Friday, October 19, 2018

Amid Rafale dogfight, Defence Ministry audit finds HAL-made jets costlier

Fighter jets produced by the Bengaluru-based Hindustan Aeronautics Limited (HAL) under foreign licences are costlier than the same aircraft made by the Original Equipment Manufacturer (OEM), a recent Ministry of Defence (MoD) review has found.

The development comes amid the Modi government and Opposition slugfest on the state-owned company being excluded from the Rs 7.87-billion euro Rafale fighter jet deal under which Dassault Aviation will supply Indian Air Force (IAF) 36 units of the fourth-generation, twin-engine, all-weather, multi-role fighter jet under fly away condition. Anil Ambani's Reliance Group will be the offset partner in the pact.

The department of defence production is studying the document, said an anonymous Ministry source to the Hindustan Times.

The review document has found that the HAL-made Su-30 MKI of the Indian Air Force is about Rs 150 crore costlier than its Russian counterparts produced by the JSC Sukhoi Company. The Russian versions cost Rs 269.77 crore, whereas the same jets produced under Russian license in India, come at a price range of Rs 417.69 crore.

“The aircraft produced at HAL comes at a significantly higher cost when compared to direct purchase from the OEM,” the document added.
19/10/18 New Indian Express

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