This action might not be possible to undo. Are you sure you want to continue?
April 2010 I A Commentary on the Fixed & Rotary Wing Procurement, Design & Development Programs
A look at the present Aircraft procurement, design and development initiatives
Development of Capability
The IAF has evolved from its humble beginnings in October 1931, when it consisted of six officers, five pilots and four Westland Wapiti biplanes, into the fourth largest air force in the world. It has done this through a gradual process of evolution, modernization and learning from engagement in conflict. India in 2007 is a vastly different place to the India of 1963, when the MiG’s were first commissioned by the IAF. Modern India needs an air force capable of defending its borders against terrorists, countering the nuclear threat of potential aggressors and helping to fulfill its growing role as a world food donor and provider of international aid. To achieve this goal, the Indian Air Force is undergoing a frantic modernization process as it attempts to attain world recognition. This commentary provides a quick round-up of some of the major procurement and design and development programs underway.
Program: Light Combat Aircraft (LCA) “TEJAS” • • • •
Proposal finalized in 1983. Initial Development cost: US$ 124 million. Present cost (till date): US$ 2.89 billion Estimated delivery: First squadron to be delivered to the IAF by 2015
August, ’03. In all 2 technology demonstrator’s, 5 prototype vehicles (PV) and 8 pre-production aircraft were to be built. The IAF and the Navy had then projected a total requirement of 220 aircrafts.
Background: The LCA project was sanctioned to replace the ageing Mig-21 fleet of the IAF and to develop the indigenous Defence industry. Although approval for the development of the LCA was given in 1983, the actual design and development did not begin until June 1993. An entire decade was actually used to establish the Aerospace infrastructure that was almost completely non-existent till that time. ADA was nominated as the program manager, while Hal and DRDO were appointed as principal partners. Phase-1 focused on "proof of concept" and comprised the design, development and testing of two technology demonstrator aircraft (TD-1 and TD-2) and fabrication of a structural test specimen airframe. This was followed by the production of two prototype vehicles (PV-1 and PV-2), and creation of the necessary basic infrastructure and test facilities for the aircraft. Phase-2 consisted of the manufacturing of three more prototype vehicles (PV-3 as the production variant, PV-4 as the naval variant, and PV-5 as the trainer variant) and a fatigue test specimen.
Phase 1 commenced in 1990 and HAL started work on the technology demonstrators in mid1991; however, a financial crunch resulted in full-scale funding not being authorized until April 1993. The first technology demonstrator, TD-1, was rolled out on 17 November 1995 and was followed by TD-2 in 1998, but they were kept grounded for several years due to structural concerns and trouble with the development of the flight control system. In the meantime, the development of the MultiMode Radar was started by Hal and LRDE in 1997. LCA’s maiden flight was successfully completed by TD-1, on Jan 4, 2001. The first supersonic flight of the TEJAS took place in
Present situation: The TD-1, TD-2, PV-1, PV-2, LSP-1, and LSP-2 have completed 1,341 flights in total. The maximum speed reached has been 1.4 Mach. The manufacture of PV-5, which is the twin seated trainer version, has been completed. The IAF is projected to get its first squadron of LCA only by 2014-2015. At present the IAF has only given a confirmed order of 40 aircrafts. The navy has given a confirmed order of 9 aircrafts that are to be used on the indigenous aircraft carrier being built at the Cochin shipyard.
PV-4 which was to be the Naval variant has now become the second production variant. For the navy, 2 separate prototypes are planned, NP-1 (2 seater) and NP-2 (single seater). The LS-3 LCA is slated for its first test flight at the end of April, it will be fitted with an Elta MMR radar. The LCA has a maximum take-off weight of 13,500kg. Its internal fuel capacity is 3000 liters that give it a maximum range of 3000 km. Its maximum speed is 1.8 Mach and its service ceiling is 54,000 feet. The LCA is armed with 1 cannon carrying 220 rounds and 8 hard-points. The exact combination of missiles is yet to be decided. The phase wise cost break-up development of the LCA till date is: in the
Full Scale Engineering Development Phase-1, which was completed in March, 2004 – US$ 486 million Full Scale Engineering Development Phase-2, which is projected for completion in December, 2012 – US$ 550 million Continuation of Full Scale Engineering Development till December, 2018 – US$ 1.178 billion
Development of the naval version of the LCA – US$ 210 million.
