 billion for 54 Mirage 2000 versus $8-$9 billion for only 36 Rafales. The latter has an AESA, but then DRDO is building an AESA for the Tejas jointly with Israel that’s going to be tested later this year.That could be retrofitted into the new buys.

Monday, 4 March 2019

RAFALE OFFSET PARTNERS

COMMON KNOWLEDGE


As explained in a later post, the Indian Ministry of Defence had announced that Dassault Rafale had won the MMRCA competition to supply the Indian Air Force with 126 aircraft, along with an option for 63 additional aircraft. The first 18 aircraft were to be supplied by Dassault Aviation fully built and the remaining 108 aircraft were to be manufactured under license by Hindustan Aeronautics Limited (HAL) with transfer of technology from Dassault.

in April 2015, Indian Prime Minister Narendra Modi announced that India would acquire 36 fully built Rafales citing "critical operational necessity". Defence Minister Parrikar informed the Rajya Sabha that the tender for 126 aircraft had been withdrawn and negotiations for 36 aircraft had begun, and concluded at a total cost of Euros 7.87 billion, with a 50% offset. In effect, Euros 3.94 billion would have to be invested in Indian companies to manufacture components in India, with associated transfer of technology. This was the cheapest buy when compared to the price paid by both Egypt and Qatar.

The leader of the Congress Party in India, Mr Rahul Gandhi called the deal a SCAM and that the unilateral decision to purchase only 36 Rafales at Euros 7.87 billion was made to ensure that Indian billionaire Anil Ambani would get the offset contract and laugh his way to the bank with the Euros 3.94 billion, which should have rightfully gone to HAL. He was immediately countered by saying that he had not read the contract which specified that approximately €1.2 billion or ₹9,000 crore) would be reserved for the Defence Research and Development Organisation (DRDO). He did not accept this statement, calling it a part of the scam.

The published list of offset partners has vindicated the Indian Govt stand that Ambani was one of the approx 90 Indian agencies involved in the offset. That list is given below:

The biggest offset partner in Rafale deal is DRDO with Rs 9,000 crore. Not Ambani, as claimed. The balance of Rs 21,000 crore is split between the three main manufacturers of the Rafale, Thales Rs 6,300 crore, Dassault Rs 8,400 crore & Safran Rs 6,300 crore. Offsets from Thales have been given to 12 Indian companies, from Dassault to 55 Indian companies and from Safran to 22 Indian companies. Ambani's Reliance is one of these 89 companies, clocking only about 3% of the total i.e. around Rs 900 crore. Among the known ones, L&T, Mahindra, HCL, TCS, Cap Gemini India, Titan, Wipro & Godrej feature prominently. HAL also features via a JV (Joint Venture) with Safran. 





Saturday, 19 January 2019

HALF BAKED POSTS ABOUT THE RAFALE HURT THE INTELLIGENTSIA

POINT OF VIEW: A LIABILITY CALLED RAFALE

I refer to an article by some self-professed expert on India's excellent Rafale deal. It is built on the surmise that "a fully loaded Rafale is only as capable as the Su-30, MiG-29 and Mirage 2000." The talk of Su-30/Rafale for distant nuclear delivery against China is too far in the future to consider today.

I am aghast at the tripe pushed out by this author, confirming that he has little or no clue about strategic concepts in sub-continental Air Power. To even raise the issue of long-range strategic bombers, such as the Tu-22 and the Tu-160 shows up a strait jacketed forward vision and puerile logic. He seems totally unaware of our multi-service Strategic Forces Command, aka Strategic Nuclear Command, the major chunk of India's Nuclear Command Authority (NCA), which is mandated to look after our nuclear arsenal and its deployment. We have surface-to-surface missiles dedicated to nuclear attack over various ranges as well as aircraft that can deliver tactical nuclear weapons. Moreover, in the air, we have specific force multipliers in the AWACS and Air-to-Air Refuelling (AAR) capability. The Rafale has flown 6-hour missions with AAR over Libya under the control of their AWACS.

