Sunday, March 07, 2010

HAL Gets The Finger From BAE, $10.5-mil Hawk Mess-Up Claim Rejected

The increasing acrimony over India's troubled acquisition of the Hawk advanced jet trainer (AJT) has come to a head with BAE Systems summarily rejecting license-build partner HAL's $10.5-million claim for various slippages encountered during the early part of the ongoing licensed production programme. Following a report about the said claim in a newspaper, I asked BAE's India spokesman about the status of the claim. He replied, "This claim was rejected as we believe that the requirements of the contract had been met. In the limited number of cases where delivered items needed rework, this was done in accordance with the contractual provisions."

HAL first made the claim in June 2009. After attempting to get HAL to withdraw the claim and continue with the license build, BAE has finally officially refused to compensate HAL for various glitches in the license build contract that had cost implications for the latter. The BAE spokesperson further said, "HAL is now in an advanced stage of series production of the world's most successful advanced jet trainer that is revolutionising the training provided to the IAF's frontline fighter pilots. We believe the parties should focus on continuing this success story."

As you might imagine, HAL sees things very differently, and doesn't believe the Indian Hawk programme is a success at all. In fact, it is precisely this and other incidents that forced HAL to recommend to the government that BAE not be benefitted with a follow-on order for 57 more Hawks (40 fo the IAF and 17 for the Navy).

12 comments :

Anonymous said...

So HAL gets the finger because BAE rejected the claim? Shiv Aroor I thought it is the court that going to decide who gets the finger.

Tarun Mitra said...

Its high time that India should take up a strict posture in this issue. It should terminate Bae's license to operate in the country otherwise the country would head the same fate as it is with the Saudi Arabia, where a billion dollar corruption case was settled

Anonymous said...

i guess its time we showed the finger to BAE for giving us substandard job- the french ( scorpene and Mirage 2000 ) and the brits ( BAE hawk ) are taking our security needs and contracts apart ... they know that by paying bribes they have bought the right to blackmail us at every opportunity... The politicians have put us into this mess and thats the fact....

P.K.Chaudhuri said...

It is time to prioritise the development of the IJT-Sitara. If HAL Bangalore is too busy with TEJAS and Dhruv etc, then the responsibility of development of the Trainer Aircraft, SITARA must be assigned to HAL kanpur. HAL must produce a few IJTs and start flight testing.
The design team associated with the development of the IJT must also be transferred to HAL Kanpur. The engine for the aircraft must also be developed indigenously.
HAL must take notice that the revised DPP will enable private sector to enter the defense manufacturing. It is very important for HAL to increase annual production of aircrafts.

P.K.Chaudhuri.

Goutam said...

Unfortunately all aerospace manufacturing is confined to southern parts of the country probably citing security reasons (though every Indian city is within reach of Pak and Chinese missiles).

It is high time there should be de-centralization of aerospace production and manufacture of sub assemblies across the length and breadth of the country.

Sumanta said...

It is high time we go for HJT 36 Sitara.

Kartik said...

Goes to show how important it is to have a very very competent legal team working on these contracts within the MoD. companies like BAe are very professional and put in all kinds of clauses in the contract that reduce their liability in case they cock up on these contracts. I hope the MoD takes notice of this issue and ensures that the MRCA contract doesn't face a repeat of this. India should ensure its interests are safe-guarded in these multi-billion dollar deals.

Anonymous said...

LOL loved the title.....

joydeep ghosh said...

In the new RFI for AJTs why the BAe is a participant.

Anonymous said...

West's understanding of being right is about being in compliance with clauses and terms of agreement. That you did not have imagination to see a loophole is customer's mistake.

Intention based morality and Tacit mutual understandings during talks have no place as against ALL ENCOMPASSING CLAUSES that leave no loophole in the written agreement.

Anonymous said...

Goras are descendants of asuras. So, don't expect morality here.

India should focus on domestic R&D and stop running behind silly imports from Israel, Russia or whatever.

Anonymous said...

We never learn, now IAF will buy either Eurofighter or american F-series aircraft and then regret decision again. Wake up and smell the coffee, India.