In the 3rd week of April 2010, LCA-LSP-3 made the first flight. The LSP-3 is a quantum jump in terms of the equipment fit on the aircraft. It is almost the final configuration including the new air-data computers, Multi Mode Radar, (MMR) new communication and navigation equipment and radar-warning receiver. In its path towards Initial Operational Capability (IOC), a pair of LCA Tejas fighters -- Prototype Vehicle-3 (PV3) and Limited Series Production-2 (LSP-2) -- were deployed to Jamnagar for a period of five weeks for testing by the South Western Air Command (SWAC). The trials entailed flight envelope expansion in various stores configurations, as well as air-to-ground weapon delivery trials in different modes of weapon delivery. A Tejas Mark-2 is currently under development due to the inability of the Mark-1 to meet the IAF’s requirements and the Navy’s requirements for operations from an aircraft carrier. The IAF is still considering an order of up to 125 aircraft when a re-designed Mark 2 is developed. The Mark 2 will have a more powerful engine, be heavier by 200kgs, have refined aerodynamics and other vital, yet undecided parts to be replaced to reduce obsolescence. The Indian Navy’s Mark 2 version of the Tejas will be capable of much shorter take off and landing distance from an aircraft carrier. A new engine in collaboration with Snecma is also under development for the Mark-2 LCA.
Estimated Delivery: 2015 for Russian version (PAK-FA) and 2017 for Indian version (FGFA).
Detail: Although an Inter-Governmental agreement was signed between Russia and India in 2007, it took more than 24 months after that to freeze the design and other contractual parameters. Eventually, the commercial agreement was only verbally mentioned during Vladimir Putin’s visit to India in 2010. The designated parties were ROSSTECHNOLOGY and HAL. According to the proposed agreement a total of 500 aircraft will be manufactured. Whereas Russia will take the delivery of 200 Single seater and 50 Twin seater aircrafts, India will take the delivery of 200 Twin seater and 50 Single seater aircraft.
Sukhoi Design bureau has already designed 3 prototypes and the first test flight took place on January 29, 2010. The flight trials are to be completed by 2012. The aircraft is of the 30 tone category. It will be powered by the Saturn AL-41F, which provides 17.5 tons of thrust with after-burner. This enables the aircraft to have a SUPER-CRUISE at 1.5 Mach. The FGFA will be the first nonamerican aircraft that will truly belong to the 5th generation and also to have Super Cruise. The Radar Cross section of the FGFA is only 0.5sqm, whereas for the Su30MKI, it is 20sqm. The FGFA will be armed with Indian missiles such as the ASTRA. The final load is yet to be determined. The FGFA is supposed to have a maximum range in excess of 5000km with in flight refueling. HAL will contribute 25% towards the design and development of the FGFA. The fuselage will be 25% Titanium and 20% composites. India will contribute its expertise in aircraft composites, developed while designing the LCA. Hal’s work share will also include the Mission computer, navigation systems, cockpit displays, counter measure dispensing systems and other critical software’s.
Program: FGFA (Fifth Generation Fighter Aircraft) • • •
First designed by SUKHOI DESIGN BUREAU in 2000 Development cost: Estimated at approximately US$ 8-10 billion. Unit price: US$ 100 million
Program: BASIC TRAINER AIRCRAFT Development / Commercial of the Shelf Purchase (COTS) purchase • • •
HTT-40 designed by HAL RFI floated in October 2009. RFP floated for 75 units in Jan 2010.
A pre-bidders conference was also held on February 2nd, 2010. The RFP states that the manufacturer will have to deliver the first 12 aircraft within 24 months of the contract. The chosen trainer will remain in the IAF inventory for at least 30 years and the aircraft should have been recently certified. The responses to the RFP were submitted on March 17th 2010.
