India invites bids for 126 fighter jets
By Iftikhar Gilani
NEW DELHI: India invited bids on Tuesday for 126 fighter jets as part of its plan to modernise its air force. One of the biggest military aircraft tenders ever issued worldwide is expected to amount to a staggering Rs 420 billion (around $10 billion).
A defence ministry release issued here stated that a request for proposals (RFP) has been sent to six vendors, including American Lockheed Martin (for the F-16 Falcon), the company which supplies similar planes to Pakistan.
The other five in contention are Russias MIG-35 (RAC MiG), the Swedish JAS-39 (Gripen), the French Dassault Rafale, Boeings F/A-18 Super Hornet and the Eurofighter Typhoon (made by a consortium of British, German, Spanish and Italian firms).
The 211-page RFP document deals with issues related to initial purchase, transfer of technology, licensed production and lifetime maintenance support for the aircraft. It also specifies that the final selection will involve an exhaustive evaluation process, as detailed in 2006 Defence Procurement Procedures.
The strength of the Indian air force fighters has plunged to an all-time low of 32 squadrons (576 aircrafts). Under the proposal, 18 fighter jets will be bought off the shelf and the remaining 108 will be manufactured in India under the transfer of technology agreement. The RFP also stipulates an option of purchasing another 64 fighter jets under the same terms and conditions.
The Defence Ministry expects the first 18 jets will be inducted into the air force by 2012. The manufacturer will have to spend 50 percent as direct offsets on the aircraft or defence manufacturing industry in India, the statement said. A Defence Ministry spokesman said a professional team would first technically evaluate the proposals for compliance with the air forces operational requirements. The process would then involve extensive technical and field evaluations, particularly as the aircraft are likely to be in service for over 40 years. The final selection would be transparent and fair, the spokesman said.
India has a history of kickbacks in military purchases. The 1987 Bofors gun scam, which led the downfall of Rajiv Gandhis government, still reverberates the political corridors.
To avoid speculations on kickbacks, Defence Minister Shri AK Antony outlined three guiding principles for this largest procurement scheme while chairing the defence acquisition council meeting on June 29, 2007. The guiding principles, priority-wise, are meeting the air forces operational requirements, ensuring a competitive, fair and transparent selection process to realise the best value for money, and providing Indian defence industries an opportunity to grow to global scales.
Reuters adds: Indias air force, made up mostly of vintage Russian MiG jets, is getting depleted and could lose its edge over rival Pakistan if old planes are not replaced fast, analysts say.
However, Indias defence deals are known to make slow progress and the first planes under the new deal may not arrive for another five years or so, they say.
Some defence analysts have said that geopolitical concerns could override technical issues, leading India to pick an American aircraft as New Delhi and Washington push their strategic ties and seal a new friendship.
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