Swedish defence major Saab, is open to local partnership as it is pitching both the single and twin engine fighter jets for the Indian Air Force (IAF) 114 Multi-role Fighter Aircraft (MRFA) contest.
The company has pitched its fighter `Gripen E’
Company officials told the media in New Delhi that the MoU that was inked with Adani Group lapsed in 2019. As reported earlier in Financial Express Online, in 2017 the two companies had signed an agreement which lapsed in 2019. It was a mutual decision by both parties not to renew the MoU. Mats Palmberg, chairman and managing director, Saab India, told media persons.
Participating in MRFA contest
According to company officials the company has offered the single-seater Gripen-E, and also the twin-seater Gripen-F (this aircraft is being jointly developed with Embraer of Brazil and Saab of Sweden) for the IAF’s 114 Multi-Role Fighter Aircraft (MRFA).
A decision to tie up with a local partner will be taken based on the categorization of the contest – Strategic Partnership or Buy Global – under the procurement procedure.
Timeline for the Gripen F
Responding to a query if it will be ready for the MRFA tender, Palmberg said that they would fit in. The development work according to company officials is progressing well.
Saab is one of the seven companies which have responded to the tender floated by IAF for an approximately US$ 15 billion deal for 114 MRFA.
Future plans
It has been reported earlier that the company has plans to set up a partnership if the Ministry of Defence allows it to hold 74 percent of manufacturing equity. This is actually allowed under the FDI rules of the Indian government in the defence sector. If Saab wins the contest it plans to build the fighters in a joint venture in which it will hold 74 percent.
114 MRFA proposals from all vendors are being evaluated by the end user IAF. The process has been going slow due to budgetary constraints. However soon it is expected to go to the Defence Acquisition Council for approval before Acceptance of Necessity (AoN) is issued.
Last year during the annual presser in October responding to questions related to the depleting fighter squadron strength, IAF Chief Air Chief Marshal VR Chaudhari had indicated that by the middle of the next decade the Mirage 2000s, MIG-29s and Jaguars would be phased out.
This means the IAF is in the midst of evaluation and seeking more commitments from the foreign Original Equipment Manufacturers (OEM) about the indigenous content and Make in India initiative of the government as far as MRFA is concerned.
The chief in the annual presser said that even after inducting the Light Combat Aircraft (LCA)-Mk1A, LCA-Mk2 and MRFA, by the middle of next decade IAF will still have 35-36 squadrons.
Carl-Gustaf M4 weapon system
The Swedish company has already announced its intentions to manufacture its famous Carl-Gustaf M4 weapon system in India. This will be through a SAAB-owned subsidiary Saab FFV India Pvt Ltd.
According to company officials the options of setting up a manufacturing facility is being evaluated and the production of this weapon system will take off in 2024.
Since 1976 the Indian Army has been using the Carl-Gustaf and has now placed an order for the latest M4 version.
AT4CS AST, which is another variant of Carl-Gustaf, has also been ordered by the Indian Army. In response to another query Mr Palmberg said that the AT4 weapon has been selected by the Indian Armed Forces. This will be used by the Indian Army and the IAF.
AT4CS, according to him, is man-portable, is a fully disposable, lightweight, and unguided weapon system.