The SU-30 MKI is an excellent aircraft, with certain shortcomings in their BVR missile capability that will be updated in time, but it has ONE major drawback-it is licence manufactured by HAL, an overstaffed and underworked aviation organisation considered to be incompetent. Equating 2.5 hrs of an HAL worker to one hour of a Dassault worker is a sad reflection of this agency's capability. Boeing has deemed it unworthy of partnering with, as has Dassault. Dassault has foregone a US$22-25 billion deal rather than risk partnering with and vouching for HAL.

He forgets that an aircraft is potent only when it is airborne. Unfortunately, the SU-30, as also other ex-USSR/Russian bloc aircraft produced by HAL in the past and the present suffer from a common ailment, poor serviceability due to non-availability of spares. HAL is responsible for providing these spares. The IAF cries itself hoarse because HAL shows it two fingers when it complains.

Every year, the CAG blames the IAF for sub-optimal utilisation of such very expensive aircraft acquisitions, while appending an addendum that the IAF is held captive by HAL. The routine indictment was presented in 2018 as well, which slammed HAL for sub-optimal performance, both as an entity and supplier of the SU-30 MKI, despite the first fighter being inducted 19 years ago. The jets also suffer from ‘frequent snags’ in their fly-by-wire systems and deficient radar warning receivers, among other things. The French aircraft boast of a near-zero rate of failure in these two subsystems, though a recent shadow has been cast on the EFCS after a two-seat Mirage 2000 crashed on Feb 01, 2019, during take off in an acceptance test, killing both test pilots. Since security precludes revelation of figures, let’s just accept that it is unbelievably lower than that guaranteed by Dassault Rafale and seen in the best-ever induction of a fleet yet, the Dassault Mirage 2000.

The Govt of that era was reminded time and again to buy the offered production line of the Mirage 2000 at a discounted price, a much simpler aircraft to build, but our pro-USSR bent of mind scuppered the issue. Had that been done, the MMRCA project could have been phased in progressively and at a far lower cost.

The author has no idea how attack plans are made for enemy targets and which aircraft will go where, how and with what weapons. Do we have aircraft launched cruise missiles? Just the Brahmos and, perhaps, the Nirbhay. The most damage inflicting weapon that set up air dominance in the Iraq attacks was the Tomahawk cruise missile. Will we get western cruise missiles? Yes. From where? I’ll give you three guesses. Do we have the French AM39 Exocet sea skimming missile? No. Will we get it? Yes. If not at this juncture, then with the Naval version. The Meteor 100 km+ BVR missile? No, but we will get it. By the way, the Meteor was designed as the primary air-to-air missile of the Eurofighter Typhoon! It is not a purely French-built BVR but an MBDA multi-national product. Does any IAF aircraft have a comprehensive onboard self-defence system? Yes, an Israeli system; like on the Mirage 2000 which has a fairly efficient self-defence system. Which ac can operate in battle conditions from Leh (10,700’ AMSL)? The Rafale can. Finally, the Rafale is the only IAF aircraft that can supercruise, i.e., sustain supersonic flight with a useful weapons load efficiently in dry power, meaning without the use of afterburner or ‘reheat’.

Most importantly, the French aircraft weapon computer is compliant with NATO MIL-STD-1760, an electrical interface between an aircraft and its carriage stores, thereby simplifying the incorporation of many of NATO’s existing weapons and equipment, a major National First. The 14-hardpoint aircraft can thus carry US weapons without tinkering with its innards, as was necessary for some Mirage 2000 in the Kargil ops--this may well be an India-specific requirement. In fact, it has dropped the US laser guided bomb (LGB), the GBU-12 Paveway II in Afghanistan. Today, it can also carry the GBU-22 Paveway III, GBU-24 Paveway III and the GBU-49 Enhanced Paveway II LGBs, not that it will be required to. It has a payload of 9.5 tons. If 4.5 tons are allowed in external fuel tanks, it could carry weapons weighing up to 5.0 tons, which is more than, if not equal to what the IAF’s workhorse cargo aircraft, the AN-32 usually carries as load.

