India has suspended contract payments to Russia's Rosoboronexport state armaments agency for modified Ilyushin Il-38SD maritime patrol aircraft following a dispute over the performance of the aircraft's Sea Dragon targeting and tracking system.
The suspension follows a report by an Indian government spending watchdog in May 2007 that criticised the Indian navy for "unrealistic assumptions" about the refurbishment programme, including development of indigenous avionics systems, and delays by the Russian contractors.
The 2001 contract, worth $150 million, was for five aircraft. Two have been delivered to India - without essential avionics and weapons, according to the Indian government report - the third and fourth are complete and the fifth is due for completion during September. The first two aircraft were delivered 25 months late and 16 months late, according to the government's report.
The report also blamed delays in finalisation of contracts for the supply of avionics and weapons systems and delays in customer-supplied equipment, according to The Times of India.
Deficiencies in the performance of the Sea Dragon system came to light during operational trials against a submarine in the Barents Sea, according to a 7 September report in the Russian daily Kommersant.
Ilyushin Aviation's Viktor Livanov has blamed India for some of the problems with the deal by insisting on "unjustified technical requirements".
"We find nothing wrong with the Sea Dragon targeting system. But the Indian military won't take delivery of the aircraft, suggesting additional tests and putting forward ever more requirements for the technical characteristics of the aircraft not stipulated in the contract," he said. "All of the Sea Dragon's functions were proven during live tests but the Indian side continues to insist on further improvements. But that cannot continue indefinitely," Livanov added.
One Russian source quoted in Kommersant said that India was, meanwhile, also considering fitting its Il-38s with the newly developed air-launched variant of the Indian/Russian Brahmos supersonic cruise missile.
Problems with the Sea Dragon contract could well have implications for another Indian navy tender for eight long-range maritime patrol aircraft, in which Russia is again offering the Il-38. Moscow faces competition in the requirement from designs including the Lockheed Martin P-3C Orion and Boeing's P-8A multi-mission maritime aircraft, now in development for the US Navy.
Source: Flight International
