(The Financial Express) : Vendors vying to win one of the biggest defence deals of $10.4 billion for 126 medium multi-role combat aircraft (MMRCA) are yet to get any indication from the ministry of defence (MoD) for the price negotiations. “Ahead of the price negotiations, a price negotiation committee has to be set up, which is a complex process,” an industry sources told FE on condition of anonymity. “So far, neither has the committee been set up, nor the qualifying vendors been informed. Therefore, there is no possibility of the negotiations starting by the month-end.”
Last week, Air Chief Marshal PV Naik, the Indian Air Force chief, had announced that the price negotiation for the deal would begin later this month. But according to the person cited earlier, “Those who have been shortlisted have to be given enough time to get ready for the talks and even those who have failed to make the cut would get point-wise explanations from the MoD for not qualifying.”
The IAF has given the MoD its report on the technical and field trials of the six aircraft in contention: Lockheed Martin’s F-16IN, Boeing’s F/A-18 E/F, the Typhoon from the multi-nation consortium Eurofighter, France’s Dassault Rafale, the Swedish Gripen IN and Russia’s MiG-35.
An MoD Technical Oversight Committee (TOC) is currently looking at the ‘offset’ proposals, a requirement that the winning contractor source a certain amount of the value of each aircraft that India buys from Indian industry. Their proposals for transfer of technology are also being examined.
After this, the TOC will select three companies to go to the next stage of the bidding process.
The lowest bidder will be called by a contract negotiation committee to finalise the terms of the deal. After this is done, the MoD, the finance minister and finally the Cabinet committee on security will have to sign off on it.
At the recent Aero India show, the air chief said this will be done by September, but MoD officials have told FE it is likely to happen only at the end of the year or early next year....
Last week, Air Chief Marshal PV Naik, the Indian Air Force chief, had announced that the price negotiation for the deal would begin later this month. But according to the person cited earlier, “Those who have been shortlisted have to be given enough time to get ready for the talks and even those who have failed to make the cut would get point-wise explanations from the MoD for not qualifying.”
The IAF has given the MoD its report on the technical and field trials of the six aircraft in contention: Lockheed Martin’s F-16IN, Boeing’s F/A-18 E/F, the Typhoon from the multi-nation consortium Eurofighter, France’s Dassault Rafale, the Swedish Gripen IN and Russia’s MiG-35.
An MoD Technical Oversight Committee (TOC) is currently looking at the ‘offset’ proposals, a requirement that the winning contractor source a certain amount of the value of each aircraft that India buys from Indian industry. Their proposals for transfer of technology are also being examined.
After this, the TOC will select three companies to go to the next stage of the bidding process.
The lowest bidder will be called by a contract negotiation committee to finalise the terms of the deal. After this is done, the MoD, the finance minister and finally the Cabinet committee on security will have to sign off on it.
At the recent Aero India show, the air chief said this will be done by September, but MoD officials have told FE it is likely to happen only at the end of the year or early next year....
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