India on Tuesday floated its biggest ever global defence tender for purchase of 126 Multi-role Combat aircraft, in a deal which would run up to Rs 42,000 crores.
NEW DELHI: India on Tuesday floated its biggest ever global defence tender for purchase of 126 Multi-role Combat aircraft, in a deal which would run up to a staggering Rs 42,000 crores( approx $10 billion).
An official announcement said the Request For Proposals (RFP) for the fighters had been issued to six main bidders, ending a eight-year suspense over the acquisition. The strength of IAF fighters during this year had plunged to an all time low of 32 squadrons (576 aircraft).
Under the proposal, 18 fighters would be bought off the shelf and remaining 108 manufactured under technology transfer in India. The RFP also stipulates an option of India purchasing another 64 fighters under the same terms and conditions.
The Defence Ministry expects the first batch of 18, which would be supplied in a flyaway condition to be inducted in IAF by 2012.
The chosen manufacturer would have to spend 50 percent as direct offsets on the aircraft or defence manufacturing industry in India, the announcement said.
"As the tender is huge, 50 per cent direct offsets has been mandated, preferably in the aircraft project itself", top defence ministry sources said.
Former Defence Secretary Shekar Dutt had gone on record as saying that the offsets could flow to other defence projects, if the country needed them.
The six bidders as listed by the Defence Ministry are American Aviation giants Lockheed Martin in contention with their F-16 Fighting Falcons, Boeing with twin engined F-18/A Super Hornets,French Dassault with Rafale fighters, Swedish SAAB's Gripen JAS-3, Eurofighter Typhoon and Russian Aircraft Corporation's just unveiled Mig-35.
Asserting that the selection process would be 'transparent and fair', the Defence Ministry said the new fighters were expected to have a lifeline of over 40 years or an actual flying time of 6,000 hours, whichever is earlier.
For the first time under the new fighter RFP, the Government has incorporated the Life cycle cost calculation. The tender also stipulates guaranteed serviceability and adequate supply of spares throughout the lifetime of the aircraft.
The costs of the aircraft would include direct acquisition including that of weapons and missiles, warranty for first two years, licence royalty for manufacture in India, cost of technology transfer and costs of initial training.
While the Defence ministry did not disclose the Air Staff Requirements as laid down by the IAF, sources said Air Force parameters broadly included that the fighters should be able to execute all missions from air defence to ground and maritime attack as well as reconnaissance.
Mid-air refueling is a must for the new aircraft.
The six vendors will be given six months from Tuesday to respond to the RFP, and after an evaluation of the technical documents, field trials of the aircraft and their systems would be undertaken to match the claim of manufacturers.
These will be followed by weapons tests in the country of respective manufacturers. The vendors will submit two documents, technical bids and commercial bids.
The commercial bids would only be opened after all trials and evaluation has been completed.
After price negotiations are gone through the contract will be put up for approval of the Defence Minister who will then send it to Cabinet Committee on Security for a final nod.
The RFP gives the aircraft manufacturers to choose their partners either from Public Sector undertakings or Private players. But Hindustan Aeronautics limited, the country's sole established aircraft manufacturer would be the lead integrator.
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