India May Have to Pay $2-3 Billion Extra for Domestically Produced Fighter Jets in MRFA Program

The Indian Air Force's (IAF) ambitious plan to acquire 114 advanced fighter jets under the Medium Role Fighter Aircraft (MRFA) tender is facing a significant cost hurdle. A key element of the tender is the "Make in India" initiative, requiring substantial local production of the chosen aircraft.

However, this mandate is projected to add a hefty $2.2-3.4 billion to the program's cost, effectively increasing the price of each jet by $20-30 million compared to buying them directly from the original equipment manufacturers (OEMs).

The MRFA tender has attracted proposals for six advanced fighter jets, including twin-engine contenders like the Boeing F/A-18E/F Super Hornet Block III, Eurofighter Typhoon, Russian MiG-35, and Dassault Rafale, as well as single-engine options like the Lockheed Martin F-16 Block V (F-21) and Saab Gripen-E. While each offers cutting-edge capabilities, the costs associated with establishing local production lines in India are substantial.

Several factors contribute to this cost increase. Building a dedicated assembly line in India requires significant upfront investment in facilities for component manufacturing, assembly, testing, and maintenance. Importing specialized equipment and machinery from the OEM further adds to the cost. Training local personnel to meet the stringent standards and precision required for fighter jet production involves considerable time and expense.

The initial production phase is also expected to be costly, with a slow ramp-up period as Indian facilities and personnel gain experience with new processes and technologies. The IAF likely won't see cost benefits from local production until the later stages of the program.

Adding to the cost challenge is the potential expense of technology transfer agreements. Each OEM would need to share key technologies for the IAF to maintain and operate the jets domestically, and these agreements often come with premium pricing.

These cost projections raise serious questions about the viability of the "Make in India" component of the MRFA program. While the initiative aims to boost domestic manufacturing and reduce reliance on foreign suppliers, the significant cost increase associated with local production might force the IAF and the Ministry of Defence to re-evaluate their strategy.

Despite these challenges, the IAF remains committed to the MRFA program, recognizing its importance for maintaining India's air combat capabilities. While acknowledging the higher costs associated with local production, the IAF emphasizes the long-term benefits of developing a robust domestic defence manufacturing ecosystem, which could lead to cost savings in future projects as expertise and infrastructure develop.

 

[PKPRS]

5th gen fighters would constitute a limited fleet while the bulk of the fighting force would remain 5- gen.

yes we have Super-30 and Tejas MK2 and 36–62 Rafale’s to form the bulk of fighting force.

 

[Sridhar]

What is this obsession with make in india.
the squadrons of iaf are at all time low. First fill that gap with immediate off the shore purchases. Then think about make in india.

If the jets are not manufactured in India with good amount of local content, you are literally under the mercy of a foreign vendor and it's country's foreign policy. Simple.
Remember Germany's polite refusal to supply engines for ZORAWAR TANK?

 

[Tower]

yes we have Super-30 and Tejas MK2 and 36–62 Rafale’s to form the bulk of fighting force.

Super 30 will take time as Saturn Engines are thrash and their thermal signature is equivalent to that of a moving sun, astra mk2 will take another 10 years for no good reason, LCA mk2 will take 10 years to mature once it flies for the first time. Moreover mk2 will replace all the jags, 29s and 2000s, mrfa will create a stop gap and provide us a medium platform for omni-role tasks and nuke delivery.

 

[abhinav srivastava]

As defense strategist Squrdit Sing pointed out, why would anyone want to invade a struggling shi-hole country like Pakistan? And if that’s the case, why would anyone want to invade India in its current state? Do we need that home made hardware?

Typically, for an advanced system, you would need around 300 units to break even. Until then, it might be more practical to buy airplanes ready to fly from the OEM maker.

As an example, TEDBF kind of jet will have a development cost of around 2 billion in India. It would be produced in less than 100 million USD. I calculated the cost by doubling tejas Mk1A unit cost and adding some buffer. The taxes money will flow back to govt. Maintenance and mid life upgrades will be much cheaper. It will be at least 40 million dollars saving upfront when compared to RafaleM. Thus 50 units will be enough to justify indigenous project.

 

[PKPRS]

Super 30 will take time as Saturn Engines are thrash and their thermal signature is equivalent to that of a moving sun, astra mk2 will take another 10 years for no good reason, LCA mk2 will take 10 years to mature once it flies for the first time. Moreover mk2 will replace all the jags, 29s and 2000s, mrfa will create a stop gap and provide us a medium platform for omni-role tasks and nuke delivery.

M88 is the worst slow engine compared to engines in similar MWF 4th gen fighter jets , Saturn is very powerful, moreover SU-30 is not a stealth Aircraft..

 

[Tower]

M88 is the worst slow engine compared to engines in similar MWF 4th gen fighter jets , Saturn is very powerful, moreover SU-30 is not a stealth Aircraft..

