‘The IAF is moving towards full spectrum capabilities. These seminars have been on for six years. Now it is time to stop talking and start doing.’

The seminar (September 22-23) at the Manekshaw Centre organised by the Centre for Air Power Studies together with Confederation of Indian Industry and Air HQ not only lived up to but surpassed expectations of content. But did it achieve all the desired objectives?

The Indian aerospace industry is on the threshold of a quantum ‘leap’ as its largest client the Indian Air Force (IAF) is in the midst of a metamorphic transformation. Emphasising the point in his keynote address, Air Chief Marshal N.A.K. Browne, Chief of the Air Staff (CAS), said, “Modernisation in the IAF is the critical factor that will raise industry by its jockstraps.” He added that in India’s ongoing Eleventh Five Year Plan, Rs. 97,000 crore ($20 billion) have been allotted of which 70 per cent had been consumed and the rest would be spent by March 2012. Contracts signed in the last five years totalled a healthy Rs. 1,12,000 crore ($22.5 billion).

But does the pace of modernisation conform to the aspirations of the IAF? Contrary to the general belief that the IAF will have what it needs by 2017, the process will actually have to continue through to 2022 at a higher pace to restore force levels. But if it has to build the necessary capabilities to deter a possible two-front war, it would require much greater resources with time frames spilling into the Fourteenth Five Year Plan period. It is assessed that the IAF would in the next 15 years need nearly $150 billion ( Rs. 6,75,000 crore) for capital acquisitions alone to fulfill its strategic vision. Further, the figure could touch $200 billion ( Rs. 9,00,000 crore) by the end of the Fifteenth Plan i.e. 2032 – the IAF’s centennial year.

This brings to the fore the ‘offset’ obligations of 30 to 50 per cent on contracts of Rs. 300 crore or higher under the Defence Procurement Procedure (DPP). This would ensure that vast sums of money are ploughed back into the Indian aerospace industry. The medium multirole combat aircraft (MMRCA) contract to be signed hopefully by end 2011 would by itself generate offsets in excess of Rs. 20,000 crore. This would provide windows of opportunity to both public and private sector companies to create enduring partnerships with the concerned original equipment manufacturers (OEMs). The CAS went on to say that the IAF was not only looking at the capital acquisition but life-cycle support as well. The industry would need to imbibe the technology to indigenously produce major components, systems and sub-systems to not only be in a position to provide spares but also support midlife upgrades.

The IAF cannot rely on the foreign OEMs alone and a robust indigenous industry is imperative for life-cycle support based on a ‘cradle-to-grave’ concept — covering a period of at least 40 years. However, to build such capabilities, a lot more research and development (R&D) effort has to go into the industry. In India’s context, unfortunately the R&D effort has been inadequate. The DRDO is expected to undertake applied research, develop technologies and pass it on to industry. But the industrial base itself has not been very strong. This disconnect would have to be corrected by all aspiring players, public and private, through higher allocation to R&D.

It is clear that the IAF is extremely serious about creating indigenous capabilities to achieve self-reliance to ensure desired operational readiness at all times. Also, it is equally interested in the public-private participation to support its endeavours. The CAS suggested that production of the aircraft to replace the Avro fleet be entrusted to the private sector in collaboration with a foreign OEM. This would be similar to the practice followed so far by HAL. In due course, the private sector could develop the capability to design and manufacture complete aircraft. This would eventually lead to a competitive environment in the Indian aerospace industry.