India defers bidding in $12bn fighter jet contract

[Neo]

India defers bidding in $12bn fighter jet contract​

* Two-month extension given after some bidders sought more time​

NEW DELHI: India has extended a deadline for global military aviation giants to bid to sell 126 fighter jets worth as much as 12 billion dollars, the government said Thursday.

The announcement of the two-month extension comes after reports that one or more bidders had sought additional time. The deadline had been set for March 3. India floated the global tender for the fighter jets last August and said six contenders were on a short list. A defence ministry spokesman confirmed to AFP that some of the contenders had at the last minute sought more time to finalise their offers.

“We want to ensure that there is maximum competition till the last stage and also some vendors had expressed the view in various fora that they should be given more time to tie up with Indian industry for collaborative efforts,” spokesman Sitanshu Kar said. “Also, our objective is to get the best equipment and platforms at the best price and so we want (that) the competition should remain wide,” Kar added. India had reportedly turned down a request for such an extension by one of the Western firms during a four-day arms fair in New Delhi that ended February 19.

Seattle-based Boeing, one of the front-runners, said it was ready with its bid for the contract, which stipulates that 18 jets will be bought in fly-away condition by 2012 and the rest assembled in India. “Our proposal to offer Super Hornets to India is complete,” Boeing Integrated Defence Systems spokesman Chris Chadwick said in a statement to AFP. “We are ready with a fully compliant proposal and will submit it three days early.” US-based aerospace firm Lockheed Martin, which is offering its F-16s to the Indian airforce, said last week it could meet the deadline.

“We have sought no extension and plan to meet the deadline,” company vice president Orville Prins recently told reporters in New Delhi. Russian manufacturers were not immediately available for comment and a spokesman from EADS, the European consortium selling Typhoon Eurofighter jets, said it would issue a statement later Thursday. Industry sources said at least two rivals called for the extra time in a bid to bypass a military import policy, which has been labelled “restrictive” by international arms firms.

The policy stipulates foreign firms selling products to India must re-invest up to 50 percent of the total amount to build manufacturing capacity in the country. afp

Daily Times - Leading News Resource of Pakistan

 

[fatman17]

EADS and RSK russia were the one's who asked for the extension - look for both to sweeten the pot for the Typhoon and the MiG-35 respectively.

 

[con]

EADS and RSK russia were the one's who asked for the extension - look for both to sweeten the pot for the Typhoon and the MiG-35 respectively.

Yup that's right.
The Europeans were more desperate for a extension.

 

[su-47]

The typhoon is not selling well abroad. only Saudi has made a major purchase and that is shrouded in controversy. the europeans are desperate to sell the typhoon.

but i think the typhoon has probably the least chance to be accepted after the gripen

 

[Energon]

If a European model is to be selected, it will be the Rafale. The only thing EADS really has to offer is the co-development of the AESA radar.

 

[Awesome]

By now a decision should have been made already.

Announcing an extension on 3rd march itself shows no decision has been made. This deal has been what, 5 years in the making?

 

[su-47]

yep. and i think its one of the most inefficient deals made. if LM throws F-35 intothe mix, the deal will probably get postponed even more.

 

[KENT]

Everything is depends upon political climate being prevaling in India rather then IAF decision. If IAF was left to choose MRCA, then it might have choosen Mirage-2000-5 with avionics incoroporated in Rafale even at $ 50 million a pieace.

 

[IceCold]

Everything is depends upon political climate being prevaling in India rather then IAF decision. If IAF was left to choose MRCA, then it might have choosen Mirage-2000-5 with avionics incoroporated in Rafale even at $ 50 million a pieace.

And i think IAF is pretty much upset with this political climate thing going on. I remember reading back sometime IAF chief mentioning that if the MRCA deal isnt materialized soon enough, we will loose the numerical superiority over pakistan that we have long enjoyed.

 

[KENT]

And i think IAF is pretty much upset with this political climate thing going on.

But time again this politicians have came to rescue of IAF by using their leverage to compel the bidders of MRCA to come up with much advanced system as possible like for e.g. F-16IN

I remember reading back sometime IAF chief mentioning that if the MRCA deal isnt materialized soon enough, we will loose the numerical superiority over pakistan that we have long enjoyed.

Don't worry simultenously there has been tremendous improvement in deployement of advaned SAMs like Spyder, Akash, Green pine radar etc and now incoming AAD and PAD as well as surplus MKIs, upgrades of entire fleet which would makes sure that falling numerical superiroity will be taken care of by improving quality.

 

[Energon]

And i think IAF is pretty much upset with this political climate thing going on. I remember reading back sometime IAF chief mentioning that if the MRCA deal isnt materialized soon enough, we will loose the numerical superiority over pakistan that we have long enjoyed.

The plans for this military upgradation program started in 1999, when the threat from Pakistan was high and the funds were low. Now the funds are materializing and the threat from Pakistan is a lot lower. Also, as time goes by, more and more goodies are being thrown in by the contenders which is beneficial to not only the IAF but also the local industry. True, the stark numerical superiority may suffer a bit, but the general level of threat perception is now lower and this is one of the best chances for India to finagle its way into the top tier of defense hardware procurement. The armed forces as a whole also has other internal problems, particularly the attrition of skilled officers which probably ought to be tackled first. The delays in this deal otherwise are no longer as critical as they were say 5 years ago. Also, the IAF isn't completely defenseless. With upgraded inventories of Mirage2000s, Mig29s, Jaguars and a decent complement of Su30MKIs they still have credible defensive and offensive capabilities against adversaries for the time being.

 

[su-47]

i would say IAFs capability vs PAF is at an all time high right now.

 

[fatman17]

i would say IAFs capability vs PAF is at an all time high right now.

yeah but dont get complacent!!!