New Delhi: India on Tuesday floated its biggest-ever defence deal for the purchase of 126 multi-role combat aircraft, estimated to cost a staggering Rs 42,000 crores.
The Defence Ministry announcement said the Request for Proposals (RFP) for the procurement of 126 Medium Multi-Role Combat Aircraft (MMRCA) was issued to six vendors — Russia’s MIG-35(RAC MiG); Swedish JAS-39 (Gripen);Dassault Rafale (France); American F-16 Falcon (Lockheed Martin); Boeing’s F/A-18 Super Hornet and Eurofighter Typhoon (Made by a consortium of British, German, Spanish and Italian firms).
This ended an 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).
The 211-page document deals with various issues relating to initial purchase, transfer of technology, licensed production and life-time maintenance support for the aircraft.
The RFP contains the selection model that would involve an exhaustive evaluation process as detailed in the Defence Procurement Procedures (DPP) – 2006.
Under the terms of purchase, the first 18 aircraft will come in a 'fly away’ condition while the remaining 108 will be manufactured under Transfer of Technology. The vendor finally selected would also be required to undertake 50 per cent offset obligations in India.
The RFP also stipulates an option of India purchasing another 64 fighters under the same terms and conditions.
The ToT and offset contracts would provide a great technological and economic boost to the indigenous defence industries, which would include Defence Public Sector Undertakings, Raksha Udyog Ratnas and other eligible private sector industries.
Foreign vendors would be provided great flexibility in effecting tie up with Indian partners for this purpose.
According to the government announcement, the proposals from the likely contenders would first be technically evaluated by a professional team to check for compliance with IAF's operational requirements and other RFP conditions. Extensive field trials would be carried out to evaluate the performance.
Finally, the commercial proposal of the vendors, short-listed after technical and field evaluations, would be examined and compared. The aircraft are likely to be in service for over 40 years.
"Great care has been taken to ensure that only determinable factors, which do not lend themselves to any subjectivity, are included in the commercial selection model," the announcement said. It also claimed that the selection would be transparent and fair.
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