Background: The HAL built Hindustan Piston Trainer-32 (HPT-32) has been in use since 1984. The HPT-32 has experienced 90 incidents of the engine switching off in mid-air, leading to 19 deaths and the loss of 17 aircrafts. On July 31st 2009, in one such incident, 2 senior instructors had a fatal crash. A court of enquiry, found that the engine had run dry and as a consequence the entire fleet of HPT-32’s was grounded. The main reason behind the HPT-32’s engine suddenly going dry is the fact that the aircraft looses fuel supply if it does an inverted dive that is greater than 2G in magnitude. The IAF has now issued a RFP for Ballistic Parachutes, so that the HPT-32 will harmlessly float back to the ground in the event of an engine failure. However at present, due to the grounding of the fleet, it has lead to a situation where the IAF is left without a basic trainer. Present Situation: In January 2009, HAL offered to the IAF the Hindustan Turbo Trainer40 (HTT-40). It said that it could deliver the basic trainer within 6 years. However the IAF was not quite sure and also it could not afford to wait for a basic trainer for 6 years.
The IAF issued a RFP in January 2010 for 75 basic trainer aircrafts. Companies in contention and their respective models are:
Program: INTERMEDIATE JET TRAINER (IJT) HJT-36, “SITARA” • • •
Development started in 1999 by HAL. Initial Budget: US$ 40 million Initial Delivery: 2006
Background: At present the IAF uses the Hindustan Jet Trainer (HJT-16) KIRAN for the stage-2 training. Induction of the Kiran fleet began in 1968. The aircraft have already clocked 6000 hours and are almost nearing the end of their life. There have also been 13 fatal crashes over the last 10 years. The IAF had ordered 250 aircraft and its fleet strength has had a steady decline at the rate of 2 to 3 aircraft every year. Present Situation: The speed of development of the HJT-36 was very impressive in the initial stages; from metal cutting to the first flight it took a span of only 20 months. However after that there were several delays due to the Russian NPO-SATURN AL-551 engine. After receiving the engine from Russia, it was fitted on the first prototype PT1 and sent back to Russia for flight trials and certifications. This process was delayed in Russia and also the integration of the engine with other aircraft systems took longer than anticipated. So the prototypes were now powered by the French SNECMA LARZAC 04H20.
The first flight with the NPO SATURN Al-551 took place on May 09, 2010 in Bangalore. The flight lasted 30 min and consisted of only basic maneuvers. The Initial Operational Clearance is slated for June 2010 and HAL already has a
o o o o o o o
Raytheon- T-6 Texan Finmeccanica- M-311 Pilatus- PC-7 or PC-9 Grob- G-120TP Korea Aerospace- KT-1 Embraer- Tucano EADS PZL (PZL-130-TC-11 orik)
confirmed order of 12 limited series aircrafts. The total order is expected to be in the region of 225 aircrafts.
Program: LIGHT COMBAT HELICOPTER (LCH) • • •
HAL given sanction in October 2006. Initial Budget: US$ 24 million for building 2 prototypes. Initial delivery: 2010
Program: ADVANCE JET TRAINER (AJT) •
RFI issued in April 2009 for 57 aircrafts.
Background: After negotiating for over two decades, India in 2004, signed a US$ 1.6 billion contract for 66 HAWK AJT’s with BAE. The IAF received 24 aircraft in fly-away condition; the remaining 42 were to be assembled by HAL. Till the end of 2009, HAL had managed to deliver only 5 aircrafts as against the stipulated 25. The contract signed with BAE had an option for 40 more aircrafts, however the IAF is not satisfied with the service level being offered by BAE and hence it is not exercising this option. Present Situation: The IAF does not want to be in a position where it does not have a sufficient number of AJT’s. In April 2009, a RFI was issued to 6 companies for 57 aircrafts.
The contenders are:
Detail: The LCH was first unveiled in 2003. It was expected to be operational within a period of 4 years. However the operational clearance was received from the MoD only in October 2006. HAL was to provide two prototypes by late 2008 and the Initial Operational Clearance was expected by November 2010.
