MoD nod for largest defence tender

Six years after the Air Force requested urgent replacements of its ageing MiG 21 fleet, the Defence Ministry on Friday cleared the country8217;s largest

Six years after the Air Force requested urgent replacements of its ageing MiG 21 fleet, the Defence Ministry on Friday cleared the country8217;s largest ever global defence tender to acquire 126 combat aircraft for an estimated Rs 42,000 crore. The Ministry will now issue Requests for Proposal to six aircraft manufacturers in the first week of August to initiate the acquisition process.

8220;After debating issues related to initial purchase, transfer of technology, licensed production and life-time maintenance support, the Medium Multi Role Combat Aircraft procurement has been given the final go ahead,8221; said Defence Ministry spokesperson Sitanshu Kar. Estimates are that it will take at least six more years, which will see the Air Force go down to an all time low of 29 operational squadrons, before the first of the new fighters touch down on Indian soil.

Under the terms of purchase, the first 18 aircraft will be come in a fly away condition, while the remaining 108 will be manufactured under Transfer of Technology by Hindustan Aeronautics Limited. The final contract will also give India the option of obtaining 60-70 more aircraft from the manufacturer on original terms. Kar said the fighters are likely to be in service for 40 years and vendors will be required to provide life-time support performance-based warranties.

With all major aviation companies eagerly awaiting the

10 billion contract, a confident Defence Ministry has also upped the offset clause from the standard 30 per cent. The winning bidder will now need to invest 50 per cent of the contract value as direct offsets in the Indian defence-manufacturing sector giving an impetus to defence PSUs and select private manufacturers.

MoD sources confirmed that the RPFs will be issued to the American F-16 Block 60 and F/A 18 Super Hornet, the Swedish Gripen, the French Rafale, the Russian MiG-35 and an European consortium8217;s Eurofighter Typhoon in August and companies will be given six months to respond with technical details and an offset plan.

After discussing the offset plan of the companies, the Ministry will carry out a technical evaluation of bids submitted by the manufacturers. The reports will go in for staff evaluation by the Air Headquarters and a final list of shortlisted companies will be forwarded to the MoD.

Now what?

8226; The excruciatingly detailed selection procedure is expected to take close to four years before the final contract can be signed.

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8226; Ministry sources say that delivery of the aircraft will take at least two years after signing of the final contract