It is battle-proven. It flew in the 2011 Libyan theatre, which brought forth deficiencies that have since been upgraded to best operating standards. Unbiased aviation journalists reported that the Rafale had maintained a high operational rate throughout the deployment. It took part in ‘OpĂ©ration Serval’ in 2013, OpĂ©ration Chammal over Iraq against the IS in 2014, and in the April 2018 missile strikes against Syria. It is carrier operable and the Indian Navy is to conduct trials before a planned procurement of 57 Rafale Naval aircraft.

Detailed analysis of the 36 aircraft deal shows that India has bought it at the cheapest price, when compared to Egyptian and Qatar inductions. At least five other nations are in a dialogue with Dassault to purchase the Rafale. The UAE wants 90 aircraft. Against the Indian cost of around Rs 1,611 cr per aircraft, Egypt is paying the equivalent of Rs 1,702 cr for 24 aircraft, with another deal for 12 more in the offing and Qatar, Rs 1,893 cr for 36 aircraft in a different basic configuration, with plans for 36 more.

Last week, The Hindu newspaper stated that the Specific to India Equipment (ISE) cost was US$1.4 billion in the 2007 deal for 126 aircraft, or $11.1 million per ac. In the 36 ac deal, the ISE was US$1.3 billion, or $36.1 million per ac, a significant loss to the nation at $25 million per ac, totting up to $900 million.  

This is a simple case of mathematical jugglery by a master of disinformation, one Mr Ram. The fellow has even quoted wrong figures.  According to Forbes India, 22 April 2010, "during his younger days, N.Ram also started a journal called Radical Review, with his friends, P.Chidambaram (his classmate!) and Prakash Karat." Is this a case of 'You scratch my back???'

When you buy your best or first suit, you are reminded that for best results and longevity, you must buy a hanger, a dust-proof suit cover--plastic, synthetic, cloth-based, whichever-- and hang it in your clothing cupboard. If you do not have a clothing cabinet, you buy one. If you then buy a dozen suits, you will use a dozen clothes hangers and covers and place them all in that same cupboard, a one-time buy. The number of suits is irrelevant-you have to first buy that cupboard, in this case, the ISE. The number of ac (suits) you fit the specifically advanced kit with is of no consequence.

Dassault has a top-secret aircraft operating protocol, written in an equally top-secret language. The US, Israel, the UK, Japan and other countries have not been able to crack it. So, when you want to integrate items that are not in the aircraft’s compatibility list, you have to pay for designing that protocol. These weapons include the Astra BVRAAM, Brahmos and Nirbhay Cruise Missiles, Infra-red target detection by EO Pods and more. Jugaad, like modifying the Litening laser pod for the Kargil Ops, may or may not work. Can we take such a chance? I don’t think so. A specimen of each of these will, in all probability, be taken to France, the onboard weapons computer adapted to accept these items, test flights done to check viability and portability and so on. These will take time and money. The more Rafales you buy, the cheaper will the modification be on a per ac scale.

I simply don’t see how India Today can let such biased articles be published, tarnishing its own image, such as it is. He says, “The 'Super Sukhoi' version of the Su-30, more­over, meets the Rafale level of on-board data fusion capability.” That’s unfounded nonsense. That aircraft can carry only Russian weapons and some others, with help from a certain friendly country. It cannot carry NATO standard weapons that are infinitely superior to Russian weapons except for the K-74M AAM, an improvement over the upgraded R-73 (AA-11 Archer) AAM, which missile is to be fitted on the Tejas, and possibly the R-77. Yes, the Su-30 is data-link qualified with Indian ground systems, but not as optimally as the Mirage 2000, limited as it is to low-quality Russian processors which have been upgraded by using a quasi-western system. I believe it will also get the US ASRAAM, a modern see-you-kill-you weapon.