The LCH design was frozen in March 2008 and the first prototype TD-1 was to take flight within 1 year, followed by TD-2 which would be fitted with all the weapons and electronic sensors. By the end of 2009, the IAF was slated to conduct flight tests on TD-3. TD-1 finally took flight on March 29, 2010 at HAL’s helicopter complex in Bangalore. The LCH flew for 20min and provided a low speed, low altitude check of all systems onboard. The Initial Operational clearance is now slated for December 2011. HAL at present is trying to reduce the LCH’s weight progressively over the first three prototypes. A total of 375 kg would be reduced over the 3 technology demonstrators. However it means that the LCH could enter production 200 kg heavier than planned. HAL claims that the IAF has accepted this extra weight. The LCH is a 5.5 tone gunship with a narrow fuselage accommodating a pilot and a gunner/co-pilot in tandem configuration. It has a full glass cockpit; helmet mounted targeting systems and full day and night operational capabilities. The twin-engine helicopter is powered by SHAKTI engines that develop 1200hp each- giving it a maximum air speed of 275km/h. SHAKTI was jointly developed by HAL and TURBOMECCA of France. The armament suite comprises a combination of free flight 60/68mm rockets, MISTRAL AAM; a nose mounted NEXTER 20mm canon and
o o o o o o
Alenia- M-346 Korean Aerospace- T-50 Aero Vodochody- L-159 Yak-130 MiG-AT BAE- Hawk-136
HAL is also pushing its twin engine HJT-39 Combat Aircraft Trainer (CAT), as is DRDO and ADA with a trainer based on the LCA-TEJAS. The LCA-TEJAS derivative is very similar to South Korea’s T-50 Golden Eagle.
other missiles. It will be fitted with the SAAB aviatronics ECM suite. To support operations at high altitudes, the LCH is designed to take off fully loaded at an altitude of 10,000feet and operate its weapons up to 16,300feet.
has been fast tracked after the Mumbai attacks.
Program: MEDIUM COMBAT AIRCRAFT (MCA) • Program: MEDIUM RANGE MARITIME RECONNAISSANCE AIRCRAFT (MRMR) • • • • •
6 units for the Navy 6 units for the Coast Guard RFI issued in Jan 2009. Coast Guard expected to conduct trials in May-June 2010. Estimated price for 6 units for Coast Guard: US$ 1 billion. First announced in 2006 as a follow up to the LCA. First design shown at AERO INDIA 2009. Estimated cost: US$ 1.2 billion for development of 5 prototypes. Estimated delivery: 2020, Total estimated requirement of 250 aircrafts.
• • •
Details: The Indian Navy and Coast Guard issued a RFI for 6 MRMR aircrafts in January 2009. The expected ranges for the MRMR aircraft was about 500Nautical miles with an endurance of 6 hours.
The Indian Navy wanted its MRMR aircrafts to be fitted with an Airborne Early Warning system and these aircraft would replace the Britten-Norman Islander and the Dornier 228. The possible contenders for the Navy’s MRMR aircraft are:
Details: This aircraft would be India’s first foray in the 14-15 tonnes category; LCA is in the 1011 tonnes category and the FGFA is in the 20 tonnes plus category. The MCA is planned as the replacement aircraft for the Jaguar and the MiG-27. The project is being undertaken with the partnership of the ADA, NAL and HAL. At a later stage, other DRDO laboratories would also play a role.
The MCA is expected to be a twin seater, fifth generation fighter aircraft powered by the next generation KAVERI under co-development with SNECMA of France, having thrust vectoring and Super Cruise capabilities. The MCA is expected to incorporate an indigenous Active Scan radar and the ASTRA BVR missile. The composites for building the MCA is under development at the Pune and Hyderabad DRDO laboratories, which are pursuing maximum stealth characteristics to enable the aircraft to have a very miniscule radar cross section. The MCA has now been renamed as the NEXT GENERATION FIGHTER AIRCARFT (NGFA).
• • • • •
Modified P8i from Boeing Falcon 9000 from modified by IAI ELTA. P-99MPA from Embraer ATR-72ASW from EADS and Alenia CN-235MP from EADS-CASA. Dassault,
The Coast Guard will be conducting trials shortly. The contenders are the Russian Bereiv Be-200 and the American Bombardier Q400. The procurment of these survaillance aircraft
Program: LIGHT UTILITY HELICOPTER (LUH) Procurement- Commercial Off The Shelf Purchase (COTS) / Design & Development • • • •
Units: 197 COTS purchase & 187 Design & Developed by HAL. RFP for procurement issued in June 2008; HAL given go-ahead in Feb 2009. Estimated cost: US$ 750 million COTS purchase. Offset Clause: 50%
187 units and it was decided that either the Russians or Eurocopter would partner HAL in this project. The helicopters would supplement the 197 helicopters being bought off the shelf. However in March 2010, HAL decided to not seek any foreign collaboration. The Indigenous LUH is expected to be of the 3tonnes category and have a range of 500 km. It would be powered by a single HAL/Turbomeca SHAKTI engine and be able to carry a payload of 500 kg. The first flight is scheduled for 2015.
