It would be hazardous to offhand put a figure on what would actually be the cost of an aircraft such as a Mirage 2000 or a Mirage 2000-5. It would entail an in depth study and multi-fold analysis of various factors before a reasonably accurate figure can be arrived at.

There is a general belief in defence circles that putting a definite price to any defence equipment and more so in the case of combat aircraft, is well nigh impossible; given the plethora of issues involved—visible and hidden—when working out the cost of the entire package, finally known as the “fully operational weapon system”. The myriad factors not only involve the plain and simple unit fly-away cost but also include training and maintenance costs, spares support, cost of weapons, operational costs, lifecycle costs, manpower costs, expenditures involved with transfer of technology (ToT), et al. It would therefore be extremely hazardous to indulge in an offhand manner to put a figure on what would actually be the cost of an aircraft such as a Mirage 2000 or for that matter, a Mirage 2000-5. Needless to say, it would entail an in depth study and multi-fold analysis of various factors before a reasonably accurate figure could be arrived at.

Notwithstanding the above, it is interesting to note that the unit cost of the Mirage 2000 in—Wikipedia is still being shown as $23 million (Rs 25 crore), perhaps its initial flyaway cost, stuck in the sands of time. But at $23 million (Rs 110 crore) in 1985—the year Mirage 2000 was first inducted into the IAF—it was looked at with awe and reverence by the fraternity of young fighter pilots, as at the time, it was not only the most expensive aircraft in the service’s inventory, but also the most capable. With some quickfire modifications carried out indigenously during the 1999 Kargil operations, the aircraft proved its worth in precision-strike role as well, with devastating effect on the enemy’s morale. So impressed was the IAF with the multi-role capabilities of the Mirage 2000 that it went ahead to acquire 10 additional aircraft to form a third squadron. Today, No.1, 7 and 9 squadrons in the IAF are equipped with Mirage 2000 jet fighters. Not only that, the IAF clearly favoured acquisition of the improved version of the Mirage 2000; namely, Mirage 2000-5 at the conception stage of the MMRCA deal, but finally, it was decided to go in for an international competition by issuing an request for information (RFI) which, as brought out earlier, also included Mirage 2000-5.

The RFI was issued in the year 2001. Nine years later, the entire gamut of IAF’s acquisition programme appears to have gone through a full circle, as far as its initial interest in Mirage 2000-5 is concerned; but with a big difference. The Mirage 2000 upgradation deal is likely to be formally inked during French President Sarkozy’s forthcoming visit to New Delhi. After two years of negotiations, French Aerospace major Thales and the IAF appear to have been able to agree on a price for outfitting India’s 51 Mirage 2000s with new radars, avionics, electronic warfare systems and onboard computers. As stated recently by the IAF Chief, Air Chief Marshal P.V. Naik, a French team is expected to arrive from Paris ahead of Sarkozy’s visit to carry out the final commercial negotiations; it is likely the deal would be concluded for a unit upgradation cost in the $41-43 million (Rs 18-19 crore) range. With this kind of a price tag, the IAF in all probability would have acquired close to 50 Mirage 2000-5s, had it gone for the deal in 2001. The big difference is that now it would get only the upgradation done and not the entire aircraft.

Be as it may, there is no denying the fact that after 25 years of operational service, the IAF Mirages are certainly in need of mid-life upgradation. Air Chief Marshal Naik was reported to have said at a recent press conference that upgrading the old Mirages was a better option than buying new fighter planes. This may not have been exactly what the Air Chief had in mind when he made the above statement and should be interpreted correctly in light of what he said subsequently in the same conference. He explained that when you buy an (fighter) aircraft, it is not only the aircraft that you buy, you spend money in training people, erecting infrastructure, logistics, spares supply and lifetime support. “The residual life of the 50 odd Mirages that are left is another 20 years. If I throw them away, I have wasted 20 years of that residual life. But upgrading the Mirages with the infrastructure already available, seems a better option, considering the lifetime cost,” he added.