I resent the writer’s imputations. “Besotted by Western-origin aircraft, the IAF had hoped to use the initial order of 36 Rafales as a wedge to procure 90 more.” The man is confused. The Western C-130 Hercules is still flying as a frontline aircraft, inducted by the USAF in 1956 (and the IAF in 2011). That’s 63 years. Its USSR equivalent, the AN-12 was first inducted by the USSR air force in 1959, the IAF in 1961 and was retired by the IAF in 1990, 29 years after induction. The ancient Mirage III and V, first flown by the French Air Force in 1961 and acquired by Pakistani in 1967, are still flying, whereas the MiG-21s inducted in 1962 to counter them were retired in 2013, after relegation to and prolonged stay as an unsuitable and hazardous training aircraft. Western aircraft are far superior to their Russian equivalents. Even so, today the IAF has more Russian bloc aircraft than their Western counterparts. Besotted, my foot. 

As the Table shows, India did get the best deal.

Month/Year
Country
No of ac
Cost
US$ billion
No of
Bases
Cost of
36 ac*
Remarks
Cost per ac
Feb 2015
Egypt
24
5.9
1
8.85
Likely scaling up to 36 ac
Rs 1690 cr
May 2015
Qatar
24
7.02
2
10.53
Meteor and all trg
Included, 48 more ac likely
Rs 1893 cr till date
Sep 2016
India
36
8.70
2
8.70
Base model
Rs 1611 cr
Nov 2015
UAE
90
Not known
*US$billion

Friday, 18 January 2019

UNNECESSARY IMBROGLIO ON INDIA'S FIRST RATE RAFALE DEAL

THE TYPHOON VS RAFALE: INDIA'S SENSIBLE CHOICE

A year after Indian PM, Mr Modi agreed to buy 36 Rafale aircraft in April 2015 for US$$8.7 billion, many observers wanted to know how the Typhoon fared. The Typhoon had a list price of about US$140 million. That is Rs 1,000 cr per ac on the bargaining table in flyaway condition, not in any operational status. Using the logic that the final price of the Indian Rafale reached Rs 1,600 cr for a tabled price of Rs 670 cr, i.e., if state-of-the-art weapons/avionics systems and infrastructure costs were added, the Typhoon price would jump to Rs 2,388 cr per piece. 36 ac would cost Rs 85,970 cr if operated from ONE base. If operated from TWO bases, costs would increase to close to Rs 91,000 cr, as explained later.

On an apple to apple basis, in February 2015, Egypt officially ordered 24 Rafales for US$5.9 billion, operating from ONE base. 36 ac in the same year would cost US$8.85 billion from one base and US$9.3 billion from two bases, but India managed 36 ac for US$8.7 billion, operating from TWO bases. A real win-win deal. 

In May 2015, 24 Rafales were contracted for $7.02 billion by Qatar, at a total price of US$298 million per ac (Rs 1892 cr per ac at 2015 exchange rate). This price tag includes provision of long-range cruise missiles and Meteor missiles as well as the training of 36 Qatari pilots and 100 technicians by the French military. The option for 12 more Rafale aircraft was exercised in December 2017 for €1.1 billion (or €92M each) with an additional option for 36 further jets. They are reportedly happy with the ac and its remarkably reduced cost. 

An article of 04 Jan 2019- more than three and a half years after the Kuwait deal-shows costs of new generation aircraft.

Canada is awaiting the outcome of a fighter ac competition between four contenders—the Eurofighter Typhoon, Sweden’s Saab Gripen, Boeing's Super Hornet F-18 and Lockheed Martin’s F-35—for an 88-jet, CAD $26 billion (USD $20 billion) order that should see the new aircraft fielded by the mid-2020s.

Today, if 88 Eurofighter Typhoons are to cost around US$20 bn (Rs.140,000 crores), 36 would cost close to Rs.57,270 cr off the shelf in a standing configuration (each ac would cost Rs.1590 cr). Following the Rafale analogy, this would work out to Rs.137,000 cr in the fully op role, operating out of two bases. This is totally unacceptable under any circumstances.

Germany is facing serviceability problems. In the UK too, serviceability is a major problem, averaging 43%.

