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Induction of Apache hits supply chain wall

ByRahul Singh
Sep 12, 2024 06:11 AM IST

The first helicopter is expected to be delivered only next year, almost a year behind the original delivery schedule

Jodhpur Six months after the Indian Army raised its first squadron of US-made AH-64E Apache attack helicopters at Jodhpur to strengthen its posture against Pakistan, not a single Apache has been inducted into service as the manufacturer Boeing grapples with lingering supply chain hurdles that have slowed down production, senior officials aware of the development said on Wednesday.

The first helicopter is expected to be delivered only next year, almost a year behind the original delivery schedule (HT PHOTO)
The first helicopter is expected to be delivered only next year, almost a year behind the original delivery schedule (HT PHOTO)

Another hurdle to the Apache project related to India’s low ranking in a US government programme that prioritised foreign customers. This issue, however, has been resolved after months-long discussions between the two sides.

Still, the first helicopter is expected to be delivered only next year, almost a year behind the original delivery schedule, the officials said.

The 451 Army Aviation squadron was raised at Nagtalao near Jodhpur on March 15, anticipating that US aerospace giant Boeing will begin delivering the choppers weeks thereafter, but it has now emerged that supply chain bottlenecks in the aerospace industry have held up the deliveries, said one of the officials cited above, who asked not to be named.

The helicopter base is fully ready to operate the Apaches. In 2020, the army ordered six Apache attack helicopters from the US for more than 4,100 crore.

“The first helicopter is unlikely to be delivered before next year as Boeing has conveyed to us that it is facing supply chain problems. Also, earlier there were some issues related to India’s rating being low on the US Defense Priorities and Allocations Systems Program (DPAS), but that was resolved in April-May 2024,” said a second official, who also asked not to be named.

Issues related to DPAS, which covers 22 critical components fitted on the Apaches, including engines, gearboxes and weapons, were resolved after six months of discussions but supply chain issues linger, HT has learnt.

The US uses DPAS to prioritise defence-related contracts throughout the US supply chain to support military, homeland security, critical infrastructure and other requirements. It is also used to provide military or critical infrastructure assistance to foreign countries.

Boeing’s technical assistance field teams are in Nagtalao to lay the groundwork for the induction, including training air, ground and maintenance crews.

Asked to comment on the Apache induction, a Boeing spokesperson said the firm “continues to work closely with the customer (Indian Army) in this regard”.

Armed with fire-and-forget Hellfire missiles, the Apache can track up to 128 targets a minute and prioritise threats. The missiles equip the gunships with heavy anti-armour capabilities.

“The Apaches will add teeth to strike formations along the western border with Pakistan as well as augment capabilities along the northern border with China as they will come with a full complement of weapons, including missiles, rockets and guns,” said Lieutenant General AK Suri (retd), who headed the Army Aviation Corps until July 31.

Apart from the Apaches, another crucial project that has been hit by supply chain bottlenecks is the delivery of F404 engines to Hindustan Aeronautics Limited (HAL) by US firm GE Aerospace for the ongoing light combat aircraft (LCA Mk-1A) programme. The delivery of the engines is delayed by around 10 months.

Boeing started the production of Apaches for the army at its Mesa facility in Arizona in August 2023, targeting deliveries the following year. This was after the joint venture Tata Boeing Aerospace Limited (TBAL) delivered the army’s first Apache fuselage from its facility in Hyderabad.

The Indian Air Force operates a fleet of 22 such helicopters. India placed orders worth $ 3.1 billion for 22 Apache helicopters and 15 Chinook heavy-lift choppers for IAF in 2015. IAF has inducted all the Boeing-made helicopters, and both platforms have operated extensively in Ladakh amid the ongoing military standoff with China along the contested Line of Actual Control (LAC).

The Army Aviation Corps is modernising its capabilities with attack helicopters, light combat helicopters (LCH), light utility helicopters (LUH) and unmanned aerial vehicles.

In June, the defence ministry issued a tender to HAL for the proposed acquisition of 156 LCHs to sharpen the capabilities of the army and the air force. The new helicopters, 90 for the army and 66 for IAF, are estimated to cost 50,000 crore.

The army will also start phasing out its ageing Cheetah and Chetak helicopters in around three years, with the entire fleet set to be replaced with new locally made utility choppers over the next eight to 10 years.

It will induct in the next three to four years the MQ-9B remotely piloted aircraft systems to be imported from the US. The acquisition of these drones, in a government-to-government deal, will significantly boost the Indian military’s strength as the versatile platform has the capability to strike targets with its on-board weapons, it can carry out intelligence, surveillance and reconnaissance; and its other roles include electronic warfare, defensive counter air and airborne early warning.

India is pursuing a deal worth almost $3.1 billion to buy 31 such drones -- 15 for the navy, and eight each for the army and IAF.

To be sure, in August, India and the US signed an agreement to ensure the mutual supply of defence goods and services to enable the acquisition of the industrial resources they need from one another to resolve unanticipated supply chain disruptions and meet national security needs.

The Security of Supply Arrangement (SOSA) will allow India and the US to request priority delivery of the goods and services from defence firms in both countries for executing contracts and subcontracts.

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