The Defence Ministry today issued the Request for Proposal (RFP) for the procurement of 126 Multi-Role Combat Aircraft (MRCA) to six vendors.
New Delhi, Aug 28 : The Defence Ministry today issued the Request for Proposal (RFP) for the procurement of 126 Multi-Role Combat Aircraft (MRCA) to six vendors.
The deal, which is estimated to cost Rs. 42,000 crores, would prove crucial in replenishing the depleting Indian Air Force (IAF) fighter jet squadrons.
The six companies, which are in the fray include, two from the US-- Lockheed Martin with their F-16s Falcon fighter jets and Boeing with its F/A-18 Super Hornet. Russian with MIG-35, Swedish with Gripen, French Dassault with Rafale and European consortium with Eurofighter Typhoon aircrafts, made by a consortium of British, German, Spanish and Italian firms, are also in the contention.
The 211-page RFP 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," a Defence Ministry release stated.
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, it added.
The aircraft purchased from this deal are likely to be in service for over 40 years and the Defence Ministry has stated that '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.
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 (ToT).
The vendor finally selected would also be required to undertake 50 percent offset obligations in India.
The Ministry believes that the offset and the aircrafts manufactured through Transfer of Technology regime "would provide a great technological and economic boost to the indigenous defence industries".
The successful negotiations on offset clauses would pave the way for technical evaluations and 'exhaustive' field trials, which will be followed by IAF carrying its own evaluation and then short listing of the aircrafts will be done.
The commercial bids would then be opened, which would be studied by the Contract Negotiation Committee that would finally sent its recommendation to the Defence Minister, who would then consult it with the Union Finance Minister.
Only after Finance Minister gives green signal to the deal, Defence Minister would send it to the Cabinet Committee on Security (CCS) for the final clearance.
On June 29, Defence Minister A K Antony had outlined three guiding principles for this procurement scheme, which are -the operational requirements of IAF should be fully met. Second, the selection process should be competitive, fair and transparent, so that best value for money is realized and lastly, country's defence industries should get an opportunity to grow to global scales.
ANI