Council to discuss procurement of Rafale for IAF, Pg8

Key Highlights:

• The Defence Acquisition Council (DAC) is set to discuss the procurement of Rafale fighter jets for the Indian Air Force (IAF) this week, ahead of French President Emmanuel Macron’s visit to India from February 17-19.
• The DAC, headed by Defence Minister Rajnath Singh, will likely discuss the acquisition on Thursday and could grant the Acceptance of Necessity (AoN).
• The IAF has projected a need to procure 114 aircraft, with some in fly-away condition and the rest manufactured in India with 30% indigenous content.
• The next fiscal year is projected to see a nearly 22% increase in the defence modernisation budget, with Rs 0.63 lakh crore earmarked for aircraft and aero-engines.

Detailed Insights:

• The grant of AoN is the initial step in defence procurement but doesn't guarantee a final order; the deal will be signed after approval from the Cabinet Committee on Security.
• The IAF currently operates 36 Rafales, and the Indian Navy will induct 26 Rafale M aircraft for carrier operations, making additional Rafale procurement cost-effective due to reduced logistical and training expenses.
• The procurement aims to address the gap in the IAF's fighter squadron strength, which is at 29 against a sanctioned strength of 42, bridging the capability gap until indigenous programs like LCA Mk1 A, LCA Mk 2, and AMCA mature.
• The increased capital allocation indicates plans to sign significant contracts, including for American P8Is and Rafale jets, involving advance payments of up to 10% of the contract value.

Key Concepts Involved:

• Acceptance of Necessity (AoN): The first step in India's defence procurement process, signifying the acceptance of the need for a particular weapon system or platform.
• Indigenous Content: The percentage of components or materials used in manufacturing a product that are sourced from within the country.
• Fighter Squadron: A military aviation unit consisting of a number of fighter aircraft and their aircrews, typically ranging from 12 to 24 aircraft.