The Indian fiat is a 75% serviceability rate for the 36 ac for the first five years after all 36 ac are inducted.

If you so desire, please do your own maths. Please note that infrastructural costs, for basic flying and combat flying simulators, as well as for ground training of technicians using computerised training aids (at least 2 basic simulators), test bays, airframe systems and avionics repair bays, radar and laser bays, anechoic chambers, engine sheds and calibrated ground-test bays apart from complex weapon systems and more, all imported from France, will add a few thousand crores to overall fleet cost, thus reaching a total of Rs 59,000 cr. Reduce that from 59,000 and you will get ~Rs 50,000 cr. The offset requirement will, therefore, be for ~ 25,000cr, denting Rahul Gandhi's plaintive cry. A simple comparison can be made with the Mirage 2000 buy, the best ever fleet induction by the IAF. All Mirage ac are safely located deep in Central India at ONE base and have the capability to fly out to four or six or more forward bases in a few hours, while undertaking some hyper-complex missions from home base itself.

Operationalising two bases entails avoidable duplication. To me, this was a clear signal that the IAF expected to acquire 126 aircraft. On the other hand, we will have infrastructure in place for at least 36 more Rafale ac, which will then be relatively cheaper than the 36 bought. The IAF does not want more SU 30 MKIs or the Tejas. The Govt has forced the IAF to buy 123 Tejas (43 Mk1 & 80 Mk2) at a base price of Rs 543cr, and between 272 and 312 SU-30 MKIs. This should be possible by 2035! The Tejas will be using the GE F-404/F-414 engines --which equip the US F-18 Hornet and Superhornet respectively-- on the Mk1 & 2 as DRDO has failed to produce the Kaveri engine since 1984. This addition will not boost IAF strength to 42 Sqns, as the 43 Mk1s will replace the Mig-21 Bison and the 80 Mk2s the ageing Mirage 2000 and other Bison ac. The upgraded Mirage 2000s are, however, lifed till at least 2036-42.

In April 2018, we issued a fresh RFI to procure 110 fighter jets, including both single and twin engine fighter aircraft. The 110 aircraft should have 17 aircraft in flyaway condition and the remaining 93 are to be made in India by a Strategic Partner. The same 6 agencies that bid for the MMRCA have put in their proposals. This is a smart move by India, as the L1 price of the Rafale is now known and will be kept in mind by the contenders while bidding. This time around, I am certain that ‘Make in India’ will be the primary caveat. The nay-sayers allege that Dassault Reliance Aerospace Limited, the so called AA Company, will have around 6-8 years experience and shrewdly edge HAL out again. This way, we will get the 90 ac left out in the Rafale deal plus more. 

The IAF was wary of the intention to get the most over-staffed, under-performing and inefficient aviation org in the world, HAL, to produce the aircraft. We have lost more than our share of pilots and ac to improperly produced HAL models. The recent accident on 01 Feb 2019 where we lost a Mirage 2000 two-seater and two IAF test pilots during an acceptance check by the IAF is a case in point, where HAL is shown up as a callous culprit.

Reading between the lines, the Modi Govt is aware that the earlier deal fell through because Mr Antony and his cohorts insisted that HAL be included in the deal and that Dassault sign up that they were offering a guarantee of quality for HAL-produced ac. Dassault, like Boeing and the rest of the world, considers HAL to be a worthless organization. The former opted to forgo a 22-25 billion dollar deal rather than vouch for the sub-par HAL.

As the Table shows, India did get the best deal.
Month/Year
Country
No of ac
Cost
US$ billion
No of
Bases
Cost of
36 ac*
Remarks
Cost per ac
Feb 2015
Egypt
24
5.9
1
8.85
Likely scaling up to 36 ac
Rs 1690 cr
May 2015
Qatar
24
7.02
2
10.53
Meteor and all trg
Included, 48 more ac likely
Rs 1893 cr till date
Sep 2016
India
36
8.70
2
8.70
Base model
Rs 1611 cr
Nov 2015
UAE
90
Not known
* In US$billion