New Delhi, August 19
The Indian Air Force (IAF) is likely to get the Advanced Jet Trainers (AJT) soon with Defence Minister George Fernandes saying today that the final proposal for the British Aerospace Hawks was on its way to the Cabinet Committee on Security (CCS) for clearance.
Talking to correspondents on the sidelines of a felicitation ceremony for the Marshal of the IAF, Mr Arjan Singh, here today Mr Fernandes said the proposal was “on its way to the CCS” for the final clearance. The CCS is likely to meet in the coming days to take into consideration the Cabinet note prepared for final clearance.
According to reports, the Cabinet note for the CCS has been prepared on the basis of the report of the price negotiation committee headed by Air Marshal S.G. Inamdar, Vice-Chief of the Air Staff. The committee has been able to give its report to the Ministry of Defence (MoD) following lengthy negotiations with the British Aerospace for the past one year.
The deal involves off-the-shelf purchase of 22 Hawk aircraft, with another 44 jets to be assembled in India. It also envisages the manufacture of another 134 jets in the coming years under the transfer of technology agreement with British Aerospace.
Besides the price, the committee headed by Air Marshal Inamdar was also negotiating for the transfer of technology for the manufacture of the Hawks in India.
With the signing of the deal it would be the first time that British Aerospace would be allowing the manufacture of the Hawks anywhere outside the UK.
While the negotiated price of the Hawk is being kept a secret, reports indicate that the British were initially asking for Rs 93 crore per aircraft. However, the government quoted a price of around Rs 71 crore per aircraft.
Apparently, after detailed parleys with the price negotiating committee, British Aerospace quoted the “best and final offer” of Rs 76 crore for a Hawk.
Since the difference is considerable, the Defence Ministry wants the political leadership to decide on the matter, specially keeping in mind the sensitivity of the mega defence deal.
The total deal for 66 AJTs will work out to around Rs 5,100 crore.
The price of the Hawk has gone up from Rs 59 crore in 1998-99 to Rs 76 crore because the manufacturer has replaced all US-built components with British-made parts.
This has been done on Delhi’s request because it does not want US sanctions to come in the way of the deal.
