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Centre cancels contract for midair refuellers for fighter aircraft
Josy Joseph / DNA
Wednesday, January 6, 2010 0:26 IST
In a development that could severely hamper the Indian Air Force’s (IAF’s) ability, the government has cancelled a $1.5-billion contract for midair refuellers for fighter aircraft. Midair refuellers extend the reach and endurance of the aircraft.
Defence ministry sources said the contract was cancelled after the finance ministry raised several objections to the acquisition. The ministry’s objections, sources in the military said, were due to a lingering L1 (lowest item in a contract) syndrome in the government.
The air force pleaded hard with AK Antony to not cancel the contract after a few years of trial and evaluations, but the defence minister decided not to oppose the finance ministry.
The finance ministry had also objected to the acquisition of the costlier Airbus 330 multi-role tanker transport aircraft six years after the air force bought the Russia-made Ilyushin-78.