Defence brass split over French Mirage upgrade deal

[SpArK]

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Defence brass split over French Mirage upgrade deal

New Delhi, June 19 (IANS) With the $2.4 billion Mirage-2000 upgrade deal with France in its final stages, India's defence ministry and air force top brass seem to be split over the high costs and likely benefits to the country's future air power needs.

With the contract papers said to be headed to the Cabinet Committee on Security (CCS), the volume against the deal is rising, top officials told IANS here.

Among points of contention is the deal cost to upgrade the 52 Mirage-2000 combat aircraft by French company Dassault Aviation. Taking into account $1 billion for new weapons and another $500 million for new facilities at Bangalore-based Hindustan Aeronautics Limited (HAL) for the upgrade, the cost could rise to $3.9 billion, the officials said.

"The upgrade programme will cost the Indian exchequer $7.9 million per Mirage-2000 aircraft. But India is buying 126 new Medium Multi-Role Combat Aircraft (MMRCA) under a $10.4 billion tender that is to be finalised in this fiscal.

"The cost of the new fourth generation fighter jet works out to $7.9 million per plane. Is it prudent to pay the same price for a swanky new plane and just an upgrade programme for a 25-year-old plane?" said a senior defence ministry official.

Confirming the raging debate, Indian Air Force (IAF) officers said this was the reason the contract has not seen the light of the day yet, though it has been in the pipeline for years now.

There was a strong push for the deal when French President Nicolas Sarkozy's visited India in December 2010 and the country's Defence Minister Gerard Longuet was here in May this year.

Among the upgrades planned for Mirage-2000 under the contract include night vision goggle compatible glass cockpit, advanced navigational systems, advanced Identify Friend or Foe (IFF) system, advanced multi-mode multi-layered radar, fully integrated electronic warfare suite and advanced beyond visual range (BVR) capability. The new weapons include 450 MICA interception and aerial combat missiles.

French firms Thales and MBDA will be the weapons systems integrator and missiles supplier respectively.

"In fact, Thales and MBDA were initially quoting much more," says IAF officers. "But even at this cost and age, an upgraded Mirage can operate efficiently for another 20 years and still be a potent, frontline fighter jet. The upgrade of the Mirages would provide it a fourth generation combat jet capability," the officers told IANS, requesting anonymity as they were not authorised to speak to the media.

India bought 52 Mirage-2000s in 1982 and fully inducted these into the IAF in 1986. Two of the planes will be upgraded in France, another two in India with French help, and the rest 48 entirely by HAL.

Another issue is the nine-year timeframe given by Dassault, the original equipment manufacturer (OEM) of Mirages, to complete the upgrade.



"In comparison, the same firm is quoting deliveries of just six years if it wins the MMRCA deal, on the lines of what its competitor in the final fray, EADS, too has quoted," officials noted.

"Not only will the upgraded Mirages cost as much as a brand new twin-engine fourth generation fighter, but some of the Mirages will be 35 years old by the time they are upgraded," they said.

Dassault, officials said, had in the original 1982 contract guaranteed 30-year plus 10-year life for the planes. "Thus the upgraded Mirages will have just another five years of service left, provided there are no time or cost over-runs. Then why spend a fortune?" they asked.

IAF officers also noted that Israel had also offered to upgrade the Mirages, but at half the price. But the defence ministry quoted an old policy that only OEMs could carry out an upgrade.

"The same ministry has called for competitive bids in recent months for equally complex fighter aircraft, particularly those from Russian or erstwhile Soviet stable," they said.

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[Nirvana]

"The upgrade programme will cost the Indian exchequer $7.9 million per Mirage-2000 aircraft. But India is buying 126 new Medium Multi-Role Combat Aircraft (MMRCA) under a $10.4 billion tender that is to be finalised in this fiscal.

"The cost of the new fourth generation fighter jet works out to $7.9 million per plane. Is it prudent to pay the same price for a swanky new plane and just an upgrade programme for a 25-year-old plane?" said a senior defence ministry official.

Another issue is the nine-year timeframe given by Dassault, the original equipment manufacturer (OEM) of Mirages, to complete the upgrade.



"In comparison, the same firm is quoting deliveries of just six years if it wins the MMRCA deal, on the lines of what its competitor in the final fray, EADS, too has quoted," officials noted.

"Not only will the upgraded Mirages cost as much as a brand new twin-engine fourth generation fighter, but some of the Mirages will be 35 years old by the time they are upgraded,"

This is the Reason why this Deal is Not yet Finalized

I think This deal Will be a BIG Mistake if finalized , Better Buy New One's Than Upgrading Old Mirages [3 Sqd Of New Multirole fighters to Replace Mirages ]

[pari.mehta]

IAF officers also noted that Israel had also offered to upgrade the Mirages, but at half the price. But the defence ministry quoted an old policy that only OEMs could carry out an upgrade.

And there is the problem, generations of officers and politicians taking bribes to narrow competition in defense deals, costing us a tonne.

[SpArK]

This is the Reason why this Deal is Not yet Finalized

I think This deal Will be a BIG Mistake if finalized , Better Buy New One's Than Upgrading Old Mirages [3 Sqd Of New Multirole fighters to Replace Mirages ]

Yup push the ones to the limit and buy maybe 3 sqrdn of Gripen's.

[Break the Silence]

Yup push the ones to the limit and buy maybe 3 sqrdn of Gripen's.

That would be a much better option, instead of upgrading old Horses.

[Skull and Bones]

That would be a much better option, instead of upgrading old Horses.

You can't let go all the years of experience you gained in that aircraft, inducting new platform will require some time to get acquainted with.

[koushik]

And there is the problem, generations of officers and politicians taking bribes to narrow competition in defense deals, costing us a tonne.

yes thats right.I think that 40-50 Gripen NGs would be fantastic.

[nick_indian]

just buy some extra rafales . What say guys ?

[rockstar]

How about buying second hand upgraded mirages ..? around 30?

[baker]

up gradation of aircrafts are routine for all the air forces in the world... india having such good expirence in the mirage platform and these up gradation will boost our capabilities.....

we cant simply order new fighters regularly....

[djmanj]

The figures are WRONG. Its not $7.9 mil per mirage but around $48 mil per mirage for the upgrade which is equal to buying a new 4th gen plane. If it was $7.9 mil then the upgrade would have been finalized long time ago and would have cost the exchequer less than $400 mil.

[SR 71 Blackbird]

I thnk it's 47.9 million $ per bird.

[SpArK]

There are plenty of reasons to scrap this deal and go for newer ones.

[angeldemon_007]

I prefer Israelis....but if we give MMRCA to Dassault then we should reconsider...

[jha]

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French fries are too pricey..


When they are asking so much for upgrades, who knows what they will demand in the middle of the project..? They have already shown us their attitude in Scorpene..

I would rather take a F-18 than a rafale.. Americans deliver on time and in agreed budget..