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India Gives Tata Power a Contract for Airfield Modernization

by: Matthew Potter
April 12, 2011

Category: Boeing, Business Line, Companies, Contract Awards, Countries, development program, Editorial, Events, India, logistics, Military Aviation, production program, Services, Tata | RSS 2.0

In one of the largest contracts given to a company outside their traditional government supported arms producers the Indian Air Force awarded Tata Power a roughly $225 million deal to upgrade at least thirty airfields’ infrastructures. This contract continues to illustrate India’s determination to modernize and improve their military capabilities overall.

As part of this effort India has been attempting to broaden their base of suppliers through modernizing their offset and formation of subsidiary companies and partnerships to allow contracts with the large U.S. and European defense contractors. In the past India has tended to use Russian, Great Britain and domestic sources for most of their weapon systems.

Recent contracts include the one with Boeing (BA) for P-8I maritime patrol aircraft as well as the new fighter currently in source selection which has attracted a slew of major foreign interest. India is also planning on awarding new helicopter and artillery contracts in the near future.

The contract is for Tata Power to upgrade the airfields to be able to support and operate the newer, modern aircraft that will be entering India’s inventory.

The contract with Tata Power also indicates attempts to broaden their supplier base as it is one of the largest contracts awarded to a domestic commercial company. If India is able to draw these companies into bidding on defense work it increases competition and ultimately their industrial base which will allow them to build and sustain an effective, modern military.

Tata Power is India’s largest utility which primarily provides electricity but also does design, development and fabrication of electronics which has included defense work in the past through their SED division.

Photo from cryogenic666’s flickr photostream.

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