Details: The Indian Army and Navy want to replace their Chetak and Cheetah helicopters. An earlier RFP issued in 2006 was retracted in December 2007, when it was found out that the EUROCOPTER AS550 that was sent for trials was actually the civilian version. This previous RFP also stated that only 60 units were to be supplied in a fly-away condition with the remaining 137 units to be licensed manufactured by HAL.
The fresh RFP stated that all units are to be supplied in a fly-away condition and the offset has been enhanced to 50%. Out of the 197 helicopters, 133 are for the Army and 64 for the Navy. The RFP has been issued to:
Program: ADVANCED ATTACK HELICOPTER (AAH) • • •
Units: 22 RFP Issued in MAY 2008/May 2009. Estimated cost: US$ 550 million.
Details: Only 3 companies submitted their bids by the August 2008 deadline. These were, Eurocopter, AugustaWestland and Kamov.
Boeing had requested for an eight week extension to submit its bid, which was denied by the MoD. Bell withdrew from the participation, because its model on offer was no longer in production and was available only through the FMS route. Eventually the government retracted the RFP on March 24th, 2009 as none of the 3 bids conformed with the Staff Qualitative requirements. The IAF was of the opinion that they had not received offers from all the best available options. The IAF wants the twin-engine helicopters to have a turret gun of 20mm or higher caliber and be able to fire 70mm rockets at a range of 1.2 kilometers. Also required is the ability to
o o o o o
Augusta Westland Bell Helicopters Eurocopter Kamov Sikorsky
BELL has opted out of the competition as it has stated its inability to comply with the 50% offset clause in the RFP. The trials for the LUH were slated for August 2009; however the schedule was yet to be finalized. HAL has got approval for the design and development of an indigenous LUH in February 2009. The approval finally came for building
employ air-to-ground, fire-and-forget missiles with a range of at least seven km, fitted with state-of-the-art electronic warfare protection suite and carry a radar warning receiver capable of intercepting, identifying and prioritizing multiple airborne and ground-based radio frequency emitters. Other requirements include all-weather, all-terrain, and day-andnight operations capabilities. A fresh RFP was released in May 2009. The RFP was issued to:
o o o o o o o
AugustaWestland- AW129 Bell- AH-1Z Super Cobra Boeing- Apache AH64D Block III Eurocopter- Tiger HAD
Details: The original RFP was divided into 3 parts. 6 helicopters were required to replace the existing fleet of Mi-26 helicopters. Another 16 heavy utility helicopters were to be supplied for high-altitude aerial logistics and four of the same model will be configured for high-altitude combat search-and-rescue. This RFP was withdrawn in March 2009 and a fresh one for 15 units was issued in May 2009 when UPA-2 came into power. The responses to the RFP were submitted in October 2009. The offset proposals were submitted by January 2010, and further details are awaited.
Program: ANTI SUBMARINE HELICOPTER (ASW) •
Estimated price: US$ 600 million RFP issued in late 2005
HAL- Light Combat Helicopter Submissions were made by October 2009 and the first deliveries are expected only by end 2012. The schedule for trials is yet to be determined.
Details: The Indian Navy wanted to purchase 16 ASW helicopters as replacements for its losses to its AugustaWestland Seaking fleet.
The Navy’s requirements included a physical weight of not more than 10-12 tons; ASW and search-and-rescue capabilities; a winch; endurance of up to four hours; and an ability to host state-of-the-art electronic warfare systems. Responses were received from Eurocopter- EC725, NH Industries- NH90, Sikorsky- S-70B and Lockheed Martin- MH-60R. After receiving the responses, the NAVY was to hold trials in late 2006, but no schedule was determined. In April 2007, it seemed that now the Navy had a change of plans and a fresh RFP was on its way. More details are awaited.
