SAAB
India raised questions over the process which he said it is about
'control verses responsibility' under the Strategic Partnership(SP)
model for the ambitious P75I program for the Indian Navy. Ola Rignell,
Chairman & Managing Director, SAAB India speaks with Manish Kumar
Jha over such issues and, especially, Gripen E that is about the new
Tactical Software and new age weapon integration.
What is your proposition for
Medium Multi Role Combat Aircraft (MMRCA) 2.0. What are fresh
ingredients for your proposal for Gripen E?
When
it comes to the proposal, there was an Request for Information (RFI)
reply submitted earlier, July last year 2018. Since then we have been
interacting with the Indian Air Force. We have submitted additional
information. The baseline offer is already discussed. There are hundred
and fourteen aircraft in accordance with the requirements from the
Indian air force and 18 of them would be from Sweden, and the remaining
96 will be produced in India, together with the Indian partner,
depending on the SP process. But within that scope, we will have the
full transfer of technology. We will handle with our Indian partner, all
the knowledge that is needed to produce the 96 aircraft. We first want
to build an ecosystem-an aeronautical ecosystem in India together with
our partner and Indian air force.
We
will give India the capability to actually produce the next generation
of air crafts by themselves. If it AMCA or LCA whatever you would like
to call them, we are ready to hand over full transfer of technology.
As
far as MMRCA 2.0 is concerned you have the mix of two types of engine-
single and twin. How would you navigate through as you won’t have 114
with one configuration? How will the number mix and match as IAF has not
decided so far yet?
As we
have seen the RFI, It does not depict if it should be single engine or
double engine. Neither does it say anything about whether there should
be a mixture of single or double engine within the 114. Our offer
consists of 114 single engine aircraft which we think, it would be ideal
for the Indian air Force. When it comes to capabilities, performance
and cost -not only their initial procurement cost but also for the
life-cycle cost, Gripen is fit for the IAF When you get aircraft for 40
to 50 years, Life-cycle cost is even more important than procurement
cost because that's why we have a big amount of money being utilized
over time.
How do you calculate the Life
Cycle Cost (LCC) and reach up to a conclusion which according to you is
substantially lower than the competitors?
We
have our track record. We have Gripen operational today in many
countries- Sweden, Czech Republic, Hungary, Thailand, South Africa and
now sooner in Brazil. So, we have a very good understanding of
life-cycle cost on the aircraft. We have also other independent people
looked into LCC and verified.
We are convinced that we have a very good offer and the life-cycle cost will give the Indian more bank to the bucks.
You
said recently that you have the best avionics and operating now among
all the competitors in the fray. What are the elements that you are
talking about? Could you define some of the elements of avionics in
concrete terms?
When you
look into the avionics of Gripen E, what we have the wide screen display
which is more less entire cockpit. You have the possibility to
customize depending on customer preferences. Also, the pilot will have
the ability to personalize the display, it is very interchangeable.
Within that display, we have integrated a new software where we have the
ability to upgrade all tactical software rapidly.
So, what we have offered to India is to update tactical software capability.
What about the radars and other weapon along the Gripen?
Of
course active electronically scanned array (AESA) radar; in weapons, we
have offered broad weapons, where the prime weapons are the meteor
missile. With MBDA SAAB is the partner for meteor missile. Meteor is a
very long-range radar missile, we have a dual data link. Some have only
one way data link. But we have dual data link. What does it mean? So
when a missile is on its way to the target we can update data to the
missile and we get data back from the missile. We
get much better accuracy. So your hit probability will go up
dramatically. So, Meteor missile will be a dramatic game-changer. Also,
it is fully integrated in Swedish air Force. And some of the Gripen’s
customers are on their way to get meteor missile soon.
Are
you already in talks with Indian Air force for such integration and
also Indian weapon system? How do you look at Brahmos which is jointly
on the Indo - Russian platform?
So
far, what we have done is that we have replied to the RFI from the IAF.
As you know the process currently, Indian air force is evaluating the
reply and we are waiting for the Acceptance of the Necessity (AoN).
Thereafter, the Expression of the Interest (EOI) which is to be sent out
to all the interested OEMs and also the potential Indian partners. So,
we have not discussed any specific platform. You can ask IAF as how they
foresee integration requirement. We can integrate any weapons that is
communicating with our computers. We have all the latest version of NATO
compatible version. We have different weapons for different countries.
In Sweden, for example, we are mostly utilizing western standard weapon.
