The procurement of 12 amphibious Aircraft from Shinmaywa of Japan which has been held up due to bureaucratic procedures in India could face further headwinds following the release of new defence procurement procedures(DPP).
The procurement proposal had gone up to the Defence Acquisition Council (DAC), India's supreme defence purchase body chaired by the defence minister, which delayed an expected go-ahead to the deal last year for reasons not disclosed.
Sources told defenseworld.net that the original deal had been negotiated under the aegis of a joint working group (JWG) consisting of the Indian and Japanese governments. However, sources assume that the reason why the procurement has been delayed could be because the Defence Procurement Procedure (DPP) does not have a provision for procurement initiated by a joint working group.
Sources said that the Acceptance of Necessity (AON), a crucial first step in the procurement process had not been initiated by the Indian Navy while floating the request for information in 2011. This could perhaps be the missing link in the bureaucratic chain needed to complete the deal. The Shinmaywa Us-2 aircraft had been selected after a competitive process which involved the Russian Beriev Amphibious aircraft as well.
The sources said that following the purchase proposal's return from the DAC, the Indian Navy had started a fresh process under an organization known as the Services Capital Acquisition Requirement Categorization Board. However, this procedure too had been in conformity with the new DPP released earlier this week.
Shinmaywa sources when contacted by defenseworld.net said, "we are studying the new DDP and how it impacts the US-2 aircraft procurement. We will cooperate with the Indian MoD to bring our proposal in line with the new DPP."
The Indian Navy had sought amphibious aircraft to supply troops and equipment besides conducting search and rescue operations in the seas surrounding the Indian mainland. Currently the navy is dependent upon ships or aircraft that fly into the Andaman and Nicobar or Lakshadweep islands.
Japan has no immediate plans for ‘selling or delivering the US-2 amphibious aircraft to India, a senior diplomat was quoted as saying by the Hindu news daily Friday. “There is no decision about its delivery nor did the Foreign Secretaries discuss the timing of the delivery”, Yasuhisa Kawamura, Director General of Press and Public Diplomacy of Japan was quoted by the
Japan's ShinMaywa Industries has offered to set up a plant in India for US-2 amphibious aircraft to cater to international demands, according to PTI report. The move comes as the Indian Navy plans to procure six such aircraft, under a government to government deal, between 2017 and 2022
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The Indian Navy is considering a $1.65 billion proposal to acquire 12 US-2i aircraft from Japanese company ShinMaywa in 2015, under the ‘Buy and Make (global) category of the Defence Procurement Procedure 2013
Japanese aircraft maker ShinMaywa is hoping to supply the US-2 amphibious short take-off and landing (STOL) aircraft to the Indian Navy which is currently looking to induct new naval aircraft. In 2011, ShinMaywa was granted permission by Japanese government to respond to a global request for information (RFI) by the Indian Navy In an interview with Defenseworld
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Japan's ShinMaywa is looking at manufacture of parts and their assembly besides part -manufacture of the full flight simulator of its US-2i amphibious aircraft in India of which the Indian Navy wants to buy 12 units for $1.5 billion-$1
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Indian Navy will acquire 12 Japanese Shinmaywas long-range amphibious aircraft US-2i for an approximate $1.65 billion under the government-to-government deal
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