SE Plant 410 CA Stance On Joint SpetsTechnoExport – India Contract Execution
The MRO Contract for India Air Force's AN-32 aircraft batches brought in SE Plant 410 CA a 60-percent net profit in 2011 – 2018. Therefore, any interference and obstacles hindering the Contract execution would inflict losses, the plant stresses.
Under the agreements reached between SE SFTE “SpetsTechnoExport” and Indian partners, the plant has resumed new contractual products shipment since late 2018. This year SE Plant 410 CA expects to successfully conclude the talks with India on modernizing 20 more AN-32 aircraft in Ukraine. The deal will allow holding down jobs and employing young specialists.
SE Plant 410 CA cooperation with the Indian customers began by signing the foreign economic contract between SE SFTE “SpetsTechnoExport” and the Ministry of Defense of India for overhauling and modernizing 105 AN-32 military transport aircraft. The Contract turned to be one of the largest export contracts in the history of Ukrainian defense and industrial complex.
The 2009 Contract provides for upgrading 40 Indian aircraft at SE Plant 410 CA, other 65 aircraft are to be modernized at IAF base repair deports after training Indian technicians and supplying the required spares and components from Ukraine.
In 2014 – 2015, the Contract performance was affected by delivery schedule overrun from Ukraine to India as the termination of Ukraine-Russia military and technical cooperation skyrocketed the prices for aircraft spares of Russian origin 7 to 10 fold. In 2017, the Ministry of Defense (MoD) of India intended to cancel the contract with Ukraine and transfer it to Russia. If it had happened, SE Plant 410 CA would have paid a USD 25 million penalty and would have lost USD 90 million profit on exporting new spares and components to India.
In December 2017, SE Plant 410 CA, SE Antonov and SE SFTE “SpetsTechnoExport” took herculean efforts to persuade the Indian customers of substituting Russian components import for AN-32 aircraft with western (foreign) analogues and to completely fulfill the contractual obligations taken.
Meanwhile, in 2018, SE Plant 410 CA had difficulties with signing supplementary agreements on contract extension and import substitution as the Indian mass media quoting Ukrainian law enforcement sources published the information about alleged contract violations by the Ukrainian side. The hardships were tackled with the support of Ukraine’s Embassy in the Republic of India.
Finally, the required supplementary agreements were signed and contract performance was restored. Currently, SE Plant 410 CA is providing regular supplies, and the contract is to be completed by the end of 2020.
In January – February 2019, the western equipment was successfully tested and will be installed on the contractual AN-32 aircraft instead of Russian-made ones.
Yet, the achieved progress was undermined by the latest unproven allegations in the mass media using alleged Ukrainian law enforcement as a source which got our Indian partners concerned again.