After doing little for years,things are moving in A.K. Antonys ministry of defence. First the armed forces spent the entire defence budget for fiscal 2010-11 after returning approximately Rs 5,000 crore in 2007-08,Rs 7,000 crore in 2008-09 and Rs 5,200 crore in 2009-10 unspent. Then the MoD asked for more,and the 2010-11 defence budget saw an 11.6 per cent hike with 12 per cent more for capital expenditure meant for procuring,among other things,126 medium multi-role combat aircraft (MMRCA). For the MMRCA,French Dassault Aviations Rafale and the Eurofighter consortiums Typhoon have been asked to extend their commercial bids. In the process,Boeings F/A-18 Super Hornet and Lockheed Martins F-16 IN Super Viper were rejected,along with Russias MiG-35 and Swedens Saab JAS-39 Gripen. The MMRCA contract is worth $10 billion,and the diplomatic investment made by bidding nations meant rejections could leave a sour taste.
The salient facts of the process this time round must be noted and cheered. First,it has been transparent,with rejections made on technical grounds. The two MMRCA selected performed the best in trials and were seen to be closest to the Indian Air Forces (IAF) requirements. Second,it was the IAFs technical expertise that determined which contenders stayed on,without political interference. Third,the spectre of scandal in defence procurement that has haunted the UPA government would stop arms purchase at the slightest hint of controversy. As a result,while trials and tenders were falling prey to such fears,the Indian armed forces were being undermined as an institution,blunting our conventional response capability. The IAF itself has seen a sharp decline in squadron numbers. The MMRCA bidding process so far is encouraging,and it should mark a new beginning.
Large-scale military procurement must also consider offsets and indigenisation,access to technology,long-term time and cost optimisation. However,it is dangerous to reduce,or elevate,any military procurement to a purely political decision as might have been the case if the MoD had chosen Boeing and Lockheed Martin despite the IAF thumbs down. Those who will use the equipment must have the word on what best answers their needs.