Program: HEAVY LIFT HELICOPTER • • •
Units: 15 RFP issued in MAY 2008/ May 2009 Contenders:
o o o o
Boeing- CH47F Chinook Sikorsky- CH-53K AugustaWestland- AW101 Mil- Mi-46
Program: MEDIUM LIFT HELICOPTER (MLH)
• • • Total Demand: 350 units Category: 10-12 tonnes Design and developed by HAL
bid, terming the EADS offering as too expensive. A fresh RFI has now been issued in January 2010. Further details are awaited.
Details: HAL has been trying to develop a MLH since 2004; however it is still stuck in the design stage. The Navy, Army and Air force have now requested the MoD to procure the helicopters from overseas. HAL did try to tie up with Eurocopter and Mil to help in the design and development, but had to retract the RFP in July 2009 as the design parameters were changed. The production would have extended for a period of 10-15 years.
Program: AMPHIBIOUS AIRCRAFT • Units: 6 • RFI issued in March 2010. Details: To keep an eye on uninhabited islands and carrying out search and rescue missions over the country's maritime zone, the IAF is planning to induct 6 amphibious aircrafts in to its fleet.
The aircrafts are planned to be used for interisland communication and rapid response duties during emergencies such as a tsunami or reaching out to people stranded on islands or ships in the sea. The IAF wants an aircraft which should have a short take-off capability with a range of at least 800 nautical miles so that they can cover a long range, they added. Canadian Bombardier and Russian Beriev are expected to receive the Request for Proposal (RFP), which is expected to be issued by the IAF soon.
Program: MEDIUM TRANSPORT (MRTT) • • • •
Estimated cost: US$ 2 billion RFI issued in January 2010. Likely contenders:
o o o
IL-78MKI EADS- Airbus A330 Boeing- KC-767
Details: The IAF operates a fleet of 6 IL-78MKI tanker aircrafts. It had wanted 6 more aircrafts and during a previous competitive bidding the IL-78 had once again emerged as the most competitive bidder in June 2009. However the IAF wanted to purchase the EADS offering based on the Airbus A330 platform. The Cabinet Committee on Security over-ruled the IAF in September 2009and scrapped the entire
Program: HEAVY LIFT AIRCRAFT • •
Unit: 10 Possible contender: GLOBEMASTER Boeing C-17
Estimated cost: US$ 2.5 billion
Details: The IAF wants to replace and augment its fleet of Russian-made AN-32 and IL-76 air lifters. The C-17 with a payload of around 75-80 tonnes can lift around 200 fully geared troops, and can be used for carrying armored vehicles, artillery guns and medium-sized helicopters from one place to another. It can take-off from a 3000ft runway and its operating range is 2450 nautical miles. The sale will take place through the FMS route.
• • •
P8I- Concluded C-130J- Concluded Mi17 V- Concluded
Details: This note has been prepared by Religare Capital Markets (“RCML”) on the basis of publicly available information, information provided by the company and promoters, neither which have been independently verified by RCML. RCML or its employees shall in no circumstances whatsoever be liable or responsible for any inaccuracies, omissions, mistakes or errors in this paper and for any economic or any other loss or damage, incurred or suffered by the reader/ user or any other person, arising (whether directly or indirectly) out of or in connection with such information. This note has been prepared without prejudice. Any and all information contained herein is based on good faith assumptions and is provided for general information purposes only. This information does not constitute an offer, promise, warranty, or guarantee of performance. This document should not be used or relied upon for any purpose other than as intended by Religare Capital Markets Limited. Opinions expressed herein are subject to change without notice. RCML undertakes no obligation to provide the recipient with access to any further information or to correct any inaccuracies or omissions which may become apparent. (Assumption: 1USD = Rs.45)
RELIGARE STRATEGIC ADVISORY is the arm of Religare addressing the segments of Aerospace; Defence; Nuclear and Homeland Security providing Advisory Services, Project Management, Investment Related services and Supply Chain Management Col. K.V. Kuber Sr. Vice President - Investment Banking M: 9650498286, E: email@example.com Rahul Gangal Sr. Vice President - Defence Advisory Services M: 9650690869, E: Rahul.firstname.lastname@example.org Ankur Gupta Sr. Manager- Defence Advisory Services M: 9560297134, E: email@example.com Corporate office: D3, District Centre Saket, New Delhi- 110017, India. T: +91(11) 3912 5000 F: +91(11) 3912 5051 / 52 www.religare.in