Saturns have high thermal signature at inlet due to its poor cooling tech, m88s have better cooling and much lower inlet temperatures. Also technically m88s offer a better value for money where as al31fp underperforms at high temperatures and have the lowest service life.

 

[PKPRS]

Saturns have high thermal signature at inlet due to its poor cooling tech, m88s have better cooling and much lower inlet temperatures. Also technically m88s offer a better value for money where as al31fp underperforms at high temperatures and have the lowest service life.

M88’s 50KN can’t be used in single engine application, but the engine that they are going to install in Super-30 is a stealth engine, derivative of AL-51.

 

[Tower]

M88’s 50KN can’t be used in single engine application, but the engine that they are going to install in Super-30 is a stealth engine, derivative of AL-51.

Hope the cooling tech is good in it, else itll be a moving sun for irst/eots. M88s are perfect for Rafales, upscalong them for heavier loads and powerful thrusts would open up possibilities but hey, look at us, we cant even reverse engineer a generic engine from the licensed tot engines we make.

 

[Pad UwU]

Absolutely. India should make 6th gen fighter and drop mk1A,2,AMCA,MRFA etc. If Bharat starts now by 2050 we will have a 6th gen fighter.

If we want 6gen we should accept the GCAP offer of membership as soon as possible.... IMHO 😺 we can access 6gen aircraft and it's loyal wingman drone program

 

[Anil Tiwari]

Indian defence procurement is a Rip Van Winkle story. Our decision making goes on and on. Let's hope one day we decide. I bet, we took much faster decisions when we had very few options and decided quickly on Vampires, Toofanis, Mysterior, Hunters, Gnats, MiGs etc. I even didn't come to know how quickly we purchased MiG-25, SU-7, S-22, etc.

 

[Pad UwU]

Just put it out of its misery man. 2.2-3.4 billion dollars is SO much acceleration capital for Tejas MK2 and AMCA, and more much needed Netras. Perhaps one last direct order for 2-4 squadrons if it's absolutely needed, and no more foreign jets after that. I just don't believe MRFA will happen in 114 fighter form. It's too expensive and we're too cheap lol.

If we do spend that much we should be probing if we can use it towards getting 5th gen squadrons online before probably 2040 for a full AMCA one. Even if it's a reduced 72 fighter silver bullet force for stealth strike over 114 non-stealth fighters.

In my opinion if scrap MRFA just buy more su30mki and make it a super version that is multirole bomb truck... Invest in drones, and the money that we save up to join GCAP that is interested if we accept their invitation.... Tejas aircraft is just a stop gap and it's so very late to further pursue it... Continuing Tejas development is expensive and time consuming....

GCAP group already trying us to get in with open invitation.... EU's FCAS NGF project is still passive and didn't make any call for open invitation outside EU country.... Their current new member is Belgium and just a observer status nothing to game in it much.....

elon musk already said the future in the current war is drones.... 6gen aircraft is the mothership acting like EWACS and Intelligent gathering super computer

 

[sunmeh]

The one question that I have...when are we going to learn making fighter jets..there would surely be a difference in ready made procurement ...and learn while you make
We need this learning to continue making and soon export such aircraft. There is a separate cost to learning , training, infrastructure , etc. This would give us a leadership role in the future

 

[tipoo2]

In my opinion if scrap MRFA just buy more su30mki and make it a super version that is multirole bomb truck... Invest in drones, and the money that we save up to join GCAP that is interested if we accept their invitation.... Tejas aircraft is just a stop gap and it's so very late to further pursue it... Continuing Tejas development is expensive and time consuming....

Tejas is very late but we don't want to repeat a Marut 2.0 where we're looking back in 30 years and realizing we're starting from scratch again. It's been slow but it's gotten us through a lot of the learning curve now. It shouldn't be stopped now but its future variants accelerated if anything.

 

[Muthu.Kumar]

While this may be an exaggerated and inflated number, I strongly believe that this is an investment rather than expense.

INDIA SHOULD INVEST HEAVILY IN INDIGENOUS R & D TO COME UP WITH HOMEGROWN ADVANCED TECHNOLOGY.

ENOUGH PIGGYBACKING ON WESTERN SHOULDERS SHAMELESSLY LIKE INTELLECTUALLY LAME AND HANDICAPPED.

 

[desigandu]

Because setting up that infrastructure costs money, and part of the infrastructure will be restricted to only the aircraft manufacturing, while some can be repurposed.

Regardless, that is money one has to pay at the start, hence it has been added for amortization purposes.

Bharat should follow the model similar to what we have done for C-295, provided the supplier can start delivering foreign made jets in 3 years after signing @12/year for a total of 36 jets in fly away condition, and around 5 years from contract signing start delivering Bharat made jets starting @6/year going up to 18, but starting with minimum localization of 50%, going up to 100%, eventually 100% TOT, and integration of Indian sensors and weapons, source codes for enhancement & exports…any deviations must be with heavily enforceable penalties backed by G2G guarantee…
if none plays ball scrap MRFA and only push local and live with the risks… Can & must be done…

 

[desigandu]

With the money for MRFA, one can manage maybe 200-220 Tejas Mk 2s. Nothing beyond that.

what if we scrap MRFA, push Tejas Mk2, build 72-96 more Su-30s with super sukhoi standard, and live with the risks…
Will be much cheaper, atmanirbhar but expose us to risks till 2035! what if?

