Govt yet to decide on purchase of Japanese amphibious craft

Even as  defence minister Manohar Parrikar is heading on his first foreign trip later this month to Japan, followed by South Korea, the government has informed the Lok Sabha that no decision has been taken yet on the purchase of Japanese long-range 12 US-2i aircraft for the Navy for around $1.65 billion.

As part of India’s effort to step up its defence diplomacy, Parrikar will undertake a two-day trip starting from March 30 to Tokyo, the first foreign visit by an Indian defence minister since November 2013. Though the thrust of Parrikar’s visit will be increasing defence cooperation and pushing the government’s ‘Make in India’ initiative in Tokyo, the two sides will be discussing the ShinMaywa US-2i amphibious aircraft and will also try to iron out any issues related to its  purchase.

The defence minister’s choice of Japan for his first international visit is of strategic importance, especially as China, Japan’s neighbour, has been disturbed by increasing Indo-Japanese ties besides increasing American interest in the region.

The last Defence Acquisition Council (DAC) meeting on Feburary 28, had deferred discussions on the US-2i, even though it was on the agenda, disclosed sources. “The defence minister had sought additional information on the deal and hence, a final decision was not taken. So, the defence ministry has asked for more details from the vendor ShinMaywa Industries Limited as well as the government of Japan”

The Indian government has been keen on acquiring the ShinMaywa US-2i amphibious aircraft from Japan as part of their expanding bilateral strategic partnership, with both nations wary of China’s assertive behaviour in the Asia-Pacific region. However, there is no concept of foreign military sales in Japan, hence the DAC has to give an approval before it moves forward.

Sources have said that the deal is part of cooperation between the two countries and conforms to  Prime minister Narendra Modi’s ‘Make in India’  initiative. It is understood that critical issues including the transfer of technology, re-export to a third country, and terms of use are all agreed on by both sides. Also, the deal that has an approval of the department of industrial policy and promotion  is awaiting for a Acceptance of Necessity (AON) from the Indian Navy.

While the Army, Navy and the Coast Guard are supporting the requirement of these planes, “It will be like an AON that the Navy requires 12 US-2i as of now, and the commercial negotiations for them can begin. The Coast Guard, in turn, may require five such planes,” explained a defence ministry source.

It maybe recalled that when Modi visited Japan last September for talks with his Japanese counterpart Shinzo Abe, the two directed the JWG to “accelerate progress in the discussions and preparations for a roadmap for the development of the Indian aircraft industry through the US-2i aircraft cooperation”.

The US-2i is quite a unique aircraft, capable as it is of short take-offs from land as well as water with a range of over 4,500 km. Powered by four big turbo-props, it can land even on rough seas amid three-metre high waves.

Though the plane is mainly designed for air-sea search and rescue operations, it can also rapidly transport 30 combat-ready soldiers to “hot zones” in an emergency. “The aircraft will give a huge boost to our operational logistics in areas like the far-flung but strategically critical Andaman and Nicobar Islands. It can also land spares and equipment in close proximity to warships on the high seas,” said an official.

In South Korea, Parrikar would discuss with the South Korean shipbuilder ‘Kangnam’ about the Mine Counter Measure Vessels (MCMVs) for the Indian Navy. Last month the DAC nominated Goa Shipyard Limited (GSL) as the production agency for 12 MCMVs for the Indian Navy at a likely cost of Rs 30,000 crore.

Last November, ‘Buy and Make (Global)’ tender for eight MCMVs was scrapped following revelations of engagement of a middleman by  Kangnam, which was declared the lowest bidder. The cancelled tender of 2005 involved building two MCMVs in South Korea and the remaining six at GSL under transfer of technology.