SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG
The Indian Ministry of Defence (MoD) has recently revealed its intent to conduct an open tender for the Multi-Role Fighter Aircraft (MRFA) project, aiming to procure 114 jets for the Indian Air Force (IAF). This initiative is poised to be one of the largest defence procurement projects in recent years. As part of this ambitious plan, the MoD is focusing on companies that can assure high delivery rates, potentially targeting 20-24 jets per year. However, achieving this pace comes with certain challenges, particularly concerning localization—a core goal of India’s defence procurement strategy.
Sources familiar with the developments shared insights with IDRW.org, highlighting a primary concern: balancing the high delivery rates with localization requirements. While India’s defence policy emphasizes self-reliance and local production, particularly under the “Make in India” and “Atmanirbhar Bharat” initiatives, implementing these ideals in the MRFA project may necessitate some compromises. High delivery rates generally require a well-established production line and a streamlined supply chain, which can be challenging to achieve if each jet must meet extensive localization targets from the outset.
To accommodate the desired delivery pace, experts suggest that the MoD may need to initially lower the localization requirements, potentially setting them around 30-40% rather than the ambitious 70% typically aimed for in major defence procurements. Gradually, as local suppliers scale up and mature, localization levels can increase over time.
If India presses for rapid jet production and high localization simultaneously, it could face pushback from Original Equipment Manufacturers (OEMs), as setting up the local manufacturing of complex systems takes significant time and investment. OEMs are likely to argue that rapid production at high localization levels might affect quality control, increase costs, and extend project timelines.
As a result, the MRFA tender might need to adopt a phased approach to localization. In the initial production phases, components and systems that can be more readily produced locally may be prioritized, while others that are more complex and have longer lead times could continue to be imported. Over the aircraft’s service life, the Indian industry could gradually take on more substantial responsibilities for components that require frequent upgrades or replacements, ensuring a balance between quality, pace, and local industry growth.
One key area where localization may be limited initially is in airframe manufacturing and other aircraft structural components. These components are generally not replaced frequently, except in cases of damage, so producing them locally from the outset might not yield immediate operational benefits. Consequently, the initial focus of the MRFA program may be on achieving localization in components that have shorter replacement cycles and higher maintenance requirements, which would provide sustained opportunities for local industries.
To meet the long-term localization targets, the Indian MoD and selected OEMs would need to invest in building a robust domestic supply chain capable of handling the demands of high-tech manufacturing. This process involves technology transfers, skill development, and the establishment of high-quality manufacturing facilities, all of which take time to mature. By opting for a gradual increase in localization, India can leverage the initial years of the MRFA project to establish and train a network of local suppliers, eventually scaling up to more advanced components over time.
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