1-bn basic trainer deal stuck as IAF awaits nod

Two MPs,including one from Cong,write to PM on selection process

The US 1 billion deal to purchase a new fleet of basic trainer aircraft is stuck with the Air Force failing to get approval from the Cabinet Committee on Security CCS to sign the contract despite making the choice more than eight months ago.

The proposal to purchase 75 aircraft from Swiss manufacturer Pilatus was brought before the high-powered panel on January 4 but was returned after clarifications were sought during the meeting from the Air Force and defence ministry on certain aspects of the selection procedure.

Air Chief Marshal N A K Browne had earlier this month said that the contract would be cleared at the next meeting of the CCS but the panel has met twice since and the deal is yet to get clearance. Sources said the Air Force has not yet been able to reply to the clarifications that were sought by the panel.

The clarifications were sought after an official complaint was lodged by the South Korean government on the selection process of the contract,in which one of its defence companies,Korean Aerospace Industries KAI also took part. The third contender was American firm Hawker-Beechcraft.

It has been alleged in a formal complaint that when the commercial proposals were opened,the costs pertaining to transfer of technology to maintain the entire fleet were not filled by Pilatus. These costs were also not counted towards selecting the lowest bidder in May,as is the norm in most defence deals. Transfer of Technology Maintenance costs pertain to the setting up of repair depots and maintenance lines for the aircraft that would involve Hindustan Aeronautics Limited HAL.

It is learnt that at least two sitting Members of Parliament,including one from the ruling Congress,have written to Prime Minister Manmohan Singh pointing out discrepancies in the selection procedure. The other letter has been sent by a Samajwadi Party MP.

The letter by a Congress MP from Andhra is believed to have pointed out that the government would end up overspending public money on the deal as Pilatus would be in a position of advantage to negotiate any price it desires for the Maintenance Transfer of Technology from HAL.

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Efforts are now on to salvage the deal and get approvals from the CCS,given that the Air Force is in dire need of a new fleet of basic trainers. There is a sense of urgency given that the current fleet of HPT 32 basic trainers has been grounded since 2009 due to safety reasons.

As reported by this newspaper,cadets are currently being given basic training on the harsher Kiran aircraft and flying hours for rookie pilots have been cut to one-third.