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Selex of Italy Challenges MOD Decision on MAFI Project

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A recent legal imbroglio will adversely affect the plans of the Indian Air Force (IAF) concerning the modernisation of its airfields. The Italian firm, Selex Sistimi Intergrati SPA, has legally challenged the Indian government’s move to declare Tata Power Strategic Electronics Division [SED] as the winner in the $260 million modernization of Air Field Infrastructure (MAFI) project.

Selex Sistimi Intergrati SPA, part of the Italian major Finmeccanica, has asked the Delhi High Court to quash the decision of the Indian Defence Ministry to declare Tata Power SED as the lowest bidder. While the Italian company alleges that there were lapses in the procurement process, the Indian Defence Ministry claims that no procedural lapses occurred in the procurement process and that the bid of Tata Power SED was the lowest at $238 million as, against the $248 million which Selex which quoted.

Meanwhile, the current legal tussle will only delay the modernization of the airfields, for which the MAFI project was proposed and expected to be executed at the earliest. The modernisation of airfields is of paramount importance, as IAF has acquired new platforms like AWACS and the U.S. made C 130J. Since the new aircrafts will be advanced and equipped with modern avionics, the ground systems would have to be compatible with it. The acquisition of 126 Medium Multirole Combat Aircraft (MMRCA), which India is currently negotiating to procure, will also lose its potential and significance if the airfields are not modernised. Another area where the MAFI programme will be applied is the North-East of India, along the Indo-Chinese border, where the airfields need upgrading.

As for the MAFI project, global bids were floated in 2008 for the $260 million project, under which 30 airfields will be modernised in a time bound manner within three years from the date of contract signature. The MAFI program involves the supply and integration of equipment, numbering in thousands, and all the vendors were told that the winner will have to prove the equipment at a Model airfield along with the necessary quality certification for all supplied equipment as per the Turnkey Project Procurement Procedure under the Indian Defence Procurement Procedures (DPP 2006).

The MAFI project includes the following:-

-         Supply, testing, integration & sustenance of Instrument Landing System (ILS)
-         Distance Measuring Equipments (DME)
-         Digital VHF Omni Range (DVOR)
-         Tactical Air Navigation System (TACAN)
-         Air Traffic Management System (ATM)
-         CAT 2 Airfield Lighting system.

Besides challenging the Indian Defence Ministry regarding the discrepancies in the procurement process, Selex of Italy has alleged that the equipment offered under the MAFI program were not tested before the commercial bids were opened. However, the Defence Ministry has clarified that the Technical Evaluation Committee of the Ministry had cleared Tata Power’s equipment to be technically acceptable.

With the added obstacle of the current litigation, IAF will suffer yet another setback of not having its airfields ready to prove the combat worthiness of its modern fleet. IAF has urged the Indian government to make amends in the procurement policies so that acquisitions and upgrading projects are not disrupted.

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