So as long as your weapon can communicate with our avionics, we can
almost integrate anything. Of course, when you talking about missile of
enormous sizes then it is different thing. But you have to talk to the
Indian Air Force what they foresee and what they want to integrate in
114 aircraft. But we can integrate anything if it is in sync with our
avionics.
You propose to create such aerospace cluster in India. SAAB had also organized conference with the potential partners here in Delhi. Could you share in details on your collaboration with Indian partners?
What
we have done in India in the last two year, we started out inviting
potential Indian partners. I think we had about 100 different companies
attending. Conference was to perceive how are going forward. We also
went to Bangalore and we had similar conference with local partners. And
a month ago we had a road show together with our tier 1 supplier. So,
we tried to match our tier 1 supplier with Indian tier 2 and tier 3
suppliers.
We had some follow on
discussions as well. We cannot name as currently we have to sign a no-
disclosure agreements with them. During this trip, we signed up with
three companies. We are preparing our networks both including tier 1
suppler from India and international supplier. But tier 2 and 3
suppliers are mostly from India. Today, we have production going on in
India.
For example, we are doing
aero structures in Bangalore which are forthe international contracts,
producing parts for Boeing and Airbus. We have put production into India
already. it would benefit us because the quality is good and we also
deal with the aeronautical ecosystem. In the same manner, we are working
with Tech Mahindra in
Hyderabad where we are developing software and hardware for other export customers.
For the MMRCA 2.0, you
also differentiate SAAB on the price point as you said with such
offering it is worth for India. So, when compared with other
competitors, are the price substantially lowered? What is price per
unit?
We don’t know what
other OEMs have replied to the RFI. What we know is what we have been
offering to India and we know what we have offered to Brazil.
If
we go into open sources, you can compare what you have paid for a
certain amount of aircraft. For example, in case of Brazil, for 36
fighter aircraft (Gripen) they paid about $ 4.9 billion and that
includes all the weapons, design & development center.
And
currently we have 300-400 Brazilian going into training and
facilitating. They have been through how to design, develop and produce
in Brazil. We are building a complete design and development centers in
Brazil. We signed the Brazilian contract in 2014/2015. Yes we had
contenders – more or less all western OEMs were there. But we were down
selected. We delivered first Gripen to Brazil in August this tear. We
now have Brazilian pilots and engineers working side by side. So that is
what we included in our package. Come back to your question, we know
our price is quite competitive.
SAAB questioned the policy lax in the strategic partnership model for P75I. Why did you withdraw from P75I?
There were two reasons why we withdraw from P75I. One
was time schedule which was too short for us and second, what was
depicted in the EOI for the submarines, we thought there was an
imbalance between your responsibility verses amount of control. That is why we decided to withdraw.
We
are also currently participating in giving feedback on SP policy, as
there is an ongoing review. So, SP policy is now utilized for naval
Utility Helicopters (NUH) and the submarines. We are eagerly awaiting
the Acceptance of Necessity (AON) and EOI.
Over
the modified SP model? Also, SAAB claims to have only submarines - A26
running and operational submarines- based on air Independent Propulsion
(AIP). Is it true?
We will
have to wait and see what will be depicted in EOI when it is published.
And my guess is as good as yours when EIO will be published. On AIP, I
will have to correct you on that. AIP is up and running in already
operational submarines in Swedish navy but also elsewhere. There are
several navies today operating SAAB’s Stirling engine which is an AIP
engine and gives capability to submarines of going submerged for a
longtime. You can remain under water for a very long time. And yes we
claim that we are the only supplier of AIPs today as fully operational
system. Also, we have along track record of that system. We are offering
to the same system for A 26 submarines which is the next generation
submarine for the Swedish navy.
There
is a perception that you withdrew from P75I’s SP partnership because
you wanted to focus solely on fighter program in a bold way rather than
in submarines program? Or you really wanted to bring notice to key
elements under SP model as in case of P75I program?
We
participated in P75 I with the same ambition as we do in the fighter
programme. We later on decided to withdraw from submarines but that was
not the intention from the beginning as the reason mentioned earlier. We
were here to compete for the order. We are as committed for the fighter
procurement and we will be as committed to the new upcoming projects in
India. As you are aware we are competing for different missile
program. but once in a while, there are circumstances that force you to
withdraw and this was one.
Well. what I read and what I hear with
the new BJP government that they are more committed to replace and bring
new systems for the Indian Armed Force. From that perspective, I am
hopeful that decisive decision will be taken going forward. We are
waiting now for AoN and EOI.
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