HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Business Headline > Report

British jet trainer to cost $18 million apiece

BS Political Bureau in New Delhi | January 27, 2003 13:44 IST

The last hurdle in the way of the Indian Air Force acquiring the advanced jet trainer appears to have been overcome after principal secretary to the prime minister, Brajesh Mishra's visit to the United Kingdom last month.

After years of agonising, India has decided to buy the Hawk, at between $16 and 18 million apiece.

The story of the AJT is long and complicated. When it was considered, the Hawk was a single vendor, because the air staff requirement by the Indian Air Force mandated certain features that only the Hawk had.

Later, when this problem was overcome, India tested the bomb and immediately came under the US's sanctions regime.

Because some components of the Hawk were US-made, the Indian government insisted price negotiations include that version of the Hawk that was sanitised of the US elements.

Finally, in February 2002, although price negotiations for the Hawk had been completed, a Czech-US consortium offered at 'a fraction of the price of the Hawk,' the L-159B trainer with a joint partnership, technology transfer and joint marketing. Poland too put in a bid for its M 93, an advanced version of the Iskra trainer.

These offers would not have been taken seriously except for a statement by Air Chief Marshal Krishnaswami.

At a press conference on October 1, on the eve of the Indian Air Force Day, Krishnaswamy was asked why the purchase of the AJT had been delayed.

His reply was that India had got an offer from a Czech-US consortium for the L-159B and as the parameters proposed by them were similar to India's requirements, this offer was also being evaluated.

This put the government in a spin and as MiG 21 after MiG 21 went down because of pilot error the Opposition demanded an explanation for the delay in procuring the AJT.

The Cabinet Committee on Security considered the matter. The defence ministry's latest official position is that the CCS is still considering the purchase of the AJT.

But Air Force sources told Business Standard that although price-wise, the Czech and the British aircraft are competitive (the L 159B is being offered at $12.5 million apiece, while the Hawk will cost at least $5-6 million more), it is the Hawk that will finally be okayed by the government.

The decision stems from the enormous problems the government continues to face on account of US sanctions and the issue of spares.

The Czech training aircraft is being backed by the American aviation giant Boeing, which has brought 35 per cent stake in Aero Vodochody.

The L 159 B has American avionics and powerplant (engine).


Powered by



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor




People Who Read This Also Read


'China's N-policy causes concern'

Indians in Canada celebrate R-Day

Hindustan to Modistan? No way!







HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.