Love this news! Good job.
Should India buy new A320 or used ones?
Using ex-civilian narrow-body airframes is always better for AWACS. This is because the residual life of a narrow-body as an AWACS is much longer than as a civilian aircraft.
The reason is straightforward. An airframe life is counted by number of takeoff and landings (called pressurization cycle) and not by the age of the airframe.
Each time an aircraft is pressurized during flight, its fuselage and wings are stressed. Both are made of large, plate-like parts connected with fasteners and rivets, and over time, cracks develop around the fastener holes due to metal fatigue.
Therefore, aircraft manufacturers set limit on these cycles. For instance, original A320 had limit of 60,000 pressurization cycles.
Thus, A320 is made for a 25-year design service goal based on an assumption that each cycle (flight) would be 1.25h long.
But long haul flights (A320 can fly for up to 9 hours in AWACS configuration) will result in much longer lifespan: Decades longer.
So kudos to Indian planners for finally showing some urgency and practicality. (PAF SAAB Erieye are also mounted on used S-2000 airliners)
I am not sure what to make of claims of dorsal plank fairing (like Erieye) on A320 for Indian AWACS.
In 2018, Airbus and SAAB teamed up to offer combination of A320 and Erieye to United Kingdom for its AWACS requirement. They lost to Boeing Wedgetail but preliminary work on design was done.
Therefore, the most logical and fastest way forward for IAF would be to install Indian radar in this configuration. Radome option is drag inducing and will likely require extensive testing.