 

[Yes]

Instead of clinging on to MRFA. Scrap it.. Double down on more orders of Super Sukhoi and its development. And Focus on acquiring full tech transfer of recently improved Russian engines with the money that would be expected for MRFA.

 

[Pad UwU]

Tejas is very late but we don't want to repeat a Marut 2.0 where we're looking back in 30 years and realizing we're starting from scratch again. It's been slow but it's gotten us through a lot of the learning curve now. It shouldn't be stopped now but its future variants accelerated if anything.

If we continue development of Tejas we will need to set aside more big funds and waiting for something miracle might happen.... As I concluded Elon Musk is right drones is the most important new weapon in future warfare, doesn't mean we should go all out of that path.... We still need man piloting an aircraft and that's the new role of 6gen aircraft as it's mothership... GCAP of European Italian UK and Japan wants us openarms why not take advantage of it to hasten our technological advancement

 

[Satish]

Again Delusional peoples are publishing Rafale picture as if they are ordered and made in India, each made in india Rafale F3 is going to cost minimum $300-$350Mln, GOI definitely can’t afford that much money and it doesn't make any sense or necessity to invest that kind of money on a 4th gen platform when Countries are moving to 6th snd 7th gen platforms.

India can very well afford that much money. India is now exporting lot of defence machinery to many developed and developing countries. US is the most exported nation. Had we not invested like this, it would not have been possible. That extra $3B is purely investment and not expense. In return we will have mass production capabilities including mass job generation. India needs to create jobs for 10 Cr population getting added every year.

 

[BhVSRao]

MRFA consists of 6 twin-engine fighters: MIG-35, F-18, Eurofighter, Rafale, Su-35 & F-15, and 2 single-engine fighters: F-16 & Gripen, not four as mentioned in the article. Second, I have mentioned several times that MRFA would cost up to a 20% premium compared to importing in flyaway condition. The MRFA's purpose is to buy and make locally with an ecosystem. By doing this, in the future, the IAF will gain autonomy to upgrade it independently, plus it can integrate any weapon/tech on it, whether third-party or indigenous, apart from the OEM. That's the liberty the IAF will get. Third, the IAF can borrow some tech/features from the winner of MRFA for indigenous ongoing fighter jet projects, so nothing new in this. The only thing is that it should have local private players involved in manufacturing/final assembly lines, plus a local vendor ecosystem, unlike what the IAF later faces with problems with components/spare parts, having to depend on the OEM and then cannibalizing old fighter jets.

I suggest that the first condition in the tender should be the OEM should present the viability of manufacture in India. The margins are huge in fighter jets production. Hence I feel that the OEMs will make efforts to give such offers.

 

[Capt Mahendra]

Just put it out of its misery man. 2.2-3.4 billion dollars is SO much acceleration capital for Tejas MK2 and AMCA, and more much needed Netras. Perhaps one last direct order for 2-4 squadrons if it's absolutely needed, and no more foreign jets after that. I just don't believe MRFA will happen in 114 fighter form. It's too expensive and we're too cheap lol.

If we do spend that much we should be probing if we can use it towards getting 5th gen squadrons online before probably 2040 for a full AMCA one. Even if it's a reduced 72 fighter silver bullet force for stealth strike over 114 non-stealth fighters.

I think this is a serious suggestion. Government IAF and the defence research institutions along with the IIT s should sit together and take a firm decision to enhance the capability of Kaveri engine on a war footing. In the meanwhile set up the infrastructure for commercial production simultaneously so that we catch up on the lost 30 yrs in Kaveri. Some good serious sense should prevail to get out of this procastronation and putting the Air security of the country into serious danger. As our adversary china is moving at breakneck speed on technology and May even surpass the West in terms of technology as well as production capability has already been well established by huge investment and result oriented targetted time line. And our people are still in discussion stage on the production of 4th Gen outdated aircraft.

 

[Rokuth Mk1]

The extra cost should be considered as an investment in the future of India. The knowledge, technology, and experience gained from this will be beneficial to any future projects. Hopefully, it can be used in other civilian sectors as well.

 

[Lakshmi Prasad]

We should not worry about 2/3 billion for the technology we are getting. We have already spent huge amount on indigenous development which has not yielded results.

 

[kunitesh]

It's high time IAF and GOI must take the bitter pill of paying more, start Rafale production in phases with gradual indigenization. Use this opportunity to bargain on the 5-Gen engine technology with France . This will pay off in longer run and make country self reliant in building and mass producing cutting edge fighters.